HomeMy WebLinkAbout12-02-2004 Planning and Zoning Commission
PLANNING AND ZONING COMMISSION
Thursday, December 2, 2004 - 7:30 PM
Formal Meeting
Iowa City City Hall
Emma J. Harvat Hall
410 E. Washington Street
AGENDA:
A. Call to Order.
B. Public Discussion of Any Item Not on the Agenda.
C. Urban Renewal Item:
Discussion of the proposed expansion of the Northgate Corporate Park Urban Renewal
Area.
D. Other Items:
E. Consideration of the November 4, 2004 Meeting Minutes.
F. Adjournment.
Informal
Formal
** January 17 Informal Meeting is cancelled due to Martin Luther King Jr. Day.
MEMORANDUM
DATE:
November 17, 2004
TO:
FROM:
Planning and Zoning Commission
Steven Nasby, Community and Economic Development Coordinator S~
RE:
Proposed Expansion of the Northgate Corporate Park Urban Renewal Area
On November 16, 2004 the City Council voted to approve a resolution setting dates for a
public hearing and a consultation meeting (with other taxing jurisdictions) regarding the
proposed expansion of the Northgate Corporate Park Urban Renewal Area. Iowa Code
requires that the City submit the Urban Renewal Plan to the Planning and Zoning
Commission for review and recommendation. Enclosed is a copy of the amended Northgate
Corporate Park Urban Renewal Plan, as proposed.
The Northgate Corporate Park Urban Renewal Area was originally adopted by the City
Council in 1999. In October 2004 the Council Economic Development Committee received a
letter from Southgate Development Company requesting that the City of Iowa City consider
expanding the existing Northgate Corporate Park Urban Renewal Area to include additional
property. The Council Economic Development Committee unanimously approved
recommending the expansion of the Northgate Corporate Park Urban Renewal Area to
include the additional properties as shown (please see attached map).
After discussions with the Urban Planning Staff, a review of the proposed amendment to the
Northgate Corporate Park Urban Renewal Area by the Planning and Zoning Commission is
being scheduled for December 2, 2004. This schedule allows the Planing and Zoning
Commission adequate time to forward its written recommendations, if any, to the City
Council with in the thirty-day comment period as provided in Iowa Code.
The public hearing held by the City Council on this proposed amendment is scheduled for
January 4, 2005. If you have any questions please contact me at 356-5248 or via e-mail at
Steven-Nasby@iowa.-city.org.
Cc: Karin Franklin, Director of Planning and Community Development
Bob Miklo, Senior Urban Planner
Attachment
Enclosure
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Northgate Corporate
Park Urban Renewal
Plan
First Amendment - January 2005
Table of Contents
Section 1- Introduction
Section 2 - Urban Renewal Plan Objectives
Section 3 - Description of Urban Renewal Area
Section 4 - Proposed Urban Renewal Actions
Section 5 - Land Use
Section 6 - Relocation of Families
Section 7 - Current Debt and Proposed Indebtedness
Section 8 - Other Provisions Necessary to Meet State & Local Requirements
Section 9 - Procedures for Changes in Approved .Plan
Addendum No. 1- Legal Description
Addendum No.2 - Northgate Corporate Park Urban Renewal Project Area Map
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Introduction
The Iowa City Comprehensive Plan - 1997 provides a vision for the economic well-
being for the residents of Iowa City and outlines the goals the community must strive to
achieve in order to attain its economic well-being vision. The goals outlined in the
Comprehensive Plan are:
· Diversify and increase the property tax base by (1) encouraging the retention and
expansion of existing industry and (2) attracting industries that have growth
potential and are compatible with existing businesses;
· Increase employment opportunities consistent with the available labor force;
· Provide and protect areas suitable for future industrial and commercial
development;
· Cooperate with local and regional organizations to promote economic
development within Iowa City;
· Improve the environmental and economic health of the community through the
efficient use of resources; and
· Consider financial incentives and programs to facilitate achieving the above
goals.
