HomeMy WebLinkAboutAmendment_#2_Heinz_Rd (1)1
Urban Renewal Plan for the
Heinz Road Urban Renewal Area
Amendment No. 2
June 2020
Amendment No. 1, 2014
Original, 2002
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SECTION 1 - INTRODUCTION
The Urban Renewal Plan for the Heinz Road Urban Renewal Area , as amended, is being
amended to add climate change goals and add a proposed project to be undertaken in the Area.
The Heinz Road Area was originally adopted in 2002 pursuant to resolution 02-195 and
amended in 2014 pursuant to Resolution 14-23 to add a project.
The base valuation of the area will be unchanged by this Amendment.
SECTION 2 – URBAN RENEWAL GOALS AND OBJECTIVES
The Urban Renewal Goals and Objectives previously set forth in the Original Plan and
Amendment 1 remain unchanged by this Amendment. This Amendment No. 2 adds the goal of
reducing carbon emissions by helping users of industrial facilities in the Urban Renewal Area
improve energy efficiency.
In 2007, the City of Iowa City took an important step toward addressing climate change by signing
the U.S. Mayor’s Climate Protection Agreement. In 2008, the Council agreed to participate in the
“Cities for Climate Protection Campaign.” In 2009, the City completed the first greenhouse gas
inventory in the state. The Mayor signed the updated U.S. Climate Protection Agreement in 2014
and the Council set greenhouse gas emissions reduction goals in 2016. In 2017, the City formed
a Climate Action Steering Committee to provide input on the development of a Climate Action
Plan. Comprised of and representing many stakeholders in the community, the Committee sought
and received public input to guide planning efforts. In 2017, Council adopted the Iowa City Climate
Action and Adaptation Plan. The Buildings section of the Action Plan includes among its goals, a)
increasing energy efficiency in businesses and b) increasing on-site renewable energy systems
and electrification. In 2019, Council increased the carbon emission reduction targets and declared
a Climate Crisis.
The average commercial building wastes about 30% of the energy it consumes. By capturing
inefficiencies, users can reduce costs. By reducing energy use, users also reduce greenhouse
gases emitted at power plants (Energy Star, U.S. Environmental Protection Agency). Reducing
greenhouse gases released into the atmosphere is an effective way to stem climate change and
results in a cleaner, healthier environment. The amendment to this plan seeks to assist users
achieve those goals.
SECTION 3 – DESCRIPTION OF THE URBAN RENEWAL AREA
The legal description of the area is attached hereto as Attachment No. 1.
SECTION 4 – AREA DESIGNATION
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This area remains an economic development area, as that term is defined in the Iowa Code
Chapter 403.
SECTION 5 – PROPOSED URBAN RENEWAL PROJECTS
The eligible urban renewal projects under this Urban Renewal Plan include:
Development Agreements
Enter into development agreements with industrial users in the Urban Renewal Area to provide
economic development assistance for projects that include improvements to the facilities making
them more energy efficient. The proposed Urban Renewal Projects contemplated by this
Amendment No. 2 may require evaluation by a qualified third-party engineering firm to determine
and recommend the optimal energy efficiency solutions for industrial companies. Projects may
range from adjustments to existing systems to the installation of new systems. They may include
a change-over from natural gas to electric energy to the installation of solar panels to reduce
carbon emissions.
Project Date Estimated Cost Rationale
Energy efficiency
improvements at
Industrial properties
2020 – FY25 $2,500,000 To reduce carbon
emissions
SECTION 6 – DEBT
1. FY21 Constitutional Debt Limit: $342,894,916
2. Current general obligation debt: $54,850,000
3. Proposed amount of indebtedness to be incurred: Although a specific amount of tax
increment debt to be incurred (including direct grants, loans, advances, indebtedness, or bonds)
for projects over time has not yet been determined, it is anticipated that the cost of the Proposed
Urban Renewal Activities and Proposed Projects identified in Section 5 above will not exceed
$2.6 million. In no event will debt be incurred that would exceed the City’s debt capacity. It is
further expected that loans, advances, indebtedness or bonds to be incurred for the Proposed
Project or subsequent projects, including interest on the same, will be financed in whole or in part
with tax increment revenues from the Urban Renewal Area. The City Council will consider each
request for financial assistance or a project proposal on a case-by-case basis to determine if it is
in the City’s best interest to participate.
SECTION 7 – CONFORMANCE WITH LAND USE POLICY AND ZONING ORDINANCES
The Amendment is consistent with the Iowa City Comprehensive Plan, including the Southeast
District Plan.
SECTION 8 – URBAN RENEWAL PLAN AMENDMENTS
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If the City of Iowa City desires to amend this Plan, it may do so in conformance with applicable
state and local laws.
SECTION 9 – EFFECTIVE PERIOD
This Urban Renewal Plan Amendment #2 will become effective upon its adoption by the City
Council. Notwithstanding anything to the contrary in the Urban Renewal Plan, any prior
amendment, resolution, or document, the Urban Renewal Plan, any prior amendment, resolution,
or document, the Urban Renewal Plan shall remain in effect until terminated by the City Council,
and the use of incremental property tax revenues, or the “division of revenue,” as those words are
used in Chapter 403 of the Code of Iowa, will be consistent with Chapter 403 of the Iowa Code.
SECTION 10 – REPEALER
Any parts of the previous Plan, as previously amended, in conflict with this Amendment are hereby
repealed.
SECTION 11 – SEVERABILITY CLAUSE
If any part of the Amendment is determined to be invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect the validity of the previously adopted Plan as a whole or the
previous amendments to the Plan, or any part of the plan not determined to be invalid or
unconstitutional.
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Attachment #1
Legal Description
Consisting of a tract of land described as follows:
Commencing at the intersection of the northerly right-of-way Line of U.S. Highway 6 and the
easterly right-of-way line of Scott Boulevard located in Section 19, Township 79
North, Range 5 West of the Fifth Principal Meridian, Iowa City, Johnson County, Iowa; said point
of beginning;
Thence, northeasterly and northerly along easterly right-of-way line of Scott Boulevard to a point
on the southerly right-of-way line of the Heartland Rail Corporation;
Thence northwesterly along said southerly right-of way line of the Heartland Rail Corporation to
the most northwesterly point of Lot 4, BDI Fifth Addition;
Thence, southeasterly and then southerly along the westerly property line of Lot 4, BDI Fifth
Addition to the most southwesterly point of Lot 4, BDI Fifth Addition, which is also the most
northwesterly point of Lot 4 Second Addition;
Thence, southerly and then southwesterly along the westerly property line of Lot 4 BDI Second
Addition to the most northwesterly point of Lot 1, BDI Fourth Addition;
Thence, southwesterly along the westerly property line of Lot 1, BDI Fourth Addition to the
intersection of the westerly property line of Lot 1, BDI Fourth Addition and the
northerly right-of-way line of US Highway 6;
Thence, to a point perpendicular with the southerly right-of-way of US Highway 6;
Thence, southeasterly along the southerly right-of-way of Highway 6 to a point
perpendicular to the easterly right-of-way of Scott Boulevard,
Thence, northeasterly to the intersection of the northerly right-of-way of US Highway 6 and the
easterly right-of-way of Scott Boulevard, which is said point of beginning.
(This area has also been referred to as the BDI Industrial Park Area.)
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