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I2. Res. 6258, Res. 6259, Res. 6260, Morning Star, Green Acres SID Creation-.011111011 CITY OF 111111111kikib KALISPELL REPORT TO: Doug Russell, City Manager Development Services Department 201 Is'Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine FROM: Jarod Nygren, Development Services Director SUBJECT: Morning Star and Green Acres Special Improvement District (SID) Creation DATE: June 16, 2025 BACKGROUND: Morning Star and Green Acres communities have submitted a Waiver of Right to Protest Creation of a Special Improvement District for the purpose of funding water and sewer improvements. For background, the city has served as the host for a number of grants to help fund the two projects. Although the project is currently out to bid and overall costs are not certain, it is likely that construction of said improvements will exceed the current allotted grant amounts. Accordingly, the State has secured State Revolving Loan Fund (SRF) monies to fill any costs above the already awarded grant amounts for each project. Any loan amounts to each of the communities will be 75% forgivable given the communities meet the low-income threshold. As with the grants, SRF funding is only available to municipalities. Through the creation of the SID the owners of each community consent to the levy of special assessments against the real property to fund the cost of the improvements, therefore limiting the risk to the general city tax/rate payer. The levy will be in an amount sufficient to repay the principal of special improvement district bonds, plus the associated interest cost for the purpose of financing the direct and incidental costs above current grant amounts for the water and sewer improvements. FISCAL EFFECTS: No fiscal effect with this action, however, the creation of each SID lays the foundation for the City to get an SRF loan on behalf of Morning Star and Green Acres communities. Each community consents to the levy of special assessments against the real property to fund the cost of the improvements, therefore limiting the risk to the general city tax/rate payer. A bond Resolution will be on the agenda for future action once bids come in and final costs (construction, loan, loan forgiveness, etc.) are calculated. RECOMMENDATION: It is recommended that the Council consider and pass Resolution 6258, creating Special Improvement District No. 346 for the purpose of undertaking sewer improvements not to exceed $260,000.00 within the Morning Star community. It is recommended that the Council consider and pass Resolution 6259, creating Special Improvement District No. 347 for the purpose of undertaking water improvements not to exceed $780,000.00 within the Morning Star community. It is also recommended that the Council consider and pass Resolution 6260, creating Special Improvement District No. 348 for the purpose of undertaking sewer improvements not to exceed $385,000.00 within the Green Acres community. ALTERNATIVES: Upon consideration of the proposal the Council may reject the resolutions. ATTACHMENT: Resolution 6258 Resolution 6259 Resolution 6260 Morning Star Waiver of Right to Protest creation of SID Green Acres Waiver of Right to Protest creation of SID CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell, Montana (the "City"), certify that the attached resolution is a true copy of a Resolution entitled: "RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (MORNING STAR COMMUNITY IMPROVEMENTS) DISTRICT NO. 346 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a meeting on June 16, 2025, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following City Council members voted in favor thereof - voted against the same: abstained from voting thereon: or were absent: WITNESS my hand officially this 16th day of June, 2025. /s/ Aimee Brunckhorst City Clerk RESOLUTION NO. 6258 RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (MORNING STAR COMMUNITY IMPROVEMENTS) DISTRICT NO. 346 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO BE IT RESOLVED by the City Council (the "City Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. It is found, determined and declared as follows: 1.01. Establishment and Formation Of SDecial IMDrovement District No. 346. (a) Protest and Waiver. Pursuant to Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (collectively, the "Act"), Morning Star Community, Inc. (the "Owner") petitioned the City to form a special improvement district for public sewer system improvements. In connection with such petition, Owner submitted a Waiver of Protest to Formation and Participation in a Special Improvement District (the "Petition and Waiver") on May 21, 2025 to waive its right to protest against the proposed Improvements (defined below) and against the creation of the District (defined below). In the Petition and Waiver, the Owner has agreed that the formation of the District is a covenant upon the Real Property (as defined below) which shall run to, with, and be binding upon the title of the said Real Property, and shall be binding upon any heirs, assigns, successors in interest, purchasers, and any and all subsequent holders or owners of the above described real property (b) General Character of the Improvements, Intention to Create District. The City proposes to undertake certain local improvements (the "Improvements") to benefit certain property located in the City. The Improvements consist of sewer improvements in the community located at 1717 South Woodland Drive in the City (the "Morning Star Community"). The City has approved the Improvements to be construction on the real property owned by the Owner upon the conditions that (1) the Owner adequately maintains the Improvements pursuant to City standards and the applicable City permits and that (11) Owner waives for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 7-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. It is the intention of the City Council to create and establish in the City pursuant the Act, a Special Improvement District designated as Special Improvement District (Morning Star Community Improvements) District No. 346 (the "District") for the purpose of financing a portion of the costs of the Improvements and paying costs incidental thereto, including costs associated with the sale and the security of Special Improvement District Bonds, in one or more tax-exempt and/or taxable series (together, the "Bonds"), issued to finance a portion of the costs of the Improvements, the creation and administration of the District, capitalized interest, and necessary reserves. The