October 4, 2017
From: Maggie Carlin
To: Mayor Bemrich and City Council
Subject: Hold public hearing on the
proposed Corridor Self Supported Municipal Improvement District (CSSMID).
ACTION: Hold CSSMID public hearing on October 9th and resolution vote; but no ordinance action, as must wait 30 days after public hearing for ordinance action.
Brief History
Iowa Code §386 allows communities to establish Self-Supported Municipal
Improvement Districts (aka a SSMID District). During the September 11th City Council meeting, Council approved a resolution authorizing the Plan and Zoning Commission to review the attached Petition to Establish a Corridor Self Supported Municipal
Improvement District (CSSMID). Attached please find the P&Z's report to Council on this CSSMID item - the P&Z reviewed the CSSMID topic during their September 12th meeting and recommended Council move forward with the CSSMID adoption process. As a refresher, a SSMID District is an area of contiguous property within a city, either zoned for commercial or industrial purposes, that if enough property owner support is generated for approving a SSMID District, an additional tax levy is imposed. The added revenues as a result of the additional tax can then be used for public improvements within the District, administrative fees, and debt for the cost of improvements. The City is familiar with what a SSMID District is, as Downtown SSMID that has been in effect for over 30 years.
Per the attached proposed CSSMID Map, this Corridor SSMID will generally exist from South 15th Street-South 32nd Street along 5th Avenue South, mimicking those parcels included as part of the City's Corridor Commercial Overlay (O-CC) District, with the exclusion of a few residentially-zoned dwellings toward the west side. Noted that maps have been updated to now exclude the Nestle site, as justification can be had in
excluding this Nestle locatoin since their property is not situated within the Overlay District. An informal steering committee of property/business owners along 5th Avenue South has been meeting over the past half year to organize efforts for establishing the proposed CSSMID District. These steering committee members believe that this area will benefit from having a SSMID in place. During this planning period, the committee has developed preliminary goals and priorities, hosted a public open house with property owners, and have personally contacted many of the property owners within the proposed District - and are continuing to contact those remaining property owners.
Back in 2012, Council began the process for considering adoption of a CSSMID but did not adopt the District. This 2012 CSSMID was different in scope when compared to the
proposed 2017 boundaries, as the 2012 boundaries included most commercial and industrial property on the east side of town, while the 2017 boundaries are more focused in scope; if adopted, the 2012 CSSMID would have been comprised of 488 acres, when compared to 2017 proposed boundary of 132 acres. Why the proposed district change in these 2017 efforts?
• The proposed 2017 CSSMID District boundaries may more closely reflect Iowa Code's intent that the properties within a SSMID Boundary be "related in some manner". These 2017 CSSMID boundary closely mimics the Corridor
Commercial Overlay (O-CC) District. This is the area of the community where the majority of the 5th Avenue South streetscaping efforts have been in recent years. • The 2017 CSSMID District boundaries may be more achievable for obtaining the
necessary numbers of signatures - when thinking in terms of sheer numbers of signatures needed.
• The 2012 efforts were not successful in receiving Council's required 50%
property owner/assessed value support. The thought here was to re-shift efforts to see if 50% property owner/assessed value support can be generated within the proposed 2017 CSSMID boundaries in order to get this SSMID district up and running; and then if adopted and once this District is up for renewal, the
proposed boundaries can be revisited again to see if additional areas of the community should be added.
The organization, structure, and operations of the proposed CSSMID District will be fairly similar to Downtown SSMID - through preliminary discussions with the steering committee, the CSSMID Board will consist of nine members and this Board will meet quarterly. Once adopted, the CSSMID will operate for 10 years, with a renewal process occurring at the 10 year mark. If/when the CSSMID Ordinance is adopted by Council, the CSSMID Board will need to formally establish a set of By-Laws. Similar to the Dowtown SSMID, the CSSMID Board will make recommendations on use of funds with approval by City Council.
The additional tax levy rate proposed as part of this CSSMID is $1.00/$1,000. This additional rate will generate an estimated $34,000 a year based on current assessed values of properties within. A majority of the funds generated will be used for right-of-way maintenance (sidewalk snow removal and right-of-right-of-way grass mowing); while a portion of funds will also be set aside each year to pool for potential larger public improvement projects, similar to how the Downtown SSMID operates.
