09-15-23 Tax Increment Financing Staff Report for Public ProjectsSTAFF REPORT KRD 23-01
DOWNTOWN AND WEST SIDE -CORE AREA PUBLIC PROJECTS
REQUEST FOR DOWNTOWN AND WEST SIDE -CORE AREA TIF ASSISTANCE
KALISPELL COMMUNITY DEVELOPMENT
SEPTEMBER 14, 2023
This is a report to the Urban Renewal Agency and Kalispell City Council regarding a request for Tax Increment
Finance (TIF) Assistance for public infrastructure projects in both the Downtown and West Side -Core Area
Tax Increment Finance Districts. A public meeting on this matter has been scheduled before the Urban Renewal
Agency for September 20, 2023, beginning at 4:00 PM, at Kalispell City Hall. The Urban Renewal Agency
will forward a recommendation to the Kalispell City Council for final action.
TIF Assistance Program Overview: The City of Kalispell Development Services staff is requesting
funding for a total of four public infrastructure projects within both the Downtown (one project) and West
Side -Core Area (three projects) TIF Districts. This report will analyze the proposal in accordance with state
law and adopted city policies. On December 17, 2012, Kalispell City Council adopted the Core Area Plan
as an amendment to the City of Kalispell Growth Policy 2020 by Resolution No. 5601A. The Core Area
Plan addresses needs and priorities affecting redevelopment of the Core Area. On December 4, 2017,
Kalispell City Council adopted The Downtown Plan as an amendment to the City of Kalispell Growth
Policy Plan -It 2035 by Resolution No. 5846. Additionally, the Council adopted the West Side Urban
Renewal -Core Area plan by Ordinance 1717 (Original Ordinance 1259) and the Downtown Urban Renewal
Plan by Ordinance 1816. The City of Kalispell utilizes a Tax Increment Finance District (TIFD) within
both urban renewal plan boundaries as part of the overall strategy to meet its needs of eliminating blight,
promoting economic development, improving area employment opportunities, improving area housing
opportunities, and expanding the community's tax base in addition to other needs identified in the Montana
Code Annotated.
The Kalispell City Council created the Downtown Kalispell TIF Assistance Program and Amended West Side
— Core Area TIF Assistance Program in 2019, by Resolution 5955. The TIF Assistance Programs were
developed to support redevelopment activity and advance the goals of both the Downtown Kalispell Urban
Renewal Plan and West Side -Core Area Urban Renewal Plan. The statements of policy within the TIF
Assistance Programs shall be utilized by the Urban Renewal Agency (URA) whenever it gives
recommendations to the City Council regarding project funding.
Further, the Downtown Kalispell and West Side - Core Area Tax Increment Financing Assistance Programs
identify Public Infrastructure Programs as recommended by the Council. Such project activities as allowed
under City policy and Montana state law include the acquisition, construction, and improvement of public
improvements or infrastructure, publicly owned buildings, and any public improvements authorized by Title
7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and Title 7, chapter 14, part 47, and
items of personal property to be used in connection with improvements for which the foregoing costs may
be incurred, Sec. 7-15-4288(4), MCA. The Council previously held a work session on the proposed projects
and directed staff to bring them forth for URA consideration and recommendation. It should be noted that
the four projects summarized below are already designated projects within both the West Side -Core Area
and Downtown Urban renewal plans; therefore, plan amendments and associated urban renewal processes
are not necessary.
Applicant: City of Kalispell
201 1" Avenue East, Kalispell, MT 59901
Proposed Projects: Staff is requesting TIF Assistance for four (4) public projects, which are all eligible
projects per the adopted City of Kalispell Public Infrastructure Program and State Urban Renewal Law. The
first three projects are located within the West Side — Core Area boundary and project four is located within
the Downtown boundary. The projects consist of the following:
Depot Park Building Remodel — Rehabilitation of the building in Depot Park in order to relocate
the Parks and Recreation Department to that facility. Rehabilitating the building would include, but
not limited to, AC/Heat, interior paint, exterior paint, window replacement, floor plan modifications,
flooring, new roof, gutters, cabling, cameras, door chime, awning, and asbestos abatement. This
project is eligible under MCA 7-15-4288 (4):
Strategies:
the acquisition, construction, and
i Promote public art Lind cultural actuwutivs.
