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HomeMy WebLinkAbout~Master - Directing Staff to Begin the Required Process of Establishing an Urban Renewal Area Coterminous with the Reinvestment District Boundary RESOLUTION NO. 21-107 RESOLUTION DIRECTING STAFF TO BEGIN THE REQUIRED PROCESS OF ESTABLISHING AN URBAN RENEWAL AREA COTERMINOUS WITH THE REINVESTMENT DISTRICT BOUNDARY FOR THE CITY OF AMES,IOWA WHEREAS, in October, representatives from the Ames Economic Development Commission informed City staff that the State Legislature had authorized an additional$100 million for the Iowa Reinvestment District Program; and, WHEREAS, the Reinvestment Program consists of a pre-application, which must be filed between February 22-25, 2021; and, WHEREAS,provisionally approved pre-applications are invited to submit a final application with updated design and financial plans before February 2022; and, WHEREAS, in December 2020, City Council directed staff to prepare a pre-application for this program that focuses on Downtown and Lincoln Way projects, including a Downtown Plaza, Indoor Aquatics Center, and private redevelopment projects; and, WHEREAS, the State's Reinvestment District Program is designed to assist communities in developing transformative projects that will improve the quality of life,create,and enhance unique opportunities, and substantially benefit the community, region, and state; and, WHEREAS, this incentive program is administered by the Iowa Economic Development Authority(IEDA) and awards are based on a competitive process, and it should be understood that this incentive does not come in the form of an upfront grant; and, WHEREAS,only the state portion of the new hotel/motel(5%)and sales taxes(4%)that are actually generated in a City Council-approved Reinvestment District and Urban Renewal Area will be rebated each year over a 20-year period to help fund the project(s); and, WHEREAS,if the City is successful in receiving the incentive,it will have to issue General Obligation (G.O.) Bonds for the total amount needed to fund the aquatics center, minus any donations received,with the expectation that the annual principal and interest payments due for this bond debt would be partially abated with the sales and hotel/motel tax revenues rebated from the state; and, WHEREAS,rather than offer the Reinvestment District incentive revenue to the developer to finance the construction of the mixed-use buildings north of Lincoln Way between Clark Avenue and Kellogg Avenue,the City's goal in seeking Reinvestment District revenue is to generate these state incentive funds to help mitigate the property tax increase for the construction of a new indoor aquatics center for the City; and, WHEREAS,the Reinvestment District Program requires that a proposed district not exceed 75 contiguous acres,and my maximizing the size of the District,the City will be able to capture any new state hotel/motel and sales tax revenues,up to the initial amount awarded by the IEDA from any new projects that are identified in the City application; and, WHEREAS, the five projects included in the City's pre-application are as follows: l. Indoor Aquatics Center 2. Downtown Plaza 3. Onondaga Development(Burnett and 5"') 4. Lincoln Way Mixed-Use Development 5. Kellogg Hotel (East of Kellogg) NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that staff is hereby directed to begin the process of establishing an Urban Renewal Area coterminous with the Reinvestment District Boundary. ADOPTED THIS 23rd day of February, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 23rd day of February, 2021.