HomeMy WebLinkAboutA024 - September 8, 2026, Regular Meeting of the Ames City CouncilITEM #:24
DATE:09-08-26
DEPT:P&H
SUBJECT:URBAN RENEWAL AREA AMENDMENTS AND NEW DESIGNATIONS
COUNCIL ACTION FORM
BACKGROUND:
At the August 25th City Council meeting, the staff provided five strategies for minimizing the
impact of SF 2472, one of which was to target new and/or expand existing Urban Renewal
Areas (URA) for approval before January 1, 2027. In response to this strategy the staff is now
introducing the following four types of URA amendments for City Council consideration.
1. Continuation of Existing TIF Revenue and Expansion of Existing URA Boundaries for
City Infrastructure
City staff reviewed planned City infrastructure investments identified within the 5-yr Capital
Improvement Program and identified certain General Obligation bond funded projects that
could be funded in relation to Urban Renewal Areas. The intent is to continue to utilize
existing TIF districts revenues to lessen the City taxpayer burden related to General
Obligation bond debt funded projects.
Since the City no longer receives General Fund growth from the release of TIF valuation
under SF 2472, utilization of the existing revenue to pay for planned General Obligation
bond supported CIP projects provides an alternative revenue source while
simultaneously benefits the taxpayer through State reimbursement of the School
Foundation Levy ($5.40/$1,000 of taxable value).
2. Expand Existing URA Boundaries for Existing Priority Redevelopment Areas
The City has two primary areas of Campustown and Downtown that have long standing
policies to incentivize specific types of redevelopment projects. The current implementation
tool for this policy has been a property tax abatement tool that has also been significantly
impacts by SF2472.
Staff proposes to expand the URA boundaries for Campustown and Downtown to
address potential redevelopment projects for these areas with the flexibility of a URA
as well as implementing the strategy of maintaining tax abatement options with a
modified schedule that eliminates the first year.
3. New Economic Development URAs
City staff highlighted the planned East Industrial expansion area and the regional commercial
area at E 13th Street as areas that could benefit from a URA. Creation of the URA without a
specific development project will assist in planning for funding of potential infrastructure in
these areas with future TIF.
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Staff has identified areas that are within the City and that staff believes that we can gain
consent for including agricultural property as required by Iowa Code 403. Multiple TIF areas
will need to be created within each of the URAs to manage how General Fund growth is
accounted for at the time of development of properties within the URA.
4. Housing Development Incentives URA
City Council provided direction in December 2025 to proceed with financial incentives that
include TIF as a funding source for certain improvements. Public improvements identified for
these areas to be undertaken by the City or as a development rebate funded by TIF include:
reconstruction of Scholl Road, GW Carver/Cameron School Road Improvements, Stange
Road Extension, Construction of a Culvert for a creek crossing, and other development
rebates for as of yet unspecified public improvements.
NEXT STEPS:
URAs are created through a multi-step process of approving a resolution of necessity
determining that a defined area meets Iowa Code 403 requirements for an economic
development area or an area for removal of slum and blight, or a combination there of. A Plan
is then prepared to define the purpose and objectives of the Plan, to identify consistency of the
URA Plan with the Comprehensive Plan, and to identify projects that may be undertaken
within the URA boundaries, the debt capacity of the City, and the amount of TIF and potential
uses of TIF generated from areas with the URA boundary.
A public hearing is then set for review of a draft URA Plan with review by the Planning and
Zoning Commission and a requirement for a consultation meeting with affected tax entities
City Council adopts a resolution approving a Plan. TIF areas within a URA are then
established by separate ordinances for some or all of the property within a URA.
Amendments to a Plan can occur through the same process.
ALTERNATIVES:
1. Motion directing staff to prepare URA Plans for all four types of areas as described in the
attachments.
2. Motion directing staff to prepare URA Plans for different areas than described in the
attachments.
3. Motion directing staff to not proceed with changes to some or all of the areas described
in the attachments.
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CITY MANAGER'S RECOMMENDED ACTION:
Staff believes that the proposed URAs amendments represent good financial planning
for the City and are consistent with established economic development priorities of the
C it y. Therefore, it is the recommendation of the City Manager that the City Council approve
Alternative No. 1.
Should the City Council support the Manager's Recommendation, staff intends that all of the
aforementioned URA plans and proposed changes to existing URA plans will be brought
forward to the City Council for the review of the resolution of necessity and the draft plans by
October 13th. Public hearing dates for approval of the URA Plans would be scheduled for
November 24th. TIF Ordinances will be prepared for review with the approval of the URA
Plans.