In order to make development sites attractive to new and expanding firms,
communities are more and more called upon to provide financial incentives and
programs to make a development site and the area attractive to potential businesses.
Other development sites in the area, which already cater to office, research, production,
and assembly uses, make tax increment financing available to qualifying businesses that
are looking at those development sites. The City has concluded it is in the interest of its
citizens to encourage the development of an office and research development park in
order to provide a competitive development site for office, research, production and/ or
assembly ·uses. To assist with ensuring that this type of development site is
competitive, the City intends to make available the use of tax increment financing as a
means to finance the construction of some of the necessary private and/ or public
infrastructure improvements within the Northgate Corporate Park Urban Renewal Plan
Area, referred to hereafter in this Plan as the Urban Renewal Project Area. In addition,
the City will make available the use of tax increment financing to provide direct grants,
loans, or rebates for qualifying businesses planning to locate in the Urban Renewal
Project Area.
To achieve the primary objectives of this Plan, the City of Iowa City shall undertake the
urban renewal actions as specified in this Urban Renewal Plan, pursuant to the powers
granted to it under Chapter 403 of the 2003 Code of Iowa, as amended.
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Urban Renewal Plan Objectives
The overall goal of the Northgate Corporate Park Urban Renewal Plan is to formulate
and execute a workable program using public and private resources to develop the
Urban Renewal Project Area for office, research, production and/ or assembly uses. The
following objectives have been established for the proposed Urban Renewal Project
Area:
· To encourage and support development that will expand the taxable values of
property within the Urban Renewal Project Area.
· To encourage the development of start-up firms, the expansion of existing
businesses, and the attraction of new industries.
· To provide for the orderly physical and economic growth of the city.
· To enhance the availability of sites to accommodate the construction of new office,
research, production and/ or assembly buildings;
· To assist with the provision of infrastructure to enable competitive land prices and
lease rates;
· To make public improvements as deemed necessary by the City to support new
office, research, production and/ or assembly development;
· To provide financial incentives and assistance to qualifying businesses.
Description of Urban Renewal Area
The legal description of this proposed Urban Renewal Project Area is included in the
Plan as Addendum No.1 - Legal Description.
The location and general boundaries of the Northgate Corporate Park Urban Renewal
Plan Area are shown on Addendum No.2 - Location Map: Northgate Corporate Park
Urban Renewal Project Area. This area is approximately 95.88 acres.
Proposed Urban Renewal Actions
Proposed urban renewal actions will consist of private site improvements, public
infrastructure improvements, and financial incentives to encourage office, research,
production and/ or assembly uses development.
Private Site Improvements
Site improvements may include, but are not limited to, design and construction of
buildings, grading for building construction and amenities; adequate paving and
parking; adequate landscaping; and on-site utilities. Tax increment financing may be
used by qualifying businesses to finance these private site improvements.
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Public Infrastructure Improvements
Public infrastructure improvements may include, but are not limited to, stormwater
management facilities, public streets and sidewalks, sanitary sewers, storm sewers,
utilities and open space improvements. Tax increment financing may be available to
finance the construction of these improvements, in whole or in part, at the City
Council's discretion.
Financial Incentives
At the City Council's discretion, tax increment financing may be available for providing
direct grants, loans, or rebates for those qualifying businesses engaged in office,
research, production and/ or assembly activities allowed in the Office Commercial (CO-
1) Zone, Office and Research Park (ORP) or the Research Development Park (RDP)
Zone. The funds from the direct grants, loans, or rebates may be used for, but are not
limited to, financing the private site improvements listed above. Qualifying businesses
shall be determined by the City Council.
Conformance with Land Use Policy and Zoning Ordinance
Comprehensive Plan
The Urban Renewal Project Area is part of the area at the 1-80 interchange with
Highway 1. The Iowa City Comprehensive Plan states that this area. . .
.. .provides one of the few opportunities for office research park development in Iowa City.
