HomeMy WebLinkAbout~Master - Special Meeting of the Ames City Council 11/10/1994MINUTES OF THE SPECIAL MEETING
OF THE AMES CITY COUNCIL
AMES, IOWA NOVEMBER 10, 1994
The Ames City Council met in special session at 5:00 p.m., November 10, 1994, in the City Council
Chambers, in the City Hall, 515 Clark Avenue, pursuant to law with Mayor Larry Curtis presiding
and the following Council Members present: Brown, Campbell, Hoffman, Parks, Tedesco, and
Wirth.
DEVELOPER'S AGREEMENT FOR ASPEN BUSINESS PARK: Motion by Parks,
Second by Hoffman, to adopt RESOLUTION NO. 94-471, approving Developer's Agreement
for Aspen Business Park.
Roll Call Vote; 6-0. Resolution declared adopted unanimously, signed by
the Mayor, and hereby made a portion of these minutes.
WORKSESSION WITH AMES ECONOMIC DEVELOPMENT COMMISSION BOARD OF
DIRECTORS: City Manager Steve Schainker discussed how economic indicators for the City,
such as building activity and taxable sales, have shown constant, steady, upward growth.
Executive Director Mark Snell reviewed documents contained in the handout entitled "Economic
Indicators, Ames City Council/Economic Development Workshop." He said the latest retail sales
figures show over 4,000 businesses in Ames have retail sales tax permits. He discussed projected
valuation growth within Ames, noting valuation contributions for Residential and Commercial
properties dominate the tax base income for the City.
There was discussion regarding the present 68% tax rollback, and proposed legislation for tax
exempt properties.
Mr. Snell reviewed handouts regarding employment trends and population increases within Story
County, and discussed the AEDC's strategic plan. He discussed the importance of economic
development to the community. He said the AEDC Board had held a planning session in June of
1994 and identified the AEDC's internal markets and external markets as follows:
Internal Markets (economic development generated from sources within the
Ames area)
a. Existing industry base (value-added and non value-added)
b. Technology based industry start ups and expansions (ISU)
External Markets (economic development generated from sources outside of
Ames area)
a. Inquiries from individuals and companies in and out of state (IDED, ISU,
IES, AEDC member referrals, AEDC requests)
b. Biotech Marketing Initiatives generated by participation with ISU, IDED,
City of Ames and greater Des Moines Chamber Federation.
Mr. Snell said the Board members felt the primary emphasis of the AEDC needs to be focused
toward the internal markets, and said they see the Board members' roles as facilitators. He read the
AEDC Mission Statement, and identified the six primary areas where the Board feels attention
should be focused:
A. There is a need for financing options for business expansions and
various state financing alternatives.
1. The financial resources of central Iowa (Des Moines) are much
greater and need to be sought for participation in Ames projects.
2. There is a need to further define the role and mission of the ASCF
in order to use it as an effective economic development tool.
3. Identify the private resources available, enlist the people who know
where the funds are located.
B. There is a need to develop quality and appropriate facilities in Ames
with sufficient quantities of available space to lease or purchase.
1. Establish a plan for development of the Bournes facility as a
resource for meeting space needs.
2. Continue to support development activities in established development
areas such as the Ames Community Development Park.
C. Provide education to entrepreneurs on generally accepted business
practices and what is expected when seeing various stages of financing
and space.
D. The Iowa State University Research Park mission and its development are
key to the growth of Ames and the state of Iowa. The Ames community
in partnership with Iowa State University and the Greater Des Moines
Chamber of Commerce Federation need to market it.
E. External marketing needs to be focused on the targeted industries
identified by the Batelle studies and Project 21 target industries
reports. This includes cooperating with economic development
initiatives in Central Iowa with specific emphasis in biotechnology.
F. There is a need to hold a workshop between the AEDC and City Council
on tax issues and philosophical positions regarding economic development
to put forth a united front for economic development in Ames.
