H.1. Reso 5801 - BIDCITY OF
REPORT TO:
FROM:
MONTANA
MEMORANDUM
Doug Russell, City Manager
Clerk's Office
201 1st Avenue East
PO Box 1997
Kalispell, MT 59903
Phone: (406) 758-7756
cityclerk@kalispell.com
www.kalispell.com
Aimee Brunckhorst, CMC, City Clerk & Communications Manager
MEETING DATE: April 3, 2017
RE: Resolution to Establish the Kalispell Downtown Business Improvement
District (KBID) with Expanded Boundaries
BACKGROUND: The Kalispell Downtown Business Improvement District is expiring
pursuant to state statute. The KBID was established to promote the success of downtown
Kalispell and is funded and directed by the property owners of downtown Kalispell. These efforts
include beautification, downtown events, marketing, social media, facade improvements and
working with the City of Kalispell and other organizations to represent property owners.
To establish a district per Montana Code Annotated (MCA) 7-12-1111, property owners of at
least 60% of the land area within the proposed boundaries must petition the City for the creation
of the district. Since business owners representing 62.84% of the land area within the proposed
district submitted petitions to establish the business improvement district with the expanded
boundaries, Council passed Resolution 5793 on December 19, 2016 per MCA 7-12-1112.
Resolution 5793 stated Council intention to consider the establishment of the district, called for
the public hearing to be held January 17, 2017, and caused notice of the hearing to be published
and mailed to all business property owners in the proposed district. Business property owners
were notified that they may file a protest with the City against the formation of the district and
that the protest must be received within 15 days of the first publication and mailing. Per MCA 7-
12-1114, if the total protests filed amounted to any of the following percentages the Council could
take no further action upon the proposed district for one year.
(a) more than 50% of the total taxable valuation of property within proposed district; or
(b) more than 50% of the property owners in the proposed district; or
(c) more than 50% of the total projected assessments for property within the proposed
district.
Aggregating the protests received resulted in the following percentages:
(a) 12.87% of the total taxable valuation of property within the proposed district;
(b) 10.67% of the property owners in the proposed district;
(c) 12.27% of the total projected assessments for property within the proposed district.
Staff considered all protests received in the above calculations, even those protests not received
until after the official protest close date per state code. The sum of all protests received did not
reach the 50% protest threshold. Therefore during the February 6, 2017 City Council meeting,
staff placed consideration of a Resolution before Council to establish the Kalispell Downtown
Business Improvement District with the boundaries set forth in the petitions and included in the
Resolution of Intention 5793.
An approved motion and vote during the agenda approval process of the February 6, 2017
meeting removed this item from the agenda and placed it on a subsequent work session. During
the February 27, 2017 work session, Council directed staff to gather additional information and
hold another work session. After continued discussion during the March 21 work session, Council
directed staff to bring forth a Resolution to establish the District for consideration during the April
3, 2017, Council meeting.
ALTERNATIVES: Based on state statute, Council can consider the following options that were
previously identified in a memorandum from the City Attorney.
1. If the Council determines that there is insufficient evidence to show that the proposed
district "serves the public interest by promoting the health, safety, prosperity, security and
general welfare of the inhabitants of the district and of the people of the state" and would
be of "special benefit to the property within the boundaries of the district" and is an "aid in
promotion and marketing within the district," MCA 7-12-1102 it may decline to create the
district.
2. If the Council determines that there is sufficient evidence to make the necessary findings
of fact for the purposes set forth above, it may then make the finding that the protests filed
were insufficient to meet the thresholds set forth in MCA 7-12-1114, based upon the
protests actually filed within the 15-day protest period. It may then go forward with a
resolution creating the Business Improvement District to the extent of the proposed district
(with the boundaries) that was described in the Resolution of Intent previously passed and
approved by Council.
3. If the Council determines that there is sufficient evidence to make the necessary findings
of fact for the purposes set forth above, but finds that the extent of the proposed district
(the proposed boundaries described in the Resolution of Intent) brings about discrete
disproportionate cost to benefit results between certain areas within the proposed district,
it may consider the following choices:
a. It may pass a resolution declining to create the district based upon the finding that
there would be inherent and incurable inequities to the properties to be assessed in
the proposed district.
b. It may delineate a smaller extent of the district within the proposed boundaries in
order to make the district more homogenous and issue a new Resolution of Intent
describing the new smaller boundaries and allowing for a new protest and
comment period prior to considering a resolution to create a district.
c. It may pass a resolution to create the district as proposed and then create a tiered
assessment schedule that addresses the cost to benefit inequities that may be found
to exist.
RECOMMENDATION: Approve Resolution 5801, a Resolution creating a Business
Improvement District pursuant to the terms of Title 7, Chapter 12, Part 11 of Montana Code
Annotated.
ATTACHMENTS: Resolution 5801
Prior attachments can be found in the March, 2017 work session packet linked here and in the
February 27, 2017 work session packet linked here.
RESOLUTION NO.5801
A RESOLUTION CREATING A BUSINESS IMPROVEMENT DISTRICT PURSUANT TO
THE TERMS OF TITLE 7 CHAPTER 12 PART 11 OF MONTANA CODE ANNOTATED.
WHEREAS, pursuant to Title 7 Chapter 12 Part 11 of Montana Code Annotated, the City of Kalispell
is authorized to create business improvement districts; and
WHEREAS, the City of Kalispell was presented with petitions signed by the owners of more than
60% of an area of the property proposed to be included in the district, the exterior
boundaries of which are shown on the attached Exhibit "A" and which by this reference
is made a part hereof, and
WHEREAS, the aforementioned petitions request that the City of Kalispell create a business
improvement district for up to ten (10) years, pursuant to Section 7-12-1141 MCA; and
WHEREAS, on December 19, 2016, upon receiving the petitions, the Kalispell City Council issued
Resolution 5793 declaring its intent to create a business improvement district for the city
of Kalispell, Montana, to fix a date of a public hearing for January 17, 2017, and to
provide for publication and mailing of notice of said hearing; and
WHEREAS, the City Clerk caused proper notice of passage of the resolution to be published as
provided in MCA 7-1-2121 and by mailing a copy of the notice to every owner of real
property within the proposed district listed on the last completed assessment roll for
state, county, and school district taxes, at the owner's last -known address, on the same
day the notice was first published or posted; and
WHEREAS, upon proper notice given and upon the expiration of 15 days pursuant MCA 7-12-1113,
the office of City Clerk received a number of written protests within that time period,
although in insufficient numbers to reach any of the fifty percent protest threshold
requirements that would bar further proceedings as provided in MCA 7-12-1114 and
said protests and all other comments were duly considered at the public hearing held
January 17, 2017; and
WHEREAS, based upon the evidence presented to the City, the purpose of said business
improvement district appears to promote the health, safety, prosperity, security and
general welfare of the inhabitants of the City of Kalispell and the proposed district, and
appears to be of special benefit to the property within the boundaries of said proposed
district as shown on the attached Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION 1. The Kalispell City Council hereby finds that the proposed business improvement
district serves to promote the health, safety, prosperity, security and general
welfare of the inhabitants of the City of Kalispell and the proposed district, and
is of special benefit to the property within the boundaries of said proposed
district as shown on the attached Exhibit "A".
SECTION 2. The Kalispell City Council hereby creates a business improvement district
pursuant to Title 7 Chapter 12 Part 11, Montana Code Annotated the term of
which shall be ten (10) years and which shall be known as the "Kalispell
Downtown Business Improvement District."
SECTION 3. Said business improvement district shall have boundaries as shown on the
attached Exhibit "A" which by this reference is made a part hereof, provided,
however, that all property classified as a commercial improvement within the
district will be included in the district. All publicly owned property and owner -
occupied single family residential property within the district are specifically
excluded from the business improvement district and are exempt from its
assessments.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 3RD DAY OF APRIL, 2017.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
EXHIBIT "A"
Legal Description
Downtown Kalispell Proposed Business Improvement District
Commencing at the intersection of Main and Center Street which is the True Point of Beginning;
thence westerly along the centerline of West Center St, 1,112 feet, more or less, to the center line of
the intersection of West Center St and 3rd Ave W, thence southerly along 3rd Ave W, 1,107 feet,
more or less, passing between lots 32 and 33, lots 48 and 49, lots 52 and 53, to the centerline of the
intersection of 3rd Ave West and 3rd Street West; thence easterly one half block along 3rd Street
West to the alley of block 68, Kalispell Original, thence southerly through said alley to 4th Street
West; thence easterly, 370 feet, more or less, along 4th Street West to the alley of block 74,
Kalispell Original; thence southerly through said alley to 5th Street West; thence easterly, 388 feet,
more or less, along 5th Street West to the alley of block 86, Kalispell Original; thence southerly
through the alleys of blocks 86, 95, and 106, 1,073 feet, more or less to the centerline of 8th Street
West; thence easterly along 8th Street West, 411 feet, more or less, crossing Main Street to 8th
Street East continuing to the alley of block 105, Kalispell Original; thence northerly through the
alleys of blocks 105, 96, and 85, 1,073 feet, more or less, to the centerline of 5th Street East; thence
easterly, 388 feet, more or less, along 5th Street East, to the alley of block 77, Kalispell Original;
thence northerly through said alley to the centerline of 4th Street East; then easterly one half block
to the intersection of 4th Street East and 2nd Avenue East; thence northerly along 2nd Avenue East
between blocks 63 and 64 to the intersection of 2nd Avenue East and 3rd Street East; thence
easterly, 372 feet, more or less to the intersection of 3rd Street East and 3rd Avenue East; thence
northerly along 3rd Avenue East, 2,044 feet, more or less, between blocks 58 and 59, following the
east most boundary of Linderman School, between blocks 38 and 39, along the east most boundary
of Manion Square and then Kalispell Market Place Phase 2, to the intersection of 3rd Avenue East
and East Montana Street; thence westerly along East Montana Street, 747 feet, more or less to the
centerline of Ist Ave East North; thence northerly, 354 feet, more or less, between blocks 16 and
17, to the intersection of East Idaho Street and Ist Avenue East North; thence westerly, 945 feet,
more or less, along East Idaho Street, crossing Main Street, to West Idaho Street, continuing to the
intersection of West Idaho Street and the alley of block 14, Kalispell Original, between Ist Avenue
West North and 2nd Ave West North; thence southerly down said alley of block 14, 354 feet, more
or less, to the centerline of West Montana Street; thence easterly one half block to the intersection
of Ist Avenue West North and West Montana Street; thence southerly along Ist Avenue West
North, between blocks 26 and 27, 328 feet, more or less, to the south west corner of lot 13 of block
26; thence easterly along the southern boundary of lot 26 to the centerline of Main Street; thence
southerly along Main Street, 578 feet, more or less to the intersection of Main Street and Center
Street to the True Point of Beginning.