HomeMy WebLinkAbout2017-10-16-H04 Southwest Business Park Urban Renewal Plan_PH AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: October 16, 2017
AGENDA ITEM: Public Hearing on a proposed Urban Renewal Plan for a Southwest
Business Park Urban Renewal Area in the City of Waukee, State of
Iowa.
FORMAT: Public Hearing
SYNOPSIS INCLUDING PRO & CON: The City has previously approved plans related to the
Interstate 80 Business Park which is located on the southwest corner of
Interstate 80 and R-22 (Ute Avenue). The proposed business park is
consistent with the City’s vision and goals of creating opportunities for
development.
The City has been working on a development agreement with the
property owner of the Interstate 80 Business Park related to the public
improvements associated with the extension of the public street that runs
parallel to Interstate 80 and services the lots within the development.
In order to proceed forward with a development agreement related to this
property, the City must first establish an Urban Renewal Plan which
incorporates the property that would be included within the development
agreement.
City staff in coordination with bond counsel has completed the proposed
Southwest Business Park Urban Renewal Area which includes all of the
area within the Interstate 80 Business Park development.
The proposed Southwest Business Park Urban Renewal Plan includes
objectives, types of urban renewal activities as well as eligible projects
currently contemplated within the plan area.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT: The Planning and Zoning
Commission reviewed the request on October 10, 2017 and
recommended approval:
Approval of the Southwest Business Park Urban Renewal Plan
Development Services Director, Brad Deets, explained the business park located at the
southwest corner of the intersection of Interstate 80 and R-22 (Ute Avenue) meets one of
the goals and priorities of the City Council related to the development of available land for
business park uses including logistics, warehousing and light manufacturing. Mr. Deets
explained that city staff has been working with the property owner on a development
agreement related to rebate of a portion of the public infrastructure that is being constructed
to serve the proposed business park. Per the terms of the development agreement, the
property owner would be reimbursed for a portion of the public improvements based upon
taxes that are generated from the property within the proposed development.
Mr. Deets explained that in order to finalize the agreement and have the ability to offer
incentives to the project, the property must be included within an Urban Renewal
Plan/Area. The proposed Southwest Business Park Urban Renewal Plan includes only the
property that is currently a part of Phase 1 of the Interstate 80 Business Park. Mr. Deets
explained that in the future it may include additional property.
Mr. Deets went over the objectives and types of urban renewal activities that are inclu ded
within the Southwest Business Park Urban Renewal Plan. He also discussed eligible
projects currently contemplated within the plan area.
The City Council has scheduled a Public Hearing for October 16, 2017 to further discuss
the matter. Staff recommends approval of the proposed Southwest Business Park Urban
Renewal Plan.
There was a brief discussion about how TIF districts work and the 20 year timeline. Mr.
Deets explained that the Urban Renewal Plan allows the City to enter into a development
agreement with the developers.
Commissioner Hoifeldt asked if the property located on the north side of Interstate 80 is
also in and urban renewal plan. Mr. Deets explained that it is not currently in and urban
renewal plan.
Commissioner Broderick asked how many acres this urban renewal plan includes. Mr.
Deets stated that it includes approximately 26 acres.
Commissioner Hoifeldt asked what the statement, “The cost of the economic development
grants to employer shall not exceed $150,000.”, refers to on page 7 of the document. Mr.
Deets explained that it specifically relates to RJ’s project.
Commissioner Fontentot asked what the purposed of the Urban Renewal Plan is and if it’s
necessary here since there’s not a lot of development around this area. Mr. Deets explained
that the purpose is to create business park development. The City Council approved an
incentive plan to businesses for different items including creating jobs. He explained that
incentives cannot be provided without the Urban Renewal Plan and that it allows for TIF
to be used.
Commissioner Fontenot asked if there is a jobs number tied to the 26 acres. Mr. Deets
explained that there is a job number tied to the development agreement with RJ’s and that
number is 35 employees.
