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Knoxville

Land Use Strategy for the Veterans District

Prepared for the City of Knoxville

By 571 Polson Developments LLC

January 2019

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Knoxville – Land Use Strategy for the Veterans District – January 2019

Table of Contents

Preface

Introduction

1. Planning Issues 1.1 Development Scale

1.2 Existing Buildings and Infrastructure

1.3 Natural Features

1.4 Historic Recognition

1.5 Market Demand

1.6 Existing Zoning

1.7 Existing Municipal Infrastructure

1.8 The Comprehensive Plan

1.9 Public Sector Interest in The VA Lands

2. Organizing Principles for the Land Use Strategy

3. Land Use Strategy 3.1 Phase 1 Development Area

3.2 Phase 2 Development Area


3.4 General Land Use Plan

4. Implementation 4.1 Government Roles in Developing the VA Lands

4.2 Land Ownership and the Land Use Strategy

4.3 Organizing Principles for a Local Government-Led Implementation Process

4.4 Building Demolition and Removal of Existing Infrastructure

4.5 Rezoning, Subdivision, New Infrastructure, and Sale of the Land

4.6 Concluding Remarks About Implementation

Appendix – Development Potential & Tax Implications

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Preface

In 2017, the General Services Administration (GSA) was given the task of disposing of the former

Veterans Administration (VA) Hospital and associated lands. While the GSA has been progressing

through the disposition process, the future ownership of the VA Lands and buildings has not as

yet been determined. It is within this context, that this Land Use Strategy for the development

of the former VA Lands is offered.

The Land Use Strategy, when considered and approved by City Council, will be used to guide the

future development of the former VA Lands. As such, the Strategy will reside, in the hierarchy of

plans, between the City of Knoxville’s 2017 Comprehensive Plan and its Zoning Regulations.

The Comprehensive Plan is intended to manage the pace, location, and impacts of growth and

development in Knoxville over the next twenty years. The Plan creates a framework to support

Knoxville’s goals, objectives, and policies. The ultimate goal of the Comprehensive Plan is to

ensure the wellbeing of Knoxville residents now and into the future. The Comprehensive Plan

provides the legal basis for the establishment of zoning and subdivision regulations to implement

the plan.

The Land Use Strategy will take guidance from the Comprehensive Plan, while attempting to

address the specific opportunities and challenges of developing the former VA Lands. The

Strategy will address future land use, development, and infrastructure issues at a finer grain than

the Comprehensive Plan might have. The Strategy will recommend policies that can be

implemented through the use of municipal zoning, subdivision regulations, and municipal

infrastructure investment decisions.

Redevelopment of the former VA Lands is expected to occur over a number of decades. The Land

Use Strategy assumes that, over time, redevelopment within the Veterans District will be subject

to the vagaries of the real estate markets. Demand for land for redevelopment will ebb and flow

with the changing real estate cycle. So too, will demand for specific types of land use

development. The Land Use Strategy attempts to respond to this uncertainty by building a strong

infrastructure base to support development as it happens and to offer more land use flexibility

in the latter phases of development in the District.

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Introduction

History of the Former VA Campus

The State Industrial Home for the Blind opened on the site of what would become the VA Hospital

in 1892. In 1900, the facility became the State Hospital for Inebriates, which was a detention and

treatment facility for illicit drug users. This operation closed a few years later and the buildings

sat empty until 1920, when they became a temporary hospital for disabled military veterans. In

1922, the Federal Government acquired the property for permanent use as a veteran’s hospital.

The VA site originally contained 345 acres of land, five brick structures, and several wood frame

buildings. At some point, nearly 200 acres of land were sold, leaving approximately 152 acres of

land on the site today.

The VA began a significant building program in 1922. Additional development occurred over time

in relation to need. The capacity of the VA Hospital peaked at 1,600 patients during World War

II, declining thereafter.

In 2009, the VA closed the hospital, transferring the remaining patients to other facilities. At the

time of its closure, the VA Hospital comprised approximately 750,000 square feet of space

contained in 39 buildings.

The VA continued to operate an out-patient clinic in the former Administration Building until

2017. In that year, the out-patient clinic relocated to a new building in Knoxville. The GSA was

then assigned the task of disposing of the Federal Government’s assets.

The Former VA Lands as they Exist Today

The former VA Lands currently remain in the ownership of the Federal Government, with the GSA

acting as an agent for the VA in the disposition process.

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The Veterans District

The grounds of the main campus continue to be maintained, but all the buildings have been

abandoned. Except for the former Administration Building which was abandoned in 2017, the

buildings have not been heated or maintained since their closure in 2009.

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The VA operated its own infrastructure (i.e. roads, water, sewer, waste water treatment, power,

district heating, etc.) separate from the municipality. The infrastructure is also now abandoned.

Access to the VA Lands is only partially restricted. They are currently used by many Knoxville

residents for walking and jogging.

Opportunities and Challenges

The closure of the former VA Hospital negatively affected the local economy, resulting in losses

in employment and local spending. Beyond this, Knoxville lost a part of its identity as the VA

Hospital had been part of its history and culture for nearly a century.

The disposition of the VA Lands presents both a challenge and an opportunity for Knoxville. The

VA Lands constitute the largest and most developable parcel within Knoxville’s city limits. As

such, the Lands represent a significant reserve for future urban development. Disposition of

the VA Lands also provides opportunities for public agencies to acquire lands for future public

use.

Future development of the VA Lands, however, will not be easy. The following Section discusses

the many challenges that must be addressed for development to proceed.

1. Planning Issues

Various issues will influence the proposed Land Use Strategy. Among these are:

• The scale of the development to be planned for;

• The market demand for real estate development in Knoxville;

• The condition of existing buildings and infrastructure on the VA Lands;

• Natural features affecting development of the VA Lands;

• Public sector interest in the VA Lands;

• Existing planning policy and zoning for the VA Lands;

• The role of local government in the future development of the VA Lands; and

• The need for senior government assistance.

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For the Reader’s benefit, four Character Areas1 of the VA Lands will be referred to in this

Section, including:

• The Main Campus – which includes all the VA Lands North of Pleasant Street and East of

Independence Drive

• The Southern Lands – which includes all the VA Lands South of Pleasant Street;

• The West Central Lands – which includes all the VA Lands North of Pleasant Street,

between Independence Drive and 118th Place; and

• The Western Lands – which includes all the VA Lands North of Pleasant Street and West

of 118th Place.

