HomeMy WebLinkAbout2000-08-15 Public Hearing NOTICE OF PUBLIC HEARING ON PLANS,
SPECIFICATIONS, FORM OF CONTRACT
AND ESTIMATED COST FOR
THE 2000 PAVEMENT MARKING PROJECT
IN THE CITY OF IOWA CITY, IOWA
TO ALL TAXPAYERS OF THE CITY OF IOWA
CITY, IOWA, AND TO OTHER INTERESTED
PERSONS:
Public notice is hereby given that the City Council
of the City of Iowa City, Iowa, will conduct a public
hearing on plans, specifications, form of contract
and estimated cost for the construction of the
2000 Pavement Marking Project in said City at
7:00 p.m. on the 15th day of August, 2000, said
meeting to be held in the Council Chambers in the
Civic Center in said City, or if said meeting is
cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk.
Said plans, specifications, form of contract and
estimated cost are now on file in the office of the
City Clerk in the Civic Center in Iowa City, Iowa,
and may be inspected by any interested persons.
Any interested persons may appear at said
meeting of the City Council for the purpose of
making objections to and comments concerning
said plans, specifications, contract or the cost of
making said improvement.
This notice is given by order of the City Council
of the City of Iowa City, Iowa and as provided by
law.
MARlAN K. KARR, CITY CLERK
R-1
Publish 7/27
NOTICE OF PUBLIC HEARING TO CONSIDER
APPROVAL OF A PROPOSED SYCAMORE AND FIRST
AVENUE URBAN RENEWAL PLAN FOR A PROPOSED
URBAN RENEWAL AREA IN THE CITY OF IOWA
CITY, IOWA
The City Council of the City of Iowa City, Iowa, will hold a public hearing before
itself at its meeting which commences at 7:00 o'clock P.M. on August 15, 2000 in the
Council Chambers, Civic Center, 410 East Washington Street, Iowa City, Iowa to
consider adoption of a proposed Sycamore and First Avenue Urban Renewal Plan (the
"Plan") concerning a proposed Urban Renewal Area in Iowa City, Iowa legally described
as follows:
Commencing at the Southeast comer of the Northeast quarter of Section 23,
Township 79N, Range 6W, in accordance with the Records of the Johnson
County Auditor's Office; thence West along the South line of the Noaheast
quarter of Section 23 to the Southwest comer of the Noaheast quarter of
Section 23; thence 66 feet to a point perpendicular on the Westem Right-of-
Way line of Sycamore Street, thence Northerly along said Right-of-Way
line to the intersection of the Western Right-of-Way line of Sycamore Street
and the Northern Right-of-Way line of U.S. Highway 6, which is the Point
of Beginning.
Thence Northerly along the Westem Right-of-Way line of Sycamore Street
to the Southeastern comer of Johnson County Auditor' s Parcel 10-14-386-
003, thence 66 feet to a point perpendicular on the Eastem Right-of-Way
line of Sycamore Street; thence Northerly along the Eastem Right-of-Way
line of Sycamore Street to the Northwestem comer of Johnson County
Auditor's Parcel 10-14-457-003; thence Easterly 147.61 feet to an angle
point of said Parcel; thence Noaheasterly 413.83 feet; thence Northerly
57.36 feet to the Southern Right-of-Way line of Lower Muscatine Road;
thence Noahwesterly along the Southem Right-of-Way line of Lower
Muscatine Road to a point perpendicular 33 feet from the Westem comer of
Johnson County Auditor' s Parcel 10-14-452-004; thence Northeasterly
223.82 feet to the Northern comer of said parcel; thence Southeasterly 40
feet to the Eastern comer of said parcel; thence Noaheasterly along the
property line of Johnson County Auditor's Parcel 10-14-452-002 to its
Nonhem comer; thence Southeasterly 150 feet along the property line of
said parcel to its Eastern comer; thence Southwesterly 224.9 feet to the
intersection of said parcel's Southern comer and the Northern Right-of-
Way line of Lower Muscatine Road.
Thence Southeasterly along the Northern Right-of-Way line of Lower
Muscatine Road to the Noahera Right-of-Way line of Mall Drive; thence
Noaheasterly 1533.09 feet along the Noahera Right-of-Way line of Mall
Drive to the Southern Right-of-Way line of the Iowa Interstate Railroad;
thence Southeasterly along said Right-of-Way line to its intersection with
the Eastem line of Section 14.