Commissioner Fontenot expressed his concerns with the overuse of TIF and there was a
brief discussion on how TIF is used. Mr. Deets described that the City does not like to use
TIF for residential districts and that we use it to fund public improvement projects.
Commissioner Tietz moved to approve the Southwest Business Park Urban Renewal
Plan. Commissioner Fontenot seconded the motion. Ayes: Stonebrook, Fontenot, Streit,
Broderick, Hoifeldt, Tietz, and Schmidt. Nays: None. Motion Carries.
STAFF REVIEW AND COMMENT: In accordance with State Code, staff has held a
consultation with the other taxing entities affected by this plan and the
plan has been reviewed by the Planning and Zoning Commission.
RECOMMENDATION: Hold the Public Hearing
ATTACHMENTS: I. Consultation Report
II. Planning and Zoning Commission Report
III. Proposed Southwest Business Park Urban Renewal Plan
PREPARED BY: Brad Deets, Development Services Director
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION: Dallas County News
DATE OF PUBLICATION: September 28, 2017
Development Services Department
230 W. Hickman Road
Waukee, IA 50263
Phone: (515) 978-9533
Fax: (515) 987-1845
Minutes of the Southwest Business Park Urban Renewal Plan
Consultation Meeting
City staff held a consultation regarding the proposed Southwest Business Park Urban Renewal
Plan on Monday, September 25, 2017 at 2:00 PM at Waukee City Hall East Conference Room.
Notices of the consultation were mailed on September 19, 2017 to representatives of the Dallas
County Board of Supervisors and Van Meter Community School District.
No one was in attendance at the consultation and staff closed the meeting at 2:05 PM.
Brad Deets
Development Services Director
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SOUTHWEST BUSINESS PARK URBAN
RENEWAL PLAN
for the
SOUTHWEST BUSINESS PARK
URBAN RENEWAL AREA
WAUKEE, IOWA
October 2017
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TABLE OF CONTENTS
SECTION
A. INTRODUCTION
B. DESCRIPTION OF THE URBAN RENEWAL AREA
C. AREA DESIGNATION
D. BASE VALUE
E. DEVELOPMENT PLAN
F. PLAN OBJECTIVES
G. TYPE OF RENEWAL ACTIVITIES
H. PROPOSED PROJECTS
I. FINANCIAL DATA
J. AGREEMENT TO INCLUDE AGRICULTURAL LAND
K. URBAN RENEWAL FINANCING
L. PROPERTY ACQUISITION/DISPOSITION
M. RELOCATION
N. STATE AND LOCAL REQUIREMENTS
O. URBAN RENEWAL PLAN AMENDMENTS
P. EFFECTIVE PERIOD
Q. SEVERABILITY
EXHIBITS
A. LEGAL DESCRIPTION OF AREA
B. URBAN RENEWAL AREA MAP
C. AGREEMENT TO INCLUDE AGRICULTURAL LAND
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Urban Renewal Plan
Southwest Business Park Urban Renewal Area
City of Waukee, Iowa
A. INTRODUCTION
This Southwest Business Park Urban Renewal Plan (“Plan” or “Urban Renewal
Plan”) has been developed to help local officials promote economic development
in the City of Waukee. The primary goal of the Plan is to stimulate, through public
involvement and commitment, private investment in new commercial and light
industrial development.
In order to achieve this objective, Waukee (the “City”) intends to undertake Urban
Renewal activities pursuant to the powers granted to it under Chapter 403 and
Chapter 15A of the Code of Iowa, as amended.
B. DESCRIPTION OF THE URBAN RENEWAL AREA
The Southwest Business Park Urban Renewal Area (“Area” or “Urban Renewal
Area”) is described in Exhibit A and illustrated in Exhibit B.
The City reserves the right to modify the boundaries of the Area at some future
date.
C. AREA DESIGNATION
With the adoption of this Plan, the City of Waukee designates this Southwest
Business Park Urban Renewal Area as an economic development district that is
appropriate for the promotion of new commercial and light industrial development.
D. BASE VALUE
If the Southwest Business Park Urban Renewal Area is legally established, a Tax
Increment Financing (TIF) Ordinance is adopted and debt is certified prior to
December 1, 2017, the taxable valuation within the area included in the TIF
Ordinance as of January 1, 2016 will be considered the frozen “base valuation.” If
debt is not certified until a later date or if a TIF ordinance is not adopted until later,
the “base value” will be the assessed value of the taxable property within the TIF
Ordinance area as of January 1 of the calendar year preceding the calendar year in
which the City first certifies the amount of any debt on the Area.
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E. 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 this Urban
Renewal Plan, including the urban renewal projects, are in conformity with the
City’s Comprehensive Plan.
The Urban Renewal Area is currently zoned commercial and light industrial. This
Urban Renewal Plan 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.
F. PLAN OBJECTIVES
Renewal activities are designed to provide opportunities, incentives, and sites for
new commercial and light industrial development within the district. More
specific objectives for development within the Southwest Business Park Urban
Renewal Area are as follows:
1. To achieve a diversified, well-balanced economy providing a
desirable standard of living, creating job opportunities, and
strengthening the tax base.
2. To plan for and provide sufficient land for commercial and industrial
development in a manner that is efficient from the standpoint of
providing municipal services.
3. To provide for the installation of public works and facilities
including, but not limited to, water, sanitary sewer and other public
improvements, which contribute to the revitalization of the area and
to the sound development of the entire City.
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4. To encourage commercial and industrial growth and expansion
through governmental policies which make it economically feasible
to do business.
5. To provide a more marketable and attractive investment climate
through the use of various federal, state and local incentives.
6. To stimulate, through public action and commitment, private
investment in new and existing commercial and/or industrial
development.
7. To improve the conditions and opportunities for economic
development, both commercial and industrial.
8. To help develop a sound economic base that will serve as the
foundation for future growth and development.
9. To improve recreational, tourism, cultural, and educational
opportunities.
10. To enhance the Waukee community by fostering an entrepreneurial
climate, diversifying the local economy, encouraging opportunities
for new businesses, and supporting retention of existing businesses.
G. TYPE OF RENEWAL ACTIVITIES
To meet the objectives of this Urban Renewal Plan and to encourage the
development of the Area, the City intends to utilize the powers conferred under
Chapter 403 and Chapter 15A, Code of Iowa including, but not limited to, tax
increment financing. Activities may include:
1. New, rehabilitated, converted, or expanded industrial uses within the
Area.
2. New, rehabilitated, converted, or expanded commercial uses within the
Area.
General development activities by the City in the Southwest Business Park Urban
Renewal Area may include:
1. To undertake and carry out urban renewal projects through the
execution of contracts and other instruments.
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2. To arrange for or cause to be provided the construction or repair of
public infrastructure, including but not limited to streets, storm water
drainage, sanitary sewer, water, sidewalks, street lights, parks and open
spaces, recreational trails or facilities, landscaping, public utilities or
other related facilities in connection with urban renewal projects.
3. To provide for the construction of specific site improvements such as
grading and site preparation activities, access roads and parking,
fencing, utility connections, and related activities.
4. To make loans, forgivable loans, tax rebate payments or other types of
economic development grants or incentives to private persons or
businesses for economic development purposes on such terms as may
be determined by the City Council.
5. To use tax increment financing to facilitate urban renewal projects,
including but not limited to, actions to achieve a more marketable and
competitive land offering price and to provide for necessary physical
improvements and infrastructure.
6. To borrow money and to provide security therefor.
7. To make or have made surveys and plans necessary for the
implementation of the Urban Renewal Program or specific urban
renewal projects.
8. To acquire property through a variety of means (purchase, lease, option,
etc.) and to hold, clear, or prepare the property for redevelopment.
9. To dispose of property so acquired.
10. To use any or all other powers granted by the Urban Renewal Act to
develop and provide for improved economic conditions for the City of
Waukee and the State of Iowa.