National Computer Systems (within the North Corridor Planning District) and
American College Testing (south of 1-80 in the North Corridor Planning District) are
successful examples of this type of development. With the tone set by these two
companies and the advantages of interstate exposure, land around this interchange
should continue to be preserved for office research park and research development park
opportunities.
The designation of the Urban Renewal Project Area for office, research, production
and/ or assembly uses is consistent with the Iowa City Comprehensive Plan.
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Current Zoning
The Project Area's present zoning designations of (CO-I) Office Commercial Zone and
(ID-ORP) Interim Development-Office and Research Park is consistent with this Urban
Renewal Plan.
Current and Proposed Land Uses
The Project Area is presently used for office, research and agriculture. One
residential\acreage property is included in the Project Area that is currently zoned for
Interim Development - Office and Research Park (ID-ORP). Potential land uses include
office, research, production, and/ or assembly purposes.
Relocation of Families
Though the Northgate Corporate Park Urban Renewal Plan does not anticipate the
need to relocate families, in the event that such needs arise the City has considered
provisions for the relocation of persons, including families, business concerns and others
who could be displaced as a result of improvements to be made in the designated Urban
Renewal Project Area. Upon such consideration, the following shall be provided under
the Northgate Corporate Park Urban Renewal Plan:
Benefits
Upon the City's verification of a property owner's eligibility for tax increment financing,
qualified tenants in the designated Urban Renewal Project Area shall be compensated by
the property owner for one month's rent and for actual reasonable moving and related
expenses, where said displacement was due to action on the part of the property owner to
qualify for said tax increment financing.
Eligibility
"Qualified tenant" means the legal displaced occupant of a residential dwelling unit which
is located within the designated Urban Renewal Project Area where the person or family
has occupied the same dwelling unit continuously for twelve months prior to the City
making tax increment financing available to a project within the Urban Renewal Project
Area. There are no relocation provisions made for displacement from commercial units.
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Actual Reasonable Moving and Related Expenses
A qualified tenant of a dwelling is entitled to actual reasonable expenses for:
a. Transportation of the displaced person and personal property from the
displacement site to the replacement site. Transportation costs for a
distance beyond twenty-five miles are not eligible.
b. Packing, crating, unpacking and uncrating of personal property.
c. Disconnecting, dismantling, removing, reassembling and reinstalling
relocated household appliances and other personal property.
d. Discontinuing, transferring or reconnecting utility services, including cable
television.
Least Costly Approach
The amount of compensation for an eligible expense shall not exceed the least costly
method of accomplishing the objective of the compensation without causing undue
hardship to the displaced tenant and/ or landlord.
Current Debt and Proposed Indebtedness
List of Current General Obligation Debt
Issue
Date
Original
Amount
1996
1997
1997
1998
1999
2000
2001
2002
2002
2003
2004
$6,100,000
$5,200,000
$5,540,000
$8,500,000
$9,000,000
$14,310,000
$11,500,000
$29,100,000
$10,600,000
$5,570,000
$7,305,000
General Obligation Debt by Issue
Interest Rates
3.6% - 5.5%
4.5% - 4.7%
4.875% - 5.0%
4.35% - 4.75%
4.125% - 4.75%
5.0% - 5.5%
4.0% - 4.9%
3.5% - 5.0%
2.5% - 4.0%
2.5% - 3.6%
4.0% - 5.4%
Final
Maturity
6-30-04
Principal
Outstanding
Notes
6/15
6/07
6/17
6/13
6/18
6/18
6/16
6/21
6/15
6/14
6/23
$300,000
$1,525,000
$3,875,000
$5,050,000
$6,650,000
$12,215,000
$9,615,000
$25,930,000
$7,050,000
$5,570,000
$7,305,000
(1)
(2)
(3)
(4)
(1) 75.41 % abated by water revenues.
(2) 100% abated by water revenues.
(3) Abatement estimates are as follows: 11.96% sewer, 13.12% parking and 5258% water revenues.
