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HomeMy WebLinkAbout2025-03-03 G02 Waukee Unified Amendment No 15 URA_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: March 3, 2025 AGENDA ITEM:Public Hearing on a proposed Amendment No. 15 to the Waukee Unified Urban Renewal Plan in the City of Waukee, State of Iowa FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: Each year, staff reviews the various urban renewal plans within the City. For Amendment No. 15 to the Unified Urban Renewal Plan, staff are recommending changes that include the addition of certain properties to the plan and updates to the financial information. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff held a consultation meeting on February 10, 2025 for the County and the affected school district(s) in the Plan area to review the proposal. However, no one attended the meeting and no comments were received. RECOMMENDATION: Hold the Public Hearing ATTACHMENTS: I. Proposed Unified Urban Renewal Plan Amendment No. 15 II. Public Hearing Notice PREPARED BY:Jennifer Brown, Economic Development Director REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: February 27, 2025 G2 Final Version WAUKEE UNIFIED URBAN RENEWAL PLAN AMENDMENT #15 CITY OF WAUKEE, IOWA Amendment #1 – 2011 Amendment #2 – 2011 Amendment #3 – 2012 Amendment #4 – 2013 Amendment #5 – 2014 Amendment #6 - 2015 Amendment #7 – 2016 Amendment #8 - 2018 Amendment #9 – 2019 Amendment #10 – 2020 Amendment #11 – 2021 Amendment #12 -2022 Amendment #13 – 2023 Amendment #14 – 2024 Amendment #15 - 2025 2 Final Version AMENDMENT #15 to WAUKEE UNIFIED URBAN RENEWAL PLAN CITY OF WAUKEE, IOWA INTRODUCTION Amendment #1 to the Waukee Unified Urban Renewal Plan (“Plan” or “Unified Plan”) for the Waukee Unified Urban Renewal Area (“Area” or “Unified Area”), adopted in 2011 and subsequently amended fourteen times, is being further amended by this Amendment # 15 to the Plan (“Amendment No. 15” or “Amendment”) to add and remove property from the Area to the extent described hereinafter, and to add and/or confirm the list of proposed projects to be undertaken within the Area. Except as modified by this Amendment No. 15, the provisions of the 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 No. 15 shall control. Any subsections not mentioned in this Amendment No. 15 shall continue to apply to the Plan, as previously amended. DESCRIPTION OF AREA The legal description of the property being removed from the Urban Renewal Area by this Amendment No. 15 is attached hereto as Exhibit “A” and referred to herein as the “Amendment No. 15 Removal Area”. The legal description of the property being added to the Urban Renewal Area by this Amendment No. 15 is also included in Exhibit “A” and referred to herein as the “Amendment No. 15 Addition Area”. A map of the Area showing the Amendment No. 15 Removal Area and Amendment No. 15 Addition Area is attached as Exhibit “B”. A map of the Area after the changes made by this Amendment No. 15 is attached as Exhibit “C”. AREA DESIGNATION The Area continues to be a mixed area in which blight conditions exist and an economic development area that is appropriate for the promotion of new commercial and industrial development. BASE VALUE The Amendment No. 15 Addition Area is public right of way, will not be added to the Tax Increment Financing (“TIF”) Ordinance, and therefore it will not have a base value for TIF purposes. The Amendment No. 15 Removal Area has already been removed from the TIF Ordinance. Nothing in this Amendment otherwise affects other already established frozen base values for any other subarea. 3 Final Version DEVELOPMENT PLAN/ZONING Waukee has a general plan for the physical development of the City as a whole outlined in the Imagine Waukee 2040 Comprehensive Plan, adopted on April 1, 2019. The goals and objectives of the Plan, as amended by this Amendment No. 15, including the projects outlined herein, are in conformity with the Comprehensive Plan. 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. PREVIOUSLY APPROVED URBAN RENEWAL PROJECTS Numerous urban renewal projects were authorized prior to the date of this Amendment and are continuing. Such projects are not listed in this Amendment but consist of a variety of urban renewal projects that are not being altered by this Amendment. ELIGIBLE URBAN RENEWAL PROJECTS (Amendment No. 15) Although certain project activities may occur over a period of years, the eligible urban renewal projects under this Amendment No. 15 include: 1. Public Improvements Project Description Estimated Project Timeframe Estimated Cost of Tax Increment Not to Exceed Rationale Alice’s Road expansion Phase 1A and 1B and Douglas Parkway intersection improvements. 2025 -2028 $7,500,000 - $8,500,000 Road and utility improvements to improve safety and traffic flow to advance economic development Total $7,500,000 - $8,500,000 2. Development Agreements A.Development Agreements: The City expects to consider requests for development agreements for projects that are consistent with this 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 a broad range of 4 Final Version incentives as authorized by this Plan, including but not limited to land, loans, grants, tax rebates, infrastructure assistance and other incentives. The costs of such development agreements will not exceed $10,000,000. 