HomeMy WebLinkAboutA050 - First reading of ORD creating Tax Increment Financing District within the Downtown Reinvestment DistrictITEM #:50
DATE:03-10-26
DEPT:P&H
SUBJECT:ORDINANCE CREATING TAX INCREMENT FINANCING DISTRICTS WITHIN
THE DOWNTOWN REINVESTMENT DISTRICT URBAN RENEWAL
AREA 
COUNCIL ACTION FORM
BACKGROUND:
The City approved the Downtown Reinvestment District Urban Renewal Area and Plan on
August 24, 2021. The Downtown Reinvestment District URA has multiple purposes of
supporting economic development and elimination of blight. Within the Urban Renewal Plan
(Plan), the use of Tax Increment Financing (TIF) is identified as a tool to achieve the goals of
urban renewal. The Plan identifies the use of TIF up to a maximum of $32.5 million for public
improvements, acquisition, economic development grants, or any other purpose permitted by
state law for urban renewal.
TIF is a state established process that allows for the City to collect additional incremental
taxes generated within a URA to fund urban renewal activities that are consistent with the
Plan. Although use of TIF is identified within the Plan, a specific ordinance defining the area
for collection of the incremental taxes must be approved separately from the Plan.
The overall URA is approximately 75 acres (See Attached Maps). Staff is proposing to
establish two TIF districts totaling approximately five acres on the site planned as the Linc
redevelopment project. The Linc site will be divided into an eastern district that is generally the
lands east of Washington Avenue extending to Kellogg Avenue and a western area for the
remainder of area west of Washington Avenue to Clark Avenue. Creating two TIF districts
allows for phasing of redevelopment.
The proposed TIF ordinance only defines the areas where TIF may be collected under
the provisions of state law. Use of TIF and the maximum amount of TIF is directed by
the previously approved URA Plan. The ordinance does not define the TIF amount,
timing, or project type to be funded. A future development agreement would need to be
negotiated in relation to the amount of TIF that could be directed to a developer as an
economic incentive for the Linc project.
ALTERNATIVES:
1. Approve First Reading of the attached ordinance establishing the Downtown
Reinvestment District Urban Renewal Area TIF District #8 and #9 by amending Chapter
24 of the Ames Municipal Code.
2. Defer action on the proposed ordinance and request more information from staff.
CITY MANAGER'S RECOMMENDED ACTION:
Creating TIF districts is consistent with the adopted Downtown Reinvestment District Urban
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Renewal Plan. Approving the TIF districts at this time is consistent with prior City Council
support for the redevelopment of the Linc site by establishing the mechanism to fund
incentives for redevelopment.
Approval of the two TIF districts does not provide any specific incentive to the Linc
developer at this time. A specific amount of incentive and timing in relation to each TIF
district will be determined by negotiation of a future development agreement that is
subject to approval by the City Council. Therefore, it is the recommendation of the City
Manager that the City Council approve Alternative #1, as described above.
ATTACHMENT(S):
TIF Ordinance Memo.docx
Downtown Reinvestment District URA and TIF districts
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Memo
Department of Planning & Housing
TO: Mayor and City Council
FROM: Department of Planning and Housing
DATE: March 6, 2026
SUBJECT: Draft Ordinance for Downtown Reinvestment District URA TIF Districts
Planning staff is working with the Public Works Department to confirm the legal description of TIF
District #8 and #9 reflect the area shown in Attachment 1. A complete draft ordinance will be
provided on March 9th.
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TIF
Dist. 9
TIF Dist.
8
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