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Home My WebLink About2022-11-21 G03 Waukee Consolidated URP Amendment 6_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: November 21, 2022 AGENDA ITEM:Public Hearing on a proposed Urban Renewal Plan for an Amendment No. 6 of the Waukee Consolidated Urban Renewal Plan in the City of Waukee, State of Iowa FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: The City Council adopted Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan in early November 2019 followed by Amendment No. 2 in January 2020 and Amendment No. 3 in July 2020, Amendment No. 4 and Amendment No.5 in November 2021. The proposed Amendment No. 6 includes the addition and removal of certain property to/from the Urban Renewal Area. The amendment also includes an update to the list of previously approved projects as well as an update to the list of eligible urban renewal projects. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff held a consultation meeting with the County and the affected school district(s) involved in the Plan area to review the proposal on October 24, 2022. No one attended the meeting. RECOMMENDATION: Hold the Public Hearing. ATTACHMENTS: I. Proposed Amendment No. 6 to Waukee Consolidated Urban Renewal Plan PREPARED BY:Jennifer Brown, Director of Economic Development REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: October 28, 2022 G3 - 1 - Final AMENDMENT NO. 6 to the WAUKEE CONSOLIDATED URBAN RENEWAL PLAN for the WAUKEE CONSOLIDATED URBAN RENEWAL AREA Gateway Economic Development Urban Renewal Area, Waukee West Urban Renewal Area, and Waukee Central Urban Renewal Area CITY OF WAUKEE, IOWA Amendment No. 1 – November 2019 Amendment No. 2 – January 2020 Amendment No. 3 – July 2020 Amendment No. 4 – November 2020 Amendment No. 5 – November 2021 Amendment No. 6 – November 2022 - 2 - Final AMENDMENT NO. 6 to WAUKEE CONSOLIDATED URBAN RENEWAL PLAN CITY OF WAUKEE, IOWA INTRODUCTION The City of Waukee, Iowa (the “City”) adopted Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan (“Plan” or “Urban Renewal Plan”) by Resolution No. 19-402 on November 4, 2019, in order to consolidate the City’s previously established Gateway Economic Development Urban Renewal Area, Waukee West Urban Renewal Area, and Waukee Central Urban Renewal Area into the Waukee Consolidated Urban Renewal Area (“Area” or “Urban Renewal Area”). The Urban Renewal Plan was last amended in November 2021 (Amendment No. 5). The Plan is being further amended by this Amendment No. 6 (“Amendment” or “Amendment No. 6”) to add and remove real estate to the Area to the extent described hereinafter, and to add and/or confirm the list of previously approved projects and the list of eligible urban renewal projects. The material changes made by this Amendment No. 6 are the following: The removal of the Area described as “Amendment No. 6 Area Removal”; The addition of the Area described as “Amendment No. 6 Area Addition”; Previously Approved Urban Renewal Projects is updated and revised, page 3; Eligible Projects is updated and revised, page 8; Financial Data is updated and revised, page 9; Exhibit A contains a legal description of the property being removed (“Amendment No. 6 Area Removal”); Exhibit B contains a legal description of the property being added (“Amendment No. 6 Area Addition”); Exhibit C contains a Map of the Waukee Consolidated Urban Renewal Area including the Amendment No. 6 Area Removal and the Amendment No. 6 Area Addition. Except as modified by this Amendment, the provisions of the Urban Renewal Plan, as previously amended, are hereby ratified, confirmed, and approved and shall remain in full force and effect as provided herein. In case of any conflict or uncertainty, the terms of this Amendment shall - 3 - Final control. Any subsections in the Plan, as previously amended, not mentioned in this Amendment shall continue to apply to the