City looks at TIF to spark South Side resurgence

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.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} As Des Moines grows, city and community leaders are advancing plans to spur economic development south of the Raccoon River.

Following the rollout of the South Side Revitalization Plan, which was compiled in 2006 by residents, business owners, community organizations and other stakeholders, the city has become more aggressive in addressing concerns about zoning enforcement, blight conditions and dilapidated structures.

“I think businesses that aren’t in compliance have been taken on aggressively by community development and zoning enforcement folks,” said Rita Conner, Des Moines economic development coordinator.

Now, by the end of the year, the city hopes to adopt an urban renewal tax increment financing (TIF) district in an effort to reinvigorate the Southeast 14th Street corridor, rejuvenate Southridge Mall and promote new development south of Army Post Road.

Brian Meyer, a Ward 4 city councilman who is looking for resurgence, said an icy economy hasn’t done much to warm redevelopment efforts.

He hopes TIF will spark a fire.

Here’s how it works.

As new development occurs, the taxable value of a property typically increases.

“Tax increment” refers to the difference between what a property’s assessed value was at the time the TIF district was created and its current assessed value. When TIF is implemented, a “frozen” tax base is established. As the assessed value of a property rises, the additional property-tax revenue generated is made available to the city to use in that district.

The additional tax revenue can be utilized to attract more development by way of financial incentives such as grants or forgivable loans. The revenue can also be used for public improvements in the district.

“The idea is to pull the money out of the taxable value of the new parts of Des Moines and (invest it) in older parts of the south side corridor,” Meyer said.

And there are plenty of new parts.

Last summer, the city annexed from Polk and Dallas counties more than 5,000 acres of land, including a 1,800-acre swath, the majority of which is located south of County Line Road near Highway 5.

“The Highway 5 area is basically corn fields right now,” Meyer said. “Those are the places where people are going to develop.”

Meyer has his sights set on the south side’s “SuperBlock,” a 196-acre area bounded by Army Post Road to the north, County Line Road on the south, Southeast 14th Street to the east and Southwest Ninth Street to the west.

Born out of a March 2008 study, the city’s “SuperBlock” concept is intended to encourage the expansion of Blank Park Zoo, promote the preservation of historic Fort Des Moines and consider the needs of other attractions, such as Blank Golf Course, the South Suburban YMCA and Southridge.

A portion of the “SuperBlock” and a portion of the annexed area fall into the proposed TIF district.

Redevelopment is another major ingredient of the initiative, which includes a push to assemble and redevelop vacant lots, blighted properties and underutilized sites along the Southeast 14th Street corridor.

“The goal is to create a plan and a resource that can revitalize areas that are in need, and make the most of opportunities for future development as well,” Conner said, referring to the proposed TIF.

The city is moving forward with a pilot project with hopes of rousing the private sector into action.

In 2008, Phyllis Rogers contacted Meyer to ask if there was any interest in acquiring Yeader Village, a mobile-home park at 4315 S.E. 14th St. The city, which plans to close in May on its purchase of that property, hopes private developers take the hint.

“We plan to work with the development community to generate interest in the area, and hope to see new investment as a result,” Conner said.

“I think if we kick off with one example, if there’s an opportunity for the market to respond on its own, I think there are a lot of sites that could be reused or revitalized,” she said. “We hope private development will respond.

“Some of (the parcels) will have to be reassembled creatively to create new opportunities. That’s a tough task for a developer to take on when they can go other places in the metro and not have that obstacle.”

But long-term residents and established businesses located on or near that main arterial understand Southeast 14th Street’s significance: a gateway to the south side, Conner said.

According to the Iowa Department of Transportation, annual average daily traffic counts on certain portions of Southeast 14th Street, between the Des Moines River and Army Post Road, range from about 24,000 to more than 32,000.

Conner said that gateway factor is a huge draw.

“They are going to come there because of the numbers,” she said of the type of retailers South Side residents would like to see.

A quick drive around three of the community’s major thoroughfares – Southeast 14th Street, Army Post Road and Southwest Ninth Street – reveals an array of strip malls, office buildings, banks, bars, restaurants, churches, convenience stores and other small businesses.

A hearty dose of used-car dealerships and auto-oriented retail establishments also dot the landscape.

But the Revitalization Plan indicated that residents would like a more diverse blend of retail, including the type of coffee shops and bookstores that consumers may find in suburban communities.

Kohl’s and a Super Target are on the wish list.

In the past year, Anytime Fitness and Vision 4 Less each opened a location in or near Southdale Shopping Center, a 260,000-square-foot retail center sitting on 32 acres at 5000 S.E. 14th St.

Josh McNair, a sales associate with Stanbrough Realty Co. LLC, said a retail user has signed a letter of intent to lease a 9,600-square-foot space in the center, which is anchored by a Best Buy and a Home Depot.

“There’s been some activity in that immediate area,” McNair said. “Maybe that will help to spur some confidence in the market.”

Across the street and to the north, Hubbell Realty Co. is busy constructing its Melbourne Apartments, a $10.4 million 84-unit affordable housing project expected to wrap up this summer.

Farther south, at Southeast 14th Street and Diehl Ave., Nelson Development plans to eventually construct a retail center.

According to CB Richard Ellis/Hubbell Commercial’s 2010 Greater Des Moines Market Survey, about 2.8 million square feet of retail inventory permeates the south side, including the mall. In January, the vacancy rate in South Des Moines’ neighborhood and community centers – multi-tenant buildings with small to medium-sized occupants – was 29.3 percent.

About 75 percent of the retail along Southeast 14th Street is “healthy and vital,” Conner said, pointing to Wal-Mart, Menard’s, Home Depot and other big-box retailers that located there during the “good years.”

“Then you’ve got these gaps … vacant sites and vacant buildings and lease space that’s struggling to be competitive.”

In addition to filling those gaps, as the city hones in on enforcing zoning ordinances related to mobile food vendors and used-car lots, the proposed TIF is intended to promote mixed-use, pedestrian-oriented and sustainable development at specific nodes up and down Southeast 14th Street.

And though plans for beautification projects aren’t as extensive as recent improvements to Fleur Drive, Conner said, one goal is to create a more walkable neighborhood with better sidewalks, improved lighting and more landscaping.

“I think we’ve seen the downtown model work so well, in terms of the revitalization,” Conner said, referring to the use of TIF dollars. “It’s kind of just picking up some of those tools and taking them to the sectors that need the shot in the arm.”

According to Des Moines’ 2020 Community Character Plan, increases in the city’s population will likely be concentrated on the south side.

“I think the time for study is going to draw to a close, and hopefully we’ll see more activity,” Conner said.

“Des Moines is an important region and the more we can reach out and kind of embrace these partner communities on the East and Southeast sides, the healthier these sectors are going to be.”

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