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HomeMy WebLinkAbout05/28/2013 Council Work Session May 28, 2013 Time as indicated below Council Chambers Roll Call. Approval of Agenda, as proposed or amended. 4:35 p.m. Creation of the Crossroads Waterloo Urban Renewal and Redevelopment Plan and Tax Increment Financing (TIF) District. ADJOURNMENT Suzy Schares City Clerk CAROL FAILOR From: ARIC SCHROEDER Sent: Thursday, May 23, 2013 10:14 AM To: .. NOEL ANDERSON; CAROL FAILOR Subject: RE: Work Session for Tuesday, May 28, 2013 Carol, we sent down a Council Transmittal several weeks back (think it was the May 6th Council meeting) to have a date of hearing set as May 20`h. You could take all or portions of what we included in that transmittal to use for the work session...but that transmittal includes the TIF District "Plan", which is quite a long document...and it was already given to them once, so I'm not sure there would be a lot of point to giving them a second copy. Aric From: NOEL ANDERSON Sent: Thursday, May 23, 2013 10:09 AM To: CAROL FAILOR Cc: ARIC SCHROEDER Subject: RE: Work Session for Tuesday, May 28, 2013 Sorry—Council asked for it themselves at last Council meeting, so I wasn't aware I had to request. My mistake. Please set up a 30-minutes Works Session with City Council on "The creation of the Crossroads Tax Increment Finance District." Thanks, Noel Noel Anderson' Community Planning & Development Director City of Waterloo 715 Mulberry Street Waterloo, Iowa 50703 Phone 319.291.4366 Fax: 319.291.4262 Cell: 319.290.6357 "To the world you may be one person, but to one person you may be the world."- Heather Cortez From: CAROL FAILOR Sent: Thursday, May 23, 2013 9:47 AM To: NOEL ANDERSON Cc: ARIC SCHROEDER Subject: Work Session for Tuesday, May 28, 2013 Noel, I heard you say'at the agenda meeting this morning that you were setting up a work session for Tuesday, May 28`h I have not received anything about it. Could you please get something to me ASAP so I can get it added to the agenda. Thanks, Carol FaiCor Deputy City Clerk City of Waterloo i 715.Mu[berry Street 'WaterCoo, Lk 50703 Phone: (319) 291-4323 Fax: (319) 291-4571 carotfail-or@waterCoo-ia.org 2 • A � �i CITY OF WATERLOO , IOWA FI ring_ - COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, Iowa 50703-5783 • (319)291-4366 Fax(319)291-4262 Merl o o \o NOEL C.ANDERSON,Community Planning&Development Director Council Communication p �` �J/ / City Council Meeting: 05/06/13 / (�� BUCK Prepared: 05/01/13 CLARK Dept. Head Signature:7 (�1� !t."4-� # of Attachments: MEO BERS SUBJECT: Set a date of hearing as May 20, 2013 for the creation of the Crossroads Waterloo Urban Renewal and Redevelopment Plan and Tax Increment Financing(TIF) District. DAVID TONES Submitted by: Noel Anderson, Community Planning& Development Director Ward I CAROLYN Recommended City Council Action: Set a date of hearing as May 20, 2013, and COLE adopt necessary resolutions and ordinances for the adoption of the plan and district. Ward 2 Summary Statement: Planning staff is proposing to create the Crossroads Waterloo HAROLD Urban Renewal and Redevelopment Plan and TIF District as shown on the attached GETTY Ward 3 map and as detailed in the attached Plan. The proposed Plan and TIF District represents a proposal for the improvement and location of commercial development QUENTIN and provides for public improvements in order to increase the tax base and HART employment opportunities in the City of Waterloo. Thepr proposed district would Wand include land generally bounded yb lands just north of San Maman Drive to the RON north, Highway 218 and Dysart Road to the east, 1z mile south of Shaulis Road to WEEPER the south, and Hess Road, Highway 20 and Hammond Avenue to the west. The Ward 5 area includes vacant land and vacant buildings that could be developed and BOB redeveloped for commercial purposes. The City of Waterloo 2010 Strategic GREENWOOD Development Plan states the need to diversity and increase the property tax base by At-Large encouraging the retention, expansion, and attraction of business and industry, and STEVE notes that the City should continually explore incentives to encourage development SSCHMT T and increase employment that will held the City achieve these goals. The 2010 Plan At-Large also notes that the Cityof Waterloo should actively y pursue the build-out and redevelopment of the Crossroads Shopping Center area through platting, infrastructure provisions, infrastructure improvements and upgrades, and public- private partnerships. The Crossroads Waterloo Urban Renewal and Redevelopment Plan represents a proposal for initiatives in the Crossroads area that will allow tax increment revenue to be used as incentives for the development of the Plan. The property tax assessment base in the district would be frozen, providing a guaranteed tax based to each taxing jurisdiction. Increased tax revenue resulting from new development would be captured and used for projects within the district, including tax rebates for large development projects. CITY WEBSITE: www.ci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Expenditure Required: none Source of Funds: n/a Policy Issue: Economic Development Alternative: Legal Description: see attached Plan NAas cc Aric Schroeder,City Planner Path: K:\USERS\ARIC•S\City of Waterloo\council letters\Misc•Appeals-Determinations-Other\05-01.13 Council Communication Crossroads Waterloo Urban Renewal and Redevelopment Plan.doac z _I t , 1 : Proposed Crossroads Waterloo _ Urban Renewal & Redevelopment Plan F v. f i ,R`+., a i1 ,.�$' t lli.\tp,. ti r ' i Lei 4 F j - 4 4.jww �G � �' g� f l� i'1' 1 r _ j ,, / k\ r- t -1,- , '4'r(�. a r 3 tF �" � 4 f S - rill l ie' ? .a1---1 — # FE '► t _ '[ -..} _ _ FF �C ; f zt i ! ( _ =sue s 1' 1 n. I e } � -r Legend "' , 1i Proposed Boundary ft-ri, x ,. 1 Lil { � 1 r." Prepared by Aric Schroeder,City of Waterloo,715 Mulberry Street,Waterloo,IA, 50703 319-291-4366 Return to preparer after recording. CROSSROADS WATERLOO URBAN RENEWAL AND REDEVELOPMENT PLAN (May 2013) INTRODUCTION The City of Waterloo 2010 Strategic Development Plan states the need to diversify and increase the property tax base by encouraging the retention and expansion and attraction of business and industry. The Land Use Plan states that the City should continually explore incentives to encourage development and increase employment that will help the City achieve these goals. Under the present circumstances, there is the need to bring about economic development; i.e., the expansion of existing industry and the attraction of new industry, which will further diversify and increase the property tax base and which will increase employment opportunities. The 2010 Plan also states that the redevelopment of the community should continue to be a major economic thrust for the City of Waterloo and actively pursue the build-out and redevelopment of the Crossroads Shopping Center area through platting, infrastructure provision, infrastructure improvements and upgrades, and public-private partnerships. The Crossroads Waterloo Urban Renewal and Redevelopment Plan presents a proposal for initiatives in the Crossroads area will also allow tax increment revenue to be used as incentives for the development of the Plan. These incentives would be negotiated and approved on a project-by-project basis at future dates. To achieve the primary objectives of this plan, the City of Waterloo shall undertake the urban renewal actions as specified in this tax increment Plan,pursuant to the powers granted to it under Chapter 403 of the 2011 Code of Iowa, as amended. 1 TABLE OF CONTENTS I. CROSSROADS WATERLOO URBAN RENEWAL AND REDEVELOPMENT PLAN. A. DESCRIPTION OF PROJECT B. LAND USE PLAN C. PROJECT PROPOSALS D. OTHER PROVISIONS NECESSARY TO MEET STA I E,AND LOCAL REQUIREMENTS E. PROCEDURES FOR CHANGES IN THE PLAN F. RELOCATION G. PROJECT FUNDING II. PROJECT BUDGET A. NARRATIVE B. CHAPTER 15A LOANS OR GRANTS C. TAX INCREMENT FINANCING D. PROPOSED TIMING SCHEDULE III. LEGAL DATA-ATTACHMENTS A. BOUNDARY MAP B. LEGAL DESCRIPTION C. STUDY OF BONDING CAPACITY D. PRELIMINARY PROJECT BUDGET E. ACQUISITION CHECKLIST F. RELOCATION CHECKLIST G. PLANNING,PROGRAMMING& ZONING RESOLUTION H. NOTIFICATION TO TAXING ENTITIES AND RECORD OF CONSULTATION 2 I. RESOLUTION ADOPTING PLAN J. ORDINANCE ADOPTING PLAN K. NOTICE OF PUBLIC HEARING(PUBLISHED) L. NOTICE OF PUBLIC HEARING(POSTED) 3 CROSSROADS WATERLOO URBAN RENEWAL AND REDEVELOPMENT PLAN. A. Description of Project 1. Boundary Map(See Attachment"A") 2. Boundary Description(See Attachment"B") 3. Findings and Objectives a. Findings The City of Waterloo proposes to undertake an Urban Renewal Project under the provisions of Iowa Code Chapter 403, as amended to date. It is hereby found and declared that there exists in the proposed Crossroads Waterloo Urban Renewal and Redevelopment Plan Area the continuing need for programs to alleviate and prevent conditions of unemployment; and that it is accordingly necessary to assist and retain local retail and commercial enterprises to strengthen and revitalize the economy of this City; that accordingly it is necessary to provide means and methods for the encouragement and assistance of retail and commercial enterprises in locating,purchasing, constructing, reconstructing, modernizing, improving, maintaining, repairing,furnishing, equipping, and expanding in this City; and that it is also necessary to encourage the location and expansion of commercial enterprises to more conveniently provide needed services and facilities of the commercial enterprises to Waterloo and the residents of the City. b. Objectives of the Plan This Plan is intended to strengthen the economy, promote retail and other commercial development, expansion of existing business and industry and attraction of new commercial projects. In accordance with this public purpose, the Crossroads Waterloo Tax Increment Project is intended to accomplish the following objectives: (1) To provide for the expansion of the existing uses and the establishment of new uses which are essential for 4 the economic development and redevelopment of the area. (2) Encourage investment in the residential, commercial, and industrial existing uses and in vacant land in the Crossroads Shopping area by enhancing the environment and making it more conducive to economic development. (3) Provide incentives to expand existing business and retail, destination retail, and other attractions and attract new retail, destination retail, and other attractions and commercial uses as allowed under Chapter 15A of the Code of Iowa, such as tax abatements,tax rebates, land acquisition, demolition, infrastructure provision, removal, and relocation, loans, grants and/or any other incentives that will result in redevelopment of the Crossroads area. (4) Increase employment opportunities for the citizens of Waterloo. (5) Provide the necessary infrastructure, including but not limited to: sanitary sewer, storm sewer, streets,traffic control,parking, skywalks, street amenities, etc., which may be necessary as the area is developed. B. Land Use Plan 1. This Plan is in conformance with the previously adopted Comprehensive Plan for the City of Waterloo. 2. As part of good planning and land use, the following goals are inherent to the realization of Plan objectives: a. Stimulate land uses which will strengthen and complement existing sound land use relationships within the surrounding community. b. Stabilize and increase employment in the area. c. Encourage investment in the area. d. Conserve and enhance the existing community facilities necessary to serve the surrounding area. 5 3. This Plan is consistent with the Comprehensive Plan in that both strive to: a. Maintain the City's role as a regional center of retail, destination attractions, as well as commerce and industry. b. Assure land uses which will strengthen and complement existing appropriate land use relationships within the surrounding community. c. Encourage sound growth and investment in the area. d. Increase employment in the area by encouraging economic development. e. To provide economic incentives that may increase employment opportunities within the City. C. Project Proposals 1. General Renewal Activities a. The City intends to acquire land or interests in land to facilitate development that is consistent with this Plan and site improvements. b. The City intends to provide public facilities that are needed from time to time such as streets, sanitary sewers, storm sewers, parking, traffic control, streetscape amenities, skywalks, etc. c. The City may make loans or grants to private persons or businesses for economic development and/or redevelopment purposes on such terms as may be determined by the City Council. d. The City may borrow money and provide security therefor. e. The City may establish and enforce controls, standards, and restrictions on land use and buildings. f. The City may make or have made surveys and plans necessary for the implementation of the urban renewal program and specific urban renewal project activities. g. The City may use tax increment financing to achieve a more marketable and competitive land-offering price,to provide for 6 necessary physical improvements and infrastructure, and to fund other urban renewal project costs. h. The City may use any and all other powers, without limitation, granted by the Iowa Code to develop and provide for improved economic conditions in the City of Waterloo. 2. Land Acquisition and Disposition The City may finance the acquisition of one or more tracts of land in the Project Area for purposes of private development. Other areas may be identified for acquisition in the future for the following purposes: a. To provide sites for needed private and public improvements or facilities or other public purposes, in proper relationship to the projects demand for such facilities and in accordance with accepted criteria for the development of such facilities. b. To assemble land into parcels of adequate size and shape to meet contemporary development needs and standards and to allow new construction to meet the objectives of the plan. c. To acquire any and all interests in any property within the Project Area which in any way dominates or controls usage of other real property proposed to be acquired. The City may make improvements in preparation for redevelopment or transfer of land to private developers. Improvements will be accomplished in accordance with the goals and objectives of this plan and in concern with other actions to ensure timely improvement of the land. The City may advertise and solicit development proposals, may negotiate directly with prospective developers, and may dispose of all or a portion of the property acquired by it for the purpose of redevelopment in accordance with the goals and objects of this plan. The property so disposed of may include vacated right-of-way and other lands under public ownership which are not needed for public purposes. The City may subdivide, vacate, or otherwise change the recorded arrangement of property under its control to accomplish the goals and objectives of this plan. 3. Crossroads Area Projects 7 a. Infill of Crossroads Boulevard This project includes the development of land within the Crossroads Boulevard circle,many of which infill development sites have been identified in previous "S-1" Shopping Center District site plan amendment master plan approvals. This project will work to increase the retail traffic in and around the Crossroads Mall. b. Infill of lots surrounding Crossroads Boulevard This project includes the development of land on the outer rim of the Crossroads Boulevard circle. These lots are excellent infill projects to surround the Crossroads Shopping Mall with other retail and commercial businesses to compliment the mall, including but not limited to big box development projects, grocery stores,power centers, strip malls, restaurants,hotels,convenience stores, and other similar type developments. This development will work to increase the retail traffic in and around the Crossroads Mall. c. Infill of lots on eastern side of La Porte Road This project includes the development of land along Highway 218 on the eastern side of Crossroads Mall. These lots are excellent infill projects to surround the Crossroads Shopping Mall with other retail and commercial businesses to compliment the mall. This development will work to increase the retail traffic in and around the Crossroads Mall. d. Redevelopment of the Hammond Avenue and San Maman Drive intersection area This project includes the development of land on the southeast corner of the intersection of Hammond Avenue and San Maman Drive. While there is some excellent retail presence here,there is also an irregular configuration to some of the building space and lot layout. This development will work to increase the retail traffic in and around the Crossroads Mall. 8 e. Infill Development and redevelopment of lots on northern side of San Maman Drive i. This project includes the development of land on the northern side of San Marnan Drive, including the out lot near Menards, expansions of existing businesses on the northern side of San Marnan, any new lots creation, etc. This development will work to increase the retail traffic in and around the Crossroads Mall. f. Redevelopment of the former Kmart Plaza site,north of Sat Marnan Drive i. This project includes entering into a development agreement