Each character area has different physical attributes, is separated from the others by identifiable

roadways, and has served different purposes during the life of the VA Hospital in Knoxville. For

example:

• The Main Campus (70 acres) contains the overwhelming majority of the former VA

Buildings and built space;

• The Southern Lands (7 acres) contain six vacant residential buildings, including a former

nurse’s residence, a single- family home, and four duplexes.

• The West Central Lands (35 acres) are mostly undeveloped but contain the abandoned

waste water plant and several smaller storage buildings. These lands also surround the

historic Schotterback Cemetery.

• The Western Lands (40 acres) are entirely undeveloped. They are bisected by a gulley

with a small creek and pond.

1 Each Character Area represents a legal parcel in place as of November 2018. The GSA has proposed creating new legal parcels for the purpose of disposition and is currently in the process of doing so.

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1.1 Development Scale

The VA Lands are by, any order of magnitude, the largest future development parcel in Knoxville.

As such, they present both a challenge and a great opportunity for the city of Knoxville.

Based upon current trends, full development of the VA Lands can be expected to take several

decades. Planning for such an extended development timeline will require both:

• A strong development concept that is capable of directing land use and infrastructure

investment, as well as

• A land use strategy that is flexible enough to accommodate changing market demand.

Phasing of development should be designed to ensure that sufficient land is available to meet

market demand, without overextending municipal infrastructure investment. Ideally, a version

of ‘just-in-time’ infrastructure development is called for.

While specific land uses can be identified in the first phase of development where the current

market demand is more readily apparent, a more flexible approach to preferred land uses in

subsequent phases would be appropriate. Providing such flexibility, within the bounds of

planned transportation and infrastructure capacity, should allow development in subsequent

phases to adjust to changing market demand.

There is also a need to identify a range of acceptable interim uses for subsequent development

phases. In this way, these lands can be reasonably productive in the period preceding

development.

1.2 Existing Buildings and Infrastructure

Development of the VA Lands will not, however, be easy. The 750,000 SF of abandoned

structures and buildings have deteriorated considerably over the last nine years. Their size and

condition,2 in a real estate market as small as Knoxville’s, eliminates their potential for renovation

and reuse. The demolition costs alone represent a significant impediment to the prospects for

redevelopment.

2 As described in a Phase II Environmental Site Analysis from 2011, almost all of the buildings contain asbestos, have incurred water damage, and contain mold. Some are also considered to be structurally unsound. If anything, their condition has deteriorated in the 7 years since the ESA report was written.

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The Main Campus

A similar situation exists with the existing infrastructure. The VA operated its own infrastructure

system, separate from the City of Knoxville. Now abandoned, the existing infrastructure does

not meet modern municipal standards and was designed to serve buildings that are unlikely to

be retained. Existing support facilities such as the waste water treatment and district heating

plants will not be reused. The existing water, sanitary, storm sewer, and district heating lines will

need to be removed prior to redevelopment.

Preliminary cost estimates for demolition of all the buildings, removal of asbestos contained in

them, and removal of the existing infrastructure run as high as $8 M, or more than $50,000 per

acre. These costs significantly exceed estimates of the current market value of the land.

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1.3 Natural Features

The Main Campus and the Southern Lands were developed with buildings (i.e. the Hospital

Campus and the Residences respectively). The West Central and Western Lands accommodated

less intensive forms of development, such as a golf course.

The most natural feature remaining is the gulley that bisects The Western Lands. A small creek,

pond, and natural vegetation are located there. At one time the gulley was used as a picnic or

recreation area by the Hospital.

The Western Lands

Any future development of the Western Lands is most likely to occur above the gulley, adjacent

to the adjoining streets (i.e. along Pleasant Street, 118th Place, or McGregor Road).

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The 2015 Knoxville Trails Master Plan proposes the development of a trail through the gulley.

Obtaining access easements for the trail and the gulley is one way of preserving the gulley;

another could involve municipal ownership.

Drainage

Portions of the VA Lands will require the assistance of a sanitary lift station prior to development.

Preliminary estimates suggest that the lift station could cost as much as $1.1 M. The affected

area is shown in blue in the following diagram. The unaffected area, which will not require

support from the lift station, is shown in pink.

It would be prudent to assign the affected areas to a subsequent development phase(s),

particularly given that they are located the farthest away from existing urban development. In

doing so, infrastructure costs in Phase I can be minimized (by not requiring an immediate

investment in the lift station) and Phase I lots can be brought to market quickly and more easily.

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1.4 Historic Recognition

The Knoxville Veterans Administration Hospital Historic District is a nationally recognized historic

district. It was listed on the National Register of Historic Places in 2012. National historic

districts recognize a group of buildings, properties, or sites as being historically or architecturally

significant.

The GSA has commenced discussions with the State Historic Preservation Office (SHPO) in Iowa

regarding the future status of the historic designation. These discussions are expected to occur

for some time and, depending upon their outcome, may influence the developability of the VA

Lands.

While it is unlikely that the GSA will be instructed by SHPO to place covenants restricting the

demolition of all of the VA buildings on The VA Lands,3 efforts to commemorate the history of

the VA Hospital would be appropriate as redevelopment proceeds. Such commemorative

elements might possibly include:

3 A decision to include covenants restricting the demolition of the buildings, for example, could lead to the economic sterilization of the site and its continued physical decline, as historic rehabilitation and reuse of the existing buildings would not be economically feasible in the current and foreseeable marketplace.

https://en.wikipedia.org/wiki/Historic_districts_in_the_United_States

https://en.wikipedia.org/wiki/Historic_districts_in_the_United_States

https://en.wikipedia.org/wiki/National_Register_of_Historic_Places

https://en.wikipedia.org/wiki/Property

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• Retention of portions of the existing street system, particularly the streets running

north/south from Pleasant Street (i.e. Independence, Freedom, and Veterans), their

connecting east/west road (i.e. Liberty Lane) and the roundabout (i.e. at the intersection

of Veterans Boulevard and Liberty Lane);

• Installation of a commemorative feature north of the roundabout which is located at the

intersection of Veterans Boulevard and Liberty Lane;

• Use of names for new streets within the Main VA Campus that are complementary to the

existing street names (e.g. Independence, Freedom, Liberty, and Veterans);

• Retention or recreation of a semblance of the arboreal nature of The Lawns, along

Pleasant Street and on both sides of Veterans Boulevard.

• Preservation of the oldest Burr Oak located on the Southern Lands.

The City of Knoxville is currently engaged with the GSA and SHPO regarding the status of the

National Historic District designation. The disposition of the designation and the implications for

development of the VA Lands will not be fully known until that process is completed.

1.5 Market Demand

Knoxville reached its peak population of 8,232 in 1990. Its population has since declined to an

estimated 7,241 in 2016. This represents a 12 percent decline over a 26-year period, or a

population loss of approximately 0.5% per year.

