I3. Resolution 6167, TIF Public ProjectsKALisPEii,
Development Services Department
201 1st Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.com/plannine
REPORT TO: Doug Russell, City Manager
FROM: Jarod Nygren, Development Services Director
SUBJECT: KRD-23-01 — Request for Tax Increment Finance (TIF) Assistance for
public infrastructure projects in both the Downtown and West Side -Core
Area Tax Increment Finance Districts
MEETING DATE: October 16, 2023
BACKGROUND: 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 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 M.C.A. 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 projects consist of the following:
1. Depot Park Building Remodel — Rehabilitation of the building in Depot Park in order to
relocate the Parks and Recreation Department to that facility.
2. WYE Track Purchase — The Council has previously approved the acquisition of land ("Wye
Track") adjacent to the Parkline Trail for further redevelopment as part of the trail
connections, etc., leading to the bypass trail and making safety improvements along that
stretch west of Meridian Road.
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.
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.
The Council previously held a work session on the proposed projects and directed staff to bring them
forth for Urban Renewal Agency (URA) consideration and recommendation. The URA held a
meeting on September 20, 2023, to consider the request. At the meeting staff recommended that the
URA adopt staff report KRD-23-01 as findings of fact and recommend to the Kalispell City Council that
the four public projects be approved as provided. URA discussion concluded that the funding of Depot
Park Building, Wye Track purchase, and Welcome to Kalispell signage was appropriate. The URA did
not make a recommendation regarding the Police Evidence Facility.
RECOMMENDATION: It is recommended that the Council adopt Resolution 6167, a Resolution
authorizing the use of Downtown Kalispell and West Side - Core Area Tax Increment Financing for
four public projects including the Depot Park Building, Wye Track purchase, Welcome to Kalispell
signage, and Police Evidence Facility.
FISCAL EFFECTS: Following the solicitation of bids, the Downtown Kalispell and West Side -
Core Area Tax Increment Financing Districts will fund the four projects.
ALTERNATIVES: Deny the request.
ATTACHMENTS: Resolution 6167
Staff Report KRD-23-01
Urban Renewal Agency Minutes
Aimee Brunckhorst, Kalispell City Clerk
RESOLUTION NO. 6167
A RESOLUTION AUTHORIZING THE USE OF DOWNTOWN KALISPELL AND WEST
SIDE - CORE AREA TAX INCREMENT FINANCING FOR FOUR PUBLIC PROJECTS
INCLUDING THE DEPOT PARK BUILDING, WYE TRACK PURCHASE, WELCOME TO
KALISPELL SIGNAGE, AND POLICE EVIDENCE FACILITY.
WHEREAS, the City of Kalispell, Montana (the "City") is authorized by Montana Code Annotated,
Title 7, Chapter 15, Parts 42 and 43, as amended (the "Act"), to create an urban renewal
area, to undertake urban renewal projects therein, to provide for the segregation and
collection of tax increment with respect to property taxes collected in the urban renewal
area, to issue its bonds to pay the costs of such projects and to pledge to the repayment
of the bonds the tax increment derived from the urban renewal area; and
WHEREAS, in accordance with the provisions of the Act, 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, and on December 4, 2017, Council adopted The
Downtown Plan as an amendment to the City of Kalispell Growth Policy Plan -It 2035
by Resolution No. 5846, both after duly mailed and published notice and a public
hearing and receipt of recommendations from the Kalispell City Planning and Zoning
Board, which certified that the Urban Renewal Plans conform to the general plan for
the development of the City as a whole and the comprehensive plan of the City for the
areas containing the Urban Renewal Areas; and
WHEREAS, City 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; and
WHEREAS, in both the Downtown and West Side/Core Area Urban Renewal Plans there are Public
Infrastructure Projects which are eligible for Tax Increment Financing; and
WHEREAS, each project is able to be funded under the adopted Urban Renewal Plan under MCA
Title 7, Chapter 12, Chapter 13, or Chapter 14; as follows:
a. In the Westside Urban Renewal Area, rehabilitating the building in Depot Park in
anticipation of relocating the Parks and Recreation Department to that facility is
eligible under MCA 7-15-4288 (4), "public improvements of infrastructure or publicly
owned buildings;" and
b. In the Westside Urban Renewal Area, the acquisition of land adjacent to the Parkline
Trail for further redevelopment as part of the trail connections which lead to the bypass
trail, making safety improvements along the trail, are eligible under MCA 7-15-
4288(1), "land acquisition;" and under MCA 7-15-4288(10), "the connection of the
urban renewal area or targeted economic development district to existing
infrastructure outside the area or district,` and
c. In the Westside Urban Renewal Area, signage on the bridge at the eastern entrance of
the trail, visually defining the boundary of the Core Area is eligible under MCA 7-15-
4288(1), "land acquisition;" and under MCA 7-15-4288(10), "the connection of the
urban renewal area or targeted economic development district to existing
infrastructure outside the area or district,` and
d. In the Downtown Urban Renewal Area, renovating the current Parks and Recreation
building into an evidence facility for the Kalispell Police Department is eligible under
MCA 7-15-4288 (4), `publicly owned buildings."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. That the above listed projects be funded by Tax Increment Financing in the
Core Area and the Downtown Urban Renewal Area.