improvement ofpublic improvements or
i I romol:e conservatioan/adal)W ede reuse cutirrcprdaeeapade hjstsaric
ra^snnrces.
infrastructure, publicly owned buildings, and
any public improvements authorized by Title
Policies,:
i, Work with the Montana llisturfead Society for the i7taMrgnunse axl"
7, chapter 12, parts 41 through 45; Title 7,
supporting his`er1c p eservatn"' " the Core Area.
i Promote design stmndarets our paaeprang with the styles and
chapter 13, parts 42 and 43; and Title 7,
materials art historic haupaiiangs in tore ncighhorhood.
chapter 14, art 47, and items oft'ersonal
J. Support current . enkural activities such as Art m. the Park andehit'
t'
Picnic in the Murk,
property to be used in connection with
ill. Expand tare eaent5 in tine Core
improvements for which the foregoing costs
Area
Munn
S. firearm.age publIc/priwate partnerships to the creiltionr and
may be incurred. In addition to state law, this
dis pay of art.
fits into the adopted West Side — Core Area
hMorirt conservation and aepalrtaurae uwse of
Y
uflpreservation,
laistcarir, i�auoticYon@;.s,.
Urban Renewal Plan on page 29 (see snip to
the right).
Strategies:
2. WYE Track Purchase — The Council has
p. PrOvidesufficient parklanclopensi�acefl.omeetffixne�edsarttf c
surrounding
previously approved the acquisition of land ("Wye
Doveiopn new parks to accommodate p copdc ant Mud ages.
Track" adjacent to the Parkline Trail for further
)
Improvements sf°"`Mani aeravMrrmardate tdae oleo ari the iaa°�'`
�
thraa the
tpuu�anngluowttdneday.
redevelopment as part of the trail connections, etc.
leading to the bypass trail and making safety
Policies:
i. D"nnurage time development or the redevelopment of� park
improvements along that stretch west of Meridian
spaces to, serve people's needs togather, conver5eand enjoy OIL'
Road. This project is eligible under MCA 7-15-
sin rt a nu n dnigs.
y. Prioritize deMopment in
the of an open air aunpvhitheader
4288(1) land acquisition; and MCA 7-15-4288(10)
wDeuplandPark,
the connection of the urban renewal area or
. Prioritize iaevw parks in high densuy residential neighborhoods.
g . hicurlicrate paarkaund open space development vw^uth the existing,,
targeted economic development district to existing
rail -trait path sy;tean.
infrastructure outside the area or district; in
Strategy"
addition to other provisions in the MCA's.
'1 Pro Ade safe„ pedestrian fr,ienddy envirouaaunents in residential
neighhorlrnntps.
Policies:
This fits into the adopted West Side — Core Urban provide increased oia-streaet fighting tnr higher denslty
Renewal Plan, including on page 34 and 35 (see residerlLkfl neighborhoods.
'. Encourak;e apartment buildings to increase security fighting
snippets to the right). inside their dcvepunp menu.
I Provide addptionnalpnautnhc or private prarle space to serve the
rt,Adentw of hpnplevway Drnve as vvc dd as tine greater community
N. Work to onnparove public access, including vehuci.e prarldrig, ten
tkc Fttails tu-Tiatis Meriaiian 'rrm ,along the south side of this
neighborhood,
5. ProvidepedesUlanauneuritie5(ti ads,sidewasks benches etc )to
assist and eoscourtaagte pedrsula n and falke tratric,.
c
3. Welcome to Kalispell Signage —
Also in the West Side — Core Area
Urban Renewal Area is the previously
approved Parkline Trail project which
includes signage on the bridge on the
eastern area of the trail. This project
was removed from the initial project
bid for cost saving measures. It has
been brought up to revisit the
fabrication and installation of the
sign. This is already part of an
approved project in the plan as
identified on page 40 (see snippet to
the right)
Strategy:
t Visually define tlae boundaries of the Core Area alan htrgla ay
93 and ltiglrway 2 tlrrouupli the juualido us use of way finding
su gauge.
polity
f EsUiblusda enhance features such as signs and visuuaad cues such
as budding dDcatron, buflding design and streetscaape features
along Main Street and palaho Street to define the boundaries of
tlae revitalization nation area and downtown,
n,
4. Police Evidence Facility — With the Parks and Recreation Department relocating to the building in
Depot Park, it is recommended that the current Parks and Recreation Department building be
remodeled into an evidence facility for the Police Department. Remodeling of the building into an
evidence facility coincides with the identified need in the 2023 analysis conducted by the Center for
Public Safety Management (CPSM) consulting report. This remodel will allow KPD to follow
national best practices and address space, security, chain of custody, and proper storage
protocols. Referring to the study, many of the issues facing our current evidence storage area will
be addressed by this building. Further, the increase in staffing recommendation will also be
addressed by allowing the investigations division to move into this building entirely.
This project is eligible under MCA 7-15-4288 (4) the acquisition, construction, and improvement
ofpublic improvements or infrastructure, publicly owned buildings, and any public improvements
authorized by Title 7, chapter 12, parts 41 through 45; Title 7, chapter 13, parts 42 and 43; and
Title 7, chapter 14, part 47, and items ofpersonal property to be used in connection with
improvements for which the foregoing costs may be incurred; and
7-15-4283(4) 'Infrastructure" means tangible facilities and assets related to water, sewer,
wastewater treatment, storm water, solid waste, and utilities systems including natural gas,
hydrogen, electrical and telecommunications lines, fire protection, ambulance and law
enforcement, workforce housing, streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys,
bridges, and other transportation needs, including but not limited to parking, park and ride
facilities and services, and bus, air, and rail service.
Additionally, the Downtown Urban Renewal Plan references reuse of buildings on page 19 and
public improvements on page 20 of the plan (see snippets below):
4. Encourage rehab llitation and reuse of existing downtown Ibuaiilldings.
X1. Public Improvements, Building and Site Preoaration, Demolition and
Clearance.
The City of Kalispell is authonzed to, demolish, remove, and clear, builidaigs, in whole or in part,
structures and other improvements from any real property to carry out the purpose of this plain.
The City of Kalispeil its also authorized to install and construct or cause to be installied and
constructed the public improvements, pubhc facHities and public utilides (wiJiin or outsWe the
district) as appropriate or necessary to, carry out the plian. Such improvements, facilities and
utilities incliude, but are not limited to, streets, curbs, gutteirs, sidewalks, street lights, sevver,
water, distribuflon, storm sewer', traffic signals, electrical dist6bution, parks, plazas, playgrounds,
telephone systems, fibeir optic, parking facilities„ landscaping and bus or pedestrian shelters. All
such improvements will be undertaken in accordance wiJi the City of Kalispell construction and
design standards.
Location of Property:
Depot Park Building: Located at 15 Depot Park, Kalispell, MT 59901
Wye Track Property: An approximately 14-acre piece of land located west of Meridian Road, East of the
bypass, south of Appleway Drive and north of Foys Lake Road encompassing BNSF railroad track in the NE4
and NE4SE4 OF Section 13, T28N, R22 W, P.M.M. Flathead County, Montana.
Police Evidence Facility — 306 1" Avenue East, Kalispell, MT 59901
Sign on Parkline Trail bridge: Viaduct located on the eastern terminus of City limits crossing East Idaho/U.S.
2.
CONCLUSION:
The four proposed public projects do comply with the expressed intent and the goals, policies, and
recommendations of both the Downtown Urban Renewal Plan and West Side — Core Area Urban Renewal
Plan and the Tax Assistance Program Policies as outlined above.
RECOMMENDATION:
Staff recommends that the City of Kalispell Urban Renewal Agency adopt staff report KRD-23-01 as findings
of fact and recommended to the Kalispell City Council that the four public projects be approved as provided.
ATTACHMENTS:
Tax Increment Assistance Program
Downtown Urban Renewal Plan
Core Area Plan