Downtown TIF Policy Price AmendmentsEXHIBIT "A"
Downtown Kalispell Tax Increment Financing
Assistance Program
City of Kalispell- Urban Renewal Agency
City Council Resolution 5955
Date: 12/16/19
1
Table of Contents
Introduction
2
Urban Renewal Agency
2
Purpose
2
Program Objectives
2
Polices
3
Criteria for Reviewing Funding Applications
3
Eligible Activities
5
Eligible Applicants
6
Eligible Properties
6
Application Process
6
Important
7
Shared Utilities Program
9
Street Tree Placement Program
10
Sidewalk Placement Program
11
Historic Fagade Program
11
Fagade Improvement Program
13
Rehabilitation/Code Compliance Program
15
Site Demolition, Cleanup, and Preparation Program
16
Technical Assistance Program
17
Public Infrastructure Program
18
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INTRODUCTION
On December 4, 2017, the Kalispell City Council adopted The Downtown Plan as an amendment
to the City of Kalispell Growth Policy Plan -It 2035 by Resolution No. 5846. The Downtown Plan
addresses a number of key topics that affect the future growth and development of Downtown
Kalispell. Subsequently, the Kalispell City Council adopted the Downtown Kalispell Urban
Renewal Plan on December 3, 2018, thereby establishing an urban renewal district as part of the
City's overall mission to meet its needs of promoting economic development, improving area
employment opportunities, improving area housing opportunities and expanding the community's
tax base.
The implementation of the Downtown Kalispell Urban Renewal Plan will include the use of Tax
Increment Financing (hereby referred to as "TIF") as provided in 7-15-4282 through 7-15-4294,
MCA for appropriate public infrastructure projects in support of redevelopment within the Urban
Renewal District boundary. TIF districts are typically characterized by blight that limits new
investment within the Urban Renewal District. TIF is an important element of economic
development in the City of Kalispell as a means to fund development activities. The TIF program
operates by first establishing a base year taxable value for all properties within a designated
boundary. Property taxes from that boundary or district continue to be paid to all taxing
jurisdictions such as schools, county, etc., on the basis of the base year valuation. All increases in
property taxes in the district above this tax base valuation due to new development or reappraisals
are assigned to the City of Kalispell to be used to fund eligible activities identified within the
Downtown Kalispell Urban Renewal Plan.
URBAN RENEWAL AGENCY
The Downtown Kalispell TIF is managed by the City of Kalispell Urban Renewal Agency advisory
to Kalispell City Council. In 2010, pursuant to City of Kalispell Resolution 5435, an Urban
Renewal Agency (hereafter referred to as "URA") was established for the purpose of assisting the
Kalispell City Council in evaluating and proposing TIF district plans and projects. The five -
member committee is responsible for reviewing all TIF applications and making recommendations
to Kalispell City Council.
PURPOSE
It is the primary focus of the Downtown Kalispell TIF assistance program to encourage the
location, expansion and retention of business and housing opportunities suitable for Downtown
Kalispell. The TIF would do this by incentivizing growth within the plan boundary, which has
otherwise been stagnant. The purpose of the TIF assistance program is to encourage desirable
development/redevelopment projects, as well as assist projects that would not otherwise occur "but
for" the assistance provided through TIF. The purpose of this document is to provide guidelines
for the URA to offer monetary incentives for development activities within the urban renewal
district in the form of TIF assistance funds.
PROGRAM OBJECTIVES
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The primary objective of the TIF assistance program is to encourage investment in development
and redevelopment of mixed -use, commercial and multi -family (four units or more) within the
district in accordance with the provisions of Montana Urban Renewal Law. Additional objectives
within the urban renewal district include:
Expand the property tax base in the district through private investment in income producing
properties;
Stimulate economic and business development within the district by improving public
infrastructure deficiencies; and
• Reduce blighted properties within the district.
POLICIES
1. TIF assistance will be given to projects that do not have the financial feasibility to proceed
without the benefits of the TIF fund assistance.
2. The applicant shall provide market and feasibility studies, appraisals, etc. provided to
private lenders of the project as well as any other information the URA, or Kalispell City
Council may require in order to review the need for TIF assistance.
3. A third party analysis shall be provided for applications requesting more than $24700,000
in TIF assistance. The third party analysis will be contracted by the city from a list of
qualified consultants at the applicant's expense. The third party analysis is required to
ensure that project assumptions provided by developer align with current market conditions
and industry standards.
4. The applicant shall be able to demonstrate their ability to construct, operate and maintain
the proposed project based on past experience, general reputation and credit history.
5. TIF assistance will not be used for projects that place an extraordinary demand on the
district infrastructure.
6. The relationship of private investment to public investment of a project shall be significant
enough to ensure prudent investment of public funds within the TIF District. A prudent
expenditure would equate to $1 of public money for every $9 of private money invested in
a project.
7. The applicant shall retain ownership of the project long enough to complete it, occupy it,
establish property management, and initiate payment of taxes based on the increased
project value.
CRITERIA FOR REVIEWING FUNDING APPLICATIONS
In reviewing the TIF assistance application the URA will evaluate each new development project
utilizing the following criteria, in addition to the policies outlined above. When an application is
submitted, documentation demonstrating adherence to the following criteria must be submitted.
1. Each project must achieve each of the following criteria:
• Tax Generation — In order for the Downtown Kalispell TIF District to stay
economically healthy for the maximum benefit to the district and community, a project
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is expected to generate new taxes. The increase in taxable value due to new construction
& rehabilitation is estimated by the County Assessor's office or State Department of
Revenue to determine tax increase generation.
• Elimination of Blight The project's direct and indirect impact on the physical
deterioration within the TIF.
• Project Feasibility —A determination of feasibility is made based on the strength of the
applicant's demonstration of market demand for the project as contained primarily on
the pro forma and financing commitments.
• Applicant's ability to perform — An assessment of the applicant's capability to
undertake the relative complexities of the project based on past performance and the
project design and management team on similar projects based on the complexity of
the project.
• Timely Completion — The feasibility of completing the project according to the
applicant's proposed project schedule.
• Plan Goals — The project's ability to significantly further specific goals found in the
Downtown Kalispell Urban Renewal Plan, The Downtown Plan, and Kalispell Growth
Policy Plan -It 2035 goals and policies.
2. Each project must achieve at least 2 out of the 5 criteria:
• Investment The project's potential for subsequent investment within the TIF district.
• Unique Opportunities —The project's potential to present a unique opportunity, meet a
special need, or address specific TIF district or community goals such as filling a
market niche or providing an un-met community need.
• Environmental Impacts —The project's ability to positively impact the environment in
terms of brownfields cleanup, noise, dust, and traffic reduction; pollution reduction,
etc.
• Building The quality of development and overall aesthetics are beyond that which is
minimally required by the UBC.
• Job Creation— Projects that create opportunities for new employment contribute to the
economic vitality of the district and community in a variety of ways. Projects creating
five or more full-time equivalent j obs would be considered to have a significant positive
impact on the economic well-being of the district, and will be given greater priority.
Additionally, new jobs that pay at or above the median county income level will be
given priority.
3. Each project must achieve at least 3 out of the 6 criteria:
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• Housing Increases housing units, including integrating a variety of residential
housing types to accommodate people of different age groups and income levels.
• Urban Development — Redevelopment that considers the downtown's character and
promotes a mix of uses emphasizing retail uses on the main floor and offices or
residential uses on upper floors.
• Parking Recognize that there are special parking considerations downtown which
differ from other areas. A project should use innovative parking management and
shared parking provisions, including for general public use.
• Recreation Incorporates amenities into the development such as pocket parks, activity
nodes and gathering spaces.
• Facilities Public Health and Mobility Project will construct or improve sidewalks,
including ADA access to buildings.
• Alternative Transportation —Project promotes the use of bicycling, transit, ride sharing,
car sharing, etc.
