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HomeMy WebLinkAbout~Master - Prior approval of urban revitalization tax exemption for 328-330 Main Street RESOLUTION NO. 08-472 RESOLUTION GRANTING PRIOR APPROVAL OF URBAN REVITALIZATION TAX EXEMPTION FOR PROPERTIES AT 328 -330 MAIN STREET FOR THE CITY OF AMES WHEREAS,each year,property owners who have developed,redeveloped,rehabilitated,or remodeled property within the Urban Revitalization Areas of the City claim tax exemption for work that has been done; and, WHEREAS, the developer who has recently proposed renovation of 328 - 330 Main Street as the downtown"catalyst"project is requesting prior approval for a three-year, 100%tax exemption on increased value with respect to work yet to be done; and, WHEREAS,the expected construction cost for the project is approximately$3 million,with the exact increase in taxable property value not known at this time; and, WHEREAS, four properties have received tax abatement in the Downtown Urban Revitalization Area(URA), and all of these properties first received Council approval of a Facade Improvement Grant; and, WHEREAS, since the criteria for Facade Improvement Grants are the same as for tax abatement, the property owners could be confident that the City Council would approve tax abatement for their projects; and, WHEREAS, this occurred after the work was completed, an application was filed, and the Council approved the annual list of tax abatements; and, WHEREAS, a property owner can review the Downtown Design Guidelines, make facade improvements that are consistent with those Guidelines, and then apply for tax abatement for the complete project,however, for a large project,the property owner would be taking substantial risk if the City Council would not agree that the improvements meet these Guidelines; and, WHEREAS, that is a large risk for any large project that is relying on tax abatement to be successful,therefore,the Code of Iowa provides for prior approval eligibility,by resolution approved by the City Council; and, WHEREAS, the Council is being asked to give prior approval that the renovation project proposed for the two buildings at 328 - 330 Main Street is eligible for tax abatement in order to provide the developer some assurance that the work will receive the tax abatement if done; and, WHEREAS,the developer is also seeking some assurance that the standards he must follow to obtain tax abatement will not change after he has begun to invest in the project based upon the proposed plan; and, WHEREAS,based on currently available documents,staff has reviewed the proposed project, and this review indicates a number of revisions and additional information needed for the proposal to meet the criteria; and, WHEREAS, with the listed revisions and additional information, staff concludes that the project proposal meets the minimum criteria of the Downtown Urban Revitalization Plan, which include the Downtown Design Guidelines; and, WHEREAS, the City Manager is recommending approval of this proposed project for eligibility for urban revitalization tax abatement under the following conditions: 1)before any tax abatement is approved, the entire project shall be completed in conformity to plans provided by October 28,2008,which shall include all revisions specified on the attached review of the proposed project;2)the project includes the improvements shown for all facades of the buildings;3)approval is valid for improvements completed by January 1, 2013, and any revisions to the criteria for tax abatement under the Downtown Urban Revitalization Plan will not be required for this project as presented; and, 4) where the provisions of the Downtown Design Guidelines contradict standards of the National Park Service or U.S. Department of the Interior,the federal standards shall qualify. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the granting of prior approval of eligibility for urban revitalization tax exemption for properties located at 328 - 330 Main Street is hereby approved, subject to the above-mentioned conditions. ADOPTED THIS 28`h day of October, 2008. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Popken Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 28'day of October, 2008.