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HomeMy WebLinkAboutWaterloo Downtown Urban Renewal 2024 Project Amendment 11-18-24Prepared by Aric Schroeder, City of Waterloo, 715 Mulberry Street, Waterloo, IA, 50703 319-291-4366 Return to preparer after recording. AMENDMENT TO DOWNTOWN WATERLOO RIVERFRONT URBAN RENEWAL AND REDEVELOPMENT PLAN RECITALS A. Whereas on December 23, 1974, the City Council of the City of Waterloo, Iowa (the "City") adopted Ordinance No. 2723 which was amended by Resolution No. 1996-804, adopted December 16, 1996, amended by resolution 2001-394, adopted on August 6, 2001, amended by Resolution No. 2003-225, adopted on April 7, 2003, amended by Resolution No. 2011-1109, adopted December 5, 2011, amended by Resolution No. 2014-966, adopted November 10, 2014, amended by Resolution No. 2015-632, adopted August 10, 2015, and amended by Resolution No. 2017-772, adopted September 18, 2017, determining that certain areas located within the City are eligible and should be designated as an urban renewal area under Iowa law, and approved and adopted the Downtown Waterloo Riverfront Urban Renewal and Redevelopment Plan of the City of Waterloo Iowa (the "Plan"). B. The City desires to amend the Plan again to include new urban renewal projects and to update related information in the Plan. AMENDMENT NOW THEREFORE, the Downtown Waterloo Riverfront Urban Renewal and Redevelopment Plan, as previously amended, is hereby further amended as follows: 1. Attachments C and D to the Plan are hereby stricken in their entirety, and the new Attachments C and D which are attached hereto are substituted in their place so that the Plan shows current information about bonding capacity and project budgets. 2. The attachments listed below, each of which is attached hereto, are included in this amendment to show compliance with procedural requirements under state law for adoption of this amendment, but do not replace or supersede similar attachments to the original Plan or any amendment thereto adopted prior to this amendment: Attachment H (notice of consultation) Attachment I (resolution adopting this amendment) Attachment K (published notice of public hearing) Attachment L (posted notice of public hearing) 3. Except as modified by this amendment, the Plan, as previously amended, shall continue unmodified in full force and effect. PASSED AND APPROVED this 18 day of November ATTEST: Kelley Felch(e DIG) 'ALLY SIGNED Kelley Felchle, City Clerk 2 62cuert-an Quentin Hart, Mayor , 2024. Attachment C City of Waterloo Black Hawk County, Iowa Study of Bonding Capacity as of January 1, 2023 January 1, 2023 Actual Gross Assessed Valuation $5,379,355,874 Legal Bonding Rate 5% Legal Bonding Limit $ 268,967,794 Less Outstanding G.O. & Other Debt ($ 136,127,751) Unused Gross bonding Capacity $ 132,840,043 50.61 % of legal limit ATTACHMENT D DOWNTOWN URBAN RENEWAL AND REDEVELOPMENT AREA PROJECT AMENDMENT 2024 Project Proposals Proposed Budgets Changes Cedar River Upper Plaza Mall Acquisition City Property Site Improvements Construction Landscaping & Public Art Architectural Fees Engineering Fees Construction Administration Total $1,501,620 $48,380 $1,800,000 $12,400,000 $200,000 $1,300,000 $700,000 $400,000 $18,350,000 Downtown Pedestrian Riverwalk Loop Project Levee Construction $650,000 River edge/Wall Construction $4,900,000 Bridge Connections $17,000 Total $5,567,000 Wellness and Sports Complex Project Acquisition $2,000,000 City Property $250,000 Site Improvements $3,000,000 Construction $17,500,000 Landscaping & Public Art $150,000 Architectural Fees $2,600,000 Engineering Fees $1,500,000 Construction Administration $1,200,000 Total $28,200,000 Techworks Campus Redevelopment/Hotel Construction, Site Improvements and $77,739,038 Acquisition/Platting $5,000,000 Streetscape Improvements Total $82,739,038 Downtown Parking and Cedar Valley Trolley System Depot District Stop $10,000 Commercial Avenue South Stop $10,000 Agritrade and Expo Stop $10,000 Commercial Avenue North Stop $10,000 Mullan Avenue East Stop $10,000 City Transit Center Stop $10,000 Equipment Purchase Eight Trolley Cars $1,600,000 Total $1,660,000 Public Improvements Wayfinding & Signage $160,000 Commercial Street Reconstruction $782,500 New Street Construction/Bridges $4,000,000 Streetscaping/Lighting $4,440,000 Planning $72,798 Skywalks $2,000,000 Total $11,455,298 Construction - Riverfront Renissance Phase I $3,500,000 Phase II $3,500,000 Phase III $3,500,000 Phase IV $3,500,000 Phase V $3,500,000 Phase VI $3,500,000 Phase VII $3,500,000 Phase VIII $3,500,000 Phase IX $3,500,000 Site Assembly $4,000,000 Site Improvements $2,000,000 UNICUE Downtown Center $1,300,000 Parking $300,000 Plaza $300,000 Retail $1,200,000 Total $40,600,000 Downtown Gateway District Acquisition $3,000,000 Infill Redevelopment $6,000,000 Total $9,000,000 Cedar River Dam Construction $3,500,000 Engineering & Construction & Administration $500,000 Total $4,000,000 Grout Museum Architectural & Engineering $361,718 Construction $5,995,870 Exhibits $2,638,993 Total $8,996,581 $1,100,000 $8,555,298 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) 23) 24) 25) 26) 27) 28) 29) ElizabethBlake, LLC (2005 Westfield, American Pattern) Grant Rebates Total $221,350 $500,000 $721,350 Endeavors, Ltd (former Johnstone Supply, 321 W 6th St) Acquisition $470,000 Demo $600,000 Rebates $200,000 Total $1,270,000 Bread to Beer, LLC (Singlespeed, former Wonderbread, Acquisition $400,000 325 Commercial) Abatement/environmental $10,000 Grant $160,000 Additional expenses $550,000 Rebates $940,699 Total $2,060,699 Dolly James 2, LLC; Hi Yield, LLC Acquisition $1,040,000 (820-920 Sycamore apartments- six buildings) Demo $330,000 Rebates $809,000 Total $2,179,000 Convention Center/Plaza/Veterans Way - City Bonds $27,000,000 (200 W 4th) Enginering/Architect Fees $1,000,000 Including Skywalks and parking ramps Total $28,000,000 Hotel, 205 W 4th (Makenda LLC) Bonds/TIF Rebates $5,000,000 Hotel/Motel $1,500,000 ED Grant $450,000 Total $6,950,000 Grand Investments, LLC Acquisition $800,000 (Grand Crossing Phase I - 45 W Jefferson) Demo $400,000 Rebates $1,900,000 Total $3,100,000 Dolly James 2,LLC; Hi Yield, LLC Acquisition $120,000 (6COMM, NE corner of 6th & Commercial) Demo $80,000 Rebates $1,300,000 Total $1,500,000 Commercial & Jefferson Streetscape 2019 Design & Construction $1,400,000 Total $1,400,000 Verve/Public Market, 327 W 3rd St Fire Sprinkler System $68,765 Rebates $200,000 Construction (remodel/insulation) $600,000 Total $868,765 Cedar Valley Real Estate (300 Commercial Street) Grant $300,000 Rebates $300,000 Total $600,000 Crystal Distribution Acquisition, 70-90 Sycamore St Property Acquisition $650,000 Demo $450,000 Total $1,100,000 Legal Fees, Consulting Fees, maps, marketing, materials, and related expenses Misc. Fees $700,000 Total $700,000 Property Acquisition Property Acquisition $16,000,000 Total $16,000,000 LSBX Grant $550,000 Rebates $2,200,000 Total $2,750,000 IRD Bond $3,000,000 Total $3,000,000 Art Bloc Land Grant $100,000 Rebates $1,700,000 Total $1,800,000 WCA Parking Lot Construction $3,500,000 Total $3,500,000 Econo Lodge Grant $35,000 Rebates $800,000 Acquisition $1,200,000 Demo $1,000,000 Construction $1,500,000 Total $4,535,000 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40) 41) 42) 43) 44) 45) Former West Side Courier Building (501-503 Grant $545,000 Commercial St) Demo $0 Construction $300,000 Rebates $2,856,000 Total $3,701,000 Westfield Lot Development Sewer $230,000 Environmental $10,000 Total $240,000 Marina Acquisition $100,000 Grant $550,000 Construction $3,000,000 Rebates $1,300,000 Total $4,950,000 Tech Works Campus Redevelopment/Outlots (Hard Infrastructure $6,000,000 Court Project) Grant $6,800,000 Rebates $2,000,000 Acquisition $2,400,000 Planning/Engineering $300,000 Total $17,500,000 Grand Crossing III Acquisition $0 Rebates $2,500,000 Total $2,500,000 Midwest Pattern 84-180 W 11th St Acquisition $1,000,000 Demolition $40,000 Total $1,040,000 Demolitions (various, such as: 100-114 E 10th St, 105 E Demolition $3,500,000 11th St, 100 E 9th St, 105 E 10th St, 1100 Sycamore St, 817 Bluff St, 321 W 6th St, 70-90 Sycamore St Total $3,500,000 JSA 704-706 Jefferson St Grant $230,000 Rebates $248,000 Construction $3,000,000 Total $3,478,000 Cedar River Whitewater Course Local Funds $7,200,000 Grant $5,600,000 Design/Engineering $1,200,000 Total $14,000,000 Bridge Lighting Local Funds $2,000,000 Design/Engineering $600,000 Grant/Other Funds $2,200,000 Total $4,800,000 HAA LLC, 319 Jefferson St Grant $150,000 