HomeMy WebLinkAbout2016-11-21-H01 Waukee Unified URA Amendment 7 - PH AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: November 21, 2016
AGENDA ITEM: Public Hearing on a proposed Amendment No. 7 to the Waukee Unified
urban Renewal Plan in the City of Waukee, State of Iowa
FORMAT: Public Hearing
SYNOPSIS INCLUDING PRO & CON: The City Council adopted a Unified Urban
Renewal Plan in 2011. The objective of the Unified Plan was to
consolidate and link the urban renewal areas that had previously been
approved in the past in order to maximize the future expenditure of
incremental property tax revenues necessary to promote economic
development.
The purpose of the proposed Amendment #7 to the Waukee Unified Urban
Renewal Plan is to remove two areas of property that has not been
developed to date. Both areas will be incorporated into new Urban
Renewal Areas over time as interest in development of the property
occurs. Other modifications to the document include updates to the list of
projects that increment from the district could be utilized for as well as
updates to the financial data.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: In accordance with State Code, staff has held a
consultation with the other taxing entities affected by this plan.
RECOMMENDATION: Hold the Public Hearing
ATTACHMENTS: I. Proposed Amendment No. 7 to Waukee Unified Urban Renewal
Plan
II. Consultation Report
PREPARED BY: Brad Deets
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION: Des Moines Register
DATE OF PUBLICATION: November 11, 2016
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WAUKEE UNIFIED URBAN
RENEWAL PLAN
AMENDMENT #7
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
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AMENDMENT #7
to
WAUKEE UNIFIED URBAN RENEWAL PLAN
CITY OF WAUKEE, IOWA
Amendment #1 to the Waukee Unified Urban Renewal Plan ("Plan" or "Urban Renewal
Plan" or "Unified Plan") for the Waukee Unified Urban Renewal Area ("Area" or "Unified Area"),
adopted in 2011, and amended in 2011, 2012, 2013, 2014, and 2015, is being further amended to
remove certain undeveloped or underutilized real estate from the Area to the extent described
hereinafter and to add and/or confirm the list of proposed projects to be undertaken within the
Waukee Unified Urban Renewal Area by this Amendment #7 ("Amendment #7" or
"Amendment").
The "base valuation" of the Waukee Unified Urban Renewal Area will be reduced by this
Amendment because certain real estate, identified as the “Amendment #7 Area” (described in
Exhibit A), is being removed.
This Amendment #7 repeats much of Amendment No. 6 adopted in 2015 for the reader's
convenience. The material changes to this Amendment #7 are the following:
the deletion of the Area described as "Amendment #7 Area";
updating the Previously Approved Urban Renewal Projects (Public
Improvements and Development Agreement, page _7);
updating the Financial Data on page _9_;
Exhibit A contains a legal description of the area being removed (the
"Amendment #7 Area");
Exhibits B and C maps are updated.
Except as modified by this Amendment, the provisions of the original Unified 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 control.
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DESCRIPTION OF THE URBAN RENEWAL AREA
The legal description of the property being removed from the Unified Urban Renewal Area
is attached hereto as Exhibit "A." A map of the Amendment #7 Area being removed is attached
as Exhibit "B." A map of the entire Unified Urban Renewal Area, as amended, is attached hereto
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.
HISTORY AND PURPOSE
The City's first Urban Renewal Area was established in 1988. Over the years, as the City
continued to grow and commercial development opportunities became available, the City created
and amended several new urban renewal areas. In 2004, the City linked the various urban renewal
areas that had been created in previous years.
In 2011, the City of Waukee approved a Unified Urban Renewal Plan and Amendment No.
1. The 2011 Unified Plan continued the City's objective to consolidate and link the urban renewal
areas together in order to maximize the future expenditure of incremental property tax revenues
necessary to promote economic development. Amendment Nos. 2 ,3, 4, 5 and 6 to the Unified
Plan followed.
Following several years of planning and hard work with the state and federal government,
the City now has entrance and exits ramps off Interstate 80 providing direct access along Grand
Prairie Parkway (formerly known as Alice's Road) into the City proper. This new access point
will create unique opportunities for economic development within the City, unlike those previously
anticipated in this Unified Plan. For example, previously the City lacked a central area for big
box development, which obviously requires planning approaches for access, infrastructure and
improvements that differ from the subdivisions and planning within the City generally. This new
Grand Prairie Parkway corridor area can now focus specifically on these types of developments.
