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Home My WebLink AboutA002 - North Grand Mall Redevelopment Economic Benefit to Ames North Grand Mall Redevelopment Economic Benefit to Ames, Iowa (The following is in response to Paragraph 1.b of the Adaptive Reuse Application and Final Staff Comment#1) Redevelopment of the existing 34 acre North Grand Mall and adjacent Grand Center retail strip center will yield the following financial benefits to the City of Ames Real Estate Taxes The three PINS comprising the mall, retail strip center and outparcels have a January 1, 2006 proposed assessed value of$34,506,000. This equals a total real estate tax of approximately $1,073,000 at the 2006/2007 current total Levy Rate of$3.11507 per$100 AV. The stabilized Assessed Value of the redeveloped property is estimated to be $67,300,000, which is an increase of$32,800,000 or 95%. This is based on budgeted construction costs for the project of$27,000,000 plus the existing values for land and remaining improvements. Based on this and applying the current levy rate, taxes will increase to $2,096,965 upon completion of the redevelopment and stabilization of the property. This is an incremental real estate tax increase of approximately$1,024,000. (See attached Tax Analysis worksheet). Sales Tax Revenue The proposed redevelopment will increase leaseable retail area to 502,000 square feet from the current 398,000 square feet. Mall sales of approximately $49 million are projected for 2006. Currently, the Grand Center strip retail space is underperforming with sales estimated at under$6 million. Combined estimated sales potential for the redeveloped property is$225 per sq. ft., which equals total projected sales of$110 million, or an increase of approximately$55 million over current sales levels.Total potential sales tax generated by the redeveloped project is projected at$7 million based on the current total tax rate of 7%.The City of Ames and School District each collect a 1% sales tax. The combined estimated increase in sales tax revenue for the City and School District is$1.1 million. Job Creation The increase in store area and increased productivity of the strip retail space after redevelopment will create new employment opportunities for Ames residents. Current industry estimates for retail employment range between two and three employees for each 1,000 square feet of space. It must be noted that this is an average and varies greatly depending on the type of business. North Grand Mall currently employs nearly 1,000 people. It is estimated that the proposed mix of full service lifestyle retailers and traditional mall retail uses will create an additional 350 jobs upon stabilization of the redeveloped project. Other Benefits It should be noted that the above estimates for increased real estate and sales tax revenues are realized with minimal additional expense in infrastructure and service costs to the City of Ames. There is also a significant intangible benefit to the surrounding neighborhood from the redevelopment of this large commercial block. It is a generally accepted appraisal principal that reinvestment in large core properties such as North Grand decreases the economic age of a neighborhood, resulting in enhanced property values for the neighborhood. i R .10USING NORTH GRAND MALL COMMUNITY EVENTS (The following is in response to Paragraph 1,b of the Adaptive Reuse Application and Final Staff Comment#1) 2002 4-H Ribbon Auction Contributor ABWA-American Business Women Gift wrapping-Raised funds for scholarships ACCESS=Silent Witness Exhibit Regarding Abused Women Ames High School Jazz Band-Single practice preformance Art Display Cases-For non-profit organizations Back to School-Back Pack Collection-Hundreds of back packs collected for needy children Business Expo October Children to Children Duffel Bag Program-1752 bags and 930 gift items collected for foster children Sept-Nov Community Display Rack-non-profit organizations can display informational materials Community Fair(October) Venue for community non-profit organizations to distribute information and recruit membership Easter Bunny&Easter Bunny Display-Climate controlled environment for kids to visit the Easter Bunn Fashion Shows Flu Shot Center-Shots given by Homeward of Ames Food Bank Collection Center for Bethesda Food Pant October Girl Scout Overnight Event Donations to school events: 10 area schools with after-prom parties,school carnivals, Parents in Education Organizations; Contributions to area citizens with tragedies,American Cancer Society, Diabetes Association, Boys Scouts of America,Boys&Girls Clubs. Halloween: Trick-or-Treating for community children in climate-controlled environment,free face painting&costume contest with prizes Holiday Entertainment Stage,co-sponsored by KASI:local performers given the opportunity to entertain throughout the holiday season Holiday Giving Tree: Hosted the tree in coordination with Youth&Shelter Services&KASI,collected gifts to support 25 local families in need. Iowa Public TV Exhibit ISU Hockey Team-Meet&Greet Team- October ISU Engineering Expo ISU Jazz Band ISU Volleyball Team-Meet the team-autograph session(August) It Makes Cents for the Holidays"-Collections of food and pennies for those in our community suffering from hunger Youth marketplace(Papa John Center for Entrepreneurship)Gilbert&Edwards Schools 6th Graders-Experience starting a business, from develop a business plan,borrowing money to selling a product. Malls for Schools-4 year project-Contributed over$100,000 to Story County area schools. Mall Walkers Program-First Tuesday of Each Month Mid-Iowa Community Action Jul -Raising funds for non-profit organizations Monthly Mall Walkers meetings held the first Tuesday morning of each month,with health topics presented by Mary Greeley Medical Center Display of New York City Skyline: In Memoriam"-A special exhibit dedicated to the victims of September 11,2001 October Fun Fest-Petting Zoo,Fire Department Display,Teen Talent Show,Free Carriage Rides Prom Fashion Show(February) Petting Zoo Salute to Educators of Young Children Santa Claus&Holiday Display: Climate controlled environment for kids to visit Santa Satellite Voting Location for Community Scare Away Hunger Food Drive Silent Witness-Display by ACCESS Organization concerning demestic abuse Story Count 4-H Fair Displays of activities&fashion show Jul P�.C,EI A,r'41 i Ur"T: 107 PLANNING & HOUSING 2003 4-H Ribbon Contributor American Business Women Holiday Gift Wrap Center Proceeds to scholarship funds Ames Little League Registration Ames Woodworkers Club-Displaying rojects to promote their membership October Ames Soccer Club Registration Bear to Care Tree-Ames Jaycees Bears donated for needy children Community Fair(October) Venue for community non-profit organizations to distribute information and recruit membership Donations to school events: 10 area schools with after-prom parties,school carnivals,Parents in Education Organizations; Contributions to area citizens with tragedies,American Cancer Society, Diabetes Association, Boys Scouts of America,Boys&Girls Clubs. Easter Bunny&Easter Bunny Display-Climate controlled environment for kids to visit the Easter Bunn Flu Shot Center-Flu Shots given by Homeward of Ames Food Bank Collection Center for Bethesda Food Pant October 4-H Free Petting Zoo October 4-H Visual Arts&Photo displays,hands on activities,Fashion Show Jul Girl Scouts-Overnight event at the mall and display of cookies for sale Halloween: Trick-or-Treating for community children in climate-controlled environment,free face painting&costume contest with prizes Holiday Entertainment Stage,co-sponsored by KASI:local performers given the opportunity to entertain throughout the holiday season Holiday Giving Tree: Hosted the tree in coordination with Youth&Shelter Services&KASI,collected gifts to support 25 local families in need. ISU Athlete Autograph Session ISU Blood Drive ISU Days-Meet the athletic teams Au ust ISU Engineering Expo March ISU Game Coverage via 105.1 FM Channel Q at Mall(September) ISU Men's Basketball Shown on T.V.'s in Common Area(January) ISU Women's Basketball Shown on T.V.'s in Common Area-(January) Kids,Teens&In-Betweens same as 2002 Malls4Schools Monthly Mall Walkers meetings held the first Tuesday morning of each month,with health topics presented by Mary Greeley Medical Center NFL Football Players Autographs-Mike Banks,JJ Moses Donations went to Boys&Girls Club of Ames Operation CD Drop-CD,DVD&Battery Drive donations for armed forces serving our count (Coordinated with 105.1 Channel Q Santa: Indoor,climate-controlled area for local children to visit with Santa from Thanksgiving until Christmas. Story County 4-H Fair,judging&Fashion Show Story County Conservation Fundraiser Story County Election Satellite Voting Booth at the Mall Subbuteo-Table Soccer-Midwest Showdown Tournament X-Box Madness Tournament 2ooa 3-on-3 Basketball Jamboree,with the Ames Park&Recreation Dept.&Ames Convention&Visitors Bureau Ames Baseball/Softball Registration for kids Ames Soccer Club Registration Ames Woodworkers Club Display and Presentation Clothes for Kids Clothing Drive with KASI&KCCQ,collected clothing for kids K-12 Community Entertainment Stage Community Fair(October) Venue for community non-profit organizations to distribute information and recruit membership Donations to school events: 10 area schools with after-prom parties,school carnivals,Parents in Education Organizations; Contributions to area citizens with tragedies,American Cancer Society, Diabetes Association, Boys Scouts of America,Boys&Girls Clubs. Easter Bunny: Indoor,climate-controlled area for local children to visit with the Easter Bunny. Easter Treasure Hunt with free treats for kids Engineering Week Activities at the Mall with ISU Engineering Club Fire Prevention Week Activites,displays thru the Ames Fire Dept. Flu Shots offered through HOMEWARD Girl Scout Cookie Sales at the Mall Halloween: Trick-or-Treating for community children in climate-controlled environment,4-H Petting Zoo Health&Fitness Business Expo,health-releated booths,displays and educational presentations. Holiday Entertainment Stage,co-sponsored by KASI:local performers given the opportunity to entertain throughout the holiday season Hosted Girl Scout Overnighter at the Mall KASI Business Expo Kids,Teens&In-Betweens Day:Softball&Little League Registration Mall Opens early for mall walking every morning Malls4schools program benefitting local schools;$12,100 given each semester($96,800 total) Meet the ISU Teams Autograph Session Monthly Mall Walkers Program part of the Mary Greeley Hospital Wellness Program.Held the first Tuesday morning of each month, with health topics presented by Mary Greeley Medical Center Santa: Indoor,climate-controlled area for local children to visit with Santa from Thanksgiving until Christmas. IStory County 4-H Fair,judging&Fashion Show Two Semi-Annual Community Fairs:local non-profit groups fundraise,share information and promote membership 2005 3-on-3 Basketball Jamboree,with the Ames Park&Recreation Dept.