3. Planning, engineering fees (for urban renewal plans), 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.Current constitutional debt limit:$215,542,750 2.Current outstanding general obligation debt:$164,173,921 3. Proposed amount of indebtedness to be incurred (Amendment No. 15): A specific amount of debt to be incurred for the Eligible Urban Renewal Projects (Amendment No. 15) 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. 15) as described above to be funded with tax increment from this Area, and exclusive of the Previously Approved Urban Renewal Projects which are not itemized herein,will be approximately: $18,500,000- $19,500,000 (This amount does not include costs related to financing which may be incurred over the life of the Area.) URBAN RENEWAL FINANCING The City intends to utilize various financing tools, such as those described below to successfully undertake the proposed urban renewal actions. The City has the statutory authority to use a variety of tools to finance physical improvements within the Area, as amended. These include: A.Tax Increment Financing. Under Section 403.19 of the Code of Iowa, urban renewal areas may utilize the tax increment financing mechanism to finance the costs of public improvements, economic development incentives or other urban renewal projects. Upon creation of a tax increment district within the Area, by ordinance, the assessment base is frozen and the amount of tax revenue available from taxes paid on the difference between the frozen base and the increased value, if any, is segregated into a separate fund for the use by the City to pay costs of the eligible urban renewal projects. Certain 5 Final Version increased taxes generated by any new development, above the base value, are distributed to the taxing entities, if not requested by the City, and in any event upon the expiration of the tax increment district. B.General Obligation Bonds. Under Division III of Chapter 384 and Chapter 403 of the Code of Iowa, the City has the authority to issue and sell general obligation bonds for specified essential and general corporate purposes, including the acquisition and construction of certain public improvements within the Area, as amended, and for other urban renewal projects or incentives for development consistent with this Plan, as amended. Such bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the City. It may be the City will elect to abate some or all of the debt service on these bonds with incremental taxes from this Area, as amended. The City may also determine to use tax increment financing to provide incentives such as cash grants, loans, tax rebates or other incentives to developers or private entities in connection with the urban renewal projects identified in the Plan, as amended. In addition, the City may determine to issue general obligation bonds, tax increment revenue bonds or such other obligations, or loan agreements for the purpose of making loans or grants of public funds to private businesses located in the Area for urban renewal projects. Alternatively, the City may determine to use available funds for making such loans or grants or other incentives related to urban renewal projects. In any event, the City may determine to use tax increment financing to reimburse the City for any obligations or advances. Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 427B, or any other provision of the Code of Iowa in furtherance of the objectives of the Plan. EFFECTIVE PERIOD This Amendment No. 15 will become effective upon its adoption by the City Council and will remain in effect until it is repealed by the City Council. Notwithstanding anything to the contrary in the Plan, any prior amendment, resolution, or document, the Plan, as amended, shall remain in effect until terminated by the City Council. 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, will be consistent with Chapter 403 of the Iowa Code. Nothing in this Amendment shall alter the duration of the division of revenue as previously explained in the Plan, as previously amended. REPEALER AND SEVERABILITY CLAUSE Any parts of the previous Plan, as previously amended, in conflict with this Amendment are hereby repealed. If any part of this Amendment or the Plan, as previously amended, is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the 6 Final Version Amendment or the Plan as a whole, or any part of the Amendment or the Plan not determined to be invalid or unconstitutional. 