ELIGIBLE ACTIVITIES
Per Montana State Law (7-15-4288 M.C.A.) tax increments may be used by the local government
to pay the following costs of or incurred in connection with an urban renewal area or targeted
economic development district as identified in the urban renewal plan or targeted economic
development district comprehensive development plan:
1. Land acquisition;
2. Demolition and removal of structures;
3. Relocation of occupants;
4. The acquisition, construction, and improvement of public improvements or infrastructure,
including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and
off-street parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers,
waterlines, waterways, water treatment facilities, natural gas lines, electrical lines,
telecommunications lines, rail lines, rail spurs, bridges, 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;
5. Costs incurred in connection with the redevelopment activities allowed under 7-15-4233;
6. Acquisition of infrastructure -deficient areas or portions of areas;
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7. Administrative costs associated with the management of the urban renewal area or targeted
economic development district;
8. Assemblage of land for development or redevelopment by private enterprise or public
agencies, including sale, initial leasing, or retention by the local government itself at its fair
value;
9. The compilation and analysis of pertinent information required to adequately determine the
needs of the urban renewal area or targeted economic development district;
10. The connection of the urban renewal area or targeted economic development district to
existing infrastructure outside the area or district;
11. The provision of direct assistance to secondary value -adding industries to assist in meeting
their infrastructure and land needs within the area or district; and
12. The acquisition, construction, or improvement of facilities or equipment for reducing,
preventing, abating, or eliminating pollution.
ELIGIBLE APPLICANTS
• Property owners or their designated representatives whose property is located within the
TIF district are eligible to apply.
ELIGIBLE PROPERTIES
Properties must be located inside the Downtown Kalispell TIF District and be:
• Commercial
• Mixed -use
• Multi -family properties consisting of four or more units
APPLICATION PROCESS
Applicants must submit a complete written application for each TIF project to the City of Kalispell
Community and Economic Development Department. The TIF application is available online at
hnps://kalispell.com/164/Community-Development under `online applications' or by contacting
the Community and Economic Development Department. Completed applications must be
received at least ten business days prior to the URA board meeting at which time the application
will be considered. This is to allow adequate time for a thorough staff review of the application for
presentation to the URA committee. Incomplete applications will be returned to the applicant with
an explanation on the additional information required. The following procedure has been
developed to expedite the review of TIF funding requests:
1. Initial contact- Contact the Community and Economic Development Department, City of
Kalispell, 201 First Avenue East, Kalispell MT 59901, (406) 758-7713, kking@kalispell.com
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to discuss the project and determine eligibility for TIF assistance.
2. Complete a TIF application with required attachments- The applicant must prepare a TIF
application for each funding request and include all required attachments. The Community
and Economic Development staff will assist the applicant in preparing the application.
3. Staff review and evaluation — Staff will evaluate projects within the Downtown Kalispell
Urban Renewal District for their consistency with the Downtown Urban Renewal Plan and
associated policies and criteria outlined herein. Staff will prepare a staff report including
findings of fact and provide a recommendation to the URA.
4. URA review and approval - Upon submittal of all necessary information, the URA will review
the merits of the project and the need for funding. The URA will review the project, adopt
findings of fact, and issue a recommendation on the funding request or any part thereof, and
any special terms of TIF assistance to Kalispell City Council. Applicants are encouraged to
be present during this review.
5. City Council review and approval- The Kalispell City Council shall act on applications within
30 days of URA recommendation, and take formal action to approve or deny the request.
Every decision of the city council pertaining to granting, denial or amendment of TIF
assistance shall be based upon "Findings of Fact." Applicants are encouraged to be present
during this review.
6. Development agreement- Upon approval by Kalispell City Council, the City of Kalispell and
the applicant must execute a legally binding Development Agreement which establishes the
terms and conditions of the TIF assistance. Among the terms and conditions, the agreement
shall specify the schedule for the start and completion of the project. The Development
Agreement must be executed within six months of City Council approval; if not completed by
this time the applicant must re -apply for project funding.
IMPORTANT:
Applicants seeking funding, by either grant or loan, through a City of Kalispell Tax
Increment Financing District, must take into account the following considerations:
1. Tax increment financing may only be used to offset such costs of development as are
allowed pursuant to MCA §7-17-4288.
2. The applicant's costs of development incurred prior to receiving tax increment funding
approval from the Kalispell City Council and satisfying all conditions of such approval shall
not be eligible for tax increment funding.
