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02-27-23 Work Session Agenda and MaterialsCITY COUNCIL KCITY OF WORK SESSION AGENDA ALISPELL February 27, 2023, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East The public can participate in person in the council chambers or via videoconferencing. Register to join the video conference at: https://us02web.zoom.us/webinar/register/" K-r4hVcUQPaPjCLd4 Hg EQw. Please see the bottom of the agenda for instructions to watch the meeting live. A. CALL TO ORDER B. DISCUSSION 1. Flathead Valley Housing Market Analysis and 2022 Construction, Subdivision and Annexation Report 2. Review of Acts of Panhandling and Roadway Transactions C. PUBLIC COMMENT Persons wishing to address the council are asked to do so at this time. Public comment can be provided in person, verbally during the online meeting, or via email to publi ccomment(2kali spell. com D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS E. ADJOURNMENT UPCOMING SCHEDULE / FOR YOUR INFORMATION Next Regular Meeting — March 6, 2023, at 7:00 p.m. — Council Chambers Next Work Session — March 13, 2023, at 7:00 p.m. — Council Chambers To provide public comment live, remotely, please register for the video conference through zoom and use the raise hand feature to indicate you would like to provide public comment. See the top of the agenda for the zoom link. Watch City Council sessions live or later on Charter Cable Channel 190 or online at hilps://www.kalispell.com/48O/Meeting-Videos. The City does not discriminate on the basis of disability in its programs, services, activities, and employment practices. Accessible parking is available at the rear entrance to City Hall off of the alley, where there is an accessible entrance, and accessible restrooms nearby. Auxiliary aids are also available. For questions about disability accommodations please contact the City Clerk at 406-758-7756. Page 1 of 2 Kalispell City Council Agenda, February 13, 2023 ADMINISTRATIVE CODE Adopted July 1, 1991 Section 2-20 Manner of Addressing Council a. Each person not a Council member shall address the Council, at the time designated in the agenda or as directed by the Council, by stepping to the podium or microphone, giving that person's name and address in an audible tone of voice for the record, and unless further time is granted by the Council, shall limit the address to the Council to three minutes. b. All remarks shall be addressed to the Council as a body and not to any member of the Council or Staff. C. No person, other than the Council and the person having the floor, shall be permitted to enter into any discussion either directly or through a member of the Council, without the permission of the Presiding Officer. d. No question shall be asked of individuals except through the Presiding Officer. PRINCIPLES FOR CIVIL DIALOGUE Adopted by Resolution 5180 on February 5, 2007 ■ We provide a safe environment where individual perspectives are respected, heard, and acknowledged. ■ We are responsible for respectful and courteous dialogue and participation. ■ We respect diverse opinions as a means to find solutions based on common ground. ■ We encourage and value broad community participation. ■ We encourage creative approaches to engage in public participation. ■ We value informed decision -making and take personal responsibility to educate and be educated. ■ We believe that respectful public dialogue fosters healthy community relationships, understanding, and problem solving. ■ We acknowledge, consider and respect the natural tensions created by collaboration, change, and transition. ■ We follow the rules & guidelines established for each meeting. Page 2 of 2 CITY OF KALISPELL City of Kalispell 201 1st Ave E. P.O. Box 1997 Kalispell, Montana 59903-1997 (406) 758-7000 Fax (406)7757 REPORT TO: Mayor Johnson and Kalispell City Council FROM: Doug Russell, City Manager SUBJECT: Flathead Valley Housing Market Analysis and 2022 Construction, Subdivision and Annexation Report MEETING DATE: February 27, 2023 BACKGROUND: At the meeting on 2/21/23, it was requested that Council hold a work session regarding the Flathead Valley Housing Market Analysis report that was produced by the University of Montana's Bureau of Business and Economic Research (BBER). Dr Patrick Barkey with BBER has agreed to join us for the work session and present on the findings in the report and participate in the discussion with the Council. We will additionally review the 2022 Construction, Subdivision and Annexation Report from our Development Services Department to provide a review of Kalispell's recent efforts and activities related to housing. RECOMMENDATION: It is recommended that the City Council receive the presentations and discuss accordingly. ATTACHMENTS: Flathead Valley Housing Market Analysis 2022 Construction, Subdivision and Annexation Report Flathead Valley Housing Market Analysis Final Report Bureau of Business and Economic Research (BBER) The University of Montana Submitted to: Location Ventures February 1, 2023 Acknowledgements This report is an independent analysis of the Flathead County, Montana housing markets produced by the Bureau of Business and Economic Research at the University of Montana. The authors of this report are Patrick Barkey and Derek Sheehan. It was supported by Location Ventures. All conclusions, errors and omissions are those made solely by BBER. The Bureau of Business and Economic Research is the preeminent business research center in the state. Established in the University of Montana's College of Business in 1948, the BBER is involved in survey research, economic analysis, industry studies and its long -running Economic Outlook Seminar programs, now in their 48t' year. For more information on BBER, please visit www.bber.umt.edu. Contents Backgroundand Introduction.......................................................................................................................2 Drivers of the Flathead County Economy..................................................................................................... 5 Causes and Solutions to the Housing Affordability Crisis............................................................................ 7 Projecting the Demand for Housing.............................................................................................................. 9 Understanding the Dynamics of Housing Supply.......................................................................................12 Simultaneity............................................................................................................................................12 Interactions with Local Regulation.........................................................................................................13 The Interdependency of Housing Market Price Tiers.............................................................................13 Appendix.....................................................................................................................................................17 Forecastof Housing Demand......................................................................................................................17 PopulationProjection..............................................................................................................................17 Population Households and Group Quarters...........................................................................................17 HouseholdFormation..............................................................................................................................19 VacancyRates.........................................................................................................................................20 TargetHousing Stock................................................................................................................................. 22 TargetHousing Units.............................................................................................................................. 22 Shortage or Surplus of Housing Units.................................................................................................... 22 Expected Housing Demand 2023-2032..................................................................................................23 References................................................................................................................................................... 25 1 Background and Introduction The Flathead Valley, located in the northwestern portion of Montana just south of the Canadian border and west of Glacier National Park, is one of the most picturesque parts of a geographically spectacular state. Flathead County, home to 104,357 residents in 2020 and representing the fourth largest regional economy in the state, is the economic hub of the Valley. It has evolved from its origins as a timber harvesting and processing -based economy into one with a more diversified, high - amenity economic base with a strong presence of health care, recreation and visitor spending, and high tech and specialty manufacturing industries. For the past twenty years, with the important exception of the great recession period of 2008-2011, Flathead County has experienced brisk growth in both its economy and its population. Between the two decennial Census years of 2010 and 2020, its population grew by 14.8 percent, the fifth fastest of Montana's 56 counties. Most of this growth occurred in the second half of the decade, as the housing market distress associated with the financial panic of the great recession receded into the past. The pandemic's immediate aftermath has pushed already healthy pre -pandemic growth to another level. In 2021, the most recent year for which complete data are available, Flathead County's inflation -corrected growth accelerated to 8.3 percent, the fastest growth in more than 20 years, as measured by nonfarm earnings. This followed a year (2020) that saw growth of 7.3 percent. The factors driving the faster growth were a mix of general and locally specific forces. The recent fast growth in Flathead County, especially in 2021, was an outcome seen nationally, as pandemic restrictions were lifted and consumers spent freely on goods and services of all kinds. More specific to Montana, and particularly to Flathead County, was the increased demand and interest in those living in the largest cities across the nation in less urbanized, less densely populated areas. Figure 1 Net Domestic Migration as Percent of 2020 Population, 2021 Less than.. ial -.I % - 0.2% Over 0.8% s 1% In 2021, Montana experienced a rate of domestic in -migration, defined as the net number of those moving into the state as a fraction of total population, that was second only to Idaho. As shown in Figure 1, the states who had the highest rates in -migration were clustered in the mountain west region and in portions of the the southeast regions of the country. More populous states such as California and New York were among states with the highest rates of negative in -migration, losing residents on net to other states. This in -migration surge was particularly prominent in Flathead County. New arrivals to the county have been the biggest contributor to overall population growth, which surged to more than 3,700 in 2021. The growth benefitted from both the expansion in remote working and the increase in early retirements Figure 2 Components of Population Change, Flathead County, 2011-2021 4,500 4,000 3,500 Q) 3,000 c 2,500 0 2,000 1,500 Q 0 1,000 100] X -500 L L L 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net Migration Natural Change Population Source: U.S. Census — Population and Housing Unit Estimates (PEP) The trend in in -migration clearly