HomeMy WebLinkAbout~Master - Memorandum of Understanding Relating with Iowa State University to CYTown Development RESOLUTION NO. 24-268
RESOLUTION APPROVING MEMORANDUM OF UNDERSTANDING RELATING
TO THE CYTOWN DEVELOPMENT
FOR THE CITY OF AMES,IOWA
WHEREAS, On March 12, 2024, the City Council received a staff report regarding the
CY-Town Development Area. In that report,staff described the challenges ISU has faced in raising
sufficient funds to complete needed renovations to the original four buildings at the Iowa State
Center(C.Y. Stephens Auditorium, Fisher Theater, Hilton Coliseum, and the Scheman Building).
An estimated$110 million in deferred maintenance and upgrade projects are awaiting a source of
funding before they can be completed; and,
WHEREAS, ISU began exploring the feasibility of a multi-use arts, culture, and
community district in 2019,with the intent to develop the underutilized parking lots between Jack
Trice Stadium and the Iowa State Center. This exploration resulted in the development concept
called CYTown,which is planned to contain a medical facility, retail and office space, an outdoor
plaza and amphitheater, and residential units. In preparation for the construction of these facilities,
ISU began installing utilities and parking areas in February 2023; and,
WHEREAS,CYTown provides an innovative strategy to finance the needed improvements
for the original four buildings at the Iowa State Center. Through the leases with tenants, ISU will
create a revenue stream that can be used to pay the debt needed to fund improvements at the Iowa
State Center, thereby rejuvenating those original facilities and safeguarding an invaluable arts and
cultural center for the Ames community; and,
WHEREAS, City staff has held numerous discussions with ISU staff over the past several
years to explore how the development concept would work. There is agreement between the City
staff and ISU administration regarding the wisdom of taking advantage of the CYTown
development to generate revenue to address the capital improvement needs identified for the
original four buildings at the Iowa State Center. It is City staff s belief that the Iowa State Center
buildings are an asset to the entire Ames community, towards which no City investment has been
previously made. It supports the City Council's value for Ames to be a fun, vibrant, and healthy
community that attracts and retains people; and,
WHEREAS, It should be emphasized that the CYTown Agreements being presented for
Council approval do not grant an exemption to the University from paying property taxes. If the
Iowa Department of Revenue determined in the future that some portion of CYTown is taxable,
then the agreement indicates that taxes would be collected and the PILOT arrangement becomes
void for that portion of CYTown; and,
WHEREAS, businesses that locate at CYTown would not be granted exemptions from
sales tax simply by being located on University property. However, if the ISU Bookstore or other
entities that meet the tax exemption criteria locate within CYTown, their sales would be tax-
exempt; and,
WHEREAS, staff believes these agreements reflect the most effective approach to ensuring
a stable revenue source for Iowa State Center improvements. The total amounts to be collected as
PILOT (MOU PILOT and Remainder PILOT) from the tenants of CYTown will be equivalent to
the amounts those tenants would pay in a similarly valued private development.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that Memorandum of Understanding relating to the CYTown Development is hereby approved.
ADOPTED THIS 14th day of May, 2024.
Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Rollins
Seconded by: Gartin
Voting aye: Beatty-Hansen, Betcher, Gartin, Junck, Rollins
Voting nay: None Absent: Corrieri
Resolution declared adopted and signed by the Mayor this 14th day of May, 2024.