HomeMy WebLinkAboutA004 - Staff Report dated October 27, 2015 ITEM # 32
DATE: 10-27-15
Staff Report
Urban Revitalization Area Designation for 3505 and 3515 Lincoln Way
October 27, 2015
BACKGROUND:
The subject site consists of two properties with a total area of 2.23 acres that are zoned
Highway Commercial with the Lincoln Way Mixed Use Overlay (Attachment A). The site
was recently approved for development as a mixed-use project with 10,912 square feet
of commercial uses on the ground floor and 18 apartments. The property owner has
requested the City Council establish an Urban Revitalization Area (URA) for the site
(Attachment C) in order to qualify for a property tax abatement.
The history of the site includes a prior use as a mobile home park that the current
property owner removed with the intent of developing a small subdivision to the north
and commercial development on the subject area. The property owner requested
determination by City Council in June of 2008 that the site was underutilized as
described in the City's former policy for commercial tax abatement for HOC zoned
property. City Council adopted a resolution in 2008 recognizing redevelopment of
the subject site with the commercial area as meeting the underutilized threshold
of the 2008 Commercial Policy. However, no formal designation of the site as an
Urban Revitalization Area occurred or was directed by Council at that time.
The prior commercial policy had both mandatory criteria (underutilized land) and a
requirement of meeting one of two optional criteria related to either providing for an
underrepresented commercial business based on a commercial sales leakage study or
that a project complies with enhanced design requirements for greater landscaping,
shared parking, and signage limitations. In 2010, the commercial policy was changed to
the format as it exists today (See Attachment B). The current policy no longer includes
optional criteria related to enhanced design requirements and changed the mandatory
elements to be more specific than what was in the 2008 policy.
If Council has an interest in proceeding with the process of establishing the site as a
URA to provide tax abatement, Council could find the request consistent with its
commercial property policy or proceed with establishing the site as a site specific URA
independent of the City's commercial policy. Due to the site being vacant for 7 years,
the site can be found to be consistent with the mandatory criteria of the policy.
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OPTIONS:
When establishing an URA, a local government may establish qualifying criteria for a
project to be eligible to receive property tax abatement. The following are possible
options for qualifying criteria.
Option 1. Establish Specific Eligibility Criteria
Typically, the City has required certain site development standards, building elements,
and restrictions on uses for eligibility. The use of criteria varies among the different
URAs. For example, the City has required flood plain improvements for some
commercial developments or to require brick materials on the exterior of buildings.
Council has recently endorsed criteria for a nearby site that is a mix of apartments and a
mixed-use building that specify certain development and use standards. (Attachment
D).
Option 2. Adopt The Major Site Development Plan As the Eligibility Criteria
The City Council has recently approved the Major Site Development Plan (Attachment
E) for the site and this specific Plan could be included as the criteria for receiving tax
abatement. This would be similar to how the Deery Brothers tax abatement was
approved.
Option 3. Establish Specific Eligibility Criteria Based On Use
The City Council can create criteria related to the use of the site and eligibility to receive
tax abatement. The Commercial Policy lists prohibited uses of commercial areas from
receiving tax abatement. Additionally, for mixed use development Council could
state that tax abatement eligibility relates only to commercial uses within the URA
rather than residential uses and commercial uses. The property taxes for the
commercial classified uses would be the only abated taxes for the development under
this option.
Option 4. Establish the URA With No Eligibility Criteria
This option could be pursued if Council believes that meeting only one of the mandatory
criterion (vacant for seven year) of the current commercial policy is sufficient to justify
granting property tax abatement.
NEXT STEPS:
The following steps are needed to establish the Urban Revitalization Area and Plan:
■ City Council adoption of a resolution finding that economic development or
development of housing within the area is necessary.
■ City preparation of a "Plan," specifying standards and qualifying criteria.
■ City Council setting date of public hearing, with mailed notice of the Public
Hearing to owners within the area.
■ City Council enactment of an ordinance designating the area and resolution to
approve the Plan.
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If the City Council decides to accommodate the request and establish an URA,
then the selection of one of the options presented above is necessary in order for
the City staff to proceed to create the URA.
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Attachment A — Zoning and Location Map
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Residential Low Density Zone-RL"(sec 29,701)
HigMay-Odented Commercial Zone-HOC-(sec 29.804)
Go�ernrxwntl.A�port District"S-OA"(sec 29,1002)
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Attachment B — Commercial Criteria
URBAN REVITALIZATION
HIGHWAY ORIENTED COMMERCIAL (HOC)
REDEVELOPMENT CRITERIA
Properties eligible for tax abatement must be within the Highway-Oriented Commercial
zoning district, and also fit within one or more criteria.
1. Properties from which the principal building has been removed and the property has
been vacant for at least seven years.
2. Properties with a principal building that has been determined by the Building Official
as meeting the definition of "Public Nuisance" in the Ames Municipal Code, Chapter
5, "Building, Electrical, Mechanical and Plumbing Code" (Currently Section
5.401(7)).
3. Development or redevelopment of Brown Fields. Brown Fields include abandoned
or underused industrial and commercial facilities or sites available for re-use or
redevelopment. Expansion or redevelopment of such a facility or site is complicated
by environmental contaminations.