has implications for new demand in the Flathead County housing market. Not only the numbers, but the spending power of new arrivals to the region — most of whom relocated from other states — is significant. The average income of households who move to Flathead County exceeded $110,000 in 2020, as shown in Figure 3. This was more than twice as high as the income of those moving into the County from other parts of Montana. Figure 3 Average Household Income for In -migrants by State $120,000 $100,000 E $80,000 0 U C 0 $60,000 t v = $40,000 $20,000 ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ $0 MM MM MM MM MM MM MM MM M= 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■ Other State ■ Other Montana County The unfortunate consequence of the growing demand to live in the Flathead Valley is declining affordability of housing for residents who live and work in the area. Beginning in 2018 the median earning household no longer had enough income to qualify for a median priced home. We estimate in 2022 the median earning household could qualify for about half of the median priced home. Figure 4 Housing Affordability Index, Flathead County 130 120 110 100 a0i 90 U v 80 70 60 50 40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sources: Montana Regional MLS, U.S. Census Small Area Income and Poverty Estimates, Freddie Mac 4 Figure 5 Median Household Income vs Qualifying Income for Median Home $130,000 v o $110,000 U -0 $90,000 0 D $70,000 0 $50,000 $30,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Median Household Income Qualifying Income Sources: Montana Regional MLS, U.S. Census Small Area Income and Poverty Estimates, Freddie Mac Drivers of the Flathead County Economy It is useful to briefly review the forces that have historically shaped the direction and the magnitude of growth in Flathead County's economy in recent decades. These forces can be expected to continue to have a major influence on economic outcomes, even if newer trends like remote work and flight from dense urban areas rise in importance. One approach to describing any regional economy is to divide all activities into two aggregate categories. One group of industries, called basic industries, is the subset of the entire economy that draws all or most of its sales revenue from outside the region. Thus the growth of this basic sector is not limited by the size of the local economy. This is in contrast to the remainder of the economy, composed of derivative industries, whose customer base is primarily in the region itself. An example of a derivative industry would be local public schools, which serve the local population. Basic industries draw spending flows from outside into the region, which are then spent in part in support of goods and services consumed by locals. Figure 6 Percentage Share of Income of Flathead County Basic Industries Trade CU. Retail, 1% TransWaOon, 8 Source U.S. @u-eau of Egon r ic Armhsis and FEM Trade Ctr, Services, 10% Ag. an-d Other, 3% The Bureau of Business and Economic Research has analyzed the Flathead County economy for more than 40 years, and our analysis produces the list of basic industries for the region shown in Figure 6. The industries shown are either entirely, or partially, part of the basic portion of the County economy. The largest of these, visitor spending, represents 21 percent of the total basic sector and thus can be considered to be the most important driver of the local economy. As shown in the Figure, Flathead County is also home to wood products companies, manufacturing, health care and federal government employers who bring spending into the economy from outside the region. Some industries, including retail and health care, serve customers from both within and outside the region. The shares shown in Figure 6 are those of the slices of income in each flow from the spending coming from outside the region. The drivers shown can be briefly summarized as follows: • Spending of nonresident visitors, which include spending of part time residents owning second homes or other properties, has grown significantly in its importance, peaking in the summer but with a secondary winter peak that is especially prominent in ski areas such as Whitefish. • Wood products remains important, especially in Columbia Falls, with its close proximity to timber harvesting activities, including sawmills, log furniture, log home production and other activities. • Other manufacturing spans a diverse range of nondurable manufacturing, including food products, as well as high tech and specialty manufacturing. • Trade center services and retail reflects the fact that Kalispell in particular has emerged as a regional hub of a broader portion of the state, bring in spending for professional services of all kinds. • The Kalispell Regional Hospital, now named Logan Health, has grown to serve patients with specialized care, drawing from a base larger than the County itself. • The Federal Government has a considerable footprint in Flathead County, with activities ranging from land management, border control, veteran's affairs and forest service activity. There is a relatively new source of economic growth in Flathead County and in other parts of the state that is not adequately captured in this traditional approach. Before it acquired its broader meaning, the term "knowledge worker" was used in economic development to describe those occupations that had no geographic focus. The most prominent example would be a consultant whose only need is an airport to use to visit clients. High amenity places like Flathead County were well positioned to attract this niche of potential growth — a niche that does not fit into the basic/derivative industry notion described above. Causes and Solutions to the Housing Affordability Crisis There is abundant evidence of a decline in the affordability of housing in Flathead County over the last two decades, with the divergence between incomes and housing costs widening more briskly in the last few years. One of the statistics most quoted is the median sale price of homes sold by realtors. As illustrated in Figure 7, the median price of houses sold in Flathead County in 2012 was $197,750. The median price in 2022 has grown to $655,400, a 231 percent increase in aten-year period. Just in the last Figure 7 Flathead County two years, median home prices have grown by 59 Median Sale Price of Single percent. While rapid increases in sales prices for Family Homes homes have shown up in other parts of the state, only Gallatin County in southwest Montana has experienced faster home price growth than Flathead $650,000 County. One shortcoming of median sale price as a description of how housing is valued is the variability in the composition of sales. If one end of the market — say, the upper end, luxury home segment — makes up a larger fraction of sales in any period, it can skew the sale price statistics. Measures based on repeat sales of the same properties, such as the Federal Home Finance Agency's Housing Price Index (HPI), can correct for this situation. $550,000 $450,000 $350,000 $250,000 � I $150,000 The story of housing price growth revealed by the HPI 12 13 1415 16 17 18 19 20 2122 since 2012 in Flathead County is the same as the median sale price data show — rapid growth over the decade, with an acceleration in the last two years, as shown in Figure 8. The longer time perspective offered in Figure 8, and its comparison of housing price growth to the growth of median household income, offers further insights on affordability. Figure 8 Housing Prices and Median Household Income, Flathead County, 1990-2021, Index (2000=100) Percent of 2000 Level CM 250 Housing Price 200 _ 1 ndex 150 100 Median Household Income 50 1990 1995 2000 2005 2010 2015 2020 Source: Federal Home Finance Agency and Census Bureau It is clear from the Figure that the housing prices grew considerably faster than median household income during the last decade. Thus affordability declined, especially in the last two years. There was also a rapid deterioration in affordability during the housing price boom that occurred leading up to the great recession period of 2008-11, when the collapse of housing prices in the financial panic of those years had the effect of improving affordability. Prior to the year 2000, Flathead County enjoyed a decade of housing price growth that unfolded at the same pace as income growth. The tilting balance between demand and supply over this period helps to explain these outcomes. The last five decennial censuses, stretching back to 1980, reveal sizable changes in the pace of both population and housing growth in Flathead County, as shown in Figure 9. Changes in the Census counts of the housing stock from ten year-ago levels represent net new additions of all types of housing in the previous decade, including single family homes, multi -unit, and manufactured housing. Figure 9 Housing Growth and Population Growth, Flathead County, 1980-2020, Percent 70% 60% 50% 40% 31.7% 35.1 % 30% 28.9%25.8% ° 20.0% 22.1 /o 20°X0 14.0% 10% 0% 1980 1990 2000 2010 ■ Housing Growth ■ Population Growth Source: tl.S.Decennial Census 14.8% 6.2° 2020 Perhaps the most striking feature of the growth in housing and population over this period has been its strength and durability. For four of the last five decades, housing growth exceeded population growth in the County, in some cases by a considerable margin. The exception is the most recent decade, where population grew by almost 15 percent and the housing stock increased by only 6.2 percent. This disparity helps explain why strong demand pushed up prices faster than incomes for most of the period. Projecting the Demand for Housing There are three components to the demand for housing in any regional market: The demand that comes from the net creation or addition of households; The demand for second homes; The housing additions needed to support vacancy rates sufficient for markets to function. Demand from all three of these sources promises to be of importance in the decade ahead. As can be seen from the detailed presentation of the housing demand forecast contained in the Appendix to this report, we have taken a conservative approach to the development of our forecast. For instance, despite the rapid growth of net migration to Flathead County during most of the last decade, we use a conservative projection that calls for migration to level off in the coming years, as shown in Figure 10. Figure 10: Net Migration Forecast 4000 3500 3000 2500 2000 1500 1000 500 0 -500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 � Net Migration Population Change Sources: U.S. Census — Population and Housing Unit Estimates (PEP), Bureau of Business and Economic Research The net movement of people into Flathead County forms the basis for new housing demand. As we detail in the Appendix, using data on household size and historical vacancy rates, we can estimate a target for new housing creation consistent with in -migration rates. It is possible to perform this calculation for recent history as well as the projection shown in Figure 10. When one compares the target housing production for Flathead County to the actual number of units built in the last ten years, a stunning fact emerges: actual building has fallen well short of what was needed to accommodate population and household growth. This is consistent with the imbalance between population and housing growth over the 2010's shown in Figure 9. Figure 11 Estimated Surplus/Shortage of Housing Units, Flathead County, 2011-2022 Housing Units 4,000 3, 000 2,000 1, 000 ■ -1, 000 . -2, 000 .3, 000 .4, 000 -3,161 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: BIER Analysis The last decade began with a sizable surplus of housing units in the County, as shown in Figure 11. This was due to the strong building