3. Development approved for tax increment financing assistance may not rely upon receiving
immediate reimbursement of money expended upon an approved project, as the tax
increment funds may not be immediately available at the time of construction. The City will
not be obligated to use any funds for reimbursement purposes outside of its tax increment
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district accounts. As the City has no control over the amount tax increment generated by the
district, it will not make any guarantees as to the timing or amount of tax increment financing
reimbursement that it will ultimately be able to pay.
4. All development agreements that contain tax increment financing assistance for a project
shall include a clause that will subordinate the financial assistance described in the
development agreement to such other tax increment financing projects entered into at any
time during the life of the TIF district that are financed through revenue bonds secured by
the tax increment generated by the district.
5. Other compliance and code requirements may apply. URA recommendation and City
Council approval of funding does not relieve the applicant's responsibility to secure all
necessary permits.
6. At any point in the review process the Community and Economic Development
Department staff or URA may request more information of the applicant or solicit comment
on the project from other public agencies. Items included in personal financial statements
will not be subject to public review, presentation, or comment by other agencies.
7. All requests for loan dollars will be subject to approval by the City of Kalispell Revolving
Loan Fund Committee. City of Kalispell Community and Economic Development
Department Revolving Loan Fund Policy and Procedures will apply to all loans. Current
financial statements for each shareholder involved in the project may be required, as well as
documentation of financial capacity. This information will be kept confidential, subject to
challenge in a court of law.
Downtown Kalispell Tax Increment Financing District Programs:
L Public/Private Incentive Grant Programs:
Grant Programs:
• Shared Utilities 9
• Street Tree Placement 10
• Sidewalk Placement 11
• Historic Fagade Restoration 11
IL Private Investment Programs:
Loan Programs:
• Fagade Improvement 13
• Rehabilitation/Code Compliance 15
• Site Demolition, Cleanup, and Preparation 16
• Technical Assistance 17
III. Public Infrastructure
• Projects as recommended by City Council 18
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L PUBLIC/PRIVATE INCENTIVE GRANT PROGRAMS
Shared Utilities Program
Objectives:
The primary objective of the Shared Utilities Program is to improve shared public services such
as water, sewer, sidewalks, parking (public/shared), and traffic circulation within the TIF
District.
Guidelines:
Shared Utilities projects may be eligible for a grant related to 100% of all public infrastructure
costs and/or impact fees. No funds will be disbursed until all completion criteria have been
satisfactorily met as determined by the URA and Kalispell City Council. Maintenance obligations
are that of the property owner.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or
infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys,
parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment
facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas
lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, 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
• 7-75-4288 (10)- The connection of the urban renewal area or targeted economic
development district to existing infrastructure outside the area or district
Kalispell Growth Policy Plan -It 2035 Recommendations:
Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area
Policy (8) — Encourage development and redevelopment by creating incentives for
developers to offset infrastructure and other site costs.
Kalispell Growth Policy Plan -It 2035, Chapter 4 Housing recommendation 2 —
Investigate alternative funding mechanisms to reduce impact fees.
Kalispell Growth Policy Plan -It 2035, Chapter 4 Business and Industry recommendation
3 — Explore alternative funding mechanisms for infrastructure to eliminate reliance on
impact fees.
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The Downtown Plan Goals:
Chapter 4, Implementation Goal 3 (d) — Upgrade inadequate infrastructure including city
water mains for fire flows to accommodate the full use of historic buildings downtown.
Chapter 4, Implementation Goal 3 (e) — Develop a revolving loan/grant program using
TIF or other funding resources to help business fund necessary infrastructure or property
reinvestment.
• Chapter 4, Implementation Goal 3 (g) — Provide infrastructure that supports new
technology, i.e. — WIFI, fiber-optic, etc.
Examples of Eligible Activities:
Projects benefiting more than one business
Impact fees
Examples of Ineligible Activities:
• Permit Fees
• Utilities benefiting only the applicant's property
Street Tree Placement Program
Objectives:
The primary objective of the Street Tree Placement Program is to encourage the placement of
street trees through the City of Kalispell Tree Placement and Maintenance Program per City
Council Ordinance 1086.