Rebates $114,000 Total $264,000 JSA Development, 716 Commercial St Grant $120,000 Rebates $124,000 Total $244,000 Waterloo Center for the Arts/Waterloo Children's Acquisition $1,400,000 Playhouse Demolition $200,000 Construction $8,000,000 Total $9,600,000 Former East Side Courier Building (100 E 4th St) Acquisition $6,500,000 Demolition $0 Construction $4,500,000 Total $11,000,000 Martin Flats (319-321 E 4th St) Grant $199,000 Rebates $196,000 Land Value $20,000 Total $415,000 $0 Total $0 Sub Total $358,419,731 $4,000,000 $2,800,000 $0 $9,100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $337,519,731 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Tax Rebate Projects Fischels Holdings, LLC (1118 Jefferson St) $50,000 Court Square Building CO (620 Lafayette) $10,000 Hotel President Partners LP (500 Sycamore) $200,000 3 Stooges, LLC (1116-1118 Commercial) $41,220 Grand Crossing II (21 W Jefferson) $1,100,000 Park Avenue Lofts, LLC (Masonic Temple, 325 E Park) $125,000 Upper Plaza (335 Cedar Street) $1,400,000 JSA Master Development Agreement $1,000,000 Sub Total Tax Rebates $3,926,220 TOTAL $362,345,951 $341,445,951 CITY OF WATERLOO, IOWA URBAN RENEWAL PLAN AMENDMENT DOWNTOWN WATERLOO RIVERFRONT REDEVELOPMENT DISTRICT November 2024 The Urban Renewal Plan (the "Plan") for the Downtown Waterloo Riverfront Redevelopment District (the "Urban Renewal Area") of the City of Waterloo, Iowa (the "City") is being amended for the purposes of (1) updating the descriptions of certain urban renewal projects approved in prior amendments to the Plan; and (2) identifying new urban renewal projects to be undertaken in the Urban Renewal Area. 1) Description of the City's Building Swap for new City Hall and redevelopment of existing City Hall and Carnegie Library/Annex buildings. The description of the Project is hereby as follows: Name of Project: Building Swap for new City Hall and redevelopment of existing City Hall and Carnegie Library/Annex buildings Project. Date of Council Approval of Project: November 2024 Description of Project and Project Site: The City of Waterloo ("the City") will be acquiring the empty office building at 100 E 4th Street and conveying the two public buildings at 626 and 715 Mulberry Street, which currently contain several City Departments, for the purposes of improving both the needs of the City of Waterloo for an improved work environment for the Police Department, Mayor's Office, and several City administrative staff, while simultaneously working to improve the two current public buildings for new Downtown Waterloo development. This project will bring forth improvements to all three buildings, eliminate an empty office building in Downtown Waterloo, and work towards overall goals of Downtown Waterloo. The completed Project will have a direct, positive impact on increased and improved residential, commercial, and elimination of empty buildings in the Urban Renewal Area. This relocation of Public Safety, City administrative staff, and reinvestment into all the buildings will have a positive impact on other nearby locations and businesses. Description of Public Infrastructure: It is not anticipated that any major additional public infrastructure improvements are needed in connection with the Project. Description of Properties to be Acquired in Connection with Project: The City will acquire 100East4'h Streetand sell 626 and 715 Mulberry Street. Description of Use of TIF: It is anticipated that the City will pay for a portion of -1- the Project with either borrowed funds or the proceeds of an internal advance of City funds on -hand. In any case, the City's obligations will be repaid with incremental property tax revenues derived from the Urban Renewal Area. It is anticipated that the City's use of incremental property tax revenues for the Project will not exceed $10,500,000, plus any interest expense incurred by the City on any borrowing undertaken for the funding of the Project. Analysis of Use of TIF: In accordance with the requirement of Section 403.5(2)(b)(1) of the Code of Iowa, the City has analyzed its proposed use of incremental property tax revenues for the funding of the Project and alternative development and funding options for the Project. The results of that analysis are summarized as follows: A) Alternate Development Options: The City of Waterloo conducted an Audit of City buildings in 2019 to determine overall costs of multiple buildings, evaluate City funds for needed improvements, and work to establish plans moving ahead for needed rehabilitation and/or replacement. The report noted about $645.9 million in needed rehabilitation and repair costs overall. The current City Hall at 715 Mulberry Street has a rehabilitation estimate of $10.167 million, with a new construction replacement value at $15 million. The Carnegie Library/Annex structure has a rehabilitation value of $1.7 million, and a new construction replacement value at $3.75 million. The City has been able to secure grant funds and other sources for some other City buildings (Convention Center, Public Works), and has eliminated some buildings in partnerships with the Waterloo Schools and private developers, (Street Department, Central Garage) but City Hall and Carnegie have not yet been addressed. The needs for various repairs, concerns for mold, asbestos, leaking windows, health of staff, all continue to escalate with City officials, public scrutiny, social media concerns, and other documented photos/ needs for improvements to the Waterloo Police Department and City Hall as a whole. Recent roof flooding during repairs of several city departments, including the Council Chambers, has further accelerated the need for this project. The City has worked over the years to partner with Black Hawk County for locations in Downtown Waterloo and to establish a "government district" type setup in the City's Downtown Master Plan, as well as working with Main Street Waterloo for such land use patterns. Thus, it is imperative that City Hall and the Police Department remain in the Downtown Urban Renewal Area. The City's ability to fulfill its duty of proper rehabilitation of said Police Department and other administrative offices in the Urban Renewal Area is diminished by inadequate, outdated, and poorly designed department layouts/facilities. There is no conceivable way for the City to outsource or privatize its Police protection services. The use of the empty office building property (100 East 4th Street) as the site for the Police Department / City Hall relocation Project is an optimal use for this land as it further eliminates a highly visible and empty building along the banks of the Cedar River. The redevelopment of the current -2- public buildings for potential residential, mixed use, and commercial/office spaces will bring additional redevelopment opportunities to Downtown Waterloo. B) Alternate Financing Options: * The Local Option Sales and Services Tax Revenues are authorized to be used exclusively by the City for street improvements (80%) and property tax relief (20%). The City has exclusively dedicated the portion of local option taxes available for property tax relief to supporting the City's general fund. * General Fund: The City's General Fund reserves are fully committed to maintain the operational integrity of the City. The City cannot access its General Fund reserves to aid in the Project funding without risking unsound fiscal practice. * Capital Improvements Levy: The City does not have a Capital Improvements Levy available, and the imposition of such additional levy would require a successful referendum, which is not feasible at this time. * Debt Service Levy: The City Council has determined that the debt service levy rate should not be raised for the Project. The City will be required to raise the debt service levy for projects that do not qualify for tax increment financing. Raising the current debt service levy rate for the Project would result in an undue burden to the citizens of the City of Waterloo. The use of tax increment financing will lessen the burden on individual taxpayers that would result from a spike in the debt service levy rate and will shift that burden onto valuation increases resulting from the City's successful economic redevelopment from the two public buildings to be conveyed for said redevelopment. * Grant Proceeds: The City has several other active projects utilizing funds from local grant sources and entities. The City does not foresee the ability to apply for any other additional grant funds for this project at this time. 3