in the middle of the previous decade, and the collapse in demand that occurred in the housing price bust and financial panic of the Great Recession of 2007-09. As the decade progressed, the surplus was eroded. By the decade's midpoint, actual rates of building were no longer keeping up with the target rate for building to accommodate new demand. By 2022, the shortage of housing had cumulated to almost three year's production of housing, at 3,161 housing units of all types. In practical terms, the size of this cumulative housing shortage has produced outcomes that are familiar to many Flathead County residents. The first is the rapid rise in housing prices and rents, as competition for existing units becomes more intense. There is also a dramatic decline in available vacancies and housing units for sale. Very thin inventories hurt the ability of markets to function, tending to perpetuate scarce housing as potential sellers looking to change their housing are dissuaded from listing their current properties, fearing the difficulty in finding new ones. Finally, there is the creation of "missing households," defined as families or individuals who are forced by the lack of affordability or availability of housing to continue housing arrangements that are less desired. These range anywhere from living with parents or other extended family members or unrelated roomates, to inpermanent arrrangements such as long distance commutes, motels, or sleeping in vehicles. Of course, these less desired housing arrangements are borne disproportionately by those with lower incomes. Our forecast of housing production includes the target housing production needed to accommodate population growth, as well as the housing needed to redress the significant shortages that have been created by the underbuilding of the last decade. As detailed in the Appendix, we allow for a gradual rebalancing of the market over the coming 10 years, effectively spreading the building needed to address the current shortage over this longer period. As shown in Figure 12, Flathead County needs to add almost 1,500 more housing units each year in the next ten years to accommodate what we consider to be a very conservative scenario for population growth 10 from new in -migration. Over a ten year period, the cumulative amount of new housing additions are estimated to be 14,800 for the County. The adequacy of any single development, or even groups of developments, to address the housing challenges faced in the coming years should be judged against this aggregate need. Figure 12 Cumulative Projected Need for New Housing Units, Flathead County, 2023-2032 Housing UnitS 16,000 14,000 12, 000 10,000 8,000 6, 000 4,000 2,000 . 0 2023 2024 2025 2026 2027 2028 2029 2030 Source: BB€R Projection 14 2031 2032 As a county -wide estimate, this rate of housing production needed to rebalance the current market and to accommodate future demand has implications for jurisdictions within Flathead County, including Columbia Falls. The three incorporated areas in the County — Kalispell, Whitefish, and Columbia Falls — have substantial economic and infrastructure interdependences that make housing outcomes in any one of them of significant relevance for the others. 11 Understanding the Dynamics of Housing Supply Well before the acceleration in housing prices of 2020-21 that affected places like Flathead County all over the country, strong research support for the conclusion that the U.S. is underbuilding housing has been growing. A 2018 analysis by Freddie Mac concluded that 1.62 million units were needed each year nationally to satisfy new housing demand — with significantly more needed to achieve a market with healthy vacancy rates. A study by EcoNorthwest (2022) analyzed underbuilding in 2019 and concluded that the 3.8 million unit shortfall in construction affected nearly every city and region of the country. They also found that areas with more severe underproduction of housing had the fastest acceleration in housing prices. The conclusion of these and other studies on housing supply is that substantial new supply is needed to bring the trajectories of prices and rents for housing back to earth. Yet this is not the conclusion of many of the players and advocates in local politics. Two nationally representative surveys of urban and suburban residents found that many residents associated increased development of housing with increasing prices and rents (Clayton, et. al, 2022). Survey responses suggested that only 3040 percent of respondents thought that a 10 percent increase in the housing supply would lower prices and rents. This disconnect points out another challenge for improving housing affordability, and that is to better understand the dynamics of housing markets. Since local advocates and residents hold enormous sway in the permitting, regulation, and planning of housing development, effective policies and actions to address accelerating prices cannot proceed without a better grasp of how the markets function. There are at least three aspects of the functioning of housing markets that have often led observers astray in assigning causality to the price impacts of housing supply: Simultaneity. Development of new housing supply does not occur in a vacuum. The incentive to develop is strongest in markets that have growing demand, which in turn can cause more price growth — growth that is related to demand, not supply. • Interaction with building restrictions. New housing that developers do manage to build in areas where it is difficult or expensive to build can expect to command high prices because of scarcity. Ignoring interactions and filtering through housing price tiers. There is ample evidence that adding market rate housing increases the supply of other types. Simultaneity The static, textbook depiction of supply and demand interacting to determine a market price has relevance for local housing markets, but only if it is interpreted in its intended way. The term ceteris paribus — all other things being equal — is the key concept in the operation of the demand -supply equilibrium of the economics textbook. To apply this reasoning to the Flathead County housing market, we might say that if the demand for housing were fixed — no population growth, no new households created — and more housing were built, then we would have the same number of tenants bidding for a larger number of properties, hence the prediction of a falling price. Because these ceteris paribus conditions do not exist in the actual market — that demand is in fact rising, and that other factors affecting price, such as construction costs — are changing as well does not negate the proposition that increases in supply are associated with declines in prices. The reality is that we observe new housing being built at the same time as prices in the market are rapidly rising. But to conclude that 12 construction is causing prices to rise is incorrect — because the latter is due to rising demand. If new development were to slow or stall, the growth in prices would be stronger. This is especially important for housing markets, because the variability in demand is such an important consideration in investment decisions about where new supply is built. It is not surprising that investors are drawn to places with strong demand growth, and that growth is reflected in housing prices when supply cannot keep up with demand. Interactions with Local Regulation A second, important dynamic in local housing markets is the interaction between home building and places with restrictions on additions to housing supply. At its worst, this can set up a self-fulfilling cycle of price growth that is used to rationalize further restrictions. Consider the following cycle of events: Opposition to new development. There is resistance to new housing development in an area, which results in decisions or land use regulations that make it costly or impossible to build. The reasons can be anything from aesthetic concerns to self-interest on the part of existing homeowners. Existing homes grow in value because new supply is restricted. Population growth occurs, rents and prices rise rapidly as growing demand faces restricted supply. Builders want to build but are restricted. Developers push through some new projects by building in adjacent areas with less political opposition, or by expending resources to gain approval. Since supply remains tight relative to demand, newly constructed units fetch high prices, purchased or rented by richer people. Advocates of poorer residents who cannot afford the new units see rents and prices high and conclude that the new building has driven up prices. Political support for further restrictions on new construction grows, returning to the first stage of the cycle. Some version of this cycle can explain why the notion that new construction causes higher prices is maintained by some, tending to perpetuate the circumstances that support more building restrictions and more price growth. The Interdependency of Housing Market Price Tiers New houses tend to be more expensive, for reasons that are easy to understand. Homes are physical assets that depreciate. New homes usually employ newer technologies. New homes also must comply with building codes and other regulations that older homes do not. And beyond these cost factors comes an important consideration from the other side of the transaction — new homes also have the features and characteristics that make people want to buy them. And so new homes tend to have attached garages, spacious closets, and multiple bathrooms. In Flathead County, a typical new home might be represented by a single story, 3-bedroom, 1600 square foot home with attached garage. At current materials and labor costs, the price for such a home in a desirable location, including excavation, land, landscaping and all permits and fees would be approximately $550,000. Assuming a 7 percent interest rate and a 20 percent down payment, a household would have to earn about $100,000 to qualify for a conventional mortgage. With median household income for Flathead County estimated at $63,582, there are clearly many households who could not 13 afford this typical home. (We note that using 2019 mortgage rates of 3.5 percent, the qualifying income falls to $63,600). Some would argue that building more homes at these market price points has no impact on affordability in a region, since the price of the new homes are out of reach for middle and low income households. In this view, only the construction of homes whose prices or rents fall into the range that more modest earning households can accommodate within their budgets can impact affordability. Such a view fails to take into account the interactions between the different segments and tiers of a regional housing market. These interactions, which have received considerable research support, cause supply changes in different locations and price tiers to propagate through the overall market. It is useful to explain the process conceptually to start. Consider the buyer of a market rate house who is a resident of Flathead County. Those who buy homes also sell them, or vacate the dwellings they previously rented, and the latter can often be older or smaller homes in different price tiers. Thus there is a supply effect beyond the price tier of the new home that is less affordable. If the purchaser is a new arrival to the region, or the purchase is for a second home or even a vacation rental, the logic still holds. This is because the construction and the sale of the new home has displaced the removal from the marketplace an existing home that would have otherwise been purchased. Economist Bryan Caplan describes the process of how new construction impacts all tiers of the marketplace, referred to as market filtering, using the metaphor