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URA minutes 5-11-16City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 Meeting Summary URBAN RENEWAL AGENCY BOARD MAY 11, 2016-4 P.M. CITY HALL— FIRST FLOOR CONFERENCE ROOM MEMBERS IN ATTENDANCE OTHERS IN ATTENDANCE Chairman Marc Rold Tom Jentz, Kalispell Planning Manager David Girardot Katharine Thompson, Kalispell Community Dev. Manager Jeff Zauner Jarod Nygren, Kalispell Senior Planner Matt Venturini Krista Lammers, Kalispell Community Dev. Coordinator Shannon Freix WELCOME NEW BOARD MEMBERS & INTRODUCTIONS Meeting was called to order at 4:05 p.m. by Chairman Rold. New committee members were welcomed and introductions were made by each board member and each staff member. PUBLIC COMMENT No public comment. APPROVAL OF MEETING MINUTES Meetings minutes approved, Mr. Zauner moved and Mr. Girardot seconded. SOUTH KALISPELL URBAN RENEWAL PLAN RECOMMENDATION Mr. Jentz gave an overview of the plan and public review to this point explaining that the consultant was asked to create a plan update and provide a series of recommendations for South Kalispell and provide five scenarios regarding the airport property: keeping the airport as -is using City funding, closing the airport, requesting FAA funding for the airport in its current alignment, incorporation of the airport into an airport authority and privatization of the airport. Council's role is to adopt the plan and to decide what to do with the plan. Throughout the process CTA has made URA requested modifications, additions and edits to the plan. The South Kalispell Urban Renewal Plan (SKURP) was presented to the Planning Board who reviewed the plan from February to April, 2016. The Planning Board ultimately found that the plan complied with City growth policy and passed that recommendation on to the City Council. Jentz explained that the URA Board's charge is to see if the plan has adequately addressed the issues and redevelopment opportunities in south Kalispell and when those thresholds have been met to move the South Kalispell Urban Renewal Plan on to City Council. Rold emphasized the strong track record of successful recommendations by the URA Board to City Council. Discussion about the SKURP ensued; each member shared their ideal scenario for south Kalispell. Girardot would like to see redevelopment of airport land using TIF funds to buyout leases to ready for private development. He noted that he would have liked to see the economic impact of closing the airport, how many jobs would need to be relocated and stated that some can relocate to Glacier International Airport. Zauner stated that he would like to see what the true cost of closing the airport is, i.e. lease holders personal investments, businesses who make living at airport, not only leases. Zauner shared that he has worked on a comparison of three city -owned properties with leases: KidSports, Buffalo Hill Golf Course, and Kalispell City Airport. He asked if TIF funding is used to close the airport what is the next step. He went on to state that the 10 recommendations for redevelopment in the SKURP will cost the city taxpayers more money in maintenance and operations. Zauner likes the idea of selling the property to a developer, generating taxable revenue and developing the south end of Kalispell much like north end of Kalispell. He stated that there is nothing in the SKURP that a councilman could make a clear cut decision on: Should I close it? At what cost to the taxpayers? He stated that there has been $1.3 million in airport studies over approximately 20 years. Zauner imparted that no more money should be sent on studies, a steering committee should be put together to look at all South Kalispell and airport plans and reports and from there choose the best conclusion. He suggested that a developer be contacted to see what the property is really worth, then come back and make recommendations for south Kalispell. If private development is not going to use Airport TIF funds, let's give TIF funds back to entities when the TIF sunsets, possibly create a larger TIF to encompass more of south Kalispell. Rold stated there is no clear cut solution and that the URA Board has not heard enough from the development committee or airport supporters. The URA asked the airport community to bring forward interested businesses and developers but that didn't happen. He explained there is still a possibility out there, that the URA can recommend to seek proposals from developers and the airport community to do something with airport property with a deadline of 12 months, if no options are offered the airport will be closed and something different will be done on that property. Mr. Venturini concurred with Rold stating a timeline, possibly 12 months, to seek proposals from developers would be appropriate for the airport community and then closure if no interest. Ms. Freix suggested that many of the options have a missing next step, return on investment for the plans 10 redevelopment alternatives have not been measured in the plan. She stated that parks, dog parks and green space increase property values and value to the community, attracting people. She inquired as to whether TIF could sunset and funds could be redistributed back to entities, including the airport. Zauner stated that he supports development in south Kalispell but the City of Kalispell cannot afford the maintenance of more tax exempt redevelopment such as parks, dog parks, the taxpayers would have to foot the bill. Girardot said ideally airport users could form a committee and self -fund the required upgrades for safety. Zauner stated there is not enough data to pass the SKURP to Council, to form a steering committee to go through all airport reports and not spend funds to do so. Zauner moved not to pass the SKURP to Council. There was no second and the motion failed. Freix moved to approve the SKURP and forward it on to Council, with caveats/asterisks attached, meaning additional study of outcomes and timelines be attached. Rold asked for clarification of the motion. Venturini then motioned that the airport should be put out for proposals for redevelopment for up to 12 months for a private investor to take over. She said if the issued is delayed, if there is another study conducted, it is going to cost more in two years than it will cost now. Rold summarized the two motions: The URA Board has moved to forward the South Kalispell Urban Renewal Plan on to Council with a positive recommendation and then recommend to the council that they solicit proposals from outside public and private parties to take over operation and management of the airport. If no viable parties step forward with a credible proposal at the end of the 12 month period, the council should move forward with option 2, as found in the plan, and begin the process of closing the airport. Girardot seconded. Rold, Girardot, Freix and Venturini approved; Zauner opposed. Motion carried on a vote of 4-1. Freix inquired as to Council's next step regarding TIF monies. Rold explained that Council will likely look to the URA Board regarding airport TIF expenditures as decisions regarding South Kalispell are made. GLACIER RAIL PARK TEDD Mr. Nygren gave a brief overview of the Glacier Rail Park Targeted Economic Development District (TEDD): The City of Kalispell in conjunction with the Flathead County Economic Development Authority (FCEDA) is seeking to foster the development of secondary, value adding industries within the Glacier Rail Park Development Plan Area as part of the City's overall mission to meet its needs of promoting economic development, improving area employment opportunities and expanding the community's tax base. This effort would be made possible through the creation of a Targeted Economic Development District (TEDD) on 49 acres of land within the larger Glacier Rail Park Development Plan boundary. The City of Kalispell would need to utilize Tax Increment Financing as part of the overall strategy to provide infrastructure in support of value - adding industry pursuant to the 2013 Targeted Economic Development District Act, embodied in 7-15- 4279, Montana Code Annotated (MCA). The TEDD would provide the City of Kalispell with the ability to employ tax increment financing as provided in 7-15-4282, MCA for appropriate public infrastructure projects in support of "value -adding industry or secondary value-added products or commodities" within the Glacier Rail Park Development Plan boundary. A TEDD does not require URA Board fund recommendation but the Board should to be aware of the TEDD creation. 7 MAIN STREET The 7 Main Street historic facade improvement project is complete and the owners have invited the URA to a tour of the property to see the improvements at the regularly scheduled June 81" URA Board meeting. NEXT SCHEDULED MEETING Board members will continue to hold URA Board meetings the 2nd Tuesday of each month from 4 — 5 p.m. in the City Hall First Floor Conference Room. The next Board meeting will be held Wednesday, June 81" at 4 p.m. The Board will meet at 7 Main Street. ADJOURNED Chairman Rold adjourned the meeting at 5:05 p.m.