It is important for the City Council to note that the more proactive approach being
suggested by staff to establish URAs with accompanying TIF Districts does not mean
that a TIF incentive will be offered to anyone who develops this these areas. What the
proposed action does is set up certain areas for the possibility of a TIF incentive and
allow the City Council to handle requests for this incentive on a case-by-case basis.
With this new strategy regarding TIF districts, it will be essential that the City Council establish
a policy to guide any decision to offer a TIF incentive. Such a policy could include:
The requirement that a Developer provide a pro forma statement evidencing a gap in
financing and, therefore, help justify to the City Council the need for a certain amount of
incentive.
Establish a policy for the percentage of TIF revenue that should be devoted to a project
and the duration of the TIF incentive.
The Developer has a commitment for one or more buildings that will be built immediately
on a site. This will help to conservatively calculate the number of years and amount the
incentive will have to be in place.
That the owners of the buildings will need to agree to a minimum assessment
agreement. Here again, making it easier to calculate when the TIF obligation will be paid
off.
Any TIF incentives will not be used during the first, or second, year so that the value of
the building(s) can be counted as new valuation for purposes of calculating the amount
over the 2% cap in the General Levy the City generate in property taxes.
Buildings for TIF incentive should be on separate lots to maximize general fund new
growth.
Identify any preferred types of use or development attributes to receives incentives.
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Provide no incentives to projects that have substantial impacts on City services.
Prioritize repayment of City obligations before providing developer incentive rebates.
Staff will return to the City Council at a future date to discuss parameters for TIF incentive
policy after completion of the strategies identified in this report.
ATTACHMENT(S):
URA Expansion for Infrastructure Map
URA Expansion Existing Priority.pdf
URA New Economic Development Map.pdf
URA New Housing Development Incentives Map.pdf
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GF
KEN MARIL RD
VEENKER DR
Access to city wells
WELCH AVE
SCHOLL RD
HABER RD
566TH AVE
DAYTON PKWY
BOBCAT DR
UNION DR
COLT ST
BAY DR
LONG RD
MORRILL RD
BEACH RD
APPLE PL
JADE ST
S GRAND AVE
S 16TH ST
6TH ST
DUFF AVE
SE 16TH ST
STANGE RD
E 13TH ST
24TH ST
13TH ST
S 16TH ST
STANGE RD
SE 16TH ST
E 13TH ST
6TH ST
24TH ST
6TH ST
13TH ST
24TH ST
6TH ST
13TH ST 13TH ST
S 5TH ST
STATE AVE
S RIVERSIDE DR
EVEREST AVE
SE 18TH ST
WATT ST
195TH ST
LEDGES DR
S 17TH ST
WOOD ST
E ONEIL DR
WALTON DR
9TH ST
GABLE LN
ALDRIN AVE
8TH ST
20TH ST
S BELL AVE
16TH ST 15TH ST
KNAPP STCOY ST
LINCOLN WAY E 2ND ST
SE 5TH ST
POLK DR
