HomeMy WebLinkAbout~Master - November 22, 2022, Regular Meeting of the Ames City Council1
MINUTES OF THE REGULAR MEETING OF THE AMES CITY COUNCIL
AMES, IOWA NOVEMBER 22, 2022
The regular meeting of the Ames City Council was called to order by Mayor John Haila at 6:00
p.m. on the 22nd day of November, 2022, in the City Council Chambers in City Hall, 515 Clark
Avenue, pursuant to law. Present were Council Members Bronwyn Beatty-Hansen, Gloria Betcher,
Amber Corrieri, Tim Gartin, Rachel Junck, and Council Member Anita Rollins was brought in
telephonically. Ex officio Member Bryce Garman was absent.
CONSENT AGENDA: Moved by Betcher, seconded by Junck, to approve the consent agenda.
1. Motion approving payment of claims
2. Motion approving Minutes of Regular Meeting on November 8, 2022 and Special Meeting on
November 18, 2022
3. Motion approving Change Orders for period ending November 15, 2022
4. Motion approving new 12-Month Special Class C Liquor Retail Alcohol License – Mongolian
Buffet – 1620 South Kellogg Avenue
5. Motion approving the renewal of the following Beer Permits, Wine Permits, and Liquor
Licenses:
a. Class C Liquor License with Outdoor Service, Sunday Sales, and Catering Privilege - The
Café, L.C., 2616 Northridge Parkway
b. Class C Liquor License with Outdoor Service and Sunday Sales - Aunt Maude’s, 543-547
Main Street
c. Class C Liquor License with Outdoor Service and Sunday Sales - Thumbs Bar, 2816 West
Street
d. Class C Liquor License with Outdoor Service and Sunday Sales - Tip Top Lounge, 201 E
Lincoln Way Pending Dram Shop Insurance
6. Body-Worn Cameras for Police Department
a. RESOLUTION NO. 22-592 approving single source purchase and award for the
replacement of the WatchGuard Body Worn Cameras, includes equipment, system setup,
configuration, testing and training, replacement of the server and service agreement for
five years for the Police Department
b. RESOLUTION NO. 22-593 approving five-year award of contract with WatchGuard
Vista/V300, Motorola Solutions, Inc., Chicago, Illinois, for the Police Department’s
Watchguard Body-Worn Cameras, in the amount not to exceed $126,822.00 equipment,
server, testing and training, in the amount not to exceed $190,382
7. RESOLUTION NO. 22-594 waiving formal bidding requirements and awarding a three-year
Microsoft Enterprise Agreement purchase to Insight Public Sector Inc., Tempe, Arizona in
the amount not to exceed $158,820.46
8. RESOLUTION NO. 22-595 authorizing purchase of Financial Software Hosting and
Maintenance from CentralSquare Company, Lake Mary, Florida
9. RESOLUTION NO. 22-596 approving FY 2021/22 Annual Street Financial Report
10. Annual 2022 Urban Renewal Report:
a. RESOLUTION NO. 22-597 approving 2022 Urban Renewal Report
b. RESOLUTION NO. 22-598 approving certification of TIF Debt for Campustown and
annual appropriation of Kingland TIF Rebate
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c. RESOLUTION NO. 22-599 approving certification of TIF Debt and appropriating
payment of a rebate of incremental taxes for the Barilla TIF District
11. RESOLUTION NO. 22-600 approving preliminary plans and specifications for North Sunset
Ridge Sanitary Sewer; setting December 14, 2022, as bid due date and December 20, 2022,
as date of public hearing
12. RESOLUTION NO. 22-601 approving plans and specifications for Furman Aquatic Center
Pool Basin Painting Project; setting December 21, 2022, as bid due date and January 10, 2023,
as date of public hearing
13. RESOLUTION NO. 22-602 approving Contract and Bond for 2021/22 Sanitary Sewer
Rehabilitation (Ames High School and Veenker Golf)
14. RESOLUTION NO. 22-603 approving final plat completion and releasing financial security
for Sunset Ridge 8th Addition
15. RESOLUTION NO. 22-604 approving partial completion and reducing financial security for
Scenic Valley 5th Addition
16. RESOLUTION NO. 22-605 approving partial completion and reducing financial security for
Hayden’s Crossing 2nd Addition
17. RESOLUTION NO. 22-606 approving partial completion and reducing financial security for
Scenic Valley 6th Addition
Roll Call Vote: 6-0. Motion/Resolutions declared carried/adopted, signed by the Mayor, and
hereby made a portion of these Minutes.
PUBLIC FORUM: Mayor Haila opened the Public Forum.
David Martin, 339 Hickory Drive, Ames, thanked the City Council for their work on the Climate
Action Plan, commending Staff for excellent work addressing complex questions.
Richard Deyo, 505 8th Street, #2, Ames, expressed concern about the Climate Action Plan.
Grant Olson, 3812 Ontario Street, Ames, shared support for increasing density in Ames rather than
expanding outward.
The Mayor and closed the Public Forum when no one came forward to speak.