of a game of musical chairs: A normal game of musical chairs starts out with one chair per person, then subtracts a chair every turn. The result: Faster, aggressive kids push out everyone else, until the fastest, most aggressive kid wins. In my variant game, we start out with fewer chairs than people, then add a chair every turn. The result: Slower and more pacific kids start getting places to sit, until there are enough chairs for everyone (Caplan, 2021). The empirical research on the topic is broadly supportive of the notion that construction of new housing in one price tier of the market has supply effects elsewhere, including: A 2019 paper from the W.E. Upjohn Institute (Mast, 2019) used address changes to track movements within urban markets when new multifamily units were constructed. There was strong evidence of migration to and from low-income housing as a result, with models suggesting adjustments took place within five years. A 2019 working paper from New York University (Li, 2019) examined the impact of new high- rises on nearby residential rents and sales in New York, estimating that for every 10 percent rise in the housing stock, nearby rents fell by 1 percent in the adjacent areas. The Furman Center's 2018 paper on "Supply Skepticism: Housing Supply and Affordability" conducted a survey of research of housing filtering, finding that adding new homes moderates price increases and that filtering of housing sold by other owners accounted for a large fraction in the increased supply of modestly priced housing units (Vicki Been, 2018). A 2018 paper from the Federal Reserve Board constructed a simulation model of housing filtering based on data from the 2014 American Community Survey (Kong, 2018). The model showed modest impacts of new construction on rents. The research emphasizes the considerable variation in housing supply — according to age, location, amenities and access to services. All of these factors are of tremendous importance in determining the prices and rents that properties command. 14 Conclusion Flathead County, home to the fourth largest population among Montana's 56 counties, faces a significant housing affordability challenge. Even before the rise in conventional mortgage rates that has occurred in the last twelve months, growth in home prices and rents has pushed beyond the limits of what median earning residents can accommodate. With strong economic drivers and good prospects for continued rapid growth, the challenge to reduce the price pressures on housing markets in the County is likely to become more intense in the coming years. This report has examined the causes, consequences, and at least one possible solution to the price and availability pressures in the Flathead County housing market. Our principal findings are: • The strong amenity -led economic growth in Flathead County can be expected to continue to exceed the state average in the coming years, supporting a level of net in -migration to the state at levels similar to what the County experienced in the last half of the previous decade. • The 6.2 percent increase in the total number of housing units in Flathead County during the 2010's was less than half the percentage increase in the population, the first time in 40 years that housing growth measured between decennial census years failed to outpace population growth. A surplus of housing that existed just after the Great Recession period of 2007-09 was erased by weak building and stronger demand in subsequent years. Since 2015, housing construction has fallen short of what is needed to accommodate population growth and to support vacancy rates that allow the market to function. We estimate that the housing deficit for Flathead County in 2022 stood at 3,161 units, or almost three years worth of building at current rates. • Housing prices were already growing faster than median income before the surge in demand over the pandemic period of 2020-21 increased the trajectory of prices dramatically. The median earning household in Flathead County only has 50 percent of the income required to qualify for a mortgage on the median -priced home. • Based on conservative assumptions about future population growth, we project that Flathead County needs to build almost 1,500 new housing units per year for the next 10 years — a cumulative total of just less than 15,000 units — to address current shortages and to accommodate future growth. • Skepticism that new building can meaningfully impact price growth promises to make shortages more acute — observed price increases accompanying new construction are largely due to increased demand and the impact of building restrictions. • There is ample evidence to demonstrate that housing markets across price tiers are interdependent, with newly constructed housing priced at or above market rates producing supply and price impacts across other price tiers. It is important to point out that while this report addresses housing, what is really at stake is the welfare the people who depend on adequate, affordable, and safe housing for shelter, security, and basic needs. The low rates of homebuilding of the last 10 years, coupled with the strong attraction of Flathead County 15 to new companies, workers and residents has produced an unfortunate and painful increase in the cost of housing that has placed increased pressure on many who are least able to bear it. Addressing the shortage of housing in the state's fourth largest county should be a priority of all of the decision -making entities within the County if the unfortunate trends that have pushed adequate housing beyond the means of many households are to be meaningfully changed. 1[s, Appendix Forecast of Housing Demand To estimate the demand for housing, we must first assess the number of people who currently and will either move or be born in the county. For this, we must rely on U.S. Census's American Community Survey (ACS) and make projections of that population over the next couple of years. For consistency between estimates, all data used in this forecast is based on ACS 1- yr estimates. We use a methodology similar to the one used by Freddie Mac to assess the housing demand (Khater, 2021). Population Projection Figure A- 1: Observed and Projected Population Change, 2010-2032 3,000 2,500 2,000 _O Q O a 1,000 500 0 -500 Population Change 1 O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N Population Households and Group Quarters Not all people living in a county are in households or live in housing units as defined by the U.S. Census Bureau therefore we must take out the portion of households who live in group quarters. Group quarters are defined as "places where people live or stay in a group living arrangement that is owned or managed by an organization providing housing and/or services for the residents." These include living arrangements such student housing and nursing homes. Pcthh = percent persons in households Population in households Pcthh = population 17 Since 2010, the estimate for the percentage of the population in households has varied slightly. All observations for housing demand from 2010 to 2022 use observations of the population in households not the total population. However, to project the housing demand going forward we must assume that this remains constant as shown in Figure A-1. pophh = population in households pophh = population * pcthh Figure A- 2: Observed and Assumed Constant Proportion of Population in Households by year, 2010 - 2032 Proportion of People in Households 0.992 0.991 4J 0.990 G 0.989 W a 0.988 0.987 0.986 O -i N M -;I- Ln lD I- 00 M O -1 N M ;I- Ln lD I, 00 a) O -J N c-I c-I rl ri rl ri rl ri c-I -i N N N N N N N N N N M M M O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N 18 Household Formation An individual or group of people who occupy a single housing unit is considered a household. These include a variety of living arrangements from family households, people living alone, and non -family households, such as three unrelated people sharing the expense of a three -bedroom home. hh = households = family + nonfamily households - occupied housing units The number of households changes primarily through natural change, births and deaths, or migration, but another way a household is formed is the division of one household into multiple households. Therefore, some demand for housing exists within households, such as an adult who lives in their parent's home or a person who would prefer not to share a housing unit. The demand to form households is a function of people's preferences (marriage decisions, fertility, etc.) and the cost of those preferences. In areas with high housing costs, this results in many "missing households," households that choose to remain in their current home for cost reasons rather than their preferred living arrangement. To estimate the total demand for housing, we must assume some household formation rate that aligns with the population's preferences and is not driven by the cost of housing. We assume a "constant headship rate" as the average from 2010 to 2021—below what it's been since 2012, shown in Figure A-2. Therefore, we account for some missing households due to rising housing costs. h* = constant headship rate = 1 = 1 39.7 % or 2.515 per household persons per household 2.515 Figure A- 3: Observed and Assumed Constant Number of People per Household by year, 2010 - 2032 2.700 2.650 2.600 2.550 Q 2.500 2.450 a 2.400 2.350 2.300 2.250 Persons per household O . -I N M �* Ln l0 I, M M O . -I N M Rt Ln 1.0 I, W M O r-i N c-I c-I c-I c-I c-I c-I c-I c-I c-I c-I N N N N N N N N N N M M M O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N 19 We can calculate the total household demand for a county's existing and future full-time residents from a constant headship rate. This estimate attempts to capture the rate of household formation preferred by the population absent cost considerations. The sum of the current and missing households is the demand for housing. hh* = housing demand = current households + missing households hh* = housing demand = pophh * hactual + POPhh(h* — hactual) or, hh* = housing demand = pophh * h* Vacancy Rates For a housing market to function well, a balance has to be struck between the number of units vacant and the number of units occupied. The vacancy rate measures this balance as simply the number of units vacant at a time and place divided by the total units at the same time and place. vacant units v = vacancy rate = total units Vacant units can be left unoccupied for several reasons; the following lists the categories of vacant units by the reason they are vacant. vacant units = for rent + rented, not occupied + for sale only + Sold, not occupied + f or seasonal, recreational, or occasional use + f or migrant workers + other vacant The presence of tourism destinations such as Flathead Lake, Whitefish Ski Resort, and nearby Glacier National Park results in a relatively high vacancy rate, primarily in the form of vacation rentals or second vacation homes. These units remain vacant but are otherwise unavailable to residents to occupy. Therefore, to assess the amount of housing stock needed in the area, we must consider the relatively high vacancy rates required in this market, shown in Figure A-4. 