G. Public Hearing - 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
MEMORANDUM
TO: Doug Russell, City Manager
FROM: Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
SUBJECT: Public Hearing — Upon the City Council's Intent to Create a
Downtown Urban Renewal Tax Increment Financing District
as an Overlay to the Downtown Urban Renewal District
MEETING DATE: January 7, 2019 — 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 Public Hearing on
the City Council's Intent to Create
a Downtown Urban Renewal
Tax Increment Financing District
January 7, 2019
Page - 2
Therefore, the Kalispell City Council passed Ordinance No.1816 establishing the
Downtown Urban Renewal District on second reading on December 17, 2018 and will
become effective on January 16, 2019.
On December 17, 2018, the City Council passed a Resolution of Intent 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. All required legal notices have been duly distributed
and the public will now have the opportunity to comment and provide written or oral
testimony at the public hearing scheduled at 7:00pm January 7, 2019 in the City Council
chambers.
Office of City Attorney
City of Kalispell