4. Properties with at least 20% of the property area being within 1,000 feet of a City of
Ames water well and within the Floodway-Fringe Overlay zoning district. The
Developer must demonstrate that the proposed project cannot be configured or
designed in a manner to avoid significant extra impact to the project because of its
location near a City well head.
Non-qualifying Uses. Notwithstanding compliance under the above categories, tax
abatement shall not be granted for properties developed for or otherwise used for the
following uses:
1. Mini-storage warehouse facilities or other industrial uses.
2. Transportation, communications, and utility uses.
3. Institutional uses.
4. Automotive, boat, and/or RV sales.
5. Adult entertainment businesses.
6. Detention facilities.
7. Agricultural or industrial equipment sales.
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AttaChOlentC — AppliCantLetter
Date: September 2' 20lS
To: Honorable Mayor and Ames City Council members
From: {huckVV|nNeb|ack
RE: 35l5- 350S Lincoln Way
You will be discussing my mixed use project at Tuesday night's meeting. VVe have been working onthis
project for almost 2 years now from nuy original request. VVe have worked hand in hand with city staff
to develop the ordinance that is being applied to this particular project from the beginning.
| have 2requests: First | would ask that|f there is not any meaningful objections to this project that you
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conso|idatethe2 and readings . The
reason for my request is that the way the calendar lays out in 2015 we will lose 3 weeks of construction
schedule time heading into winter. Your next meeting after September 22"^ is not until October 13*.
That is22 calendar days which iva long time in the construction world. |fit were not this time of year I
would not make the request, | know you don't like these requests. VVe have been talking about this
project for a long time. |fit has toOo through all three readings it will have been before the planning
and zoning commission and council Do/9times since the concepts inception. | don't believe weare
trying tV push this through without m chance for public input.
K4y second request istostart the process for urban revitalization for this site. i made the initial request
tucuumd| in]uneof3DUO. | be|ievethatthecuunci|suppurtedthe "conoept"ofurbanreuita|izationin
2QOQ although | don't have the council action form tn attach tomoyletter. Kelly(planning director)
thought that| should bring this issue up now even though we would not be seeking abatement until
2017 That was one of the worst(if not the worst) areas in town prior to me purchasing the property.
That was the reason that |asked for urban revitalization prior to purchasing the property.
I understand that you granted tax abatement to settle pending litigation by Breckenridge (my
competitor) a block to the East- | have paid taxes on this vacant commercial land for 7 years through
some very bad economic times. | worked for almost 2 years closely with staff to mold and refine the
new ordinance for mixed use projects so that they are done right,function well and look great. My
competitor(less than a block away) blew into town from Texas, fought with neighbors, staff,council and
pretty much everyone they came in contact with, They tried to manipulate our codes and ordinances in
ways that no one ever could have imagined. They initially threatened and ultimately filed a law suit �
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against the city. Those folks now have been granted tax abatement and will have a significant financial
advantage over my project ifmy project|s not granted the same abatement. That hardly seems fair
when I followed the rules,went thought a long process, worked with staff, paid my taxes and asked for
abatement before } bought this property.
This is not an agenda item tonight, Kelly thought that I should raise the issue now while the project is
working through the approval process.
Thapk you in advancefor your consideration of these two topics
CbuckVVink|eb|ack
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Attachment D
t?RA DRAFT Qualifying 0-itei•ia
1. All buildings shall use clay brick as the principal building material for 80% of the front
facades, excluding openings. The remaining facades shall incorporate clay brick or cut
stone into 50% of the facade materials.
2. Buildings used solely for residential and accessory uses shall utilize hipped or gabled
roofs. Mixed-use buildings are exempt from this standard.
3. The project shall provide additional commercial parking in excess of the retail/office
parking rate of 3.3 spaces per 1,000 square feet of gross commercial floor area. A
minimum of 20% of the commercial floor area shall provide parking at a rate of 9 spaces
per 1,000 square feet of gross commercial floor area for the first 30,000 square feet of
gross floor area.
4. A clubhouse, as defined in the Zoning Ordinance, shall not be permitted on the ground
floor of a commercial mixed use building.
5. Ground floor commercial uses of mixed use buildings must be a permitted use of the
HOC base zone for Office Uses; Retail Sales and Services Uses; Entertainment,
Restaurant, and Recreation; and miscellaneous use of childcare.
6. Typical commercial tenant footprint shall have a minimum depth of 40 feet.
7. Commercial areas shall have a floor to ceiling height of a minimum of 12 feet.
8. Primary entrances to residential buildings shall include covered entries with architectural
enhancements.
9. The residential project shall receive and maintain certification for the Iowa Crime Free
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Multi-Housing Program administered by the Ames Police Department.
10.The project shall utilize a Sign Program for commercial tenants that provide a cohesive
design and lighting style to the site. Sign Program will allow for wall signage per the Sign
Code. If a commercial ground sign is constructed, it is restricted to a single monument
sign along Lincoln Way and shall include a decorative base compatible with the
commercial buildings finishes and have an opaque sign face background. The Sign
Program must be approved by the Planning Director.
11.The project shall provide landscape buffering with the L3 and F2 standards in a
minimum of a 10-foot-wide planter along the perimeter property lines of the site.
12. The project shall provide street trees, per City specifications, along Wilmoth Avenue.
13. No balconies shall face the perimeter of the site.
7
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