While new and unique opportunities exist for the Grand Prairie Parkway/Interstate
corridor, other lands within the Unified Area have over the years been developed for residential
purposes, while other parcels have been identified as underutilized. Even though some areas
within the Unified Area developed as residential, the City has followed a longstanding guideline
not to certify Tax Increment debt for residential housing projects.
In light of the above, and due to the rapid and continuing growth experienced by the City
since the first urban renewal area was established in 1988, City officials felt it was appropriate to
re-evaluate all subareas within the Unified Urban Renewal Area not only to determine which
parcels should be removed to form a new Gateway Economic Development Urban Renewal Area,
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but also to evaluate appropriateness of parcels to remain within either of the City's Urban Renewal
Areas.
Several factors were evaluated, including:
Existing land uses of each subarea,
Number of years each subarea had been contained within the Urban Renewal Area,
Base valuations,
Availability of public infrastructure,
Potential of each subarea for development or redevelopment, future land uses, and
conformity of such future development to the City's overall general plan for the physical
development of the City as a whole.
Anticipated schedule for future development.
This evaluation resulted in the decision to remove various parcels from the Unified Area
for a variety of reasons:
In general, the City's current guideline is not to utilize tax increment financing incentives
for residential housing projects. As a result, it was determined to remove several existing
properties due to their development into residential uses.
Since most of the other land being removed from the Waukee Unified Urban Renewal Area
is undeveloped, there has been very little, if any, increment that has been added to the
Waukee Unified Urban Renewal Area by these parcels. For those areas that development
has not occurred, nor is intended to occur in the foreseeable future, the City is removing
such properties in order to release that valuation back to the affecting taxing districts. If
future development is sought, the City may seek to create or further amend this Area to
address said development.
In 2013, the City created a new Urban Renewal Area, which the City designated as the
"Waukee Gateway Economic Development Area." This new Area includes all of the
existing undeveloped property at the new Interstate 80 interchange on the south edge of the
community, as well as the connecting corridor into Waukee. As the City begins to invest
millions of dollars in infrastructure to support this new Interstate corridor and the unique
development opportunities this corridor will provide to the community, the City believes
it is necessary to remove those areas which are undeveloped to date and to re-establish
those areas as the new and separate Gateway Economic Development Urban Renewal
Area.
As previously noted, much of the land to be included within the new Gateway Urban
Renewal Area is now a part of the Waukee Unified Urban Renewal Area. Although re-
establishing these land areas as the new and separate Gateway Economic Urban Renewal
Area will result in a somewhat higher base valuation, City officials believe that with the
new Interstate 80 interchange being constructed, the timing for adoption of this Plan is
appropriate and in the best interest of the community.
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In summary, the removal of the identified parcels from the Unified Urban Renewal Area
will result in the release of some real estate, while other properties, including some of the property
being removed by this Amendment #7, will be utilized to create/add to the Gateway Urban
Renewal Area. Collectively, these planning decisions will enable the City to continue maximizing
the future use of tax increment revenues to support new development that is expected to take place
as a result of the Interstate interchange.
PROJECT OBJECTIVES
Renewal activities are designed to provide opportunities, incentives, and sites for community
economic development purposes, including new and expanded industrial and commercial
development and blight remediation. Objectives include:
1. To stimulate through public action and commitment, private investment in new
commercial and industrial development.
2. To plan for and provide sufficient land for commercial or industrial
development.
3. To provide for the installation of public infrastructure and facilities in the Urban
Renewal Area, which ultimately contribute to the sound development of the
entire City.
4. To provide a more marketable and attractive investment climate.
5. To remediate blight in applicable areas.
6. To achieve a diversified, well-balanced economy providing a desirable standard
of living, creating job opportunities, and strengthening the tax base.
TYPES 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 Chapters 403 and Chapter 15A, Code
of Iowa.
1. To undertake and carry out urban renewal projects through the execution of contracts
and other instruments.
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2. To acquire land and to provide for the construction of urban renewal projects or
specific site improvements such as grading and site preparation activities, access
roads and parking, fencing, utility connections, and related activities.
3. To arrange for or cause to be provided the construction or repair of public
infrastructure, including but not limited to, streets, water, storm sewer, sanitary sewer,
public utilities, sidewalks, street lights, public parks and open spaces, bike trails,
landscaping or other related facilities and activities in connection with urban renewal
projects.
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, financing 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 contribute to the elimination or remediation of blight through contributions and/or
incentives.
9. To assist with the operation, repair, and maintenance of the City-owned golf course.
10. To acquire property through a variety of means (purchase, lease, option, etc.) and to
hold, clear or prepare the property for redevelopment, or to dispose of property.
11. 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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PREVIOUSLY APPROVED URBAN RENEWAL PROJECTS
Numerous urban renewal projects were included in Amendment #6 and preceding
amendments. These previously authorized projects include but are not limited to the following
projects which have been initiated and are continuing:
1) Public Improvements
Project Bond Reference
Balance as of
July 1, 2016
Alice’s Road/University Intersection/Grand Prairie
Parkway Extension/Interchange Ramps/Traffic
Signals and Kettlestone Master Plan Consulting
2014A
GO Urban Renewal
$12,229,651.00
Grand Prairie Parkway and Storm Drainage
(Ashworth to University)
2013D
GO Urban Renewal
Advanced Refunding
$4,483,400.00
University Avenue Widening (Waco to Alice's Rd) 2013C $ 1,351,302.00
GO Urban Renewal
Advanced Refunding
Alice's Road-I80 Bridge/Approaches 2013B $1,304,600.00
GO-Abated w/TIF
Revenues
Alice's Road - Sewer 2012D $2,269,900.00
GO Urban Renewal
University Avenue Widening (Alice's to LA Grant
Parkway) & Clayton Property Purchase 2012B $1,843,215.00
GO Urban Renewal
Advanced Refunding
Waukee Public Works Building 2010C $349,997.00
TIF Revenue
Street Improvements - 6th Street/Northview Drive 2009A $134.550.00
GO Urban Renewal
WRA Outfall Sewer Project 2008C
$1,335,984.00
Raccoon River Valley Trail Extension GO Urban Renewal
TOTAL $25,302,599.00
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1) Development Agreements
Project
Potential Rebate Amount Remaining as of
7/1/16
Alice's LC $ 2,435,614.37
In addition, numerous urban renewal projects were included in Amendment #6 and preceding
amendments, but have not yet been initiated. These previously authorized projects include but are
not limited to:
1. Public Improvements
Project Estimated
Date
Estimated Cost Rationale
Grand Prairie Parkway
(Interstate 80 to University)
Streetscape Enhancements –
landscaping, trails, underpass
enhancements, signage
2016-2019 $2,000,000 -
$4,000,000
Commercial Corridor Roadway
Expansion
Warrior Lane/Ashworth Drive
(5-way) Intersection
Reconstruction
2016-2019 $2,500,000 -
$3,000,000
Public Works Installation –
Sound Development of City
Alice's Road Expansion Phase 1
(University to Olson)
2016-2019 $6,500,000 -
$8,000,000
Commercial Corridor Roadway
Expansion
Alice's Road Expansion Phase 2
(Olson to Horizon)
2016- 2019 $7,500,000 -
$9,000,000
Commercial Corridor Roadway
Expansion
Hickman Road/Warrior Lane
Pedestrian Underpass
2017-2019 $1,500,000 -
$2,500,000
Continued improvement of trail
system for essential community
amenity and betterment
Westgate Drive/Hickman Road
Traffic Signal
2017-2019 $250,000 - $350,000 Commercial Corridor Roadway
Expansion
Warrior Lane Widening
(Hickman to University)
2017-2019 $3,250,000 -
$4,000,000
Public Works Installation –
Sound Development of City
TOTAL $23,500,000-
$30,850,000
Note: This total does not include
financing costs related to debt issuance
Note: It may be that the above costs will be reduced by the application of state and/or
federal grants or programs; cost-sharing agreements with other entities; or other available
sources of funds.