Plan, as amended. DESCRIPTION OF THE URBAN RENEWAL AREA The legal description of the property being removed from the Waukee Consolidated Urban Renewal Area is attached hereto as Exhibit “A”. The legal description of the property being added to the Waukee Consolidated Urban Renewal Area is attached hereto as Exhibit “B”. A map of the Amendment No. 6 Area Removal and Amendment No. 6 Area Addition is attached as Exhibit “C”. AREA DESIGNATION The City of Waukee continues to designate the Urban Renewal Area, including the Amendment No. 6 Area Addition, as an area that is appropriate for the promotion of economic development, both commercial and industrial. DEVELOPMENT PLAN Waukee has a general plan for the physical development of the City as a whole outlined in the Waukee Comprehensive Land Use Plan, adopted in 2019. This Urban Renewal Plan, as amended by Amendment #6, is in conformity with the 2019 Comprehensive Plan, and the land use policy and priorities that were adopted as part of the planning process. This Urban Renewal Amendment does not change or in any way replace the City's current land use planning or zoning regulation process. The need for improved traffic, public transportation, public utilities, recreational and community facilities, or other public improvements within the Urban Renewal Area is set forth in this Plan, as amended. As the Area develops, the need for public infrastructure extensions and upgrades will be evaluated and planned for by the City. UPDATE TO PREVIOUSLY APPROVED URBAN RENEWAL PROJECTS Numerous urban renewal projects were authorized prior to the date of this Amendment No. 6. These previously authorized projects included but are not limited to the following projects which have been initiated and are continuing (some of which are updated as applicable): 1)Public Improvements Project Bond Reference Balance as of July 1, 2022 Kettlestone Greenbelt Phase II, Kettlestone Boulevard Extension and Traffic Signal, ADA Sidewalk Transition Project, Traffic Signal Enhancement Project 2019A GO Urban Renewal $1,693,750.00 - 4 - Final NW 10th Street Widening – Hickman Road to Douglas Pkwy and NW Sunrise Expansion – NW 10th Street to NW 6th Street 2020A GO Urban Renewal $14,247,063.00 NW Sunrise Drive Expansion from NW 6th Street to NW 2nd Street, NW Douglas Pkwy Expansion from NW 10th Street to NW 2nd Street, NW 2nd Street Expansion from W Hickman Road to NW Douglas Pkwy, Ashworth Road/Ute Avenue Intersection Improvements, Grand Prairie Pkwy/Ashworth Road Intersection Improvements, SE Laurel Street Extension west of SE Alice’s Road 2021A GO Urban Renewal $3,562,550.00 NW Douglas Pkwy Phase 2 A/B, NW 2nd St., NW Sunrise Dr, Warrior Phase 1, Ashworth Road/Ute Avenue Intersection Improvements, Grand Prairie Pkwy/Ashworth Road Intersection Improvements, Grand Prairie Pkwy/SE Tallgrass Lane Traffic Signal, NW 6th Culvert, NW Douglas Bridge, NW 10th/ NW Douglas Pkwy-Traffic Signals, Hickman Rd./Waco 2021B GO Urban Renewal $21,775,813.00 TOTAL $41,279,176 Numerous urban renewal projects were included in Amendment No. 5 and preceding amendments. These previously authorized projects include but are not limited to the following projects, which have been initiated, however, no tax increment financing is anticipated to be utilized in the financing of the projects: Project Completion Date/Estimated Completion Date Estimated Cost Rationale Northwest Area Water Main Extension from University Avenue/6th Street to T Avenue/Hickman Road (multiple phases) 2019 $2,000,000 - $4,000,000 Necessary water utility expansion to support commercial/industrial development expansion Northwest Area Sanitary Trunk Sewer Extension from University Avenue/6th Street to T Avenue/Hickman Road 2019 $2,000,000 - $4,000,000 Necessary sanitary sewer utility expansion to support commercial/industrial development expansion Alice’s Road Expansion Phase 1 (University to Olson) 2018 $6,500,000 - $8,000,000 Commercial Corridor Roadway Expansion Alice’s Road Expansion Phase 2 (Olson to Horizon) 2019 $7,500,000 - $9,000,000 Commercial Corridor Roadway Expansion Civic Land Purchase. Purchase of approximately 225 acres to allow for the future relocation and consolidation of 2022 $9,000,000 - $11,000,000 Consolidation of City services and the development of civic amenities, which will provide a centralized gathering location - 5 - Final several municipal services including City Hall and the Public Library as well as the development of new services and amenities which could include a recreation center, ice arena, amphitheater and other park amenities within the community which will promote and generate the need for surrounding private economic development to service the activities within the civic campus development. A Public Building Analysis for this project was included in Amendment #1 to the Waukee West Urban Renewal Plan. TOTAL $27,000,000 - $36,000,000 Note: This total does not include financing costs related to debt issuance Numerous urban renewal projects were included in Amendment No.5 and preceding amendments, but have not yet been initiated. These previously authorized projects include but are not limited to the following (with updates as applicable): 1) Public Improvements Urban Renewal Project Description Estimated Date Estimated Cost Rationale Grand Prairie Parkway (Interstate 80 to University) Streetscape Enhancements – landscaping, trails, underpass enhancements, signage 2022-2025 $2,000,000 - $4,000,000 Commercial Corridor Roadway Expansion Public Safety Facility. Construct and equip a municipal public safety facility with fire and police services and install all needed utilities and sewers, bike/pedestrian trails, street lights, traffic signals and signage, streets, turn lanes, and other projects associated with said public safety facility, as well as purchase/acquire any real or personal property necessary for the construction and operation of said public safety facility. 2022-2025 $45,000,000 - $65,000,000 The City anticipates utilizing various funding mechanisms to fund this project while utilizing urban renewal authority and tax increment financing commensurate with the impact of this project on economic development in the Area. A public safety facility with fire and police services will help protect the anticipated investments of future commercial and industrial developments, as well as protect the motoring public in the area. See Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan for the Public Building Analysis previously provided for this project. Douglas Parkway (280th 2022 - $13,000,000 - Commercial/Industrial - 6 - Final Street) Extension – T Avenue to S Avenue 2030 $20,000,000 Corridor Roadway Expansion University Avenue (300th Street) Extension – 10th Street to R-16 2021 - 2030 $28,000,000 - $35,000,000 Commercial/Industrial Corridor Roadway Expansion T Avenue Widening – Douglas Parkway to University Avenue 2022 - 2028 $25,000,000 - $30,000,000 Commercial/Industrial Corridor Roadway Expansion University Avenue Widening and Extension – LA Grant Parkway to 10th Street 2025 - 2028 $55,000,000 - $65,000,000 Commercial/Industrial Corridor Roadway Expansion Ashworth Road Widening – LA Grant Parkway to Waco Place 2022-2028 $15,000,000 - $20,000,000 Expansion of existing arterial roadway Corridor that serves a number of school facilities as well as the larger regional transportation network. The Corridor is currently insufficient in size and creates a number of delays and safety concerns including concerns related to police/fire response times. The roadway serves as a major arterial roadway which when expanded and extended will allow for additional commercial economic development activity. Total Range of $183,000,000 to $239,000,000 2) Development Agreements: A. Development Agreement with JACE Properties, L.L.C. and Access Technologies, Inc.: Under authority granted by Amendment No. 5 to the Plan, the City entered into a Development Agreement (the “Agreement”) with JACE Properties, LLC (the “Developer”) and access Technologies, Inc. (the “Employer”), pursuant to which Developer will construct a new 31,000 class A office building expansion on certain real property within the Urban Renewal Area (“Minimum Improvements”). The office building is anticipated to house corporate offices for Employer. The City agreed to provide Developer with Economic Development Grants to incentivize the retention and expansion of existing business facilities as well as the retention and creation of jobs by Employer. The City expects to make Economic Development Grants to Developer in the form of rebates of incremental taxes generated by the project, over a period of - 7 - Final three (3) years at 50 percent annually. The cost of such Grants shall not exceed the maximum of $535,000 and are subject to the terms and conditions of a detailed Development Agreement, which includes detailed job retention/creation requirements. B.Development Agreement with TIC Properties, LLC: Under authority granted by Amendment No. 5 to the Plan, the City entered into a Development Agreement (the “Agreement”) with TIC Properties, LLC (the “Developer”), pursuant to which Developer will construct a 60,000 square foot commercial building to be used as a medical center and related parking and site improvements on certain real property within the Urban Renewal Area (“Office Building”) in addition to certain Public Improvements to be dedicated to the City. The City expects to make Economic Development Grants to Developer in the form of rebates of incremental taxes generated by the project over a period of eight (8) years but not to exceed the lesser of the cost of the Public Improvements or $1,668,467. The Grants are subject to the terms and conditions of a detailed Development Agreement, which includes detailed job retention/creation and operation requirements. ELIGIBLE URBAN RENEWAL PROJECTS (Amendment No. 6) Although certain project activities may occur over a period of years, the Eligible Urban Renewal Projects under this Amendment No. 6 include: 1)Development Agreements : A.Development Agreement with Waukee Towne Center, LLC: The City expects to enter into a Development Agreement (the “Agreement”) with Waukee Towne Center, LLC (the “Developer”), pursuant to which the Developer will construct Quality of Life Improvements in two phases (including but not limited to a lake, trails, and amphitheater) on certain real property which lies within this Urban Renewal Area and which development will further the purposes of the Plan, in addition to Developer’s completion of a 270,000 square foot, multi-building, retail development and related parking in two phases located in the Towne Center Commercial Urban Renewal Area (“Minimum Improvements”). The City expects to make Benchmark Grants to the Developer in connection with Developer’s completion of the Quality of Life Improvements in an amount not to exceed $2,500,000 derived from incremental taxes in this Area, in addition to Economic Development Grants in the form of rebates of incremental taxes generated by that portion of the project located in the Towne Center Commercial Urban Renewal Area in an aggregate amount not to exceed $21,900,000. The Benchmark and Economic Development Grants will be subject to annual appropriation and the detailed terms and conditions in the Agreement. B.Future Development Agreements: The City expects to consider requests for future development agreements for projects that are consistent with the Plan, in the City’s sole discretion. Such agreements are unknown at this time, but based on past history, and dependent on development opportunities and climate, the City expects to consider - 8 - Final incentives as authorized by the Plan, including but not limited