LIQUOR LICENSE OUTLAWS: City Attorney Mark Lambert stated that a Council Member
asked if this matter would be considered quasi-judicial, meaning that the City Council would act
more like a judge or court than a legislative body. After reviewing Iowa Supreme Court precedent,
City Attorney Lambert advised the City Council that the matter would indeed be quasi-judicial,
meaning that they should not engage in ex parte communication, talking to representatives of only
one side of the matter. City Attorney Lambert explained he was aware ex parte communication
had occurred prior to the advice being issued on Sunday, November 20th, 2022. Therefore, he
entered into the record that ex parte communication occurred in order to cure it for the purposes
of Iowa law.
Chief of Police Geoff Huff discussed the staff report recommending against renewal of the liquor
license for Outlaws, 2522 Chamberlain Street. The Police Department conducts compliance checks
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on establishments that hold liquor licenses in the City of Ames, which are completed by taking an
underage person to liquor licenses establishments who then attempts to purchase alcohol. A
business successfully passes the compliance check if the employee asks for identification and
correctly refuses the purchase.
The Police Department conducted one compliance check at Outlaws on March 25th, 2021. An
employee of Outlaws sold alcohol to an underage person during the check and was cited. The
Police Department conducted a follow-up compliance check on October 20th, 2022, when an
employee again sold alcohol to a minor. Chief Huff explained that this was the second violation
within two years and Iowa Code 123.50(3)(b) prescribes a 30-day suspension and $1,500 fine.
This suspension and fine will be imposed on the establishment by the Iowa Alcoholic Beverages
Division (ABD) regardless of the action taken by the City Council.
Chief Huff noted that beyond the failed compliance checks, in the previous 12 months, Ames
officers have cited 15 underage individuals for being on-premises. Of those 15, officers verified
that six individuals used faked IDs to get into the bar. Two other individuals stated they were let
in because they knew staff members of the bar. Officers were unable to determine how the
remaining underage individuals entered the bar.
The Police Department also received a complaint from an ex-employee highlighting the practice
of the establishment to let certain minors in. Chief Huff explained that meeting minutes were
received from a staff meeting that stated, “No minors let in unless I am asked.” This instruction
came from a manager of the business. The Police Department spoke with that manager, who
admitted the notes were accurate. However, the manager’s explanation was that if a minor tried to
get in, staff would alert him, and he would tell the minor they could not enter. The Police
Department does not believe this explanation is consistent with what the written instruction says.
Staff met with the license holder and his attorney on November 9th, 2022, at the request of the
license holder. At that meeting, the license holder said when they found out about the
correspondence in December 2021 or January 2022, the manager was reassigned to a different
liquor establishment owned by the same license holder. The license holder said they hired a new
manager and the problem was corrected. However, Chief Huff stated that it was clear minors were
found on premise after the change in management, though some were in the possession of a fake
ID.
Chief Huff further explained that the Police Department acquired text messages from a former
Outlaws employee that suggest minors could be granted entry with the use of a “code word” at the
door. At the November 9th, 2022, meeting between the license holder and City staff, the license
holder theorized that the code words could be for VIP status. Chief Huff noted that there is no
mention of VIP in any of the text messages City staff obtained, reading several examples of the
texts.
Chief Huff clarified that if the City Council denies the requested license renewal, the denial can
be appealed, first to the ABD, then to an Administrative Law Judge, then the Director of ABD,
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and then District Court. Filing an appeal with ABD would place a stay on the denial, and the
establishment would be allowed to continue to operate until the appeal process is complete. If the
appeal(s) are not successful, alcohol may not be sold on the premises for one year, or until a new
licensee applies for and is granted a new liquor license.
Chief Huff surveyed the three options before the City Council: denying the application for a 12-
month renewal, approving the 12-month renewal, or denying the 12-month renewal and
entertaining a future application for an 8-month renewal. Regardless, the establishment will still
be subject to the ABD penalty for failing two compliance checks in two years. Chief Huff reiterated
his recommendation to deny the renewal of the 12-month liquor license, citing the apparent
collusion to allow entry to minors as the most troubling piece of evidence.
Council Member Corrieri inquired about how this case differed from AJ’s, whose license renewal
City Council recently approved despite a comparable 15 citations in 12 months. Chief Huff noted
that the overall picture for Outlaws was quite different given two failed compliance checks and
evidence of collusion to allow entry to minors. Chief Huff also clarified for Council Member
Corrieri that it appeared that more than one employee was involved in the collusion, and City Staff
did not know how long this practice had been occurring.
Chief Huff explained for Council Member Junck that compliance checks are usually conducted
along with ABD because they are extensive operations. The Police Department follows up after
failed compliance checks to see if the problem has been corrected when Department staffing
allows. Chief Huff clarified for Council Member Gartin that two of the 15 individuals cited
admitted that they gained entry through staff permission, six had fake IDs, and the remainder
gained entry through unknown means. In response to questions from Council Member Gartin about
consistency and precedent, Chief Huff stated that in his 28 years in the profession, he has never
seen evidence of a bar’s employees colluding to allow access to minors, and that aspect set this
case apart from other cases with similar numbers of citations for minors or even failed compliance
checks.
The Mayor opened Public Input.
Andrew White, 3315 146th Circle, Urbandale, identified himself as the license holder of Outlaws.
Mr. White expressed that he was blindsided by the facts that came to his attention for the first time
in July 2022, and he would not make excuses for the unacceptable behavior. Mr. White stated that
the employee who sent certain texts in the record, Kasey Walters, had been trustworthy and reliable
for ten years. Upon confronting Mr. Walters in July 2022, Mr. White indicated that Mr. Walters
admitted to sending the messages in question. Mr. White considered firing Mr. Walters, but chose
to give him a second chance by transferring him to a different bar. Mr. White expressed confidence
in Mr. Walter’s remorse and change of heart. Mr. White stated that he takes responsibility because
Outlaws is his liquor license; he did not know what was happening, but took steps to address it as
soon as it came to his attention. He expressed his belief that it is a correctable problem, and
identified several steps taken to address it, including requiring employees to report any illegal
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activity they see or are asked to participate in directly to him. Mr. White asked the City Council to
give Outlaws a second chance to prove that the issue has been corrected.
Brian Torresi, 120 South 16th Street, Ames, spoke in favor of allowing Outlaws an 8-month liquor
license, arguing that it was common sense to give a second chance to a business that has operated
for 18 years with no issues. Mr. Torresi stated that the license holder expressed contrition and
concern. Mr. Torresi believed that Ames believes in letting people fix their mistakes. Mr. Torresi
clarified that he was not making a legal argument; rather, as a citizen, he asked City Council to
consider an 8-month liquor license to let Outlaws prove it had resolved the problem.
Michael Schwab, 129 Main Street, Ames, identified himself as the ex-employee who provided the
texts to the Police Department. Mr. Schwab stated that the collusion to allow entry to minors had
been occurring throughout the two years that he worked for Outlaws. He stated that Mr. White was
informed of the situation in February 2022 and in response Mr. Schwab was banned from the
premises unless he agreed to drop the matter. Mr. Schwab noted that the incentive was to let minors
into the bar in order to get tips. He stated that Mr. Walters directed the doormen to let everyone in
before 11 p.m., and when Mr. Schwab refused to allow entry to minors, he was scheduled work
only after 11 p.m. Mr. Schwab also stated his belief that moving Mr. Walters to a different bar
spreads the problem further rather than solving it. Mr. Schwab clarified for Council Member Gartin
that he called Mr. White several times to inform him of the situation prior to July 2022, when Mr.
White stated he first learned about it, but did not get a response until he indicated he would bring
the matter to the attention of the City Council.
Mr. White came forward and stated that he received a phone call from Mr. Schwab on February
16th, 2022, but he believed the subject to be an isolated incident that was fully resolved. Mr. White
stated he had no further communication with Mr. Schwab until June 2022, when Mr. Schwab’s
lawyer notified him of intent to sue for wrongful termination, and July 2022 was the first time Mr.
White was made aware of all of the texts. Mr. White expressed his belief that Mr. Schwab extorted
him by requesting to be unbanned from his bars when he shared the texts and stated his intention
to take the matter to the City Council. Council Member Junck inquired about the changes Mr.
White made since either the first or second failed compliance check. Mr. White stated that he had
implemented a robust front door policy. This involved allowing only two people to work the door,
requiring those individuals to attend a weekly meeting with management, offering these positions
a pay raise, and instituting bonuses for no minors cited on the premises in a month and penalties
for more than one minor cited. He also added a provision to the employee handbook that requires
all employees to report if they witness or are asked to perform any illegal activity, and a stronger
code of conduct for managers is being drafted. Additionally, the district manager would be doing
random stings, a new policy of 100% carding at any age has been implemented, and managers
would spend 70% of their time at the door. Mr. White clarified for Council Member Betcher that
the most recent failed compliance check did occur after all of the changes described had been
implemented, and the doorman was fired immediately.
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Kasey Walters, 1517 Grand Avenue, Ames, identified himself as the manager who sent the texts,
admitted it was wrong and apologized for the behavior. He clarified for Council Member Gartin
that it was his own idea to attend the meeting and take responsibility, and that Mr. White even
advised against it.
Mr. Schwab replied, stating that there were hundreds of instances of minors being allowed entry
to Outlaws. He clarified that he confiscated two fake IDs from the underage individual on the
December 17th, 2021, and was still overruled.
Mr. Torresi commented in response that individuals should be allowed the opportunity to fix
errors. He noted that two people have admitted that something went wrong and taken
responsibility. Mr. Torresi asked the City Council to give an 18-year liquor license holding
establishment a second chance to prove that the situation is resolved.
The Mayor closed Public Input.
Chief Huff clarified for Council Member Rollins the notification process for different kinds of
citations. When a minor is cited for being on the premises, it is a very public and obvious action.