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 this Urban Renewal Plan.
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H. PROPOSED PROJECTS
Although certain project activities may occur over a period of years, the Proposed
Urban Renewal Projects under this Plan include:
1) Development Agreements:
a. Agreement with 117 Land Company LLC and RJ Landscaping. The
City anticipates entering into a Development Agreement (the "Agreement") with
117 Land Company, LLC (the “Developer”) and RJ Landscaping (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
Employer to complete Minimum Improvements (as defined in the Agreement) on a
portion of the Development Property, and to employ employees therein. The
Agreement would obligate the City to make two (2) annual payments of Economic
Development Grants to Employer and eight (8) annual payments 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. The Agreement contemplates additional
Economic Development Grants to Developer as additional parcels of the
Development Property develops, up to a cumulative total for all such payments to
Developer not to exceed the lesser of the cost of the Public Improvements or
$1,150,000. The cost of the Economic Development Grants to Employer shall not
exceed $150,000.
b. Future 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 incentives as authorized by this 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
$2,500,000.
2) Related Planning Costs:
Planning, engineering fees for planning work, and legal fees to support
proposed urban renewal projects are estimated not to exceed $50,000
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I. 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:
A specific amount of debt to be incurred for the
Proposed Urban Renewal Projects has not yet been
determined. This document is for planning
purposes. The estimated project costs in this Plan
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 Proposed Urban
Renewal Projects as described above will be
approximately:
$3,850,000
J. AGREEMENT TO INCLUDE AGRICULTURAL LAND
Agricultural land owners affected by the Waukee West Urban Renewal Area have
entered into an agreement in which they have agreed to allow the City to include
their real property defined as “Agricultural Land” in the Urban Renewal Area in
accordance with Iowa Code Section 403.17(3). A copy of the agreement of each
agricultural land owner within the Urban Renewal Area has signed is attached as
Exhibit C. The original signed agreements are on file at the City Clerk’s office.
K. URBAN RENEWAL FINANCING
The City of Waukee intends to utilize various financing tools such as those
described below to successfully undertake the proposed urban renewal actions.
The City of Waukee has the statutory authority to use a variety of tools to finance
physical improvements within the Area. These include:
A. Tax Increment Financing
Under Section 403.19 of the Iowa Code, urban renewal areas may
utilize the tax increment financing mechanism to finance the costs of
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public improvements or economic development incentives associated
with redevelopment 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. The increased taxes generated
by any new development, above the base value, are distributed to the
taxing entities, if not requested by the City.
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 in connection with urban renewal projects
for commercial or industrial development or other urban renewal
projects. 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 Areas.
Alternatively, the City may determine to use available funds for
making such loans or grants for urban renewal projects. In any
event, the City may determine to use tax increment financing to
reimburse the City for any obligations or advances.
B. General Obligation Bonds
Under Division III of Chapter 384 and Chapter 403 of the Iowa
Code, 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 or incentives for development
consistent with this Plan. Such bonds are payable from the levy of
unlimited ad valorem taxes on all the taxable property within the
City of Waukee. 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.
C. Other City Lawful Powers
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 this Urban
Renewal Plan.
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L. PROPERTY ACQUISITION/DISPOSITION
If property acquisition/disposition becomes necessary to accomplish the objectives
of the Plan, urban renewal powers will be carried out, without limitation, in
accordance with the State of Iowa Urban Renewal Law.
M. RELOCATION
The City does not expect there to be any relocation required of residents or
businesses as part of the Proposed Urban Renewal Projects; however, if any
relocation is necessary, the City will follow all applicable relocation requirements.
N. STATE AND LOCAL REQUIREMENTS
All provisions necessary to conform to state and local laws will be complied with
by the City and the developer in implementing this Urban Renewal Plan and its
supporting documents.
O. URBAN RENEWAL PLAN AMENDMENTS
This Urban Renewal Area Plan may be amended from time to time for a number of
reasons, including but not limited to, change in the Area, to add or change land use
controls and regulations, to modify goals or types of renewal activities, or to
amend property acquisition and disposition provisions. The City Council may
amend this Plan pursuant to appropriate procedures under Iowa Code Chapter 403.