20 Figure A- 4: Vacant Units by Type and Year, 2009 to 2020. Vacancy Type 12,000 r Total 10,000 For seasonal, recreational, or occasional use 8,000 c 6,000 M f° > 4,000 Rented not occupied Sold, not Other vacant p occupied 2,000 \ For rent For sale only 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 As seen in Figure A-5, vacancy rates have been trending downward over the past few years, meaning that the number of units available in the rental and sales markets is decreasing relative to the housing stock. The housing stock must increase enough to offset both the vacation/ second homes demand and the vacancy needed for a stable housing market. Figure A- 5: Observed and Assumed Constant Vacancy Rate Vacancy rate 0.250 0.230 0.210 0.190)i 0.170 1-7 F1 I 0.150 O -1 N M d to (.0 I*- 00 M O -i N M -zi- Ln io I,- oo a) O -i N c-I c-I c-I c-I c-I c-I -i -i -i -i N N N N N N N N N N M M M O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N We assume the historical average vacancy rate from 2010 to 2021 as this encompasses some of the decline and increase in housing prices and vacant vacation rentals or second homes needed in this market. v* = target vacany rate - 20.7 % 21 Target Housing Stock Target Housing Units To estimate the number of units needed in a market, we calculate a "target housing stock" that incorporates the missing households from rising housing costs and the amount of vacancy necessary for a balanced housing market. We estimate the total housing demand or target housing units needed to keep vacancy rates and household formation constant with the following equation. Where, k* = target housing stock - total market demand k* — POPhh * h* 1—v* pophh = population in households 1 h* = = target headship rate - 39.8 % hhsize v* = target vacancy rate z:; 20.7 % Shortage or Surplus of Housing Units To estimate the current shortage of housing units, we subtract the actual housing stock each year from the target housing stock. If the existing housing stock is greater than the target housing stock, we have a surplus of housing units holding vacancy rates and household formation constant. However, if the target housing stock exceeds the actual housing stock, this estimate becomes a shortage, given vacancy rates and household formation should not change. Surplus Shortage = kactuai — k* kactuai = total housing stock Figure A-5 shows Flathead County was estimated to have a surplus of units throughout the recovery from the Great Recession between 2010 and 2013. The estimated surplus corresponds to a period when prices were not increasing substantially. However, despite overall increases in housing stock, the surplus continued to decline, becoming an increasing shortage since 2017. In 2022 we estimated a total market shortage of -3,161 units, the last point in Figure A-6. 22 Figure A- 6: Shortage or Surplus of Housing Units by Year e 3,000 (A 2,000 .� 1,000 W 0 .3 -1,000 O _ -2,000 -3,000 -4,000 Shortage Surplus Housing Units )12 2013 2014 20 *-- Shortage Surplus Housing Units 7 ' 2018 2019 2020 2021 2022 Expected Housing Demand 2023-2032 On top of the current estimated shortage, we also have the expected continuation of population growth in Flathead County. Based on our projection population is likely to return to longer -term trends instead of the potential outlier that was the COVID-19-related migration in 2021. COVID-19 migration is the phenomenon observed in which many areas of the country with small cities saw large numbers of residents from densely populated cities move into their communities. So far, population data suggests that the net migration for high -growth states such as Montana and Idaho in 2021 did not see as high of growth in 2022. Figure A-6 shows the annual housing need for Flathead County to keep up with expected future demand but also the demand that currently exists from residents in the county. The figure below depicts the annual new housing stock required based on the assumptions discussed in this section. 23 Figure A- 7: Annual New Unit Demand, Actual and Projected, 2010-2032 1,800 1,600 1,40 of 1,00 60 40 20 0 -20 1, 20 80 II M II i 0 II II r � II II II II II II 0 II II II II II II II II II II p II II II II II II II II II II 0 II II II II II II II II I� II II II II II II II II II II II 0 II II II II II II II II II II I`'I II II II II II II II I 0 1 i��i��lllllll�i p yo y'L ,y"1 ti10 ti� do `l`L tip` ti� ,tio ,tio ,tio ,tio ,tio ,tio ,tio ,tio ,tio ,tio ,tio ,tio - + Current Shortage Annual New Units We estimate a cumulative new housing demand over the next ten years to be about 14,803 units to keep housing costs, vacancy rates, and household formation stable over the coming decade. We also assume that the current shortage in Flathead County requires additional demand across the next ten years. Figure A- 8: Shortage of Units, New Unit Demand, and Total Unit Demand, 2012-2032 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2012 to 2022 Shortage 2023 to 2032 New Demand 2024 to 2032 Shortage + New Demand Table A- 1: Shortage of Units, New Unit Demand, and Total Unit Demand, 2012-2032 Unit Need 2012 to 2022 Shortage 3,161 2023 to 2032 New Demand 11,642 2023 to 2032 Shortage + New Demand 24 14,803 References Caplan, B. (2021, March 22). Housing Regulation: Reverse Musical Chairs. Retrieved from Econlog Post MIcroeconomics, Regulation: https://www.econlib.org/reverse-musical-chairs/ Khater, S. L. (2021, May 7). Housing Supply: A Growing Deficit. Retrieved from Freddie Mac Insights, Notes and Briefs: https://www.freddiemac.com/research/insight/20210507-housing-supply Kung, E. A. (2018). Can More Housing Supply Solve the Affordability Crisis? Regional Science and Urban Economics. Li, X. (2019). Do New Housing Units in Your Backyard Raise Your Rents? New York: NYU Working Paper. Mast, E. (2019). The Effect of New Market -Rate Housing Construction on the Low -Income Housing Market. Retrieved from W.E. Upjohn Institute for Employment Research: https:Hdol.org/10.17848/wpl9-307 Vicki Been, L G. (2018). Supply Skepticism: Housing Supply and Affordability. Retrieved from NYU Furman Center: https:Hfurmancenter.org/files/Supply_Skepticism_-_Final.pdf 25 VE �gsfl LAI 2022 Construction, Land Subdivision and Annexation Report Table of Contents Kalispell Planning and Building Department Activity....................................................................... 2 2017-2022 Building Department Activity Sunnnary........................................................................................................... 2 2017-2022 Planning Department Applications.....................................................................................................................3 2022 Construction, Land Subdivision and Annexation Report......................................................... 4 KalispellBuilding Pen -nit Summary.....................................................................................................................................4 ConstructionValues........................................................................................................................................................ 5-12 SubdivisionPlats........................................................................................................................................................... 13-14 VacantLot Analysis...................................................................................................................................................... 15-16 AnnexationActivity...................................................................................................................................................... 17-18 Appendix- Maps...................................................................................................................................19 -0100 CITY OF KALISPELL Development Services 201 Ist Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/developmentservices KALISPELL DEVELOPMENT SERVICES DEPARTMENT ACTIVITY Jarod Nygren, Director Kirstin Robinson, Office Coordinator Planning Division Senior Planner— PJ Sorensen Planner II — Kari Barnhart Community Development Division Community Development Manager— Katharine King Community Development Office Admin II — Krista Lammers Building Division Building Official — Jeff Clawson Permit Technician — Codi Evenson Commercial Plans Examiner— Rick Parker Residential Plans Examiner/Building Inspector— Shane Cooke Building Inspectors —Dale Westphal, Sean McRae, & Rick Inskeep Fire Plans Examiner/Fire Inspector — Gary Hoes Fire Inspector —Jason Landis 2017 through 2022 Building Department Activity Summary 2017 2018 2019 2020 2021 2022 Total Building Permits Issued 290 280 281 406 300 245 (all types) 58 Commercial, Office, 79 80 67 67 39 Industrial, Utility Residential 180 181 210 340 221 149 Government, 10 12 3 4 9 9 Public/Quasi Public, Health Care 21 7 1 4 3 3 New or Significant Commercial, Office, Industrial or Utility 21 20 21 15 16 14 Permits ($250,000 or greater) Value of New or Significant Commercial, Office, Industrial, [$39,641,500 $21,156,047 $25,785,792 $21,142,601 $23,980,208 $15,369,135 Utility & Remod or Additions New Residential Units 195 215 244 460 878 603 Single Family, Townhouse and/or Duplex units, 151 133 160 300 229 137 Accessory Dwelling units 84 160 Multi -family units 44 82 649 466 Value of All New Residential Units $25,558,959 11 $36,283,902 15 $41,728,860 $79,393,670 $130,763,112 $88,783,054 2 2 2 5 New or Significant Additions to Public/Quasi-Public, Health Care Permits ($250,000 or greater) Value of New or Sign ifican Public/Quasi-Public or Health $32,813,597 $29,433,706 $2,300,000 $24,000,000 $1,152,280 $8,643,631 Care Total Value aW Construction Types $104,600,358 $91,429,643 $65,849,456 $126,139,717 $160,799,756 $115,131,618 2017 through 2022 Planning Department Applications • Preliminary Subdivision Plat Applications o Total lots • Preliminary Plats Expired o Total Lots • Final Subdivision Plat Applications o Total lots • Conditional Use Permit Applications • Annexation Applications o Acres Annexed • Zone Change Applications • PUD (Planned Unit Developments approved) o Approximate acres of PUDs approved • Growth Policy Amendments • Zone Text Amendments • Floodplain Development Permits • Administrative Adjustments • Sign Permits 2017 2018 2019 2020 2021 2022 3 7 4 4 8 7 193 268 194 348 773 408 1 1 1 1 0 0 471 2 2 57 0 0 2 8 6 10 7 7 29 97 156 238 128 251 12 5 4 5 12 2 7 7 4 4 5 7 85.71 217.51 7.4 6.17 61.37 55.53 3 5 2 1 4 5 4 4 0 2 4 4 200 I 335.2 1 0 1 30.89 1256.34 1 157.78 2 2 2 1 2 1 1 0 1 1 3 2 1 0 1 1 0 3 2 1 7 8 3 3 67 72 92 66 98 91 3 2022 CONSTRUCTION, LAND SUBDIVISION AND ANNEXATION REPORT CITY OF KALISPELL This report provides information on new housing construction, major commercial construction, divisions of land and annexations for the City of Kalispell. Construction activity data is collected from building permits issued by the City of Kalispell Building Department. Residential construction types are referred to as single-family residence (SFR), duplex (DUP), townhouse (TIT), multi -family unit (NFU), and accessory dwelling units (ADU). For the purpose of this report, townhouse numbers are combined with the duplex category. Numbers recorded for multi -family units, townhouses and duplexes represent the actual number of living units created within the housing projects. The MH category includes all classes of manufactured homes including double wide and modular homes. Senior apartment complexes and assisted living units are included in the multi -family category and numbers also represent the actual number of units within the project. This report also includes a summary of major commercial construction projects for which building permits were issued. Kalispell Building Permit Summary: The City of Kalispell issues permits for most construction projects in the city. The total number of permits includes all types of construction including new, remodels and additions. The City of Kalispell issued 245 building permits during 2022. 450 400 350 300 250 200 150 100 50 0 Figure 1 Total Building Permits Issued 2010 — 2022 406 323 269 276 290 280 281 300 257 rm 0 O © Q 1 ■ 245 ti� titi ti� P ti� by ti� ti^ ti� ti� ti� titi ti� 4 Figure 2 Total Value of all Construction 2010 — 2022 180 $161 160 L 0 140 $126 c 115 0 120 $105 c 0 100 � 80 $64 $66 3 60 55 $46 $45 0 40 27 41 U 20 41 c u 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: City of Kalispell Building Permits 2010-2022 New Residential Housing Construction The majority of new housing has transitioned from single-family homes to multi -family homes. Since 2000, there has been increased demand for townhouse, duplex and multi -family housing, which tend to be more affordable than detached single-family housing. Because multi -family projects are usually constructed over a longer period of time, it is more feasible to look at annual averages for this type of housing over a five year period. 950 900 850 800 750 700 c 650 600 Y c 550 500 C 450 m 400 v � 350 300 y 250 Z 200 150 100 50 0 Figure 3 New Residential Units, 2011 - 2022 460 222 244 195 215 0 0 0 0 0 0 0 878 603 0 5 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 Figure 4 New Residential Units by Type, 2011 — 2022 rl rN m Ln LD I, 00 0) O 1-1 rN c-I c-I c-I c-I c-I 1- 1- 1- 1- f V f V f V O O O O O O O O O O O O fV rN rN rN rN rN rN rN fV fV fV fV Figure 5 New Residential Construction Values $80 $70 NSFR ■ New TownhomeorDuplex ■Multifamily $60 $50 $40 $30 $20 — $10 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6 Table 1 New Residential Construction Summary by Type City of Kalispell, 2011-2022 TYPE 11 12 13 14 15 16 17 18 19 20 21 22 % chg 21- 22 Detached Single 42 54 106 81 72 104 115 91 94 175 170 88 -48% Family units Duplex units 1 0 12 3 4 8 8 1 6 2 10 116 8 1 -50% Townhouse units 8 2 16 14 12 24 28 36 64 115 43 38 -12% Multi -Family units 21 42 0 0 96 86 44 82 84 160 649 466 -28% Accessory 0 0 0 0 0 0 0 0 0 0 0 3 N/A Dwelling units TOTAL 72 1 98 124 98 184 222 195 215 244 460 878 603 -31 % Source: City of Kalispell Building Permits 2011-2022 Table 2 New Residential Construction Summary, City of Kalispell, 2013-2022 YEAR SFR % of total DUP/T H % of total MFU % of total ADU % of total TOTAL UNITS 2013 106 85.50% 18 14.50% 0 0% 0 0% 124 2014 81 82.70% 17 17.30% 0 0% 0 0% 98 2015 72 39.10% 16 8.70% 96 52.20% 0 0% 184 2016 104 46.80% 32 14.40% 86 38.70% 0 0% 222 2017 115 58.90% 36 18.50% 44 22.60% 0 0% 195 2018 91 42.30% 42 19.60% 82 38.10% 0 0% 215 2019 94 38.52% 66 27.05% 84 34.43% 0 0% 244 2020 175 38% 125 27% 160 35% 0 0% 460 2021 170 19.30% 59 6.70% 649 73.90% 0 0% 460 2022 88 14.6% 46 7.6% 466 77.3% 3 0.5% 603 10 Year Average 110 46 167 0 281 Source: City of Kalispell Building Permits, 2013-2022 Non -Residential Construction A list of major new commercial/retail/office; public structures; and significant additions during 2022 and the previous seven years is provided in Table 3. Table 3 City of Kalispell, 2015 through 2022 Building Permits New Non -Residential Construction and Significant Additions New Commercial/Retail Construction YEAR ADDRESS NAME DESCRIPTION TYPE SQ FT 2022 2248 Hwy 93 N Kohl's Retail New 39,181 2022 305 2ND AVE W Black Kaiju Retail Remodel 5,710 2022 Restaurant New 44,891 2,1 01 2021 2254 Hwy 93 N Taco Bell 2021 2265 Hwy 93 N Chi otle Restaurant New 2,325 2021 4,426 2020 2250 Hwy 93 N Old Navy Retail New 12,573 2020 2910 Hwy 93 S Town ump Tavem/Casino New 17,440 2020 55 4th Ave WN 4th & Zuri Mixed Remodel 13,149 2020 430 Cascade Loop Sherwin Williams Retail New 3,999 2020 47,161 2019 55 1' Ave WN Sunrift Pubhouse Restaurant Remodel 3,858 2019 635 Treeline Rd Dee O Gee Retail New 4,100 2019 2292 Hwy 93 North Spring Prairie 4 Outlot C Retail New 4,524 2019 625 Treeline Rd Treeline Center Lot 5 Retail New 6,155 2019 555 E Swift Creek Way Worlds G 7m Retail New 17,500 2019 36,137 2018 755 Treeline Rd My Place Hotel New 37,529 2018 2244 Highway 93 N Spring Prairie Shops 2 Retail New 7,118 2018 665 Treeline Rd Grease Monkey Service New 3,144 2018 2240 Highway 93 N Panera Bread Restaurant New 4,877 2018 2270 Highway 93 N REI Retail New 20,264 2018 635 Treeline Rd Treeline Retail Center Retail New 7,000 2018 9 79,932 2017 2915 Highway 2 W Green Nissan Dealership New 22,534 2017 2280 Highway 93 N Home Goods Retail New 18,890 2017 1110 Highway 2 W McDonalds Restaurant New 5,321 2017 2955 Highway 93 S Green Hyundai Dealership New 19,220 2017 200 Rose Crossing_Kalispell Ford Dealership New 52,000 2017 2298 Highway 93 N Harbor Freight Retail New 15,175 2017 M 133,140 2016 2260 Highway 93 N Hobby Lobby Retail New 55,054 2016 20 N. Main St Herbergers Addition Clothing Store Addition 40,000 2016 1305 highway 2 W Fuel Fitness Health Club New 13,734 2016 2274 Highway 93 N Krispy Kreme Restaurant New 2,671 2016 35 Treeline Rd Chick-Fil-A Restaurant New 4,539 2016 2286 Highway 93 N S rin Prairie 4 Shops Retail New N/A 2016 W P 115,998 2015 201 18th St E Po a e's Restaurant New 2,695 2015 250 Old Reserve Dr Marriot Hotel/Motel New 60,401 2015 165 Treeline Rd Dress Barn Clothing Store New 7,526 2015 175 Treeline Rd Shell Shell New 7,501 2015 3201 Hwy 93 S Captain's Marine Boat Sales New 17,607 2015 55 Treeline Rd Discount Tire Tire Store New 9,554 2015 115 Hutton Ranch Road Buffalo Wild Wins Restaurant Addition 869 2015M 1 106,153 New Office Construction YEAR ADDRESS AME DESCRIPTION TYPE SQ FT 2022 162 Timberwolf Pkwy Keller Williams Office New 11,711 2022 4 Sunset Plaza Office Remodel Office Remodel 5692 2022 17,403 2021 2000 Hwy 93 S Whitefish Credit Union Office New 15,898 2021 155 Timberwolf Pkwy Glacier Eye Clinic Office New 8,367 2021 505 Cascade Loop Hi hline Dermatology Office New 7,820 2021 58 Village Loop Kalispell Foot & Ankle Office New 1,610 2021 1256 N Meridian H2O Orthodontics Office New 9,480 2021 31 Three Mile Dr Copper Mountain Warehouse Office New 6,068 2021 6 49,243 2020 172 Timberwolf Pkwy Morrison-Maierle Office New 3,100 2020 745 S Main St CTA Office Remodel 2,800 2020 560 Cascade Loop Big Sky IV Office New 8,400 2020 14,300 2019 175 Timberwolf Parkway Glacier Eye Clinic Office Addition 6,269 2019 1315 Hwy 2 West 406 Dentistry Office Remodel 3,908 2019 165 Timberwolf Parkway Payne West Office New 17,147 2019 176 Timberwolf Parkway DA Davidson Office New 7,154 2019 56,376 2018 0 no new or significant office construction 0 2017 0 no new or significant office construction 0 2016 0 (no new or significant office construction) 0 2015 0 no new or significant office construction 0 New Industrial Construction YEAR ADDRESS NAME DESCRIPTION TYPE SQ FT 2022 20 Ryan Ln Ski 's Hangar Airport Hangar New 13,650 2022 30 Ryan Ln Clark South Hangar Airport Hangar New 9,480 2022 90 Ryan Ln Skalsky Hangar Airport Hangar New 9,480 2022 1000 Ryan Ln Clark North Hangar Airport Hangar New 7,500 2022 40,110 2021 0 (no new or significant office construction) 2020 1151 N Meridian Rd UPS Shipping Facility Expansion 52,854 2020 165 Schoolhouse Loop FedEx Shipping Facility trailer New 1410 2020 54,264 2019 700 Rail Park Dr. CHS Fuel Station Glacier Rail Park New 2019 700 Rail Park Dr. CHS Warehouse Glacier Rail Park New 26,000 2019 1105 Oregon Ave. NW Drwall Glacier Rail Park New 29800 2019 qW 55,800 2018 700 Rail Park Rd CHS Fertilizer Storage Glacier Rail Park New 17,428 2018 700 Rail Park Rd CHS Grain -Elevator Glacier Rail Park New 2000 2018 19,428 2017 0 (no new or significant Industrial Construction) 2016 0 (no new or significant Industrial Construction) 2015 120 Westview Park Place Proven Graphics Manufacturing/Office New 3105 2015 165 Schoolhouse Loop Fed X Addition Addition 6,460 2015 0 0 1 9,565 New Government, Public, Quasi -Public, Health Care YEAR ADDRESS NAME DESCRIPTION TYPE SQ FT 2022 120 School Station Ct. SD #5 Maintenance Bldg Government New 9,581 2022 116 School Station Ct. SD #5 Storage Bldg Government New 3,828 2022 124 School Station Ct. SD #5 Transportation Bldg. Government New 7,399 2022 343 Sunnview Ln. Logan Health Radiology Oncology Health New 14,446 2022 935 1st Ave W. Flathead County Courthouse Government Remodel 10,600 2022 45,854 2021 290 N Main St Flathead County North Government Remodel 16,821 2021 889 N Meridian Rd Flathead Warming Center Public Remodel 4,300 2021 21,121 2020 795 Granview Dr FVCC College Center New 67090 Modification 52,567 (existing) (existing) 67,090 Remodel 4,896 2020 310 Sunny View Lane 601 1st Ave W rd KRH r 3 Flr of Womens & Childrens Bldg Temporary Alternative Care Facilities/COVID-19 Church St Mathews Church M20 244 Stillwater Rd. Beehive Homes Assisted Living Addition 14,149 19,045 2018 580 N Meridian Rd Vision Clinic Health New 9,528 2018 60 Village Loop Oral Surgery Health New 3,400 2018 85 Village Loop Great Northern Dental Health New 3,210 2018 725 Grandview Dr FVCC School Addition 7,125 2018 135 Glenwood Dr Sterling Private School New 5,500 2018 28,763 2017 2155 Airport Rd Rankin Elementary School New 58,033 2017 320 Sunny View Ln Digestive Health Institute Health Care New 28,216 2017 120 1st Ave East Freshlife Church Church Addition 8,350 2017 0 94,599 2016 180 Timberwolf Pkwy Kalispell Oral Surgery Northwest Family Medicine Clinic Health Care Medical Offices New New 7,815 8,249 2016 70 Village Loop 2016 310 Sunny View Ln Womens & Children Pavilion Health Care New 164,691 2016 2205 Highway 93 N FVCC Housing Campus Housing New 51,277 2016 310 Sunny View Ln Central Plant Health Care Modification 8,241 2016 40 Claremont St ILC Memory Care Health Care Modification 25,485 2016 40 11 th St. W. Flathead County Skybridge New 1,041 2016 266,799 2015 40 11th St W Flathead County South Campus New 30,000 Offices 2015 820 S Main St Flathead County Juvenile Detention Remodel & 8,105 & Old Jail Addition 2015 242 Stillwater Rd Beehive Homes Nursing Home New 12,149 2015 255 Summit Ridge Assembly of God Church Addition 4,968 2015 405 Liberty Street Faith Free Lutheran Church Addition 11,754 2015 66,976 Source: City of Kalispell Building Permits, 2015-2022 10 City of Kalispell Construction Value Summary Figure 6 provides an overview of construction values of the different types of residential and non- residential projects. These values are not market values and do not include land or utility values. Figure 6 New Construction Values by Type $140 $120 $100 o $80 $60 $40 $20 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CITY OF KALISPELL LAND SUBDIVISION ACTIVITY Final Subdivision Plats The purpose of the final plat is to review the proposed subdivision for proper final engineering and subdivision design, to provide for dedication of lands required for public use, for the construction of public improvements, and for conformance with the preliminary plat. The final plat incorporates all modifications required in its preliminary plat review. Once a subdivision is final platted all of the associated lots can be sold and city services are available to the lot. 11 Figure 8 Final Plats, City of Kalispell 2012-2022 (includes all types of lots including roads and open space) 400 350 300 250 200 150 F- 100 r 50 0 ® e �Qti �Qti tidy tidy tidy tidy tidy �Qti �Qti �Qti ti 0 NEW SUBDIVISION LOTS ■ACRES IN NEW SUBDIVISIONS Source: City of Kalispell Planning Department Subdivision Applications: 2012-2022 Table 4 Final Plat Activitv Summary Citv of Kalisbell all types 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL new lots 10 36 34 39 44 97 156 238 128 197 979 Acres in lots 21.9 37.7 40.3 30.5 22 40 61.369 87.91 28.775 118.228 488.682 Acres in open space 3.7 2.6 3.0 0 2.5 2.6 26.991 17.69 1.708 16.453 77.242 Acres in roads 0 3.3 3.2 .4 2.3 7.4 12.84 15.87 11.63 15.485 72.425 Total acres 25.6 43.6 46.5 30.9 26.8 50 101.20 121.47 42.113 150.166 638.349 Source: City of Kalispell Planning Department Subdivision Applications: 2013-2022 12 Table 5 Approved Final Subdivision Plats by Lot Type, City of Kalispell (Total acres include roads, parks and open space) W Com, Ind Single Multi Park- w SUBDIVISION Total # or Public Family Dup or family open Total Road or } NAME of lots lots lots TH lots lots space acres location Creekside Commons 1 1 acres 1.00 Glenwood Ave Eagle Valley Ranch 83 14 67 2 6.483 42.35 Rose Crossing Phases 2 & 3 N Spring Creek Park 1 41.68 Two Mile N Phase 1A Quail Meadows 39 39 0.06 10.01 Tronstad Starling Phases 1-3 73 31 41 1 4.53 20.84 Stillwater Rd Total2022 197 14 137 41 4 11.073 115.88 Jaxson Ridge 24 24 1.008 3.9 Bull Run/Woodland Village Heights Lot 1 2 2 1.43 Meadows Edge 37 37 0.56 10.2 Three Mile Phase 2 Westview Estates 22 22 6.2 Owl Loop N Phase 5 0 N Northland 1 1 0.42 Parkridge Dr Phase 2 Lot 52 Northland Phase 5D 40 20 20 0.14 7.71 Northridge Way Stillwater Crossing 2 1 1 7.28 Stillwater/Four Mile Total2021 128 3 80 44 1 1.708 37.14 Meadows Edge 97 48 49 4.18 27.14 Farm to Market Phase 1 B Westview Estates Owl Phase 4 18 18 1.015 7.255 Loop/Landing Lane Snowline Acreage (Frontier Village 1 1 8.3 Treeline Rd A is Eagle Valley Ranch 49 47 2 4.077 21.919 Rose Crossing 0 Phase 1 Kalispell North Town 16 16 0.304 26.176 Rose Crossing N Center Phase 3 Northland 14 14 3.62 6.83 Northland Dr Phase 5A & 5B Glacier Rail Park 1 1 9.49 Rail Park Dr AM D Lot 4 Cottage Gardens 37 37 4.232 11.757 Three Mile Silverbrook 1 1 1.59 Silvertip Trail Phase 2A —Lot 287 13 Peterson Acre 4 4 0.258 1.01 College Avenue Total2020 238 18 168 69 3 17.69 121.47 Amended Lot 1 of 2 2 0.432 Village Loop Village Plaza Brightview Phase 2 13 13 26.05 Reserve Place & Wolfpack Way Meadows Edge 45 19 26 5.95 14.82 Farm to Market Phase 1A Glacier Rail Park 4 4 20.3 44.07 Rail Park Drive 0) CD T Village Greens N 34 34 5.24 Palmer Dr Phase19 Rocky Mountain 2 2 0.959 Glenwood Ave Education Southside Estates 56 4 52 0.437 9.625 Destiny Lane Phase 2 Total2019 156 21 23 112 26.687 101.2 Owl View 3 3 3.8 Taelor Rd Glacier Village 18 2 16 0.6 3.6 W Nicklaus Greens Ph 21 Ave Treeline Village 7 7 6.785 Treeline Rd Silverbrook Ph 2A-A 2 2 0.37 4.48 Church Dr co CD Vista 7 7 1.528 Mountain Vista N Estates Ph 4C Cliff View 3 3 0.615 Mile High Ct Bloomstone Ph 2 46 36 10 1.61 11.187 Treeline Rd Silverbrook Ph 2B-A 11 10 1 18.3 Silvertip Trl Total2018 97 9 58 26 4 2.58 50.3 Source: City of Kalispell Planning Department Subdivision Applications: 2018-2022 Preliminary Subdivision Plats These are proposed subdivisions that the preliminary plats have been approved and have not had a final plat application submitted or approved yet. When a preliminary plat application is approved, the applicant has 3 years to submit the final plat for approval, or an extension can be requested. Table 6 2022 Preliminary Subdivision Applications COM, IND, SINGLE MULTI SUBDIVISION TOTAL DUP/TH ROAD OR NAME LOTS PUBLIC FAMILY LOTS FAMILY ACRES LOCATION LOTS LOTS LOTS Silverbrook Ph 3 12 2 10 22.1 Church Dr. Kalispell North 37 37 10.4 Jefferson Blvd. Town Center Ph 5 Aspen Creek West 60 31 29 20 Three Mile Dr. Meadows Edge pH 98 21 77 38.13 Farm to Market Rd. 4A&4B TOTAL 195 j 0 j 89 106 j 0 j 68.53 14 Vacant Lot Inventory Beginning with the 2009 report, the Planning Department began an inventory of the approximate number of vacant lots in subdivisions that were final platted in the City of Kalispell since 2000. The vacant land and lot numbers do not include parks, or other open space or vacant school lands. These lots have city services available and are ready to be developed. A list of subdivisions approved since 2003 and the approximate number of vacant lots within each subdivision as of December 31, 2022 is provided in Tables 7 and 8. Table 7 Number of Vacant Non -Residential Lots in Subdivisions Approved from 2003 through 2022 Approved Name Vacant Type of Vacant Lots General Location Lots Village Loop/Whitefish 2021 Village Heights 1 Commercial Stage Rd Cascade Loop/Rose 2020 Kalispell North Town Center Ph 3 7 Commercial Crossing 2020 Glacier Rail Park AMD lot 4 1 Commercial Rail Park Dr 2019 Amended Lot 1 Village Plaza 1 Commercial Village Loop 2019 Brightview Phase 2 7 Commercial Reserve Place/Wolfpack Way 2018 Kalispell North Town Center Ph2 10 Commercial Rose Crossing Westview Business Center & 2007 1 Commercial N Meridian Rd Westview Business Center No 2 2006 Appleway Business Park 2 Commercial Appleway Dr US Hwy 93 S & 2006 Old School Station 13 Industrial Demersville Rd 2005 Daley Field 2 Commercial US Hwy 93 S 2003 J & L Subdivision 1 Commercial S Meridian Rd Total Vacant Commercial/Industrial Lots 46 15 Table 8 Number of Vacant Residential Lots in Subdivisions Approved from 2008 through 2022 Approved Name Residential Vacant Lots General Location 2022 Starling Phases 1-3 31 Stillwater Rd 2022 Quail Meadows 27 Hwy 93 N / Tronstad 2022 Eagle Valley Ranch Phases 2 & 3 66 Hwy 93 N /Rose Crossing 2021 Jaxson Ridge 2 Bull Run 2021 Westview Estates Phase 5 2 Owl Loop 2021 Northland Phase 5D 18 Northridge Way 2020 Westview Estates Ph 4 1 Owl Loop/Landing Lane 2020 Eagle Valley Ranch Phase 1 2 Rose Crossing 2020 Cottage Gardens 17 Three Mile 2018 Cliff View 2 Mile High Ct 2016 Owl View Townhomes 2 Taelor Rd 2014 Northland Ph 4 2 Northland Dr/ Four Mile Dr 2008/2009 Silverbrook Estates Ph 1 & 1A 30 US Hwy 93 & Church Dr 2009 West View Estates Ph 3 1 W Reserve Dr Total Vacant Residential Lots 203 Source: City of Kalispell Planning Department; Existing Land Use Inventory, December 31, 2022 The appendix of this document contains a map showing the vacant lands in the City of Kalispell and in the Annexation Policy area as of December 31, 2022. (Map 8) 16 Annexation Activity Annexations are generally accomplished through a petition by the property owner or developer representing the property, and are requested for the main purpose of accessing city utilities allowing for higher density residential and commercial development. The area of the City of Kalispell has more than doubled in land area since 2000. U. S. Census data determined that the area of the City of Kalispell in 1990 was 4.4 square miles and 5.5 square miles in 2000. At the end of 2022, the City of Kalispell encompassed approximately 8085.4lacres or 12.63 square miles. 13 11 Figure 9 City of Kalispell Land Area 2016 2017 2018 2019 2020 2021 2022 17 Table 9 City of Kalispell Annexations 2017 — 2022 RES# DATE SEC TWN RNG LOCATION ACRES PROPOSED LAND USE/ DEVELOPMENT NAME 6068 5/16/2022 20 28 21 5th Ave E 0.7 Residential 6075 6/20/2022 12 29 22 Church Dr. 37.635 Mixed 6080 7/5/2022 19 29 21 Hwy 93 N 5.43 Mixed 6076 6/6/2022 20 28 21 S. Woodland Dr. 5.88 Residential 6085 8/15/2022 20 28 21 S. Woodland Dr. 0.33 Residential 6106 10/17/2022 19 28 21 Airport Rd. 0.46 Residential 6107 1 10/17/2022 1 20 28 21 S. Woodland Dr. 4.6 Residential 2022 TOTAL ACRES ANNEXED 55.035 6020 5/17/2021 28 21 8 Woodland Dr 0.53 Convience Store/Gas Station 6031 6/21/2021 29 21 19 Ponderosa Lane 1.48 Veterinary 6049 9/7/2021 29 28 21 Palmer Dr 0.02 Residential 6052 10/4/2021 28 21 29 Airport Rd 38.4 Mixed 6056 12/6/2021 29 28 21 Hwy 93 S 20.94 RV Sales & Service 2021 TOTAL ACRES ANNEXED 61.37 5974 6/1/2020 1 28 22 Three Mile Dr. 2.4 Residential 5980 7/20/2020 31 29 21 Hutton Ranch 3.27 Apartments 5975 6/1/2020 11 28 22 Two Mile Dr. 0.5 Residential 6002 10/5/2020 18 28 21 81h Ave W. 0.17 Residential 2020 TOTAL ACRES ANNEXED 6.34 5907 1/22/2019 2 28 22 Two Mile Dr. 1 Residential 5923 6/17/2019 19 28 21 Sunnyside Dr. 2.5 Residential 5950 12/2/2019 17 28 21 Woodland Dr. 3.9 Residential 2019 TOTAL ACRES ANNEXED 7.4 5849 1/1/2018 19 28 21 Airport Rd 9.6 Residential 5856 3/5/2018 28 22 12 Two Mile Dr 20 Residential 5858 3/7/2018 32 29 21 Whitefish Stage 0.875 Residential 5869 5/7/2018 11 28 22 Two Mile Rd 90.76 Residential-Com. 5871 5/7/2018 13 28 22 Fenn Way 10.48 Residential-Com. 5873 6/4/2018 3 28 22 Farm To Market Rd 112 Residential-Com. 5899 9/4/2018 29 28 21 Hwy 93 Alternate 4.27 RV Park 2018 TOTAL ACRES ANNEXED 247.98 5796 1/3/2017 20/29 28 21 Airport Rd 24.88 Rankin Elementary School 5814 6/5/2017 24/25 29 22 Hwy 93 / Nob Hill Rd 56 Residential & Business 5815 6/5/2017 19 28 21 Sunnyside Dr 4 Residential 5824 8/7/2017 21 28 21 5th Ave E 0.67 Residential 5839 10/2/2017 17 28 21 5th Ave E 0.16 Residential 5825 1 8/21/2017 1 20 1 28 21 Airport Rd 3.89 Commercial 2017 TOTAL ACRES ANNEXED 89.6 18 APPENDIX — Maps 1 City of Kalispell, New Residential Construction, 2022 -Map Map 2 City of Kalispell, New Residential Construction, 2015 through 2022 Map 3 City of Kalispell, Commercial, Industrial Office of Public Construction, 2022 Map 4 City of Kalispell, Commercial, Industrial Office or Public Construction, 2015 through 2022 Map 5 City of Kalispell Subdivision Activity, 2022 Map 6 City of Kalispell Subdivision Activity, 2015 -2022 Map 7 City of Kalispell Annexations, 2022 Map 8 City of Kalispell Annexations, 2015-2022 Questions and comments regarding this report should be directed to: City of Kalispell Development Services 201 1st Avenue East Kalispell, MT 59901 Phone (406) 758-7940 A hard copy of this report is available for purchase at the City of Kalispell Planning Department or can be viewed or downloaded online at NEW RESIDENTIALCONSTRUCTION (kalispell.com). 19 Map 1. City of Kalispell., New Residential Construction - 2022 Kalispell City Limits Ll h ­2 New Single Family Unit New Townhouse or Duplex Unit New Multi -family Unit L F7 FJU _77 1 7L QE ET s in W Reserve, F1 U, :OF Li :j: I -fi JL,' N Tl Four Mile Dr, fn qLif-tv- z �Ft LVPL- _T P 5le ES - Three Mile Dr J 'T, L cr I`J —\Ta L Whaleb oe [r IS L I a==� < 7 L I F e )L L --d —1 L E LIT 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS Map 2. City of Kalispell., New Residential Construction - 2015 to 2022 Kalispell City Limits F New Single Family Unit Church Dr E:7 New Townhouse or Duplex Unit New Multi -family Unit It Ll 14 FLU. FT— F, r ssina iiq� r7 F_ F_ L L T V Rq;pNe L F-I �urrM TX El 7 F 144 LIE L Dr'_ 717 17, F -7- -_7 IL jy­ hre�ele Dr Three Mile Dr TZ S 4P% ILI I W SEE FIB L L L I-F Wha ebode Dr_�,,, 17 I —T -A F j- / erne ry d _T F— er T , E T F _T 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS Map 3. City of Kalispell, Non -Residential Construction - 2022 ��reh Dr I �-�r— L ZI J �0 Kalispell City Limits Commercial, Industrial, Office or Health Care Construction Government, Public, Quasi Public Construction (Project Valuation $200,000 and higher) �i A Ir / �� L � I L 4d — 7k n H T,] _tom "I IL h R �— FgiFrMi rm To MarR t Rd 3 p'r' z y JI � ' L V / Three Three Mile Dr Mile Dr m -a `i J aalr"III I' - - �� I, r Hr nl b y�' � / Wha ebgne l f - `\ \ {III \ 4l P v ii,� 4 `—I� c 1 JAI l C p . J 1 �''. eM @ery I �W � ii1 � III Ff �I i O — f% i VA 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS Map 4. City of Kalispell, Non -Residential Construction - 2015 to 2022 Church D� I' t �- Tj i • p Four Mile Dr Ole N Three • • Mile Dr II �I01�1111 —1 Kalispell City Limits • Commercial, Industrial, Office or Health Care Construction Government, Public, Quasi Public Construction a ❑ - ¢ssin i - r- a J L it 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS 0 0.5 1 2 3 4 Miles Updated January 2023 - Austin Bachurski Data Sources: City of Kalispell GIS, Flathead County GIS cITYOF City of Kalispell 201 1st Ave E. P.O. Box 1997 KALISPELL Kalispell, Montana 59903-1997 (406) 758-7000 Fax (406)7757 REPORT TO: Mayor Johnson and Kalispell City Council FROM: Doug Russell, City Manager SUBJECT: Review of Acts of Panhandling and Roadway Transactions MEETING DATE: February 27, 2023 BACKGROUND: At the meeting on 2/21/23, it was requested that Council hold a work session regarding a review of our current acts of panhandling ordinance and potential ordinances related to conducting transactions in the right-of-way. I am attaching current Kalispell Municipal Code 19-19 Certain Acts of Panhandling Prohibited, an ordinance out of Pasco County, Florida, 82-1 Dangerous Use of Public Right of Way, and an ordinance out of Springville, Utah, 23-2022 Unlawful Transfer on a Roadway. RECOMMENDATION: It is recommended that the City Council review and discuss the ordinances and direct staff accordingly. ATTACHMENTS: KMC 19-19 Pasco County, Florida, Ordinance 82-1 Springville, Utah, Ordinance 23-2022 Kalispell, Montana City Code Chapter 19 OFFENSES; MISCELLANEOUS 19-19 Certain Acts of Panhandling Prohibited. A. Definitions: Panhandling. PANHANDLING, for the purpose of this section, is any solicitation made in person requesting an immediate donation of money or other thing of value. Purchase of an item for an amount far exceeding its value, under circumstances where a reasonable person would understand that the purchase is in substance a donation, is a donation for the purpose of this section. So long as the solicitor is not within twenty (20) feet of an intersection, panhandling does not include passively standing or sitting with a sign or other indication that one is seeking donations, without addressing any solicitation to any specific person other than in response to an inquiry by that person. B. Time of Panhandling: Any person who panhandles after sunset or before sunrise is guilty of a misdemeanor. C. Place of Panhandling: Any person who panhandles when the person solicited is in any of the following places is guilty of a misdemeanor: 1. Within twenty (20) feet of any bus stop; 2. In any public transportation vehicle; 3. Within twenty (20) feet of any street intersection or highway intersection; 4. On private property, unless the solicitor has, in his or her possession, permission from the owner or occupant. D. Manner of Panhandling: Any person who panhandles in any of the following manners is guilty of a misdemeanor: 1. By coming within three (3) feet of the person solicited, until that person has indicated that he or she does wish to make a donation; 2. By blocking the path of the person solicited along a sidewalk or street; 3. By following a person who walks away from the panhandler; 4. By using profane or abusive language, either during the solicitation or following a refusal; 5. By panhandling in a group of two (2) or more persons; or 6. By any statement, gesture, or other communication which a reasonable person in the situation of the person solicited would perceive to be a threat. E. Penalty: Any person convicted of the violation of any of the provisions of this section shall be punished as provided in Section of this Code. (Ord. 1729, 7-15-2013) Contact: City Clerk: 406-758-7756 Published by Quality Code Publishing, Seattle, WA. By using this site, you agree to the terms of use. Sec. 82-1. - Dangerous use of public rights -of -way. (a) Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning: (1) Designated roadways means the interstate system (including interstate entrance and exit ramps), and arterial and collector roadways or rights -of -way. For purposes of this definition, collector and arterial roadways or rights -of -way shall be those roadways classified as collector, arterial, or Interstate/Toll roadways on the Highway Vision Plan & Functional Classification Map, or classified as a collector, arterial, or Interstate/Toll roadway pursuant to the functional classification or reclassification procedures and criteria established pursuant to the Pasco County comprehensive plan. This definition also encompasses those portions of these designated roadways located within a municipality. It also encompasses the first 440 feet of local roadways intersecting with these designated roadways. The portions of these designated roadways subject to this section include the portions within the area open for vehicular traffic (including medians), plus four feet outside of the shoulders and/or curbs. (2) Legally parked means a vehicle that is standing, stopped, or parked in an area designated, or legally authorized, for parking. (3) The traveled portion of a designated roadway means any portion of a designated roadway (including travel lanes, turn lanes, and shoulders) that is normally used by moving motor vehicle traffic that is not a lawful parking area. (4) Median means any area separating traffic lanes on a roadway. A median includes, but is not limited to, any paved or unpaved, landscaped or nonlandscaped, portions of a roadway which exist between opposing lanes of traffic. For the purpose of this section, the phrase "public rights -of -way" shall be defined as set forth in F.S. (2021) § 334.03(21), and as may be amended. (b) Prohibitions. Except as provided herein, or as otherwise permitted by law, it is unlawful to make any use of the public rights -of -way in a manner that interferes with the safe and efficient movement of people and property from place to place on a public road or right-of-way. Such prohibited activity includes, but is not limited to: (1) Occupancy of median. It is unlawful for any person to stop, stand, or otherwise occupy or remain in a median on any designated roadway when that person is not in the process of lawfully crossing the road in accordance with applicable traffic and safety laws. a. Presumption. Stopping, standing, or otherwise occupying a median through two consecutive opportunities to cross in accordance with applicable traffic and safety laws is prima facie evidence of a violation of this subsection. (2) Physical interaction on roadway. It is unlawful for any person to engage in any physical interaction between a pedestrian and an occupant of a motor vehicle, including but not limited to the transfer of any product or material, while the motor vehicle is not legally parked and is located on the traveled portion of a designated roadway. (3) Commercial use of public rights -of -way. It is unlawful to use any public right-of-way for commercial activity. Commercial activity prohibited by this section includes, but is not limited to, vending or sale of goods, display or goods for sale, storage of goods for sale in connection with commercial activity, or repair or manufacturing of goods. Signage is not "commercial activity" regulated by this chapter. (c) Exemptions. Nothing in this section shall prohibit the following: (1) Law Enforcement, fire and rescue, or other government employees or contractors acting within the scope of their lawful authority; (2) A person conducting inspection, construction, maintenance, repair, survey, or other legally authorized services; (3) A person responding to lend aid during an emergency situation; (4) Entering or exiting a bus or other public transit system; (5) Use of public roads and rights -of -way that have been closed to vehicular traffic for a special event permitted by the appropriate governmental entity. (d) Penalties. Any person who is found to be in violation of any provision of this section shall immediately cease the activity in violation and may be issued a citation punishable by a fine not to exceed $500.00, as authorized under F.S. § 125.69(1) and Section 1-11 of this Code. Each action in violation of a provision of this chapter shall constitute a separate offense. Issuance of a citation does not preclude an action for injunction, issuance of a trespass warning where authorized, or any other legal remedy available to Pasco County. (Ord. No. 22-05, § 3, 2-22-22) ORDINANCE: #23-2022 SHORT TITLE: AN ORDINANCE ADOPTING SECTION 9-2-105.5 OF THE SPRINGVILLE CITY CODE TO RESTRICT UNLAWFUL TRANSFER ON A ROADWAY WITHIN SPRINGVILLE CITY LIMITS. PASSAGE BY THE SPRINGVILLE CITY COUNCIL ROLL CALL NAME MOTION SECOND FOR AGAINST OTHER Liz Crandall Craig Jensen Vst-- . Chris Sorensen Jason Miller V/ Mike Snelson V TOTALS This ordinance was passed by the City Council of Springville, Utah on the 06t" day of December 2022, on a roll call vote as described above. Approved and signe 4 y me t 061"day of December 2022 4 Matt Packard, Nfayor CITY RECORDER'S CERTIFICATE AND ATTESTATION This ordinance was recorded in the office of the Springville City Recorder on the 061h day of December 2022, with a short summary being posted on the 091h day of December 2022; to the Utah Public Notice Website, and according to UCA 10-3-711. I hereby certify and attest that the foregoing constitutes a true and accurate record of proCgggjjg2s with respect to Ordinance #23-2022. oWE r Signed this 061h day of December 2022 Kim Crane, City Recorder ORDINANCE #23-2022 AN ORDINANCE ADOPTING SECTION 9-2-105.5 OF THE SPRINGVILLE CITY CODE TO RESTRICT UNLAWFUL TRANSFER ON A ROADWAY WITHIN SPRINGVILLE CITY LIMITS. WHEREAS, Springville City has a duty to preserve the health, safety and welfare of its inhabitants; and WHEREAS, the Springville City Council finds that adopting this ordinance is necessarily to protect and provide safety for people on certain roadways by limiting transfers from vehicles directly to individuals; and WHEREAS, in the interest of the health, safety and welfare of its citizens, Springville City deems it appropriate and necessary to prohibit unlawful transfers on certain roadways within Springville City limits. NOW THEREFORE, the Springville City Council hereby ordains: SECTION 1. SECTION ADOPTED: Section 9-2-105.5 of the Springville City Municipal Code is hereby adopted to read and provide as follows: 9-2-105.5 Unlawful Transfer on a Roadway. 1) It is the intent of this Section • to enhance the safety of pedestrians and motor vehicle occupants on public roadways and public parking lots within Springville City limits; • to assure the free, orderly, and undisrupted movement of motor vehicles on public roadways within Springville City municipal limits; and • to ensure that transactions between pedestrians and motorists within Springville City limits are undertaken in an orderly manner and do not create motorist frustration, annoyance or hostility. This Section is intended to apply evenhandedly to all persons who engage in the activities proscribed regardless of their intent or any message they may be attempting to communicate incidental to the proscribed activity. 2 For purposes of this Section the following definitions shall applyj (a) "Roadway" means the paved portion of the following types of streets: (i) Springville City streets designated as collector streets in non- residential zones or arterial streets; and (ii) highways owned and maintained by the State of Utah or Utah County. Ordinance #23-2022 Page 1 of 2 (b) "Legally parked" means a vehicle that is standing, stopped, or otherwise qppropriately parked in an area desi ned or IeqaIIV authorized for parkinq. (3) It shall be unlawful for a person: (a) While a pedestrian, to accept, take or otherwise obtain possession or control of any money or personal property from a person within a motor vehicle while that motor vehicle is within a roadway or on publicly owned property used as an entrance or exit to a roadway; or to give, hand over, or relinquish possession or control of anV moneV or personal propertV to a person within a motor vehicle while that motor vehicle is within a roadway or on publicly owned property used as an entrance or exit to a roadwa • or (b) While a driver or passenger in a motor vehicle in a roadway or on publicly_ owned property used as an entrance or exit to a roadway, to give, hand over, or relinquish possession or control of any money or personal property to a pedestrian; or to accept, take or otherwise obtain possession or control of any money or personal property from a pedestrian. 4 Notwithstanding anything to the contrary in this Section the activities proscribed b this Section shall not be unlawful it (a) such actions are required as the result of a traffic accident medical emergency, or similar exigent circumstances; (b) such actions are directed by a peace officer or authorized traffic control officer in the course of their official duties; or (c) the transaction is undertaken after the motor vehicle has been legally parked. (5) Any person violating this Subsection shall be guilty of a Class C misdemeanor. SECTION 2. EFFECTIVE DATE: This ordinance shall become effective immediately upon passage and posting_ PASSED, ADOPTED AND ORDERED POSTED b e Council of Springville City, Utah this 06th day `LofkDecember, 2022. ORATE r / MAYOR MATT PACKARD ATTEST: VILLE_ KIM CRANE, CITY RECORDER Ordinance #t23-2022 Page 2 of 2