HomeMy WebLinkAbout2000-01-18-Special MinutesThe Special Waukee City Council Meeting was called to order on Tuesday,January 18,2000 at 7:00 PM
by Mayor Donald Bailey,Jr.
Roll was taken and the following Council members were present:Gruber,Berger,Watts,Peard,and
Johnson.
PUBLIC HEARING:The Mayor opened the Public Hearing on the Voluntary Annexation Request from
Ashworth Properties,Inc.and Elizabeth P.Burt-Blackmer Trust.The Mayor asked if any written
comments had been received on this request.City Administrator Mark Arentsen told the Mayor none had
been received.The Mayor asked Bill Lillis,the Counsel for the City to address the annexation request and
pre-annexation agreements.After Mr.Lillis speaks the Council will take oral comments regarding the
annexation.
William Lillis and Dan Manning of the Connolly Law Firm,300 Bank of American Building addressed the
Council.
Mr.Lillis stated that the pre-annexation agreements describe the conditions attached to the annexation
request filed by Ashworth Properties and the Burt-Blackmer Trust.The agreements state that the owners
agree to annexation to the City of Waukee so long as the City agrees to zone the property to allow for
commercial and industrial development.This zoning would also allow the owners to receive any property
tax benefits which are available to properties which qualify for Tax Increment Financing.The owners are
able to withdraw their voluntary annexation request at any time prior to the request being heard by the City
Development Board.The owners are agreeing to construct all internal improvements which are required
for development of their property.Internal improvements include streets,utilities and all other costs
normally associated with private development.Assessments must be retired within ten to fifteen years.To
be eligible,improvements must be constructed within ten years of the awarding of the contract for
construction of the interstate interchange.Contracts for sewer and water improvements to be constructed
by the City must be awarded within one year of award of the interstate interchange contract.The City
agrees to limit any special assessments which may be necessary to construct improvements to the properties
to no more than $3,000 per acre for sewer and $26 per foot for water.The City agrees to establish a Tax
Increment District which will allow the owner to be reimbursed for all qualified expenses from future tax
increment revenues.The reimbursement period will last no longer than eighteen years.TIP
reimbursements up to 80%of the revenues generated will be allowed for the first thirteen years of the
District.Reimbursements will reduce to 50%for the final five years.
If the Council adopts these agreements,the voluntary annexation will go to the City Development Board
for their February 10,2000 meeting.
The Mayor asked the Council if there were any comments.Councilman Johnson wanted to know what
property tax benefits would be available.These agreements refer only to TIP.There is no tax abatement.
Councilman Johnson had a question regarding rezoning.He asked how rezoning would occur before the
annexation took place.Mr.Lillis told him the owners needed to come into the City before the rezoning
and TIP Districts could take place.
Mayor Bailey asked Mr.Lillis to highlight the benefits to the City.Mr.Lillis stated that the property
owners want to come into the City,with commercially zoned property.This is a benefit to the City in that
commercial property is taxed at a higher value than residential property.
Councilman Watts asked to discuss the extension of sanitary sewer and water.Mr.Lillis stated the
property owners are agreeing to be specially assessed for these items.They would not claim an Ag
deferment.The period of time for the assessment would be not less then 10 years or more than 15 years.
The Mayor asked to have the TIF District explained.Bob Josten,of the Dorsey &Whitney Law Firm,
bond counsel for the City discussed the TIP District and the percentages.These agreements contemplate
formation of rebate formatted TIP Districts.This concept is a protection to the City in that the developers
must install their improvements to be eligible for TIP payments.The property taxes are first paid by the
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developer and then rebated to the developer by the City.This eliminates the requirement for the City to
install the improvements with City funds.In this way the City retains more of its debt capacity for other
municipal projects.In the first 13 years,20%of the taxes collected stay with the City.This helps the City
general fund and the School District.Only 80%of the available increment would be allocated back to the
developers.After 13 years only 50%of the available increment will be allocated to the developer.The
City is obligated to make the rebate payments only if the developers follow through with their
improvements and only if the taxes are paid.If there is a delinquency there is no obligation for the City to
pay anything.
The Mayor asked about the impact that rebate formatted TIPs have on the City's debt limit.Mr.Josten
stated that the valuation of the property prior to establishing the TIP remains available for calculating the
City's debt limit.The base value prior to any improvements also remains taxable at 100%by the City,
County and School District.Any new valuation,or increment,created after establishing the TIP District is
used to determine the tax amount that is rebated to the developers for retiring their TIP eligible expenses.
