H2. Reso 5906 - Intent to Create Downtown Urban Renewal Tax Increment Financing DistrictCity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO:
FROM:
MEMORANDUM
Doug Russell, City Manager V_
Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
SUBJECT: Resolution No. 5906 — A Resolution of Intent to Create a
Downtown Urban Renewal Tax Increment Financing District
as an Overlay to the Downtown Urban Renewal District
MEETING DATE: December 17, 2018 — Regular Council Meeting
BACKGROUND: On December 4, 2017, following many months of extensive
interaction with the public, the Kalispell City Council adopted the Downtown Plan as an
amendment to the City of Kalispell Growth Policy Plan -It 2035 by Resolution No. 5846.
The adopted Downtown Plan identifies the City's overall mission to meet its needs of
promoting economic development, improving area employment opportunities, improving
area housing opportunities and expanding the community's tax base within the
downtown area. It further identifies areas of blight within the downtown area that may
be rehabilitated through replanning, removal of congestion, the provision of parks,
playgrounds, and other public infrastructure improvements, and through encouraging
voluntary rehabilitation. Finally, the Plan identifies the goal of creating a Downtown
Urban Renewal District with a Tax Increment Finance District as an overlay for the
purposes of constructing appropriate public infrastructure projects to invigorate the
redevelopment of blighted conditions.
Sixteen years ago, the Kalispell Downtown Urban Renewal District and the Tax
Increment Financing District overlay statutorily sunset after 22 years of service during
which substantial rehabilitation to public infrastructure and private investment in the
District occurred. Since that time, significant commercial investment has been made
outside of Downtown Kalispell. Additionally, the Westside Urban Renewal and Tax
Increment Financing Districts have been expanded to the Core area and are now ripe for
investment by new development. Because of the attractive investment opportunities
outside of the downtown area and the blight that continues to be there, a significant
likelihood exists that a deprivation of investment will continue in the downtown area,
increasing blighted properties, decreasing property values and the community's tax base
in that area.
Memorandum for Resolution No. 5906
Resolution of Intent to Create
a Downtown Urban Renewal
Tax Increment Financing District
December 17, 2018
Page - 2
Therefore, the Kalispell City Council passed Ordinance No.1816 establishing the
Downtown Urban Renewal District on first reading on December 3, 2018 and will
consider the Ordinance for second reading on December 17, 2018, which, if passed, will
become law 30 days thereafter.
This Resolution before the Council serves to give notice to the public of the Council's
intent to consider creating a Tax Increment Financing District overlay to the Downtown
Urban Renewal District for the purposes of providing funding to rehabilitate and
improve public infrastructure within the Urban Renewal District in order to attract
private investment.
RECOMMENDATION: It is recommended that the Council consider and pass the
offered resolution of intent to direct the City Clerk to give all required notices for a public
hearing to be conducted on January 7, 2019 and to accept public comment on the
proposal.
ALTERNATIVES: Upon consideration of the proposal the Council may reject the
resolution.
Office of City Attorney
City of Kalispell
RESOLUTION NO.5906
A RESOLUTION OF INTENT TO CREATE AN URBAN RENEWAL TAX INCREMENT
FINANCING DISTRICT TO OVERLAY ALL PROPERTIES WITHIN THE KALISPELL
DOWNTOWN URBAN RENEWAL DISTRICT THAT ENCOMPASSES A PORTION OF
DOWNTOWN KALISPELL, CALLING FOR A PUBLIC HEARING AND DIRECTING
THE CITY CLERK TO GIVE NOTICE BY MAILING AND PUBLICATION PURSUANT
TO STATE STATUTE.
