Editor’s Note: This article’s headline was revised to provide clarity on the events that took place at the meeting.
Ames to negotiate with Iowa State University regarding the allocation of Payment In Lieu Of Taxes (PILOT) funds in the event that one of the four original buildings at the Iowa State Center is removed. The decision followed a staff report on CYTown.
The report primarily focused on addressing the financial challenges and competition faced by the Iowa State Center. Notably, the report highlighted the need for substantial improvements, estimated at $100 million, to revitalize the original buildings within the center.
“CYTown will provide an innovative strategy to finance the needed improvements for the original four buildings at the Iowa State Center,” Ames City Manager Steve Schainker said. “Through the financial arrangements with the tenants, ISU will create a revenue stream that can be used to pay the debt needed to fund improvements at the Iowa State Center.”
The comprehensive plan consists of two agreements. The first is a Memorandum of Understanding (MOU) that outlines financial arrangements. The MOU introduces a PILOT system, ensuring compliance with tax regulations while funding improvements. CYTown’s generated revenue will be directed to a Capital Improvements Fund dedicated to enhancing the Iowa State Center over 35 years.
The second agreement outlines the city’s responsibilities in supplying utilities, managing traffic and providing related services. It contains provisions for construction standards, stormwater management and traffic improvements. Iowa State University is tasked with the installation of infrastructure.
The council members agreed to ensure a renegotiation or review of the PILOT funds in the event that one of the original four buildings is removed.
Additional Measures
The Ames City Council opted to explore one new technique for obtaining public feedback, emphasizing engaging with under-represented residents. The council also agreed to gradually implement a “Fare-Free” CyRide system, prioritizing low and moderate-income residents.
Ben D. | Mar 14, 2024 at 6:02 pm
Having watched the replay of the council meeting, this headline is misleading. There are no plans to demolish an ISC building. The council was discussing an agreement with ISU whereby the university would not pay properly taxes to the city on the new CyTown buildings for a number of years and instead put those funds into a capital improvements account for renovating the existing ISC buildings. The council simply asked staff to clarify what would happen to the money IF one or more of these buildings were demolished in the meantime, which was not in the draft agreement as presented.
Hagen | Mar 14, 2024 at 11:04 pm
Thank you, this comment is way more helpful than the article itself in addressing the headline. The article fails to mention why or which building would supposedly be at risk of demolition, and it sounds like really the were just discussing the terms of a TIF agreement. Why the clickbaity headline Iowa State Daily?
Ben D. | Mar 15, 2024 at 9:14 am
Seems the headline has been revised, which is commendable.
Mark | Mar 14, 2024 at 8:04 am
How long before the council specifies which of the four is targeted for demolition? I hope nothing is decided until honesty comes forth!
Ryan Schon | Mar 13, 2024 at 4:46 pm
I didn’t get that headline from reading the article. Which building is the City Council preparing to be demolished?
Kelley | Mar 14, 2024 at 3:54 pm
Bad bad deal for city names and tax payers
JesusSaves | Mar 14, 2024 at 5:38 pm
The Iowa State Center is now under the direction of ISU Athletic Department, Stephens was the only building Ive heard of being demolished, you might email Jamie Pollard for more information.