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Date
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November 19, 2007
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Agenda
Item No. 50C Roll
Call No. 07- Communication No. 07-673
Submitted by: Richard A. Clark, City Manager |
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AGENDA
HEADING:
Public Hearing
and authorizing various related actions on the Beaverdale Commercial Area Urban
Renewal Plan.
SYNOPSIS:
Recommend
to hold the public hearing on the creation
of a new urban renewal area and tax increment district for the Beaverdale commercial
area along
Other actions recommended as part of the approval of the urban renewal plan are as follows:
- Resolution of necessity finding the urban renewal area constitutes an area appropriate for economic development, redevelopment for commercial use and public improvements related to housing and residential projects.
- Receive and file communication from the Plan and Zoning Commission on conformance of the plan with the Des Moines 2020 Community Character Plan.
- First reading of an ordinance designating the urban renewal area as a tax increment district.
-
Resolution directing the Joe's Square project (
FISCAL
IMPACT:
Amount:
Cash available from the TIF for ten years from FY08/09 to FY2017/2018;
the estimated net annual cash available to the City, based on the current known
projects, ranges from about $40,000 initially to about $300,000 by FY2017/2018
after payments for the Joe’s Square and former Rice School property
developments are made.
Funding Sources: The tax increment funding (TIF) for this area will be disbursed on a cash-available basis. All development agreements using TIF assistance will be based on annual payments and the property tax revenues produced by new development. The specific developer agreements must be approved by the City Council.
Other: State urban renewal law requires the provision
of financial assistance to low/moderate income (LMI) housing, based on a
specified percentage of LMI within a county when TIF is used for public
improvements related to residential development in an economic development-based
urban renewal area. (This provision does
not apply to the Metro Center Urban Renewal Areas and to other urban renewal
areas that are designated on the basis of slum and blight). Since TIF may be
used for such improvements in the Beaverdale Commercial Urban Renewal Area, the
state-specified LMI of 39.7% will require an annual commitment for LMI housing
in an amount ranging from about $37,000-$120,000 annually based upon the
anticipated TIF expenditures for public improvements related to housing. The City will meet this State requirement
within its annual allocation of discretionary funding to the Neighborhood
Development Corporation, Neighborhood Finance Corporation, Polk County Housing
Trust and/or Community Development Block Grant.
ADDITIONAL INFORMATION:
Duration
The urban plan and tax increment
designation will extend for a period of ten years beginning with the second
fiscal year after the year of initial TIF certification. The purpose of designating this
retail/commercial corridor as urban renewal areas is to encourage retail and
commercial development. The concurrent TIF
designation provides a funding source to assist public and private projects. In
accordance with current state law, this area cannot be extended past its ten
year period.
Urban
Design Board Recommendation
The
Board
unanimously recommended approval at its meeting on November 6, 2007.
Consultation – Tax
Increment
The
required consultation meeting with representatives from
Development Requirements
in the Urban Renewal Plan
The Beaverdale
Urban Renewal Plan differs from some previously-adopted urban renewal plans in
that specific design criteria must be met by projects in order to qualify for
use of TIF. These conditions are contained in Section II.C (General Development
Requirements) of the Plan and have been generated in part to address the
Council’s previously stated desire for Beaverdale projects using City
assistance to be “green.”
Development Agreements
Initial
projections, based on the two proposed development plans (Joe’s Square at
PREVIOUS
COUNCIL ACTION(S):
Date: November
5, 2007
Roll Call Number: 07-2155
Action Development Agreement and authorizing execution of contract documents
for a $350,000 grant to Joe’s Square L.L.C. for development of a mixed-use
project at
Date: September
24, 2007
Roll Call Number: 07-1892
Action: Setting Date of Hearing and authorizing various
related actions on the Beaverdale Commercial Area Urban Renewal Plan,
(11-19-07) (Council Communication No. 07-579) Moved by Vlassis to adopt. Motion
Carried 7-0.
Date: August
20, 2007
Roll Call Number: 07-1678
Action: Receive and file communication from Office of
Economic Development regarding preliminary terms of agreement with Joe’s Square
LLC for development of mixed-use project at
Date:
March 26, 2007
Roll Call
Number: 07-579 thru 07-581
Action: On request from Joe’s Square, LLC, to rezone
property at
(A)
First consideration of ordinance above.
Moved by Vlassis that this ordinance be considered and given first vote
for passage. Motion Carried 7-0.
(B)
Final consideration of ordinance above, (waiver requested by applicant),
requires 6 votes. Moved by Vlassis that the rule requiring that an ordinance
must be considered and voted on for passage at two Council meetings prior to
the meeting at which it is to be finally passed be suspended, that the
ordinance be placed upon its final passage and that the ordinance do now pass,
#14,638. Motion Carried 7-0.
Date:
March 12, 2007
Roll Call Number:
07-455
Action: On request from Joe’s Square, LLC, to rezone
property at 4049 Fagen Drive from “C-2” (General Retail and Highway Oriented
Commercial) to “NPC” (Neighborhood Pedestrian Commercial) to allow for
mixed-use pedestrian-oriented redevelopment, (3-26-07). Moved by Mahaffey to adopt. Motion Carried 6-1.
Date:
November 6, 2006
Roll Call
Number: 06-2248
Action: Communication from William J. Lillis
requesting City Council to consider initiating a Tax Increment Financing (TIF)
District in the Beaverdale area.
SPONSORS: Coleman and
Vlassis. Moved by Vlassis to refer to
City Manager for review and recommendation.
Motion Carried 6-0.
Date: March
24, 1997
Roll Call Number: 97-1020
Action:
To
solicit Citizen input regarding proposed policy changes for Tax Increment
Financing Districts (TIF). Moved by Hensley to receive, file and approve the City Manager's proposal
for a 75/25 distribution of tax increment funds (TIF), as more specifically
outlined in the 1997-98/2002-03 Capital Improvements Program Budget. Motion
Carried 5-1-1. Nays: Flagg.
BOARD/COMMISSION
ACTION(S):
Date:
March 1, 2007
Roll Call
Number: N/A
Action: Plan and Zoning Commission recommends
approval of a request from Joes’s Square, LLC to rezone property located at
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Second and final readings of tax increment ordinance
for December 4, 2007 meeting (request to waive separate readings by City
Manager).