Chief Huff stated that it would be surprising if staff was unaware of the citations, and it should be
the responsibility of the establishment to track them. He explained that when an establishment fails
a compliance check, the license holder is notified directly by ABD. Council Member Gartin stated
that management should know what is happening at their establishments, and expressed concern
that renewing this liquor license may incentivize other license holders to hide behind ignorance.
Chief Huff clarified for Council Member Corrieri that the ABD discontinued the 6-month license
option, so the available options are either 8-month or 12-month.
Discussing the situation overall, Council Member Gartin stated his belief that an 18-year track
record cuts the other way, arguing that after 18 years the establishment should know better. He
stated that the primary role of city government is to keep citizens safe, and addressing underage
drinking in Ames is an important part of that mission. Council Member Corrieri expressed
difficulty in seeing the consistency between denying this license renewal and the license that was
renewed two weeks before that also had 15 citations. Council Member Junck stated her belief that
Outlaws’ failure of two compliance checks was a key difference. Council Member Beatty-Hansen
agreed, stating that compliance checks are a lower bar than citations of minors, and Outlaws failed
the lower bar twice. She further commented that the City Council denied a liquor license last week
that defended its errors on the basis of ignorance much like Mr. White did, and consistency with
that precedent would indicate denying this license as well. Council Member Rollins appreciated
the steps that were being taken but stated that Mr. White was still accountable for the wrongs.
Council Member Betcher also expressed appreciation for the changes being implemented. Council
Member Gartin acknowledged that Chief Huff consistently goes out of his way to help keep
businesses in operation, so the recommendation does not come lightly.
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Moved by Gartin, seconded by Beatty-Hansen, to deny renewal of Class C Liquor License with
Outdoor Service and Sunday Sales for Outlaws, 2522 Chamberlain Street.
Vote on Motion: 5-1. Voting Aye: Beatty-Hansen, Betcher, Gartin, Junck, Rollins. Voting Nay:
Corrieri. Motion declared carried.
AMES URBAN FRINGE PLAN UPDATE: Planning and Housing Director Kelly Diekmann
presented the response to the set of changes the Story County Board of Supervisors (BoS) proposed
to the Ames Urban Fringe Plan Update. Some of the BoS proposed changes did not meet priorities
identified by the City for a cooperative fringe plan, so the City Council directed staff to prepare a
draft that incorporated the BoS proposed changes that could be balanced with City priorities. City
staff relied on the Ames Plan 2040 for this task. Director Diekmann stated that the most significant
policy issues for the City of Ames were the planned efficient growth for the community and
compatibility of rural land use activities with future urban development. He also noted that both
Gilbert and Story County joined Ames in extending the current 28E agreement until January 1st,
2023.
With respect to the Urban Reserve Overlay, Story County requested changes related to no specific
limitations on conditional uses in either the Urban Reserve or the Growth Areas and to limit
annexation within the Urban Reserve Overlay or to have additional language regarding annexation
ability within the Overlay. Gilbert also shared in June 2022 desire for sole annexation authority in
the Urban Reserve areas north of 190th Street in Ames. Director Diekmann explained that staff did
not recommend supporting these requested changes that limited annexation ability of the City as
designed within Ames Plan 2040. The primary benefit of entering into a cooperative agreement is
the willingness of the County to limit certain uses that would detract from future urbanization.
However, staff recommended the following changes:
• Establish 180th Street as an agreed upon annexation boundary between Gilbert and Ames, this
would be part of a 28E agreement. Moving this boundary up from 190th can be justified since
the Plan 2040 does not envision the City growing north of 180th
• Propose limitations on conditional uses related primarily to outdoor uses (e.g. surface mineral
extraction, wind energy, salvage, camping, power plant), but remove limitations on primarily
indoor uses that that could otherwise be integrated into urban development. This assumes
policies for reviewing future compatibility would apply
• Include language stating clearly that involuntary annexation would not apply to Rural
Residential designation or to properties with the Urban Reserve Overlay. This language makes
it clear the City would not pursue annexation without a voluntary annexation request, but it
would permit annexation with a voluntary annexation request and use of the 80/20
nonconsenting allowance to avoid islands and create uniform boundaries
• Agree to add language framing the appropriateness of Urban Reserve Overlay annexations
based upon need for land for development and its ability to be served consistent with Plan
2040. This language is intended to follow the current policies of Plan 2040 and provide
assurance within the Fringe Plan that annexation would not be used to avoid County
regulations or for unsupportable development without ability to utilize urban infrastructure
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• Allow for land divisions consistent with the underlying land use base designation rather than
be more restrictive in the Overlay. As requested by the County, this ensures equal treatment of
agriculture and farm service properties to split off existing homes from farmland that do not
create new development parcels. However, it does not allow for creating additional
development lots, such as through residential parcel subdivisions
Regarding map changes, Director Diekmann noted that these issues were of less concern regarding
City priorities. Staff proposed the following changes:
• Designate Meadow Glen as Existing Rural Residential with the Urban Reserve Overlay
• Remove Urban Reserve Overlay for three properties: 1) West of George Washington Carver
Avenue and land north of 190th Street west of the Railroad tracks, 2) Properties south of Worle
Creek, and 3) Properties south of 265th Street southeast of Ames (outside of two miles). These
changes respond to the BoS request to reduce the total area in the Urban Reserve Overlay
• Amend Rural Residential Expansion Area language for the proposed amendment process and
remove the area limitation. The key clarification is that no Rural Residential Expansion
amendment (a new rural subdivision) is allowed within the Growth Area or Urban Reserve
Overlay area. This policy was already included in the draft, but the Supervisors urged
clarification of this intent. The language maintains that no area is mapped for Rural Residential
Expansion at this time, and that an amendment is needed to create new rural subdivision areas
• Remove the limitation on number of amendments in a year. This change is in response to a
suggestion by the BoS
• Add planned future I-35 interchanges as identified in Plan 2040 to the land use map
• Clarify language for Growth Areas that rezoning of properties will not occur in the County,
only within the City for development purposes
For the “Other” category, Director Diekmann noted that the requested changes were of low
consequence to the City. Staff proposed the following changes:
• Draft 28E agreement for approval after plan approval for any cooperators (Story County and
or Gilbert). The Agreement would be for five years with one automatic five year renewal unless
notified by one cooperator not to extend it. This would mean the agreement would have a
maximum life of 10 years. This clarified next steps to implement the final Fringe Plan.
