CITY COUNCIL COMMUNICATION: 01-599 AGENDA: DECEMBER 3, 2001 SUBJECT: DES MOINES AGRIMERGENT TECHNOLOGY PARK PLAN TYPE: RESOLUTION ORDINANCE RECEIVE/FILE SUBMITTED BY: ERIC A. ANDERSON CITY MANAGER

ITEM ____ OFFICE OF THE CITY MANAGER CITY OF DES MOINES, IOWA SYNOPSIS - On the December 3, 2001 Council agenda is the adoption of the Des Moines Agrimergent Technology Park Plan. The proposed 1,100-acre Agrimergent Technology Park, located in the vicinity of SE 43rd Street and Vandalia Road, is being designed to offer agribusinesses and related industries a unique environment in which to develop remarkable inter-industry linkages and to capitalize on the area's agribusiness advantages. Targeted industries will be agribusinesses and related companies that fit the Park image and development strategy, coincide with regional cluster strengths, fit with regional development goals, and offer long-term growth potential. The Park will be developed in stages over 15-20 years. It is estimated that the new development will create approximately $420.4 million in additional tax base at buildout, which will generate $16.9 million annually to be reinvested into Des Moines. Land sales proceeds will yield about $32 million. Nearly 6,500 jobs will be created. Ellen Walkowiak with the City's Office of Economic Development is coordinating the City activities relative to this project. FISCAL IMPACT - About $36.3 million will be required to assemble land, install infrastructure, and conduct related activities. It is the City's intent to leverage its resources to the fullest extent possible with those of federal, state, and private funding. Adoption of the Plan does not require a specific allocation of funds. RECOMMENDATION - Approval. BACKGROUND - On January 26, 1998, by Roll Call No. 98-275, the City Council adopted the SE Agribusiness Urban Renewal Plan and subsequently amended it on March 15, 1999, by Roll Call No. 99-756. The proposed Des Moines Agrimergent Technology Park is recognized as an area of focused redevelopment activity in the urban renewal plan. On October 2, 2000, by Roll Call No. 00-3948, Council adopted the Preliminary Development Plan for this project. On November 5, 2001, by Roll Call No. 01-3314, Council set December 3, 2001 as the date of public hearing on the proposed Des Moines Agrimergent Technology Park Plan. The Plan details the redevelopment activities to be conducted in the vicinity of SE 43rd Street and Vandalia Road. The Plan represents the extensive work of area agribusinesses and related industries, neighborhood leaders, infrastructure experts, affected property owners, higher education personnel, consultants, and government staff. A high-quality development for agribusinesses and related industries is proposed. The design emphasizes interconnectivity among physical, intellectual, economic, social, political, and other resources; accommodates multipurpose business and infrastructure functions; and promotes environmentally friendly construction and production. Through collaboration, businesses will enhance their profitability and the community will build its property tax base, increase the use of existing dense infrastructure, and significantly improve its quality of life. By building on Iowa's image as the agribusiness capital of the world, the Park can be developed as the center for advanced agribusiness and related industry development. Three different types of agribusiness activities will be accommodated-discovery, development/prototyping, and production. Discovery involves developing scientific knowledge to be applied to new products and processes. Development/Prototyping includes bringing new knowledge to fruition through practical applications. Production encompasses introducing and expanding commercial applications of new technologies. The Park will provide an excellent return on investment. The current assessed value of the area is only $12.7 million. At buildout, the new development will create an additional $420.4 million of tax base. This will generate $16.9 million annually in taxes. Land sales proceeds will yield about $32 million. Approximately 6,500 jobs will be created. Other benefits will include the potential to obtain substantial water and sewer revenue. Increased business competitiveness will result from developing this specialized niche for agribusinesses and related industries. It will also create a positive national identity for Des Moines and Iowa, which may attract further investment. Approximately $36.3 million will be required to assemble land, install infrastructure, and conduct related activities. Of this amount, the City has obtained over $3 million for land assemblage and infrastructure. Federal sources account for most of these funds. The City will continue to pursue a wide range of funding opportunities. Several timely implementation activities will take place upon Council approval of the Plan. These include securing additional funding for land assemblage and for surveying, platting, and design guideline development. It is anticipated that land assemblage will commence in spring/summer 2002. On November 13, 2001, the Urban Renewal Board recommended approval of the Plan. On November 15, 2001, the Plan and Zoning Commission recommended its approval. The Commission also indicated its specific interest in reviewing the proposed design guidelines for the Park in the near term. Anchor businesses, including Diamond Animal Health, Cargill, and Helena Chemical, are anticipated to remain and expand in the Park. Innovative partnerships will be developed to manage and market the development, provide value-added business services, and create more advantages for investors. Agribusinesses and related industries will grow within an environment dedicated to nurturing emergent ideas and realizing their global benefits.