SECTION 2. This Resolution shall become effective immediately upon its passage by the
City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 16TH DAY OF OCTOBER, 2023.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor
STAFF 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 lst 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
1. Promote public art and cultural activities.
improvement ofpublic improvements or
2. Promote conservation/adaptable reuse ofirreplaceable historic
resources.
infrastructure, publicly owned building, and
policies:
L Work with the Montana Historical Society for the purpose of
any public improvements authorized by Title
7 chapter 12 parts 41 through 45 - Title 7
' t" ' t" g ' '
supporting historic preservation in the Core Area
2. Promote design standards in keeping with the styles and
chapter 13, parts 42 and 43; and Title 7,
materials of historic buildings in the neighborhood.
chapter 14, part 47, and items o{ personal
Y Y ✓ Y
3. Support current cultural activities such as Art in the Park and
Picnic in the Park
property to be used in connection with
4. Expand the location and frequency of cultural events in the Core
improvements for which the foregoing costs
Area.
5. Encourage public/private partnerships to fund the creation and
may be incurred. In addition to state law, this
display of art.
fits into the adopted West Side — Core Area
6. Support preservation, conservation and adaptable reuse of
historichuildings.
Urban Renewal Plan on page 29 (see snip to
the right).
strategies:
W 2. YE Track Purchase — The Council has
1. Provide sufficient parkland/open space to meet theneeds ofthe
surrounding neighborhood.
previously approved the acquisition of land ("Wye
2.Develop new parks toaccommodate people ofallages.
Track„) adjacent to the Parkline Trail for further
3. Park improvements should accommodate the use of the park
throughouttheday.
redevelopment as part of the trail connections, etc.,
leading to the bypass trail and making safety
Policies:
L Encourage the development or the redevelopment of park
improvements along that stretch west of Meridian
spaces toserve people's needsto gather, converse and enjoy the
Road. This project is eligible under MCA 7-15-
surroundings.
2. Prioritize the development of an open air amphitheater in
4288(1) land acquisition; and MCA 7-15-4288(10)
Woodland Park
the connection o
f the urban renewal area or
IPrioritize new parks in high density residential neighborhoods.
4. Incorporate park and open space development with the existing
targeted economic development district to existing
rail -trail path system.
infrastructure outside the area or district; in
strategy:
addition to other provisions in the MCA's.
1. Provide safe, pedestrian friendly environments in residential
neighborhoods.
Policies:
This fits into the adopted West Side — Core Urban L Provide increased on -street lighting for higher density
Renewal Plan, including on page 34 and 35 (see residential neighborhoods.
2. Encourage apartment buildings to increase security lighting
snippets to the right). inside their developments.
3. Provide additional public or private park space to serve the
residents ofAppleway Drive as well as the greater community.
4. Work to improve public access, including vehicle parking, to
the Rails -to -Trails Meridian 17ail along the south side of this
neighborhood.
S. Provide pedestrian amenities (trails, sidewalks, benches, etc.) to
assist and encourage pedestrian and hike traffic.
2
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
strategy:
1. Visually define the boundaries of the Core Area along Highway
93 and Highway 2 through the judicious use of way finding
signage.
Policy:
1. Establish entrance features such as signs and visual cues such
as building location, building design and streetscape Features
along Main Street and Idaho Street to define the boundaries of
sign. This is already part of an the revitalization area and downtown.
approved project in the plan as
identified on page 40 (see snippet to
the right)
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 rehabilitation and reuse of existing downtown buildings.
3
A. Public Improvements, Building and Site Preparation, Demolition and
Clearance:
The City of Kalispell is authorized to demolish, remove, and clear buildings, in whole or in part,
structures and other improvements from any real property to carry out the purpose of this plan.
The City of Kalispell is also authorized to install and construct or cause to be installed and
constructed the public improvements, public facilities and public utilities (within or outside the
district) as appropriate or necessary to carry out the plan. Such improvements, facilities and
utilities include, but are not limited to, streets, curbs, gutters, sidewalks, street lights, sewer,
water distribution, storm sewer, traffic signals, electrical distribution, parks, plazas, playgrounds,
telephone systems, fiber optic, parking facilities, landscaping and bus or pedestrian shelters. All
such improvements will be undertaken in accordance with 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.
4
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.
11 _ lk�'• 1100+
1100 'daho,
str
- • �'1�, ,hc Sit, r� _��� ' a
s i � o avan
� a
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 - Resolution 5955 Link
Downtown Urban Renewal Plan Link
Core Area Plan Link
5
City of Kalispell
201 1" Avenue East
Post Office Box 1997 - Kalispell, Montana 59903
VkL--,&L1SPELL
Telephone: (406) 758-7701 Fax: (406) 758-7758
Meeting Summary
URBAN RENEWAL AGENCY BOARD
SEPTEMBER 20, 2023, —4 P.M.
CITY HALL — FIRST FLOOR CONFERENCE ROOM AND VIA ZOOM
MEMBERS IN ATTENDANCE
Marc Rold
Catherine Potter
Cara LeMire
Dave Girardot
PUBLIC COMMENT
None.
PREVIOUS MEETING SUMMARY
August meeting summary accepted.
TIF & TEDD
OTHERS IN ATTENDANCE
Katharine King, Community Development Manager
Downtown: The Request for Proposals (RFP) for the Safe Streets and Roads For All Safety Action Plan project
has been advertised and proposals are due September 281". The selection committee (including URA Chair,
Marc Rold) will meet to score proposals the first week of October. A recommendation for selection will go to
City Council for its October 16, 2023, meeting.
The URA Committee reviewed Staff Report KRD 23-01 and discussed each project individually in the order
presented, as follows:
• Depot Park Building Remodel:
o Cara Lemire moved to recommend this project to City Council for funding with
Westside TIF funds, Catherine Potter seconded: three voted for, one abstained.
Passed.
• Wye Track Purchase: Cara Lemire moved to recommend this project to City Council for
funding with Westside TIF funds, David Girardot seconded: all voted in favor. Passed.
• Welcome to Kalispell Signage:
o David Girardot moved to recommend this project to City Council for funding with
Westside TIF funds, seconded by Cara Lemire: all in favor. Passed.
• Police Evidence Facility:
o Catherine Potter moved the committee make no recommendation for funding on this
project, seconded by Cara Lemire: three voted in favor, one against. Passed.
Committee discussed concern that the Police Evidence Facility, although to be located in the Downtown TIF
District, would be used to serve the needs of the entire city and for this reason the cost would be more
appropriately distributed among all city property owners and not just those owning property in the Downtown
TIF District.
Additional comment was made that members should be provided more time/additional meetings to discuss
significant issues for votes.
BROWNFIELDS
The city has a few Targeted Brownfields Assessments (TBAs) from the Montana DEQ in progress in the
Downtown and Westside/Core Area. All are phase I ESA's requested by prospective purchasers as a
component of due diligence prior to acquiring property via sale.
The City intends to apply for the upcoming Brownfields Assessment grant funding round with expected due
date in mid -November.
Staff suggested the Committee may wish to review existing TIF policy funding level limits as market factors
have had significant effects on costs of allowable TIF work.
NEXT SCHEDULED MEETING
The Board's next meeting is scheduled for Wednesday, October 25, 2023, at 4 p.m. This date is one week
later than usual to accommodate members' schedules.
Meeting adjourned.