WHEREAS, on December 4, 2017, following many months of extensive interaction with the,
public, the Kalispell City Council adopted the Downtown Plan as an amendment to
the City of Kalispell Growth Policy Plan -It 2035 by Resolution No. 5846; and
WHEREAS, the adopted Downtown Plan identifies the City's overall mission to meet its needs of
promoting economic development, improving area employment opportunities,
improving area housing opportunities and expanding the community's tax base
within the downtown area; and
WHEREAS, the Downtown Plan further identifies areas of blight within the downtown area that
may be rehabilitated through replanning, removal of congestion, the provision of
parks, playgrounds, and other public infrastructure improvements, and through
encouraging voluntary rehabilitation; and
WHEREAS, the Downtown Plan identifies the goal of creating a Downtown Urban Renewal
District with a Tax Increment Finance District as an overlay for the purposes of
constructing appropriate public infrastructure projects to invigorate the
redevelopment of blighted conditions; and
WHEREAS, sixteen years ago, the Kalispell Downtown Urban Renewal District and the Tax
Increment Financing District overlay statutorily sunsetted after 22 years of service
during which substantial rehabilitation to public infrastructure and private investment
in the District occurred; and
WHEREAS, since the time of the Kalispell Downtown Urban Renewal District and Tax Increment
Financing District sun setting in 2002, significant commercial investment has been
made outside of Downtown Kalispell; additionally, the Westside Urban Renewal and
Tax Increment Financing Districts have been expanded to the Core area and are now
ripe for investment by new development; and
WHEREAS, because of the attractive investment opportunities outside of the downtown area and
the blight that continues to be there, a significant likelihood exists that a deprivation
of investment will continue in the downtown area, increasing blighted properties and
decreasing property values and the community's tax base in that area; and
WHEREAS, the Kalispell City Council passed Ordinance No. 1816 establishing the Downtown
Urban Renewal District on first reading on December 3, 2018 and will consider the
Ordinance for second reading on December 17, 2018, which, if passed, will become
law 30 days thereafter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
Section 1. Statement of Intent. It is the intent of the Kalispell City Council to consider
creating an Urban Renewal Tax Increment Financing District within a portion
of Downtown Kalispell as set forth in the map and plan attached as Exhibit
"A", pursuant to the terms of MCA Title 7, Chapter 15, Part 42.
Section 2. Public Hearing. On January 7, 2019, at 7:00 p.m., in the Council Chambers
in the Kalispell City Hall, the City Council will conduct a public hearing on
the establishment of an Urban Renewal Tax Financing District as described
above.
Section 3. Notice of Public Hearing, The City Clerk is hereby authorized and directed
to provide Notice of the Public Hearing pursuant to the terms of MCA 7-15-
4215 in substantially the form attached hereto as "Exhibit B."
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 17TH DAY OF DECEMBER, 2018.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Exhibit "A"
Downtown Kalispell Urban Renewal Plan Boundary
The proposed Downtown Kalispell Urban Renewal Plan Boundary embraces a 95-acre area
under multiple ownerships. The plan boundary has been the epicenter of business and social
gathering since the city was created. Starting at the intersection of 3rd Avenue West and 1st
Street the plan is bound by heading easterly on 1 st Street until 3rd Avenue East, thence southerly
along 3rd Avenue East until the intersection with 4th Street, thence westerly along 4th Street
until 2nd Avenue East, thence southerly along 2nd Avenue East until 5th Street, thence Westerly
along 5th Street until 1 st Avenue East, thence southerly along 1 st Avenue East until 9th Street,
thence westerly along 9th Street until 1 st Avenue West, thence northerly along 1 st Avenue West
until 5th Street, thence westerly along 5th Street until 2nd Avenue West, thence northerly along
2nd Avenue West until 4th Street, thence westerly along 4th Street to 3rd Avenue West, thence
northerly along 3rd Avenue West until the point of beginning, shown in the map below:
The Downtown Kalispell Urban Renewal Plan 2018 is also included in Exhibit A. The plan is
available at www.kalispell.com, under Department, Planning.
EXHIBIT "B"
CITY OF KALISPELL, MONTANA
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Kalispell,
Montana (the "City") will hold a public hearing on the proposal to establish an Urban Renewal Tax
Increment Financing District within a portion of downtown Kalispell on January 7, 2019, at 7:00
p.m., at the Council Chambers in the Kalispell City Hall, 201 1st Avenue East, Kalispell, Montana.
The proposal is contained within the Downtown Plan established as an amendment to the City of
Kalispell Growth Policy Plan -It 2035 by Resolution No. 5846 on December 4, 2017.
The Downtown Plan is available for download on the City of Kalispell website and accessed
at: http://www.kalispell.com or may be acquired from the Office of City Clerk at the address stated
below.
Further information may be obtained from Aimee Brunckhorst, the City Clerk of the City,
whose address is Kalispell City Hall, 201 I't Avenue East, Kalispell, Montana, and whose telephone
number is (406) 758-7756.
Any interested persons may appear and be heard at this scheduled public hearing or may file
written comments with the City Clerk prior to such hearing.
Dated this 17th day of December, 2018.
BY ORDER OF THE CITY COUNCIL
M
Publication Dates:
December 23, 2018
January 6, 2019
Aimee Brunckhorst, CMC
City Clerk