While part of the population decline may be attributed to the closure of the VA hospital,

Knoxville’s decline also follows state-wide trends in Rural Iowa. Any plans to redevelop the VA

Lands must, therefore, assume that these 152 acres will develop over an extended period of time.

Notwithstanding the population declines of recent years, Knoxville needs developable land to

accommodate future urban growth. Very few lots are currently available for construction in the

two newest single-family residential subdivisions (i.e. Westridge and Deerfield) and, as yet, no

new residential subdivision proposals have been brought forward for the City’s consideration.

There also is a shortage of serviced multi-residential development sites within the City limits.4

4 The Knoxville Economic Development Corporation’s search for a suitable site for multi-residential development in recent years has, for example, as yet been to no avail. Potential apartment development parcels are few in number, some of them are unavailable for sale, and others have significant physical constraints to their development.

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With new developable land available, increased housing construction in Knoxville becomes a

distinct possibility.

The Housing Market in Marion County

The Marion County Development Commission published the “Comprehensive Housing Needs

Analysis for Marion County, Iowa,” in March 2016.

Notable findings regarding Marion County include the following:

• Marion County had 33,309 people living in 12,723 households. The County’s population

is expected to grow by 1,107, or 3.3 percent, between 2010 and 2020. The number of

households is expected to increase by 625, or 4.9 percent, during the same period.

• Marion County’s population is aging. The 65 to 74 age cohort is projected to increase by

610 people, or 19.8%, between 2015 and 2020. The 74 to 84 age cohort is also expected

to increase significantly, i.e. by 15.8%, during the same period. The aging population has

implications for the future types of housing in demand.

• Between 2010 and 2014, Marion County housing development averaged approximately

118 units per year (i.e. 97 single family homes and 21 multi-family units). Building

construction has fluctuated considerably in recent years. Construction peaked in 2000

with 238 new units and “bottomed out” during the recession at 38 new units in 2011.

• Demand for new general occupancy housing in Marion County between 2015 and 2025 is

projected to be 1,372 units, divided into the following categories:

- For sale single-family 566 units

- For sale multi-family 176 units

- Market rate rental 303 units

- Affordable rental 175 units

- Subsidized rental 156 units

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• Demand for new seniors housing by 2020 is projected to be 855 units as shown below:

- For sale active adult 97 units

- Active adult market rental 185 units

- Active adult affordable 269 units

- Active adult subsidized 44 units

- Congregate, Assisted, Memory 260 units

The Housing Market in the City of Knoxville and the Knoxville Submarket

Notable findings regarding the City of Knoxville and the Knoxville Submarket5 include the

following:

• The City of Knoxville’s population declined by 418 people, or 5.4%, from 7,731 in 2000 to

7,313 in 2010.

• The Knoxville Submarket, however, was essentially static with its population growing

marginally from 11,890 to 11,917 during the same period.

• The number of households in the City of Knoxville declined marginally (i.e. by 22 units),

from 3,191 in 2000 to 3,169 in 2010.

• The Knoxville Submarket, however, grew by 118 households, or 2.5%, from 4,724 to 4,842

during the same period.

• The City of Knoxville averaged 6 new single-family homes and 7 new multi-family units

per year between 2000 and 2016. New housing construction experienced a significant

decline during the recession years but has increased in recent years.

• In 2013, on average, 2,726 people commuted to work in Knoxville from outlying areas,

while 2,235 Knoxville residents left to work in other centers. The difference has 491 more

people commuting to work in Knoxville than leaving it for work elsewhere.

• Demand for new general occupancy housing in the Knoxville Submarket between 2015

and 2025 is expected to be 382 units, including:

5 The Knoxville Submarket includes the cities of Knoxville and Harvey, as well as Knoxville, Washington and Clay townships.

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- For sale single-family 123 units

- For sale multi-family 53 units

- Market rate rental 82 units

- Affordable rental 62 units

- Subsidized rental 62 units

• Demand for new seniors housing in the Knoxville Submarket between 2015 and 2025 is

expected to be 327 units, including:

- For sale active adult 30 units

- Active adult market rental 90 units

- Active adult affordable 104 units

- Congregate, Assisted, Memory 103 units

Commercial Market Demand

While it can be expected that the principal future use of the VA Lands will be for residential

development, some interest in retail commercial development can be expected to occur over

time, especially as the residential areas develop.6 It would be appropriate to identify some future

retail commercial development sites in the land use strategy.7 The logical locations for retail

commercial development would be along the north side of Pleasant Street, west of

Independence Drive.

The advent of the internet has revolutionized the possibilities for home-based work and for

satellite business centers. More and more people work from their homes on a full-time basis.

Others work from home at least part of the time. One hybrid form of work involves satellite

business centers, in which individual offices or work stations are rented to owners and employees

of different companies. Opportunities to accommodate these various versions of web-based

employment should be accommodated in the Veterans District.

6 The phrase “retail follows rooftops” is often used to describe how new retail commercial opportunities are created as the population (and the disposable income) within adjacent residential areas increase. 7 This is one area where land use flexibility could be appropriate. The land use strategy could identify available sites for potential commercial development, while considering other alternative land uses if opportunities for commercial development on those sites do not materialize.

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Similarly, attitudes toward urban planning and the separation of uses have changed considerably

over the last two generations. Urban planners now call for a finer mix of residential and

commercial uses, whether within neighborhoods or within buildings. Mixed use development is

viewed as a means of reducing reliance upon the automobile, encouraging walking, and

increasing neighborly interactions and neighborhood aesthetic variety. Opportunities to

accommodate a greater mix of commercial and residential uses in the Veterans District should

also be explored.

1.6 Existing Zoning

The VA Lands are currently zoned as follows:

• The Main Campus is zoned R-2;

• The Southern Lands are zoned R-3; and

• The West and West Central Lands are zone A-1.

The R-2 district allows for the development of single-family homes and duplexes. The R-3 district

allows for the development of town houses and apartments. The A-1 district allows for

agricultural uses and some other low intensity land uses; it is often used as an urban development

reserve or ‘holding district.’

The current zoning has had no influence over the development of The VA Lands to date, because

they are owned by the Federal Government. As a senior government, the VA has the right to

develop and use the VA Lands as it pleases. When these lands are transferred to a local owner,8

however, the existing zoning rules will be activated.

The existing zoning is not necessarily appropriate to guide the future development of the VA

Lands. The Land Use Strategy should recommend zoning districts to guide future development

in a manner which best achieves the objectives of the Comprehensive Plan and the Strategy.