with Proactive Holdings IV LLC, which will redevelop the former Kmart Plaza site,which is over 100,000 sq. ft. of retail building space, and create seven new outlots. The total project cost of this project will be approximately$3,800,000.00, and the project shall have a minimum assessed value of$6,300,000.00. The project shall receive tax rebates for nine years at 50%. This development will work to increase the retail traffic m and around the Crossroads Mall. g. Continued expansion of retail and destination activities in and around the Lost Island Water Park, Campground, and Isle of Capri Casino i. This project includes the development of large tracts of land in and around the Lost Island Water Park,parts of which were shown on the original master plan for development of this area through the rezoning of the property for the Lost Island Water Park and Isle of Capri Casino. The development of this land all around the:[sle of Capri Casino and Lost Island Water Park will continue the trend of destination type developments to bring people to the Waterloo community and Cedar Valley as a whole. This development will work to increase the visitor,tourist, and retail traffic in and around the Crossroads Mall. h. Infill development of lots along Highway 20, and near Southi own Drive 9 i. This project includes the development of land near Highway 20, Southtown Drive,as well as Alexandria Drive. This development will work to increase the retail traffic in and around the Crossroads Mall. Further road expansion south of Crossroads Boulevard,to accommodate growing residential development and further neighborhood commercial lots to south i. This project includes the potential of new roads to connect the Crossroads Boulevard area with further residential development areas to the south as they are developed further and further eastward. This would work to open further entrances into and out of the Crossroads shopping area for visitors and residents alike. By spreading some of the traffic, it will help with traffic minimizing at intersections,movements, and safety into later years. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall. j. Reconstruction,reconfiguration, and expansion of La Porte Road heading south from San Maman Drive i. This project includes the reconstruction, reconfiguration, and adding of lanes for La Porte Road as it heads southerly from San Marnan Drive,turning into Hess Road further south. With an increasing amount of traffic from the Lost Island Water Park area and Crossroads Mall, it will become vital to make accommodations to handle additional development access points,traffic numbers for safety, turning, and congestion in the area. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall. k. Continuing evaluation of all roads and traffic patterns throughout Crossroads area i. This project includes the potential reconstruction, reconfiguration, and adding of lanes or right-in, right-out access points, median improvements, etc. for many road portions surrounding the Crossroads Mall area. This could include Hammond Avenue, San Marnan Drive, Southtown 10 Drive, Alexandria Drive, Flammang Drive, Sears Street, Penney Street,Bopp Street, Grimm Street, Crossroads Boulevard, and portions of La Porte Road and Ridgeway Avenue north of San Marnan Drive. As more development continues in the overall area, it is vital to continue to make accommodations to handle additional development access points, traffic numbers for safety, turning, and congestion in the area. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall. Reconstruction,reconfiguration, and expansion of Shaulis Road/ Dysart Road intersection with Highway 218 This project includes the reconstruction,reconfiguration, and adding of lanes for Shaulis Rod/Dysart Road as it heads westerly from the Highway 218 intersection. Due to the irregular configuration currently in place, increasing traffic through this area may result in the need for a reconfiguration of the intersection to accommodate more stacking of vehicles, better turning radii, and street layouts more accommodating for lots development near the highway visibility. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall. m. Construction and expansion of Isle of Capri Boulevard westerly to Hess Road This project includes the construction of Isle of Capri Boulevard further to the west, as further development in and around the casino and water park commence. This will open up new routes and new points of access into and out of these larger attractions,helping to disburse traffic patterns by having several options for travel, and lessening congestion at intersection points. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall. n. Potential flood plain mapping and planning for development,as well as drainage way improvements 11 i. This project includes the potential need for studying, reviewing, and making potential improvements involving any lands located in the flood plain through the Project Area. Any such improvements would work to improve the capacity and conveyance of flood waters through the area, while also working to maximise further site development for construction of roads, other necessary infrastructure, bridge improvements, and future project development. This infrastructure development will work to increase the retail traffic in and around the Crossroads Mall o. Acquisition of excess right-of-way or excess property from State of Iowa near La Porte Road and Hess Road. i. As continued development, redevelopment, and potential reconfiguration of roads continue as development progresses throughout the area, it may be possible for state land identified in the areas near La Porte Road and Hess Road to become available for additional development. The City would work with private developers to review and analyze this land for potential development, and potential acquisition from the State of Iowa. By maximizing land development where possible, this will work to increase the retail traffic in and around the Crossroads Mall 4. Public Improvements a. Infrastructure such as streets, sewers, parking, streetscape, skywalks, sidewalks, bridge improvements, etc. will be constructed in association with enhancing the new development projects using the local option sales tax for street reconstruction,MPO federal road funds,potential grants, and G.O. bonds which will be paid off with the increased tax increment revenues resulting from private investment in the Waterloo Crossroads area. D. Other Provisions Necessary to Meet State and Local Requirements 1. In accordance with this Urban Renewal and Redevelopment Plan, the City of Waterloo will take whatever action it deems necessary to close, vacate, plan or replan streets,roads, sidewalks, walkways or other places within the Project Area. 12 2. In the event it is deemed necessary for the successful implementation of the plan to acquire any properties, land acquisition procedures will be in conformance with policies and procedures used in the City's acquisition programs. (Current policy attached as Attachment"E") E. Procedures for Changes in the Plan 1. This plan may be modified at any time provided it is done in accordance with Iowa Code Chapter 403, and the proposed plan modification is approved by the Waterloo Planning,Programming and Zoning Commission and a public hearing is held. F. Relocation 1. All relocation will be carried out in accordance with Iowa Code, Section 403.5(4)(a) (2011); and in the event any properties are acquired and it is necessary to relocate families, individuals or businesses,relocation assistance will be provided by the City's Community Planning and Development Relocation staff. (Current policy attached as Attachment "F„) G. Project Funding 1. Capital for Crossroads Area Improvements In furtherance of the objectives of this Urban Renewal Plan,the City may decide to issue general obligation bonds, tax increment revenue bonds, or other such obligations, or loan agreements for the purpose of making loans or grants of public funds to private businesses located in the Project Area. Alternatively,the City may decide to use available funds for making such loans or grants. 2. Capital for Site Improvements in the Crossroads Area Capital to make site improvements may be provided by general obligation bonds and paid off with the increased tax increment revenues resulting from private investment in the Crossroads Area. 3. The City of Waterloo has unused bonding capacity of$95,513,435.00, or 50.98%from a total available of$128,351,502.00. (See Attachment "C") 13 II. Project Budget A. Narrative The Crossroads Waterloo Plan includes the area as described in Attachment`B". As each project is developed,the City Council may enter into a specific project agreement,which after public hearing will identify the specific financial incentives that may be used on each project. Therefore, a total value on the financial incentives cannot be identified at this time. The following projects will be developed, but specific project budgets cannot be identified as specific locations are not available. However,preliminary budgets for known projects are listed in Attachment"D". 