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HomeMy WebLinkAboutA007 - Council Action Form dated March 22, 2016 ITEM # 44 DATE: 03-22-16 COUNCIL ACTION FORM SUBJECT: PUBLIC HEARING FOR DESIGNATION OF WALNUT RIDGE MIXED USE URBAN REVITALIZATION AREA AT 3505 AND 3515 LINCOLN WAY BACKGROUND: Turn Key Development, LLC and Chuck Winkleblack, property owners, are requesting the designation of 3505 and 3515 Lincoln Way as an Urban Revitalization Area. The subject site consists of two properties with a total area of 2.23 acres that are zoned Highway Oriented Commercial with the Lincoln Way Mixed Use Overlay. 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. A location map can be found in Attachment A: URA Plan. 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. On October 27t", City Council directed staff to proceed with creation of an Urban Revitalization Area for the project at the request of the property owners. The site is eligible for an Urban Revitalization Area under the statutory criteria of promoting economic development. The Council directed that the Major Site Development Plan (approved by City Council in September 2015) be established as the criteria for the revitalization area with the additional criteria requiring participation in the Crime Free Housing Programs with the Police Department. URBAN REVITALIZATION PLAN: The draft Walnut Ridge Mixed Use Urban Revitalization Plan is attached to the Council Action Form (Attachment A). The Plan includes all of the materials required under Iowa Code and includes the qualifying criteria. These criteria are found in Attachment 3 of the Urban Revitalization Plan and require substantial conformance to the Major Site Development Plan approved by Council (Attachment 4) and participation in the Ames Crime Free Housing program. The draft URA plan also identifies that it will expire on December 31, 2021. 1 ALTERNATIVES: 1. If the City Council accepts the draft Walnut Ridge Mixed Use Urban Revitalization Plan for 3505 and 3515 Lincoln Way, it can approve the first reading of an ordinance establishing the Walnut Ridge Mixed Use Urban Revitalization Area and by resolution approve the Walnut Ridge Mixed Use Urban Revitalization Plan. 2. The City Council can modify or change the draft South Lincoln Way Mixed Use Urban Revitalization Plan for 3505 and 3515 Lincoln Way and then approve the ordinance and resolution. MANAGER'S RECOMMENDED ACTION: The Urban Revitalization Plan accompanying this Council Action Form reflects the direction of the City Council from the October 27, 2015 meeting requiring substantial conformance to the Major Site Development Plan for Walnut Ridge and participation in the Ames Crime Free Housing program as the qualifying criteria for the Urban Revitalization Area. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative #1, thereby adopting the Walnut Ridge Mixed Use Urban Revitalization Plan and approving the first reading of the Tax Abatement ordinance for the properties at 3505 and 3515 Lincoln Way. 2 ATTACHMENT A: URA PLAN Nk Armes Walnut Ridge Mixed Use Urban Revitalization Plan Approved by the Ames City Council on , 2016 In accordance with Chapter 404, Code of Iowa Legal Descriptions (See Attachment 1: Location Map) 3505 Lincoln Way Parcel ID# 09-05-451-244 Legal Description: A part of Lots 1 and 2 in Walnut Ridge Subdivision First Addition to the City of Ames, Story County, Iowa, more particularly described as follows: Commencing at the Northeast Corner of said Lot 2; thence S00°17'39"E, 48.23 feet along the East line of said Lot 2 to the point of beginning; thence S00°17'39"E, 78.02 feet to a corner of said Lot 2; thence N88027'12"W, 104.06 feet to a corner of said Lot 2; thence S00026'33"E, 149.91 feet to the Southeast Corner of said Lot 2; thence N88°44'41"W, 182.72 feet along the South line thereof; thence N00°00'00"E, 221.11 feet; thence S90000'00"E, 285.14 feet to the point of beginning, containing 1.12 acres. 3515 Lincoln Way Parcel ID# 09-05-451-248 Legal Description: A part of Lots 1 and 2 in Walnut Ridge Subdivision First Addition and the East 73.74 feet of the alley in Edgewood Fifth Addition, all in the City of Ames, Story County, Iowa, more particularly described as follows: Beginning at the Southwest Corner of said Lot 1; thence N00001'39"E, 246.80 feet to the Northwest Corner thereof; thence N00°23'07"W, 23.91 feet to the North line of said alley; thence S89°23'05"E, 73.74 feet to the Northeast Corner of said alley; thence S89°25'59"E, 337.94 feet to the Northeast Corner of said Lot 2; thence S00°17'39"E, 48.23 feet along the East line thereof; thence N90000'00"W, 285.14 feet; thence S00°00'00"W, 221.11 feet to the South line of said Lot 1; thence N88044'41"W, 126.76 feet to the point of beginning, containing 1.11 acres. Owners and Addresses Property Owner Name Owner Address 3505 Lincoln Way Charles E. Winkleblack 5854 Oak Crest Circle Ames IA 50010 3515 Lincoln Way Turn Key Investments LLC 2615 Northridge Parkway Ste.#102 Ames IA 50010 3 Assessed Valuations Property Land Value Building Value Total Value 3505 Lincoln Way $425,600 $0 $425,600 3515 Lincoln Way $311,200 $0 $311,200 Zoning and Land Uses See Attachment 2: Zoning of Proposed URA Existing Proposed Property Zoning Land Use Zoning Land Use 3505 Lincoln Way HOC, Vacant Highway Commercial Commercial\Residential O-LMU with Mixed Use Mixed Use Overlay 3515 Lincoln Way HOC, Vacant Highway Commercial Commercial\Residential O-LMU with Mixed Use Mixed Use Overlay HOC= Highway Oriented Commercial O-LMU=Lincoln Way Mixed Use Overlay Proposed Expansion of Services The proposed urban revitalization area will continue to receive all services from the City of Ames. There is no proposed extension or increase in the level of service. Applicability Revitalization is applicable only to new construction and only in conformance with the approved site development plan and that the principal buildings have received building certificates of occupancy. Revitalization is available to all allowed uses on the site that meet the qualifying criteria found in Attachment 3 of this Plan. Relocation Plan There are no occupied residential structures in the proposed area. No relocations are anticipated, in the event relocation is necessary it is at the sole expense of the property owner. 4 Tax Exemption Schedule The property owner may choose one of the following options: The exemption period for ten (10) years. The amount of the partial exemption is equal to a percent of the Actual Value added by the improvements, determined as follows: For the first year 80% second 70% third 60% fourth 50% fifth 40% sixth 40% seventh 30% eighth 30% ninth 20% tenth 20% The exemption period for five (5)years. For the first year 100% second 80% third 60% fourth 40% fifth 20% The exemption period for three (3) years. All qualified real estate is eligible to receive a 100%exemption on the Actual Value added by the improvements for each of the three years. Required Increase in Valuation The project shall require an increased in assessed valuation of at least fifteen percent. Federal, State or Private Funding No federal, state, or private funding (other than the developer's financing) is anticipated for this proj ect. Duration The Urban Revitalization Area shall expire on December 31, 2021. All projects seeking tax abatement must have been completed prior to expiration. Projects already determined to be eligible for tax abatement shall continue to receive tax abatement consistent with the chosen schedule for abatement and in accordance with state law. Additional Criteria In order to be eligible for tax abatement, a project must be consistent with City ordinances and also meet the criteria in Attachment 3. 5 ATTACHMENT 1: LOCATION OF PROPOSED URBAN REVITALIZATION AREA s y x t� 17 , v� r i ,w 3515 3505 f; `F , E. Lincoln Way / ',/� Lincoln Way 'J 77 31 ! !J i i ` Location Map 3505 and 3501 Lincoln Way 6 ATTACHMENT 2: ZONING OF PROPOSED URBAN REVITALIZATION AREA STORYS7 .. _....STORY.ST RL .✓ r a.•y f f' F�e�� /fFf df a' � rl Lincoln Way Lincoln Way / HOC LINCOLNWAY..:. LINCOLN-WAY Lincoln Alav Mixed-.Ise Gaerla Residential Lo:v"Den_A;Zone"'RL"(sec 29.701) Hide may-CrienteC Cornmercial Zone"HGC"(sec k19$94t RL Zoning Map 3505 and 3501 Lincoln Allay ATTACHMENT 3: ADDITIONAL QUALIFYING CRITERIA 1. The project shall be built in substantial compliance with the Major Site Development Plan approved by City Council on September 8, 2015 and in accordance with the condition of Resolution #15-561, or as amended. 2. 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