Thence South along the Eastern line of Section 14 to the Noahwest comer
of Johnson County Auditor' s Parcel 10-13 -353 -002; thence Easterly 176
feet to the Eastem property line of said parcel; thence Southwesterly along
the Eastern property line of Parcel 10-13-353-002 to it's Southeast comer;
thence Northwesterly to the Eastern line of Section 23; thence South along
the Eastern line of Section 23 to the Southeast comer of the Johnson County
Auditor' s Parcel described as 10-23 - 103, 001 through 029, then
Southwesterly 988.76 feet to the Noahera Right-of-Way line of Lower
Muscatine Road, crossing said Right-of-Way line to the intersecting point
of the Southern Right-of-Way line of Lower Muscatine Road and the
Noaheastern comer of Johnson County Auditor's Parcel number 10-23-
105-003; thence Southwesterly 157.9 feet to the Northern Right-of-Way
line of U.S. Highway 6; thence Noahwesterly 307.82 feet to the intersection
of the Northern Right-of-Way line of U.S. Highway 6 and the Eastern
Right-of-Way line of First Avenue; projecting across the First Avenue
Right-of-Way along the Noahera Right-of-Way line of U.S. Highway 6 to
the intersection of the Western Right-of-Way line of First Avenue and the
Noahera Right-of-Way line of U.S. Highway 6; thence Westerly along the
Northern Right-of-Way line of U.S. Highway 6 a distance of 1123.13 feet to
its intersection with the Eastern Right-of-Way line of Sycamore Street,
projecting across the Sycamore Street Right-of-Way along the Northern
Right-of-Way of U.S. Highway 6 to the intersection of the Western Right-
of-Way line of Sycamore Street and the Northern Right-of-Way line of U. S.
Highway 6, to the Point of Beginning.
which land is to be included as part of this proposed Urban Renewal Area.
A copy of the Plan is on file for public inspection in the office of the City Clerk,
City Hall, Iowa City, Iowa.
The City of Iowa City, Iowa is the local public agency which, if such Plan is
approved, shall undeaake the urban renewal activities described in such Plan.
The general scope of the urban renewal activities under consideration in the Plan is
to assist qualified industries and businesses in the Urban Renewal Area through various
public purpose and special financing activities outlined in the Plan. The general scope of
the urban renewal activities under consideration in the Plan is to rehabilitate, conserve
and redevelop land, buildings and other improvements within such area. To accomplish
the objectives of the Plan, and to encourage the further development of the Urban
Renewal Area, the Plan provides that such special financing activities may include, but
not be limited to, the making of loans or grants of public funds to private entities under
Chapter 15A of the Code of Iowa. The City also may install, construct and reconstruct
streets, parking facilities, open space areas and other substantial public improvements.
The Plan provides that the City may issue bonds or use available funds for such purposes
and that tax increment reimbursement of such costs will be sought if and to the extent
incurred by the City. The Plan initially proposes no specific public infrastructure or site
improvements to be undertaken by the City, but provides that the Plan may be amended
from time to time to respond to development opportunities.
Any person or organization desiring to be heard shall be afforded an opportunity to
be heard at such hearing.
This notice is given by order of the City Council of Iowa City, Iowa, as provided
by Section 403.5 of the City Code of Iowa.
Dated this 27th day of July, 2000.
s/Marian K. Karr
City Clerk, Iowa City, Iowa
/' 8//f'
Current Constitutional Debt Limit of the City of Iowa City
The Constitution of the State of Iowa, Article XI, Section 3, provides as follows:
"Indebtedness of political or municipal corporations. No county, or other political or
municipal corporation shaft be aftowed to become indebted in any manner, or for any
purpose, to an amount, in the aggregate, exceeding five per centurn on the value of
taxable property within such county or corporation-to be ascertained by the last State
and County tax lists, previous to the incurring of such indebtedness.'
Debt Limit Computation
Total Assessed Actual Valuation $2,416,782,699
Legal Debt Limit of 5% of 1998 Assessed Actual Value $120,839,135
Debt Chargeable Against Limit $46,165,000
Legal Debt Limit Available $74,674,135
Proposed Amount of Indebtedness:
Through the actions of this urban renewal plan, the City of Iowa City proposes to potentially
incur indebtedness for public infrastructure improvements, private site improvements, and
financial incentives to qualifying businesses. Given the uncertainty of the needs of future
business development projects within the Urban Renewal Area, the proposed amount of
indebtedness is difficult to determine at this time. The proposed amount of indebtedness to be
incurred under this Urban Renewal Plan, including loans, advances, indebtedness, or bonds
which qualify, could equal approximately $1- $3,5 million over the 20 year period of the Urban
Renewal Plan.
\\citynt\dschoon$\~les~prspct\sycamore first avenue plan\sycamore first avenue urp.doc 8
Current Constitutional Debt Limit of the City of Iowa City
The Constitution of the ~,tate of Iowa, Article XI, Section 3, as follows:
"Indebtedness of l~litical or municipal No county, or other political or
municipal corporatio~'.,Sha~ be aftowed to indebted in any manner, or for any
purpose, to an amount,. in the aggregate, five per centum on the value of
taxable property within such county or be ascertained by the last State
and County tax lists, previous to the ' of such indebtedness."
D~,,,bt Limit )utation
Total Assessed Actual Valuation "\ $2,416,782,699
Legal Debt Limit of 5% of 1998 Jal Value $120,839,135
Debt Chargeable Against Limit $46,165,000
Legal Debt Limit Available $74,674,135
Proposed Amount of Indebtedness:
/
Through the actions of this urban rer/'E lan, th City of Iowa City proposes to potentially
!ncur indebtedness f. or public infras .u~. improve . ents. The proposed a.mount of
I ~n pr n Renewal
../ "
\\citynt\dschoon$\~les\prspct\sycamore first avenue plan\sycamore first avenue urp.doc 8
City of Iowa City
MEMORANDUM
Date: August 9, 2000
To: City Council
From: Steve Atkins, City Manager
David Schoon, Economic Development CoordinatOr
~_._,._.-
Re: Central Business District Urban Revitalization Plan /~~
On August 15, the City Council will be holding a public hearing and considering a resolution on
the Sycamore and First Avenue Urban Renewal Plan and be giving first consideration of the
Sycamore and First Avenue Tax Increment Financing Ordinance. Also on the agenda is a
motion setting a public hearing for September 12, 2000, on an agreement for private
redevelopment between the City and MGD L.C. for the Sycamore Mall project.
Planning and Zoning Commission Recommendation and Consultation with Affected
Taxing Entities
Since the setting of the public hearing on the urban renewal plan, the Planning and Zoning
Commission has met and reviewed the urban renewal plan for its conformity with the
Comprehensive Plan. The Commission's written recommendation is attached.
In addition to the Commission's review of the Plan, staff has held the formal consultation with
representatives of the affected taxing entities. A representative from Johnson County (Mike
Lehman) and a representative from the Iowa City Community School District (Jerry Palmer)
were in attendance. The formal consultation allowed the affected taxing entities the opportunity
to ask questions regarding the urban renewal plan, and more specifically the use of tax
increment. financing. There was little discussion regarding the impact of using tax increment
financing on the other taxing jurisdictions, other than the school district representative pointing
out that the school district's physical plant and equipment levy was not available for tax
increment financing. The Code of Iowa outlines a process by which the affected taxing entities
may provide written recommendations regarding the division of revenue (tax increment
financing). As of the date of this memo, neither the County, the School District, nor the
Kirkwood Community College have provided written recommendations regarding the division of
reven u e.
Economic Development Guidelines
When the Council set the public hearing on the Urban Renewal Plan, Council discussed the
appropriateness of applying the economic development financial assistance guidelines to
projects applying for property tax rebate under the Sycamore and First Avenue Urban Renewal
Plan. In response to that discussion, staff has prepared a memo addressing this issue.
The primary objective of the Plan is to encourage the revitalization of commercial activity in the
Sycamore and First Avenue area. This objective focuses on encouraging capital investment in
an existing commercial core area that will revitalize and spur commercial and other activity in
the area. The focus is not job creation, but capital investment and maintaining the health and
vitality of an existing commercial core.
Given the focus on encouraging capital investment to spur activity in the urban renewal area, it
becomes difficult to determine with each project which entity should be evaluated against the
economic development guidelines - the developer/property owner of the project or the business
occupying the project. With applying any financial assistance guidelines, it must first be
determined to which entity the guidelines should be applied. In applications to date for financial
assistance, the business and property owner have been the same. In the Sycamore and First
Avenue Urban Renewal Area, it will be the property owner applying for the rebate. However, it
will be the business occupying the building that will actually create the economic activity in the
building. In most circumstances it appears most appropriate to evaluate the entity occupying
the building, not the entity developing the project. In the Sycamore and First Avenue area a
project may have space for many different tenants, and all of the space may not be leased until
sometime after the project is completed. The timing of the application for property tax rebate
and the leasing of all of the space makes it more difficult to adequately evaluate the project
based on the economic development guidelines.
Rather than considering the financial assistance guidelines with each application for property
tax rebate, staff recommends that Council consider the financial assistance guidelines while
making its decision whether or not to approve the Urban Renewal Plan. This is similar to the
course of action taken with the downtown property tax exemption district. The attached
summary briefly addresses how designating the Sycamore and First Avenue area an urban
renewal area compares to our financial assistance guidelines. Based upon this review and
given that the primary goal of the plan is to encourage revitalization of commercial activity in the
urban renewal area through capital investment, staff recommends that the City Council adopt
the Sycamore and First Avenue Urban Renewal Plan.
Agreement for Private Redevelopmerit
Due to vacations over the last several weeks, City staff and the developers' attorney continue to
work out the details for the agreement for private redevelopment. The attachment outlines the
more significant requirements of the agreement. The agreement for private redevelopment will
be finalized in time for publication and will be before the Council for its consideration on
September 12, 2000.
Cc: Karin Franklin
Ken Hayhie
Sarah Holecek
Kirsten Frey
u:\files\prspctLsycamore first avenue plan\cc0815.doc
City of Iowa City
MEMORANDUM
Date: August 3, 2000
To: City Council
Planning and Zoning Com~issio~ ~ ' ~':~
Re: Planning and Zoning Commission Review of the Sy~more and First Avenue Urban
Renewal Plan
At its regular meeting of August 3, 2000, the Planning and Zoning Commission reviewed the
Sycamore and First Avenue Urban Renewal Plan for its conformity with the Iowa City
Comprehensive Plan - 1997, which is the general plan for the development of the City of Iowa
City as a whole. By a vote of 5-0-1 (Chait abstaining), the Planning and Zoning Commission
found that the Sycamore and First Avenue Urban Renewal Plan conforms With the Iowa City
Comprehensive Plan -1997.
u:\~les\prspct%sycamore first avenue plan\p&z memo.doc
FINANCIAL ASSISTANCE GUIDELINES
SYCAMORE AND FIRST AVENUE URBAN RENEWAL PLAN
PRIVATE FINANCIAL CONTRIBUTION AS COMPARED TO PUBLIC ASSISTANCE
REQUESTED
· A greater percentage of contribution by the assisted business;
Since the amount of TIF rebate available to a project is based upon existing property tax
levies and the value of the subject project, the percentage of the tax rebate received
compared to the investment (contribution by the assisted business) will be the same from
project to project within the urban renewal area.
· A shorter payback period or expiration for financial assistance;
With the initial qualifying project, the City is establishing a policy that the life of a property
tax rebate will not exceed 7 years. Once the life of the rebate expires, the qualifying project
will pay 100% of its property tax obligation.
· A lower amount of financial assistance per job
This assistance is indirect and will vary project by project and tenant by tenant.
CONSISTENCY WITH COMPREHENSIVE PLAN/CAPITAL IMPROVEMENTS
PROGRAM/ECONOMIC DEVELOPMENT POLICY
· Projects not requiring new public capital improvements;
The only potential new public improvements foreseen by the City would be potential
streetscape improvements within the public rights-of-way.
· A greater contribution by the developer for public infrastructure improvements;
It is anticipated that the City would pay for streetscape improvements in the public rights-of-
way.
Jobs within industry/technology groups on opportunity list;
With each specific qualifying project the types of jobs will vary. Given the objectives of the
urban renewal plan to encourage the revitalization of retail, theaters, restaurants, and
business and personal service establishments, most of the businesses locating in the area
are not included on the City's industry/technology groups.
· Start-up companies and expansions of existing local operations;
This will vary project by project. It is anticipated that some of the businesses locating in
qualifying projects may be start-up companies or an expansion of an existing local
operation.
· A greater amount of property tax base expansion.
With the initial project, the City is establishing a policy that a qualifying project must
increase the actual value of the property by at least fifteen (15%) in order to qualify for the
property tax rebate. A $200,000 property would only need to increase its value by at least
1
Sycamore and First Avenue August 2000
Urban Renewal Plan
$30,000 to qualify for the property tax rebate, and a $4.66 million property (Sycamore Mall)
would need to increase its value by at least $700,000 to qualify.
QUALITY OF JOBS TO BE CREATED
· Higher wage rates;
· Full-time, long-term, non-seasonal positions;
· Commitment to a safe workplace;
· Contribution to health insurance benefits;
· Provision of fringe benefits (e.g. vacation, sick leave, and retirement plans).