What is the process moving forward for the CSSMID? Below is a potential timeline for CSSMID establishment:
• October 9th - City Council holds the CSSMID public hearing. • 30 day wait period - required by Iowa Code.
• November 13th - City Council considers the 1st Ordinance reading for establishment of a CSSMID.
• November 20th - City Council considers the 2nd Ordinance reading for establishment of a CSSMID. *special meeting*
• November 27th - City Council considers the 3rd Ordinance reading for establishment of a CSSMID.
The above timeline ensures that if adopted, the additional tax levy is reflected on the next round of property taxes. The above timeline also gives the steering committee until mid-November to obtain additional property owner signature support prior to the
Ordinance's 3rd consideration. Analysis of Issue
The informal organizing committee has submitted petitions in favor of establishing the District. Iowa Code §386.3 requires “signatures of at least twenty-five percent of all owners of property within the proposed district.” It further requires that “these signatures must together represent ownership of property with an assessed value of twenty-five percent or more of the assessed value of all the property in the proposed district.” At the writing of this report, 37% of the owners of the District, representing 34% of the total assessed value of all property within the District, have signed the petition in support of the establishment of the District. As noted, petitions can continue to be received by the committee until mid-November.
Some of the characteristics of the proposed District are described below:
• CSSMID area includes approximately 132 acres of land and over $38,525,940 in total assessed property values.
• The proposed amount of investment from property owners in this area will generate about $34,000 annually for use within the District.
• Only those properties zoned commercial or industrial are within the proposed district, as required by State Law. See attached Zoning Map.
• The proposed District includes a mix of uses. Approximately 74% of the
proposed district parcels are currently used for commercial, industrial, or multi-family uses and are subject to the tax increase, if adopted. The remaining 26% are residential, exempt, or agricultural uses (all of which are zoned for
commercial use). The residential, exempt, and agricultural properties are not subject to the assessment unless the use changes in the future. The City of Fort Dodge owns approximately 11% of the total properties within the District; worth noting - the City cannot count as as a property owner/assessed value in support when calculating petitions received. However, if the District is adopted, and once any City lands are sold for private redevelopment, then these lands will be
subject to the additional tax. An example of this - the City of Fort Dodge owns three parcels that will be part of the future Peoples Credit Union redevelopment site between South 17th and 18th Streets south of 5th Avenue South.
Budget Impact
If established, the CSSMID will generate approximately $34,000 annually in additional revenue based on current property values. These funds can be used on projects within the district for operations, capital improvements, or debt service as permitted by Iowa law. Iowa Code §386 identifies eligible expenses each tax may cover. The CSSMID Board will make recommendations on use of funds with approval by City Council. SSMID
Districts typically use funds to cost participate on capital projects or to enhance a
planned City project. The preliminary vision of this CSSMID is to maintain aesthetics and landscaping, implement economic development plans, and in general work toward the benefit, growth, and vitality of the District as a whole.
Existing Plan Impact
The proposed CSSMID is consistent wit the following Goal and Objective of Re-Envision 2030:
Goal 7: Establish an attractive destination commercial district that builds upon existing businesses and the strength of 1st Avenue South and 5th Avenue South.
Objective 2: Continue to enhance 5th Avenue South as the Corridor of Commerce.
"The City should work with property owners along the Corridor of Commerce to consider establishment of an Improvement District similar to the Downtown SSMID. A CSSMID would promote
streetscape improvements, maintenance, and other improvements in the public right-of-way".
Subcommittee or Commission Review / Recommendation
Per Iowa Code 386.3.3.a - the Plan and Zoning Commission reviewed the CSSMID Petition to Establish during their meeting on September 12th and voted 6-0 in favor with 1 member absent for the following motion:
"We have evaluated the Petition to Establish the proposed Corridor Self
Supported Municipal Improvement District (CSSMID) and believe it has merit and feasibility, as outlined in the staff report. We recommend the District be
established".
Staff Conclusions / Recommendations
Staff recommends approval of the attached resolution of intent. This is just a resolution of intent, as Council must wait 30 days for any ordinance action after this public
hearing. Alternatives
Council may decide to not not hold the public hearing/not approve the resolution. Implementation and Accountability
If Council approves the attached resolution, staff will continue to work with the steering committee for obtaining signatures in support of the proposed CSSMID.
Approved By: Department: Status:
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840 420 0 840FeetThe parcel data showin is estimated only and should not be interpreted as an official survey.
