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HomeMy WebLinkAbout2018-02-05-I01 Waukee Central Urban Renewal Plan Amendment 1_PH AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: February 5, 2018 AGENDA ITEM: Public hearing on a proposed Amendment No. 1 to the Waukee Central Urban Renewal Plan in the City of Waukee, State of Iowa. FORMAT: Public Hearing SYNOPSIS INCLUDING PRO & CON: The City Council approved a resolution for the creation of an urban renewal plan for the Waukee Central Urban Renewal Area in October 2017. The property included within the Urban Renewal Area is generally the property that is owned by Deery Brothers for purposes of constructing a new car dealership. Included within the narrative of the adopted plan was language related to a proposed development agreement with Deery Brothers related to reimbursement of costs associated with the construction of 10th Street adjacent to the project. Since the creation of the Urban Renewal Plan, the terms of the proposed development agreement have changed slightly. The proposed amendment to the Waukee Central Urban Renewal Plan would include revised terms of the proposed development agreement with Deery Brothers associated with the 10th Street improvements. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff held the required consultation hearing on January 9, 2018. No one attended the meeting. The proposed amendment is consistent with a development agreement that is being proposed related to improvements to 10th Street being completed as a part of the Deery Brothers project. RECOMMENDATION: Hold the Public Hearing ATTACHMENTS: I. Amendment #1 to the Waukee Central Urban Renewal Plan PREPARED BY: Brad Deets REVIEWED BY: PUBLIC NOTICE INFORMATION – I1 NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: 1/18/18 Final AMENDMENT NO. 1 to the WAUKEE CENTRAL URBAN RENEWAL PLAN for the WAUKEE CENTRAL URBAN RENEWAL AREA WAUKEE, IOWA Original Plan - October 2017 Amendment No. 1 – February 2018 Final TABLE OF CONTENTS PAGE I. Introduction 3 II. Update to Previously Approved Urban Renewal Project 3 III. Updated Financial Data 4 IV. Development Plan 4 V. Severability Clause 5 Final - 3 - AMENDMENT NO. 1 to WAUKEE CENTRAL URBAN RENEWAL PLAN CITY OF WAUKEE, IOWA I. INTRODUCTION The Waukee Central Urban Renewal Plan ("Plan" or “Urban Renewal Plan”) for the Waukee Central Urban Renewal Area ("Area" or "Urban Renewal Area") was originally adopted in 2017 and is being amended by this Amendment No. 1 to update the list of eligible projects. This Amendment adds no new land to the Area. Except as modified by this Amendment, the provisions of the original Waukee Central Urban Renewal Plan is 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 control. Any subsections in the original Plan not mentioned in this Amendment shall continue to apply to the Plan, as amended. II. UPDATE TO PREVIOUSLY APPROVED URBAN RENEWAL PROJECT One of the projects identified in the original Plan involved a Development Agreement (the "Agreement") with The Rose Companies (the “Developer”) and Deery, Deery & Deery, LLC (the "Employer"). The Agreement would obligate the Developer to construct certain Public Improvements (as defined in the Agreement) on certain property with the Area (“Development Property”). The Agreement would further obligate the Developer to complete Minimum Improvements (as defined in the Agreement) on a portion of the Development Property, including construction of a new 38,975 square foot building and associated paved lot to be used for a car dealership with cost for construction estimated to be $6,500,000.00. The Agreement would further obligate the Employer to employ employees at the Minimum Improvements. After further discussions surrounding the anticipated costs related to the Public Improvements, the obligation for the City under the proposed Development Agreement has been adjusted so that the Agreement would obligate the City to make seven (7) annual payments (instead of five payments as set forth in the original Plan) of Economic Development Grants to Developer, each consisting of 100% of the Tax Increments pursuant to the Iowa Code Section 403.19 and generated by the construction of the Minimum Improvements, under the terms and following satisfaction of the conditions set forth in the Agreement, up to a cumulative total for all such payments to Developer not to exceed the lesser of the cost of the Public Improvements or $950,000 (instead of $910,000 as set forth in the original Plan). Final - 4 - III. UPDATED FINANCIAL DATA 1. July 1, 2017, constitutional debt limit: $80,529,812 2. Current outstanding general obligation debt: $61,424,472 3. Proposed amount of indebtedness to be incurred (Amendment No. 1): A specific amount of debt to be incurred for the Updated Project 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 Updated Project as described above will be approximately: $950,000 IV. DEVELOPMENT PLAN Waukee has a general plan for the physical development of the City as a whole outlined in the Waukee Comprehensive Plan, adopted by the City on March 10, 2008, and last amended in September 2017. The goals and objectives of the Urban Renewal Plan, as amended, including the Updated Project descried above, are in conformity with the City’s Comprehensive Plan. The Urban Renewal Area is currently zoned commercial. The Urban Renewal Plan, as amended, does not in any way replace or modify 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. Final - 5 - V. SEVERABILITY CLAUSE If any part of the Amendment is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan as a whole, or any part of the Plan or this Amendment not determined to be invalid or unconstitutional. 01435664-1\21938-150