1. Tax rebate program. The property tax assessment base on the real estate where a new development and/or rehabilitation/renovation is completed is frozen. While the frozen amount will be guaranteed to each new taxing jurisdiction,the increased tax revenue resulting from the new development may be rebated annually to the developer for up to ten(10)years, or twenty(20)years for monumental projects. The developer may use these funds in two ways: (1)to pay off private debt incurred in financing the new construction and/or the rehabilitation/renovation of an existing commercial building, or(2)to pay off public improvements(street and/or parking improvements, extension of skywalks, etc.) associated with enhancing the new development and/or the total rehabilitation/renovation project. A specific project agreement will be required for each project. The taxable value must be increased by a minimum of 10%and increase the annual tax by a minimum of$500.00. This program is not applicable to the Self Supported Municipal Improvement District levy, other special tax assessments,the debt service levy or any other levy exempted from treatment as tax increment financing under applicable law. 2. Project loans and/or grants. 3. Infrastructure such as streets, sewers, parking, streetscape, bridge improvements, skywalks, sidewalks, etc. B. Loans or Grants 14 The making of loans or grants of public funds to private businesses within the Project Area may be deemed necessary or appropriate for economic development purposes (as defined in Chapter 15A of the Code) and to aid in the planning, undertaking, and carrying out of urban renewal project activities authorized under this Urban Renewal Plan and the Code. In furtherance of the objectives under this Urban Renewal Plan, the City may determine to issue general obligation bonds,tax increment revenue bonds or other such obligations, or loan agreements for the purpose of making loans or grants funds to private businesses located in the Project Area. Alternatively.,the City may determine to use available funds for making such loans or grants. C. Tax Increment Financing The City intends to utilize tax increment financing as a means to help pay for the costs associated with the development of the Project Area. General obligation bonds, tax increment revenue bonds or other such obligations or loan agreements may be issued by the City. The tax increment reimbursement may be sought for, among other things,the following costs (if and to the extent incurred by the City): 1. The construction of public improvements, such as streets, sanitary sewers, sewage treatment lagoons, storm sewers, bridge improvements, parking facilities, water mains or sidewalks; 2. The acquisition of land and preparation of same for sale to private developers or for public purposes or public improvements; 3. The making of loans or grants to private businesses under Chapter 15A or Chapter 403 of the Code, including debt service payments on any bonds or notes issued to finance such loans or grants; or 4. Providing the local matching share of CEBA, RISE, MPO, or other state, federal, or local grants and loan programs. Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15A, Chapter 2,50E, Chapter 384, Chapter 403, Chapter 404, Chapter 472B, or any other provision of the Code in furtherance of the objectives of this Urban Renewal Plan. III. Legal Data -Attachments See Attachments A-L. 15 =-tJ`i-1 I 'Th -I I—,rl!i—11r H 1 ! LI!--9J1L-1 -LI ill \\ 1L l L" 9 i 11 ! Attachment "A" ,ri Crossroads Waterloo Urban Renewal & Redevelopment TIF District ; __ II Jilin ',�i I it 1I IIIlI_II{ , , _,inln��� ,•��ya�mt�n' \ \ II d' I i(i 1 mi Mir 111 1 1 ;IIMm����EW_� ` _ \ LL! J_. ' II J_JL - n , ears u,i (n a �mpn<mnmns sCliifil MM. ii�\\\��I� \ 0. r rl Legend 1 II Ei a u- �� y �•�'' T i�! �4� I I �� TIF Boundary E 1 . in 1' ii.iiiiii I 1 ---1-1_ ' Ilfir,_ laletl\ , iris suallitillIMMINSimmi lb /,/ ..•••••°'°:-7-<---Pri zinum,.. minas' • •y4• \4 t ‘v / r__-- :Iil, !;i1111I'1• - ! = _ i 1 1 f 1 - i- J - map ,1 1 1 I I 'Ill ! • �,,/ Z •111... S , i 11 _r 1 000"a`a - 3 �- •"� l F i At4� vN. t 1 I I r/� , 11 1 � / H tI 11 \1 1 1 �� I \ 1 iL II CI: II I I I Il 1 i I il -- r- // I L I � / i I I -t--�'T—T- ii I 11 I f� �_ _ 11 I I 11 1 I E9X"�� L . , I FkI�� 1F t-L-_, —,__;, , 1 1 ------\\* F I L�,I�L-����-1 '1 1 , III I �`• L, �: -� 1 11 . _ 1 1 1 /g\ \\ j f.'` 0 0.25 0.5 > °- .�erroo` "° „=� ------- 1 Miles _ '. Attachment B CROSSROADS WATERLOO URBAN RENEWAL AND REDEVELOPMENT PLAN DISTRICT (legal description) Beginning at the point where the centerline of East San Marnan Drive intersects the centerline of La Porte Road;thence Northeasterly along the centerline of East San Marnan Drive to its intersection with the centerline of U.S. Highway 218 as presently established; thence Southeasterly along the centerline of U.S. Highway 218 to its intersection with the East line of Section 13 of Township 88 North, Range 13 West; thence South along the East line of said Section 13 to its intersection with the South line of the North Half of said Section 13; thence West along the South line of the North Half of said Section 13 to its intersection with the West line of said Section 13; thence North along the West line of said Section 13 and the West line of Section 12 of Township 88 North, Range 13 West to its intersection with the Northwest corner of said Section 12; thence West along the North line of Section 11 of Township 88 North, Range 13 West to its intersection with the centerline of Alexandra Drive; thence Southerly along the centerline of Alexandra Drive to its intersection with the centerline of Southtown Drive;thence Easterly along the centerline of Southtown Drive to its intersection with the Westerly line of Crossroads Estates Replat No. 1; thence Southerly along the Westerly line of Crossroads Estates Replat No. Ito its intersection with the Southeast corner of Lot 9 of Southtown;thence S00°39'22"E 148.99 feet; thence S89°28'31"W 260.99 feet to a point that is 149.00 feet South of the Southwest corner of said Lot 9; thence Southerly along an extension of the West line of said Lot 9 to its intersection with the centerline of U.S. Highway 20 as presently established; thence Westerly along the centerline of U.S. Highway 20 to its intersection with the West line of Section 11 of Township 88 North, Range 13 West; thence North along the West line of said Section 11 and the West line of Section 2 of Township 88 North, Range 13 West to its intersection with the centerline of Flammang Drive;thence Easterly and Southeasterly along the centerline of Flammang Drive to its intersection with a Southwesterly extension of the Northwesterly line of Schukei Commercial Park; thence Northeasterly along a Southwesterly extension of the Northwesterly line of Schukie Commercial Park and the Northwesterly line of 17 Schukei Commercial Park to its intersection of the centerline of Schukei Road;thence Northwesterly along the centerline of Schukei Road to its intersection with a Southwesterly extension of the Northwesterly line of Lot 2 of Phoenix Addition;thence Northeasterly along a Southwesterly extension of the Northwesterly line of said Lot 2 to the Southwesterly corner of said Lot 2; thence Northeasterly,Northerly, Easterly,Northerly and Easterly along the Westerly and Northerly lot lines of said Lot 2 to the Northeast corner of said Lot 2; thence Easterly along an Easterly extension of the Northerly most lot line of said Lot 2 to its intersection with the centerline of Camelot Drive;thence Northerly along the centerline of Camelot Drive and a Northerly extension of the centerline of Camelot Drive, said extension also being the Easterly line of the Preserve at Crossroads and the Easterly line of Orange Park,to its intersection with the centerline of Fast Ridgeway Avenue;thence Easterly along the centerline of East Ridgeway Avenue to the centerline of La Porte Road;thence Southeasterly along the centerline of La Porte Road to its intersection with the centerline of East San Marnan Drive and the Point of Beginning. 