DRAFT Corridor SSMID District
Legend CSSMIDParcels_05172017 Proposed CSSMID West Boundary Proposed CSSMID East Boundary
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825 412.5 0 825FeetThe parcel data showin is estimated only and should not be interpreted as an official survey.
DRAFT Corridor SSMID District - Zoning
Legend CSSMIDParcels_05172017 AG: Agricultural CN: Conservation 6RS: Residential Single-Family 4RS: Residential Single-Family MH: Mobile Home 4RM: Residential Multiple-Family 3RM: Residential Multiple-Family 2RM: Residential Multiple-Family HM: Hospital Medical
SC: Shopping Center Commercial AC: Arterial Commercial OC: Office Commercial D2: Downtown Corridor LI: Light Industrial HI: Heavy Industrial
Proposed CSSMID West Boundary
Proposed CSSMID East Boundary
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PETITION TO ESTABLISH THE FORT DODGE CORRIDOR SELF-SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT PURSUANT
TO CHAPTER 386, CODE OF IOWA
We, the undersigned, being at least 25 per cent of all owners of property within the self-supported municipal improvement district proposed and hereinafter defined by this petition, and being owners of property within the proposed district having an assessed value of at least 25 per cent of the assessed value of all the property in the proposed district, hereby petition the City Council of the City of Fort Dodge, Iowa, pursuant to the provisions of Chapter 386 of the Code of Iowa (the “Act”), as follows:
1. To establish a self-supported municipal improvement district in the City of
Fort Dodge, Webster County, Iowa, as follows:
(a) The name of the district shall be the “Fort Dodge Corridor Self-Supported
Municipal Improvement District” (hereinafter referred to as the “Proposed District”),
(b) The purposes of the Proposed District shall be the undertaking of actions
and the design and construction of any and all improvements authorized by the Act and the performance of administration, redevelopment, and revitalization of the Proposed District, as authorized by the Act, any and all of which actions and improvements are intended to benefit the property within the Proposed District,
(c) The property within the Proposed District is described generally as all
property abutting either side of 5th Avenue South from its intersection with South 15th
Street to its intersection with South 32nd Street, and, more particularly, property with the
following Webster County Real Estate Identification numbers, as of June 29, 2017: Parcels subject to taxation:
0728126003, 0728126004, 0729204001, 0728126025, 0721376016, 0728227008, 0728227007, 0720460013, 0720459014, 0728126007, 0721376014, 0728227003, 0721376009, 0721376008, 0728101012, 0720459013, 0728126026, 0728101005, 0721451022, 0721476007, 0728101011, 0721451031, 0721451016, 0721451014, 0728202001, 0728226003, 0721451015, 0729229003, 0721451011, 0728101008, 0728227001, 0721451020, 0721451021, 0720462010, 0720462011, 0728201026, 0729202010, 0729227009, 0728101007, 0720459010, 0728101009, 0720481013, 0720482015, 0728201028, 0721451034, 0729202001, 0728202010, 0728202011, 0728227010, 0728227011, 0721451010, 0728202012, 0721476006, 0720461011, 0728227009, 0728201001, 0720461010, 0728227030, 0721376021, 0728202009, 0729228013, 0721451024, 0720481009, 0720483007, 0720483008, 0720483009, 0720481010, 0720483003, 0728226001, 0728126002, 0720461012, 0721376026, 0728101001, 0728101002, 0720384014, 0720384015, 0728101004, 0728101003, 0729203008, 0728101006, 0728227002, 0720481011, 0721352024, 0729230005, 0720462014, 0721352025, 0721376015, 0728101010, 0721502003, 0720384013
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Parcels currently not subject to taxation as of June 29, 2017:
0721476012, 0729227001, 0729227002, 0729226001, 0729226002, 0729204002, 0729227003, 0728126008, 0729203001, 0729203002, 0729203003, 0729201001, 0729502022, 0721376025, 0728126009, 0720502006, 0720462012, 0720481008, 0729202009, 0720462008, 0720459009, 0720460012, 0729202002, 0720462013, 0720459011, 0720460005, 0729202008, 0720462009, 0720459012, 0720502002, 0728502001
2. To establish an operation fund with respect to the Proposed District to be
known as the “Fort Dodge Corridor Self-Supported Municipal Improvement District Operation Fund” (the “Operation Fund”), and levy an annual tax (the “Operation Fund Tax”) upon the property, as defined in the Act (excluding property assessed as residential property for property tax purposes) within the Proposed District (the “Property”) for the purposes of: (a) paying the administrative expenses of the Proposed District, as defined and authorized in the Act, or (b) paying part or all of the maintenance expenses of
“improvements” or “self-liquidating improvements” as defined in the Act, with respect to the Proposed District, for a period of ten years, commencing with the levy of taxes for collection in the fiscal year beginning July 1, 2018, and continuing for nine additional years; at a rate not to exceed $1.00 per thousand dollars of taxable valuation.
3. To establish a capital improvement fund with respect to the Proposed
District to be known as the “Fort Dodge Corridor Self-Supported Municipal
Improvement District Capital Improvement Fund” (the “Capital Improvement Fund”), and levy an annual tax (the “Capital Improvement Fund Tax”) upon the Property, as defined in the Act (excluding property assessed as residential property for property tax purposes) within the Proposed District for the purposes of: (a) accumulating funds for the financing or payment of a part of all of the costs of any “improvement” or
“self-liquidating improvement”, as defined in the Act, with respect to the Proposed District, for a period of ten years, commencing with the levy of taxes for collection in the fiscal year beginning July 1, 2018, and continuing for nine additional years; at a rate not to exceed $1.00 per thousand dollars of taxable valuation.
4. To establish a debt service fund with respect to the Proposed District to be
known as the “Fort Dodge Corridor Self-Supported Municipal Improvement District Debt Service Fund” (the “Debt Service Fund”), and whenever any Self-Supported Municipal Improvement District bonds are issued and outstanding, levy an annual tax (the “Debt Service Fund Tax”) upon the Property, as defined in the Act (excluding property assessed as residential property for property tax purposes) within the Proposed District.
5. To provide by ordinance that the combined rate of the Operation Fund
Tax, the Capital Improvement Fund Tax and the Debt Service Fund Tax to be levied annually, shall not exceed the rate of $1.00 per thousand dollars of taxable valuation.
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6. To disburse annually all amounts collected in the Operation Fund or the
Improvement Fund for one or more of the following purposes:
a) General improvements designed to enhance the appearance of the District, including but not limited to planting trees, improving streets and street right-of-way, sidewalks and curbs and gutters, installing signage, installing fencing and other
amenities, snow removal, weed control, maintenance and other improvements related to physical facilities, including but not limited to streets and public utilities, all of which improvements shall be in accordance with plans prepared by the Executive Board of the Fort Dodge Corridor Self-Supported Municipal Improvement District Coordinating Committee (the “Coordinating Committee”).
b) Activities and events intended to encourage greater patronage of businesses in the District.
7. To provide bylaws for the establishment, governance and operation of the
RESOLUTION NO.____
Declaring intent to take additional action for the establishment of the Fort Dodge Corridor Self-Supported Municipal Improvement District
WHEREAS, the Council of the City of Fort Dodge, Iowa, has heretofore received a Petition pursuant to Chapter 386, Code of Iowa (the “Act”) which requests that the Council establish a self-supported municipal improvement district to be known as the “Fort Dodge Corridor Self-Supported Municipal Improvement District” (the “Proposed District”); and
WHEREAS, the Council referred the Petition to the city Planning and Zoning Commission, which has prepared an evaluative report on the merit and feasibility of the project as proposed in the Petition; and
WHEREAS, pursuant to the Act, the City has given notice of and held a public hearing on the establishment of the Proposed District and has heard all owners of property in the Proposed District or residents of the City desiring to express their views on the establishment of the Proposed District; and
WHEREAS, the Act declares that the Council must wait at least thirty days after the public hearing before it may adopt an ordinance establishing the Proposed District;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fort Dodge, Iowa, as follows:
Section 1. The Council hereby determines that the establishment of the Proposed
District has merit and is feasible.
Section 2. It is the intention of the Council, after waiting at least 30 days from the date of this resolution, pursuant to the Act, to take up and consider an ordinance establishing the Fort Dodge Corridor Self-Supported Municipal Improvement District pursuant to the Act, and providing for the establishment of funds and the levy of annual taxes in connection therewith.
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed.
Passed and approved October 9, 2017.
Mayor Attest:
* * * * On motion and vote, the meeting adjourned.
Mayor Attest:
