E2. Ord 1820 - Creates Downtown Urban Renewal Tax 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
Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7758
charball@kalispell.com
SUBJECT: Ordinance No. 1820 — 2nd Reading To Create a Downtown
Urban Renewal Tax Increment Financing District as an
Overlay to the Downtown Urban Renewal District
MEETING DATE: February 4, 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.
Ordinance No. 1820 - Creation
Of a Downtown Urban Renewal
Tax Increment Financing District
February 4, 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. On January 7, 2019 the City Council held the public
hearing and took comment from the public and two comments were received. On January
22, 2019 the City Council passed Ordinance No. 1820 on first reading.
RECOMMENDATION: It is recommended that the Council consider and pass
Ordinance No. 1820 on second reading.
ALTERNATIVES: Council may seek to amend the Ordinance, reject the Ordinance or
continue the matter for further consideration.
Office of City Attorney
City of Kalispell
CERTIFICATE AS TO ORDINANCE AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell,
Montana (the "City"), hereby certify that the attached ordinance is a true copy of a Ordinance entitled:
AN ORDINANCE ESTABLISHING AN URBAN RENEWAL TAX INCREMENT FINANCING
DISTRICT ENCOMPASSING A PORTION OF DOWNTOWN KALISPELL AS DELINIATED IN
THE DOWNTOWN PLAN AMENDMENT TO THE CITY OF KALISPELL GROWTH POLICY
PLAN -IT 2035 AS SET FORTH IN THE ATTACHED EXHIBIT "A" TO BE KNOWN AS THE
DOWNTOWN KALISPELL URBAN RENEWAL TAX INCREMENT FINANCING DISTRICT (the
"Ordinance"), on file in the original records of the City in my legal custody; that the Ordinance was duly
adopted on first reading by the City Council of the City at a meeting on January 22, 2019, and the
meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call
and notice of such meeting given as required by law; and that the Ordinance has not as of the date hereof
been amended or repealed.
I further certify that, upon vote being taken on the Ordinance at said meeting, the following City
Council members voted in favor thereof:
voted against the same:
abstained from voting thereon:
or were absent:
WITNESS my hand officially this 22nd day of January, 2019.
Aimee Brunckhorst, CMC
City Clerk
I further certify that the Ordinance was duly adopted on second reading by the City Council of the
City at a regular meeting on February 4, 2019, and that the meeting was duly held by the City Council
and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required
by law; and that the Ordinance has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Ordinance at said meeting, the following City
Council members voted in favor thereof:
voted against the same:
abstained from voting thereon:
or were absent:
WITNESS my hand officially this 4th day of February, 2019.
Aimee Brunckhorst, CMC
City Clerk
ORDINANCE NO. 1820
AN ORDINANCE ESTABLISHING AN URBAN RENEWAL TAX INCREMENT
FINANCING DISTRICT ENCOMPASSING A PORTION OF DOWNTOWN KALISPELL
AS DELINEATED IN THE DOWNTOWN PLAN AMENDMENT TO THE CITY OF
KALISPELL GROWTH POLICY PLAN -IT 2035 AS SET FORTH IN THE ATTACHED
EXHIBIT "A" TO BE KNOWN AS THE DOWNTOWN KALISPELL URBAN RENEWAL
TAX INCREMENT FINANCING DISTRICT.
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 Planning Board held a duly noticed public hearing September 11, 2018,
to consider the DRAFT Downtown Kalispell Urban Renewal Plan in which staff
report KRD-18-02 that provided details of the proposal and evaluation was accepted
by the Planning Board as findings of fact and transmitted to the City Council; and
WHEREAS, on September 19, 2018 the Kalispell Urban Renewal Agency held a duly noticed
public meeting to consider the DRAFT Downtown Kalispell Urban Renewal Plan in
which it recommended approval on a vote of 4 to 1.
WHEREAS, pursuant to the terms of MCA Title 7, Chapter 15, Part 42 the Kalispell City Council
approved a resolution of intent and in conformance with Section 7-15-4215 of the Act
held a duly noticed public hearing on November 19, 2018 considering all oral and
written comment and testimony as well as all evidence reviewed by the Kalispell City
Planning Board, including the Downtown Plan Amendment previously approved by
Council; and
WHEREAS, on December 3, 2018, pursuant to MCA 7-15-4210, the Kalispell City Council passed
Resolution No. 5905 a Resolution of Necessity finding that areas of blight exist
within the boundaries of the Downtown Plan Amendment to the City of Kalispell
Growth Policy Plan -It 2035 and that rehabilitation, redevelopment, or a combination
thereof, within such area is necessary in the interest of the public health, safety,
morals or welfare of the residents of the City of Kalispell; and
WHEREAS, on December 17, 2018 the Kalispell City Council passed Ordinance No. 1816 on
second reading establishing the Downtown Kalispell Urban Renewal District and
further passed Resolution No. 5906 stating its intent to create a Downtown Kalispell
Urban Renewal Tax Increment Financing District and setting a duly noticed public
hearing for such on January 7, 2019, all pursuant to the terms of MCA Title 7,
Chapter 15, Part 42; and
WHEREAS, on January 7, 2019 the Kalispell City Council held a duly noticed public hearing to
take oral and written comment from the public regarding the creation of a Downtown
Kalispell Urban Renewal Tax Increment Financing District and received two public
comments, one in favor of the creation of the district from the president of the
Downtown Business Improvement District and one other comment that additional
property taxes should not be imposed upon the properties within the district.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. The Kalispell City Council hereby finds that it is in the best interests of the
residents of the City of Kalispell that the City should exercise its powers
pursuant to the terms of the Montana Urban Renewal Act, MCA Title 7,
Chapter 15, Part 42, to create the Downtown Kalispell Urban Renewal Tax
Increment Financing District, physically described in Exhibit "A", attached
hereto, for all legal purposes authorized under the Act.
SECTION 2. Effective Date. This Ordinance is to be posted as required by law and copies
made available to the public upon request. This Ordinance shall take effect
thirty (30) days after its final passage.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 4TH DAY OF FEBRUARY, 2019.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Exhibit "A"
Downtown Kalispell Urban Renewal Tax Increment Financing District
Boundary
The Downtown Kalispell Urban Renewal Tax Increment Financing District Boundary embraces
a 95-acre area. Starting at the intersection of 3rd Avenue West and 1st Street the plan is bound
by heading easterly on 1st 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
1st Avenue East, thence southerly along 1st Avenue East until 9th Street, thence westerly along
9th Street until 1st Avenue West, thence northerly along 1st 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: