HomeMy WebLinkAbout2022-12-19 Resolution 2022-535_Urban Renewal Plan, The Quarter CommercialRESOLUTION NO. 2022-535
RESOLUTION DETERMINING AN AREA OF THE CITY TO
BE ECONOMIC DEVELOPMFNT AREA, AND THAT THE
REHABILITATION, CONSERVATION, REDEVELOPMENT,
DEVF,LOPMENT, OR A COMBINATION TI IEREOF, OF SUCH
AREA IS NECESSARY IN TIE INTEREST OF THE PUBLIC
HEALTH. SAFETY OR WELFARE OF THE RESIDENTS OF
THE CITY; DESIGNATING SUCH I AREA AS APPROPRIATE
FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE
QUARTER COMMERCIAL URBAN RENEWAL PLAN
WHEREAS, it is hereby found and determined that one or more economic development
areas, as defined in Chapter 403, Code of Iowa, exist within the City and the rehabilitation,
conservation, redevelopment, development, or combination thereof, of the area is necessary in the
interest of the public health, safety, or welfare of the residents of the City, and
WHEREAS, this Council has caused there to be prepared a proposed The Quarter
Commercial Urban Renewal Plan ("Plan" or "Urban Renewal Plan") for The Quarter Commercial
Urban Renewal Area ("Area" or "Urban Renewal Area"), which proposed Plan is attached hereto
as Exhibit 1 and which is incorporated herein by reference; and
WHEREAS, the purpose of the Plan is to form The Quarter Commercial Urban Renewal
Area as an area suitable for economic development and to include a list of proposed projects to be
undertaken within the Urban Renewal Area, and a copy of the Plan has been placed on file for
public inspection in the office ofthe City Clerk; and
WHEREAS. the property proposed to be included in the Urban Renewal Area is legally
described in the Plan and this Council has reasonable cause to believe that the Area described in
the Plan satisfies the eligibility criteria for designation as an urban renewal area under Iowa law
and; and
WI IEREAS, it is desirable that the area be redeveloped as part of the overall redevelopment
covered by the Plan; and
WIIEREAS, it is desirable that the Urban Renewal Area be redeveloped as described in
the proposed Urban Renewal Plan to be known hereafter as the "The Quarter Commercial Urban
Renewal Plan"; and
WHEREAS, the Iowa statutes require the City Council to submit the proposed Urban
Renewal Plan to the Planning and Zoning Commission for review and recommendation as to its
conformity with the general plan for development of the City as a whole, prior to City Council
approval thereof, and
WI IEREAS, creation of the Urban Renewal Area and adoption of the Urban Renewal Plan
therefore has been approved by the Planning and Zoning Commission for the City as being in
conformity with the general plan for development of the City as a whole, as evidenced by its
written report and recommendation filed herewith, which report and recommendation is hereby
accepted, approved in all respects and incorporated herein by this reference; and
WHEREAS, by resolution adopted on November 21, 2022, this Council directed that a
consultation be held with the designated representatives of all affected taxing entities to discuss
the proposed Urban Renewal Plan and the division of'revenue described therein, and that notice of'
the consultation and a copy of the proposed Urban Renewal Plan be sent to all affected taxing
entities; and
WHEREAS, pursuant to such notice, the consultation was duly held as ordered by the City
Council and all required responses to the recommendations made by the affected taxing entities, if
any, have been timely made as set forth in the report of the Director of F,conomic Development,
or her delegate, tiled herewith and incorporated herein by this reference, which report is in all
respects approved; and
WHEREAS, by resolution this Council also set a public hearing on the adoption of the
proposed Urban Renewal Plan for this meeting of the Council, and due and proper notice of the
public hearing was given, as provided by law, by timely publication in the Dallas County News,
which notice set forth the time and place for this hearing and the nature and purpose thereof, and
WHEREAS, in accordance with the notice, all persons or organizations desiring to be heard
on the proposed Urban Renewal Plan, both for and against, have been given an opportunity to be
heard with respect thereto and due consideration has been given to all comments and views
expressed to this Council in connection therewith and the public hearing has been closed.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
WAUKEE, STATE OF IOWA:
Section 1. 'That the findings and conclusions set forth or contained in the proposed "The
Quarter Commercial Urban Renewal Plan" for the area of the City of Waukee, State of Iowa,
legally described and depicted in the Plan and incorporated herein by reference (which area shall
hereinafter be known as the "The Quarter Commercial Urban Renewal Area"), be and the same
are hereby adopted and approved as the findings of this Council f'or this area.
Section 2. This Council further finds:
a) Although relocation is not expected, a feasible method exists for the relocation
of any families who will be displaced from the Urban Renewal Area into decent, safe and
sanitary dwelling accommodations within their means and without undue hardship to such
families:
b) The Urban Renewal Plan conforms to the general plan for the development of
the City as a whole, and
c) Acquisition by the City is not immediately expected, however, as to any areas of
open land to be acquired by the City included within the Urban Renewal Area:
i. Residential use is not expected, however, with reference to any portions
thereof which are to be developed for residential uses, this City Council hereby
determines that a shortage of housing of sound standards and design with decency,
safety and sanitation exists within the City; that the acquisition of' the area for
residential uses is an integral part of and essential to the program of the
municipality; and that one or more ofthe following conditions exist:
a. That the need for housing accommodations has been or will be
increased as a result of the clearance of slums in other areas, including other
portions of the urban renewal area.
b. That conditions of blight in the municipality and the shortage of
decent, sale and sanitary housing cause or contribute to an increase in and
spread of disease and crime. so as to constitute a menace to the public
health, safety, morals, or welfare.
c. That the provision ofpublic improvements related to housing and
residential development will encourage housing and residential
development which is necessary to encourage the retention or relocation of
industrial and commercial enterprises in this state and its municipalities.
d. The acquisition of the area is necessary to provide for the
construction of housing for low and moderate income families.
ii. Non-residential use is expected and with reference to those portions
thereof which are to be developed for non-residential uses, such non-residential
uses are necessary and appropriate to facilitate the proper growth and development
of the City in accordance with sound planning standards and local community
objectives.
Section 3. That the Urban Renewal Area is an economic development area within the
meaning of Chapter 403, Code of Iowa, that such area is eligible for designation as an urban
renewal area and otherwise meets all requisites under the provisions of Chapter 403, Code of Iowa;
and that the rehabilitation, conservation, redevelopment, development, or a combination thereof,
of such area is necessary in the interest of the public health, safety or welfare of the residents of
this City.
Section 4. That the Urban Renewal Plan, attached hereto as Exhibit 1 and incorporated
herein by reference, be and the same is hereby approved and adopted as the "The Quarter
Commercial Urban Renewal Plan for The Quarter Commercial Urban Renewal Area"; the Urban
Renewal Plan for such area is hereby in all respects approved; and the City Clerk is hereby directed
to file a certified copy of the Urban Renewal Plan with the proceedings of this meeting.
Section 5. That, notwithstanding any resolution, ordinance, plan, amendment or any other
document, the Urban Renewal Plan shall be in full force and effect from the date of this Resolution
until the Council amends or repeals the Plan. Said Urban Renewal Plan shall be forthwith certified
by the City Clerk, along with a copy of this Resolution, to the Recorder for Dallas County, Iowa,
to be filed and recorded in the manner provided by law.
PASSED AND APPROVED this 1 Oth tiny „f Dpri-mhPr ')n'))
ATTEST:
lY '
City Clerk
RESULTS OF VOTE:
AYE
Anna Bergman Pierce
X
R. Charles Bottenberg
X
Chris Crone
X
Larry R. Lyon
X
Ben Sinclair
X
NAY ABSENT ABSTAIN
THE QUARTER COMMERCIAL
URBAN RENEWAL PLAN
for the
THE QUARTER COMMERCIAL
URBAN RENEWAL AREA
CITY OF WAUKEE, IOWA
December 2022
TABLE OF CONTENTS
SECTION
A. INTRODUCTION
B. DESCRIPTION OF TIIE URBAN RENEWAL AREA
C. AREA DESIGNATION
D. BASE VALUE
E. DEVELOPMENT PLAN
F. PLAN OB.IF,C,IVES
G. TYPES OF RL'NIWAL ACTIVITIES
if. ELIGIBLE URBAN RENEWAL PROJECTS
I. FINANCIAL INFORMATION
J. URBAN RENEWAL FINANCING
K. PROPERTY ACQUISITION/DISPOSITION
L. RELOCATION
M. PROPERTY WITHIN AN URBAN REVITALIZATION AREA
N. STATE' AND LOCAL REQUIREMENTS
O. SF:VERABILITY
P. URBAN RENEWAL PLAN AMF,NDMENTS
Q. FITFC"I'IVE P1,,RIOD
EXHIBITS
A. LEGAL DESCRIPTION OF THE QUARTER COMMERCIAL LJR13AN RF,NEWAL
AREA
B. THE QUARTER COMMERCIAL URBAN RENEWAL AREA MAP
The Quarter Commercial Urban Renewal Plan
for the
The Quarter Commercial Urban Renewal Area
City of Waukee, Iowa
A. INTRODUCTION
The Quarter Commercial Urban Renewal Plan ("Plan" or "Urban Renewal Plan"') for the Quarter
Commercial Urban Renewal Area ("Area"" or "Urban Renewal Area") has been developed to help
local officials promote commercial and industrial economic development in the City of Waukee,
Iowa (the "City"). In order to achieve this objective" the City intends to undertake urban renewal
activities pursuant to the powers granted to it under Chapter 403 of the Code of'IoN,u, as amended.
B. DESCRIPTION OF THE URBAN RENEWAL AREA
The 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 designates this Urban Renewal Area as an area appropriate
for the promotion of economic development (commercial and industrial development).
D. BASE VALUE
If the Urban Renewal Area is legally established, a Tax Increment Financing (TIF) Ordinance is
adopted, and debt is certified prior to December 1, 2022, the taxable valuation as of'January 1,
2021, will be considered the frozen "base valuation" of the taxable property within that area
covered by the TIF ordinance. If a TIF Ordinance is not adopted until a later date, or debt is not
first certified prior to December l , 2022, the frozen "base value'" will be the assessed value of the
taxable property within that area covered by the TIF Ordinance 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. It may be that multiple TIF ordinances will be adopted on separate portions of the Area as
development occurs. If so, the frozen base values may vary among the subareas.
E. DEVELOPMENT PLAN
The City has a general plan for the physical development of the City as a whole, outlined in the
Waukee Comprehensive Land Usc Plan, adopted in 2019. The goals and objectives proposed in
this Plan, and the urban renewal projects described herein, are in conformity with the land use
policies and plans for the development of the City as a whole established in the Waukee
Comprehensive Land Use Plan.
The Urban Renewal Plan does not in any way replace the City's current land use planning or
zoning regulation process. The land being included in the Urban Renewal Area is currently zoned
as Community Commercial/Planned Development Overlay, but may be rezoned, if needed, in
accordance with the City's standard zoning processes.
The need, if any, for improved tragic, public transportation, public utilities, recreational and
community facilities, or other public improvements within the Urban Renewal Area is set forth in
this Plan. As the Area continues to develop, 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 to promote
economic development (commercial and industrial). More specific objectives for the development,
redevelopment, and rehabilitation within the 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.
I To provide for the installation of public works and facilities including, but not limited to,
water, sanitary sewer, trail, amphitheater and other public and quality of life improvements,
which contribute to the development of the area and to the sound development of the entire
City.