18TH ST
HYDE AVE
CEDAR LN
HAYWARD AVE
SE 3RD ST
ASPEN RD
11TH ST
ASH AVE
GRAND AVE
PURVIS LN
20TH ST
HYDE AVE
8TH ST
STATE AVE
20TH ST
STATE AVE
20TH ST
HYDE AVE
520TH AVE
560TH AVE
W 190TH ST
250TH ST
550TH AVE
GRANT AVE
STAGECOACH RD
245TH ST
OLD BLOOMINGTON RD
241ST ST
E 190TH ST
547TH AVE
245TH ST
E 190TH ST
N DAYTON AVE
W 190TH ST
N DAYTON AVE
W 190TH ST £¤69
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Legend
Ex isting URA
Existing URA
CIP Pr oject
URA E xpansio n for In frastr uctur e Improvem ents ¯
Expansion of URA Boundaries to Include Infrastructure
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VEENKER DR
ISU C RD
Access to city wells
WELCH AVE
SCHOLL RD
HABER RD
CYCLONE LN
ALUMNI LN
BEYER CT
WOI RD
WORLE LN
ORANGE AVE
FARM HOUSE LN
STOTTS RD
UNION DR
BAY DR
WAVE DR
LONG RD
MORRILL RD
PAMMEL DR
BRUNER DR
BISSELL RD
FINCH ST
ROBIN STSHORE DR
BEACH RD
S RIVERSIDE DR
SCHOLL RD
S GRAND AVE
AIRPORT RD
N UNIVERSITY BLVD
S 16TH ST
UNIVERSITY BLVD
6TH ST
DUFF AVE
S 3RD ST
S 4TH ST
SE 16TH ST
STANGE RD
E 13TH ST
24TH ST
13TH ST
GEORGE W CARVER AVE
HYLAND AVE
AIRPORT RD
13TH ST
6TH ST
24TH ST
S 4TH ST
S 16TH ST
DUFF AVE
6TH ST
STANGE RD
DUFF AVE
24TH ST
6TH ST
24TH ST
HYLAND AVE
UNIVERSITY BLVD
STANGE RD
6TH ST
13TH ST
24TH ST24TH ST
13TH ST
13TH ST
13TH ST
HYLAND AVE
DUFF AVE
13TH ST
AIRPORT RD
DUFF AVE
DUFF AVE
S 4TH ST
E 13TH ST13TH ST
AIRPORT RD
STANGE RD
S 5TH ST
STATE AVE
S 17TH ST
TIMBERLAND RD AIRPORT RD
E ONEIL DR
CAMPUS AVE
9TH ST
GABLE LN
8TH ST
12TH ST
20TH ST
TAFT AVE
TRUMAN DR
BILLY SUNDAY RD
BAKER ST
STORM ST
SYCAMORE RD
16TH ST
LEE ST
15TH ST
14TH ST
SE 5TH ST
KNAPP ST
7TH ST
WOODVIEW DR
E 8TH ST
E 6TH ST
YORKSHIRE ST
S FRANKLIN AVE
E 7TH ST
LINCOLN WAY
HIGH AVE
E 2ND ST
30TH ST
DONALD ST
LETTIE ST
N 2ND ST
WELCH AVE
S 3RD ST
S 2ND ST
POLK DR
18TH ST
LINDEN DR
FRILEY RD
PINE ST
N 3RD ST
CLARK AVE
ROSS RD
5TH ST
25TH ST
Alley
WILSON AVE
ARBOR ST
BARR DR
28TH ST
MAIN ST
HAYWARD AVE
AGG AVE
KINGSTON DR
MEADOW GLEN RD
S DUFF AVE
S 4TH ST
LYNN AVE
10TH ST
STORY ST
HAYES AVE
BRISTOL DR
HARDING AVE
SE 3RD ST
ASPEN RD
KELLOGG AVE
GROVE AVE
HODGE AVE
ELLIS ST
E 20TH ST
CARR DR
SHELDON AVE
N OAK AVE
N 4TH ST
S WALNUT AVE
WEST ST
11TH ST
22ND ST
MONROE DR
FRANKLIN AVE
HUNT ST
ASH AVE
LUTHER DR
26TH ST
KENT AVE
MCKINLEY DR
13TH ST
BLOOMINGTON RD
KITTY HAWK DR CRYSTAL ST
GRAND AVE
E 9TH ST
N ELM AVE
DARTMOOR RD
BEACH AVE
17TH ST
OAKLAND ST
BEL AIR DR
E 5TH ST
MORTENSEN RD
12TH ST
7TH ST
25TH ST
10TH ST
11TH ST
16TH ST
BEACH AVESTATE AVE
10TH ST
20TH ST
9TH ST
ASPEN RD
16TH ST
S 17TH ST
12TH ST
28TH ST
16TH ST
8TH ST
LINCOLN WAY
S 2ND ST
9TH ST
MORTENSEN RD
S DUFF AVE
S 5TH ST
9TH ST
20TH ST
5TH ST
30TH ST
13TH ST
5TH ST
MAIN ST
20TH ST
30TH ST
POLK DR
5TH ST
20TH ST
STAGECOACH RD
Legend
Downtown Expansion
Campustown Expansion
Existing URA
Exist ing URA ¯
Expansion of URA Boundaries to Existing Priority Areas
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KEN MARIL RD
FLEMING AVE
ISU C RD
