HomeMy WebLinkAboutA045 - Council Action Form dated December 8, 2015 ITEM # 28
DATE: 12-08-15
COUNCIL ACTION FORM
SUBJECT: URBAN REVITALIZATION TAX ABATEMENT REQUEST FOR 2320
LINCOLN WAY
BACKGROUND:
In accordance with Chapter 404 of the Code of Iowa, the City Council has established
Urban Revitalization Areas (URAs) with Plans specifying standards for types and
elements of physical improvements that provide public benefits. When property within
one of these URAs is developed, redeveloped, rehabilitated, or remodeled, the property
owner is eligible for abatement of property taxes on the incremental increase in property
value after the improvements are completed. This abatement can extend for three, five
or ten years, based on the individual Urban Revitalization Plan approved by Council.
Property owners within an approved URA may apply for tax exemption for a complete
project or preapproval for project that is planned to be built. The City must determine if
the completed improvements meet the standards in the Urban Revitalization Plan
in order to grant tax abatement and forward the determination to the Assessor. If
the project complies with the criteria, it must be approved for tax abatement.
The Gilbane Development Company is seeking final approval of their mixed-use
project with the fulfillment of the fixed window requirement along Lincoln Way.
Gilbane received pre-approval on October 13th of an alternative method of meeting the
fixed windows requirement by applying and epoxy sealant to the windows. Gilbane
completed this work in November and representatives from the Police Department did a
spot check of units in the building and were satisfied they had met the fixed window
requirement. Staff had previously completed a site inspection and found the site to
substantially comply with the Campustown criteria.
The overall project consists of approximately 5,300 square feet of commercial space, 96
apartment units totaling 320 beds, and structured and surface parking. Gilbane
estimates cost of the project at $12,470,000. The estimate is based on construction cost
or sales price provided by the property owner and may not be the same as the added
property value upon which the abatement is based. The applicant indicates they will
choose the 10-year abatement option.
ALTERNATIVES:
1. The City Council can approve the request for approval of tax exemption for the
mixed use project located at 2320 Lincoln Way, if it finds that it substantially
conforms to the Campustown Urban Revitalization Area Criteria, as adopted by
the City Council.
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2. The City Council can deny the request for approval of tax exemption for the mixed
use project located at 2320 Lincoln Way, if it finds that the improvements are not
in conformance with the Campustown Urban Revitalization Area Criteria, as
adopted by the City Council. If denied, the applicant may make modifications to
the project to meet the criteria and submit a new request for tax abatement.
MANAGER'S RECOMMENDED ACTION:
Staff has completed an on-site inspection of the improvements constructed, and finds
that the work completed conforms to the Campustown Urban Revitalization Area
Criteria. With Council's final approval of the tax abatement eligibility, the site will
be exempt from any changes to the URA criteria during the life of the tax
abatement. The developer is also obligated to maintain the required improvements for
the life of the tax abatement schedule.
Therefore, it is the recommendation of the City Manager that the City Council accept
Alternative #1, thereby approving the request for tax exemption as conforming to the
Campustown Urban Revitalization Criteria. Approval of the request for tax exemption
will enable the City Assessor to process tax exemption for this property and determine
the value of the respective exemption.
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Attachment A
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Attachment B
Campustown Urban Revitalization Criteria
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