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06-24-19 Work Session Agenda and MaterialsCITY COUNCIL WORK SESSION AGENDA June 24, 2019, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East A. CALL TO ORDER B. DISCUSSION ITEMS 1. Downtown Kalispell and Amended West Side Tax Increment Finance Policies, Procedures, and Programs 2. South Kalispell Tax Increment Financing District Traffic Project Update C. PUBLIC COMMENT Persons wishing to address the council are asked to do so at this time. Those addressing the council are requested to give their name and address for the record. Please limit comments to three minutes. D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS E. ADJOURNMENT UPCOMING SCHEDULE / FOR YOUR INFORMATION Next Regular Meeting — July 1, 2019, at 7:00 p.m. — Council Chambers City Offices Closed — July 4, 2019 — Independence Day Next Work Session — July 8, 2019, at 7:00 p.m. — Council Chambers Reasonable accommodations will be made to enable individuals with disabilities to attend this meeting. Please notify the City Clerk at 758-7756. Page 1 of 1 PLANNING FOR THE FLrrURE REPORT TO: FROM: SUBJECT: MEETING DATE: Planning Department 201 1st Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannin,a Doug Russell, City Manager Jarod Nygren, Senior Planner Work Session — Downtown Kalispell and Amended West Side TIF Policies, Procedures, and Programs June 24, 2019 BACKGROUND: To assist in the implementation of Tax Increment Finance (TIF) District funding, the Urban Renewal Agency (URA) is unanimously recommending that the council approve the DRAFT Downtown Kalispell TIF Assistance Program and the DRAFT Amended West Side Urban Renewal — Core Area TIF Assistance Program, which was approved by the Council on February 18, 2014. There are currently policies in place for the West Side Urban Renewal District, however, following adoption of the Downtown Urban Renewal District additional development incentives were considered by the URA for both districts. It is the primary focus of the TIF assistance programs to encourage the location, expansion and retention of business and housing opportunities. The purpose of the TIF assistance program is to encourage desirable development/redevelopment projects, as well as assist projects that would not otherwise occur "but for" the assistance provided through TIF. The purpose of the two documents is to provide guidelines for the URA and Council to offer monetary incentives for development activities within the two urban renewal districts in the form of TIF assistance funds. Additional objectives within the urban renewal district include: Expand the property tax base in the district through private investment in income producing properties; Stimulate economic and business development within the district by improving public infrastructure deficiencies; and • Reduce blighted properties within the district. The primary change from what was previously in place includes changes to the "shared utilities program." The current shared utility program has a maximum grant of $150,000 dollars and does not include any provisions for payment of impact fees. The proposed assistance program for both TIF Districts has provisions that would allow for a grant related to 100% of all public infrastructure costs, including impact fees. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the URA and Kalispell City Council. The City of Kalispell Growth Policy Plan -It 2035, Downtown Plan and Core Area Plan contain the following policies that are relevant to the proposed Downtown Kalispell and Amended West Side — Core Area TIF Assistance Programs: Kalispell Growth Policy Plan -It 2035 Recommendations: • Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area Policy (8) — Encourage development and redevelopment by creating incentives for developers to offset infrastructure and other site costs. • Kalispell Growth Policy Plan -It 2035, Chapter 4 Housing recommendation 2 — Investigate alternative funding mechanisms to reduce impact fees. • Kalispell Growth Policy Plan -It 2035, Chapter 4 Business and Industry recommendation 3 — Explore alternative funding mechanisms for infrastructure to eliminate reliance on impact fees. The Downtown Plan Goals: Chapter 4, Implementation Goal 3 (d) — Upgrade inadequate infrastructure including city water mains for fire flows to accommodate the full use of historic buildings downtown. Chapter 4, Implementation Goal 3 (e) — Develop a revolving loan/grant program using TIF or other funding resources to help business fund necessary infrastructure or property reinvestment. Core Area Plan Goals: Chapter 4 Vision & Goals 910. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. RECOMMENDATION: Staff will present the DRAFT Downtown and West Side — Core Area TIF Assistance programs, as recommended by the URA, and be prepared to answer any questions. ATTACHMENTS: DRAFT Amended West Side Urban TIF Policies DRAFT Downtown Kalispell TIF Policies c: Aimee Brunckhorst, Kalispell City Clerk Downtown Kalispell Tax Increment Financing Assistance Program City of Kalispell- Urban Renewal Agency City Council Resolution XXXX Date: 1 Table of Contents Introduction 2 Urban Renewal Agency 2 Purpose 2 Program Objectives 3 Polices 3 Criteria for Reviewing Funding Applications 3 Eligible Activities 5 Eligible Applicants 6 Eligible Properties 6 Application Process 6 Important 7 Shared Utilities Program 9 Street Tree Placement Program 10 Sidewalk Placement Program 11 Historic Facade Program 11 Fagade Improvement Program 13 Rehabilitation/Code Compliance Program 15 Site Demolition, Cleanup, and Preparation Program 16 Technical Assistance Program 17 Public Infrastructure Program 18 Approved by Urban Renewal Agency XXXX z INTRODUCTION On December 4, 2017, 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 Downtown Plan addresses a number of key topics that affect the future growth and development of Downtown Kalispell. Subsequently, the Kalispell City Council adopted the Downtown Kalispell Urban Renewal Plan on December 3, 2018, thereby establishing an urban renewal district as part of 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. (Hereby referred to as "TIF") as provided in 7-15-4282 through 7-15-4294, MCA for appropriate public infrastructure projects in support of redevelopment within the Urban Renewal District boundary. TIF districts are typically characterized by blight that limits new investment within the Urban Renewal District. TIF is an important element of economic development in the City of Kalispell as a means to fund development activities. The TIF program operates by first establishing a base year taxable value for all properties within a designated boundary. Property taxes from that boundary or district continue to be paid to all taxing jurisdictions such as schools, county, etc., on the basis of the base year valuation. All increases in property taxes in the district above this tax base valuation due to new development or reappraisals are assigned to the City of Kalispell to be used to fund eligible activities identified within the Downtown Kalispell Urban Renewal Plan. URBAN RENEWAL AGENCY The Downtown Kalispell TIF is managed by the City of Kalispell Urban Renewal Agency advisory to Kalispell City Council. In 2010, pursuant to City of Kalispell Resolution 5435, an Urban Renewal Agency (hereafter referred to as "URA") was established for the purpose of assisting the Kalispell City Council in evaluating and proposing TIF district plans and projects. The five - member committee is responsible for reviewing all TIF applications and making recommendations to Kalispell City Council. PURPOSE It is the primary focus of the Downtown Kalispell TIF assistance program to encourage the location, expansion and retention of business and housing opportunities suitable for Downtown Kalispell. The TIF would do this by incentivizing growth within the plan boundary, which has otherwise been stagnant. The purpose of the TIF assistance program is to encourage desirable development/redevelopment projects, as well as assist projects that would not otherwise occur "but for" the assistance provided through TIF. The purpose of this document is to provide guidelines for the URA to offer monetary incentives for development activities within the urban renewal district in the form of TIF assistance funds. Approved by Urban Renewal Agency XXXX PROGRAM OBJECTIVES The primary objective of the TIF assistance program is to encourage investment in development and redevelopment of mixed -use, commercial and multi -family (four units or more) within the district in accordance with the provisions of Montana Urban Renewal Law. Additional objectives within the urban renewal district include: • Expand the property tax base in the district through private investment in income producing properties; • Stimulate economic and business development within the district by improving public infrastructure deficiencies; and • Reduce blighted properties within the district. POLICIES 1. TIF assistance will be given to projects that do not have the financial feasibility to proceed without the benefits of the TIF fund assistance. 2. The applicant shall provide market and feasibility studies, appraisals, etc. provided to private lenders of the project as well as any other information the URA, or Kalispell City Council may require in order to review the need for TIF assistance. 3. The applicant shall be able to demonstrate their ability to construct, operate and maintain the proposed project based on past experience, general reputation and credit history. 4. TIF assistance will not be used for projects that place an extraordinary demand on the district infrastructure. 5. The relationship of private investment to public investment of a project shall be significant enough to ensure prudent investment of public funds within the TIF District. A prudent expenditure would equate to $1 of public money for every $9 of private money invested in a project. 6. The applicant shall retain ownership of the project long enough to complete it, occupy it, establish property management, and initiate payment of taxes based on the increased project value. CRITERIA FOR REVIEWING FUNDING APPLICATIONS In reviewing the TIF assistance application the URA will evaluate each project utilizing the following criteria. When an application is submitted, documentation demonstrating adherence to the criteria must be submitted with the application. Tax Generation — In order for the Downtown Kalispell TIF District to stay economically healthy for the maximum benefit to the district and community, a project is expected to generate new taxes. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor's office or State Department of Revenue to determine tax increase generation. 2. Elimination of Blight The project's direct and indirect impact on the physical deterioration within the TIF. Approved by Urban Renewal Agency XXXX 2 Investment— The project's potential for subsequent investment within the TIF district. 