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.