7 Final Version EXHIBIT A “Amendment No. 15 Removal Area” – Property to be Removed from Waukee Unified Urban Renewal Area Area to be removed from Waukee Unified Urban Renewal Area (2003) Parcel B Lot 1 Hawthorne Ridge Plat 1 an Official Plat, City of Waukee, Dallas County, Iowa (Parcel No. 1235477011) “Amendment No. 15 Addition Area” – Property to be Added to Waukee Unified Urban Renewal Area The West Half of NE Alice’s Road right of way and that portion of the East half of NE Alice’s Road lying within the corporate boundary of the City of Waukee from the center right of way line of NE Boston Pkwy to the north right of way line of Douglas Parkway, City of Waukee, Dallas County, Iowa. Said right of way includes the following parcels: The Crossing at Alice’s Road Plat 1 Lots A & B (Streets) City of Waukee, Dallas County, Iowa (Parcel No. 1227401003); and, Alice Patricia Homes Lots A, B & C (Street), City of Waukee, Dallas County, Iowa (Parcel No. 1227277001); and, Landing at Shadow Creek Plat 4 Lots A, B, C & D (Streets), City of Waukee, Dallas County, Iowa (Parcel No. 1227226022) 8 Final Version EXHIBIT B Map of Waukee Unified Urban Renewal Area, Showing Amendment No. 15 Changes 9 Final Version EXHIBIT C Map of Waukee Unified Urban Renewal Area, Showing Area After Amendment No. 15 Changes (One publication required) NOTICE OF PUBLIC HEARING TO CONSIDER APPROVAL OF A PROPOSED AMENDMENT NO. 15 TO THE WAUKEE UNIFIED URBAN RENEWAL PLAN FOR AN URBAN RENEWAL AREA IN THE CITY OF WAUKEE, STATE OF IOWA The City Council of the City of Waukee, State of Iowa, will hold a public hearing before itself at its meeting which commences at 5:30 P.M. on March 3, 2025 in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, to consider adoption of a proposed Amendment No. 15 to the Waukee Unified Urban Renewal Plan (the "Amendment") concerning an Urban Renewal Area in the City of Waukee, State of Iowa. The Amendment proposes to add and remove property from the Urban Renewal Area as follows: Property to be Removed by Amendment No. 15: Area to be removed from Waukee Unified Urban Renewal Area (2003) Parcel B Lot 1 Hawthorne Ridge Plat 1 an Official Plat, City of Waukee, Dallas County, Iowa (Parcel No. 1235477011) Property to be Added by Amendment No. 15: The West Half of NE Alice’s Road right of way and that portion of the East half of NE Alice’s Road lying within the corporate boundary of the City of Waukee from the center right of way line of NE Boston Pkwy to the north right of way line of Douglas Parkway, City of Waukee, Dallas County, Iowa. Said right of way includes the following parcels: The Crossing at Alice’s Road Plat 1 Lots A & B (Streets) City of Waukee, Dallas County, Iowa (Parcel No. 1227401003); and, Alice Patricia Homes Lots A, B & C (Street), City of Waukee, Dallas County, Iowa (Parcel No. 1227277001); and, Landing at Shadow Creek Plat 4 Lots A, B, C & D (Streets), City of Waukee, Dallas County, Iowa (Parcel No. 1227226022) A copy of the Amendment is on file for public inspection in the office of the City Clerk, City Hall, City of Waukee, Iowa. The City of Waukee, State of Iowa is the local public agency which, if such Amendment is approved, shall undertake the urban renewal activities described in such Amendment. The general scope of the urban renewal activities under consideration in the Amendment is to promote economic development and to rehabilitate, conserve and redevelop land, buildings and other improvements within such area through the elimination and containment of conditions of blight so as to improve the community through the establishment of effective land use controls, through use of an effective program of rehabilitation of existing buildings and elimination of those structures which cannot be economically rehabilitated, with a limited amount of acquisition, clearance, resale and improvement of land for various purposes specified in the Amendment. To accomplish the objectives of the Amendment, and to encourage the further economic development of the Urban Renewal Area, the Amendment provides that such special financing activities may include, but not be limited to, the making of loans or grants of public funds to private entities under Chapter 15A, Code of Iowa. The City also may reimburse or directly undertake the installation, construction and reconstruction of substantial public improvements, including, but not limited to, street, water, sanitary sewer, storm sewer or other public improvements. The City also may acquire and make land available for development or redevelopment by private enterprise as authorized by law. The Amendment provides that the City may issue bonds or use available funds for purposes allowed by the Plan and that tax increment reimbursement of the costs of urban renewal projects may be sought if and to the extent incurred by the City. The Amendment initially proposes specific public infrastructure or site improvements to be undertaken by the City, and provides that the Amendment may be amended from time to time. The proposed Amendment No. 15 would add and remove property from the Area and add and/or confirm the list of proposed projects to be undertaken within the Area. Other provisions of the Plan not affected by the Amendment would remain in full force and effect. Any person or organization desiring to be heard shall be afforded an opportunity to be heard at such hearing. This notice is given by order of the City Council of the City of Waukee, State of Iowa, as provided by Section 403.5, Code of Iowa. Dated this 3rd day of February, 2025. Rebecca D. Schuett City Clerk, City of Waukee, State of Iowa (End of Notice)