The URL can be used to link to this page

Home My WebLink AboutA007 - Email dated October 19, 2020 from Planning & Housing Diane Voss From: Eloise Sahlstrom Sent: Monday, October 19, 2020 4:28 PM To: Lorrie Banks Cc: Diane Voss Subject: Item for Oct 27 agenda_ Repeal of certain URAs Lorrie, Kelly wanted me to expand the info on the Repeal of Certain Urban Revitalization Areas for the tentative agenda. Please add these eight areas under the item: • South Lincoln "Sub-area"/ Neighborhood Urban Revitalization Area; • 405 &415 Hayward Urban Revitalization Area; • 517 Lincoln Way Urban Revitalization Area; • Roosevelt School Site and City of Ames Park 921 9th Street Urban Revitalization Area; • 415 Stanton Crawford School Urban Revitalization Area; and • South Wilmoth Avenue Urban Revitalization Area. • Walnut Ridge 3505 and 3515 Lincoln Way Urban Revitalization Area; and • 2700, 2702, 2718, and 2728 Lincoln Way; 112 and 114 South Hyland Avenue; and 115 South Sheldon Avenue Urban Revitalization Area. Kind regards, Eloise Sahlstrom Planner Planning & Housing City Hall, 515 Clark Ave. Ames, IA 50010 _ � C Ames ri /1 515.239.5447 main eloise.sahlstrom(a-)cityofam es.org Mailing: 515 Clark Ave. I Ames, IA 50010 www.CityofAmes.org Help make the City of Ames even better Download the Ames on the Go app today! 1 Diane Voss From: Eloise Sahlstrom Sent: Monday, October 19, 2020 4:23 PM To: Diane Voss Subject: FW: Repeal of certain Urban Revitalization Areas Attachments: 2020-10-27 Repeal of Urban Revitalization Areas.docx Attached is the CAF draft for the repeal of the areas. Mark indicates that we can do it as one ordinance.The Alternative 1 lists each item to be included in the action. I am happy to answer any questions. Kind regards, Eloise Sahlstrom Planner Planning & Housing City Hall, 515 Clark Ave. I Ames, IA 50010 Ames 515.239,5447 main eloise.sahlstrom(cDcityofames.org Mailing: 515 Clark Ave. I Ames, IA 50010 www.CityofAmes.org Help make the City of Ames even better.! Download the Ames on the Go app today! From: Eloise Sahlstrom Sent: Tuesday, October 06, 2020 4:56 PM To: Mark Lambert<Mark.Lambert@cityofames.org> Cc: Kelly Diekmann <Kelly.Diekmann@cityofames.org> Subject: FW: Repeal of certain Urban Revitalization Areas Mark, Attached is a draft of my Council Action Form for October 27. 1 thought that it would be helpful for you to have it as you are preparing the ordinance. Let me know if there is anything that needs to be revised. Eloise Sahlstrom Planner Planning & Housing City Hall, 515 Clark Ave. I Ames, IA 50010 Pmes 515.239.5447 main eloise sahlstrom(d)cityofames org Mailing: 515 Clark Ave. I Ames, IA 50010 www.CityofAmes.org Help make the City of Ames even better' Download the Ames on the Go app today! From: Eloise Sahlstrom Sent: Friday, October 02, 2020 3:27 PM To: Legal Dept<legaldept@cityofames.org> Cc: Kelly Diekmann <Kelly.Diekmann@cityofames.org>; Diane Voss<Diane.Voss@cityofames.org> Subject: Repeal of certain Urban Revitalization Areas Please establish a Legal Matter ID# related to the repeal of the following Urban Revitalization Areas. Planning anticipates taking this forward as one Council Action with one Ordinance. unless directed differently by Legal staff. This item will be on the CC Agenda for October 27, 2020. An Ordinance repealing the following Urban Revitalization Areas. by establishing an expiration date of 12-31- 2020 for each of the following Urban Revitalization Areas: • South Lincoln Sub-area"/ Neighborhood Urban Revitalization Area. established 09-23-03 by Ordinance # 3733, 405 & 415 Hayward Urban Revitalization Area. established 11-20-2007 by Ordinance # 3932 • 517 Lincoln Way Urban Revitalization Area. established 02-24-2015 by Ordinance # 4209; • Roosevelt School Site and City of Ames Park 921 9th Street Urban Revitalization Area established 11-12-2013 by Ordinance # 4162. and Program Policy established by Resolution # 13-265, 415 Stanton Crawford School Urban Revitalization Area established 06-12-2018 by Ordinance # 4357, • South Wilmoth Avenue Urban Revitalization Area. established 12-25-2015 by Ordinance # 4240. And additionally: by establishing a sunset date of 12-31-2021 for each of the following active Urban Revitalization Areas: • Walnut Ridge 3505 and 3515 Lincoln Way Urban Revitalization Area. established 04-26-2016 by Ordinance # 4254: • 2700, 2702, 2718, and 2728 Lincoln Way; 112 and 114 South Hyland Avenue, and 115 South Sheldon Avenue Urban Revitalization Area, established 12-13-2016 by Ordinance # 4284, Reference- City Council 08-21-20 Agenda Item #21 Kind regards. Eloise Sahlstrom 2 ITEM # DATE: 10-27-20 COUNCIL ACTION FORM SUBJECT: PUBLIC HEARING AND FIRST READING OF AN ORDINANCE REPEALING CERTAIN URBAN REVITALIZATION AREAS BACKGROUND: On August 21 , 2020, the City Council received an overview of Ames' Urban Revitalization Areas and Program and directed the repeal of several Urban Revitalization Areas. The majority of these URAs are project specific. Project Specific URAs often include approved project site plans and building elevations in place of an area map. Once an URA is established by Ordinance, properties located within the URA may apply for tax abatement with the City Assessor if they meet the established criteria and are determined to be eligible by the City Council upon competition of improvements. Although improvements are completed, no sunset date was included as part of the establishing ordinance. It is staff's opinion that a formal action on the part of the Council to eliminate these completed projects would be beneficial to avoid inadvertent subsequent property tax incentives for future improvements. In some cases, a duration time period was included as part of the urban revitalization plan. The intent was to support a time-limited approval as a sunset feature. However. under Iowa Code, dates included within the plan and adopted by resolution are referred to as "an estimated date" and do not appear to have binding authority in sunsetting an URA. The Code of Iowa Section 404.7 grants the city authority to repeal any ordinance establishing a revitalization area. if the city determines that ''the desired level of revitalization has been attained or if the city determines that economic conditions are such that the continuation of the URA abatement would cease to be of benefit to the city". If a repeal of a URA should occur. existing tax abatements, based upon approved eligibility. continue until the completion of the tax abatement cycle of three, five or ten years. The purpose of this action item is therefore to add expiration or sunset dates to various Urban Revitalization Areas. identified below, to resolve this oversight. One additional repeal is requested for the South Lincoln Sub-Area (or Neighborhood) URA, as described below. South Lincoln Sub-Area (or Neighborhood) Urban Revitalization Area The South Lincoln Sub-Area URA was established September 23. 2003 by Ordinance #3733. No sunset date was included in the ordinance. Since its establishment. minimal redevelopment has occurred in this area. The structure of the criteria has not yielded the specific desired results in terms of design and character. The area is labeled in Plan 2040 as an area to be revisited for an updated sub-area plan. It would be appropriate to 1 1 consider a new URA in the future, once that planning work is complete, and to not encourage potentially undesirable redevelopment in the interim. Given this, staff proposes repeal of Ordinance #3733, with an effective date of December 31, 2020. 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. 405 and 415 Hayward Avenue Urban Revitalization Area The 405 and 415 Hayward Avenue URA [Iowa House] was established November 20, 2007 by Ordinance #3932. No sunset date was included in the ordinance. It is a project specific URA. The project was completed according to the approved plans and the desired level of revitalization has been attained. Additionally. the 3-year schedule for tax abatement has been completed. Given this, staff proposes repeal of Ordinance #3932, with an effective date of December 31, 2020. 517 Lincoln Way Urban Revitalization Area The 517 Lincoln Way URA [Squeaky Clean] was established February 24, 2015 by Ordinance #4209. No sunset date was included in the ordinance. It was a project specific URA but did not establish site specific improvement or architectural plans. No expiration date was identified in the Plan. The project has been completed and the desired level of revitalization has been attained. Tax abatement began in 2016 for a 3-yr period which has been completed. Given this, staff proposes repeal of Ordinance #4209, with an effective date of December 31, 2020. Roosevelt School Site and City of Ames Park 921 9th Street Urban Revitalization Area and Program Policy The 921 9th Street URA was established November 12, 2013 by Ordinance # 4162. No sunset date was included in the ordinance. The Roosevelt School Site qualifying criteria was established June 11 . 2013 by Resolution # 13-265 establishing it as a program policy area. No expiration date was identified in the Plan; however. the desired level of revitalization has been attained. Tax abatement began in 2015. Given this, staff proposes repeal of Ordinance #4162, with an effective date of December 31, 2020. 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. 415 Stanton Crawford School Urban Revitalization Area The 415 Stanton Crawford School URA was established June 12. 2008 by Ordinance # 4357. No sunset date was included in the ordinance. The 415 Stanton Crawford School URA is a project specific URA. The Plan adopted May 8, 2018 by Resolution #18-281 indicated a duration period expiring on December 31, 2020. The project has been completed according to the approved plans and the desired level of revitalization has been attained. Twenty-eight units began receiving tax abatement in 2020. Two remaining units qualify but have not yet applied/received tax abatement. Given this, staff proposes repeal of Ordinance #4357, by establishing a sunset date of January 2, 2021. This will allow the two remaining properties to apply for tax abatement consideration in 2021 , because the area must exist at time of determination which is January 1 . 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. South Wilmoth Avenue Urban Revitalization Area South Wilmoth Avenue URA [Breckenridge] (now addressed as 3326 Lincoln Way) was established December 22, 2015 by Ordinance # 4240. Tax abatement began in 2019 for a 10-yr period. This ordinance is already established to sunset on December 31 , 2021 . Therefore. no further action is needed. Walnut Ridge 3505 and 3515 Lincoln Way Urban Revitalization Area The Walnut Ridge 3505 and 3515 Lincoln Way URA was established April 26, 2016 by by Ordinance # 4254. No sunset date was included in the ordinance. The Walnut Ridge 3505 and 3515 Lincoln Way URA is a project specific URA. The Plan adopted March 22, 2016, indicated a duration period expiring on December 31 . 2021 . The project has been completed according to the approved major site development plans, participation in the Ames Crime Free Housing Program and in accordance with the conditions of Resolution #15-561 . Tax abatement began in 2017 for a 10-yr period. Given this, staff proposes repeal of Ordinance #4254, by establishing a sunset date of December 31, 2021. 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. 2700 2702. 2718, and 2728 Lincoln Way; 112 and 114 South Hyland Avenue and 115 South Sheldon Avenue Urban Revitalization Area The 2700, 2702, 2718, and 2728 Lincoln Way: 112 and 114 South Hyland Avenue: and 115 South Sheldon Avenue URA [The Union] was established December 13, 2016 by Ordinance # 4284. No sunset date was included in the ordinance. It is a project specific URA. The Plan adopted November 15, 2016 by Resolution # 16-660 indicated a duration period expiring on December 31, 2021 . The project was completed according to the approved plans and the desired level of revitalization has been attained. Tax abatement began in 2019 for a 10-yr period. Given this, staff proposes repeal of Ordinance #4284, by establishing a sunset date of December 31, 2021. 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. ALTERNATIVES: 1 . The City Council may Approve First Reading of an Ordinance repealing the following Urban Revitalization Areas by establishing an expiration date of 12- 31-2020 for each of the following Urban Revitalization Areas; • South Lincoln 'Sub-area"/ Neighborhood Urban Revitalization Area: • 405 & 415 Hayward Urban Revitalization Area; • 517 Lincoln Way Urban Revitalization Area: • Roosevelt School Site and City of Ames Park 921 9th Street Urban Revitalization Area; 415 Stanton Crawford School Urban Revitalization Area; and • South Wilmoth Avenue Urban Revitalization Area. And additionally, by establishing a sunset date of 12-31-2021 for each of the following active Urban Revitalization Areas: • Walnut Ridge 3505 and 3515 Lincoln Way Urban Revitalization Area; and • 2700, 2702. 2718. and 2728 Lincoln Way; 112 and 114 South Hyland Avenue: and 115 South Sheldon Avenue Urban Revitalization Area. 2. The City Council may choose to Amend the Ordinance and proceed with the repeal of only some of the areas identified above. 3. The City Council may refer this item back to City staff for additional information. CITY MANAGER'S RECOMMENDED ACTION: URAs have generally been successful at incentivizing projects prioritized by the City Council over the past two decades. However. as time goes on the goals and objectives for an area or program may become stale. not support current priorities, or are ineffective at achieving their goals. Repeal of URAs that have been completed is appropriate, as well as the repeal of any URAs that have not achieved their purpose, or may not coincide with the preliminary direction on future changes related to Ames Plan 2040. The approval of this ordinance will help to ensure that the City's URA program is appropriately directed and maintained going forward. Therefore, it is the recommendation of the City Manager that the City Council accept Alternative #1 , thereby approving First Reading of an Ordinance implementing the repeal of certain Urban Revitalization Areas. 4