On July 28, City Council asked for a memo from from City staff in regards to a request from CDA on behalf of land owners Des Moines Heavy Industrial LLC and Ag Land Specialist, LLC that the City’s subdivision requirements and Urban Fringe Land Use Designation restrictions as a Natural Area be waived to allow the properties just southeast of Ames at 3500 560th Avenue in Story County be final platted into five new lots out of two existing parcels (See attached letter). After reviewing the staff memo on August 25, the City Council directed this request be placed on a future agenda.
The specific request is to allow for five new lots to be created from two existing parcels at 3500 560th Avenue. Specifically, four of the five new lots will be designated as Outlots for transfer of ownership between the two parties and future development. One lot would be platted and initially developed with County-approved conditional use for a concrete plant. Under City subdivision standards a division with three or more lots, regardless of purpose, requires a Preliminary and Final Plat consistent with City standards of Chapter 23 of the Ames Municipal Code.
The City has subdivision authority combined with Story County within two miles of its corporate limits. The City's Ames Plan 2040 Urban Reserve overlay designation applies to this property. The properties are also designed as Open Space and Natural Area reflecting the general natural and agricultural conditions of the area southeast of the City.
The Urban Reserve policies require that any proposed subdivision must comply with City subdivision standards and also must annex into the City. If the adjoining properties between the City and these properties do not consent to be annexed and the property cannot be served by City infrastructure, then annexation is usually not possible and it is assumed that rural development would not occur.
The property is also located entirely in the Natural Area Conservation land use designation of the Fringe. This designation has been in place since Ames Plan 2040’s approval five years ago. Generally, subdivisions of land in these areas are not supported by Plan 2040 as the intent of this land use designation is to conserve and maintain existing conditions as well as maintaining natural undeveloped land.
PLANNED USE:
The landowners obtained a Story County conditional use permit in late 2025 for CTI to construct and operate a Concrete Mixing Batch Plant operation at the proposed Lot 1.
The batch plant would be constructed on the portion of the existing property being proposed for subdivision in this request along 560th Avenue at the far north edge. This is an approved permit that can proceed without a subdivision as staff understands the approval.
The owners desire to subdivide is not directly related to the batch plant proposal as outlined in the letter (See attached Letter). It is otherwise unclear to staff why the owners would like to subdivide the land in such a manner at this time. However, the representative with CDA has indicated that the owners may choose to pursue mineral extraction on this site to the east in the future.
The landowner does own land adjacent to this site and has mineral extraction rights on this land at 3500 560th as well as adjacent land to the north where extraction activities currently take place.
Future mineral extraction could be a concern to the City in relation to planned new water wells near this site to the south. City staff consulted with Story County Planning staff to understand the process for the owners to establish new mineral extraction. New mineral extraction would require a separate conditional use permit approval from Story County. County staff indicated they had informed the developer during preliminary review that the owner would need to consult with Ames and Nevada about potential impacts to the aquifer related to drinking water wells. The Ames Water & Pollution Control Department has expressed concern that the mineral extraction will be in the same aquifer as the water wells and this could negatively affect the wells and their permitting from DNR.
RURAL SUBDIVISION POLICIES:
Ames Plan 2040 states that the minimum lot size within the Urban Fringe is 35 acres (UF3-1 and UF4-3). Restricting the size of parcels serves to facilitate future growth by ensuring that property lines and ownership do not become so fractured that development and annexation are inhibited. It is easier to develop a large acreage than to develop, in a piecemeal fashion, many small parcels. Council has also approved boundary line adjustments and divisions that result in continued agricultural use as limitation with the division.
If this policy is applied, the proposed five lots would not meet this standard for approval. As stated in Ames 2040 Plan:
UF3-2: Natural Area Conservation.
Natural areas include sensitive areas of natural habitat, steep slopes, and waterways. Natural area designations are informational based upon the Environment Element and the 2006 AUFP. Creation of new parcels within these areas for new development is prohibited. Property divisions only for land conservation purposes is permissible with city approval. Land conservation is typically for larger areas to be preserved within outlots under common or private ownership or to transfer ownership to a governmental or non-governmental organization for its management. Creation of private open space may not be appropriate under this designation. Natural Areas adjacent to the city may still require annexation to further city goals for orderly development patterns and resource conservation.
Option 1-
Take no action on the landowner's request to support waiver of City Subdivision standards.
This would mean the applicant would have to proceed with a Preliminary Plat and Final Plat review subject to meeting City subdivision standards and infrastructure improvement requirements.
Option 2-
Direct staff to inform the landowner that the City Council supports allowing for a waiver of Preliminary Plat with Public Improvements as well as a waiver of the Natural Area Land Use designation rules and allow for a Final Plat to be submitted for City approval for 3500 560th Avenue.
This option would waive the Preliminary Plat requirements and Ames Plan 2040 Land Use designation policies in order to allow a subdivision as the landowner has proposed within two miles of the City. This would allow creation of a new lot and additional outlots that the landowner is requesting to subdivide. The applicant and owner have requested this action to allow the owner to sell and purchase land with the ability to subdivide for the owner's future plans.
Option 3-
Direct staff to inform the landowner that they can pursue a boundary line adjustment to reconfigure the boundary lines of the existing properties. This option would allow the landowner to adjust the property lines between both properties to pursue creating area on the property that they desire to put a mineral extraction operation on and concrete plant, if it can be done, based on the current property ownership.
This option would only allow for a boundary line adjustment but would not allow for a split and creation of the lot and outlots proposed in the sketch that was submitted to City staff. Boundary line adjustments do not require waivers of Plan 2040 Policies as no new development lots are created.
The Ames Development Review Committee (DRC) has had one initial meeting with representatives with CDA and consultations with Story County Planning staff by way of a Sketch Plan meeting. Staff has concerns about creating additional development lots in an area that does not have urban infrastructure, but connects directly to City roads at the HWY 30 interchange.
Based upon the City's Plan 2040 policies for management of rural division, staff can recommend either Option #1 or #3. Staff does not support the request to fully waive City standards (Option #2) for the creation of a subdivision at this location as it would be inconsistent with Plan 2040.
While the approval of a subdivision does not directly lead to approval of an additional mining operation, staff from the Water & Pollution Control Department believes mineral extraction could impact the aquifer planned to be used for the City's new wells to the south. Therefore, staff will be opposing the issuance of a Conditional Use Permit from Story County to extract minerals on the property.