APPROVAL OF TAX INCREMENT FINANCING (TIF) DISTRICTS FOR THE EAST 13TH STREET AND ISU RESEARCH PARK URBAN RENEWAL AREAS
City Council has approved Urban Renewal Plans for the ISU Research Park and the East 13th Street respectively. Each Plan includes allowances for Tax Increment Financing (TIF) Districts to finance projects identified within the Plans. The proposed TIF Districts are the first batch of Districts planned to be created before January 1, 2027 to maximize the benefits of Urban Renewal established by SF2472.
The City of Ames initially approved the 5th Tax Increment Financing District in 2014 with the Phase III expansion of the Research Park. The boundaries of the District were last amended in 2022 to account for reconfigured property boundaries. The proposed changes are a combination of repealing the TIF District boundaries for the recently constructed Discovery Place Phase I residential and the mixed-use Catalyst building to ensure the partial development counts as new construction general fund growth for the City. Additionally, staff is moving six properties out of the existing TIF District and creating six new TIF Districts to better account for new construction valuation. Staff has also proposed creating five new TIF Districts for properties that were not previously within a TIF District.
East 13th Street is a new urban renewal area. City staff proposed creation of seven TIF Districts, on for each property within the District. The only developed property in this area is the JT Warehouse building.
- Approve on first reading the two proposed ordinances for ISU Research Park TIF Districts and E 13th Street TIF Districts, and waive the rules and complete the second and third readings, and adopt the ordinances.
- Direct staff to modify the ordinances and approve on first reading.
- Direct staff to modify the ordinances and return for approval at future meeting.
The proposed TIF boundaries accommodate City priorities to maximize new construction as general fund growth and for the benefit of providing for financial assistance to projects identified within each Urban Renewal Plan.
Staff requests City Council waive the rules and adopted the ordinances on third reading in order that these newly created TIF Districts can be used for financing requests for planned Capital Improvement Projects identified within each respective Plan on November 24th.
Therefore, it is the recommendation of the City Manager that the City Council approve Alternative 1, including the waiver of rules and adoption of the ordinances.
It should be noted that addition TIF Districts will be established for the other URAs at upcoming City Council meetings.