These will all vary project by project. Retail/personal service/restaurant businesses will
predominately pay lower wage rates, provide temporary, part-time positions, and offer few
health insurance benefits and fringe benefits.
ECONOMIC IMPACT
· Contribution to diversification of Johnson County economy;
Included in the City's economic development policy is a strategy to encourage commercial
activity to take place in existing commercial core areas or neighborhood commercial centers
and to discourage the proliferation of new major commercial areas. Maintaining healthy
existing commercial core areas dispersed throughout the community helps maintain the
vitality of all economic development activity within the community.
· Potential for future growth of industry;
Based on the premise that the health of the existing commercial core areas impacts the
economic health of the rest of the community, a healthy Sycamore Mall will support the
growth of existing and new industries in the community.
· Builds on the resources, materials, and workforce of the local community.
Revitalizing an existing commercial core area builds on the existing resources, investment
and workforce of the area.
2
Sycamore and First Avenue August 2000
Urban Renewal Plan
ENVIRONMENTAL IMPACT
· The more environmentally sound the company's operation
Most retail/office/restaurant establishments allowed in the Community Commercial Zone are
environmentally benign. The recycling of materials, particularly paper products, is probably
the most significant environmental issue that most of these businesses work to address.
· The more environmentally sound the company's products/services.
This will vary from project to project. In the Sycamore and First Avenue Urban Renewal
Area, businesses meeting this criterion are most likely to be retail establishments selling
"environmentally friendly" products or businesses that provides environmental services.
These types of businesses are more likely to be the exception than the rule.
COMMUNITY INVOLVEMENT
· Businesses that have a history of contributing to their communities through
volunteer work, financial contributions or other means.
This will vary from project to project. We do know, however, that when local businesses are
healthy, they are better able to financially contribute to community projects.
GENERAL REQUIREMENTS
· Every applicant should provide average hourly wages for all new and existing jobs
that meet or exceed the average county wage rate by industry. Ninety percent of the
project positions should have a wage greater than the federal poverty wage rate for
Iowa City (30% of the median income for a four-person household in Iowa City).
Under special circumstances, consideration will be given to those companies who
cannot meet this requirement.
Retail/personal services/restaurant jobs tend to pay lower wages than other jobs. In fact,
the average wage for jobs in these sectors tends to be below the federal poverty wage rate.
The effort of this urban renewal plan emphasizes commercial revitalization and not job
creation or job quality.
· Applicant must have a consistent pattern of compliance with the law and the spirit of
the law, including environmental regulations, occupational safety and health laws,
fair labor standards, the National Labor Relations Act, and the Americans with
Disabilities Act, in order to eligible for financial assistance.
This will vary project by project and tenant by tenant.
· Applicant must demonstrate the following in order to be eligible for financial
assistance:
0 The feasibility of the business venture.
0 The reliability of the job creation and financial estimates.
3
Sycamore and First Avenue August 2000
Urban Renewal Plan
O The credit worthiness of the business.
O Project would not occur without financial assistance.
Given that the objective of the plan is to encourage capital investment and that the financial
assistance (property tax rebate) is not granted until after the investment has been made, the
project's feasibility and creditworthiness is demonstrated prior to the business receiving the
exemption.
· A contract will be executed for any financial assistance awarded. Applicant will be
required to repay all, or a prorated share, of the amount of the financial assistance
awarded if the applicant does not fulfill the obligations of the contract.
The financial assistance (property tax rebate) provided a business is based upon the
amount of capital investment made. The rebate is only granted upon the capital investment
made and upon an annual demonstration that specific performance criteria are met. If the
investment is not made or the performance criteria are not met, there is no rebate.
u:\~les\prspct\sycamore first avenue plan\edguide.doc
4
Sycamore and First Avenue August 2000
Urban Renewal Plan
Agreement for Private Redevelopment - Outline of More Significant Requirements
The Developer must demonstrate the following:
· The construction of a minimum level of improvements consisting of improvements and
additions to an existing enclosed shopping mall and a freestanding building located on the
Sycamore Mall property.
· The provision of an anchor retail store.
· A specified percentage of leasable floor area will be occupied.
· Exterior changes to structures approved by City staff design review committee.
· A site plan containing improved landscaping.
· Appropriate and adequate insurance coverage.
· Adequate maintenance of property.
· TIF rebate not transferable with a change in property ownership without City Council
approval.
City will provide:
· A property tax rebate for a period of seven years equal to one hundred percent (100) of the
tax increment collected by the City.
u:\~les\prspct\sycamore first avenue plan\cc0815.doc