CITY COUNCIL COMMUNICATION: 00-268 AGENDA: JUNE 19, 2000 SUBJECT: FUTURE DEVELOPMENT IN VALLEY-GARDEN AREA TYPE: RESOLUTION ORDINANCE RECEIVE/FILE SUBMITTED BY: RICHARD A. CLARK DEPUTY CITY MANAGER

ITEM ____ OFFICE OF THE CITY MANAGER CITY OF DES MOINES, IOWA SYNOPSIS - In response to several informal inquires about reserving City-owned land for future sale in the Valley-Garden area, a roll call on the June 19th agenda directs the City Manager or his designee to proceed with a formal request to the federal government through the Federal Emergency Management Agency (FEMA) to release the no-development covenants imposed on the properties purchased in the Valley-Garden area after the 1993 floods. The City undertook release of similar FEMA covenants in the Frisbee Park area; it took over a year to obtain the necessary approvals. It is anticipated the release of the Valley-Garden area covenants will take at least several months in the most expedited case. FISCAL IMPACT - None at this time. RECOMMENDATION - Approval. BACKGROUND - Inquiries about possible purchase of various City-owed properties in this area have been received from Milo Ferrari who is interested in building a self-storage unit complex on Valley Drive and Harold Belken on behalf of a Masonic Lodge. The City can receive and file these requests to purchase these City-owned properties; however, the FEMA regulations do not permit us to act on the requests at this time. FEMA Restrictions After the 1993 floods, the City acquired about 50 lots with flood-destroyed homes in an area bounded by Valley Drive on the north, SW 28th Street on the west, Sunset Road on the south and SW 23rd Street on the east. This area is informally known as the Valley-Garden area. The City used federal funds for these property acquisitions that limit the use of this land to green space with no development permitted. The City must retain ownership of the City-acquired properties in accordance with FEMA regulations until release of the covenants by FEMA . The City can request release of the no-development covenants; it is anticipated the release of the no-development covenants will take at least several months of work with the federal government. Development Study While staff is pursuing the release of the FEMA restrictions, staff will study the 30+ acres area to determine what the appropriate future uses of this area could be. At this time, the City currently owns about 14 acres in this area. This feasibility plan will identify market potential, tax base impact, land assemblage costs, and infrastructure needs. This is an excellent opportunity for the Council to evaluate the best economic uses for these properties while work is proceeding on the release of the FEMA covenants. The study will provide the City with valuable information to assist in making its decisions on these properties.