HomeMy WebLinkAbout~Master - Resolution approving Development Agreement for Harrison Pointe SubdivisionRESOLUTION NO. 26-170
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
FOR HARRISON POINTE SUBDIVISION TO COMPLETE THE SALE OF THE
SURPLUS PROPERTY AT THE INTERSECTION OF WELBECK AND HARRISON
FOR THE CITY OF AMES, IOWA
WHEREAS, the City Council directed staff on June 25, 2024 to issue an RFP for
the sale of 1.8 acres of surplus land for the development of housing consistent with the
goals of the Ames Plan 2040 Comprehensive Plan, including support of infill development
and housing needs described within the Housing Element, and the City Council Value of
supporting diverse housing opportunities with the Council Goal to increase quantity and
variety of single- and multi-family housing units at various price points.
WHEREAS, the City at the conclusion of the RFP period on August 30, 2024,
received no proposals for the purchase and development of the site.
WHEREAS, Ames Regional Economic Alliance approached the City Council with
an interest of supporting development of workforce housing as an economic development
tool for the community and to enter into a MOU to solicit a proposal for the Harrison site
from a qualified housing developer, for which the City approved the MOU on March 25,
2025.
WHEREAS, the Ames Regional Economic Alliance identified Keystone Equity
Group as a qualified housing development business with experience in construction of
workforce housing and the City received a proposal for the purchase of land by Keystone
Equity Group, subject to certain conditions related to development of workforce housing.
WHEREAS, the City held a noticed public hearing on the disposition of the property
for its sale to Keystone Equity Group on May 27, 2025 and determined that the
development of the property with workforce housing was consistent with a public purpose
of economic development as allowed within Iowa Code Chapter 15a and that “other
financial assistance” to reduce purchase price of the land was allowed by Iowa Code
Chapter 15a in order to construct workforce housing in support of economic development
goals. Workforce housing is specifically tied to Iowa Code Chapter 15.355 program
definitions and eligibility for Workforce Housing Tax Credits administered by the Iowa
Economic Development Authority.
WHEREAS, the City Council determined that the due to the lack of any other offers
at the time of the RFP or since, including at the hearing on the disposition of the property,
that no specific value was established for the property and that sale of the land for one
dollar as an economic development incentive is not a gift of land to a private party due to
the considerations related to requirements to obtain and comply with state Workforce
Housing Tax Credit program requirements for economic development purposes.
WHEREAS, the City approved a Purchase Option Agreement with Keystone
Equity Group on May 27, 2025 Group after a duly noticed public hearing for disposition
of property that required as a condition of sale that the purchaser completed certain
requirements, including, obtaining approval of State Workforce Housing Tax Credits,
subdivision approval, and a development agreement for the construction of workforce
housing before taking ownership of the property.
WHEREAS, the Iowa Economic Development Authority awarded Keystone Equity
Group, as a housing business, Workforce Housing Tax Credits on September 11, 2025.
WHEREAS, the approval by the City Council of the Development Agreement is the
final contingency for completion of the Purchase Option Agreement approved on May 25,
2025 and the agreement includes provision for home sale price limits consistent with the
state Workforce Housing Tax Credit program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that the Development Agreement for Harrison Pointe Subdivision approved as
part of the Final Plat for development the surplus land at the intersection of Harrison
Road and Welbeck Drive with 12 units of workforce housing is hereby approved.
ADOPTED THIS 24th day of March, 2026.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by: Corrieri
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Junck, Gartin, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 24th day of March, 2026.