Resolution 4530 - Notice of PH - Modification of West Side Urban Renewal PlanRESOLUTION NO. 4530 2043
RESOLUTION CALLING A PUBLIC HEARING ON A PROPOSED MODIFICATION OF
THE KALISPELL, MONTANA ,URBAN RENEWAL PLAN TO APPROVE CERTAIN
PROJECTS AS URBAN RENEWAL PROJECTS AND TO FINANCE THE PROJECTS
THROUGH THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS AND TO
AMEND ORDINANCE NO. 1259 REGARDING THE PROCEDURE FOR APPROVING
PROJECTS.
BE IT RESOLVED by the City Council (the "Council") of the City
of Kalispell, Montana (the "City"),.as follows:
Section 1. Recitals.
1.01. The Council pursuant to Ordinance No. 1259 (the
"Ordinance"), adopted on March 17, 1997, created the West Side
Urban Renewal District as an urban renewal district (the
"District") and approved the West Side Urban Renewal Plan (the
"Plan") for the District containing a tax increment financing
provision all as set forth in the Ordinance.
1.02. The Plan identifies as Urban Renewal Projects the
Gateway West Mall Redevelopment, the North Meridian Neighborhood
Plan, the Meridian Road Construction Plan, various infrastructure
improvements, including storm drainage, flood plain management, and
expansion of water and sewer mains for the area lying south of U.S.
Highway 2 East of Meridian Road to encourage development.
1.03. The Plan has been in continuous existence since
adoption.
1.04. Based on recent activities and work by the City staff
with respect to property in the District, the City anticipates that
there will be sufficient development in the District to operate
sufficient tax increments to enable the City to issue its tax
increment urban renewal district revenue bonds (the "Bonds") in an
amount sufficient to enable it to fund urban renewal projects
identified in the Plan.
1.05. Pursuant to Flathead County Commissioners' Resolution
No. 1346 (the "Resolution"), Flathead County (the "County") created
the Flathead County Economic Development Authority as a port
authority (the "Authority") on July 22, 1999. The Authority is
authorized to request that the County levy a tax in an amount of up
to 2 mills on all of the property in the County for Port purposes.
The County and the Authority has preliminarily indicated that they
will approve the Gateway West Project as a Port purpose and that
they will, respectively, request, levy and pledge to the City in
furtherance of that Project a portion of its annual 2 mill port
authority levy over a term of 10 years.
Section 2. Projects. The City proposes to approve the
following projects as Urban Renewal Projects:
a. Gateway West Project. The City would acquire an office
facility (the "Complex") in the Gateway West Complex at an
estimated cost of $2,500,000 for the purpose of providing leased
office space to a business enterprise agreeing to provide new jobs
in the City for at least 500 full time employees for a period of
not less than 10 years and agreeing to install taxable property and
equipment in an amount not less than $ 7,300,000.00. The
acquisition price of the Facility will not be greater than fair
market value as evidenced by an MAI appraisal. The City and the
Authority will enter into an agreement for the joint ownership of
the Facility, whereby the Authority will be responsible for the day
to day operation of the Facility. The City's decision to purchase
the Facility is dependent upon receipt of a proposal from a
qualified entity to lease the Facility subject to the terms of a
publicly advertised request for proposal.
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b. Meridian Road Urban Highway Improvement Proiect. This
project consists of storm drainage improvements to Meridian Road.
The project is estimated to cost $350,000, which will be financed
from the proceeds of the Bonds.
c. Lower Spring Creek Improvement Project. This project
consists of storm drainage improvements related to the abatement of
flood level increases on Lower Spring Creek. This project is
estimated to cost $600,000, which will be financed from the
proceeds of the Bonds.
d. Two Mile Drive Road Improvements Project. This project
consists of road improvements to Two Mile Drive to .remedy
substandard existing road cross-section, from Meridian Road to
approximately 500 feet west of Hawthorne Street, a project length
of approximately 1,500 feet. This project is estimated to cost
$750,000, which will be financed from the proceeds of the Bonds.