1.7 Existing Municipal Infrastructure

Providing new infrastructure to serve the VA Lands will, to a large extent, involve extending

existing municipal roads and services.

8 Private, non-profit, or municipally-owned properties would be subject to Knoxville’s zoning regulations.

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1.7.1 Transportation Access

East-West Primary Roads

W Pleasant Street (Highway 92/Business Route 5) currently serves as a primary east-west road in

the City. McGregor Road also provides east-west access along the northern edge of the VA Lands.

Traffic should be expected to increase on both roads as redevelopment occurs.

North-South Primary Roads

118th Place is currently the only north-south road in operation at this time.

Retention of Independence Drive, when combined with Willets Drive to the south, will create

another north-south access road.

The Primary Road Network

Assuming that the local street system can be determined as part of the detailed planning for each

phase of the development, a primary access network emerges that is shown in the following

diagram.

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Local Access though the Main VA Campus

Retention of Liberty Lane will create a local east-west access road through the Main VA Campus.

The addition of a second local east-west access north of Liberty Lane should be anticipated. Liberty Lane currently curves around Young’s Park and continues back into the Main VA Campus. The

continuation of this ‘loop road’ under another name to reduce visitor confusion is recommended. One

possible street name would be Constitution Avenue.

Retention of Freedom Drive and Veterans Boulevard would offer local north-south access

through the Main VA campus. Their extension north of Liberty Lane should also be anticipated.

Retention of Young Street, which bisects Young’s Park on an E/W axis, is also a possibility. Its

continued use would provide local access to Lincoln Street for the eastern portions of the Main

VA Campus area.

An emerging local street network within the Main VA Campus area is depicted in the following

diagram.

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1.7.2 Utilities

Replacement of the existing services on the VA Lands will involve extensions of the existing

municipal system.

Existing utility services are provided adjacent to the VA Lands to the East. Existing water mains

run:

• Along Pleasant Street eastward until Independence/Willets Drive; and

• Along 118th Place, northward from Pleasant Street.

An existing sanitary line runs through the gulley in a generally N/S direction.

A location for the sanitary lift station has been suggested south of Pleasant along the path of the

creek/gulley.

New water and sanitary mains would be added to unserviced areas along Pleasant Street, with

extensions northward generally following the pattern of N/S streets (e.g. Independence Drive

and Veterans Boulevard, etc.). Additional E/W connections would be added as needed; again,

generally following the E/W street pattern (e.g. Liberty Lane, Constitution Avenue, etc.).

Young Street can also be used for some Phase I utility connections.

1.8 The Comprehensive Plan

The Knoxville Comprehensive Plan was adopted by City Council in December 2017. The

Comprehensive Plan is intended to “manage the pace, location, and impacts of growth and

development in Knoxville over the next 20 years (p.3).”

As part of its economic policy recommendations, The Comprehensive Plan calls for the City of

Knoxville to:

“To Coordinate with Veterans Affairs and General Services Administration to obtain the

Knoxville Campus for community growth opportunities (p. 135).”

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The Comprehensive Plan, however, provides little specific direction for the future development

of The VA Lands.9

Smart Planning Principles

The Comprehensive Plan does call for the use of Smart Planning Principles in planning for urban

development (p. 9). The Iowa Smart Planning Principles were signed into law on April 26, 2010,

as one of the three primary components of the Iowa Smart Planning Act contained in State Code

Chapter 18B; Land Use- Smart Planning.

These Principles must be considered and may be applied when local governments and state

agencies deliberate all appropriate planning, zoning, development and resource management

decisions.

Application of these Principles is intended to produce greater economic opportunity, enhance

environmental integrity, improve public health outcomes, and safeguard Iowa’s exceptional

quality of life. Successful integration of the Principles also addresses the need for fair and

equitable decision-making regarding the growth of communities and can produce cost savings

regarding the provision of public services.

Smart Planning Principals include:

• Collaboration;

• Efficiency,

• Transparency and Consistency;

• Occupational Diversity;

• Revitalization;

• Housing Diversity;

• Community Character;

• Natural Resources;

• Agricultural Protection;

• Sustainable Design; and

• Transportation Diversity.

9 At the time that the Comprehensive Plan was adopted, the Federal Government’s plans for the disposition of The

VA Lands was uncertain. The Plan’s limited references to The VA Lands reflect, in part, that uncertainty. It also

reflects the senior position that the Federal Government has in planning related matters regarding property that it

owns.

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Relevant Comprehensive Plan Policies

The Comprehensive Plan does, however, offer general policies for consideration in the

formulation of the Land Use Strategy for the VA Lands. Among these policies are:

Recreation and Cultural Amenities (p.73)

- Partnering with private and public entities to coordinate and help implement the

Knoxville Trails Master Plan; and

- Maintaining natural topographical features and drainage ways in a manner which

minimizes stormwater runoff erosion issues.

Housing Policies (p. 90)

- Promoting entry level and young family housing opportunities;

- Encouraging the development of housing choices to fit retirees and the elderly;

- Supporting development of a variety of housing types;

- Ensuring that Knoxville provides diverse housing type options in relation to lot size,

price point, density, and reuse of deteriorated areas;

- Ensuring adequate infrastructure capacity for new subdivisions and infill projects; and

- Maintaining avenues of investment to ease the housing development process.

Economic Development Policies (p. 111)

- Providing opportunities and incentives for development that will encourage economic

stability and strengthen the overall tax base of the City;

- Identifying space/locations for new commercial and/or industrial businesses;

- Recruiting and encouraging additional small businesses;

- Continuing to support and promote the Knoxville Raceway; and

- Promoting and encouraging new middle-income housing options to support

workforce developments.

Land Use & Growth Management (p. 135)

- Implementing a city-wide land use pattern that ensures compatible and

complementary relationships between land uses;

- Coordinating with utility providers to properly plan and budget for public

improvements to support growth; and

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- Ensuring that development is designed in a manner that identifies the infrastructure

of adjacent development and provides continuation and connectivity for community

growth opportunities.

1.9 Public and Non-Profit Agency Interest in The VA Lands

The Knoxville Community School District and the Marion County Fair Board have expressed

interest in obtaining some of The VA Lands for public use. The Knoxville Economic Development

Corporation (KEDC), a private nonprofit development corporation, has also expressed an interest

in obtaining some of The VA Lands for multi-residential development. These interests will be

discussed as follows:

The Knoxville Community School District has expressed an interest in acquiring land for

recreational play fields. The exact amount of land required is as yet unknown but could be in the

15 acres +/- range. The most likely location for the play fields would be on the West Central

Parcel, which is approximately 35 acres is size.

The West Central Lands

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The Marion County Fair Board has expressed an interest in acquiring approximately 9 acres

adjacent to the Raceway and Railway. While the Fair Board’s primary interest is in obtaining land

for additional parking, it may retain and use some of the buildings within the identified area and

may develop other related uses.

Lands of Interest to the Fair Board

The Knoxville Economic Development Corporation (KEDC) has expressed an interest in acquiring

land on the South Side of Pleasant Street for townhouses and apartments.

The Southern Lands

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The Land Use Strategy should take into consideration the expressed interests of the Community

School District and the Fair Board. The Strategy, in reviewing the most appropriate locations for

multi-family housing, should also consider the expressed interests of KEDC.10

2. Organizing Principles for the Land Use Strategy

The Organizing Principals for the Land Use Strategy should be that:

1) The principal land use be residential;

2) Opportunities for commercial and mixed-use development be provided for;

3) Public uses be provided for based upon both local and civic needs;

4) A wide range of housing types, appealing to a diversity of households and household

incomes, be provided for in the residential areas of the District;

5) Steps be taken on site to commemorate the history of the VA Hospital in Knoxville;

6) Steps be taken to retain and enhance existing natural areas;

7) A phasing plan be formulated to ensure that investments in infrastructure are made in

an efficient manner; and

8) The Land Use Strategy be presented in detail sufficient to guide future development but

with the flexibility, especially in subsequent development phases, to adapt to changing

market conditions.

10 The Comprehensive Plan recommends, as an action step, that the City “support Knoxville Economic Development Corporation and other public/private partnerships to help purchase property for residential housing development (p. 91).

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3. Land Use Strategy

Three development phases are proposed. They are show in the following diagram and described

as follows:

Development Phases

Phase 1 is the area available for immediate development. It is located on either side of

Pleasant Street, and east of Freedom Drive. Phase I contains the portions of the VA Lands

that do not require construction of a lift station prior to their development.

Phase 2 is the second development area. It is located on either side of Pleasant Street,

between Independence and Freedom Drives, and runs north to McGregor Road.

Phase 3 should be considered as an area for long term development. It is located west of

Independence Drive. Planning for interim use of the Phase 3 lands is recommended given

the expected development time frame.

Land use and development strategies for each phase are offered as follows.

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Development can proceed in Phase 1 areas without the assistance of a sanitary lift station. While

some demolition of existing buildings and the removal of existing infrastructure is required,

comparatively speaking, the extent of the work is limited.11

3.1.1 Phase 1 Land Use

The land use concept for the Phase 1 area involves:

A) Multi-family housing development, south of Pleasant Street;

B) Single-family housing development, immediately north of Pleasant Street; and

C) Multi-family housing development, possibly including senior citizen housing, adjacent to

Young’s Park.

Phase 1 Development Areas

11 Demolition in Phase 1 areas could occur without negatively affecting the maximum available Brownfield/Grayfield Tax Credits. Application for the Credits, by a nonprofit development entity, could still achieve the $1 M maximum award through a Phase 2 Development Area application.

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3.1.2 Phase 1 Zoning

Use of the R-5 Planned Unit Development District with R-3 guidelines for Development Areas A

and C, and R-1 guidelines for Area B, would be appropriate. The R-5 Residential PUD designation

could be used to provide additional development flexibility in adapting to lot configurations

imposed by the retention of the historic streets.

3.1.3 Phase 1 Lot Configurations

Potential lot configurations vary considerably among the three Phase I Development Areas:

Phase 1 - Development Area A

The land in Development Area A has a frontage along the south side of Pleasant Street. It has a

depth of approximately 250’. This depth would allow for the development of either:

• Single-loaded apartments that face Pleasant Street and have parking in the rear; or

• A double-loaded townhouse development accessed by a private road in the middle of

the property;

Either type of development would be permitted in this Development Area if R-3 guidelines were

applied. As many as 32 townhouses or 64 apartment units could be accommodated in this

Development Area. The following photograph provides an example of the type of town housing

that could be built facing Pleasant Street in Development Area A.

2-Story Town Housing Project

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Phase 1 - Development Area B

The lands in Development Area B have frontages on both sides of Veterans Boulevard and one

side of the current location of Freedom Drive. They also flank Pleasant Street and Liberty Lane.

Veterans Boulevard

As part of an effort to commemorate the history of the VA Campus, it is proposed that:

• Veterans Boulevard be converted from its existing local street to a true ‘boulevard’ with

three rows of trees – one running along the length of the boulevard, and one on each side

of the street;

• The roundabout that terminates Veterans Boulevard at Liberty Lane be retained; and

• A commemorative feature be installed on a small public green space immediately north

of the roundabout.

Boulevard With Three Rows of Trees

Single Family Development on Veterans Boulevard

The East Side of Veterans Boulevard would have a N/S frontage of approximately 385 feet and

an E/W depth of approximately 200 feet after land for the boulevard is taken. The dimensions

31


of this area lend themselves to the creation of deep single-family lots fronting Veterans

Boulevard, with rear access provided from a future paved N/S alley located near the East property

line. Larger front yards (e.g. 40 feet deep) could be provided to retain some of the character of

the original VA Lawns.

Because their garages would be provided off the alley, a pattern of narrower lot widths (e.g. 50

feet, which could accommodate a 36-foot wide house and two, 7-foot side yards) is proposed.

Slightly wider corner lots (e.g. 60 feet) are recommended. Construction of two-story, brick-faced,

houses along Veterans Boulevard as depicted in the following photograph would also assist in

reflecting some of the original character of the VA Campus buildings.

Two Story Brick House with Rear Garage Access

A similar subdivision pattern could be provided on the west side of Veterans Boulevard; although

in this case, the lots need not be as deep.

This lot configuration can accommodate 14 single-family homes, 7 each on either side of Veterans

Boulevard.

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Single Family Development West of Veterans Boulevard

The remainder of Development Area B would also have a 385 feet N/S frontage, with

approximately 560 feet of flankage on Pleasant Street and Liberty Lane. Single-family housing

development in this area can return to the more contemporary pattern of wider lots (e.g. 60’

wide interior and 70-foot-wide corner lots), with attached street-accessed garages. Lot depths

could be reduced to as little as 100 feet. One story housing, as depicted in the following

photograph would likely be the norm.

Harlan Street Infill Housing

Two N/S streets could be included in the area west of Veterans Boulevard, one of which can

reacquire the name, Freedom Drive. The other street could be given a complementary name,

such as Justice Drive.