Implementation and definitions for this step are part of the draft Plan. A formal agreement
would utilize the policies of the Plan and layout specific procedures as needed
• Include language in the 28E agreement regarding the independent authority of each cooperator
related to support for individual annexation recommendations. Additionally, include that Story
County will provide to a city available natural resource inventories at the time of notification
of a pending annexation to allow for a city. All cooperating parties would agree to act in
accordance with the Plan, but the statement would recognize independent authority of each
cooperator regarding their statutory authorities. All of this language was requested to be
included by the Supervisors
• Allows for property line adjustments for non-dwelling properties with no new developable
areas. It is intended to allow for parcel boundary changes similar to the residential dwelling
allowance to separate a use or structure from other agricultural land. Staff did not support this
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proposed change by the Supervisors as a standalone change, but it could be supported with the
consideration of the County to limit conditional uses and control expansion of non-conforming
uses. The intent is not to encourage these uses, but to accommodate reasonable changes to
property boundaries, especially for existing facilities
In response to questions from Mayor Haila, Director Diekmann clarified that Meadow Glen is an
existing Rural Residential neighborhood. In response to concerns from the BoS, staff proposed a
text change so that properties in the Urban Reserve Overlay would be treated the same as
agriculture/farm service properties with respect to allowing an existing dwelling to be split away
from a larger parcel and remit that remainder as non-buildable lots. The City would reserve the
right to do an 80/20 annexation if territory beyond Meadow Glen requested to be annexed. The
Flummerfelt property is an example of such an area beyond Meadow Glen, but it would not have
enough land on its own to meet the 80/20 criteria.
Council Member Gartin expressed continued concern that the interests of the BoS were still too
divergent from City interests. He noted that cooperation would be ideal, but ultimately a 28E
agreement may not work out, and many cities function well without such agreements. Council
Member Beatty-Hansen expressed willingness to move on without a 28E plan if the current round
of negotiations does not work out.
Director Diekmann clarified for Mayor Haila that the City operates in Boone County without a
fringe plan, so annexation is only limited by state law. The primary benefit to the City of a 28E
agreement would be Story County regulating conditional uses near the City. For the County, a 28E
agreement helps establish predictability and addresses natural resource protections. Director
Diekmann noted that if the City Council approved the draft changes, the recommendation would
be sent on to the BoS and Gilbert for review; if both parties agree to the changes, a document could
be finalized as early as January 2023 for Public Hearing, Planning and Zoning Commission review,
and ultimately a return to the City Council as early as March 2023.
Mayor Haila opened the Public Input.
Lauris Olson, 1705 Buchanan Drive, Ames, expressed support for having a 28E agreement and
urged the City Council to remember their constituents.
Phil Iasevoli, 3108 South Dakota Avenue, Ames, stated opposition to a 28E agreement, observing
that the City has only conceded three out of 14 conditional uses the BoS requested dropped; the
reduction of acres from the Urban Reserve overlay is miniscule; the BoS represents rural residents;
and other fringe plans in Iowa are much less restrictive.
Liesel Danielson, 2981 South Dakota Avenue, Ames, noted opposition to a 28E agreement that
includes conditional use limits, stating that the changes staff proposed would put existing
businesses in the Urban Fringe into the category of legal nonconforming, meaning they cannot
expand or rebuild if destroyed past 60%. She defended local businesses and asked the City Council
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to consider their interests, observing that southwest growth is unlikely because most of the adjacent
land is owned by Iowa State University, and the remaining land is environmentally sensitive.
