HomeMy WebLinkAboutA041 - Council Action Form dated April 23, 2024 ITEM#: 41
DATE: 04-23-24
DEPT: ELEC
COUNCIL ACTION FORM
SUBJECT:
RESOLUTION AMENDING RESTRICTIVE COVENANTS FOR BAKER
SUBDIVISION
BACKGROUND:
The Baker Subdivision, located at 321 State Ave, was developed by the City to create a mixed-income
housing subdivision that will address affordable housing needs of low- and- moderate income
households and market rate housing through the development of a variety of housing types.
As a one-time experiment to test the impact of geothermal heating and cooling, Electric Services
installed geothermal wells on all 26 single-family lots to provide an efficient heating and cooling
system with lower initial costs to homes in the subdivision. These wells will be connected to the home
they serve during the home's construction.
Geothermal heating and cooling is an energy-efficient and cost-effective method of conditioning a
home. Electric Services will own and operate the wells, for a monthly fixed cost charged to users to
support the initial and ongoing costs of building and maintaining the geothermal wells.
In December 2021, Council authorized restrictive covenants for the neighborhood. The restrictive
covenants require that "homes must utilize and connect to the geothermal system installed within the
reserved public utility easements located in the rear yards of each Lot."
The amended language sets an end date to the obligation of homeowners "to utilize and connect to the
geothermal systems" in 2034.
After that date, homeowners who replace their home's heating and cooling system may continue to
utilize the geothermal wells that serve their home or choose another heating and cooling system.
Electric Services will continue to provide geothermal service to the 26 single-family lots even after
homeowners are no longer obligated to utilize the systems. Electric Services will provide geothermal for
at least 50 years, or when a homeowner opts out.
Setting the ability for homeowners to choose another heating and cooling system after 2034 still
ensures that the first homes built in the Baker Subdivision will connect and utilize the geothermal
wells installed in the subdivision. After a home is connected to the geothermal wells, it is likely
that subsequent homeowners in the future will continue to use the geothermal wells.
Currently, upfront replacement costs of a geothermal system (not counting the wells) is very similar to
the upfront costs of an alternative heating system. However, that cost differential may change in the
future. Future homeowners may want greater flexibility in choosing a replacement system, especially if
future installation costs for air-source heat pumps drops dramatically and the efficiency gap between
air-source heat pumps and geothermal continues to narrow.
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ALTERNATIVES:
1. Approve the attached modified restrictive covenants and regulations for single-family homes in
the Baker Subdivision(321 State Avenue).
2. Do not approve the proposed restrictive covenants and regulations and refer back to staff for
additional information.
CITY MANAGER'S RECOMMENDED ACTION:
The amendment to the restrictive covenants will ensure that all new homes in the Baker Subdivision
will connect initially to the city's geothermal wells when homes are constructed and allow for future
homeowners to choose another heating and cooling system after a period of ten years. Further, this
amendment offers peace of mind to the property owners that the wells will be maintained for at least 50
years. Therefore, it is the recommendation of the City Manager that the City Council approved
Alternative#1.
ATTACHMENT(S):
Amendment to Restrictive Covenants (Baker Subdivision).pdf
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—SPACE ABOVE RESERVED FOR OFFICIAL USE
Return document to: City Clerk,515 Clark Avenue—P.O.Box 811,Ames IA 50010
Document prepared by: Mark O.Lambert,City ofAmes Legal Department,515 C1arkAve.,Ames,IA 50010—515-239-5146
FIRST AMENDMENT TO RESTRICTIVE COVENANTS FOR BAKER
SUBDIVISION,AMES, IOWA
WHEREAS, the City of Ames, Iowa, (hereinafter "City") adopted certain Restrictive
Covenants, filed January 6, 2022, as Instrument No. 2022-00200; and
WHEREAS, the City continues to be the titleholder and owner of multiple lots in Baker
Subdivision and retained the right to amend the Restrictive Covenants until such time as the City
no longer owns a Lot(as that term is defined in the Restrictive Covenants) within the subdivision;
and
WHEREAS,the City has determined that the Restrictive Covenants should be amended.
NOW THEREFORE,the City amends the Restrictive Covenants as follows:
I. Paragraph 7(h) is deleted therefrom and substituted Paragraph 7(h) is inserted in lieu
thereof:
All homes must utilize and connect to the geothermal wells installed within the reserved
public utility easements located in the rear yards of each Lot. The affirmative
requirement imposed herein to utilize and connect to the geothermal wells shall expire
on July 1, 2034.
2. Paragraph 12 is amended by adding the following sentence to the paragraph:
Notwithstanding the foregoing, at such time as the City no longer owns a Lot within
the subdivision,the owners of Lots may not amend, diminish, delete or supplement the
requirement for the homes to utilize and connect to the geothermal wells without the
written consent of the City.
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Passed and approved on , 2024,by Resolution No. 24-
adopted by the City Council of the City of Ames, Iowa.
CITY OF AMES,IOWA
By:
John A. Haila,Mayor
Attest:
Renee Hall,City Clerk
STATE OF IOWA, COUNTY OF STORY, SS.:
This instrument was acknowledged before me on ,2024,by John A. Haila and
Renee Hall,as Mayor and City Clerk,respectively, of the City of Ames,Iowa.
NOTARY PUBLIC
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