Guidelines:
Street Tree Placement Program projects may be eligible for a 50150 matching grant up to
$105,000 for street trees not part of a larger development project. Eligible applicants will work
with the City of Kalispell Parks and Recreation Department's Tree Placement and Maintenance
Program.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area.
The Downtown Plan Goals:
Chapter 3, Implementation Goal 5 (f) — Increase landscaping to soften the area and create
more appealing location.
Examples of Eligible Activities:
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• New street tree placement within public right-of-way
• Irrigation systems limited to the life of the tree
Ineligible Activities:
• Trees being placed outside the public right-of-way
Sidewalk Placement Program
Objectives:
The primary objective of the Sidewalk Placement Program is to encourage development, and
provide safe pedestrian navigation from business to business in the TIF District. Additional
objectives include expanding the property tax base, stimulation of business and economic
development and retention and expansion of employment in the district.
Guidelines:
Sidewalk Placement Program projects may be eligible for a 50% matching grant up to $15,000
for projects constructing or replacing sidewalks not part of a larger development project.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed
under 7-15-4233.
7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area.
The Downtown Plan Goals:
• Chapter 4, Implementation Goal 4 (c) — Improve pedestrian and bike access throughout the
plan area to improve safety and mobility.
Example of Eligible Activities:
• Sidewalk placement in the public right-of-way
• Handicap ramps at intersections
Examples of Ineligible Activities
• Sidewalk out of the public right-of-way
Historic Facade Restoration Program
Objectives:
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The primary objective of the Historic Fagade Restoration Program is to encourage voluntary
repair and rehabilitation of commercial, mixed -use and multi -family property (minimum of 4
units) in the Downtown TIF District in a way that advances the aesthetic environment and
enhances the pedestrian experience. Additional objectives include expanding the property tax
base, stimulation of business and economic development and retention, and expansion of
employment in the district.
Guidelines:
Historic fagade restoration projects may be eligible for a 50% matching grant up to $150,000.
Some projects may also qualify for additional funding under the Fagade Improvement Loan
Program. To qualify under the historic fagade restoration program, buildings must either be
individually listed on the National Register of Historic Places, in a designated historic district, or
at least 50 years old.
Historic photographs of Kalispell and its downtown store fronts may be available and should be
used when determining the original character of a building design. Applicants should make a
reasonable effort to provide historic images of the building. If no image is available the applicant
should provide research on materials and building styles consistent with the construction date of
the building or other appropriate time period. Materials and workmanship should accurately
replicate the historic facade.
Rehabilitation is limited to building facades visible from the street. Improvements shall be
scaled to the pedestrian and provide visual interest both day and night. Effort should be made to
facilitate access into the building and to create a building fagade which conveys permanence and
improves the aesthetics of the area. Improvements shall incorporate green building techniques
and energy efficiency measures where feasible. Non -conforming improvements, per municipal
zoning and building codes, shall not be considered.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4233 (i) to improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area
The Downtown Plan Goals:
• Chapter 4, Implementation Goal 3(c) — Offer incentives to encourage historic facade and
exterior amenity improvements.
• Chapter 4, Implementation Goal 5 (a) — Craft architectural design standards that are
downtown specific that encourage renovations and new construction to blend in with and
enhance the current historic flavor of the downtown.
Design Criteria:
The URA will review the design for compatibility and appropriateness based upon the project's
architectural design, historic appearance, and site plan in the context of adjacent structures, the
immediate neighborhood.
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Examples of Eligible Activities
Projects that preserve the storefront's character defining elements such as: display
windows, transom, kickplate, entry, upper -story windows, and cornice molding
Projects that avoid use of materials that were unavailable when the storefront was
constructed (vinyl, aluminum siding, mirrored/tinted glass, artificial stone, and brick
veneer) and use paint colors based on the buildings historical appearance
Examples of Ineligible Activities
• Interior rehabilitation
• Roof and re -roofing unless the roof is a prominent historic fagade element which is
visible from the street or sidewalk
• Structural foundations
• Security bars
• New construction or additions
• Site improvements in the public right-of-way including sidewalks, curb, and gutter, and
planters
IL PRIVATE INVESTMENT PROGRAMS
Facade Improvement Program
Objectives:
The primary objective of the Facade Improvement Program is to encourage voluntary repair in
the TIF District in a way that advances the aesthetic environment and enhances the pedestrian
experience. Additional objectives include expanding the property tax base, stimulation of
business and economic development and retention and expansion of employment in the district.