Kim Christensen, 2985 South Dakota Avenue, Ames, shared support for a 28E agreement only if
it could be a win for everyone, observing that many people affected by the Urban Fringe plan and
conditional uses have resided there for a long time. He encouraged the City Council to go beyond
merely considering what it is good for Ames and consider benefits across the board.
Mayor Haila closed the Public Input.
Director Diekmann clarified for Mayor Haila that nonconforming categorization would not
typically allow for expansion, but the indoor use categories were struck from the list, so those
businesses would not be classified as nonconforming. He further explained that the City has no
standing in the conditional use permit process, which is why its inclusion in the 28E agreement is
important for City interests. Council Member Gartin observed that a speaker in the Public Input
discussed the BoS as the representatives of rural residents, and Council Member Gartin added on
that the BoS also represents Ames.
Moved by Gartin, seconded by Corrieri, to proceed as recommended by staff.
Vote on Motion: 6-0. Motion declared carried unanimously.
The meeting recessed at 8:06 p.m. and resumed at 8:14 p.m.
LOW-INCOME HOUSING TAX CREDIT (LIHTC) PROPOSAL FOR BAKER
SUBDIVISION: Housing Coordinator Vanessa Baker-Latimer provided an update on the Baker
Subdivision. At its July 26th, 2022, meeting, the City Council directed staff to prepare a new
Request for Proposals (RFP) for a 4% LIHTC housing project located at 321 State Avenue due to
the expiration of the developer’s agreement with Prairie Fire Corporation, which involved a 9%
LIHTC option. The noncompetitive 4% LIHTC option was chosen in hopes of facilitating quicker
site development.
Coordinator Baker-Latimer surveyed the significant components of the RFP:
• Applying for the Iowa Finance Authority’s 4% LIHTC program rather than the 9%
• Development intensity between 30-50 dwelling units
• Supporting lower income affordable housing units developed to include a minimum of 10% to
be set aside for Section 8 Housing Choice Voucher participants
• Entering into a developer’s agreement with the City of Ames, to prepare a 4% LIHTC
application which includes the terms for the developer’s construction and on-site management
of the project, the City’s participation in the project, transfer of land for the development of
the project, and anticipated start date of the construction. In no case shall the start date be
greater than 120 days after the award of the tax credits
• Completing an agreement with the City of Ames within 45 days from the date of acceptance
of the proposal by the City Council. The application shall be submitted to the Iowa Finance
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Authority (IFA) on or about 30-45 days after a developer’s agreement has been signed with
the City of Ames
• Use of geothermal
• Sale of the city owned site to the developer (Lot 27) at a reduced or no cost
• Additional scoring points for an increased percentage of Affordable Housing Units for either
Section 8 Housing Choice Voucher participants or households with income at 50% or less of
the Ames Metropolitan Statistical Area Income Limits (10pts)
• Use of City HOME funds in an amount up to $1.8 million
The proposals submittal deadline was September 13th, 2022. The City received one proposal in
response to the RFP from The Commonwealth Companies (Commonwealth).
Coordinator Baker-Latimer stated that Commonwealth proposed 36 units, including 14 four-
bedroom townhome units; 10 three-bedroom townhome units; 8 two-bedroom units; and 4 one-
bedroom units. The units are planned to be affordable for 30 years for 60% AMI. The assumption
in the pro forma is for the maximum rental amounts allowed under the LIHTC program. The
proposed timeline of the developer targeted completion of the project and lease up by the winter
2024/25. The proposal includes the site granted by the City at zero cost, as well as a contribution
of $1.8 million from the HOME funds allocated to the City.
According to Coordinator Baker-Latimer, an evaluation committee comprised of staff members
from Planning and Housing, Legal, Public Works, Electric Services, and the Purchasing Division
assessed the responsiveness of the proposal in relationship to the RFP objectives and other
submittal requirements. After an on-site interview on October 14th, 2022, the committee felt that
the proposal from Commonwealth met the minimum requirements of the RFP, but had reservations
about the overall timeline length, details on the assumed rent levels, financing, market support for
14 four-bedroom units, architectural detailing, and integration of geothermal. Staff believed the
project could be improved with adjustments to the mix of units and overall design. As a result,
staff approached Commonwealth about making changes to the proposal to address the following:
• Decrease the number of 4-bedroom units to 3-bedroom units
• Establish 50% of the units at a maximum of 50% of AMI
• Accept additional units for Section 8 vouchers outside of the required set side
• Improve the façade treatments to incorporate additional architectural details to the roof lines
and stone materials to the facades similar to a prior project in Greeley, CO
• Better address the pricing or cost savings in regard to the Geothermal component
• Accelerate LIHTC Application process and plan approval by 6 months (Target lease up for
July 1, 2024)
• Approve a development agreement in December 2022 and proceed with LIHTC application
milestones in January 2023
Coordinator Baker-Latimer shared that Commonwealth responded to this request by updating the
pro forma in regard to additional construction costs for improved design, reduced rents, and
impacts of higher interest rates. Commonwealth has also indicated a strong interest in partnering
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to apply for a 9% LIHTC project as it would assist in meeting the goals for the project and improve
the financial conditions of the project proposal.