Since the developers are eligible to receive only 80%of the revenue created by the increment valuation,the
City,County and School District also receive 20%of the taxes generated on the new (i.e.increment)
valuation.
The TIP concept was developed to provide an incentive for developers to build new projects which would
otherwise be more difficult to finance.Taxing districts benefit from this by being able to collect taxes from
new development which might not otherwise occur.The City also benefits in the sense that the increment
value is still used to generate revenue for the City's debt service levy.TIF increment values cannot be used
for general levy purposes but are used in determining the debt service portion of the tax levy.This reduces
the amount that non TIP properties pay toward retiring the City's debt expense.
Councilman Watts discussed the Interstate 80 interchange.Bill Lillis explained that the Burts were
concerned about special assessments and didn't want to be obligated unless the interchange is within a
reasonable distance of their property.That is the reason for the 1/8-mile qualifier.The Burts want to
reserve the right to possibly claim their ag deferment if the interchange is not within 1/8 mile of their
property.They can be specially assessed,but would not be required to make payments as long as the
property is used for agricultural purpose.
Jeff Downing asked if TIP rebate payments will continue for 18 years if the eligible expenses are paid off
earlier than 18 years.Mr.Josten stated that payments to the property owners cease at the time al1 qualified
expenses are paid or after 18 years,whichever comes first.
The 28B agreement with West Des Moines was discussed.All properties east of R22 and north ofI80 are
reserved for annexation by Waukee until November this year.After that,these properties could he annexed
by West Des Moines.
Cindy Dolmage voiced concern that their private road is part of the annexation.Bi11Lillis stated that this
road was dedicated as part of a plat and is technical1y a right-of-way for a future street.
Joe Brick stated that he wants to make sure that al1 developers will have the same opportunity for TIP
financing as is being made available to Ashworth Properties and the Burt-Blackmer Trust.The Council
assured him that al1 would be treated the same.
Discussion took place regarding the Comprehensive Plan.When the plan is completed,
commercial/industrial zoning classifications for these properties will be included.Attorney Robert Douglas
speaking for the Burt family stated that they have owned this property for many years and do not want to
loose control of their farming opportunities.They are agreeing to be annexed into the City of Waukee.
The Mayor asked to close the public hearing.
RESOLUTION NO 00-11:Adopt pre-annexation agreement with Ashworth Properties.Moved by
Councilman Gruber,second by Councilman Peard to adopt the pre-annexation agreement with Ashworth
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Properties.The Mayor asked for a roll call vote and the following Council members voted:Ayes Gruber,
Peard,Johnson,Watts,Berger.Nays:None.Motion carried 5-0.
RESOLUTION NO.00-11
ACCEPTING PRE-ANNEXATION AGREEMENT WITH ASHWORTH PROPERTIES
WHEREAS,the City of Waukee believes that annexing land to the North side of Interstate 80 will be
fiscally smart;AND
WHEREAS,Ashworth Properties has agreed to voluntarily annex property North of Interstate 80 with an
approved Pre-Annexation agreement;AND
WHEREAS,the City believes by doing this it will benefit all citizens of Waukee;
NOW,THEREFORE BE IT RESOLVED that the City of Waukee hereby approves a Pre-Annexation
Agreement with Ashworth Properties so they can submit a voluntary annexation petition to the City of
Waukee.A-J~~
DOrulidL Bailey,Jr.,Mayor .
Attest:
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Mark J.Arentsen,Administrator/Clerk
ROLLCALL AYES NAYS ABSENT
Gruber
Peard
Berger
Watts
Johnson
x
X
X
X
X
RESOLUTION NO 00-12:Adopting Pre-Annexation Agreement with Burt-Blackmer Trust.Moved by
Councilman Peard,second by Councilman Johnson to adopt pre-annexation agreement with Burt-Blackmer
Trust.The Mayor asked for a roll call vote and the following Council members voted:Ayes:Peard,
Johnson,Berger,Watts,Gruber.Nays:None.Motion carried 5-0.
RESOLUTION NO.00-12
ACCEPTING PRE-ANNEXATION AGREEMENT WITH BURT·BLACKMER TRUST I
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WHEREAS,the City of Waukee believes that annexing land to the North side of Interstate 80 will be
fiscally smart;AND
WHEREAS,the Bnrt-Blackmer Trust has agreed to voluntarily annex property North of Interstate 80
with an approved Pre-Annexation agreement;AND
WHEREAS,the City believes by doing this it will benefit all citizens of Waukee;
NOW,THEREFORE BE IT RESOLVED that the City of Waukee hereby approves a Pre-Annexation
Agreement with the Burt -Blackmer Trust so they can submit a voluntary annexation petition to the City
of Waukee.
Attest:
Mark J.Arentsen,Administrator/Clerk
ROLLCALL AYES NAYS ABSENT
Gruber
Peard
Berger
Watts
Johnson
x
X
X
X
X
RESOLUTION NO 00-13:Adopting Resolution Annexing Ashworth Properties and Elizabeth Burt-
Blackmer Trust into the City of Waukee.Moved by Councilman Peard,second by Councihnan Watts to
adopt resolution annexing Ashworth Properties and Elizabeth Burt-Blackmer trust into the City of Waukee.
The Mayor asked for a roll call vote and the following Council members voted:Aycs:Pcard,Watts,
Johnson,Gruber,Berger.Nays:None,Motion carried 5-0,
RESOLUTION NO.00-13
RESOLUTION APPROVING PROPOSED ANNEXATION OF PROPERTIES IN THE VICINITY
OF ASHWORTH ROAD (320TH STREET)VERMILLION COURT AND INTERSTATE
ffiGHWAY#80
WHEREAS,on January 3.2000,the City Council received a request from Ashworth Properties,
Inc,and the Elizabeth P.Burt-Blackmer 1994 Revocable Trust to annex properties owned by them in the
vicinity of Ashworth Road (320ili Street),Vermillion Court and Interstate highway #80 together with the
intervening streets andlor rights of way adjacent thereto and referred such request to the City
Administrator/City Clerk and Legal Counsel to proceed with voluntary annexation of the properties;and,
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WHEREAS,on January 3,2000,the City Council scheduled a public hearing on January 18,
2000,at 7 :05P.M.in the City Council Chambers to consider the annexation of such territory,said
properties being located in tbe vicinity of Ashworth Road (320"'Street)Vermillion Court and Interstate
Highway #80 as more specifically described in Exhibits A,B,C and D attached hereto,and to consider the
annexation of such territory,in order that such notice of such proposal be given as provided by law;and
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WHEREAS,due notice of said hearing was published in the Des Moines Register on January 7,
2000,as provided by law,setting forth the time and place for hearing on said proposed annexation;and,
WHEREAS,due notice of said hearing was mailed by certified mail to all affected utilities,to
other cities located within two (2)miles of the area proposed for annexation,and to the Board of
Supervisors and County Attorney for Dallas County,Iowa,as required by Sections 368.5 and 368.7 of the
Iowa Code;and
WHEREAS,in accordance with said notice,those interested in the annexation,both for and
against,have been given opportunity to be heard with respect thereto and have presented their views to the
City council;and
WHEREAS,the territory proposed for annexation adjoins the boundaries of the City of Waukee
and is not within the Boundaries of any other City;and
WHEREAS,Section 368.7 of the Iowa Code provides that such an annexation is not completed
until the City Development Board has approved the Annexation and has filed copies of the applicable
proceedings as required by Section 368.20,subsection 2 of the said Code;NOW,THEREFORE,
BE IT RESOLVED,by the City Council of Waukee,Iowa,as follows:
1.That the voluntary annexation of territory in the viciuity of Ashworth Road (320"'Street),
Vermillion Court and Interstate Highway #80,said territory being adjacent to the current
City boundaries,all as more specifically described in Exhibits A,B,C and D attached
hereto,be and is hereby approved.The annexation shall be effective on the approval by
the City Development Board pursuant to Iowa Code Chapter 368.
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2.The City Administrator/City Clerk is hereby authorized and directed to file certified
copies of this Resolution and the Application for Voluntary Annexation,the Affidavit of
Publication of the Public Notice of the Hearing before the City Council and the
Certificate of mailing of Notice of the Hearing with the City Development Board created
by Section 368.9 of the Iowa Code.Such filing shall occur promptly.
Moved by Peard,seconded by Watts to adopt on the 18"'da
Donald L.Bailey,Jr.,Mayor
Attest:
)Mark J.Arentsen,Administrator/Clerk
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ROLLCALL AYES NAYS ABSENT
Bill Peard
Mike Watts
Nickolas Gruber
Marvin Berger
Wayne Johnson
x
X
X
X
X
The Mayor asked for motion to adjourn.Moved by Councilman Berger,second by Councilman Gruber to
adjourn.Motion carried unanimously,Meeting adjourned at 8:50 PM.
Donald L.Bailey,Jr.,Mayor
Attest:
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