Guidelines:
The Fagade Improvement Program is a loan -based program eligible up to $250,000. Terms and
rates are subject to the decision of the URA and Revolving Loan Fund Committee.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area
• 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment
for reducing, preventing, abating, or eliminating pollution
The Downtown Plan Goals:
• Chapter 4, Implementation Goal 3(c) — Offer incentives to encourage historic facade and
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exterior amenity improvements.
Chapter 4, Implementation Goal 5 (a) — Craft architectural design standards that are
downtown specific that encourage renovations and new construction to blend in with and
enhance the current historic flavor of the downtown.
Design Criteria:
URA will review the design for compatibility and appropriateness based upon the project's
architectural design and site plan in the context of adjacent structures, the immediate
neighborhood, and the vision for the TIF District.
Fagade improvement projects are subject to City of Kalispell Architectural Review Committee
and Building Department approvals as appropriate.
Rehabilitation is limited to building fagades visible from the street. Improvements shall be
scaled to the pedestrian and provide visual interest both day and night. Effort should be made to
facilitate access into the building and to create a building fagade which conveys permanence and
improves the aesthetics of the area. Non -conforming improvements, per municipal zoning and
building codes, shall not be considered. Other criteria may be applied by the URA depending on
the specifics of the application and the URA's determination of the priorities for redevelopment
within the district.
Examples of Eligible Activities:
• Projects consisting of permanent materials such as stone, brick, or heavy gauge metal
(Materials with a limited life span such as EFIS (synthetic stucco) are generally not eligible)
• Projects increasing the energy efficiency of the building
• Projects using recycled, renewable and otherwise green material
• Projects enhancing the pedestrian environment
• Projects improving the aesthetics of the district
• Projects with architectural detailing addressing pedestrian scale
Examples of Ineligible Activities:
• Interior rehabilitation
• Roof and re -roofing unless the roof is a prominent fagade element which is visible from the
street or sidewalk
• Structural foundations
• Security bars
• New construction or additions
• Site improvements in the public right-of-way including sidewalks, curb, and gutter, and
planters.
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Rehabilitation/Code Compliance Program
Objectives:
The primary objective of the Rehabilitation/Code Compliance Program is to improve the
project's interior design and structure, and ensure the building is in compliance with City code.
Additional objectives include expanding the property tax base, stimulation of business and
economic development and retention and expansion of employment in the district.
Guidelines:
The Rehabilitation/Code Compliance Program is a loan based program eligible up to $250,000.
Terms and rates are subject to the decision of the URA and Revolving Loan Fund Committee.
Eligible projects are subject to City of Kalispell Architectural Review Committee and Building
Department approvals as appropriate. The URA will review the project for compatibility and
appropriateness based on the vision for the West Side Urban Renewal- Core Area TIF District.
Per the Montana Code Annotated 2013, section 7-15-4206 (17): "Rehabilitation" may include
the restoration and renewal of a blighted area or portion of the area in accordance with an urban
renewal plan by:
(i) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation
of buildings or other improvements...
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area.
Growth Policy Plan -It 2035 Policies:
Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area
Policy (8) — Encourage development and redevelopment by creating incentives for
developers to offset infrastructure and other site costs.
Kalispell Growth Policy Plan -It 2035, Chapter 6 Historic Downtown and Core Area
Policy (4) — Encourage rehabilitations and reuse of existing downtown buildings.
The Downtown Plan Goals:
Chapter 4, Implementation Goal 3(i) — Develop cost effective options for meeting
existing fire codes.
Chapter 4, Implementation Goal 3 (e) — Develop a revolving loan/grant program using
TIF or other funding resources to help business fund necessary infrastructure or property
reinvestment.
