Loading...
HomeMy WebLinkAbout04-20-2010 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Tuesday, April 20, 2010 4:30 p.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of the March 16, 2010 Economic Development Committee meeting minutes 3. Consider a recommendation of the Moss Green Urban Village TIF Ordinance 4. Energy Efficiency Revolving Loan Fund Program update 5. Staff time 6. Committee time 7. Adjournment PRELIMINARY MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE MARCH 16, 2010 LOBBY CONFERENCE ROOM, 8:00 A.M. Members Present: Regenia Bailey, Matt Hayek, Susan Mims Staff Present: Wendy Ford, Jeff Davidson Others Present: Gigi Wood, Greg Hennigan RECOMMENDATIONS TO COUNCIL: None. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 8:00 A.M. CONSIDER APPROVAL OF THE MARCH 2, 2010 ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES: It was moved by Hayek and seconded by Mims to approve the March 2, 2010 meeting minutes as submitted. Hayek clarified the spelling of Gigi. The motion carried unanimously. Ford added the clarification which had been submitted by Jody Braverman of Southgate Development Services. Braverman clarified the statement in the March 2, 2010 meeting minutes: "Sears Holdings, which owns the K-Mart building in the Pepperwood Plaza, is seeking to make changes to the building in order to construct a laundromat on the site." Braverman stated that Kobrin Development Company, Inc. f/k/a Southgate Development Company, Inc. has owned this property since it was built. CONSIDERATION OF MOSS GREEN URBAN VILLAGE URBAN RENEWAL PLAN, APPROXIMATELY 243 ACRES NORTH OF 1-80 AND WEST OF HIGHWAY ONE: Ford stated that the Iowa City Planning & Zoning Commission would be considering the proposed Moss Green Urban Village Urban Renewal Plan on Thursday, March 18. She would forward the recommendation from the Economic Development Committee to them prior to the Thursday meeting. Ford stated that the Urban Renewal Plan area totaled 243 acres because it included the Hills Bank -Llewellyn Trust property that would enable Oakdale Blvd. to be extended from Highway 1. Ford clarified that the Urban Renewal Plan was principally for the purposes of using Tax Increment Financing (TIF) for the Moss Green project. Ford stated that two questions needed to be addressed in evaluating the Urban Renewal Plan: Does it fit with the goals of the City's economic development policies? Is it consistent with the Iowa City Comprehensive Plan? Ford reviewed the points which addressed these questions. Ford stated that under Iowa state law the Moss Green Urban Village Urban Renewal Area would be designated for economic development not slum and blight. There would be a sunset of 20 years. Mims asked about the TIF certification process and Ford clarified. Hayek asked about the estimated cost of infrastructure improvements in the $10-15 million range. ' Davidson stated that approximately $10 million was the developer's estimated cost to extend sewer, water, and road infrastructure to the Economic Development Committee Meeting March 16, 2010 property. Ford stated that the additional $5 million was to incent development of individual properties. Mims asked if the EDC's recommendation was just to the Planning & Zoning Commission and not to the City Council. Davidson clarified that it was just to the Planning & Zoning Commission and that P&Z would make a recommendation to the City Council. It was moved by Mims and seconded by Hayek to recommend approval of the Moss Green Urban Village Urban Renewal Plan. The motion carried unanimously. COMMITTEE TIME: Bailey announced a Smart Growth conference being sponsored by the Iowa Department of Economic Development in May. Hayek asked if any further news was available about the Asoyia failure. Ford responded she did not have additional information, but no City funds had been used to incent the project. STAFF TIME: No report. ADJOURNMENT: Bailey stated that the next meeting was tentatively set for April 27 which is a City Council meeting day. Bailey stated April 6 was also a possibility for the group to meet prior to the City Council meeting. Ford stated she would clarify dates and times once agenda items were known. It was moved by Hayek and seconded by Mims to adjourn. The motion carried unanimously. 2 Economic Development Committee Meeting March 16, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM w w NAME EXP. No N Regenia 01/02/11 X X X Bailey Matt 01/02/11 X X X Hayek Susan 01/02/11 X X X Mims Key: X = Present O = Absent O/E = Absent/Excused S/PCD/minutes/EcoDev/2010/03-16-10 EcDevComm Mtg.doc CITY OF IOWA CITY MEMORANDUM Date: April 16, 2010 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Recommendation to the City Council on Moss Green Urban Village Urban Renewal Area Tax Increment Financing Ordinance The Moss Green Urban Renewal Plan currently under consideration by the Council lays the foundation for the area to be designated a Tax Increment Financing (TIF) district. The second step to implementing a district within the Urban Renewal Area is to adopt a TIF ordinance. The TIF ordinance would allow the City Council to approve the use tax increment financing, in accordance with separate developers agreements, to help meet the objectives of the urban renewal plan. As you recall, the objectives of the Moss Green Urban Renewal Plan include the following: • To encourage and support development that will expand the taxable values of property within the Urban Renewal Project Area; • To plan for and provide sufficient land for new commercial and industrial development in a manner that is efficient from the standpoint of providing services; • To help finance the cost of constructing street and other infrastructure improvements to support new development; • To stimulate, through public action and commitment, private investment in new commercial and industrial development; • To encourage and support development that will result in job creation; • To encourage the use of green technologies in infrastructure development, land use and new buildings; • To encourage the development of start-up firms and the attraction of new businesses; • To provide for the orderly physical and economic growth of the city; • To enhance the availability of sites to accommodate the construction of industrial, commercial, office, research park and associated uses; • To assist with the provision of infrastructure to enable competitive land prices and lease rates and thereby provide a more marketable and attractive investment climate; • To make public improvements as deemed necessary by the City to support new industrial, commercial, office, research park and associated uses; and • To provide financial incentives and assistance to qualifying businesses. In order to achieve some of these goals, the City may desire to provide financial assistance in the form of tax increment financing when there is a public benefit component to a project within the district. Let's discuss this TIF ordinance and prepare to make a recommendation to the City Council about it at your meeting on the 201n Please feel free to call me with any questions. Prepared by: Wendy Ford, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5248 ORDINANCE NO. AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE MOSS GREEN URBAN VILLAGE URBAN RENEWAL AREA, IN THE CITY OF IOWA CITY, COUNTY OF JOHNSON, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF IOWA CITY, COUNTY OF JOHNSON, IOWA CITY COMMUNITY SCHOOL DISTRICT AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, REBATES, GRANTS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY SAID CITY IN CONNECTION WITH SAID URBAN RENEWAL REDEVELOPMNENT PROJECT. WHEREAS, the City Council of the City of Iowa City, Iowa, after public notice and hearing as prescribed by law and pursuant to Resolution No. passed and approved on the day of , 2010, adopted an Urban Renewal Plan (the "Urban Renewal Plan") for an urban renewal area known as the Moss Green Urban Village Urban Renewal Project Area, (the "Urban Renewal Project Area"), which Urban Renewal Project Area includes the lots and parcels located within the area legally described as follows: MOSS -GREEN URBAN VILLAGE A part of the subdivision of the Northeast One -Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten (10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight (8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres, more or less; and All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of the Southeast Quarter lying North of the Interstate 