Access to city wells
HABER RD
CYCLONE LN
ALUMNI LN
AVIATION WAY
AGATE AVE
COLT ST
BAY DR
BEACH RD
APPLE PL
S GRAND AVE
AIRPORT RD
S 16TH ST
6TH ST
S DAYTON AVE
S 4TH ST
SE 16TH ST
DAYTON AVE
E 13TH ST
E LINCOLN WAY
24TH ST
13TH ST
SE 16TH ST
AIRPORT RD
13TH ST E 13TH ST
6TH ST
24TH ST
6TH ST
24TH ST
E 13TH ST
S 16TH ST
S 16TH ST
DAYTON AVE
AIRPORT RD
6TH ST
570TH AVE
TELLER AVE
TURING ST
S 5TH ST FREEL DR S TELLER AVE
S RIVERSIDE DR
BAILEY AVE
SE 18TH ST
WATT ST
195TH ST
LEDGES DR
S 17TH ST
E ONEIL DR
LEOPOLD DR
9TH ST
ASPEN RD
8TH ST
20TH ST
AURORA AVE
S BELL AVE
16TH ST 15TH ST
FORD ST
LINCOLN WAY
SE 5TH ST
POLK DR
18TH ST
HYDE AVE
S DUFF AVE
SE 3RD ST
E 13TH ST
11TH ST
E LINCOLN WAY
GRAND AVE
UNIVERSITY BLVD
20TH ST
S BELL AVE
E 13TH ST
8TH ST
E LINCOLN WAY
HYDE AVE
250TH ST
245TH ST
560TH AVE
SAND HILL TRL
210TH ST
265TH ST
200TH ST570TH AVE
241ST ST
550TH AVE
530TH AVE
STAGECOACH RD
OLD BLOOMINGTON RD
260TH ST
580TH AVE
220TH ST
547TH AVE
TURING ST
260TH ST
580TH AVE
210TH ST
260TH ST
580TH AVE
SAND HILL TRL
250TH ST
260TH ST
570TH AVE
200TH ST
210TH ST
250TH ST
550TH AVE
580TH AVE
570TH AVE
200TH ST
260TH ST
570TH AVE
580TH AVE
570TH AVE
TURING ST
241ST ST
E 13TH ST
N DAYTON AVE
E RIVERSIDE RD
580TH AVE
580TH AVE
580TH AVE
580TH AVE
580TH AVE
580TH AVE
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Legend
ISU Research Park Expansion New
E 13th Street New
East Industrial New
Existing URA
Existing URA ¯
New Economic Development URA Boundaries
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GF
VEENKER DR
ONION CREEK LN
SCHOLL RD
HABER RD
WOI RD
STOTTS RD
LACEY DR
WANDA DALEY DR
KOOSER DR
LONG RD
BRUNER DR
TALON DR
SCHOLL RD
13TH ST
ONTARIO ST
STANGE RD
GEORGE W CARVER AVE
24TH ST
BLOOMINGTON RD
HYLAND AVE
STANGE RD
STANGE RD
24TH ST
ONTARIO ST ONTARIO ST ONTARIO ST
24TH ST
13TH ST
24TH ST
13TH ST
13TH ST
13TH ST
DEER RUN LN
200TH ST
199TH ST
EVEREST AVE
OAK LN
QUEBEC ST
LEDGES DR
KETELSEN DRTHUNDER RD AUDUBON DR
BURNHAM DR
LONDON DR
BECKLEY ST
ALDRIN AVE
POLO AVE
515TH AVE
WESTON DR
TAFT AVE
DANBURY RD
20TH ST
ABERDEEN DR
SYCAMORE RD
SEDWICK ST
IRONS CT
GREENWOOD RD
HARRISON RD
STOCKBURY ST
POLK DR
PINE ST
HYDE AVE
ROSS RD
BAYBERRY RD
LAUREL ST
STEVENSON DR
ALMOND RD
CARTIER AVE
HAYES AVE
BRISTOL DR
ASPEN RD
PIERCE AVE
FOXLEY DR
SOMERSET DR
TORONTO ST
513TH AVE
MINNESOTA AVE
MONROE DR
ADA HAYDEN RD
ANNEAR ST
KENT AVE
BLOOMINGTON RD
MATHEWS RD
CLAYTON DR
ARIZONA AVE
HYDE AVE
ROSS RD ROSS RD
ASPEN RD
HARRISON RD HARRISON RD
ALDRIN AVE
ASPEN RD
ROSS RD
EVEREST AVE
CARTIER AVE
BAYBERRY RD
KENT AVE
WESTON DR
MONROE DR
13TH ST
ROSS RD
HYDE AVE
ROSS RD
POLK DR
W 190TH ST
215TH ST
MARTIN ST
W 190TH ST W 190TH ST
NORTH DAKOTA AVE
CAMERON SCHOOL RD
GEORGE W CARVER AVE
NORTH DAKOTA AVE
NORTH DAKOTA AVE
W 190TH ST
NORTH DAKOTA AVE
W 190TH ST
Legend
Housing Incentive Develooment Area
Existing URA
Existing URA
In frastr ucture ¯
New Economic Development URA Boundaries
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