P. EFFECTIVE PERIOD
This Urban Renewal Plan will become effective upon its adoption by the City
Council and will remain in effect as a Plan until it is repealed by the City Council.
With respect to the property included within the Southwest Business Park Urban
Renewal Area, which is also 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 beginning with the first 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 revenues attributable to that property
within a TIF ordinance of the Southwest Business Park Urban Renewal Area. The
division of revenues shall continue on the Urban Renewal Area for the maximum
period allowed by law.
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It is also anticipated that separate TIF ordinances for separate parcel(s) may be
adopted as development in the Area warrants. In this case, each separate TIF
ordinance may have a separate base and separate sunset or expiration date.
At all times, the use of tax increment financing revenues (including the amount of
loans, advances, indebtedness or bonds which qualify for payment from the
division of revenue provided in Section 403.19 of the Code of Iowa) by the City
for activities carried out under the Southwest Business Park Urban Renewal Area
shall be limited as deemed appropriate by the City Council and consistent with all
applicable provisions of law.
Q. SEVERABILITY
If any part of the Plan is determined to be invalid or unconstitutional, such
invalidity or unconstitutionality shall not affect the validity of the Plan as a whole,
or any part of the Plan not determined to be invalid or unconstitutional.
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EXHIBIT A
LEGAL DESCRIPTION OF AREA
The Southwest Business Park Urban Renewal Area is described as follows:
DEED RECORDED IN BOOK 2017 PAGE 4888
LOT THREE (3) OF THE AUDITOR'S PLAT OF THAT PART OF THE
NORTHWEST QUARTER (NW1/4) OF THE NORTHWEST QUARTER (NW1/4) OF
SECTION 17 IN TOWNSHIP 78 NORTH, OF RANGE 26 WEST OF THE 5TH P.M.,
DALLAS COUNTY, IOWA, EXCEPT COMMENCING AT THE NW CORNER OF
SEC. 17-T78N-R26W OF THE 5TH P.M., DALLAS COUNTY, IOWA, THENCE S
00°00' 658.43 FEET ALONG THE SECTION LINE TO THE POINT OF BEGINNING,
THENCE CONTINUING S 00°00' 87.17 FEET, THENCE S 89°12'E 382.70 FEET,
THENCE S 06°12'E 130.00 FEET, THENCE S 84°35'E 225.61 FEET, THENCE N
02°55'W 30.62 FEET, THENCE N 73°50'E 338.22 FEET, THENCE N 02°55'W 128.79
FEET, THENCE N 73°50'E 400.92 FEET TO THE CENTERLINE OF A COUNTY
ROAD, THENCE N 00°50'E 75.00 FEET ALONG SAID CENTERLINE, THENCE S
73°50'W 423.54 FEET, THENCE N 02°55'W 568.48 FEET TO THE SOUTH RIGHT
OF WAY LINE OF INTERSTATE NO. 80, THENCE N 85°04'W 315.13 FEET ALONG
SAID RIGHT OF WAY LINE, THENCE S 02°55'E 676.50 FEET, THENCE N 89°50'W
609.02 FEET TO THE POINT OF BEGINNING;
PARCEL "A" OF THE SURVEY OF ALL OF LOT 4 AND PART OF LOT 3 OF THE
AUDITOR'S PLAT OF THE NW 1/4 OF THE NW 1/4 OF SECTION 17, TOWNSHIP
78 NORTH, RANGE 26 WEST OF THE 5TH P.M., ALL BEING IN AND FORMING
A PART OF THE CITY OF WAUKEE, DALLAS COUNTY, IOWA, AS SHOWN IN
BOOK 2004, PAGE 5051, IN THE OFFICE OF THE RECORDER OF DALLAS
COUNTY. IOWA.
INCLUDES PARCEL #1617100001, 1617100027
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EXHIBIT C