&Ames Convention&Visitors Bureau 4H Exhibits Ames Little League Registration Bike Rodeo with Police Department Community Display Rack-non-profit organizations can display informational materials Community Fair(October) Venue for community non-profit organizations to distribute information and recruit membership Donations to school events: 10 area schools with after-prom parties,school carnivals,Parents in Education Organizations, Contributions to area citizens with tragedies,American Cancer Society, Diabetes Association, Boys Scouts of America,Boys&Girls Clubs. Easter Bunny: Indoor,climate-controlled area for local children to visit with the Easter Bunny. Fire Prevention Week with Indoor and Outdoor Activities at the Mall Gilbert High School Marching Band Fund Raiser-Contribution containers set up in mall. Girl Scout Ovemi hter 2-4-05 Halloween: Trick-or-Treating for community children in climate-controlled environment,free face painting&costume contest with prizes Holiday Entertainment Stage,co-sponsored by KASI:local performers given the opportunity to entertain throughout the holiday season Holiday Giving Tree: Hosted the tree in coordination with Youth&Shelter Services&KASI,collected gifts to support 25 local families in need. ISU Engineering Da KASI Business Expo 2-18-05 Katrina Collection-collected monetary conations for hurricane victims Mall Walkers Memorial Day Kids Coloring Contest Monthly Mall Walkers meetings held the first Tuesday morning of each month,with health topics presented by Mary Greeley Medical Center Red Cross Kiosk-Collections for Katrina Santa: Indoor,climate-controlled area for local children to visit with Santa from Thanksgiving until Christmas. Story County Conservation Canoe Raffle Trick or Treating with Petting Zoo-Free for local children Woodworkers Show Youth Marketplace 2006 3-on-3 Basketball Jamboree,with the Ames Park&Recreation Dept.&Ames Convention&Visitors Bureau ABWA&ASWA(American Business Women's Association&American Society of Women Accountants)Gift Wrap Station: Proceeds support scholarships for local students All American Weekend: North Grand Mall hosted Car Show,BBQ Contest,Beverage Garden&Dance Ames Little League Registration Ames Woodworkers Club Display and Presentation Angel Tree-Requests for items needed/wanted for needy families Donations to school events: 10 area schools with after-prom parties,school carnivals,Parents in Education Organizations; Contributions to area citizens with tragedies,American Cancer Society, Diabetes Association, Boys Scouts of America,Boys&Girls Clubs. Easter Bunny: Indoor,climate-controlled area for local children to visit with the Easter Bunny. Value-priced photos offered. Enqineering Week Activities at the Mall with ISU Engineering Club Fire Prevention Week Activites,displays thru the Ames Fire Dept. Flu Shots offered through HOMEWARD Girl Scout Overnighter Halloween: Trick-or-Treating for community children in climate-controlled environment,free face painting&costume contest with rizes Holiday Entertainment Stage,co-sponsored by KASI:local performers given the opportunity to entertain throughout the holiday season Holiday Giving Tree: Hosted the tree in coordination with Youth&Shelter Services&KASI,collected gifts to support 25 local families in need. Hosted DECA District 2 Leadership Conference Hosted Girl Scout Overnighter at the Mall Mall Opens early for mall walking every morning_ Memorial Day Kids Coloring Contest MICA Food Drive Held in connection with Christmas in Jul Monthly Mall Walkers meetings held the first Tuesday morning of each month,with health topics presented by Mary Greeley Medical Center Mumps Vaccine Clinic North Grand Farmers'Market: WIC Approved,Locally Grown Product Project Family Support Coloring Contest to honor Military Santa: Indoor,climate-controlled area for local children to visit with Santa from Thanksgiving until Christmas. Story Count 4-H Fair,judging&Fashion Show Story County Conservation Canoe Raffle Story County Election Satellite Voting Booth at the Mall Toys for Tots: Offical drop-off site for Marine Toys for Tots Foundation,offered a discount coupon for photos with Santa to anyone donating a toy,collected 600 toys which were distributed to the United Way of Story County in cooperation with the Marines. Two Semi-Annual Community Fairs:local non-profit groups fundraise,share information and promote membership; 12 participated in the fall fair United Was Benefit Days in coordination with Waldenbooks during Fall Fashion Show Youth Marketplace held thru ISU Pa pajohn Center for EntrepreneuShip with Ames and Gilbert Students