Loading...
HomeMy WebLinkAbout~Master - Approving Change of Use Designation for the City-Owned Properties Located at 519,525, & 601 Sixth Street RESOLUTION NO. 21-119 RESOLUTION APPROVING THE CHANGE OF USE DESIGNATION FOR THE CITY- OWNED PROPERTIES LOCATED AT 519, 525, & 601 SIXTH STREET FOR THE CITY OF AMES,IOWA WHEREAS, as part of the City's 2014-15 Community Development Block Grant(CDBG) Program,lots located at 519,525,and 601 Sixth Street(former Ames Community Preschool Center toddler house and playground)were acquired under the Acquisition/Reuse for Affordable Housing Activity; and, WHEREAS, the objective of this activity was to increase the availability of affordable housing through the purchase of infill lots (vacant or properties needing to be demolished and cleared), the purchase of foreclosed or blighted properties for rehabilitation, or the purchase of single-family or multi-family units that can be rehabilitated for reuse into either affordable rental or owner-occupied units for a household at 80% or less of the Ames Metropolitan Statistical Area median income limits; and, WHEREAS, after acquisition of the site,the City initiated a Request for Proposals(RFP)in 2015 to redevelop the site, but did not receive any qualified applications; and, WHEREAS,subsequently,the City acquired the 10+acre parcel of land at 321 State Avenue (former Old Ames Middle School) in December 2015 for the purpose of developing affordable housing; and, WHEREAS,the City considered pairing the Sixth Street properties with development of 321 State Avenue to potentially attract additional developer interest, and this attempt was unsuccessful as well; and, WHEREAS, in 2019,the City Council directed staff to become the developer of 321 State Avenue and authorized staff to pursue selling the Sixth Street properties and use the proceeds to develop 321 State Avenue to further the goal of expanding availability of affordable housing in the community; and, WHEREAS, because CDBG funds were used to purchase the Sixth Street properties, the Department of Housing and Urban Development(HUD)regulations require the City to notify the public of its intentions to propose a Change of Use Designation for these lots; and, WHEREAS,the lots would no longer be used as affordable housing for low-and moderate- income households,and the removal of the affordable housing designation related to CDBG funding would allow the City to sell the properties at market value and return the funds to HUD; a recent appraisal valued the lots at $198,000; and, WHEREAS, upon receipt of the sale proceeds,HUD would then reallocate all or a portion of the funds back to the City of Ames for new programming; and, WHEREAS, the City's intention is to use the reprogrammed funds to complete the public infrastructure improvements to develop lots for mixed-income affordable housing units in the Baker Subdivision, at 321 State Avenue; and, WHEREAS, it is anticipated that 14 of the 26 lots in the Baker Subdivision will be designated for affordable housing for low-income households at 80% or less of the Ames Metropolitan Statistical Area Income Limits (AMSA), and one lot has been set aside for 37 Low- Income Housing Tax Credit(LIHTC)rental units,of which 32 will be designated for households at 60% or less of the AMSA; and, WHEREAS,the regulations also require that the request to Change the Use Designation be available for a 30-day public comment period,which occurred January 29, 2021,through March 1, 2021, and during this time one comment was received voicing opposition to the Change of Use Designation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Change of Use Designation for the City-owned properties located at 519, 525, &601 Sixth Street is hereby approved. ADOPTED THIS 9`' day of March, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Corrier Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 9t1i day of March, 2021.