AMES — The Ames City Council advanced 10 urban renewal plans Tuesday, aimed at preserving financing opportunities for infrastructure and development before state property tax changes reduce their value.
According to city staff, new tax increment financing areas established after Jan. 1, 2027, will lose access to the school foundation levy, reducing the financial benefit of TIF incentives by approximately 25%.
The plans would help preserve funding options for future development and public improvements, including about $15 million in projects already identified in the city’s five-year capital improvements plan.
The council approved setting public hearings for Nov. 10 and beginning a review process that includes consultation with affected taxing entities and recommendations from the Planning and Zoning Commission.
The city aims to approve the plans and adopt separate TIF ordinances before the end of the year.
City Manager Steve Schainker emphasized that identifying projects now would give the council financing options without committing it to fund every project.
Only projects included in an urban renewal plan can receive TIF funding, requiring staff to anticipate future needs before detailed studies and cost estimates are available.
“So we have to do our best to identify those projects,” Schainker said.
Schainker said private developers would still need individual council approval to receive assistance, allowing the council to negotiate conditions reflecting its priorities.
“I also want to emphasize to you, private developments that are assisting with TIF rebates will require city council approval of individual development agreements,” Schainker said. “Because again, it’s not by right.”
Ames Animal Services Facility
The council also delayed awarding a construction contract for the new Ames Animal Services Facility, directing staff to explore cost reductions and seven proposed additions.
HPC, LLC of Ames submitted the lowest base bid at $5.5 million to renovate and expand the former Eagle’s Loft Daycare at 2715 Dayton Ave., about $59,000 above the available construction budget before optional additions, turning the former daycare center into the new animal services facility.
Assistant City Manager Brian Phillips said potential changes could save $100,000 to $200,000, but staff also wants at least $250,000 in contingency funds for unexpected renovation costs.
The council directed staff to investigate savings for seven alternates, excluding building automation. The remaining options include shade structures, epoxy flooring, patio screens, parking, signage, an entry trellis and a south-side cat enclosure.
Max Rothschild, an Iowa State University professor emeritus of animal science, questioned why features supporting animal welfare were optional.
“I can’t even understand how the shade can be on an alternate thing,” Rothschild said. “You can’t have that.”
He also emphasized cleanable flooring.
“Floors that can stay clean, that improves animal welfare,” Rothschild said.
Dr. Tim Stewart, a shelter volunteer with more than 250 hours of service over two and a half years, supported outdoor cat enclosures, shaded dog exercise areas and additional parking.
“Animal care is an extremely stressful profession,” Stewart said. “Yet shelter staff maintain remarkably positive attitudes, consistently showing appreciation for volunteers while providing the best possible care for their animals under the circumstances.”
Rothschild pointed to selling the existing shelter property as a potential funding source. Phillips said proceeds could replenish the Council Priorities Capital Fund, but the appraisal was lower than expected. The council did not commit future proceeds to the project.
September 2027 remains the projected completion date.
Recycling opt-out program
The council also directed staff to draft recycling opt-out rules that could make approximately 333 alley-adjacent properties eligible, compared with three under earlier criteria. Opting out would eliminate the $7.75 monthly fee after ordinance approval.
Council member Gloria Betcher asked about maintaining rates during the five-year collection contract.
“Setting aside unforeseeable increases in diesel fuel prices, if we have the 333 opt-outs, are we still able to maintain the same monthly rate for our customers for our five-year contract?” Betcher said.
Phillips said lost revenue alone was unlikely to significantly affect costs, but fuel prices could prompt increases.
Bonds
The council approved up to $53.93 million in electric revenue bonds for the first phase of a thermal generation project.
Susanne Gerlach, a managing advisor at PFM Financial Advisors, recommended Robert W. Baird’s bid at approximately 5.12% true interest cost.
“I feel very confident that this was excellent pricing,” Gerlach said.
The council also authorized year-round proactive Campustown code enforcement. Building Official Sara Van Meeteren said all but one of 11 identified property violations had been corrected.
Other actions included directing staff to prepare church signage changes, approving a $182,800 water treatment contract and conditionally approving the Ontario Park and Ontario Townes preliminary plat.