H1. Resolution 6029, CDBG Fund Reallocation to ParklineCITY OF
KALISPELL
Report To: Doug Russell, City Manager
Development Services Department
201 1st Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.com/planning
From: Katharine King, Community Development Manager
Subject: Resolution regarding Community Development Block Grant Fund Reallocation
Meeting Date: June 21, 2021
BACKGROUND: On September 14, 2020, Council held a work session regarding the potential
reallocation of fully revolved CDBG monies in the amount of $525,000. Historically, these funds
have been used to make small loans to Kalispell Businesses. At the work session staff presented
multiple options including the potential of using the funds for the Kalispell Parkline construction.
Bids for the construction of the Kalispell Parkline were recently received and there is a need for the
full amount of revolved CDBG funds to support construction of the Kalispell Parkline in accordance
with community priorities. Reallocating the funds will create a lasting benefit to the community as
the project is located within an urban renewal area with the purpose of eliminating blighted
conditions and spurring redevelopment. The only limitations to the re -allocation of the funds are that
the monies be used in a way that they meet one of the three national objectives listed below:
• Benefit to low and moderate income (LMI) persons;
• Aid in prevention or elimination of slums or blight; and
• Meet a need having a particular urgency.
The CDBG Program requires two public hearings for projects. The city held an annual public needs
assessment hearing last November. At the November 2020 hearing, the completion of the trail as part
of the urban renewal plan was documented as a community priority. A second hearing was required
that is project specific. The Kalispell City Council, at their meeting on May 17, 2021, approved
Resolution 6028, which set a public hearing date of June 7, 2021. At the public hearing, Council
took public comment on the proposed CDBG reallocation. At this meeting on June 21, 2021, the
Council can formally reallocate the fully revolved CDBG funds in the amount of $525,000 to support
construction of the Kalispell Parkline.
RECOMMENDATION: It is recommended that Council pass Resolution 6029, a resolution
approving the reallocation of Community Development Block Grant Funds held and managed by the
City of Kalispell to provide additional funding for the Kalispell Parkline construction project.
ALTERNATIVES: As suggested by the City Council.
FISCAL EFFECTS: Reallocation would help fund the construction of the Kalispell Parkline.
ATTACHMENTS: Resolution 6029
RESOLUTION NO. 6029
A RESOLUTION APPROVING THE REALLOCATION OF COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS HELD AND MANAGED BY THE CITY OF KALISPELL TO
PROVIDE ADDITIONAL FUNDING FOR THE KALISPELL PARKLINE CONSTRUCTION
PROJECT.
WHEREAS, the City of Kalispell currently holds and manages Community Development Block Grant
[CDBG] funds in the amount of $525,000 previously received from the Montana
Department of Commerce which the City has allocated and utilized in a revolving loan
fund to provide gap financing in the form of small loans to Kalispell businesses; and
WHEREAS, the subject CDBG funds have been fully revolved and applications for these funds are
now scarce due to the widely available low rate of interest offered by commercial banks;
and
WHEREAS, the City of Kalispell has the option, and may, by resolution, reallocate the subject CDBG
funds to any other purpose that meets the objectives of the CDBG funding; and
WHEREAS, there is currently a need for additional funding for the Kalispell Parkline construction
project which is an urban redevelopment project designed to prevent and eliminate blight
and falls within one of the objectives of CDBG funding; and
WHEREAS, a public hearing was duly noticed and held on June 7, 2021 before the Kalispell City
Council to hear and consider public comment regarding the reallocation of fully revolved
CDBG funds held by the City for the purpose of providing gap financing in the form of
small loans to Kalispell businesses to the purpose of utilizing the funds to support the
construction of the Kalispell Parkline, at which hearing no oral or written negative
comments or evidence was received; and
WHEREAS, the Kalispell City Council finds that it is in the best interest of the taxpayers and
residents of the City to reallocate the fully revolved CDBG funds held by the City to
support the construction of the Kalispell Parkline as a project that meets the national
objectives of CDBG funds.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION 1. Community Development Block Grant [CDBG] funds in the approximate
amount of $525,000 that that are held by the City of Kalispell and have been
fully revolved shall be utilized for the purposes of providing additional funding
for the Kalispell Parkline construction project.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 21ST DAY OF JUNE, 2021.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor