HomeMy WebLinkAboutA014 - Urban Renewal Plan presented to City Council July 11, 2017 ^ T
■
Barilla
Urban enewa
Plan
Prepared by the
(' I I !CITY OF Dept. of Planning and Housing
H e S a n d
Presented to the Ames City Council
For the Public Hearing
On July 11, 2017
Table of Contents
Urban Renewal Plan .......................................................................................2
Plan Preparation and Adoption .....................................................................2
Property Description ......................................................................................3
Urban Renewal Project Description..............................................................3
Urban Renewal Plan Objectives....................................................................4
Conformance with Land Use Policy Plan .....................................................4
Conformance with Zoning and Current Use.................................................6
City's Debt Obligations..................................................................................6
Map 1 Location and Project Area..................................................................8
Map 2 Land Use Policy Plan Map..................................................................9
Appendix A: Recommendation of the Ames Planning and Zoning
Commission..................................................................................................10
Appendix B: Notice of Consultation to Affected Taxing Entities .............11
Appendix C: Affected Taxing Entities and their Representatives............12
Appendix D: Notice of public hearing published the Ames Tribune and
mailed to the Affected Taxing Entities........................................................13
1
Urban Renewal Plan
This Urban Renewal Plan for Barilla Urban Renewal Area (the Plan) was prepared
at the direction of the Ames City Council and in conformance with the Code of
Iowa Chapter 403 Urban Renewal. This Plan comprises the necessary
components as described in Chapter 403.17(24). In addition, it describes and
documents the procedures followed in bringing the Plan forward, in approving the
Plan, and in allowing the division of revenues from taxation (tax increment
financing).
This Plan designates the proposed urban renewal area as an economic
development area as defined in Chapter 403.17(10).
Plan Preparation and Adoption
PREPARATION AND COMMISSION ACTION
The City of Ames Department of Planning and Housing (the Department) prepared
this draft Plan and presented it to the Ames City Council on June 13, 2017. The
City Council directed the Department to submit the Plan to the Planning and
Zoning Commission (the Commission) for their review and to provide a
recommendation as to its conformity with the general plan of the City—the Ames
Land Use Policy Plan.
The Commission met on June 21, 2017 and heard a summary of the report and a
recommendation from the Department. The Commission then formulated their
recommendation for the City Council. The recommendation of the Commission is
found in the appendix and is that the Barilla Urban Renewal Plan is consistent with
the Ames Land Use Policy Plan.
NOTIFICATION AND CONSULTATIONS
During the preparation of this Plan, the City met the notification and consultation
requirements of Code of Iowa Chapter 403.5. Notice was provided to the affected
taxing entities as required when the urban renewal area includes an allowance for
the division of revenues from taxation (tax increment financing). Notice was
provided to the Story County Board of Supervisors, and the Ames Community
School District. The notice of a consultation and a copy of the Plan was sent by
regular mail to the taxing entities on June 14 for a consultation that was held on
June 22. The taxing entities, their addresses and their designated representatives
are listed in the appendix.
The taxing entities were notified that they have seven days following the
consultation to provide any recommendations for modifications of the Plan.
CITY COUNCIL ACTION
The Ames City Council held a public hearing on July 11, 2017 to consider the
adoption of the Plan, the resolution to establish the urban renewal area and the
ordinance to allow for tax increment financing. Notification for the public hearing
was as prescribed by Code of Iowa Chapter 403.5(3). Public notice was published
2
in the Ames Tribune on June 30, a copy of which is included in the appendix. In
addition, a copy of the notice was sent by regular mail to the affected taxing
entities.
At the public hearing, the City Manager presented a summary of the report and a
recommendation to the City Council. The City Council was also presented with the
written recommendation of the Planning and Zoning Commission.
Property Description
The proposed urban renewal area comprises two parcels. The legal descriptions
are:
3311 East Lincoln Way (10-06-400-010)
Parcel "B" being a part of the Southeast Quarter (SE '/4) and East Half (E '/2) of the
Southwest Quarter (SW 1/4), Section Six (6), Township Eighty-three (83) North,
Range Twenty-three (23) West of the 5t" P.M., City of Ames, Story County, Iowa
as described in a Plat of Survey filed in the office of the Recorder of Story County,
Iowa, on July 22, 1997, in Certificate & Field Notes Book 15, Page 18.
and
3303 East Lincoln Way (10-06-450-020)
Beginning at a point on the South Line of the Southeast Quarter (SE '/4) of Section
Six (6), Township Eighty-three (83) North, Range Twenty-three (23) West of the 5t"
P.M., Story County, Iowa, Four Hundred Seventy-seven (477) Feet East of the
South Quarter (S '/4) Corner of said Section Six (6); thence North 20 03' East Four
Hundred Fifty Five (455) Feet; thence East Three Hundred Sixty-eight (368) Feet;
thence South 20 03' West Four Hundred Fifty-five (455) Feet; thence West along
the Section line Three Hundred Sixty-eight (368) Feet to the Point of Beginning,
now in the City of Ames, Iowa, subject to easements to the State of Iowa recorded
in Book 98, Page 123 and Book 88, Page 295.
Urban Renewal Project Description
This urban renewal area is being created to facilitate the expansion of the Barilla
manufacturing facility at 3303 and 3311 East Lincoln Way. Barilla is proposing an
expansion of 71,000 square feet to house two additional processing lines, a rail
yard expansion allowing the unloading of 100-car trains in 35 hours, and six
additional silos capable of 10,000 metric tons of grain storage. The total
investment is estimated at $64 million with the taxable value estimated at
$16,320,000.
The project does not anticipate any changes to the zoning designation, any
acquisition of property by the City of Ames, or any improvements to public
infrastructure to be borne by the City of Ames.
3
Urban Renewal Plan Objectives
The City is offering a rebate of incremental property taxes for a period of 10 years
or $3 million, whichever comes first, for the creation of 41 new jobs within 3 years
and a minimum assessment agreement for the estimated taxable value
($16,320,000) of the new improvements.
Conformance with Land Use Policy Plan
The Land Use Policy Plan, adopted by the City Council in 1997 and subsequently
amended, provides guidance on the adoption of an urban renewal plan.
GOALS FOR A NEW VISION (LUPP PP. 14-23)
Goals for a New Vision of the Land Use Policy Plan describe ten goals in broad
categories, as well as a number of objectives to meet those goals. Those that
more greatly influence the development of an industrial urban renewal area are
quoted below. Some goals are not included as they bear little relationship to this
economic development issue.
Goal No. 1. Recognizing that additional population and economic growth is likely, it is
the goal of Ames to plan for and manage growth within the context of the community's
capacity and preferences. It is the further goal of the community to manage its growth so
that it is more sustainable, predictable and assures quality of life.
Objectives. In managing growth, Ames seeks the following objectives.
I.C. Ames seeks to manage a population and employment base that can be
supported by the community's capacity for growth. A population base of
61,000-73,000 and an employment base of up to 34,000 is targeted within
the City. Additionally, it is estimated that the population in the combined
City and unincorporated Planning Area could be as much as 67,000 and the
employment base could be as much as 38,000 by the year 2030.
Goal No. 2. In preparing for the target population and employment growth, it is the goal
of Ames to assure the adequate provision and availability of developable land. It is the
further goal of the community to guide the character, location, and compatibility of growth
with the area's natural resources and rural areas.
Objectives. In assuring and guiding areas for growth, Ames seeks the following
objectives.
2.A. Ames seeks to provide at least 600 to 2,500 acres of additional developable
land within the present City and Planning Area by the year 2030. Since the
potential demand exceeds the supply within the current corporate limits,
alternate sources shall be sought by the community through limited
4
intensification of existing areas while concentrating on the annexation and
development of new areas. The use of existing and new areas should be
selective rather than general.
Goal No. 9. It is the goal of Ames to promote expansion and diversification of the
economy in creating a base that is more self-sufficient and that is more sustainable with
regard to the environment.
Objectives. In creating an economic base that is more self-sufficient and environmentally
sustainable, Ames seeks the following objectives.
9.A. Ames seeks more diversified regional employment opportunities involving
technology-related services and production, office centers and retail centers.
9.13. Ames seeks to attract and support a small- and medium-size business center
that utilizes the skills and products of the area's trained workforce.
9.C. Ames seeks to expand its research and technology development through
greater private, public and university coordination and cooperation.
9.1). Ames seeks economic activities that are compatible and sustainable with its
environment.
FUTURE LAND USE POLICY PLAN MAP (LUPP FOLLOWING P. 36)
The area of the proposed urban renewal area is identified on the Land Use Policy
Plan Map as Planned Industrial.
• Planned Industrial - Industrial uses that involve a clustered/industrial park setting in
order to achieve greater integration of uses, access and appearance. Locations
should be near limited-access thoroughfares.
SUMMARY
The urban renewal plan and the proposed urban renewal project within the
proposed urban renewal area are consistent with and supported by the goals of
the Ames Land Use Policy Plan. This is demonstrated by:
The Project will support an increased employment base moving the City
closer to its 2030 employment projections.
The Project provides intensification of development in the industrial area.
The Project leverages private development with its investment of public
resources.
The Project supports and the Area is within an industrial infill area where
public infrastructure is immediately adjacent.
The Project will allow for the expansion of the industrial base.
5
• The Area lies within a Planned Industrial designation of the Land Use Policy
Plan Map.
• There are no identified issues that make the development of the Project
within this Area inconsistent with the Land Use Policy Plan.
Conformance with Zoning and Current Use
The Area is currently zoned PI Planned Industrial. This zoning designation is
consistent with the Land Use Policy Plan Map. It is also consistent with the current
use (Barilla).
City's Debt Obligations
This urban renewal area will include a provision for tax increment financing. In
accordance with Code of Iowa Chapter 403.17(24)(c), the following financial
information is provided.
CURRENT GENERAL OBLIGATION AND REVENUE BOND DEBT
Governmental Activities
Interest Outstanding
Sale Original Rates to Final June 30,
General Obligation Bonds Date Borrowing Maturity Maturity 2016
Corporate purpose 2008 $ 5,855,000 3.75-4.150 % 2020 $ 2,295,000
Corporate purpose 2009 11,165,000 2.00-3.500 2021 5,265,000
Corporate purpose 2010 6,690,000 2.00-2.500 2022 3,655,000
Refunding 2011 5,980,000 2.00-3.350 2021 1,190,000
Corporate purpose 2011 6,675,000 1.00-2.400 2023 4,045,000
Corporate purpose 2012 11,325,000 1.50-3.000 2032 8,530,000
Corporate purpose/refunding 2013 21,220,000 2.00-3.125 2032 16,440,000
Corporate purpose 2014 9,395,000 2.00-2.500 2026 7,870,000
Corporate purpose/refunding 2015 16,585,000 3.00-5.000 2035 14,405,404
$ 94,890,000 $ 63,695,404
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Page 1 of 1
Not setting hearing on Development Agreement
Josten.Robert
4 Vto:
dvoss
07/06/2017 02:3 8 PM
Hide Details
From: <Josten.Robert@dorsey.com>
To: <dvoss@city.ames.ia.us>
I just learned from Duane Pitcher that he does not want the Council to act on July 11 to set a hearing on the
Development Agreement with Barilla. Therefore, I have not sent the original copies of those proceedings, and
you may either keep the emailed copies or dispose of them. I will prepare an updated resolution whenever it is
needed.
Robert E.Josten
Partner
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DORSEY & WHITNEY LLP
801 Grand Suite 4100
Des Moines, IA 50309-8002
P: 515.283.1000 F: 515.283.1060 C: 515.556.8186
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONFIDENTIAL COMMUNICATION
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including any copies thereof,and inform the sender that you have deleted the e-mail, all attachments and any copies thereof.
Thank you.
file:///C:/Users/diane.voss/AppData/Local/Temp/notesC7AO56/—web4732.htm 7/6/2017
Business-Type Activities
Interest Outstanding
Sale Original Rates to Final June 30,
General Obligation Bonds Date Borrowing Maturity Maturity 2016
Corporate purpose 2008 $ 2,500,000 1.00-2.40 % 2023 $ 995,000
Corporate purpose 2012 1,335,000 1.50-3.00 2024 935,000
Corporate purpose 2013 1,320,000 2.00-3.00 2025 1,020,000
Corporate purpose 2014 300,000 2.00-2.50 2024 250,000
Corporate purpose/refunding 2015 2,061,714 3.00-5.00 2027 1,929,596
$ 7,516,714 $ 5,129,596
CURRENT CONSTITUTIONAL DEBT LIMIT AND CAPACITY
Legal debt margin for the fiscal year ended June 30, 2016:
Assessed value $3,789,598,226
Debt limit (5% of actual value) $ 189,479,911
Debt applicable to limit:
General obligation bonds 68,825,000
Legal debt margin $ 120,654,911
Percentage of net debt margin available 63.68%
Percentage of net debt margin exhausted 36.32%
Proposed Amount of Tax Increment Financing
The City intends to enter into a Tax Increment Financing (TIF) rebate agreement
with the developer of the project to provide a rebate of 100 percent of eligible
incremental property taxes for a period of ten years or an amount not to exceed
$3,000,000, whichever comes first. The TIF agreement will provide for annual City
Council approval of each TIF rebate, which will enable the City to count only the
amount of each rebate payment against the City's constitutional debt limit rather
than the full $3,000,000.
7
MAP 1: LOCATION AND PROJECT AREA
� o�.pa'If Railroad
East•L-incoln•Way
0 600 1,200
N Feet
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MAP 2: LAND USE POLICY PLAN [EXCERPT]
Railroad --�- r
pacifies
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Fl-LANNED,lNDbST'RIAL./
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/
_ E st'Liit��ol n vv5y
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0 500 1,000
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9
Appendix A
Recommendation of the Planning and Zoning Commission of June 21, 2017.
At the June 21, 2017 meeting of the Planning and Zoning Commission, motion by
Basmajian, second by Bowers to find that the draft Barilla Urban Renewal Plan is
consistent with the Ames Land Use Policy Plan. Motion passed 6-0.
10
Appendix B
Notice of consultation to Affected Taxing Entities
4 CITY OF
�►. Ames
Sritart Choice
June 14,2017
Story County Board of Supervisors
900 Sixth Street
Nevada,IA 50201
Ames Community School District
2005 24"'Street
Ames,IA 50010
To whom it may concern:
The City of Ames is in the process of establishing an urban renewal area and approving an urban
renewal plan for the Barilla Urban Renewal Area.In accordance with Section 403.5 of the Code
of Iowa,the City is sending you the enclosed copy of its urban renewal plan and scheduling a
meeting at which you,as an affected taxing entity,will have the opportunity to discuss the plan.
This meeting to discuss our urban renewal plan has been set for June 22,2017,at 4:00 p.m. in
Room 233 of the Ames City Ilall, 515 Clark Avenue. State law gives you the right to make
written recommendations concerning the urban renewal plan no later than seven days following
the date of the meeting.
The City Council will also hold a public hearing on the urban renewal plan at 6:00 o'clock p.m.
on July 11,2017.A formal notice of public hearing will be mailed prior to the meeting.
Please contact Kelly Diekmann, Planning and Housing Director, at 239-5181 of
kdieklnann@city.ames.ia.us if you have questions.
Sincerely,
n
Kelly Diekmann
Planning and Housing Director
Enclosure
Planning and Housing Department 515.239 5400 516 Clark Ave.P.O.Box 811
515,239.5404 /,.x Ames,U1 50010
w yr Ctyo'Ames beg
1 1
Appendix C
Affected Taxing Entities, their addresses, and representatives to the consultation.
Affected Taxing Entity Mailing Address Representative to
Consultation
City of Ames 515 Clark Avenue Kelly Diekmann, Planning and
Ames, IA 50010 Housing Director
Ames Community School 200524 InStreet none
District Ames, IA 50014
Story County 900 6th Street none
Nevada, IA 50201
12
Appendix D
Notice of public hearing was published in the Ames Tribune on June 30, 2017 and
mailed to the Affected Taxing Entities.
NOTICE OF PUBLIC HEARING ON DESIGNATION OF THE
BARILLA URBAN RENEWAL AREA AND ON PROPOSED
URBAN RENEWAL PLAN AND PROJECT
Notice Is Hereby Given: That at 6:00 o'clock p.m., at the City Hall Council Chambers,
Ames, Iowa, on the 11th day of July, 2017, the Ames City Council will hold a public
hearing on the question of designating as the Barilla Urban Renewal Area, pursuant to
Chapter 403, Code of Iowa, certain property generally described as follows: 140 acres of
property located east of Interstate Highway 35 and north of East Lincoln Way, owned by
Barilla America, Inc., and more specifically described in the urban renewal plan for the
Barilla Urban Renewal Area. The subject matter of the public hearing will also include a
proposed Urban Renewal Plan and project for the Barilla Urban Renewal Area identified
above, pursuant to Chapter 403, Code of Iowa, a copy of which plan is on file in the office
of the City Clerk. The general scope of the proposed urban renewal plan, as more
specifically described therein, includes the following: Increasing the tax base and
promoting economic growth and employment in Ames through the use of property tax
incentives. The initial purpose of the plan is to make it possible for the City to enter into a
development agreement to provide incremental property tax rebate payments in order to
assist Barilla America, Inc. with the expansion of the Barilla manufacturing facilities
located at 3303 and 3311 East Lincoln Way. At the hearing any interested person may file
written objections or comments and may be heard with respect to the subject matter of the
hearing.
Diane Voss, City Clerk
13