(4) Tax Increment bonds are to be repaid through Tax Increment Financing revenue.
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(4) 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 shall be allowed to become indebted in any manner, or for any
purpose, to an amount, in the aggregate, exceeding five per centum 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. II
Debt Limit Computation
Total Assessed Actual Valuation
Legal Debt Limit of 5 % of 2003 Assessed Actual Value
Debt Chargeable Against Limit
Legal Debt Limit Available
$3,195,170,779
$159,758,539
$85,085,000
$74,673,539
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. Given recent
development projects requesting assistance in some form of property tax assistance and
assuming all future projects within the Urban Renewal Area would qualify for
assistance under the Urban Renewal Plan, the proposed amount of indebtedness to be
incurred, including loans, advances, indebtedness, or bonds which qualify could equal
as much as $10.0 million over the 20 year period of the Urban Renewal Plan.
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Other Provisions Necessary to Meet State and Local Requirements
Chapter 403 of the 2003 Code of Iowa, as amended, authorizes cities to exercise urban
renewal powers and certain other powers for the development of economic
development areas. Certain provisions must be fulfilled to exercise these powers. These
provisions and the method(s) by which the City of Iowa City proposes to fulfill these
provisions (shown with an *) are detailed below.
Provision: A Resolution of necessity finding that a slum, blighted, and/ or an
economic development area exists in the community and that
designation of this area as a proposed Urban Renewal Project Area is
appropriate.
* A Resolution of Necessity was adopted by the City Council on
. This Resolution of Necessity declares
the area encompassed by this Urban Renewal Plan is appropriate for
development in conformance with the City's zoning and
comprehensive plan; however, due to certain circumstances,
appropriate economic development of office, research, production
and/ or assembly park uses has not occurred on the vacant and
under-utilized property which exists in the proposed Urban Renewal
Project Area.
Provision: A Resolution of Necessity which determines that the proposed Urban
Renewal Project Area is in need of economic development because
certain conditions exist which effectively hinder development.
* A Resolution of Necessity designating the area as meeting the criteria
detailed by Chapter 403, Code of Iowa (2003), was adopted by the
City Council on
Provision: A general plan for the development of the municipality has been
adopted.
* The City of Iowa City adopted the Iowa City Comprehensive Plan _
1997 on December 1997
Provision: The Planning and Zoning Commission has made and forwarded its
recommendation(s) to the City Council as to the conformity of this
Urban Renewal Plan with the Iowa City Comprehensive Plan -1997
* The Planning and Zoning Commission recommendation was
forwarded to the City Council on
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Provision A designated representative of the municipality shall hold a
consultation with designated representatives of the affected taxing
districts after notice is given by regular mail and prior to the public
hearing on the plan.
* The consultation with representatives from the affected taxing
districts was held on December 8, 2004. The notice was mailed by
regular mail on November 29,2004.
Provision Representatives of the affected taxing districts may make written
recommendations for modification to the proposed division of
revenue no later than seven days following the date of the
consultation. The representative of the municipality shall, no later
than seven days prior to the public hearing on the urban renewal
plan, submit a written response to the affected taxing entity
addressing the affected taxing districts' recommendations to the
proposed division of revenue.
* Comments were (were not) received from the affected taxing districts
by December 15, 2004, which was seven days following the date of the
consultation.
* On December 22, 2004, at least seven days prior to the public hearing
on the urban renewal plan, the representative of the municipality did
(did not) submit a written response on to the affected taxing entity
addressing the affected taxing districts' recommendations to the
proposed division of revenue.
Provision: A public hearing on the on the Urban Renewal Plan is held after
official publication of the public notice.
* The public hearing on the Urban Renewal Plan document pursuant to
state law was held on January 4, 2005. The public notice was
published December 16, 2004, in the Press Citizen, a newspaper
having a general circulation in Iowa City.
Provision: Approval of the Urban Renewal Plan by the local public agency after
finding that:
(a) A feasible method exists for relocating families.
(b) The Urban Renewal Plan conforms to the general plan known as
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the Iowa City Comprehensive Plan - 1997.
* The plan includes a feasible method for relocating families.
On ,2005, the City Council of the City of Iowa City
by resolution has found this Urban Renewal Plan to be in
conformance with the Iowa City Comprehensive Plan - 1997, the
adopted general plan for the municipality.
Procedures for Changes in Approved Plan
If the City of Iowa City desires to amend this Urban Renewal Plan, it may do so after
providing public notice, holding a public hearing on the proposed change, and
undertaking other required actions in conformance with applicable state and local laws.
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Addendum No.1
Legal Description of the
Proposed Urban Renewal Project Area
Consisting of a tract of land described as follows:
Lots 1-20 Highlander Development, First Addition, Iowa City, Iowa
Weiler Parcel
Auditor's parcel B as described on plat of survey recorded in Book 34, Page 191,
Plat Records of Johnson County, Iowa, being a portion of the northeast quarter of
the southwest quarter of Section 36, Township 80 North, Range 6 West of the 5th
P.M.; subject to easements and restrictions of record.
Tones \ Southgate Development Company Parcel
That portion of the northwest quarter of the southeast quarter of Section 36,
Township 80 North, Range 6 West of the 5th P.M., excepting therefrom that
portion platted as Highlander Development First Addition, Iowa City, Iowa,
according to the plat thereof recorded in Plat Book 25, Page 52, Plat Records of
Johnson County, Iowa, subject to easements and restrictions of record.
Fuhrmeister ParceI*
Beginning at the Southeast Corner of the Northwest Quarter of Section 36,
Township 80 North, Range 6 West of the 5th Principal Meridian, and for the
purpose of this legal description, the East line of said Northwest Quarter of
Section 36, is assumed to bear NOo026'16"W, Thence S00055' 48"E, along the East
line of the Southwest Quarter of said Section 36,19689 feet, Thence
N88°59'20"W, 38843 feet, Thence NOl°00'40"E, 20 00 feet, Thence N83°00'08"W,
8015 feet; Thence N06°49'44"E, 44 54 feet; Thence Northwesterly, 96 99 feet,
along a 92 89 foot radius curve, concave southwesterly, whose 92 64 foot chord
bears N23°04'58"W, Thence Northwesterly, 43.89 feet, along a 74 26 foot radius
curve, Southwesterly, whose 43 25 foot chord bears N69°55'35"W, Thence
N86°51'30"W, 223 62 feet, to a point on the centerline of Iowa Highway No 1,
Thence Northeasterly 377 94 feet, along a 286500 foot radius curve, concave
Southeasterly, whose 377 74 foot chord bears N35°43'24"E; Thence N39°06'09"E,
along said Centerline, 56250 feet; Thence S50053'51"E, 26184 feet, to a point on
the East Line of said Northwest Quarter of Section 36; Thence SOo026'16"E, along
said East Line, 541 88 feet, to the Point of Beginning Said Tract of land contains 9
66 acres more or less, and is subject to easements and restrictions of record; said
real estate being also described as.
Auditor's Parcel No A as shown on the Plat of Survey of a Portion of the NWl \ 4,
Section 36, Township 80 North, Range 6 West of the 5th PM recorded in Plat
Book 32, at page 67, plat records of Johnson County, Iowa
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The above described real estate is subject to the right of Iowa-Illinois Gas and
Electric Company to maintain it's existing electrical lines and poles over and on
said real estate and to enter upon said real estate to repair or replace said lines
and poles, and, is further subject to an easement in favor of the grantors, their
assigns and successors in interest, to maintain the existing utility service line over
the above described real estate serving the house situated on grantor's real estate
situated southerly and southwesterly of the above described real estate.
* Only the part of real estate described above that is located within the corporate boundaries of the City of
Iawa City shall be included in the Northgate Urban Renewal Area.
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