18 Attachment C City of Waterloo, Iowa Black Hawk County, Iowa Study of Bonding Capacity as of June 30, 2012 2012 Levy Year January 1, 2010 Actual Gross Assessed Valuation $3,747,030,046 Legal Bonding Rate 5% Legal Bonding Limit $187,351,502 49.02% of Bonding Capacity Less Outstanding G.O. Debt $91,838,068 Unused Gross Bonding Capacity $95,513,435 19 Attachment D Preliminary Project Budget Further road expansion south of Crossroads Boulevard EXPENSES Construction $2,500,000 Architectural&Engineering Fees $200,000 Construction Administration $100,000 TOTAL $2,800,000 FUNDING City TIF $1,800,000 Private $1,000,000 TOTAL $2,800,000 La Porte Road EXPENSES Acquisition $200,000 Construction $4,000,000 Engineering Fees $240,000 Construction Administration $80,000 TOTAL $4,520,000 FUNDING City(Local Option,G.O.Bonds) $904,000 Federal(MPO) $3,616,000 TOTAL $4,520,000 Evaluation of traffic patterns throughout area EXPENSES Construction $1,200,000 Traffic Study $400,000 Right-of-way acquisitions $100,000 TOTAL $1,700,000 20 FUNDING City(Local Option, G.O.Bonds) $340,000 Federal(MPO) TOTAL $1,360,000 $1,700,000 Reconstruction of Shaulis/Dysart Road/Highway 218 intersection EXPENSES Acquisition $600,000 City Property $200,000 Construction $6,000,000 Landscaping and Public Art $100,000 Engineering Fees $750,000 Construction Administration $100,000 TOTAL $7,750,000 FUNDING State(RISE) $3,875,000 City(Local option,G.O.Bonds) $775,000 Federal(MPO) TOTAL $3,100,000 $7,750,000 Construction of Isle of Capri Boulevard west to Hess Road EXPENSES Construction $1,200,000 Engineering Fees $120,000 Construction Administration $60,000 TOTAL $1,380,000 FUNDING City(Local Option,G.O.Bonds) $690,000 State(RISE) TOTAL $690,000 $1,380,000 Potential flood plain mapping EXPENSES Engineering fees $400,000 TOTAL $400,000 21 FUNDING City(G.O.Bonds) $400,000 TOTAL $400,000 Acquisition of right-of-way from State of Iowa EXPENSES Acquisition $3,000,000 TOTAL $3,000,000 FUNDING City(TIP, G.O.Bonds) $3,000,000 TOTAL $3,000,000 TOTAL EXPENSES Further road expansion south of Crossroads Boulevard $2,800,000 La Porte Road $4,520,000 Evaluation of traffic patterns throughout area $1,700,000 Reconstruction of Shaulis/Dysart Road/Highway 218 intersection $7,750,000 Construction of Isle of Capri Boulevard west to Hess Road $1,380,000 Potential flood plain mapping $400,000 Acquisition of right-of-way from State of Iowa $3,000,000 TOTAL $21,550,000 Cost type breakdown: Public Improvements $15,200,000 Architectural,Engineering,Study,and Construction Administration $2,450,000 Acquisitions $3,900,000 TOTAL $21,550,000 22 Attachment E CITY OF WATERLOO,IOWA ACQUISITION CHECK LIST 1. City of Waterloo personnel determine property owners affected by the project. 2. City of Waterloo—Appraisers then inspect each property and make a written appraisal report on each property affected by the project. The appraisal report will estimate the current market value of the land and improvements to be purchased by the City of Waterloo, plus any reduction in the value of remaining property should its value be adversely affected. The appraiser will contact the property owner for permission to inspect and study the property. The appraiser will interview the landowner to get information about he use and operation of the property to be purchased by the City of Waterloo. 3. The appraiser's report will be reviewed by qualified review appraisers for the City of Waterloo. 4. The property owner will then be contacted by an Acquisition Agent from the City of Waterloo to present the property owner with an"offer to purchase". This dollar amount is offered as just compensation for property being purchased by the City of Waterloo. 5. After agreement is reached, a contract is approved and signed by the City. Where title conditions permit; a partial payment of the purchase price can also be made available per the term of the contract. 6. Reasonable time will be allowed for the occupant to vacate property purchased. Occupant will not be required to move sooner than ninety(90)days from the date the City makes the first offer to acquire the property. 7. Written notice specifying the date the property must be vacated will be given at least thirty (30) days prior to the required vacation date. The thirty(30) day notice will not be issued until payment by the City is received as agreed, or the money has been deposited by the City as prescribed by law. 8. The City Acquisition Agent will arrange payment at the earliest possible date. 9. If the City's acquisition offer is rejected, fair market value will be determined in the course of eminent domain proceedings (commonly referred to as condemnation). 23 Attachment F CITY OF WATERLOO,IOWA RELOCATION CHECK LIST 1. City of Waterloo personnel determine property owners affected by the project. 2. City of Waterloo Relocation Agent will contact family/occupant to determine the amount of eligible relocation benefits such as: a. Actual reasonable expenses as a result of moving (based upon two (2)quotations from movers approved by City of Waterloo). 3. To be eligible for assistance, occupant must not move until negotiations have started on the acquisition of the property without jeopardizing eligibility for moving cost payments. 4. If dissatisfied with the determination of the amount of payment offered under the Relocation Assistance Program, displaces may have the application reviewed by: a. Sending a written statement requesting the review and outlining the items in dispute to the Community Planning&Development Director, Community Planning and Development Department, City of Waterloo, 715 Mulberry Street, Waterloo, Iowa 50703 b. Stating the amount or amounts being claimed,if any, and including documentation and reasons why dissatisfied with the amount offered. 5. Upon receipt of your claim application,the Community Planning &Development Director will appoint a review board and notify you when and where a hearing will be held. The review board will recommend a decision on your claim to the City of Waterloo. The Relocation Agent will notify you in writing of the City of Waterloo's decision within one(1) week. 24 Attachment G CITY OF WATERLOO,IOWA PLANNING, PROGRAMING AND ZONING COMMISSION RESOLUTION 25 Attachment H CITY OF WATERLOO, IOWA CONSULTATION WITH TAXING ENTITIES 26 Attachment I CITY OF WATERLOO, IOWA RESOLUTION ADOPTING 27 Attachment J CITY OF WATERLOO, IOWA ORDINANCE ADOPTING • 28 Attachment K CITY OF WATERLOO,IOWA PUBLISHED NOTICE 29 Attachment L CITY OF WATERLOO,IOWA POSTED NOTICE 30 What a 100 Employee Plant Means to a Community in Mississippi Many factors determine the total impact of a new industry on a community. These factors include type of new industry, wage rates paid at the new plant, availability of local labor, availability of local shopping facilities, services demanded by the households, support services demanded by the new plant, and the local transportation network. Table 1 represents the impact expected if a manufacturer of automotive parts located in a southwest Mississippi community. The term community in this report more accurately refers to the 10 counties in the Southwest Planning and Development District(PDD), although most of the impact would be felt in the specific town and surrounding county. The southwest Mississippi area contains approximately 180,732 people, which is down 1.62 percent from 1980, according to the 1990 Census of Population and Housing. Table 1 156 more people 52 more households 44 more school children $3,885,648 more personal income per year 130 more passenger 189 more workers $2,370,245 more retail 75 more residential cars registered employed sales per year telephones Assumptions and Explanation of Calculations The plant, a manufacturer of automotive parts, is located in a community in the Southwest Mississippi Planning and Development District. It employs 100 people. The average number of persons per family in Mississippi in 1990 was 3.0. An estimated 52 more families representing some 156 people will move to the community with the 100-employee plant. A U.S. Department of Agriculture study found that 78 percent of all jobs in new plants and rural counties were filled by local residents. Using an economic base analysis, the area's indirect multiplier is determined to be 1.89 (Table 2), which represents 52 additional households the new plant brought to the community. Of Mississippi's population, 28.27 percent of children are enrolled in an elementary or secondary school. (28.27% x 156 new residents =44). There will be 44 more children added to the school rolls with the new plant. Using an average wage rate of$9.58 per hour, the payroll at the plant will be$1,992,640 per year($9.58 per hour x 40 hours per week x 52 weeks per year x 100 employees = $1,992,640), with an indirect income multiplier of 1.95. Now, 1.95 x$1,992,640 = $3,885,648 personal income per year added to the community. Of the 52 new households, each will have at least two cars. In half of the local households, another car is purchased to provide the new job holder with transportation. (52 x 2) + (.5 x 52) = 130. These 130 more passenger vehicles will add to the area's traffic situation. There will be 189 more people employed (using an employment multiplier of 1.89, that is 1.89 x 100 employees = 189). Census data show that in the Southwest Mississippi PDD, about 61 percent of personal income was spent in retail establishments in the district. A similar trend is assumed with the addition of the new 100- employee plant. There will be an estimated$2,370,645 more per year(Table 3) in community retail sales because of the plant's location to the area. About 87.87 percent of the housing units in the Southwest PDD area have telephones. If this trend holds, then approximately 76 of the newly employed local residents will have telephones [(.1217 x 78) +66] = 76 residential telephones added. It is assumed all 78 locally employed workers have housing and only the 52 new households to the area will require housing. The 1980 census revealed that an average of 48 percent of all year-round housing units in the SWPDD area lacked air-conditioning. Between 1970 and 1990, the number of houses considered substandard declined almost 32 percent. Assuming a similar trend among housing units that lack air-conditioning, only 16 percent of houses in the area would not have this service. This new figure (.16 x 78 [no. of local households] + 52 [no. of new households to area] =64 more new air-conditioning systems that will be added in the community). Table 2. Employment Changes Number of workers Manufacturing +100 Retail trade +39 Construction +29 Professional and retail services +16 Transportation, communication, and other public utilities +15 Business and repair services +6 Wholesale trade +6 Public administration +6 Finance, insurance, and real estate +5 Entertainment and recreation services +3 Forest and fisheries +1 Personal services -3 Mining -3 Agriculture -31 Total of all industries 189 Table 3. Increase in Annual Retail Sales Automotive $354,437 Machinery equipment and supplies $175,277 Apparel and general merchandise $436,395 Food and beverages $610,442 Furniture and fixtures $44,565 Contracting $177,711 Lumber and building materials $119,955 Recreation and amusement $6,606 Public utilities $148,913 Other $295,334 Total Increase $2,370,645 http://www.iedcevents.org/AnnualConference/Speakers.html#.UZuO rU4u7Q. One of our confirmed speakers is Rich Bendis who puts out a great newsletter called Innovation Daily. You can sign up for his newsletter here: http://innovationamerica.us/. If you have not met Rich, meet him in Philadelphia. Seeing his presentation will be worth the trip. Accreditation Last week I had the opportunity to go to Denton, Texas to present the Accredited Economic Development Organization designation to the Denton Economic Development Partnership. I also had the privilege of producing a video for the Hamilton Ontario Canada Planning and Economic Development Department as they received their AEDD designation before their City Council. The AEDO program signifies that an organization develops public confidence by meeting or exceeding current professional standards and is committed to excellence in economic development, continuing education for their staff and transparency for its investors. For more information please see:http://www.iedconline.oro/web-pages/professional- development/ac - nor-rim-development-organization-pro Watching As someone who works on and thinks of economic development every day, I would like to report to you that the answer to stagnant unemployment is just around the corner, but I cannot. Some countries are doing better than others, some communities and regions are doing better than others. Even some governments are doing better than others. Is i,:: better to be focused on debt and deficit control or better to be focused on stimulus actions? It appears those that are so preoccupied with debt and deficit control have a persistent higher level of unemployment. �My good friend Richard Florida has recen ...opifred-at7oat-ttte OTO of`tax-rednctiurrpbhcy. T-fais_is an interestinp-attiale.:-h www.theatlanticcities.com/jobs-and- econ omy/2013/05/lowe r-state-i ncome-taxes-d o-not-sp u r-economic-develo pme nt/5508/ All the best, Jeffrey A. Finkle President, International Economic Development Council P.S. IEDC has a great number of economic development training courses here is the link of upcoming courses http://www.iedconline.org/web-pages/professional- development/iedc-training-courses/ . On July 31 —August 2we have a course on Economic Development Credit Analysis in Minneapolis, Minnesota. There are many courses both before and after this one, but this is just an example of the many opportunities to get training through IEDC. Beware I am now Tweeting ©jeffreyfinkle Reply to Jeff TIP You can respond to this message by replying to this email You are receiving Linkecln message emails. Unsubscribe. 2 Discussion: Rehabbing Old Iowa Malls » Iowa Journal » Iowa Public Television Page 1 of 5 The Iowa Journal The Iowa Journal is a regular in-depth look at the issues that impact Iowans. Discussion: Rehabbing Old Iowa Malls posted on March 27,2008 at 3:01 PM Recommend Be the first of your friends to recommend this. T H E 3 C U R N AAAA L Critics contend TIFs are handed out like party favors.Tax increment financing is a favored instrument of development for many communities.But at the core lies the questions we'll explore tonight: What do TIFs and other economic development tools cost?Is the return on the investment worth the cost?And how do citizens keep score? Alan Kemp is Executive Director of the Iowa League of Cities.Peter Fisher is Research Director,Iowa Policy Project. Yeager:Critics contend TIFs are handed out like party favors.Tax increment financing is a favored instrument of development for many communities.But at the core lies the question we'll explore tonight.What do TIFs and other economic development tools cost? Is the return on the investment worth that cost?And how to citizens keep score?Alan Kemp is Executive Director of the Iowa League of Cities.Peter Fisher is Research Director of the Iowa Policy Project.Gentlemen,thank you for coming in tonight.Alan,you saw that piece right there and you saw a couple of the ways that the malls are safe.What is the best way to sa.s;.2,ipsall.whather.lts it r anywhere else? Kemp: e 1,you're really 'ng at finding the most efficient way of doing it and t go' to give you a retu .The real benefit of saving a mall is that you're not only taking an economic development issue and you're looldng at increasing your tax base,you're also potentially increasing another tax base and that is your sales tax because more and more communities and schools rely on local option sales tax as well as the state of Iowa. And so the development of a mall can really not only bring up your property values, rovide jobs,provide an amenity for people to visit and therefore have s i _ or dev ,:Cu can a1LQ look ,t is ac a heh Pfit..fer ea}tp ion sales tax. Yeager:And should that offset it?Do you think the two will offset with the sales tax there? Kemp:You would hope so.By its nature economic development is sort of a risky business whether you're a developer or whether you're a city and cities do whatever they can to ensure to the best of their ability that they're going to get a return on investment.And so you try to take the actions necessary and you rely upon your bond council who help you with these tax and financing areas and also your financial advisors to make sure that this is going to cost out well and the city is protected. Yeager:Peter,your thoughts on this argument?Do they seem like good deals?Or do they come across as good deals for everybody? http://www.iptv.org/iowajou nal/story.cfin/218/discussion 5/28/2013 Discussion: Rehabbing Old Iowa Malls» Iowa Journal » Iowa Public Television Page 2 of 5 F'sher:Well,I think you have to be r refill.If you think about why a ma c (empty in the first place it's use the private market has moved onto another locatio J typically.There is this, ceession of malls,the older ones replaced by newer and bigger t ones farther out on the periphery and that creates a lot more retail space which is why the 1 Sycamore Mall is in trouble,why the downtown mall in Iowa City was in trouble.So,if the city is going to do something I think they have to ask what the market forces would do by emselves and why there is a role for this city or what the role for the city properly is in this ' d of a situation because if there is an excess of retail space which is the problem then why i •itin the city's interest to subsidize retail that the market isn't ready..for.And'-'f the problem is you cfrrencip.creating-an-exeess'of ietaii or an}land of space when you subsidize something that the market isn't prepared to support. Yeager:So you're saying that natural business selection would take over or should take over in some of these cases and it's more of a corporate welfare type prop up for some of these regions that have malls that have faded? Fisher:I think in many cases the market would take care of it in one way or another and what we saw in Iowa City was there wasn't sufficient market for two floors of retail so we had to return to kind of the old form of the city,ground floor or street level retail and second floor office and commercial uses. Yeager:You deal with a lot of cities across the state.Does this scare cities when they hear things like this? Kemp:I don't know if it scares them but a key role that has emerged over the last go or 40 years is the role that cities.play44-eee••••' developm-• • flea y rt s •e• ..1 is safety,you k make sure you've got poli - -• e you've got fire and make sure you've safe streets.But increasi.• economic development is an enormous role that ci ' play.And so they have-.-come quite sophisticated at this and it's true in a sense you ould hope the market would take care of this on its own.The trouble is most city officials because they understand that they are competing they don't want to take that chance.They want to make sure that they have taken what they think are the best options to ensure their community is used in a competitive position. Yeager:Because the city is just like a business,they're in negotiation,they're trying to I k out for their best interests.How does a city stand up and say no,go somewhere else? How es a city let that company go down the street? Kemp:They can and-thiey-often times do.they will look at a proposal and decide is it going to cost out?No.We stand t hike"i7vr-slurt.We:re only going to do this if we feel tat . re is a tangible benefit and whether that benefit is directly to the city or whether it's to the community at large where it provides a stronger amenity or has some sort of a spin-off effect.But they do this all the time and often times this takes care of itself because the public becomes involved.If you look at sort of the issue that the city of Ames had when there was a new mall proposed a group emerged that really questioned it and they sort of directed where this was going and questioned it and it slowed it down and it possibly stopped it. Yeager:You talk about citizens but I think TIFs don't have to be approved by voters.Is that almost a little--there was an article in The Economist that we were reading to get ready for this talking about that's one of the more dangerous parts of this is voters can't select or can't say or sign off on a TIF agreement.That's something that doesn't go in front of the voters.How do you answer a question like that? Kemp:Well,cities take decisions all the time that don't go before the voters.That's what the nature of the system is and that is that we're a republic,we elect representatives to make our decisions and our contact then is with that elected official to say hey,I agree with this or I disagree with it.And all these TIF projects there is always a measure of a public hearing that has to he publicized and people have the opportunity to come in and often times they do and,in fact,often times competitors come in and raise the issue. Yeager:Why are you giving them such a good deal? Kemp:Absolutely. http://www.ipty.org/iowajournal/story.cfm/218/discussion 5/28/2013 Discussion: Rehabbing Old Iowa Malls » Iowa Journal » Iowa Public Television Page 3 of 5 Yeager:Peter,your thoughts on what voters should or rights they have when it comes to voting or discussing a TIF. Fisher:I think that is an issue and if you look at broadly what is really important to Iowa's long-term economic health infrastructure,the traditional city functions that you've talked about,our education system,a lot of which is the responsibility of local government. These are really the foundations of growth.And it seems to me odd that we have a system where if you want to build a school which is one of the most essential pieces of infrastructure we have paid for out of property taxes you have to have not just voter approval but a super majority.But a city can build a hotel with regular bonding and that would require at least majority approval if it were a general obligation bond.But as soon as it becomes a TIF project that voting requirement disappears.It's automatically exempt from a voter referendum and that doesn't make sense.We have to get 60%for a school and this council can build a hotel just by a majority vote of the council. Yeager:You're nodding here,in agreement? Kemp:Well,that's a good point and the pushback that you'd get,of course,from local officials,the city council member or a school board member is well maybe we shouldn't have the referendum's also.And that is going to be a perennial debate.We try to find this balance within the system that we think is right for citizen participation and the balance sometimes shifts.I think the reason TIF has worked as well as it has is it's been successful and that seems to be the issue.It's often times a perennial fight in the legislature because people are questioning it.How does this work?Should it work this way?And yet at the end of the day it seems it's always the answer to the extent that it is successful,that you do see and we very rarely have projects that go awry. Yeager:Let's go opposite of awry but good . . • s. • ere any through your studies follow that a .ear to he -. IF projects that it's a fair use of p.- •c money to put thi ect together? j fisher:Well,I'd li•, o go hack to the original purpose of TIF and I think if you follow t.• . / logic of that yo .ee why they created this tool and it was for situations where there was j some blight,some real decline in property values.And the market left to its own devices isn't solving that problem.There needs to he something,some catalyst,the city has to intervene.It's the city's job,not the county's or the school district's job to do that.So, what this law said was okay,you're going to step in and invest some money in this neighborhood and turn it around and that is going to be down to the benefit of county and school district governments eventually.So,we're going to let you capture various taxes \�until you are repaid for investment because you're undertaking the risk.So,when you Y ink about it it's a pretty extraordinary thing for the state law to do is to allow a city to sit the county and school district,you know that new building,well we're going to take your t- as well as ours off of that for a while.And so I think you have to have an extraordinary ' ion for that really to be justified and certainly there are plenty of examples of situations where s-lshh},t... Yeager ' ed in the original intent of the lal et hotFe aw as • led.Alan, w t are your th ughts and what ar e of the best uses of a TIF? Kemp:Well,he's r' e original use of TIF was to address slum and blight and then some point.irf rme they decided to expand it into the area specifically of economic development.And,again,I think it's because there was an acknowledgement that number one,the tool worked and then the second thing that they acknowledged was that's the way the system works.If you're a local government the only way you have to ensure a general ose revenue stream is to ensure your property tax base stays up.And so that is what TIF WIThersign.e.ds a tool,if you will,that sort of steps in,primes it and es that property values continu mow•--_,.._.------_..--------..