e. Liberty Street Project. This project consists of
acquiring and installing an emergency generator for the Liberty
Street sewage lift station. This project is estimated to cost
$15,000, which will be financed from the proceeds of the Bonds.
f. Human Service Campus Improvements Project. This project
consists of water and sewer improvements for the Human Service
Campus on Apple Way. This project is estimated to cost $250,000,
which will be financed from the proceeds of the Bonds.
g. Gateway Com lex Im rovements Project. This project
consists of water and sewer improvements for the redevelopment of
Gateway West Complex. This project is estimated to cost $325,000,
which will be financed from the proceeds of the Bonds.
h. District Improvements Project. This project consists of
pavement preservation projects for streets within the District,
street and other general drainage improvements and pedestrian
mobility improvements throughout the District. This project is
estimated to cost $475,000, which will be financed from the
proceeds of the Bonds.
Section 3. Financing objects. The City has determined
based on its annual collection of tax increment in the District and
the amounts to be pledged by Flathead County on behalf of the
Flathead Economic Development Corporation for the Gateway West
Project that it can issue approximately $5,265,000 in principal
amount of tax increment urban renewal revenue bonds payable from
the annual tax increment and the taxes levied by the County (the
"Tax Increment Urban Renewal Bonds" or the "Bonds") which would
allow for the City to undertake the Projects as defined and
identified herein.
Section 4. Findings. The Council hereby finds, with respect
to the Project described in Section 2 hereof, as follows:
a. a workable and feasible plan exists for making
available adequate housing for any persons who may be
displaced by the Projects;
b. the Plan, as modified to include the Projects,
conforms to the comprehensive plan or parts thereof of
the City;
C. the Plan, as modified to include the Projects, will
afford maximum opportunity, consistent with the needs of
the City as a whole, for the rehabilitation or
redevelopment of the District by private enterprise;
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d. a sound and adequate financial program exists for
the financing of each of the Projects, which program
includes the sale and issuance by the City of its urban
renewal tax increment bonds in an amount not to exceed
the costs of the Projects and other Projects heretofore
or hereafter approved by this Council, including
administration costs and costs of issuance of the bonds,
in proportions yet to be determined, for the purpose of
financing all or a portion of the costs of the Projects
as set forth above; and
e. each of the Projects constitutes an urban renewal
project within the meaning of the Act and the Plan.
Section 5. Amendment of Section XIV A of Ordinance No. 1259.
Section XIV (A) shall be amended to read as follows:
(A) The Council may modify and amend the Plan, including
modifications and amendments to designated and approved urban
renewal projects to be undertaken pursuant thereto, excepting
modifications involving the addition or deletion of land from the
Area, by enacting an ordinance providing for and setting forth the
modification and amendment, after a public hearing, notice of said
public hearing on the proposed modification or amendment shall be
given in the official newspaper once a week for two consecutive
weeks preceding the hearing.
Section 6. Public Hearing. A public hearing is hereby called
and shall be held on January 24, 2000 at 7:00 p.m. in the Council
chambers on the proposed modification of the City's Urban Renewal
Plan. If it is necessary to re -schedule or postpone the public
hearing in order to meet the legally required notice requirements,
the City Manager is authorized to re -schedule the public hearing
and make such modifications to the notice as may be required.
Section 7. Bonds. It is anticipated that the City will issue
its Tax Increment Urban Renewal Bonds in an amount sufficient to
fund each of the above described Projects, but not to exceed
$5,265,000 (the "Bonds"). The Bonds will be payable from the tax
increment [generated by the Project] [collected within the Urban
Renewal District] and the revenues derived from the 2 mill levy for
Port Authority purposes to be pledged and appropriated by the
County and the Authority for the Gateway West Project.
Section 8. Notice. Notice of the public hearing shall be
published in the Daily Inter Lake on January 6, 2000 and January
13, 2000 , or as scheduled by the City Manager under 1 5, supra,
in substantially the form attached as Exhibit A hereto.
PASSED AND APPROVED by the City Council of the City of
Kalispell, Montana, this 3rd day of JanuaKy, 2000.
•
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk