HomeMy WebLinkAboutA001 - Council Action Form dated December 13, 2022 ITEM # 51b
DATE: 12-13-22
COUNCIL ACTION FORM
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SUBJECT: ORDINANCE ESTABLISHING TAX INCREMENT FINANCING (TIF)
DISTRICT WITHIN THE NORTH DAYTON INDUSTRIAL PARK URBAN
RENEWAL AREA.
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BACKGROUND:
The City of Ames has established the North Dayton Industrial Park Urban Renewal Area
i and Plan (URA). (Boundary Map-Attachment A) The URA was created for economic
development purposes with Tax Increment Financing (TIF) to facilitate economic
development of small scale industrial lots and speculative buildings for small businesses.
On October 11 th, the City Council approved entering into an agreement with Dayton
Avenue Development LLC to support a TIF district. A TIF ordinance is now necessary in
the North Dayton Industrial Park URA to complete the prerequisite requirements of the
City's Development Agreement, The TIF area is being designed to generate
incremental property tax rebates to the developer for qualifying public
improvements in the North Dayton Industrial Park Subdivision. Estimated total TIF
revenue needed to support these improvements is $2,968,264.
Staff has prepared the required TIF ordinance for City Council approval in support of the
planned development of the North Dayton Industrial Park. Specifically, the funds are
intended to be rebated to the developer through a property tax rebate based on the
incremental value of property that is developed in the district for installation of
infrastructure improvements related to street construction, water main, sanitary sewer
main, storm sewer main, electrical facilities as well as sidewalks and shared use paths. It
is necessary to establish this TIF district prior to December 15t of 2023 to maximize the
amount of increment generated from development that could occur in the North Dayton
Industrial Park in 2023.
The proposed boundary of the TIF district is described as including all the developable
land that will be final platted as the North Dayton Industrial Park. The boundaries also
match the boundaries of the North Dayton Industrial Park URA,
Staff notes that these planned lots for the North Dayton Industrial Park have not yet been
final platted. The developer is in the process of preparing the final plat documents. The
Development Agreement between the City and the Developer requires the
developer to final plat the lots no later than July 1 st of 2023.
ALTERNATIVES:
1. The City Council can approve on first reading an Ordinance establishing the North
Dayton Industrial Park TIF District.
2. Direct staff to modify the proposed TIF District to only include a different amount of
land area within the North Dayton Industrial Park URA.
3. City Council can decline to create the TIF Area and direct staff and the developer to
proceed with alternative funding sources.
CITY MANAGER'S RECOMMENDED ACTION:
The proposed TI F District is consistent with past practices of the City to support economic
development. The proposed improvements are consistent with the approved URA Plan
and the use of TIF for a property tax rebate to the developer for such improvements. The
proposed area includes the recently approved North Dayton Industrial Park URA.
Payment of the TIF rebate will an appropriation of the City Council and is subject
to performance by the developer consistent with the development agreement.
The Development Agreement specifies an obligation on the part of the City to
provide an incremental property tax rebate to the developer for 10 years or up to
$2,968,264, whichever comes first.
Therefore, the City Manager recommends Alternative 1, which is to have first
reading of an ordinance creating the North Dayton Avenue Industrial Park TIF
District within the North Dayton Avenue Industrial Park Urban Renewal Area.
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ATTACHMENT A: NORTH DAYTON INDUSTRIAL PARK URBAN RENEWAL AREA & TIF DISTRICT
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ATTACHMENT B. PROPOSED TIF ORDINANCE
ORDINA.N(..E NO,
AN 01110NANI(J!", TO AiNIFINDT11F, AWN110PAL CODE OF
1-14E CATY (YF Ai! ES, IONVA, RY E�NACTJNG A NEW
SE CTION 24.21) TIIER1,�O*F, FOR TUE PURPOSE OF A 'M
INCREINWNTFINANC.ING DISTRICT,REPEAUNG ANY AND
ALL ORDINANCFS OR PARTS OF ORUTNANCES IN
CONFLICT TO 1114F. EXTENT OF SUC.'H COINFUCT., AND
E,STABLISRING AN Fn,"111m. ivri Dx.m..
Bf,l.'r E.-NACTED.by(W City Coum-ilf'or tha City of Arrim lows,that:
Section(*.)tie. Tile Municipal Coda of the City ofArnes,lowa:whall be mid ilia saine is hereby
amerided by enacting it new Sectim 24.20 its folhii-ms:
(I.:I Putpme.The rw.Tose of thiN ordiamwe i&to pmvidefior dto divisitxi of I-ovs
levied on taytbk property within the North Wyton Imblatial fork Urban Renewal Ama, each yvar by
and for (tic bench[of flu,stale.city, courity,-jhoal. ifidnets or other taxiug*Astricts allex [lie tMective
dais of this ordiniAnce. in order to cricaw it Special raid to pay dic principiil ofa.11d immsi on limns.
vioncys adv,,iric.tni to or indebu.,diums.including butub proposed to be iisued by.the City of Ames to
fimme proj"-%ids such awa.