4. To encourage commercial 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
expanded commercial and industrial development.
7. To improve the conditions and opportunities for economic development (commercial and
industrial).
8. To help develop a sound economic base that will serve as the foundation for future growth
and development.
9. To enhance the City by fostering an entrepreneurial climate, diversifying the local
economy, encouraging opportunities for new businesses, and supporting retention of
existing businesses.
10. To enhance the health, safety, living environment, general character, and general welfare
of Waukee, Iowa.
11. To promote development utilizing any other objectives allowed by Chapter 403 of the Code
of lolva.
G. 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 Chapter 403 and Chapter 15A, Code of Iona
including, but not limited to, tax increment financing. Activities may include:
To undertake and carry out urban renewal projects through the execution of
contracts and other instruments.
2. To arrange for or cause to be provided the construction or repair of public
infrastructure including but not limited to streets, curb and gutter, street lighting,
water, sanitary sewer, public utilities or other facilities and quality of life
improvements in connection with urban renewal projects.
3. To make loans, forgivable loans, grants, tax rebate payments or other types of
economic development grants or incentives to private persons, local development
organizations, or businesses for economic development purposes on such terms as
may be determined by the City Council.
4. To borrow money and to provide security therefor.
5. To acquire or dispose of property.
6. To provide for the construction of'specific is site improvements such as grading and
site preparation activities, access roads and parking. fencing, utility connections,
and related activities.
7. To make or have made surveys and plans necessary for the implementation of the
Urban Renewal Plan or specific urban renewal projects.
8. To use any or all other powers granted by the Urban Renewal Act to develop and
provide for improved economic conditions for the City.
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 42713, or any
other provision of the Code of lon,a in furtherance of the objectives of this Urban Renewal Plan.
H. ELIGIBLE URBAN RENEWAL PROJECTS
Although certain project activities may occur over a period of years, the eligible urban renewal
projects under this Urban Renewal Plan include:
1. Development Agreement with The Quarter at Waukee, L.L.C.: The City previously
approved a Second Amended and Restated Development Agreement with the Quarter at
Waukee, L.L.C. ("Developer') as a project in the Waukee Consolidated Urban Renewal
Area. Additional changes to the project have now been identified by Developer and the
project has not been initiated. Given the scope and duration of the project now being
contemplated, the City has decided to establish a separate urban renewal area to facilitate
the project and to approve a Third Amended and Restated Development Agreement
(`Agreement') as an urban renewal project in this Area. Subject to the terms and
conditions set forth in the Agreement, the City would provide Developer with Economic
Development Grants to incentivize a total of an anticipated seventeen (17) commercial
buildings and related site improvements, with a total investment of approximately
$94,000,000. The City expects to make Economic Development Grants to Developer in
the form of rebates ofvarying percentages of incremental taxes generated by the separate
buildings over a period of twelve (12). sixteen (16) or twenty (20) years, depending on the
nature of the specific commercial building as described in the Agreement. The cumulative
total of all such grants is not expected to exceed $35,000,000 and will be subject to the
terms and conditions of a detailed development agreement.
2. Planning, Engineering Fees (for Urban Renewal Plans), Attorney Fees,
Administrative, and Other Related Costs to Support Urban Renewal Projects and
Planning:
Project
Estimated Date
Estimated Cost to be
Funded by TIF
Funds
Fees and Costs
Undetermined
Not to Exceed
$1,000,000
I. FINANCIAL INFORMATION
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: A
$36,000,000
specific amount of debt to be incurred for the Eligible
Urban Renewal Projects has not yet been determined.rhis
does not include financing
This document is for planning purposes only. The
costs related to debt issuance,which
estimated project costs in this Plan arc estimates only and
may be incurred over the
life of the Area.
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 to be reimbursed from
incremental taxes from this Area as described above will
be approximately as stated in the next column:
J. 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. These include:
A. Tax Increment Financing,
Under Section 403.19 of the Code of loit'a, 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. 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.