24 single family lots could be created on these two streets, 6 on each side of the streets.

Phase 1 - Development Area C

The lands in Development Area C are located east of Veterans, adjacent to Young’s Park. The N/S

dimension is approximately 730 feet, while the E/W dimension is approximately 625 feet. The

area is divided into two portions by Liberty Lane, with a narrow development strip on the south

side of Liberty and a much larger developable area on its north side. Townhouses and duplexes

33


would be appropriate for the south side of Liberty Lane, while a more comprehensive planned

unit development encompassing either townhouses or apartments would be appropriate on the

north side.

This Development Area, with its location adjacent to Young’s Park and direct access to Lincoln

Street, would be a good location for seniors housing. The following photograph provides an

example of the type of apartments that could be built in Development Area C.

Two Storey Seniors Apartment Complex

The following diagram shows how the entire Phase I Area could be developed.

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Phase I Development Concept

35



Phase 2 development must occur after the construction of the sanitary lift station. Extensive

demolition of existing buildings and the removal of existing infrastructure is also required.


The land use concept for the Phase 2 area involves:

A) Multi-family housing development, south of Pleasant Street;

B) Single-family housing development, immediately north of Pleasant Street;

C) Multi-family housing development between Liberty Lane and Constitution Avenue; and

D) Marion County Fair/Raceway uses north of Constitution Avenue.


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Use of the R-5 Planned Unit Development District with R-3 guidelines for Development Areas A

and C, and R-1 guidelines for Area B, would be appropriate.

If the Marion County Fair Board assumes possession of Development Area D, an appropriate

zoning designation would be C-5 Planned Unit Development, with guidelines that could be

written to accommodate the County Fair/Raceway uses that they would require.

If Development D is not acquired by the County Fair Board, R-5 Planned Unit Development would

be an appropriate zoning for the Development Area, possibly with R-3 guidelines.

3.2.3 Phase 2 Lot Configurations

Potential lot configurations vary considerably among the four Phase 2 Development Areas:

Phase 2 -Development Area A

The land in Development Area A has a frontage along the south side of Pleasant Street. It has a

depth of approximately 250 feet.

A continuation of the multi-family development patterns proposed in Phase 1 – Development

Area A, is proposed (i.e. either single-loaded apartments that face Pleasant Street, or double-

loaded townhouse developments that are accessed by an internal E/W road).

Either type of development would be permitted in this area if R-3 guidelines were applied.

Phase 2 - Development Area B

The lands in Development Area B have frontages on the east side of Independence Drive and the

west side of Freedom Drive. They also flank Pleasant Street and Liberty Lane.

A continuation of the single-family development patterns proposed in Phase 1 – Development

Area B, west of Veterans Boulevard is proposed (i.e. 60-foot wide single-family lots with front

drive accessed garages on either existing or newly developed N/S streets).

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Phase 2 - Development Area C

The lands in Development Area C are located between Liberty Lane and the proposed

Constitution Avenue, and between the Veterans Boulevard roundabout and Independence Drive.

Combinations of single family, duplex, town homes, and apartment dwellings can be anticipated,

the exact mix of which would likely be based upon future market demand. Local access within

the Development Area would be designed to accommodate that mix of uses.

In general, it would be reasonable to expect that lower density housing forms would be

developed along Liberty Lane (i.e. facing the adjacent Phase I single family areas) and higher

density housing forms would be developed along Constitution Avenue (i.e. facing the Marion

County Fair/Raceway lands in Phase 2 Development Area D).

The possible inclusion of office or other lower-intensity commercial uses, perhaps along

Independence Drive, should also be provided for in the zoning guidelines.

Phase 2 - Development Area D

The Marion County Fair Board will be preparing a concept for the use of Development Area D, if

they acquire the land. It is anticipated that they will keep the former laundry building, reuse the

largest of the existing parking lots, and demolish many of the smaller buildings. Primary access

to the property will be from Independence Drive and the new Constitution Avenue.


Phase 3 is expected to contain the last of the VA Lands to be developed. As such, its future is

most dependent upon the vicissitudes of the real estate marketplace.


Phase 3 is divided into two Development Areas, which are described as follows:

A) Which includes the gulley, creek, and pond; and

B) Which includes the remainder of the Phase 3 Development Area.

Development Area A is to be preserved either as municipally-owned land, or under private

ownership with protective easements in place.

38



Development Area B can accommodate a range of different uses in any number of different

mixes. For example:

• The north side of Pleasant Street across from Graceland Cemetery offers the best location

for future commercial development;

• The west side of Independence Drive offers the best location for community playfields, if

the Community School District intends to acquire land for such purposes; and

• All of the Development Area B lands are capable of accommodating some form of

residential development, the type and density of which would most likely depend upon

future market demand.

It would be inappropriate at this time to identify the best combination of uses for this phase of

development. Consideration of future land use in Phase 3 should occur as Phase 2 development

nears completion.

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The Phase 3 lands are currently zoned A-1 Agricultural. This district is often used as an urban

reserve or holding district. Rezoning to a more appropriate district (e.g. R-5 or C-5 with

guidelines) would be expected to occur as market demand warrants.

3.3.3 Phase 3 Lot Configuration

Delineation of development areas within Development Area B should similarly occur as market

demand warrants.

3.4 General Land Use Plan

The general land use concept that emerges in the Land Use Strategy is depicted in the following

diagram.

General Land Use Concept

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4. Implementation

4.1 Government Roles in Developing the VA Lands

4.1.1 Traditional Local Government Roles

The primary role in shaping the direction of urban development in Knoxville rests with the

municipality. The City of Knoxville through its Comprehensive Plan has established a framework

for future development, which can be implemented through its Zoning regulations, public

infrastructure investment decisions, and the development approval process.

Some municipalities take additional steps to encourage development. Examples of these more

pro-active approaches include:

• Establishing property tax abatement policies for new development;

• Creating tax increment financing (TIF) districts to assist in land servicing; and

• Offering grants or other incentives to developers to encourage particular types of

investment (e.g. historic façade rehabilitation).

The City of Knoxville recently expanded an urban renewal district to include the VA Lands, which

would allow them to utilize tax increment financing in support of redevelopment in the Veterans

District.

4.1.2 More Pro-Active Local Government Roles

In some instances, municipalities may also become more directly involved in the development of

land and housing. Those municipalities that choose this route, often do so by providing financial

support to non-profit development corporations (i.e. local economic development or community

development corporations). Municipalities may utilize wholly owned public nonprofit

corporations or, more often in Iowa, contract with private nonprofit corporations using 28E

Agreements.12

12 The basic authority for “28E agreements” is as follows: “Any public agency of this state may enter into an agreement with one or more public or private agencies for joint or cooperative action pursuant to the provisions of this chapter, including the creation of a separate entity to carry out the purpose of the agreement. Appropriate action by ordinance, resolution or otherwise pursuant to law of the governing bodies involved shall be necessary before any such agreement may enter into force.” Iowa Code, section 28E.4.

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In certain instances, county governments may become more directly involved in the

development process. In some cases, they may use their borrowing powers to finance public

infrastructure investments that might otherwise be undertaken by the municipality; in other

instances, they actively participate in the development projects that have a public purpose.13

4.1.3 Opportunities for State of Iowa Involvement

One possible action would be to apply for Iowa Brownfield or Grayfield Tax Credits. A successful

Brownfield or Grayfield Tax Credit application could recoup as much as $1 M.14

The VA Lands would qualify for Grayfield Tax Credits because the infrastructure is obsolete and

abandoned and must be replaced prior to development. The VA Lands should also qualify for

Brownfield Tax Credits, because the cost of removing the asbestos from the buildings is estimated

to be in excess of $1 M.

Grayfield Tax Credits are awarded at the rate of 12% of development costs to a maximum of $1

M. Brownfield Tax Credits are awarded at 24% of development costs to a maximum of $1 M.

Municipalities are not eligible for Brownfield or Grayfield Tax Credits. Private corporations who

receive Iowa tax credits may use them or sell them to another party. The current market price

of State of Iowa tax credits is approximately 89 to 90 cents on the dollar. Nonprofit corporations

have the additional option of “cashing in” their tax credits with the State for their full value.

Other State of Iowa Programs may be available to this project, but few of them would be funded

to the extent that the Grayfield and Brownfield Tax Credit Programs are. In exceptional

circumstances the State has found additional funds to support municipal

investment/reinvestment programs.15

13 For example, Polk County financed the construction of the Iowa Events Center and the new convention hotel in Des Moines. 14Iowa Brownfield and Grayfield Tax Credits are awarded through a competitive process. The nonprofit developer would have to apply and win the tax credit awards. 15For example, the State of Iowa recently increased funding for the Community Catalyst Building Remediation Program, to the City of Marshalltown, which will assist them in their efforts to repair tornado damaged buildings in their downtown area.

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4.1.4 The Need for Federal Government Financial Support

If any level of government has a moral obligation to invest in the revitalization of the VA Lands,

it would be the Federal Government. As one elected Federal official recently said: “the Federal

Government created this mess, it should help clean it up.”

While the Federal Government no longer provides earmarks16 for such purposes, certain Federal

programs may be available to assist with the planning and development of the VA Lands. Federal

funding to assist in “bridging the financial gap” should be actively pursued to reduce the losses

that are expected to be incurred redeveloping the VA Lands.

The future status of the Historic District designation may be relevant here. It may be difficult to

access Federal Grants for the demolition of existing VA buildings and redevelopment of the VA

Lands if the historic district remains in place. Eliminating the Historic District designation may be

necessary in order to successfully seek Federal funding support.

4.2 Land Ownership and the Land Use Strategy

4.2.1 Private Ownership and the Land Use Strategy

If the GSA were able to sell the land to private investors, the City of Knoxville could assume a

more traditional role in overseeing the development of the land. In such a situation, the City

could:

• Work with the new private landowners to develop a land use strategy that was mutually

beneficial to the private investors, the municipality and its residents; and

• Use the land use strategy as a guide to decisions involving changes in zoning, subdivision

and site plan approvals, public infrastructure incentives, and appropriate development

incentives.

Section 3 of this Report offers a land use strategy that can provide guidance to potential

purchasers of the VA Lands. In reviewing the recommendations contained in Section 3, potential

investors could understand what the City’s expectations are for the development of the lands.

16 Earmarks are a Congressional Directive stating that funds should be used for a specific purpose.

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4.2.2 Other Ownership Options

It is, however, unlikely that the VA Lands will be acquired by a private investor that is capable of

managing their full redevelopment.

The costs of demolishing the buildings, and removing the asbestos and existing infrastructure

could be as much as $8 M. To this must be added the costs of the sanitary lift station at just over

$1 M. Taken together, this represents a cost of approximately $59,000 per acre, for unserviced

land – an amount that is far in excess of current market values in Knoxville.17

These costs, which only bring the VA Lands back to a status of being ‘developable,’ are daunting.

They do not include any costs associated with providing new infrastructure on site.

The likelihood of recouping all costs through the sale of lots or their development is unlikely; and

a prudent investor would not only seek to recoup their costs, but they would also expect to

receive an appropriately risk-adjusted rate of return.18

The development challenges associated with the VA Lands are, consequently, so great that it is

difficult to imagine how redevelopment can occur without the involvement of local government.

A more active role by the municipality was anticipated in a published comment in The

Comprehensive Plan from the public participation process, which reads:

“While the site would be ideal for redevelopment, the process of obtaining ownership of

the property and then upgrading the infrastructure will be a financial challenge. Both

public and private funds will be necessary to make any revitalization projects feasible. (p.

39)”

In response to the challenges of redeveloping the VA Lands, the City of Knoxville has expressed

an interest in acquiring the them. Discussions with the GSA are expected to occur in the New

Year. Marion County has expressed an interest in assisting the City in this effort.

17Current farmland values would be just under $10,000 per acre in the vicinity of Knoxville. Developable land within the City limits can range between $20,000 and $50,000 per acre. The value of land depends upon a site’s size, location within the city limits, and site conditions. Larger development parcels generally sell for less than smaller parcels, because the demand for them is more limited. Larger development parcels require a greater investment in servicing, involve much longer development time frames, and are inherently much riskier than small parcels – hence, the lower price expectations of probably purchasers. 18 Acceptable discount rates (i.e. risk adjusted rates of return for land developments range from 15 to 20% or higher, depending upon the project and its circumstances.

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The City of Knoxville and Marion County are now working on a financing package that, if agreed

to, would allow the City of Knoxville to acquire and manage the demolition/redevelopment of

the VA Lands. A substantial portion of the funding required would be provided by the County.

Those funds would be repaid as lots are sold, grants are received, etc.

The proposed Land Use Strategy can be used to guide redevelopment of the VA Lands regardless

of its ownership – private or public.