Examples of Eligible Activities:
• Projects addressing ADA Compliance
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Projects addressing and eliminating specific code violations and conditions that could be
injurious to the public's health, safety, and welfare
Projects stimulating economic and business developments by providing safe
environments for workers, businesses and the public
Improvement to the building's interior and /or exterior that address repair and
rehabilitation
Examples of Ineligible Activities:
• Working capital
• Product for sale
Site Demolition, Cleanup, And Preparation Program
Objectives:
The primary objective of the Site Demolition/Preparation/Cleanup Program is to prepare sites for
redevelopment. Additional objectives include expanding the property tax base, stimulation of
business and economic development and retention and expansion of employment in the district.
Guidelines:
Site Demolition/Preparation/Cleanup projects may be eligible for loan funds, and/or a 50%
matching grant up to $250,000. Approved projects must be fully prepped for redevelopment,
including removing all demolition materials and attractive nuisances, leveling the site, capping
all utilities, stabilizing the site from wind and erosion, and securing the site as necessary.
Eligible projects must first complete a Phase I and/or Phase II environmental site assessment
(ESA) as necessary on the site to characterize the site. Phase I and Phase II ESA's may be done
at the property owner's expense, under the City of Kalispell Brownfields Program as funds are
available, or as a TIF grant. In the event that environmental remediation is necessary at the site
for reuse, a Brownfields clean-up loan or TIF loan may be pursued. Phase II environmental site
assessments may eligible for a 50% matching grant, up to $50,000.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4288 (2) Demolition and removal of structures
• 7-15-4288 (5) Costs incurred in connection with the redevelopment activities allowed
under 7-15-4233
• 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area
• 7-15-4288 (12) The acquisition, construction, or improvement of facilities or equipment
for reducing, preventing, abating, or eliminating pollution.
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The Downtown Plan Goals:
• Chapter 4, Implementation Goal 3 (f) — Continue promoting the Brownfields programs in
order to prepare environmentally degraded properties for redevelopment.
Examples of Eligible Activities:
• Phase I and Phase II environmental site assessments
• Projects that are fully prepped for redevelopment, including removing all demolition
materials and attractive nuisances
• Projects leveling the site, capping all utilities, stabilizing the site from wind and erosion,
and securing the site as necessary
Examples of Ineligible Activities:
Construction or reconstruction of the public utilities serving the site
Marketing and/or sale of building site or building
Technical Assistance Program
Objectives:
The primary objective of the Technical Assistance Program is to support the applicant with
technical assistance during the preliminary phases of site improvement projects within the TIF.
Additional objectives include expanding the property tax base, stimulation of business and
economic development and retention and expansion of employment in the district.
Guidelines:
The Technical Assistance Program is a grant based program. Eligible applicants may receive up
to $20-5,000.
Technical Assistance applicants must submit the biography, resume, and licensing certificate as
appropriate for the firm conducting the technical assistance.
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4233 (i) To improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area
• 7-15-4233 (m) To prepare plans for carrying out a program of voluntary or compulsory
repair and rehabilitation of buildings and improvements
The Downtown Plan Goals:
• Chapter 3, Implementation Goal 2 (g) — Begin planning the location and funding for a
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new parking garage within The Downtown Plan boundary.
• Chapter 3, Implementation Goal 4 (b) — Identify major gathering or destination points
(Core Area, public buildings, parks, commercial areas) in need of pedestrian access and
connection.
• Chapter 3, Implementation Goal 6 (b) — Support the creation of a performing arts venue.
Examples of Eligible Activities:
• Architectural Design
• Engineering
• Landscape Design
• Fagade design
• Landscape/hardscape design
• Marketing and/or feasibility studies
Examples of Ineligible Activities:
• Demolition/Construction
• Permits, building, and appraisal fees
III. PUBLIC INFRASTRUCTURE PROGRAMS
Public Infrastructure Objectives:
As recommended by City Council
Costs incurred in connection with redevelopment activities allowed under Montana State Law
• 7-15-4288 (4)-The acquisition, construction, and improvement of public improvements or
infrastructure, including streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys,
parking lots and off-street parking facilities, sewers, sewer lines, sewage treatment
facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas
lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, 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
7-75-4288 (10)- The connection of the urban renewal area or targeted economic
development district to existing infrastructure outside the area or district
The Downtown Plan Goals:
• See Chapter 4, Implementation
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