B. General Obligation Bonds.
Under Division III of Chapter 384 and Chapter 403 of the Code of lou,a, 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. 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 or private entities in connection with
the urban renewal projects identified in this Plan. 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 mi,a in furtherance of the objectives of this Urban Renewal Plan.
K. PROPERTY ACQUISITION/DISPOSITION
The City will follow any applicable requirements for the acquisition and disposition of property
within the Urban Renewal Area.
L. RELOCATION
The City does not expect there to be any relocation required of residents or businesses as part of
the proposed urban renewal project; however. if any relocation is necessary, the City will follow
all applicable relocation requirements.
M. PROPERTY WITHIN AN URBAN REVITALIZATION AREA
The Urban Renewal Area may (now or in the future) also be located within an established Urban
Revitalization Area. Properties within the Urban Renewal Area shall not be eligible for tax
abatement under an Urban Revitalization Plan without the City Council's specific approval. The
City Council, at its sole discretion, shall determine which incentives are available through either:
(a) this Plan for urban renewal incentives, if any urban renewal incentives are offered by the City,
at the City Council's sole discretion; or (b) tax abatement incentives through the City's Urban
Revitalization Plan(s); or (c) a combination of urban renewal incentives and tax abatement
incentives.
N. STATE AND LOCAL REQUIREMENTS
The City will comply with all State and local laws related to implementing this Urban Renewal
Plan and its supporting documents.
O. SEVERABILITY
In the event one or more provisions contained in the Urban Renewal Plan shall be held for any
reason to be invalid, illegal, unauthorized, or unenforceable in any respect, such invalidity,
illegality, un-authorization, or unenforceability shall not affect any other provision of this Urban
Renewal Plan, and this Urban Renewal Plan shall be construed and implemented as if such
provisions had never been contained herein.
P. URBAN RENEWAL PLAN AMENDMENTS
This Urban Renewal Plan may be amended from time to time for a number of reasons including,
but not limited to, adding or deleting land, adding or amending urban renewal projects, or
modifying goals or types of renewal activities. The City Council may amend this Plan in
accordance with applicable State law.
Q. EFFECTIVE PERIOD
This Urban Renewal Plan will become ef[ective upon its adoption by the City Council and shall
remain in effect until terminated by the City Council.
With respect to the property included within the Urban Renewal Area. which is also included in a
Tax Increment Financing (TIF) ordinance which designates that property as a tax increment area
and is designated based on an economic development finding, 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 Urban Renewal Area. It may be that
multiple TIF ordinances will be adopted on separate portions of the Area as development occurs.
The division of revenues shall continue on the Urban Renewal Area for the maximum period
allowed by law.
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 Ioiva) by the City for activities carried out under the Urban Renewal Area
shall be limited as deemed appropriate by the City Council and consistent with all applicable
provisions of law.
EXHIBIT A
LEGAL DESCRIPTION OF
THE QUARTER COMMERCIAL URBAN RENEWAL AREA
Lots 2-3 and 5-15, Outlot Y, and Outlot Z of Kee'l'own Loop Plat 1, an Official Plat, now
including and forming a part of the City of Waukee, Dallas County, Iowa (Parcel 91604480002,
160448004 through 1604480016, 1604377001; and
Lots 1-3, KeeTown Loop Plat 2, and an Official Plat, now including and forming a part of the
City of Waukee, Dallas County, Iowa (Parcel 41604481001 1604481003); and
Lots A, B, C and D of The Shops at Kettlestone North Plat 4, an Official Plat, City of Waukee,
Dallas County, Iowa (Parcel #1604332002).
EXHIBIT B
MAP OF THE QUARTER COMMERCIAL URBAN RENEWAL AREA
Ashworth
(D
CL
fV
C
(D
Legend
_ Tne �.arter Ur Date Renewal Arta
CmWauk" City Lima