Patrick to Council/Airport TIFi
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: Airport TIF
MEETING DATE: March 28, 2005
BACKGROUND: At the last Council meeting the TIF Bonding was tabled for two weeks to
answer Council concerns. One of those concerns was the need to bond instead of alternate forms
of financing. The City, as owner, must pay for the airport improvements so that the FAA will
reimburse the City. The City could use the cash reserves on hand and do some of the projects.
There are not sufficient funds to complete all of the phase one projects. This would require
bonding for something less than one million dollars for this project only. If there were additional
projects in the Urban Renewal District in the near future (and there are several being studied)
there would be insufficient funds for the projects and, if Council wished to proceed, could not be
bonded since it would not be economically feasible. This airport bonding seems to be the most
fiscally responsible means of funding the airport phase one improvements. We can insure that
there would be a ten year call so that the bonds could be paid off and the TIF closed early.
An Urban Renewal Bond would allow for the funding of the Airport Phase One improvements in
a fiscally prudent means allowing for the most flexibility in repaying the loan (through FAA
reimbursement or TIF funds or both) and most fiscal protection for the City by providing
alternate funding sources.
RECOMMENDATION: The Council approve the Resolution to bond the airport
improvements at the next regularly scheduled Council meeting.
Respectfully submitted,
James H. Patrick, City Manager
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