80 Right -of -Way line and the East 63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80 Right -of -Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, being more particularly described as follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right -of - Way line of Interstate 80; THENCE South 82024" 5" West, along the North Right -of -Way line of Interstate 80, a distance of 646.23 feet; THENCE continuing west along the North Right -of -Way line of Interstate 80, North 88011'05" West, a distance of 1,731.77 feet; THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 89041'57" East, along said North line of the Southeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres, more or less; and HILLS BANK & TRUST and NEAL N. LLEWELLYN: The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa and that portion of The Southeast Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more or less. WHEREAS, expenditures and indebtedness are anticipated to be incurred by the City of Iowa City, Iowa in the future to finance urban renewal project activities carried out in furtherance of the objectives of the Urban Renewal Plan; and WHEREAS, the City Council of the City of Iowa City, Iowa desires to provide for the division of revenue from taxation in the Urban Renewal Project Area, as above described, in accordance with the provisions of Section 403.19 of the Code of Iowa, as amended. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCI OF THE CITY OF IOWA CITY, IOWA: Section 1. That the taxes levied on the taxable property in the Urban Renewal Project Area legally described in the preamble hereof, by and for the benefit of the State of Iowa, City of Iowa City, County of Johnson, Iowa City Community School District, and all other taxing districts from and after the effective date of the Ordinance shall be divided as hereinafter in the Ordinance provided. Section 2. That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Project Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City of Iowa City certifies to the County Auditor the amount of loans, rebates, grants, advances, indebtedness, or bonds payable from the division of property tax revenue described herein, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid. Section 3. That portion of the taxes each year in excess of the base period taxes determined as provided in Section 2 of this Ordinance shall be allocated to and when collected be paid into a special tax increment fund of the City of Iowa City, Iowa hereby established, to pay the principal of and interest on loans, grants, rebates, monies advanced to, indebtedness, whether funded, refunded, assumed or otherwise, including bonds or obligations issued under the authority of Section 403.9 or 403.12 of the Code of Iowa, as amended, incurred by the City of Iowa City, Iowa, to finance or refinance, in whole or in part, urban renewal projects undertaken within the Urban Renewal Project Area pursuant to the Urban Renewal Plan, except that taxes for the payment of bonds and interest of each taxing district shall be collected against all taxable property within the Urban Renewal Project Area without any limitation as hereinabove provided. Section 4. Unless or until the total assessed valuation of the taxable property in the Urban Renewal Project Area exceeds the total assessed value of the taxable property in the Urban Renewal Project Area as shown by the assessment roll referred to in Section 2 of the Ordinance, all of the taxes levied and collected upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respective taxing districts as taxes by or for said taxing districts in the same manner as all other property taxes. Section 5. At such time as the loans, grants, rebates, advances, indebtedness, bonds and interest thereon of the City of Iowa City, Iowa referred to in Section 3 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Urban Renewal Project Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property. Section 6. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the division of taxes from property within the Urban Renewal Project Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law, it shall not affect other provisions or application of the Ordinance which shall at all times be construed to fully invoke the provision of Section 403.19 of the Code of Iowa with reference to the Urban Renewal Project Area and the territory contained therein. Section 7. This Ordinance shall be in effect after its final passage, approval and publication as provided by law. Passed and approved this day of , 20 MAYOR ATTEST: CITY CLERK Approved by City Attorney's Office S CITY OF IOWA CITY MEMORANDUM Date: April 14, 2010 To: Economic Development Committee From: Kristopher Ackerson, Assistant Transportation Planner Re: Environmental Conservation Opportunity Revolving Loan Fund (ECO-RLF) In April 2009, a new federal stimulus program called the Energy Efficiency & Conservation Block Grant (EECBG) program was created. The City of Iowa City was awarded $692,300 to create and implement an energy efficiency strategy. Based on the eligible uses, three-year deadline to spend the funds and opportunities to coordinate with the existing programs, staff is implementing the following strategy approved by Council last fall to leverage the EECBG funds: A. Municipal Energy Efficiency Retrofits — Approximately $350,000 in EECBG Funds B. Energy Conservation Opportunity (ECO) Revolving Loan Fund — Approximately $250,000 (maximum permitted) in EECBG Funds C. Public Education of Existing Energy Audit Programs — Approximately $17,300 in EECBG Funds D. Environmental Coordinator — Approximately $75,000 in EECBG Funds over three years The purpose of the Energy Conservation Opportunity Revolving Loan Fund is to increase commercial energy efficiency investment in commercial and nonprofit structures. The revolving loan mechanism allows businesses and nonprofits to repay loans through the stream of cost savings realized from the projects. • The interest rate is 0.5% per year (or 5% below prime) for a maximum of 10 years. • The amount that can be borrowed ranges from $25,000 to $125,000. • The funds may be used for up to 90% of the total project cost; 10% must be provided by the owner or other financing method. To increase access to this new funding, the range of eligible projects is extensive, including but not limited to: • Energy efficient lighting • High efficiency heating, ventilation, and air conditioning systems (HVAC) • Building shell improvements (insulation, window film, roofing reflectivity) • Doors, windows, and skylights • Electrical systems and components including lighting and energy management systems • Renewable energy systems such as wind, solar, geothermal, and biomass Conclusion For additional information regarding this new program, please contact Wendy Ford at 356-5248 or Wendy-Ford@Iowa-City.org. Cc: Jeff Davidson Rick Fosse John Yapp Dave Elias Dale Helling Brenda Nations Wendy Ford E"14=9 COO!) C#4!� o cool!) 0 PON" 0 PWAMMq Con ommmmo C'q C) coo) E CD buo CL ca- C:) cn O CD C-) M C'--J cn 3: CO CV Ci C--') CIO W -I-- w - C5 C) i C - ) CL C:) C) m O LLI CD C:) L O:> Cr LLJ V) W Ga C005 0 PMONO Q05 0 e Pm* (It -*Mow Qo� coon Ovzzs emol 40 emol 1904S U012ulqseM'3 Olt U0ISIAIaju@wd0j9Aaa0IW0U003 AI!D emol ;o AI!D CZ) 1= CK3 C> CD L.L-: r--4 cC3E %4— C) Co C/) co m E W CD CD cu CD -Zr CD CD ML w >< w CIO) U-J cn C-> E L3 M w W C�r CL) C/D CD C=) C:) C=) cn CD CD w C) CD E E c> © CD E cD CD m C: -C3 +— L.- =L C) E 6 C -D CD m -��o 3r. — - C�,,j M C:L V) W -rE in ce) Q- =3 w CD CL CL CD u cn C> CD oa Cr w =3 Cn C:) _C3 -C:l cn 0,� _C) ca -M -c:3 M- C) U-j C: m E E E C/i w E r-r =3 M CD w cn CD CD LM - C:o CD =3 E E = = 10 E (D m CV) cD w %+- C) C::o C W CD CD >< C�l Co >< ca C,3 m :a m C) C,,j E �F: E CT zip CD m C.3 w top) cu CIO E U-j m E E CL w -C:) cn �7 = m E M M >., 0 0 CD Cl_ cc-55 8� " cqa C) C, ,::z L- %+— M C:> (3.) (_.-) CD C) �i m LA- LLJ �: -Md C2cv Q C/) C.) C> C:) CIO C.) 0� C40 CIO C) CIO C-> w C) CK3 C> C/) CD- C107 =3 C/) cu CD E E CD W O cn (n w C:L >.% E coo) C:k C5 W C:> -1=3 >-% CL — CD Cl- -C� CS tab cu Ca cn -zv- -c3 w cy E C.-) C� S Z; C? co w CV i C E W C:) -M CD W EQ. w m do cu w = = uj C-3 ` E O * 4 C-li r---4 P--4 CL %-- w W V) CD :> w C:D E co CD C-.) CV ca CU C-0 01,4 CU cJ cn CD 3 C c-') w w L- Cl L+- cn- �. 00 �u0 C/) I= CD I! z L- C> fA CD w C-> al O CD 2C: . CL cn 1 1 'a> E E CZ ca- m c:o E -2 CD cD E %+- cn C* cn •.= 3: CD M CO w E = W C) L- E -m to cq3 cla C) — CL) .� C) Cc V) Gn E 'D cn w E cz C:) C..� " W GO