(2) Dtfuutioms, For use wahin this orclitialwe the follo%ving, terms shall Itave
the kdbm ing tmmnm�,,*
City"shall nwan the Uh-ol'A.i:nc!i,. Iowa.
"Urban Reammal Am" Shall mean tba:North:Daytou Indvimriat Park Urban Rcrimal Area.
mteh Area having bee:04dontified in.fhi=LI-Amn Re4eval Plan ftp.prrtvcd by the City Come.if of the City
byTtcsrdiltitidiR loin. 22-546.adomedph Ck:tobcr FL 2022,,A;hich includes the real property id.entilfied
u lvlowand shall cmimitut h mwo6mi m,fiaa-rickg diariet created by this ordinalvx:
Thu.Southeast Qmuier(SEI'Vd)of the Nordma Quarter JNEY;i)of (36);
the Nkirthcwa Quarter(NNE 1A)of the Northeast Quarter(NVII;4),of Section Thirty-six(36)
except the North I rod and exeettt.A Inn.(it Elie NE14 ot'dit NE.,cif Sec.36484-1124W
ofam .s* I1.m_ Stotyc'multy,lowa,described as Ritlows: BtSinnitigata point.on die
cast fine, 16-5 feet,south.of the:NE Corner of said 141--il/i orthe NlPA;thence N881141V
92.5,0 Axiparallcl as 163 feet distmil.fivirn the north line of said NEYi of the 19.1-PA,
tbtmcv,Soug-k 275.0 11CCL-thencic$881141'E 923.0 I'm to the cost line(if said NE%ofthc
thencz.:Norih 27.5.0 1imt to the point oT beginning.
(3) Prtwisijans for Vtivkiort of 17iixes Lcvi4d on Taxab14,e property ill the
t..;r1xtn Renewal Arta. A.firr the efiketive date or this ordinance. the mes levied on the tamoble
propeny in tl 1."ri-xin Renewal Area eaOi year by mid for Elie:bencrit o:r owsvite or town.,the iry,
tlw Colirltv arld anyschmil district or o(her ta,,5inm district in 4'bich IN- Urban Rcnewid Area is
locawd, shall be di vided as
(a) that pi-n1ion of the whisk would lie pradaced by the rate at
A Inch the iax is lvvicd em It year by or for e�wb of the Taxing districts upon the mal sum of thd:
as,wss,tid value (if tile taxubli:property in the L'Whart Rene-wal Area,a.q Jmwn oil the asses's.iftnt ro.-Il
a�ot,jamlary I ot,the cak.-rithir Year preceding the rirm 4valendar yimr in.which the City c n,iifics to the
Courity Auditor the artiotint of loans, advances, indebted ness. or boadzi payable from the special
ffind refs n,od to in parrtgraph(b)below,shall be all.mated aild whert coffevvd be paid into the fund
for the r,;,,,pe:a 6V%:taxing dimici as t'wa.xos by or for said taxing district into which all other properly
taxw.... arc:paid. For thc;pugtoso of'.aCloe ati:ng taxes kvieti by or for any taix.iaa8 district which did
not t110t)( .rile tc:rrmt r! ill the Urban Rertmal area on the effcctive date ofthiN ordinance,but to
Evhwh the terr7Eory has beets atrmcxcd or otherwise included after the effowive date. the
a:sm!isatt£axt roll a3la rlic;aabfe to prolicrt} in the Fanivxed to^rritory its o('Jtaatuiary 1 of tho Calcara:Eiaat,
year preceding the effective elate of'rhe asrdinaance tvhich,amends tits;plan fair the Urban R.e:ata:waaI
Amoa.a (o inc:lude tltc annexed area, shall be aced in detertniniaag ilia mssezF.sed valuation of the
taxable property in,the aartaxax d area.
(b) that portion of the toxc.'s k:oc h year in excess of'such amounts
%hall Lv a lloc:atod to .m.nd when collected be paid into a special fund of tha: City to pay the
laramipal and'inwrcmr on loans. moneys advanced to or nadcbtcdtteyaa3..mitet'teer funded. mrunded,
ata,turneed or othirrwis4. including bonds issued under the €autEaoticy of SectiE.rta 403.9(l) or (lie
t_a.9Efe of Iclu:aa, iuEVt:aare.ti by tltEr C"ity to finance or refi:rnaan£e; its.whole or in Part,as proj.ect within
i the tirNaa ltantavc+aal llroaa. and ko provide :7•S.tittitluice for I", and mciEftr,.ratc:-rtaconm hartilly+
laou.,ing a::.pi-oxidod in Section 403,22 of the Code of iow& exetV tlaatt taxis for the regular and.
i voter•appruv`d physical plant stud equifnrrcatt levy of as school district ita;tptascd pursrtalnt tt) Section
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199.2 of 6c:Code of Iowa, to the extent authasrized :in Section 403.1�t)0) or the Code of low<a.
( nixes fear the instruction l support program lc vlr:ail a .school district. aarposod.pursuant to Seclio a
:57.19 of the Cade uP7.o a,to the exwnt autivorired in Section 403,19(2)iif:the C'o(k of Iowa,
taxes fair the psaynwit of borax and interest of eaah.ta_xing distr'ct, and taxck imImseA u- der
Section. 346.27(2 ) of the Lode of.lo- a, reltat€od to joint county-city buil.Elirtga; sluill,be c olleciad
zagainm all taxable property within cite tt ibig. da`striet wiihout limitation by the provi ions or this
ordi'anaarive.Unless.Wid I:statil the total aa..sst► cal valuratiEaaa of tlae Umible property in the.Urban Renewal
,1xe,:aa. i-4ceecis th,; uaaatl ta,"esscd value of tile: taxa b4- :I>aoixrty°.ion sitelt area as shown by the
;aW:, ,arrzni rol-1 refert-Cd to its rtilr:+cri9:,ra iaa)of thi-.section,all of the:tars levied t€loci collcet.E.sf Capon
j 111v taxable.property in the L3rf.'aaaa Rcra+:vv;al A s shall.be Paid luto(lie Jhu&s for the reiipocti:vc taxiog
d'istric is:as ta;tcs by or rot%aaid taxiu�,dkit iet� m:tlsc same m anvicr ras all odl.tor proWny taxes, When
:such loans. adv ancvs. in.debtedax:sa, and b*nds» .if any, mid interest d-u-moo, have b'te a laid. -all
auln:t thereaftc:r receivaatd:from tax upon the taxaxltle Inolvay°in.tlae Urban fi>mewal.Area,,b,)ll Ix-
Imid into the funds for tW xe:pr it?ar taxiu. ,, iftstaims in the same munmer as toxes ou all othor
(c) the im-rticxt of lxt0,4 Mentioned in suhsaclion:(b)of this section
and tlat special fund intty which rhait.l ortion sh atl lbe paid may be irievocafaly pledged by tilt;.
City fesa°the fsaayrnl.m Of'the rinricipat stud interest on loans. aadvttnccE .-,. l'arands tsactxcd tinter the
Authorliv of Sceiio:a 403,90.) of the (,-o of lowaa. or intichw(Iness ineurav d by the City to
f;traaacs:Or refinance in vx°hcalc or in part prolects 6%ilia G rtian Rcuewu,d Axca,
(di as used in th:'ss mx:titm, the .word `"ta+c " ianeludeti, but is not
Iilnitc d to.;:all In.k-s on.an adw�ido can baams,upoat h uld or real property.
! Section TWO.All orditat hms.or parts of ordimuices,.in conflict hcrewitli are herLity rLToaled to the
t extetat of such conflict,if'any:
smitya T7tree. This ordinaries:shall be in full fore and cffee:t front and aaftcr im ImsstaRc and
publication as required by lama,
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Paused this. tiny or
' hence 14all.,City Clerk CC:lerk John A.Haila,Mayor
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ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA, BY ENACTING A NEW
SECTION 24.20 THEREOF, FOR THE PURPOSE OF A TAX
INCREMENT FINANCING DISTRICT; REPEALING ANY AND
ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND
i ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED, by the City Council for the City of Ames,Iowa,that:
j Section One. The Municipal Code of the City of Ames,Iowa shall be and the same is hereby
amended by enacting a new Section 24.20 as follows:
"Sec. 24.20. SEVENTH TAX INCREMENT FINANCING DISTRICT.
(1) Purpose.The purpose of this ordinance is to provide for the division of taxes
levied on taxable property with in the North Dayton Industrial Park Urban Renewal Area, each year by
and for the benefit of the state,city, county,school districts or other taxing districts after the effective
date of this ordinance in order to create a special fund to pay the principal of and interest on loans,
moneys advanced to or indebtedness, including bonds proposed to be issued by the City of Ames to
s finance projects in such area.
(2) Definitions. For use within this ordinance the following terms shall have
the following meanings:
" City"shall mean the City of Ames, Iowa.
' "County"shall mean Story County,Iowa.
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"Urban Renewal Area" shall mean the North Dayton Industrial Park Urban Renewal Area,
such Area having been identified in the Urban Renewal Plan approved by the City Council of the City by
Resolution No. 22-648 adopted on December 13, 2022, which includes the real property identified
below and shall constitute the tax increment financing district created by this ordinance:
The Southeast Quarter(SE%4)of the Northeast Quarter(NE'/4)of Section Thirty-six(36);
the Northeast Quarter(NE'/a)of the Northeast Quarter(NE%a), of Section Thirty-six(36)
except the North 1 rod and except A part of the NE'/n of the NE'/4 of Sec. 36-T84-R24W
of the 511' P.M., Story County, Iowa, described as follows: Beginning at a point on the
east line, 16.5 feet south of the NE Corner of said NE!/4 of the NE%4; thence N88°41'W
925.0 feet, parallel and 16.5 feet distant from the north line of said NE%, of the NE%4,
thence South 275.0 feet, thence S88041'E 925.0 feet to the east line of said NEA of the
NE A;thence North 275.0 feet to the point of beginning.
(3) Provisions for :Division of Taxes Levied on Taxable Property in the
Urban Renewal Area_ After the effective date of this ordinance, the taxes levied on the taxable
property in the Urban Renewal Area each year by and for the benefit of the State of Iowa,the City,
the County and any school district or other taxing district in which the Urban Renewal Area is
located, shall be divided as follows:
(a) that portion of the taxes which would be produced by the rate at
which the tax is levied each year by or for each of the taxing districts upon the total sum of the
assessed value of the taxable property in the Urban Renewal Area, as shown on the assessment roll
j as of January I ofthe calendar year preceding the first calendar year in which the City certifies to the
County Auditor the amount of loans, advances, indebtedness, or bonds payable from the special
fund referred to in paragraph (b) below, shall be allocated and when collected be paid into the fund
for the respective taxing district as taxes by or for said taxing district into which all other property
taxes are paid. For the purpose of allocating taxes levied by or for any taxing district which did
not include the territory in the Urban Renewal Area on the effective date of this ordinance, but to
which the territory has been annexed or otherwise included after the effective date, the
assessment roll applicable to property in the annexed territory as of January 1 of the calendar
year preceding the effective date of the ordinance which amends the plan for the Urban Renewal
I Area to include the annexed area, shall be used in determining the assessed valuation of the
taxable property in the annexed area.
(b) that portion of the taxes each year i.n. excess of such amounts
j shall be allocated to and when collected be paid into a special fund of the City to pay the
principal and interest on loans, moneys advanced to or indebtedness, whether funded, refunded,
assumed or otherwise, including bonds issued under the authority of Section 403.9(l) of the
Code of Iowa, incurred by the City to finance or refinance, in whole or in part, a project within
the Urban Renewal Area, and to provide assistance for low and moderate-income family
housing as provided in Section 403.22 of the Code of Iowa, except that taxes for the regular and
voter-approved physical plant and equipment levy of a school district imposed pursuant to Section
298.2 of the Code of Iowa, to the extent authorized in Section 403.19 (2) of the Code of Iowa,
taxes for the instructional support program levy of a school district, imposed pursuant to Section
257.19 of the Code of Iowa, to the extent authorized in Section 403.19(2) of the Code of Iowa,
taxes for the payment of bonds and interest of each taxing district, and taxes imposed under
Section 346.27(22) of the Code of Iowa, related to joint county-city buildings, shall be collected
against all taxable property within the taxing district without limitation by the provisions of this
ordinance. Unless and until the total assessed valuation of the taxable property in the Urban Renewal
Area exceeds the total assessed value of the taxable property in such area as shown by the
assessment roll referred to in subsection (a.)of this section, all of the taxes levied and collected upon
the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing
districts as taxes by or for said taxing districts in the same manner as all other property taxes. When
such loans, advances, indebtedness, and bonds, if any, and interest thereon, have been paid, all
money thereafter received from taxes upon the taxable property in the Urban Renewal Area shall be
paid into the funds for the respective taxing districts in the same manner as taxes on. all other
property.
(c) the portion of taxes mentioned in subsection (b)of this section
and the special fund into which that portion shall be paid may be irrevocably pledged by the
City for the payment of the principal and interest on loans, advances, bonds issued under the
Authority of Section 403.9(1) of the Code of Iowa, or indebtedness incurred by the City to
finance or refinance in whole or in part projects in the Urban Renewal Area.
(d) as used in this section, the word "taxes" includes, but is not
limited to,all levies on an ad valorem basis upon land or real property.
Section Two.All ordinances,or parts of ordinances,in conflict herewith are hereby repealed to the
extent of such conflict,if any.
Section Three. This ordinance shall be in full force and effect from and after its passage and
publication as required by law.
Passed this day of ,
Renee Hall,City Clerk John A.Haila, Mayor