— Yeager:And you say prime,there's a couple of uses of that.Prime the pump,if you can get part of it here started there's going to be other business that comes around it? Kemp:Absolutely.Probably the most recent success has been out in West Des Moines with the Jordan Creek Mall.That included a TIF area that really went for the traditional purposes and that was to put in roads,streets and sewers.And that has just had http://www.ipty.org/iowajournal/story.cfin/218/discussion 5/28/2013 Discussion: Rehabbing Old Iowa Malls » Iowa Journal » Iowa Public Television Page 4 of 5 remarkable success for the city of West Des Moines.You literally drive out there and something new emerges every day.And that has really helped their property tax base and the broader you make that base the more healthy your city is for not only the city but also the school district and the county. Fisher:I think it's important to distinguish between the success of the project and the success of TIF and it's difficult to know when TIF is necessary and when it isn't but I think if you look at the Coral Ridge Mall as an example which is one I'm more familiar with, that mall was there because of the location.It's near the intersection of two Interstates and we all know the mantra about where is retail located.It's location,location,location. And the TIF didn't matter.It's a small piece of their investment.That's where the mall had to be and it's kind of icing on the cake.So,the project was a success but I would argue that in many cases particularly in retail that are local market driven they're not really footloose.They need to be where the market is.The TIF was an expenditure of public funds,it wasn't necessary to get the project. Yeager:Do we have too many TIF projects especially for retail in cities across the state? Fisher:Well,I certainly think we have too much TIF when we have cities who over half of the valuation is under an increment,we have cities where the entire city is a TIF district.I think it needs to be reigned down.The intent was to redevelop blighted areas and it's so loose now... Yeager:That would say a whole town is a blighted area.We're under a minute now so your thought on that.Do we have too many TIFs? Kemp:I don't think it's a question of too many.You're always going to have,with any type of a law some of the marginal uses in which someone made the decision to put the entire city in the TIF,they probably didn't do that as a grab,they probably did it because it was convenient and the thought was we don't know where we're oin to do it and they didn't think about it.And so that's sort o ' ppens with this.Over whehm nost cities have really.staygd true at they thought the purpose was for or at least their it rotation it really remains the only economic development tools that cities r ly have tha ey can direct that they don't have to go either to the state to get or somewher else or the acquisition of land which has costs and which has process.It's really the one tool and so to be honest,city officials have really,really taken advantage of that tool to what they thought was the benefit of their communities. Tags: efav_Ioaya_malls—jaetiffes—shInpinq taxes COMMENTS 1 http://www.ipty.org/iowajournal/story.cfm/218/discussion 5/28/2013 NOEL ANDERSON From: Atul Patel <atuldesi@yahoo.com> Sent: Friday, May 24, 2013 12:39 PM To: NOEL ANDERSON Subject: ATUL PATEL...Waterloo Hotel project concerns... Noel, I am addressing these concerns to you as you represent City of Waterloo Planning and zoning and much more. I have over the years have invested heavily in lodging industry in Waterloo at Crossroads corridor and am very greatful to the City of Waterloo to help me with my endeavors. As you know, I have been sitting on piece of land next to Candlewood already approved by the city for developing another hotel since 2007 in the hope of finding a correct time in this difficult economy, tighter Bank fundings and high prop. taxations. Since than, I have developed hotels in Cedarfalls and other towns surrounding Waterloo in Iowa.Now I have a project that I feel will work well in Waterloo pending some obstacles are overcome. Proposing 80 room new Gen4 FairfieldInn by Marriott to be located by Bopp st. and Laporte road. We have following difficulties to overcome to make this project feasible and successful and to gtd optimal presence to give lodging experience to the highest stds. in todays times. 1. presence of overhead electric poles from MidAmerican Energy in front and on the proposed lot. those need to be moved on other side of the LaPorte road or buried underground. Advised that the cost would be ours to do so and runs in six figures.. 2. sewer line running through the proposed lot ..removal or working around with that is also an economic burden on our project. 3. soil conditions are not good atall at the proposed site as per the soil testing done by Terracon. soil correction measures would take extensive efforts and money aswell. 4. TIF help is yet not available as it's still pending city council's approval and is not that extensive to help us adequately with above difficulties the project is facing as of now. Looking at all the above, decision is made that without adequate help from city in addressing above needs ( except soil ..) , the proposed project submitted to the city already will not be economically feasible at Waterloo Crossroads at current site. As much as it may make sense and knowing that the project will give a stronger lodging base than what is already there and would be a win win situation for everybody, without extensive and immediate help by City, this project cannot take shape and probably will end up moving to different location in closeby town which would be very unfortunate. I do NOT want to force this project at any cost in Waterloo as it has got great economic compact on the cost of the project and want that it succeeds it's expectation and stay afloat in current economic conditions. I have NOT given up hope yet into putting this project in Waterloo and hoping from some help from City and current landlords to make this project happen. Noel, would like you to present my proposed project's obstacles to the City of Waterloo and see what can be done about MidAmerican energy utility poles and city sewer issues asap. My project cannot take the burden of impending costs. I want your help in making this project of mine into OURS...please.. Advise...waiting... ATUL PATEL i • 2000, 1st. St. W. Independence, IA 50644 Cell: 319/493/0686 Fax: 319/334/4088 "A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption of our work. He is the purpose of it. He is not an outsider to our business, He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to do so. He is not someone to argue with. Nobody ever won an argument with a customer.He is a person who bring us his wants. It's our job to handle them profitably to him and to ourselves." 2 The Creation of a Crossroads Tax Increment (TIF) District Why should the City of Waterloo consider creating a TIF District around Crossroads? 1. Current competitiveness—we are not only large retail center in Black Hawk County anymore 2. Maintaining Crossroads as an economic engine—it is about maintaining the customer traffic around Crossroads and in Crossroads 3. Blighted buildings, sites which need work,this ain't 1968....electric lines !old highway), sewer lines, poor soils.... II. Do others TIF for retail? 1. Yes—Jordan Creek. Coralville. Pinnacle Prairie article notes use of TIF for road development. 2. Different ways to use TIF—for incentives to businesses,for infrastructure (road, sewer, etc), for elimination of blight, and costly redevelopment ventures. 3. See attachment—purpose of TIF,to bring forth redevelopment,to stop and eliminate blight, decline in property values. III. Financials for TIF 1. A good amount of the infrastructure is in place. Projects listed—new roads, expanded and improved roads, new infrastructure, acquisitions, can all happen later—no immediate needs, unless large projects come. Gives time to build up TIF funds. 2. Can release funds—all or some—to general fund if needed. If released, County and Schools get their share. 3. Retail TIFs—if successful help generate local option sales tax—helpful to schools for lost property taxes immediately 4. Structured to return some funds to City from day one of taxes paid (50% rebate policy) a. A new$300,000 house will pay$6,600 taxes per year. b. A new 8-tenant strip mall,valued at$2.4 million, would pay$103,000 in taxes. If we gave 50% rebate, still paying$51,500 per year. c. A new restaurant,valued at$1.5 million, would pay$65,000 in taxes.. If we gave 50%tax rebate,still paying$32,500 per year. IV. Summary 1. Property taxes are one benefit of new development. a. Permit fees(cash to City general fund) b. Employees (brings housing, more customers, more business) c. Gas tax(cash to City) d. Local option tax(goes toward city infrastructure) e. Housing (brings more employees, more residents, more students to schools) f. Groceries(brought by more employees—larger big box type developments also bring smaller stores) g. Traffic numbers(helps attracting new businesses) h. Population (brings federal funding, road dollars, etc.to area) i. Retail density(helps bring new businesses to area) j. Construction jobs i. Long term 1. Hotel stays 2. New businesses ii. Short term 1. Hotel stays 2. Restaurants, retail, groceries k. Hotel Motel taxes 2. It is the one tool cities have. We must use to the benefit of our community. We must help the Crossroads area. We must eliminate blight and preserve property tax base, values, as well as work progressively to bring forth new development. 3. Is it better to be focused on debt and deficit control or better to be focused on stimulus actions? New businesses= new jobs= new employees= new customers= new housing=new businesses....repeat.