Coordinator Baker-Latimer stated that staff also met and presented the proposal with the
Neighborhood Association to gain their input. There were concerns expressed regarding the
reduction in the number of parking spaces needed to allow for the amenities, and the rent prices.
The total number of units and the overall design were supported.
Council Member Gartin inquired about market rent rates and how affordable the proposed rents
would be. Coordinator Baker-Latimer explained that the Department of Housing and Urban
Development (HUD) describes 60% AMI as the level where individuals cannot afford to buy a
home, but can afford rent without subsidy. For lower-income residents, 60% AMI would be too
expensive to rent without subsidy. Coordinator Baker-Latimer further clarified that the 60% ceiling
is set by the LIHTC program. Director Diekmann clarified for Council Member Gartin that the
City’s investment per unit for the City would be $60,000 at the original $1.8 million project price,
and over $110,000 with the cost increases from the updated pro forma.
Mayor Haila opened the Public Input.
Lauris Olson, 1705 Buchanan Drive, Ames, speaking as President of Home Allies, expressed
support for the 9% LIHTC option.
Mayor Haila closed the Public Input.
Moved by Gartin, seconded by Betcher, to decline to accept the proposal and direct staff to prepare
an outline for an RFP in December to once again solicit development proposals for this project in
January 2023 for either 4% or 9% tax credit (for an application to IFA due in the Spring of 2023).
Vote on Motion: 6-0. Motion declared carried unanimously.
WEST TOWNE RESIDENTIAL USES: Planner Justin Moore stated that the staff report
addressed the request from West Towne Apartments for residential uses. Property owner Brent
Haverkamp asked the City Council to allow for the conversion of ground level units at his West
Towne Apartments at 4720 Mortensen Road Suite 105 from commercial to fully residential. The
current zoning is CCR, which only allows residential above ground-level commercial. The
requested change would retain 32,000 square feet of finished commercial space, and would add
129 ground-level residential units, bringing the total number of units to 325 residential units. The
City Council previously directed staff to explore incorporating affordable housing into this site
with any allowance for ground-level residential units.
West Towne Apartments offered two options for affordable housing. The first option would be to
open up all 325 units to accept Section 8 vouchers. The second option would be to fix four to five
of the new ground-level residential units at the 60% AMI threshold.
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Staff identified two options to address the zoning requirements. The first option would be a zoning
text amendment to the CCR zone standards. The second option would be to rezone the property
from CCR to RH with a contract rezoning agreement. Planner Moore stated that staff preferred the
text amendment and Section 8 vouchers options.
Director Diekmann commented that this staff report was a high-level report, so many details on
the logistics would still have to be worked out. Conceptually, the proposal would allow a lower-
income household to be housed at this location.
Council Member Junck noted that existing rents for this property are close to the 60% AMI
numbers shared by Housing Coordinator Baker-Latimer. Director Diekmann clarified for Council
Member Gartin that Staff expects this agreement to be binding permanently, given that the land
use right would be permanent. Housing Coordinator Baker-Latimer clarified for Mayor Haila that
Ames currently has a significant unmet need of landlords willing to accept Section 8 vouchers.
Her office recently received 76 emergency vouchers, and of those only 20 were able to be used in
Ames. Coordinator Baker-Latimer further explained that vouchers are for 30% AMI or less, which
means that the voucher-holder pays no more than 30% AMI and the voucher covers the remainder
of the cost.
Mayor Haila opened Public Input.
Brent Haverkamp, 3913 Timber Creek Lane, Ames, spoke in favor of the rezoning and the
acceptance of Section 8 vouchers.
Mayor Haila closed Public Input when no one came forward to speak.
Council Member Gartin shared strongly-held concerns regarding the proposal, arguing for the need
for a consistent policy to address when quid pro quo is appropriate in response to requests of a
similar nature.
Moved by Beatty-Hansen, seconded by Betcher, to allow for applicant to apply for a text
amendment to the CCR zone standards to allow for ground level residential units with approval of
a Major Site Development Plan and affordable housing plan, and to draft in a Developers
Agreement that West Towne Apartments LC would open up all 325 residential units to accept
Section 8 vouchers.
Vote on Motion: 5-1. Voting Aye: Beatty-Hansen, Betcher, Corrieri, Junck, Rollins. Voting Nay:
Gartin. Motion declared carried.
RESIDENTIAL SOLAR ZONING REGULATIONS: Planning and Housing Director
Diekmann stated that the staff report was written at the direction of the City Council in response
to a letter from a citizen, who hoped to remove regulatory complications so more residents would
adopt solar power.
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Director Diekmann reviewed the three options for addressing the issue in the staff report. Option
1 would delete the standards for roof mounted solar energy systems for residential, commercial,
and industrial properties. Option 2 would modify the standards for solar energy systems for only
residential properties. Option 3 would modify all standards for solar energy systems for residential,
commercial, and industrial properties. He noted that Staff recommended Option 1, as rooftop solar
is by far the most common type of solar installation, and this option would address the concern of
the letter-writer.