City Manager Schainker suggested the Council and Board might first want to define "economic
development," then meet and develop goals together. He said in the past, each group set separate
goals which may not always mesh.
Mr. Schainker reviewed the handout entitled "A Program for Economic Development for the City
of Ames," dated October 1988, and said the definition included in that document may be broader
than that of the AEDC. He noted the document listed what the City Council would like to
accomplish in terms of economic development and listed different types of incentives and resources
which could be used to accomplish those goals.
There was discussion of what the AEDC would like the City to do in terms of economic
development. AEDC President Jami Larson said the AEDC would like to work with the Council
to identify one or two projects requiring public/private teamwork and then try to complete those
projects in a specified period of time. Board Member Dan Krieger said the primary goal is to make
certain the Board and the Council are in sync with their goals.
There was discussion regarding creation of jobs within the community, and the need to stimulate
economies of both the commercial and industrial sector.
There was discussion of the Tax Increment Financing concept. Coun. Brown said a TIF district
involved a certain increment of expense upfront, which was paid by the City and the taxpayers. She
said there was a need for understanding of the tax subsidy that goes into a TIF district.
There was discussion regarding the success of the existing TIF district. City Manager Schainker
said there was no question that the TIF concept was a good idea, but one which should not be used
indiscriminately. He suggested criteria for TIF districts be developed, to make certain the concept
is not overused.
Coun. Campbell said there was a need to look at a broader picture, given the amount of tax money
available for these projects, and that in some instances, priorities may have to be set.
AEDC Board Member Fred Miller said he felt there was an important distinction to be made in
looking at a TIF District as an investment as opposed to a subsidy. He said prioritizing a list of
projects would be an academic exercise unless there were competing projects.
There was discussion regarding the need for a pool of venture capital funds to be available to attract
businesses to the community. Board Member Larson suggested the Council consider putting funds
into a pool matched with private sector dollars, to provide readily accessible funds so that good
business opportunities might not be missed. He said at present, there is difficulty getting all the
players in line to respond to economic development inquiries on a short notice basis. There was
discussion that other venture capital groups would have to be looked at as well. Coun. Parks said
neither the City nor the AEDC should take the entire risk.
There was discussion regarding the Revolving Loan Fund as another incentive for economic
development, and the need to discuss landuse as a future topic.
Mayor Curtis said it appeared there was a need to develop a tool to evaluate the economic incentives
the City currently offers. He said it was also important to look at how the City Council and the
AEDC currently interact, and perhaps develop a jointly-designed procedure for how the two entities
can work together better in the future.
Couns. Parks and Wirth left the meeting at 7:15 p.m.
Coun. Hoffman said she didn't think the Council and the AEDC were that far apart in their ways of
thinking. She said the City has put forth a number of incentives, and she suggested criteria for
offering those incentives needed to be developed.
There was discussion regarding Staff arranging an "economic summit group" to meet and report
back to the Council and Board with recommendations.
There was discussion regarding whether economic development in Ames is reactive or proactive.
Board Member Larson said if the AEDC's mission was to stimulate, they needed to be proactive.
There was discussion of the following items, listed on the AEDC's agenda as possible projects
requiring public/private teamwork:
a. Parking in Campustown and Downtown
b. Sewer extensions to new areas, i.e., the ISU Research Park
c. Infrastructure improvements on the Bourne property
d. Expansion of the Ames Community Development Park
e. Request to put an interchange at South Dakota Avenue and Hwy. 30 into
the CIP
f. Status of South Duff Municipal Improvement District
g. Request to establish the I-35 business loop
There was consensus that Staff would work with the AEDC to coordinate an economic summit
group and meeting, and that the Council and the Board of Directors would hold another joint
meeting at a future date to discuss the summit group's report and landuse issues. There was
consensus that such a meeting might occur in January of 1995.
COMMENTS: There were no comments.
ADJOURNMENT: The meeting adjourned at 8:10 p.m.
Sandra L. Ryan, City Clerk Larry R. Curtis, Mayor