4.3 Organizing Principles for a Local Government-Led

Implementation Process

The organizing principles for a redevelopment process that is led by local government should be

as follows:

1) That the VA Lands be considered the primary urban development reserve in Knoxville;

2) That the City of Knoxville, with assistance from Marion County, seek to acquire from the

Federal Government the VA Lands and return them to productive use for the benefit of

the residents of Knoxville and Marion County;

3) That the City of Knoxville, through this Land Use Strategy, identify the types of uses to be

developed on the VA Lands, the densities of development, as well as the public

infrastructure and facilities necessary to support such development;

4) That the City of Knoxville, through this Land Use Strategy, identify preferred phases of

development to allow for the efficient investment in public infrastructure;

5) That the City of Knoxville, with assistance from Marion County, take the necessary steps

to demolish the existing VA Buildings, remove existing infrastructure, and make ready the

VA Lands for redevelopment;

6) That the City of Knoxville determine the best means of utilizing public resources to build

new infrastructure necessary for redevelopment of the VA Lands;

7) That the City of Knoxville, with the assistance of Marion County, determine the best

means of managing the redevelopment process on behalf of the residents of Knoxville

and Marion County; and

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8) That the City of Knoxville, with the assistance of Marion County, seek additional financial

support from both the State of Iowa and the United States Federal Government.

4.4 Building Demolition and the Removal of Existing Infrastructure

Creation of a non-profit community development corporation to manage building demolition,

infrastructure removal, and future redevelopment can be used to improve the project’s eligibility

for certain grants and tax credits.19 The most significant of these are the Brownfield/Grayfield

Grants which could provide for as much as $1 M for the project. While a successful

Brownfield/Grayfield application would not eliminate the project’s expected financial gap, it

would go a long way in closing it. The newly created nonprofit corporation could also, in

association with the City and County, apply for other available State and Federal grant programs.

Building demolition and infrastructure removal is likely to occur in two phases:

• Initial work undertaken for Phase 1 development; and

• Subsequent work undertaken in support of Phases 2 and 3.

The Phase 1 work would be smaller in scale, less expensive, and could be undertaken quickly to

create momentum and achieve early results for the redevelopment process. Phase 1

demolition/removal work could occur during the first available construction season.

The Phase 2/3 work would be much larger in scale and more expensive. This work could be

partially subsidized by a successful Brownfield/Grayfield Tax Credit application. State of Iowa

applications are generally due in Summer and the tax credits are usually awarded in the Fall.

Phase 2/3 demolition/removal work could begin in the Spring following a successful tax credit

application.

19 There are many different was to organize a local nonprofit corporation for these purposes. The key elements to any nonprofit corporation that would be used for these purposes are: (1) that its Board of Directors is selected to represent the interest of the City, the County, and the residents of Knoxville and Marion County; (2) that the organization’s mandate and obligations are clearly stated in a 28 E agreement; and that the nonprofit Board has the authority to make day to day decisions so that it may proceed in an efficient and effective manner. Many such models exist for community development corporations – one model would be the Neighborhood Development Corporation in Des Moines.

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4.5 Subdivision, Installation of New Infrastructure, and Sale of the

Land for Development

The nonprofit development corporation would then work with the City of Knoxville to prepare

an infrastructure development package for Phase I. The nonprofit development corporation

would have the option of either selling the Development Areas to private developers or, in the

case of the single-family areas, managing the subdivision and sale of the lots to builders

themselves.

As the Phase I Development Areas proceed through the development process, the nonprofit

development corporation could plan for the release of Phase 2 lands for development. The

timing and nature of the sale of those lands would, of course, be dependent upon the progress

made in selling and developing the Phase I lands.

The process would repeat itself in Phase 3, except that development along Pleasant (e.g. a

shopping center) could conceivably occur prior to the full build out of Phases 1 and 2.

Additionally, transfer of ownership of lands to the Marion County Fair Board (in the Phase 2

development area) and the Knoxville Community School District (in the Phase 3 development

area) could occur earlier in the process.

4.6 Conclusions Regarding Implementation

This Section’s discussion regarding implementation should be considered general in nature. The

decision on how best to proceed with implementation is dependent upon whether or not the

City of Knoxville, with the assistance of Marion County, is able to acquire the VA Lands. The

discussion about the formation of a nonprofit development company to oversee redevelopment

assumes that the City will be able to acquire the VA Lands and that it would like to use the

nonprofit corporation to pursue development incentives that would not otherwise be available

to the City. If this is the case, additional work to create the nonprofit corporation, draft an

appropriate 28 E agreement, and prepare a business plan of the new organization would be called

for.

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Appendix – Development Potential & Tax Implications

A-1 Projected Housing Units at Project Completion

SF TH Res-TBD Total

Phase I Area A* 0 24 0 24 Area B 32 0 0 32 Area C** 7 0 97 104 Subtotal 39 24 97 160 Phase II Area A* 0 38 0 38 Area B 24 0 0 24 Area C** 0 0 330 330 Area D*** 0 0 0 0 Subtotal 24 38 330 392 Phase III Area A 0 0 0 0 Area B**** 0 0 145 145 Subtotal 0 0 145 145 Totals 63 62 572 697

Notes

Total Density of Development = 4.6 Units/Acre

*Townhouse Density = 10 UPA

**Residential Density - 15 UPA

***Fair Grounds/Raceway Land

****Residential Density = 5 UPA, also includes Comm/Playfields

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A-2 Projected Population at Project Completion

Units People/Unit Population

Single Family 63 3.50 221

5 UPA 145 3.00 435

10 UPA 62 2.50 155

15 UPA 427 1.75 747

Total 697 2.23 1,558

A-3 Annual Property Tax Projections at Project Completion Average Total

Residential Development Units Avg Assessment Assessment

Single Family Homes 63 $ 280,000 $ 17,640,000

Townhouses 10 UPA 62 $ 220,000 $ 13,640,000

Blended 5 UPA 145 $ 265,000 $ 38,425,000

Blended 15 UPA 427 $ 176,000 $ 75,152,000

Subtotal 697 $ 207,829 $ 144,857,000

Taxable Assessment Rate 55.62%

Taxable Assessment Value $ 80,569,463

Tax Rate 4.166679%

Residential Property Taxes Paid $ 3,357,071

Commercial Development

Site Area Acres 6

Density FAR 0.333

Building Area 87,033

Assessment/SF $ 60

Subtotal $ 5,221,973

Taxable Assessment Rate 90%

Taxable Assessment Value $ 4,699,776

Tax Rate 4.166679%

Commercial Property Taxes Paid $ 195,825

Total Property Projected Taxes $ 3,552,895

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Publishing Information

@ City of Knoxville, Iowa, 2019

For additional Information please contact City Administrator Aaron Adams

Written by 571 Polson Developments LLC with assistance from Bergland & Cram

Date post:	09-Aug-2020
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