to land, loans, grants, rebates, public infrastructure assistance and other incentives. The costs of such development agreements will not exceed $15,000,000 - $60,000,000. C.Planning, engineering fees for planning work, attorney fees, other related costs to support urban renewal projects and planning Project Date Estimated Cost Fees and costs Undetermined Not to exceed $1,000,000 FINANCIAL DATA 1.July 1, 2022, constitutional debt limit:$127,379,974 2.Current outstanding general obligation debt:$101,657,587 3. Proposed amount of indebtedness to be incurred (Amendment No. 6): A specific amount of debt to be incurred for the Eligible Urban Renewal Projects (Amendment No. 6) described in this Amendment has not yet been determined. This document is for planning purposes. The estimated project costs in this Amendment are estimates only and will be incurred and spent over a number of years. In no event will the City’s constitutional debt limit be exceeded. The City Council will consider each project proposal on a case- by-case basis to determine if it is in the City’s best interest to participate before approving an urban renewal project or expense. It is further expected that such indebtedness, including interest on the same, may be financed in whole or in part with tax increment revenues from the Urban Renewal Area. Subject to the foregoing, it is estimated that the cost of the Eligible Urban Renewal Projects (Amendment No. 6) as described above to be funded with tax increment from this Area, and exclusive of the Previously Approved Projects which are itemized above, will be approximately: $18,500,000 – $63,500,000 This estimate does not include financing costs which may be incurred over the life of the Plan REPEALER AND SEVERABILITY Any parts of the Urban Renewal Plan in conflict with this Amendment No. 6, are hereby repealed. In the event one or more provisions contained in the Urban Renewal Plan or this Amendment No. 6 shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any respect, such invalidity, illegality, unauthorization or enforceability shall not affect any other - 9 - Final provision of the Plan or this Amendment No. 6, and the Plan and this Amendment No. 6 shall be construed and implemented as if such provisions had never been contained herein. EFFECTIVE PERIOD This Amendment No. 6 will become effective upon its adoption by the City Council. The Urban Renewal Plan, as amended, shall remain in effect until repealed by the City Council. During the life of the Plan, the City Council may designate by ordinance all or any portion of the property covered by the Plan as a “tax increment area.” With respect to any property covered by this Plan which is included in an ordinance which designates that property as a tax increment area, the use of incremental property tax revenues, or the “division of revenue,” as those words are used in Chapter 403 of the Code of Iowa, is limited to twenty (20) years from the calendar year following the calendar year in which the City first certifies to the County Auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the incremental property tax revenue attributable to the portion of the Area within the ordinance. It is anticipated that separate ordinances for separate tax increment areas may be adopted as development in the Area warrants, in which case each separate tax increment area may have a separate base and separate sunset. The division of revenues shall continue within any tax increment area, for the maximum period allowed by law. - 10 - Final EXHIBIT “A” “Amendment No. 6 Area Removal” – Property to be Removed from Waukee Consolidated Urban Renewal Area Legal Description Parcels 21-95 and 21-96 as recorded in the Plat of Survey recorded in Book 2021, Page 31554, City of Waukee, Dallas County, Iowa (Parcel No. 1603100046, 1603100047, 1604200029, 1604200030, 1604200031); and, PARCEL 'BB' OF THE E1/2 NE1/4 OF SECTION 