ELIGIBLE URBAN RENEWAL PROJECTS (Amendment #7)
Although certain project activities may occur over a period of years, in addition to any
projects previously proposed in the Unified Urban Renewal Plan, as previously amended,
the eligible Urban Renewal Projects under this Amendment includes:
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1. Development Agreements
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 a broad range of incentives as authorized
by this Plan, including but not limited to land, loans, grants, tax rebates, public infrastructure
assistance and other incentives. The costs of such Development Agreements will not exceed
$8,000,000 - $10,000,000.
2. 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
$2,000,000
FINANCIAL DATA
1. July 1, 2016, constitutional debt limit: $64,395,379
2. Current outstanding general obligation debt: $50,214,030
3. Current remaining balance of indebtedness incurred
based upon prior approved Eligible Projects and
potential rebate on prior Development Agreements:
$31,654,019.13
4. Proposed amount of indebtedness to be incurred: A specific
amount of debt to be incurred for the Eligible Urban Renewal
Projects (Amendment #7) 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 #7) as
described above will be approximately as follows:
$10,000,000–
$12,000,000
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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 2008. This Urban Renewal Plan, as
amended by Amendment #7, is in conformity with the 2008 Comprehensive Plan and the land use
policy and priorities that were adopted as part of the planning process. Specific objectives
identified in the Comprehensive Plan include, but are not limited to, a connected citizenry
involving the creation of strong civic gathering places; a successful and economically viable
downtown; business environments that define the future through innovation and creativity; and
mixed-use and neighborhood-integrated commercial developments which maintain a strong retail
base and are designed to be sustainable.
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.
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 improvem ents within the
Area. These include:
A. Tax Increment Financing.
Under Section 403.19 of the Code of Iowa, urban renewal areas may utilize tax
increment financing mechanism to finance the costs of public improvements
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 proposed 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 and in any event upon the expiration of the tax
increment district.
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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 and urban renewal projects within the Area. 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.
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 the urban
renewal projects identified in this Amendment related to blight remediation and/or commercial or
industrial development. 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. Alternatively, the City
may determine to use available funds for making such loans or grants or other incentives related
to urban renewal projects.
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.
PROPERTY ACQUISITION/DISPOSITION
The City will follow any applicable requirements for the acquisition and disposition of
property.
URBAN RENEWAL PLAN AMENDMENTS
The Unified Urban Renewal Plan may be amended from time to time for a variety of
reasons, including but not limited to, adding or deleting land, adding or modifying urban renewal
projects, or modifying goals or types of renewal activities.
The City Council may amend this Plan in accordance with applicable state law.
EFFECTIVE PERIOD
This Amendment #7 to the Unified Urban Renewal Plan will become effective upon its
adoption by the City Council. Notwithstanding anything to the contrary in the Urban Renewal
Plan, any prior amendment, resolution, or document, the Unified Urban Renewal Plan, as
amended, shall remain in effect until terminated by the City Council and will remain in effect for
the maximum time allowed by law.
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This Amendment is not effecting any change to the expiration date for the division of
revenue in the Original Area or any subarea (Amendment Area) of the Unified Urban Renewal
Area.
REPEALER
Any parts of the previous Plan, as previously amended, in conflict with this Amendment
are hereby repealed.
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 the previous amendments to the Plan, or any part of the Plan or Amendment not
determined to be invalid or unconstitutional.
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EXHIBIT "A"
"Amendment #7 Area” – Property to be Removed from Urban Renewal Area
Legal Description
Outlot B of The Point Plat 1, an Official Plat, City of Waukee, Iowa (Parcel #12-27-378-006);
and,
The South One-half of the Southeast Quarter (S ½ SE ¼) of Section twenty-nine (29) in
Township Seventy-nine (79) North, Range Twenty-six (26), West of the 5th P.M., Dallas County,
Iowa, EXCEPT the right of way of the Minneapolis & St. Louis Railroad Co., formerly Des
Moines Valley railroad Co. and the right of way of the Chicago, Milwaukee & St. Paul railroad
Company, formerly Des Moines Adel and Western Railroad Company (Parcel # 12-29-400-012,
12-29-400-013, 12-29-400-005) and the adjoining Hickman Road (U.S. Highway 6) Right of
Way.
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