4. Unique Opportunities — The project's potential to present a unique opportunity, meet a special need, or address specific TIF district or community goals such as filling a market niche or providing an un-met community need. 5. Job Creation— Projects that create opportunities for new employment contribute to the economic vitality of the district and community in a variety of ways. Projects creating five or more full-time equivalent jobs would be considered to have a significant positive impact on the economic well-being of the district, and will be given greater priority. Additionally, new jobs that pay at or above the median county income level will be given priority. 6. Urban Renewal Goals —The project's ability to significantly further specific goals found in the Downtown Kalispell Urban Renewal Plan and Growth Policy goals and policies. 7. Environmental Impacts — The project's ability to positively impact the environment in terms of brownfields cleanup, noise, dust, and traffic reduction; pollution reduction, etc. 8. Project Feasibility — A determination of feasibility is made based on the strength of the applicant's demonstration of market demand for the project as contained primarily on the pro forma and financing commitments. 9. Applicant's ability to perform — An assessment of the applicant's capability to undertake the relative complexities of the project based on past performance and the project design and management team on similar projects based on the complexity of the project. 10. Timely Completion — The feasibility of completing the project according to the applicant's proposed project schedule. 11. Urban Development — Redevelopment that considers the downtown's character and promotes a mix of uses emphasizing retail uses on the main floor and offices or residential uses on upper floors. 12. Parking Recognize that there are special parking considerations downtown which differ from other areas. A project should use innovative parking management and shared parking provisions, including for general public use. 13. Housing Increases housing units, including integrating a variety of residential housing types to accommodate people of different age groups and income levels. 14. Recreation Incorporates amenities into the development such as pocket parks, activity nodes and gathering spaces. 15. Facilities Public Health and Mobility Project will construct or improve sidewalks, including ADA access to buildings. Approved by Urban Renewal Agency XXXX 16. Promotes Active Transportation — Project promotes bicycling as a transportation option. 17. Building The quality of development and overall aesthetics are beyond that which is minimally required by the UBC. 18. Alternative Transportation — Project promotes the use of transit, ride sharing, car sharing, etc. ELIGIBLE ACTIVITIES Per Montana State Law (7-15-4288 M.C.A.) tax increments may be used by the local government to pay the following costs of or incurred in connection with an urban renewal area or targeted economic development district as identified in the urban renewal plan or targeted economic development district comprehensive development plan: 1. Land acquisition; 2. Demolition and removal of structures; 3. Relocation of occupants; 4. The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; 5. Costs incurred in connection with the redevelopment activities allowed under 7-15-4233; 6. Acquisition of infrastructure -deficient areas or portions of areas; 7. Administrative costs associated with the management of the urban renewal area or targeted economic development district; 8. Assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the local government itself at its fair value; 9. The compilation and analysis of pertinent information required to adequately determine the needs of the urban renewal area or targeted economic development district; 10. The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district; Approved by Urban Renewal Agency XXXX A 11. The provision of direct assistance to secondary value -adding industries to assist in meeting their infrastructure and land needs within the area or district; and 12. The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. ELIGIBLE APPLICANTS • Property owners or their designated representatives whose property is located within the TIF district are eligible to apply ELIGIBLE PROPERTIES Properties must be located inside the Downtown Kalispell TIF district and be: • Commercial • Mixed -use • Multi -family properties consisting of four or more units APPLICATION PROCESS Applicants must submit a complete written application for each TIF project to the City of Kalispell Community and Economic Development Department. The TIF application is available online at http://kalispell.com/community_ economic_ development/ under `online applications' or by contacting the Community and Economic Development Department. Completed applications must be received at least ten business days prior to the URA board meeting at which time the application will be considered. This is to allow adequate time for a thorough staff review of the application for presentation to the URA committee. Incomplete applications will be returned to the applicant with an explanation on the additional information required. The following procedure has been developed to expedite the review of TIF funding requests: Initial contact- Contact the Community and Economic Development Department, City of Kalispell, 201 First Avenue East, Kalispell MT 59901, (406) 758-7713, kking(cr�,kalispell.com to discuss the project and determine eligibility for TIF assistance. 2. Complete a TIF application with required attachments- The applicant must prepare a TIF application for each funding request and include all required attachments. The Community and Economic Development staff will assist the applicant in preparing the application. 3. Board review and approval- Upon submittal of all necessary information, the URA will review the merits of the project and the need for funding. At any point in the review process the Community and Economic Development Department staff or URA may request more information of the applicant or solicit comment on the project from other public agencies. Items included in personal financial statements will not be subject to public review, presentation, or comment by other agencies. The URA will review the project, and issue a recommendation on the funding request or any part thereof, and any special terms of TIF Approved by Urban Renewal Agency XXXX 7 assistance to Kalispell City Council. Applicants are encouraged to be present during this review. 4. City Council review and approval- The Kalispell City Council shall act on applications within 30 days of URA recommendation, and take formal action to approve or deny the request. Applicants are encouraged to be present during this review. 5. Development agreement- Upon approval by Kalispell City Council, the City of Kalispell and the applicant must execute a legally binding Development Agreement which establishes the terms and conditions of the TIF assistance. Among the terms and conditions, the agreement shall specify the schedule for the start and completion of the project. The Development Agreement must be executed within six months of City Council approval; if not completed by this time the applicant must re -apply for project funding. IMPORTANT: Costs to be paid with TIF monies may not be incurred by the applicant prior to funding approval and the satisfaction of any conditions of such approval unless specific approval has been granted by the Kalispell City Council. Any expenditure is solely at the risk of the applicant if the project is not approved. TIF monies will not always be available to the applicant at time of building permit. In those cases, the city will work with the applicant and develop a payback agreement based on the projected tax revenues created by the project. Other compliance and code requirements may apply. URA recommendation and City Council approval of funding does not relieve the applicant's responsibility to secure all necessary permits. All requests for loan dollars will be subject to approval by the City of Kalispell Revolving Loan Fund Committee. City of Kalispell Community and Economic Development Department Revolving Loan Fund Policy and Procedures will apply to all loans. Current financial statements for each shareholder involved in the project may be required, as well as documentation of financial capacity. This information will be kept confidential, subject to challenge in a court of law. Approved by Urban Renewal Agency XXXX 11- Downtown Kalispell Tax Increment Financing District Programs: I Public/Private Incentive Grant Programs: Grant Programs: • Shared Utilities 9 • Street Tree Placement 10 • Sidewalk Placement 11 • Historic Facade Restoration II. Private Incentive Programs: Loan Programs: • Facade Improvement 13 • Rehabilitation/Code Compliance 14 • Site Demolition, Cleanup, and Preparation 16 • Technical Assistance 17 III. Public Infrastructure • Projects as recommended by City Council 18 Approved by Urban Renewal Agency XXXX L PUBLIC/PRIVATE INCENTIVE GRANT PROGRAMS Shared Utilities Program Objectives: The primary objective of the Shared Utilities Program is to improve shared public services such as water, sewer, sidewalks, parking (shared), and traffic circulation within the TIF District. Guidelines: Shared Utilities projects may be eligible for a grant related to 100% of all public infrastructure costs, including impact fees. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the URA and Kalispell City Council. Maintenance obligations are that of the property owner. Costs incurred in connection with redevelopment activities allowed under Montana State Law 7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred • 7-75-4288 (10)- The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district Kalispell Growth Policy Plan -It 2035 Recommendations: Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area Policy (8) — Encourage development and redevelopment by creating incentives for developers to offset infrastructure and other site costs. Kalispell Growth Policy Plan -It 2035, Chapter 4 Housing recommendation 2 — Investigate alternative funding mechanisms to reduce impact fees. Kalispell Growth Policy Plan -It 2035, Chapter 4 Business and Industry recommendation 3 — Explore alternative funding mechanisms for infrastructure to eliminate reliance on impact fees. The Downtown Plan Goals: • Chapter 4, Implementation Goal 3 (d) — Upgrade inadequate infrastructure including city Approved by Urban Renewal Agency XXXX 10 water mains for fire flows to accommodate the full use of historic buildings downtown. • Chapter 4, Implementation Goal 3 (e) — Develop a revolving loan/grant program using TIF or other funding resources to help business fund necessary infrastructure or property reinvestment. Chapter 4, Implementation Goal 3 (g) — Provide infrastructure that supports new technology, i.e. — WIFI, fiber-optic, etc. Examples of Eligible Activities: Projects benefiting more than one business Impact fees Examples of Ineligible Activities: • Permit Fees • Utilities benefiting only the applicant's property Street Tree Placement Program Objectives: The primary objective of the Street Tree Placement Program is to encourage the placement of street trees through the City of Kalispell Tree Placement and Maintenance Program per City Council Ordinance 1086. Guidelines: Street Tree Placement Program projects may be eligible for a 50150 matching grant up to $5,000 for street trees not part of a larger development project. Eligible applicants will work with the City of Kalispell Parks and Recreation Department's Tree Placement and Maintenance Program. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. The Downtown Plan Goals: • Chapter 3, Implementation Goal 5 (f) — Increase landscaping to soften the area and create more appealing location. Examples of Eligible Activities: • New street tree placement within public right-of-way • Irrigation systems limited to the life of the tree Approved by Urban Renewal Agency XXXX 11 Ineligible Activities: • Trees being placed outside the public right-of-way Sidewalk Placement Program Objectives: The primary objective of the Sidewalk Placement Program is to encourage development, and provide safe pedestrian navigation from business to business in the TIF District. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines: Sidewalk Placement Program projects may be eligible for a 50% matching grant up to $5,000 for projects constructing or replacing sidewalks not part of a larger development project. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed under 7-15-4233. 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. The Downtown Plan Goals: • Chapter 4, Implementation Goal 4 (c) — Improve pedestrian and bike access throughout the plan area to improve safety and mobility. Example of Eligible Activities: • Sidewalk placement in the public right-of-way • Handicap ramps at intersections Examples of Ineligible Activities • Sidewalk out of the public right-of-way Historic Facade Restoration Program Objectives: The primary objective of the Historic Facade Restoration Program is to encourage voluntary Approved by Urban Renewal Agency XXXX 12 repair and rehabilitation of commercial, mixed -use and multi -family property (minimum of 4 units) in the Downtown TIF District in a way that advances the aesthetic environment and enhances the pedestrian experience. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention, and expansion of employment in the district. Guidelines: Historic facade restoration projects may be eligible for a 50% matching grant up to $50,000. Some projects may also qualify for additional funding under the Fagade Improvement Loan Program. To qualify under the historic fagade restoration program, buildings must either be individually listed on the National Register of Historic Places, in a designated historic district, or at least 50 years old. Historic photographs of Kalispell and its downtown store fronts may be available and should be used when determining the original character of a building design. Applicants should make a reasonable effort to provide historic images of the building. If no image is available the applicant should provide research on materials and building styles consistent with the construction date of the building or other appropriate time period. Materials and workmanship should accurately replicate the historic fagade. Rehabilitation is limited to building facades visible from the street. Improvements shall be scaled to the pedestrian and provide visual interest both day and night. Effort should be made to facilitate access into the building and to create a building facade which conveys permanence and improves the aesthetics of the area. Improvements shall incorporate green building techniques and energy efficiency measures where feasible. Non -conforming improvements, per municipal zoning and building codes, shall not be considered. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area The Downtown Plan Goals: • Chapter 4, Implementation Goal 3(c) — Offer incentives to encourage historic facade and exterior amenity improvements. • Chapter 4, Implementation Goal 5 (a) — Craft architectural design standards that are downtown specific that encourage renovations and new construction to blend in with and enhance the current historic flavor of the downtown. Design Criteria: The URA will review the design for compatibility and appropriateness based upon the project's architectural design, historic appearance, and site plan in the context of adjacent structures, the immediate neighborhood. Approved by Urban Renewal Agency XXXX 13 Examples of Eligible Activities Projects that preserve the storefront's character defining elements such as: display windows, transom, kickplate, entry, upper -story windows, and cornice molding Projects that avoid use of materials that were unavailable when the storefront was constructed (vinyl, aluminum siding, mirrored/tinted glass, artificial stone, and brick veneer) and use paint colors based on the buildings historical appearance Examples of Ineligible Activities • Interior rehabilitation • Roof and re -roofing unless the roof is a prominent historic fagade element which is visible from the street or sidewalk • Structural foundations • Security bars • New construction or additions • Site improvements in the public right-of-way including sidewalks, curb, and gutter, and planters IL PRIVATE INVESTMENT PROGRAMS Facade Improvement Program Objectives: The primary objective of the Fagade Improvement Program is to encourage voluntary repair in the TIF District in a way that advances the aesthetic environment and enhances the pedestrian experience. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines: The Facade Improvement Program is a loan -based program eligible up to $50,000. Terms and rates are subject to the decision of the URA and Revolving Loan Fund Committee. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area • 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution The Downtown Plan Goals: Approved by Urban Renewal Agency XXXX 14 • Chapter 4, Implementation Goal 3(c) — Offer incentives to encourage historic facade and exterior amenity improvements. • Chapter 4, Implementation Goal 5 (a) — Craft architectural design standards that are downtown specific that encourage renovations and new construction to blend in with and enhance the current historic flavor of the downtown. Design Criteria: URA will review the design for compatibility and appropriateness based upon the project's architectural design and site plan in the context of adjacent structures, the immediate neighborhood, and the vision for the TIF District. Facade improvement projects are subject to City of Kalispell Architectural Review Committee and Building Department approvals as appropriate. Rehabilitation is limited to building facades visible from the street. Improvements shall be scaled to the pedestrian and provide visual interest both day and night. Effort should be made to facilitate access into the building and to create a building fagade which conveys permanence and improves the aesthetics of the area. Non -conforming improvements, per municipal zoning and building codes, shall not be considered. Other criteria may be applied by the URA depending on the specifics of the application and the URA's determination of the priorities for redevelopment within the district. Examples of Eligible Activities: • Projects consisting of permanent materials such as stone, brick, or heavy gauge metal (Materials with a limited life span such as EFIS (synthetic stucco) are generally not eligible) • Projects increasing the energy efficiency of the building • Projects using recycled, renewable and otherwise green material • Projects enhancing the pedestrian environment • Projects improving the aesthetics of the district • Projects with architectural detailing addressing pedestrian scale Examples of Ineligible Activities: • Interior rehabilitation • Roof and re -roofing unless the roof is a prominent facade element which is visible from the street or sidewalk • Structural foundations • Security bars • New construction or additions • Site improvements in the public right-of-way including sidewalks, curb, and gutter, and planters Approved by Urban Renewal Agency XXXX 15 Rehabilitation/Code Compliance Program Objectives: The primary objective of the Rehabilitation/Code Compliance Program is to improve the project's interior design and structure, and ensure the building is in compliance with City code. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines: The Rehabilitation/Code Compliance Program is a loan based program eligible up to $50,000. Terms and rates are subject to the decision of the URA and Revolving Loan Fund Committee. Eligible projects are subject to City of Kalispell Architectural Review Committee and Building Department approvals as appropriate. The URA will review the project for compatibility and appropriateness based on the vision for the West Side Urban Renewal- Core Area TIF District. Per the Montana Code Annotated 2013, section 7-15-4206 (17): "Rehabilitation" may include the restoration and renewal of a blighted area or portion of the area in accordance with an urban renewal plan by: (i) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements... Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. Growth Policy Plan -It 2035 Policies: Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area Policy (8) — Encourage development and redevelopment by creating incentives for developers to offset infrastructure and other site costs. Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area Policy (4) — Encourage rehabilitations and reuse of existing downtown buildings. The Downtown Plan Goals: Chapter 4, Implementation Goal 3(i) — Develop cost effective options for meeting existing fire codes. Chapter 4, Implementation Goal 3 (e) — Develop a revolving loan/grant program using TIF or other funding resources to help business fund necessary infrastructure or property reinvestment. Examples of Eligible Activities: Projects addressing ADA Compliance Projects addressing and eliminating specific code violations and conditions that could be Approved by Urban Renewal Agency XXXX 16 injurious to the public's health, safety, and welfare Projects stimulating economic and business developments by providing safe environments for workers, businesses and the public Improvement to the building's interior and /or exterior that address repair and rehabilitation Examples of Ineligible Activities: • Working capital • Product for sale Site Demolition, Cleanup, And Preparation Program Objectives: The primary objective of the Site Demolition/Preparation/Cleanup Program is to prepare sites for redevelopment. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines: Site Demolition/Preparation/Cleanup projects may be eligible for loan funds, and/or a 50% matching grant up to $50,000. Approved projects must be fully prepped for redevelopment, including removing all demolition materials and attractive nuisances, leveling the site, capping all utilities, stabilizing the site from wind and erosion, and securing the site as necessary. Eligible projects must first complete a Phase I and/or Phase II environmental site assessment (ESA) as necessary on the site to characterize the site. Phase I and Phase II ESA's may be done at the property owner's expense, under the City of Kalispell Brownfields Program as funds are available, or as a TIF grant. In the event that environmental remediation is necessary at the site for reuse, a Brownfields clean-up loan or TIF loan may be pursued. Phase II environmental site assessments may eligible for a 50% matching grant, up to $50,000. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4288 (2) Demolition and removal of structures • 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed under 7-15-4233 • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area • 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution Approved by Urban Renewal Agency XXXX 17 The Downtown Plan Goals: • Chapter 4, Implementation Goal 3 (f) — Continue promoting the Brownfields programs in order to prepare environmentally degraded properties for redevelopment. Examples of Eligible Activities: • Phase I and Phase II environmental site assessments • Projects that are fully prepped for redevelopment, including removing all demolition materials and attractive nuisances • Projects leveling the site, capping all utilities, stabilizing the site from wind and erosion, and securing the site as necessary Examples of Ineligible Activities: Construction or reconstruction of the public utilities serving the site Marketing and/or sale of building site or building Technical Assistance Program Objectives: The primary objective of the Technical Assistance Program is to support the applicant with technical assistance during the preliminary phases of site improvement projects within the TIF. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines: The Technical Assistance Program is a grant based program. Eligible applicants may receive up to $5,000. Technical Assistance applicants must submit the biography, resume, and licensing certificate as appropriate for the firm conducting the technical assistance. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area 7-15-4233 (m) To prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements The Downtown Plan Goals: • Chapter 3, Implementation Goal 2 (g) — Begin planning the location and funding for a Approved by Urban Renewal Agency XXXX 18 new parking garage within The Downtown Plan boundary. • Chapter 3, Implementation Goal 4 (b) — Identify major gathering or destination points (Core Area, public buildings, parks, commercial areas) in need of pedestrian access and connection. • Chapter 3, Implementation Goal 6 (b) — Support the creation of a performing arts venue. Examples of Eligible Activities: • Architectural Design • Engineering • Landscape Design • Facade design • Landscape/hardscape design • Marketing and/or feasibility studies Examples of Ineligible Activities: • Demolition/Construction • Permits, building, and appraisal fees III. PUBLIC INFRASTRUCTURE PROGRAMS Public Infrastructure Objectives: As recommended by City Council Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred 7-75-4288 (10)- The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district The Downtown Plan Goals: • See Chapter 4, Implementation Approved by Urban Renewal Agency XXXX Amended West Side Urban Renewal - Core Area Tax Increment Financing Assistance Program City of Kalispell- Urban Renewal Agency City Council Resolution XXXX Date XXXX I Table of Contents Introduction 2 Background Information 2 Program Objectives 2 Policies 3 Criteria for Reviewing Applications 3 Eligible Activities 5 Eligible Applicants 6 Eligible Properties 6 Application Process 6 Important 7 Shared Utilities Program 9 Street Tree Placement Program 10 Sidewalk Placement Program 11 Historic Facade Program 11 Fagade Improvement Program 13 Rehabilitation/Code Compliance Program 15 Site Demolition, Cleanup, and Preparation Program 16 Technical Assistance Program 17 Public Infrastructure Program 18 Approved by Urban Renewal Agency 11812014 INTRODUCTION Tax Increment Financing (hereafter referred to as `TIF') is an important element of economic development in the City of Kalispell as a means to fund development activities. The TIF program operates by first establishing a base year taxable value for all properties within a designated boundary. Property taxes from that boundary or district continue to be paid to all taxing jurisdictions such as schools, county, etc., on the basis of the base year valuation. All increases in property taxes in the district above this tax base valuation due to new development or reappraisals are assigned to the City of Kalispell to be used to fund eligible activities identified within the urban renewal plan for the West Side Urban Renewal -Core Area TIF District. BACKGROUND INFORMATION In 1997, an urban renewal plan was adopted by the Kalispell City Council creating the West Side Urban Renewal Plan and Tax Increment Financing District, (City of Kalispell Resolution 4309). The intent of the plan was to improve the area and encourage redevelopment through the use of TIF as specified by Montana Urban Renewal Law 7-15-42 and 7-15-43, M.C.A. In 2010, pursuant to City of Kalispell Resolution 5435, an Urban Renewal Agency (hereafter referred to as `URA') was established for the purpose of assisting the City Council in evaluating and proposing tax increment finance district plans and projects. This five member committee is responsible for reviewing all TIF applications and making recommendations to Kalispell City Council. In 2012 City of Kalispell Ordinance 1717 modified the boundaries of the Westside Tax Increment Financing District to include an area referred to as the "Core Area". The Core Area is an area encompassing 365 acres. Most initial redevelopment efforts will be focused along the major roadways of Idaho Street, Main Street, Center Street, Meridian Road, and 5th Avenue West North so that a more concentrated impact is realized. In 2013, Kalispell City Council Resolution 5605 adopted as an amendment to the West Side Urban Renewal Plan, the Core Area Plan. The intent is to eliminate blight and encourage redevelopment in the West Side Urban Renewal- Core Area TIF District through the use of TIF as specified by State Law. The goals and objectives of the Core Area Plan lay the groundwork for redevelopment. The language of the planning document encourages the development of innovative and creative projects in Kalispell consistent with this plan. It is the intention of the City of Kalispell to foster creative and innovative projects within the West Side Urban Renewal - Core Area TIF District as well as through the use of its public/ private partnership programs and other available resources. PROGRAM OBJECTIVES The primary objective of the TIF assistance program is to encourage investment in development and redevelopment of mixed -use, commercial and multi -family (four units or more) within the district in accordance with the provisions of Montana Urban Renewal Law. Additional objectives Approved by Urban Renewal Agency 11812014 within the urban renewal district include: • Expand the property tax base in the district through private investment in income producing properties; • Stimulate economic and business development within the district by improving public infrastructure deficiencies; and • Reduce blighted properties within the district. POLICIES 1. TIF assistance will be prioritized to projects that do not have the financial feasibility to proceed without the benefits of the TIF fund assistance. 2. The applicant shall provide market and feasibility studies, appraisals, etc. provided to private lenders of the project as well as any other information the URA, or Kalispell City Council may require in order to review the need for TIF assistance. 3. The applicant shall be able to demonstrate their ability to construct, operate and maintain the proposed project based on past experience, general reputation and credit history. 4. TIF assistance will not be used for projects that place an extraordinary demand on the district infrastructure. 5. The relationship of private investment to public investment of a project shall be significant enough to ensure prudent investment of public funds within the TIF District. A prudent expenditure would equate to $1 of public money for every $9 of private money invested in a project. 6. The applicant shall retain ownership of the project long enough to complete it, occupy it, establish property management, and initiate payment of taxes based on the increased project value. CRITERIA FOR REVIEWING FUNDING APPLICATIONS In reviewing the TIF assistance application the URA will evaluate each project utilizing the following criteria. When an application is submitted, documentation demonstrating adherence to the criteria must be submitted with the application. 1. Tax Generation — In order for the West Side TIF District to stay economically healthy for the maximum benefit to the district and community, a project is expected to generate new taxes. The increase in taxable value due to new construction & rehabilitation is estimated by the County Assessor's office or State Department of Revenue to determine tax increase generation. 2. Elimination of Blight The project's direct and indirect impact on the physical deterioration within the TIF. Investment The project's potential to spur subsequent investment within the TIF district. 4. Unique Opportunities — The project's potential to present a unique opportunity, meet a special need, or address specific TIF district or community goals such as filling a market Approved by Urban Renewal Agency 11812014 4 niche or providing an un-met community need. 5. Job Creation— Projects that create opportunities for new employment contribute to the economic vitality of the district and community in a variety of ways. Projects creating five or more full-time equivalent jobs would be considered to have a significant positive impact on the economic well-being of the district, and will be given greater priority. Additionally, new jobs that pay at or above the median county income level will be given priority. 6. Urban Renewal Goals — The project's ability to significantly further specific goals found in the Westside Urban Renewal Plan and Growth Policy goals and policies. 7. Environmental Impacts — The project's ability to positively impact the environment in terms of brownfields cleanup, noise, dust, and traffic reduction; pollution reduction, etc. 8. Project Feasibility — A determination of feasibility is made based on the strength of the applicant's demonstration of market demand for the project as contained primarily on the pro forma and financing commitments. 9. Applicant's ability to perform — An assessment of the applicant's capability to undertake the relative complexities of the project based on past performance and the project design and management team on similar projects based on the complexity of the project. 10. Timely Completion — The feasibility of completing the project according to the applicant's proposed project schedule. 11. Urban Development — Redevelopment that considers the Core Area vision by promoting a mix of uses emphasizing retail uses on the main floor and offices or residential uses on upper floors. 12. Parking Recognize that there are special parking considerations, which differ from other areas. A project should use innovative parking management and shared parking provisions, including for general public use. 13. Housing Increases housing units, including integrating a variety of residential housing types to accommodate people of different age groups and income levels. 14. Recreation Incorporates amenities into the development such as pocket parks, activity nodes and gathering spaces. 15. Facilities Public Health and Mobility Project will construct or improve sidewalks, including ADA access to buildings. 16. Promotes Active Transportation — Project promotes bicycling as a transportation option. 17. Building The quality of development and overall aesthetics are beyond that which is minimally required by the UBC. Approved by Urban Renewal Agency 11812014 18. Alternative Transportation — Project promotes the use of transit, ride sharing, car sharing, etc. ELIGIBLE ACTIVITIES Per Montana State Law (7-15-4288 M.C.A.) tax increments may be used by the local government to pay the following costs of or incurred in connection with an urban renewal area or targeted economic development district as identified in the urban renewal plan or targeted economic development district comprehensive development plan: 1. Land acquisition; 2. Demolition and removal of structures; 3. Relocation of occupants; 4. The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred; 5. Costs incurred in connection with the redevelopment activities allowed under 7-15-4233; 6. Acquisition of infrastructure -deficient areas or portions of areas; 7. Administrative costs associated with the management of the urban renewal area or targeted economic development district; 8. Assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the local government itself at its fair value; 9. The compilation and analysis of pertinent information required to adequately determine the needs of the urban renewal area or targeted economic development district; 10. The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district; 11. The provision of direct assistance to secondary value -adding industries to assist in meeting their infrastructure and land needs within the area or district; and Approved by Urban Renewal Agency 11812014 A 12. The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. ELIGIBLE APPLICANTS • Property owners or their designated representatives whose property is located within the Core Area are eligible to apply ELIGIBLE PROPERTIES Properties must be located inside the West Side Urban Renewal -Core Area TIF boundary and be: Commercial, Mixed -use, and/or Multi -family properties consisting of four or more units APPLICATION PROCESS Applicants must submit a complete written application for each TIF project to the City of Kalispell Community and Economic Development Department. The TIF application is available online at htlps://kalispell.com/164/Community-Development under `online applications' or by contacting the Community and Economic Development Department. Completed applications must be received at least ten business days prior to the URA board meeting at which time the application will be considered. This is to allow adequate time for a thorough staff review of the application for presentation to the URA committee. The following procedure has been developed to expedite the review of TIF funding requests: 1. Initial contact- Contact the Community and Economic Development Department, City of Kalispell, 201 First Avenue East, Kalispell MT 59901, (406) 758-7713, kking_kkalispell.com to discuss the project and determine eligibility for TIF assistance. 2. Complete a TIF application with required attachments- The applicant must prepare a TIF application for each funding request and include all required attachments. The Community and Economic Development staff will assist the applicant in preparing the application. The application should address the objectives listed on page 3 of this document. Board review and approval- Upon submittal of all necessary information, the URA will review the merits of the project and the need for funding. At any point in the review process the Community and Economic Development Department staff or URA may request more information of the applicant or solicit comment on the project from other public agencies. Items included in personal financial statements will not be subject to public review, presentation, or comment by other agencies. The URA will review the project, and issue a recommendation on the funding request or any part thereof, and any special terms of TIF assistance to Kalispell City Council. Applicants are encouraged to be present during this review. Approved by Urban Renewal Agency 11812014 7 3. City Council review and approval- The Kalispell City Council shall act on applications within 30 days of URA recommendation, and take formal action to approve or deny the request. Applicants are encouraged to be present during this review. 4. Development agreement- Upon approval by Kalispell City Council, the City of Kalispell and the applicant must execute a legally binding Development Agreement which establishes the terms and conditions of the TIF assistance. Among the terms and conditions, the agreement shall specify the schedule for the start and completion of the project. The Development Agreement must be executed within six months of City Council approval; if not completed by this time the applicant must re -apply for project funding. IMPORTANT: Kalispell TIF's are managed on a reimbursement basis. Costs to be paid with TIF monies may not be incurred by the applicant prior to funding approval and the satisfaction of any conditions of such approval unless specific approval has been granted by the Kalispell City Council. Any expenditure is solely at the risk of the applicant if the project is not approved. TIF monies will not always be available to the applicant at time of construction. In those cases, the city will work with the applicant and develop a payback agreement based on the projected tax revenues created by the project. Other compliance and code requirements may apply. URA recommendation and City Council approval of funding does not relieve the applicant's responsibility to secure all necessary permits. All requests for loan dollars will be subject to approval by the City of Kalispell Revolving Loan Fund Committee. City of Kalispell Community and Economic Development Department Revolving Loan Fund Policy and Procedures will apply to all loans. Current financial statements for each shareholder involved in the project may be required, as well as documentation of financial capacity. This information will be kept confidential, subject to challenge in a court of law. Approved by Urban Renewal Agency 11812014 E, West Side Urban Renewal -Core Area Tax Increment Financing District Programs: L Public/Private Incentive Grant Programs: • Shared Utilities 9 • Street Tree Placement 10 • Sidewalk Placement 11 • Historic Facade Restoration 11 IL Private Investment Loan Programs: • Facade Improvement 13 • Rehabilitation/Code Compliance 15 • Site Demolition, Cleanup, and Preparation 16 • Technical Assistance 17 III. Public Infrastructure • Projects as recommended by City Council 19 Approved by Urban Renewal Agency 11812014 L PUBLICIPRIVATE INVESTMENT PROGRAMS: Shared Utilities Program Objectives: The primary objective of the Shared Utilities Program is to improve shared public services such as water, sewer, sidewalks, parking (shared), and traffic circulation within the TIF District. Guidelines: Shared Utilities projects may be eligible for a grant related to 100% of all public infrastructure costs, including impact fees. No funds will be disbursed until all completion criteria have been satisfactorily met as determined by the URA and Kalispell City Council. Maintenance obligations are that of the property owner. Costs incurred in connection with redevelopment activities allowed under Montana State Law 7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred 7-75-4288 (10)- The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district Kalispell Growth Policy Plan -It 2035 Recommendations: Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area Policy (8) — Encourage development and redevelopment by creating incentives for developers to offset infrastructure and other site costs. Kalispell Growth Policy Plan -It 2035, Chapter 4 Housing recommendation 2 — Investigate alternative funding mechanisms to reduce impact fees. Kalispell Growth Policy Plan -It 2035, Chapter 4 Business and Industry recommendation 3 — Explore alternative funding mechanisms for infrastructure to eliminate reliance on impact fees. Approved by Urban Renewal Agency 11812014 10 Core Area Plan Goals: Chapter 4 Vision & Goals 910. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. Examples of Eligible Activities: Projects benefiting more than one business Impact fees Examples of Ineligible Activities: • Permit Fees • Utilities benefiting only the applicant's property Street Tree Placement Program Objectives The primary objective of the Street Tree Placement Program is to encourage the placement of street trees through the City of Kalispell Tree Placement and Maintenance Program per City Council Ordinance 1086. Guidelines Street Tree Placement Program projects may be eligible for a 50150 matching grant up to $5,000. Eligible applicants will work with the City of Kalispell Parks and Recreation Department's Tree Placement and Maintenance Program. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. Core Area Plan Goals: Chapter 2 Goals for Our Future # 8. New development and redevelopment that incorporates parks, landscaped boulevards, open spaces for casual public interaction and landscaping that compliments architecture and the neighborhood to encourage active use of the built environment. Examples of Eligible Activities • New street tree placement within public right-of-way • Irrigation systems limited to the life of the tree Ineligible Activities Approved by Urban Renewal Agency 11812014 11 • Trees being placed outside the public right-of-way Sidewalk Placement Program Objectives The primary objective of the Sidewalk Placement Program is to encourage development, and provide safe pedestrian navigation from business to business in the West Side Core Area TIF District. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines Sidewalk Placement Program projects may be eligible for a 50% matching grant up to $5,000 for projects constructing or replacing sidewalks not part of a larger development project. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed under 7-15-4233. 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. Core Area Plan Goals: Chapter 4 Vision & Goals # 11. Improve pedestrian and bike access throughout the Core Area. a. Target a program to replace existing walks in deteriorated condition. i. Establish a dedicated funding source for sidewalk replacement. ii. Share cost 50-50 between abutting property owner and City. iii_ Identify key routes where the public may need to take a greater share to ensure complete routes are completed. Example of Eligible Activities • Sidewalk placement in the public right-of-way • Handicap ramps at intersections Examples of Ineligible Activities • Sidewalk out of the public -right-of-way. Historic Facade Restoration Program Approved by Urban Renewal Agency 11812014 12 Objectives The primary objective of the Historic Facade Restoration Program is to encourage voluntary repair and rehabilitation of commercial, mixed -use and multi -family property (minimum of 4 units) in the West Side Urban Renewal -Core Area TIF District in a way that advances the aesthetic environment and enhances the pedestrian experience. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention, and expansion of employment in the district. Guidelines Historic fagade restoration projects may be eligible for a 50% matching grant up to $50,000. Some projects may also qualify for additional funding under the Facade Improvement Loan Program. To qualify under the historic facade restoration program, buildings must either be individually listed on the National Register of Historic Places, in a designated historic district, or at least 50 years old. Historic photographs of Kalispell and its Core Area store fronts may be available and should be used when determining the original character of a building design. Applicants should make a reasonable effort to provide historic images of the building. If no image is available the applicant should provide research on materials and building styles consistent with the construction date of the building or other appropriate time period. Materials and workmanship should accurately replicate the historic facade. Rehabilitation is limited to building facades visible from the street. Improvements shall be scaled to the pedestrian and provide visual interest both day and night. Effort should be made to facilitate access into the building and to create a building facade which conveys permanence and improves the aesthetics of the area. Improvements shall incorporate green building techniques and energy efficiency measures where feasible. Non -conforming improvements, per municipal zoning and building codes, shall not be considered. Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4233 (i) to improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area Core Area Plan Goals: Chapter 2 Goals for Our Future 95. A functional, physical and architectural connection between the traditional downtown and other surrounding neighborhoods and the Core Area as appropriate. Chapter 4 Vision & Goals 910. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. a. Develop a revolving loan/grant program using TIF or other funding sources i. Encourage facade and exterior amenities improvements ii. Offer incentives for expansion and mixed use opportunities Design Criteria The URA will review the design for compatibility and appropriateness based upon the project's Approved by Urban Renewal Agency 11812014 13 architectural design, historic appearance, and site plan in the context of adjacent structures, the immediate neighborhood, and the vision for the West Side Urban Renewal- Core Area TIF District. All projects are subject to Site Review Committee and Architectural Review Committee approval. Examples of Eligible Activities Projects that preserve the storefront's character defining elements such as: display windows, transom, kickplate, entry, upper -story windows, and cornice molding Projects that avoid use of materials that were unavailable when the storefront was constructed (vinyl, aluminum siding, mirrored/tinted glass, artificial stone, and brick veneer) and use paint colors based on the buildings historical appearance Examples of Ineligible Activities • Interior rehabilitation • Roof and re -roofing unless the roof is a prominent historic facade element which is visible from the street or sidewalk • Structural foundations • Security bars • New construction or additions • Site improvements in the public right-of-way including sidewalks, curb, and gutter, and planters II. PRIVATE INVESTMENT PROGRAMS Facade Improvement Program Objectives The primary objective of the Facade Improvement Program is to encourage voluntary repair in the West Side Urban Renewal -Core Area TIF District in a way that advances the aesthetic environment and enhances the pedestrian experience. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines The Facade Improvement Program is a loan based program eligible up to $50,000. Terms and rates are subject to the decision of the URA and Revolving Loan Fund Committee. Costs incurred in connection with redevelopment activities allowed under Montana State Law 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area Approved by Urban Renewal Agency 11812014 14 • 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution Core Area Plan Goals: Chapter 2 Goals for Our Future 95. A functional, physical and architectural connection between the traditional downtown and other surrounding neighborhoods and the Core Area as appropriate. Chapter 4 Vision & Goals 910. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. a. Develop a revolving loan/grant program using TIF or other funding sources i. Encourage fagade and exterior amenities improvements ii. Offer incentives for expansion and mixed use opportunities iii. Actively advertise and promote this program Chapter 4 Vision & Goals 914. Amend the city's architectural design standards. a. Work with the public, business owners, property owners and the city's Architectural Review Committee to develop design guidelines tailored for the Core Area Design Criteria URA will review the design for compatibility and appropriateness based upon the project's architectural design and site plan in the context of adjacent structures, the immediate neighborhood, and the vision for West Side Urban Renewal- Core Area TIF District. Facade improvement projects are subject to City of Kalispell Architectural Review Committee and Building Department approvals as appropriate. Rehabilitation is limited to building fagades visible from the street. Improvements shall be scaled to the pedestrian and provide visual interest both day and night. Effort should be made to facilitate access into the building and to create a building facade which conveys permanence and improves the aesthetics of the area. Improvements shall incorporate green building techniques and energy efficiency measures where feasible. Non -conforming improvements, per municipal zoning and building codes, shall not be considered. Other criteria may be applied by the URA depending on the specifics of the application and the URA's determination of the priorities for redevelopment within the district. Examples of Eligible Activities • Projects consisting of permanent materials such as stone, brick, or heavy gauge metal (Materials with a limited life span such as EFIS (synthetic stucco) are generally not eligible) • Projects increasing the energy efficiency of the building • Projects using recycled, renewable and otherwise green material • Projects enhancing the pedestrian environment • Projects improving the aesthetics of the district Approved by Urban Renewal Agency 11812014 15 • Projects with architectural detailing addressing pedestrian scale Examples of Ineligible Activities • Interior rehabilitation • Roof and re -roofing unless the roof is a prominent fagade element which is visible from the street or sidewalk • Structural foundations • Security bars • New construction or additions • Site improvements in the public right-of-way including sidewalks, curb, and gutter, and planters Rehabilitation/Code Compliance Program Objectives The primary objective of the Rehabilitation/Code Compliance Program is to improve the project's interior design and structure, and ensure the building is in compliance with City code. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines The Rehabilitation/Code Compliance Program is a loan based program eligible up to $50,000. Terms and rates are subject to the decision of the URA and Revolving Loan Fund Committee. Eligible projects are subject to City of Kalispell Architectural Review Committee and Building Department approvals as appropriate. The URA will review the project for compatibility and appropriateness based on the vision for the West Side Urban Renewal- Core Area TIF District. Per the Montana Code Annotated 2013, section 7-15-4206 (17): "Rehabilitation" may include the restoration and renewal of a blighted area or portion of the area in accordance with an urban renewal plan by: (i) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements... Costs incurred in connection with redevelopment activities allowed under Montana State Law 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area. Core Area Plan Goals: Chapter 4 Vision & Goals #10. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. Approved by Urban Renewal Agency 11812014 16 a. Develop a revolving loan/grant program using TIF or other funding sources iv. Encourage facade and exterior amenities improvements v. Offer incentives for expansion and mixed use opportunities vi. Actively advertise and promote this program Examples of Eligible Activities • Projects addressing ADA Compliance • Projects addressing and eliminating specific code violations and conditions that could be injurious to the public's health, safety, and welfare • Projects stimulating economic and business developments by providing safe environments for workers, businesses and the public • Improvement to the building's interior and /or exterior that address repair and rehabilitation Examples of Ineligible Activities • Working capital • Product for sale Site Demolition, Cleanup, And Preparation Program Objectives The primary objective of the Site Demolition/Preparation/Cleanup Program is to prepare sites for redevelopment. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines Site Demolition/Preparation/Cleanup projects may be eligible for loan funds, and/or a 50% matching grant up to $50,000. Approved projects must be fully prepped for redevelopment, including removing all demolition materials and attractive nuisances, leveling the site, capping all utilities, stabilizing the site from wind and erosion, and securing the site as necessary. Eligible projects must first complete a Phase I and/or Phase II environmental site assessment (ESA) as necessary on the site to characterize the site. Phase I and Phase II ESA's may be done at the property owner's expense, under the City of Kalispell Brownfields Program as funds are available, or as a Core Area TIF grant. In the event that environmental remediation is necessary at the site for reuse, a Brownfields clean-up loan or TIF loan may be pursued. Phase II environmental site assessments may eligible for a 50% matching grant, up to $50,000. Costs incurred in connection with redevelopment activities allowed under Montana State Law Approved by Urban Renewal Agency 11812014 17 • 7-15-4288 (2) Demolition and removal of structures • 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed under 7-15-4233 • 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area • 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution Core Area Plan Goals: Chapter 4 Vision & Goals 99. Remove/clear all vacant or blighted properties in the Core Area for the key purpose of redevelopment. a. Develop a financial assistance program to help property owners clear vacant and hazardous buildings and assist the property owner to prepare a site for redevelopment (scrap and bake program). Chapter 4 Vision & Goals 9 8. A viable Brownfield program in the Core Area. a. Target the Core Area as a priority Brownfield area. b. Maintain a funding pool of grant and loan funds at the city level to address Brownfield issues. c. Advocate for the clearance of existing identified Brownfield sites including UST and LUST sites. Proactively contact those property owners on a regular basis offering available services to mitigate the issues. Examples of Eligible Activities • Phase I and Phase II environmental site assessments • Projects that are fully prepped for redevelopment, including removing all demolition materials and attractive nuisances • Projects leveling the site, capping all utilities, stabilizing the site from wind and erosion, and securing the site as necessary Examples of Ineligible Activities Construction or reconstruction of the public utilities serving the site Marketing and/or sale of building site or building Technical Assistance Program Objectives The primary objective of the Technical Assistance Program is to support the applicant with Approved by Urban Renewal Agency 11812014 18 technical assistance during the preliminary phases of site improvement projects within the Westside Urban Renewal Plan- Core Area TIF. Additional objectives include expanding the property tax base, stimulation of business and economic development and retention and expansion of employment in the district. Guidelines The Technical Assistance Program is a grant based program. Eligible applicants may receive up to $5,000. Technical Assistance applicants must submit the biography, resume, and licensing certificate as appropriate for the firm conducting the technical assistance. Costs incurred in connection with redevelopment activities allowed under Montana State Law 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal property in an urban renewal area 7-15-4233 (m) To prepare plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements Core Area Plan Goals: Chapter 2 Goals for Our Future 45. A functional, physical and architectural connection between the traditional downtown and other surrounding neighborhoods and the Core Area as appropriate. Chapter 2 Goals for Our Future # 8. New development and redevelopment that incorporates parks, landscaped boulevards, open spaces for casual public interaction and landscaping that compliments architecture and the neighborhood to encourage active use of the built environment. Chapter 4 Vision & Goals #10. Develop and fund a loan/grant program that offers incentives to commercial property owners to improve/upgrade their properties. a. Develop a revolving loan/grant program using TIF or other funding sources i. Encourage facade and exterior amenities improvements Examples of Eligible Activities • Architectural Design • Engineering • Landscape Design • Facade design • Preliminary development review assistance • Restoration guidance • Renovation/reuse study • Preliminary cost estimates Approved by Urban Renewal Agency 11812014 19 Code analysis Landscape/hardscape design Examples of Ineligible Activities • Demolition • Construction • Permits, building, and appraisal fees • Marketing and/or feasibility studies III. PUBLIC INFRASTRUCTURE PROGRAMS: Public Infrastructure Objectives: As recommended by City Council Costs incurred in connection with redevelopment activities allowed under Montana State Law • 7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned buildings, and any public improvements authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and items of personal property to be used in connection with improvements for which the foregoing costs may be incurred • 7-75-4288 (10)- The connection of the urban renewal area or targeted economic development district to existing infrastructure outside the area or district Core Area Goals: • See Chapter 4 of the Core Area Plan, Vision & Goals: First Steps Approved by Urban Renewal Agency 11812014 City of Kalispell Office of Community & Economic Development 201 First Avenue East Kalispell, Montana 59901 www.kalispell.com To: Doug Russell, City Manager From: Katharine King, Assistant Director Community and Economic Development Re: South Kalispell Tax Increment Financing District Traffic Project Update Meeting Date: June 24, 2019 BACKGROUND: In 2018, the City contracted with WGM Group to conduct traffic analysis and design alternatives to address the area along Airport Road where 181" Street and First Street West intersect. Through review by the Urban Renewal Agency (URA) and City Council two options were moved forward for further analysis, design and cost estimations: the 181" Street Realignment and 161" Street Offset. At its February 11, 2019, Work Session, Kalispell City Council reviewed recommendations from URA and information provided by WGM Group regarding potential street realignments and sidewalk extensions in the South Kalispell Tax Increment Finance (TIF) District. Council asked that additional information be gathered regarding the cost of potential property acquisition costs required under the 181" Street Realignment option. Additionally, cost estimates for proposed sidewalk segments have been developed along with a map depicting the existing and proposed pedestrian system in the area. The cost estimates are included in WGM's Memorandum dated June 19, 2019 and are summarized below: Project Component Options: Streets Estimated Cost 181" Street Realignment* and related Snow Storage/Event Parking $1,045,604 161" Street Offset and related Snow Storage/Event Parking $793,643 Project Component Options: Sidewalk Extensions Northern Extension $269,867 Southern Extension $414,768 Total Northern and Southern Extension $684,634 * Note: The 181h Street Realignment cost estimate includes a place holder figure of $75,316 for costs associated with potential land acquisition required for this option. The South Kalispell TIF has $2.1 million available for this project and will sunset on June 30, 2020. Therefore, any project to be completed with South Kalispell TIF funding must have funds committed by this date. Based on the South Kalispell TIF funds available for the project the two street options with both north and south sidewalk extensions proposed would leave a remaining balance as follows for Council designation: South Kalispell TIF Funds Available for Project: $2,100,000 181" Street Realignment: $1,045,604 161" Street Offset: $793,643 North & South Sidewalks: $684,634 North & South Sidewalks: $684,634 Total Cost: $1,730,238 Total Cost: $1,478,277 Est. TIF Funds Remaining: $369,762 Est. TIF Funds Remaining: $621,723 RECOMMENDATION: Staff will update City Council on this project including potential sidewalk extensions and land acquisition. It is recommended the Kalispell City Council review updated information and consider options for the project providing staff guidance on next steps. FISCAL IMPACT: The South Kalispell TIF has approximately $2.1 million available for this project, assuming funds committed by June 30, 2020. ATTACHMENTS: WGM Preliminary Design Alternatives; Property Appraisal; Sidewalk Extensions Memorandum of June 19, 2019; Map of Parcel at 1745 Airport Road, Airport TIF PED System Map. WGMGROUP Community Values. Inspired Futures. u MEMORANDUM DATE: June 19, 2019 TO: Katharine King, Kalispell Community Development Tom Jentz, Kalispell Planning Department FROM: Mike Brodie, P.E. 1111 East Broadway Missoula, MT 59802 406.728.4611 www.wgmgroup.com RE: Preliminary Design Alternatives; Property Appraisal; Sidewalk Extensions At the January 11, 2019 City Council meeting/work session WGM gave a presentation on the preliminary design and associated opinions of probable costs. Council reviewed the designs, with their preferred option being the realignment of 18' Street East, pending land acquisition cost determination. Per council recommendations, WGM was tasked with performing a property appraisal and landowner negotiations to determine the actual price and willingness of the property owner for acquiring this land. Additionally, WGM was tasked with surveying the western portions of Airport Road and 1st Avenue West for potential sidewalk extensions from the intersection project north to 12' Street West and South to the cross walk at the newly constructed Rankin Elementary. The following items are included with this memo: 1. A summary/review of the two intersection improvement alternatives being considered. 2. A timeline of the property appraisal and negotiations for the 18' Street Realignment Alternative. 3. Schematic level designs for extending the sidewalk north and south of the proposed Airport Road Intersection improvements. Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 2 of 7 Summary/Review of Intersection Improvement Alternatives In its current configuration, traffic approaching the intersection of Airport Road and 181" Street from the east and west are misaligned making the intersection difficult to navigate and potentially dangerous. 18th Street Realignment This concept realigns the east leg of 181" Street to square up the intersection and flattens the curve to 1st Ave W to meet a 25-mph design speed. This improves sight distance at the intersection and eliminates the overlapping left turn movement on Airport Road. Flattening the curve will alleviate problems with vehicles running off the road because of the unexpectedly sharp corner that currently exists. At the middle of the flattened curve, driveways will be consolidated to a single access providing optimal site distance for residents accessing 1st Avenue West or 18t" Street West. Street lighting is recommended at the intersection of 18t" Street and Airport Road but will be subject to FAA regulations. Right-of-way acquisition is required for this alternative. 16t" Street Offset The second design removes the west leg of 18t" Street from the intersection and introduces a new street connection approximately 360 feet to the north at 16t" Street West. A two-way stop with a free -flow north and south is proposed at the new intersection with 1st Ave W to accommodate the primary traffic movement. Street lighting is recommended on Airport Road at both intersections. Pedestrian access has been included with a widened path along Airport Road with pedestrian access at the west of the 18t" Street/Airport Road intersection. These accesses can be utilized to extend sidewalks/pedestrian access south along Airport Road with either additional funds available in the Airport TIF or at a later date. Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 3 of 7 Cost Estimates Pre -design cost estimates were developed based on the conceptual alternatives. These estimates include a 15% contingency to reflect the limited amount of design detail at this stage. Estimated project option costs are summarized below. 1811 Street Realignment $553,150 1611 Street Offset $342,088 Snow Storage/Event Parking Lot In the design process, parking was laid out to maximize the City property as a parking lot for nearby events and snow storage. The addition of parking also requires storm water storage and a collection system which has been included in the costs. The location of the ponds shown in the attached layouts have been selected based on required city of Kalispell setbacks and to avoid existing underground utilities. These costs also include a 15% construction contingency. 181" Street Realignment $318,186 $2,027/parking stall 161" Street Offset $319,281 $2,115/parking stall Overall Costs The overall costs shown in the table below include the combined costs of the above parking and intersection redesign. The below costs have also included a 10% engineering design cost and a 10% construction observation and administration cost. 181" Street Realignment $1,045,604 161" Street Offset $793,643 Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 4 of 7 Property Appraisal and Negotiations Timeline for 1745 Airport Road (18t" Street Realignment) Since the previous council meeting, WGM was tasked with obtaining property appraisal and negotiations to reach a price for acquisition to help solidify the 181" Street Realignment alternative costs and feasibility. The following is a timeline of actions completed to date: March 8, 2019 — WGM Task Order 4 Signed. March 12, 2019 — Clark Appraisal Contract Signed. March 12, 2019 — Flaherty Real Estate Inc. Contract Signed. April 10, 2019 — Property Appraisal Completed by Clark Appraisals. Appraisal included costs for full parcel and parcel required for 18t" Street Realignment. It also contained a 44% reduction in appraised value based on building restrictions from Kalispell Airport runway. May 24, 2019 - Flaherty Real Estate Inc. met with property owner in Kalispell and presented offer letter for appraised costs for required parcel w/ option for purchase. May 27, 2019 - Counter offer letter offer from property owner received by City of Kalispell. In the letter, the owner requested to review the property appraisal. June 3, 2019 — Appraisal was sent to the property owner for review. June 13, 2019 - A second letter was received from the property owner offering three options for acquisition of 1745 airport road property. The options for purchase provided by the property owner are been summarized as follows: 1. The City purchase the entire lot (0.79 acres) for the appraised value plus the 44% reduction outlined in the property appraisal. 2. The City purchase the required portion (0.26 acres) for the appraised value plus the 44% reduction outlined in the property appraisal for the entirety of his property. 3. Removal of the Ordinance 1745 restrictions on the entirety of the property and sale of the required portion at appraised value (no 44% reduction). Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 5 of 7 Sidewalk Extensions In addition to the assessment of the property acquisition parcel for the 18th Street Realignment, WGM was tasked with performing a preliminary design for the extension of sidewalks north and site from the proposed intersection sites. The extension south is proposed for the length of Airport Road from the intersection of 18th Street to the crosswalk just northwest of Rankin Elementary School. The Northern extension begins at the project site and extends North to 12th Street West to serve residents and create a walking route to Legends Stadium from the proposed parking lot (should this alternative be included). The extensions have been broken up into segments for the council's review and prioritization as needed. All segments include a five-foot wide sidewalk and a minimum 6' landscaped boulevard (where possible). In areas where there is no existing curb and gutter, this will be added to match the appropriate city section and associated storm drainage patterns will be adjusted accordingly. The sidewalk has been broken out into the following segments with their associated costs: Northern- .Length-. Cost (1st Avenue W.) 12th Street West (2nd Ave 306.6 $31,549 W. to 1st Ave W.) 1st Avenue West Northern 46.2 $2,873 Piece Private Property Extension 80.2 $50,557 City Shop Frontage 246.8 $184,889 SouthernExtension.. Road) 18th Street to the Courtyard 174.6 $92,947 Subdivision Courtyard Subdivision to 1250 $169,425 Begg Park Drive Begg Park Drive to Teal 730 $81,698 Drive Lofts at Ashley to 157 $70,699 Merganser Drive The total opinion of probable costs for the sidewalk extensions are as follows: Northern Extension $269,867 Southern Extension $414,768 Combined Total $684,634 Each of these segments has been designed at a schematic level (-25% level) and each of these preliminary costs has been itemized and provided in the attachments. A brief description of each segment follows: NORTHERN SEGMENTS 12th Street West (2nd Ave W. to 1st Ave W.) - $31,549 This segment extends the sidewalk east and west along 12th Street west from 2nd Avenue West (the stadium entrance) to 1st Avenue West at the existing sidewalk. There is sufficient Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 6 of 7 right of way in this section to extend sidewalk here but it adjacent residences make use of the "boulevard" as parking for a portion of it and a hedge row and a fence bordering the ROW will require some fence removal/replacement. 1" Avenue West Northern Piece - $3,447 This is an obvious candidate for sidewalk extension. There is a well -used path worn from where the sidewalk from the corner of 12t" Street West and 1st Avenue West ends to the southern end of the segment. There is sufficient right of way in this location and the sidewalk could be installed without impacts to adjacent landscaping or mature street trees. Private Property Extension - $50,557 This segment is tricky. The existing properties are located right up against the edge of pavement leaving little to no room for improvements through these properties. The alternative was priced based on installing alignment sidewalk that would cause the fewest amount of impacts to these property owners in the hopes that an easement could be acquired. No costs have been included in this estimate for property acquisition or negotiation and landowners have not been approached to determine the feasibility of this alternative. City Shops Frontage - $184,889 WGM met with both City of Kalispell Public Works and Planning to discuss this portion of the extension. Based on these discussions it was determined that since public works is installing a fence here along with other improvements to the shop, this project could assist with sidewalk design along the frontage. This design included widening the ROW to accommodate a full city road section (30' from the existing ROW). This cost includes a mill and overlay for the existing paved lane along with the extension to a full city collector street to match areas north of here. It also includes curb and gutter, boulevard landscaping (including street trees), and two 32' wide concrete driveways to eliminate freeflow access to 1st Avenue West. SOUTHERNSEGMENTS The City of Kalispell has currently signed the western parking lane along Airport road as "No Parking" in anticipation of its use as a bike lane. This has been considered in the following designs and hence, only a 5' sidewalk was included rather than a full width multi use path. 181h Street East to Courtyard Subdivision - $77,456 This segment includes the extension from the corner of 18t" Street West and Airport Road South to the existing sidewalk at the Courtyard Apartments. A six-foot boulevard off the existing back of sidewalk was used and driveways where possible will be upgraded to Kalispell standards. One television pedestal will require relocation along with an existing City of Kalispell fire hydrant. Courtyard Subdivision to Begg Park Drive — $169,425 From the Courtyard Apartments south to Begg Park Drive, a six foot boulevard will be added to separate the sidewalk from the future bike path. This cost includes street trees, and the removal of asphalt from several "freeflow" driveways that access businesses. All driveways Preliminary Design; Property Acquisition; and Sidewalk Extensions June 19, 2019 Page 7 of 7 (including the revised commercial accesses) have been upgraded to City standards and ADA ramps have been placed where necessary. Begg Park Drive to Teol Drive—$81,698 This segment extends from the intersection of Begg Park Drive south to the Ashley Creek Bridge and the short segment on the south side of the bridge to Teal Drive. Based on survey there is space above the baseball fields to install this sidewalk and boulevard without requiring any significant grading; just cutting out the space for the base layer and associated gravel. The sidewalk has been pulled in closer to Airport Road as it nears Ashley Creek to match the walking access on the bridge. No safety rails have been included in the costs but it should be considered if this segment is selected and design progresses. On the south of the bridge, to match the existing sidewalk at Teal Drive, a fire hydrant must be relocated. Lofts at Ashley to Merganser Drive— $70,699 The Lofts at Ashley (apartments) have installed a sidewalk from Teal Drive south to the extents of their property. The most southern segment of sidewalk includes the extension of pedestrian access from the termination of the Ashley Lofts sidewalk south to the crosswalk at Rankin Elementary School at the intersection of Airport Road and Merganser Drive. This includes upgrading driveway access at two locations along with boulevard landscaping and street trees. 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