Mayor Haila opened the Public Input.
Jeri Neal, 916 Ridgewood Avenue, Ames, spoke on behalf of the Ames Climate Action Team,
expressing support for Option 1.
Mayor Haila closed the Public Input when no one came forward to speak.
Moved by Beatty-Hansen, seconded by Corrieri, to delete the standards for roof mounted solar
energy systems for residential, commercial, and industrial properties.
Vote on Motion: 5-0. Absent from voting: Rollins. Motion declared carried unanimously.
RESOURCE ENHANCEMENT AND PROTECTION (REAP) GRANT AGREEMENT:
Parks and Recreation Director Keith Abraham stated that the application by the City of Ames for
the REAP grant scored the best out of 30+ applications. He expressed thanks to the team that
prepared the application, including Public Relations Officer Susan Gwiasda, Parks and Facilities
Superintendent Joshua Thompson, and Lisa Hein of the Iowa National Heritage Foundation.
Mayor Haila opened and closed the Public Input when no one came forward to speak.
Moved by Junck, seconded by Betcher, to adopt RESOLUTION NO. 22-607 approving entering
into the Resource Enhancement and Protection (REAP) grant agreement with the Iowa Department
of Natural Resources in the amount of $200,000.
Roll Call Vote: 6-0. Resolution declared adopted, signed by the Mayor, and hereby made a portion
of these Minutes.
HEARING ON PROPOSAL TO ENTER INTO A WATER REVENUE LOAN AND
DISBURSEMENT AGREEMENT: Mayor Haila opened and closed the Public Hearing when
no one came forward to speak.
Moved by Betcher, seconded by Junck, to adopt RESOLUTION NO. 22-608 taking additional
action on proposal to enter into a Water Revenue Loan and Disbursement Agreement for new
water wells.
Roll Call Vote: 6-0. Resolution declared adopted, signed by the Mayor, and hereby made a portion
of these minutes.
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HEARING ON PROPOSAL TO ENTER INTO A SEWER LOAN AND DISBURSEMENT
AGREEMENT: Mayor Haila opened and closed the Public Hearing when no one came forward
to speak.
Moved by Betcher, seconded by Gartin, to adopt RESOLUTION NO. 22-609 taking additional
action on proposal to enter into a Sewer Revenue Loan and Disbursement Agreement for the
Annual Sanitary Sewer System Improvements Program (FY 2018/19, 2019/20, 2020/21, and
2021/22).
Roll Call Vote: 6-0. Resolution declared adopted, signed by the Mayor, and hereby made a portion
of these minutes.
FIRST PASSAGE OF ORDINANCE TO AMEND CHAPTER 12, SECTION 12.2 AND 12.3
FOR THE PURPOSE OF ESTABLISHING ELECTION OF HOSPITAL TRUSTEES,
TERM OF OFFICE, AND QUALIFICATIONS: Mayor Haila opened and closed the Public
Hearingwhen no one came forward to speak.
Moved by Gartin, seconded by Junck, to pass on first reading an ordinance to amend Municipal
Code of the City of Ames, Iowa, by amending Chapter 12, Section 12.2 and 12.3 for the purpose
of establishing election of hospital trustees, term of office and qualifications.
Roll Call Vote: 6-0. Motion declared carried unanimously.
THIRD PASSAGE AND ADOPTION OF ORDINANCE NO. 4482 REZONING 3700-5898
E. LINCOLN, 799 TELLER AVENUE, AND 220 & 420 SOUTH AVENUE
AGRICULTURAL (A) TO INTENSIVE INDUSTRIAL (II): Moved by Betcher, seconded by
Corrieri, to pass on third reading and adopt ORDINANCE NO. 4482 Rezoning 3700-5898 E.
Lincoln, 799 Teller Avenue, and 220 & 420 South Avenue Agricultural (A) to Intensive Industrial
(II).
Roll Call Vote: 6-0. Motion declared carried unanimously.
DISPOSITION OF COMMUNICATIONS TO COUNCIL: Mayor Haila noted there was one
item to consider. The item was an email from Kurt Friedrich on zoning limitation at 320 Jewell
Drive.
Moved by Gartin, seconded by Junck, to refer the matter to Planning and Housing Director Kelly
Diekmann for a memo.
Vote on Motion: 6-0. Motion declared carried unanimously.
COUNCIL COMMENTS: Council Member Betcher wished everyone a Happy Thanksgiving
with family and friends.
Council Member Junck echoed the Happy Thanksgiving wishes, and stated that she was sitting
with many ideas from the National League of Cities conference that she hoped to share soon.
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ADJOURNMENT: Moved by Gartin, seconded by Junck, to adjourn the meeting at 9:04 p.m.
Vote on Motion: 6-0. Motion declared carried unanimously.
__________________________________ ____________________________________
Jeramy Neefus, Recording Secretary John A. Haila, Mayor
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Renee Hall, City Clerk