34, TOWNSHIP 79 NORTH, RANGE 26 WEST OF THE 5TH P.M., AN OFFICIAL PARCEL RECORDED IN BOOK 2012, PAGE 22929 AT THE DALLAS COUNTY RECORDER'S OFFICE, CITY OF WAUKEE, DALLAS COUNTY, IOWA EXCEPT WAUKEE TOWNE CENTER PLAT 1, AN OFFICIAL PLAT RECORDED IN BOOK 2020, PAGE 27825 AT THE DALLAS COUNTY RECORDER'S OFFICE AND FURTHER EXCEPTING THE WARRANTY DEED AND ACQUISITION PLAT RECORDED IN BOOK 2017, PAGE 23499 AT THE DALLAS COUNTY RECORDER'S OFFICE, THAT IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SW CORNER OF SAID PARCEL 'BB'; THENCE N00°00'05"E, 2109.31 FEET ALONG THE WEST LINE OF SAID PARCEL 'BB', SAID WEST LINE ALSO COINCIDES WITH THE EAST LINE OF WESTGATE PLAT 2, AN OFFICIAL PLAT RECORDED IN BOOK 850, PAGE 908 AT THE DALLAS COUNTY RECORDER'S OFFICE, TO THE NE CORNER OF LOT 12 OF SAID WESTGATE PLAT 2, SAID NE CORNER ALSO BEING ON THE SOUTH LINE OF LOT 'A' OF SAID WAUKEE TOWNE CENTER PLAT 1 AND THE SOUTH RIGHT-OF-WAY LINE OF SE LAUREL STREET AS IT IS PRESENTLY ESTABLISHED; THENCE SOUTHEASTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 25.00 FEET AND A CHORD BEARING S61°10'57"E, AN ARC LENGTH OF 27.49 FEET ALONG SAID SOUTH LINE AND SAID SOUTH RIGHT-OF-WAY LINE, TO A POINT OF REVERSE CURVATURE; THENCE EASTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 363.00 FEET AND A CHORD BEARING S59°59'20"E, AN ARC LENGTH OF 384.99 FEET ALONG SAID SOUTH LINE AND SAID SOUTH RIGHT-OF-WAY LINE TO A POINT OF TANGENCY; THENCE N89°37'39"E, 206.67 FEET ALONG SAID SOUTH LINE AND SAID SOUTH RIGHT-OF- WAY LINE TO A POINT OF CURVATURE; THENCE SOUTHEASTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 303.00 FEET AND CHORD BEARING S45°13'32"E, AN ARC LENGTH OF 477.50 FEET ALONG SAID SOUTH LINE AND SAID SOUTH RIGHT-OF-WAY LINE TO A POINT OF TANGENCY; THENCE S00°04'43"E, 393.79 FEET ALONG SAID SOUTH LINE AND SAID SOUTH RIGHT-OF-WAY LINE TO A POINT; THENCE S89°44'09"E, 341.67 FEET ALONG SAID SOUTH RIGHT-OF-WAY LINE TO THE NE CORNER OF OUTLOT 'X' OF SAID WAUKEE TOWNE CENTER PLAT 1; THENCE S44°54’27”E, 49.65 FEET THE EAST LINE OF SAID OUTLOT ‘X’ AND SAID SOUTH RIGHT-OF-WAY LINE TO THE SE CORNER OF SAID OUTLOT 'X', SAID SE CORNER ALSO BEING ON THE WEST RIGHT-OF-WAY LINE OF SE ALICES ROAD AS ESTABLISHED IN SAID WARRANTY DEED AND ACQUISITION PLAT RECORDED IN - 11 - Final BOOK 2017, PAGE 23499 AT THE DALLAS COUNTY RECORDER'S OFFICE; THENCE S00°04'43"E, 1054.37 FEET ALONG SAID WEST RIGHT-OF-WAY LINE TO A POINT OF CURVATURE; THENCE SOUTHEASTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 1001.00 FEET AND A CHORD BEARING S01°54'08"E, AN ARC LENGTH OF 63.71 FEET ALONG SAID WEST RIGHT-OF-WAY LINE TO A POINT OF TANGENCY; THENCE S03°43'32"E, 62.00 FEET ALONG SAID WEST RIGHT-OF-WAY LINE TO A POINT ON THE SOUTH LINE OF SAID PARCEL 'BB', SAID SOUTH LINE ALSO BEING THE SOUTH LINE OF SAID E1/2 NE1/4 OF SECTION 34; THENCE S89°56'09"W, 1237.39 FEET ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING AND CONTAINING 48.03 ACRES MORE OR LESS EXCEPT PARCEL 22-136, AN OFFICIAL PARCEL RECORDED IN BOOK 2022, PAGE 21764 AT THE DALLAS COUNTY RECORDER'S OFFICE, CITY OF WAUKEE, DALLAS COUNTY, IOWA AND CONTAINING 9.05 ACRES MORE OR LESS. (Parcel No. 1234200007). - 12 - Final EXHIBIT “B” “Amendment No. 6 Area Addition” – Property to be Added to Waukee Consolidated Urban Renewal Area Legal Description Lots 2, 3, 6, 7, A, B and C of Williams Pointe Plat 14, an Official Plat, City of Waukee, Iowa (Parcel No. 1235126003, 1235126004, 1235126006, 1235126007, 1235126009); and, Parcel 19-12 as recorded in the Plat of Survey recorded in Book 2019, Page 2401 City of Waukee, Dallas County, Iowa (Parcel No. 1603300016); and, Outlots A and B of Westgate Plat 2, an Official Plat, City of Waukee, Dallas County, Iowa (Parcel No. 1234211008); and, Lots 8 through 11 of Westgate Business Park Plat 2, an Official Plat, City of Waukee, Dallas County, Iowa (Parcel No. 1234476001, 1234476002, 1234476007). - 13 - Final