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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.