total estimated costs of the Improvements, including such incidental costs, to be financed by the Bonds are estimated not to exceed $260,000. The Bonds are to be payable from special assessments to be levied against property located in the District (the "Assessments"), which property will be specially benefited by the Improvements in an estimated amount of not less than $260,000. In the event the Assessments are not sufficient to pay debt service on the Bonds, debt service will be payable from amounts on deposit in a reserve account or fund. (c) Number of District. The District shall be known and designated as Special Improvement (Morning Star Community Improvements) District No. 346 of the City. (d) Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto and more particularly described on Exhibit B hereto (collectively, the "Real Property"), which boundaries are designated and confirmed as the boundaries of the District. (e) Benefited Propegy. The Owner is the fee title owner of the Real Property and in the Petition and Waiver petitioned the City for the formation of the District to assist the Owner in financing a portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments against the Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay up to $260,000.00 of Bonds, plus the associated interest cost, against the Real Property for the purpose of financing the direct and incidental costs of the Improvements. The Real Property within the District will benefit and be benefited by the Improvements and will be assessed for the costs of the Improvements as further described in this Resolution. (f) Estimated Cost. The City Engineer, the City Public Works Department, and City staff shall perform the design and construction administration for the Improvements. It is presently estimated by the City that the costs of the Improvements, including all incidental costs, are $3,305,000, with a portion of such costs to be financed by the sale and issuance of the Bonds. (g) Assessment Method. All property located within the District is to be assessed for its proportionate share of the costs of the Improvements, as specified herein. The costs of the Improvements shall be assessed against the property in the District benefiting from the Improvements based on the "area option" described in Section 7-12-4162(l) of the Act. The total area of the District to be assessed by way of the area option is estimated to be approximately square feet. The costs of the Improvements to be paid from special assessments are estimated to be $_ per square foot. Owner is the sole property owner in the District benefited by the Improvements and will be the sole entity responsible for the payment of special assessments assessed within the District for the Improvements. The Owner will pay special assessments from legally available funds of Owner and Owner has not pledged a specific source of payment for the special assessments. (h) Assessment Methodology Equitable and i Consistent with Benefit. The City Council hereby determines that the methods of assessment and the Assessments against the properties benefited thereby as prescribed in this Resolution are equitable in proportion to and not exceeding the special benefits derived from the respective Improvements by the lots, tracts, and parcels to be assessed therefor within the District. (1) Pqyment of Assessments. The Assessments shall be payable over a term not exceeding 20 years, each in semiannual installments of principal and interest as set forth in this Resolution. The Owner shall have the right to prepay assessments as provided by law. 0) Method of Financing, Findings and Determinations. The City in the future may issue the Bonds in an aggregate principal amount not to exceed $260,000 and loan the proceeds thereof (the "2025 Loans") to the Montana DNRC, in order to finance a portion of the costs of the Improvements, including all incidental costs as described in this Resolution. Principal of and interest on the Bonds will be paid from the Assessments. The City Council ffirther finds it is in the public interest and in the best interest of the City and the District to secure payment of the principal of and interest on the Bonds be a reserve account which may be determined to be the City's revolving ftmd. In determining whether to authorize such undertakings and agreements, the City Council has taken into consideration the following factors: (1) Estimated Market Value of Parcels. The City has considered the estimated market value of the Real Property in the District as of the date of adoption of this Resolution, as well as the estimated market value of the Real Property after the Improvements have been completed. The Owner owns all the lots, parcels or tracts in the District. The City has determined that the value of the Real Property will be significantly enhanced by the Improvements. The Assessments against the Real Property are, as of the date of this Resolution, not anticipated to exceed the increase in estimated market value of the Real Property as a result of the construction of the Improvements. (11) Comparison of Assessments and PropeLty Taxes and Market Value. Based on an analysis of the aggregate amount of the proposed Assessments, any outstanding special assessments (whether or not delinquent), and any delinquent property taxes against the Real Property in comparison to the estimated market value of such Real Property after the Improvements are completed, the City concludes that, overall, the estimated market value of the Real Property within the District exceeds the sum of proposed Assessments, any outstanding special assessments for the Real Property within the District. (111) Delinquencies. An analysis of the amount of delinquencies in the payment of outstanding special assessments or property taxes levied against the Real Property shows that the Real Property are not delinquent. (iv) Public Benefit of the Improvements. As determined by the City Engineer, the City Public Works Department, and City staff, the public benefit of the Improvements is an increased level of safety due to the sewer improvements in the District. (k) No Notice Required. No notice of public hearing on the creation of the District is required under the Act since Owner submitted a Petition and Waiver. (1) Formation of -the District. The City Council hereby duly and validly creates and establishes the District. Section 2. Grant Agreements. In order to finance the Improvements proposed in the District, the City Council hereby authorizes the Mayor and/or City Manager, or their designee, to execute and delivery any federal or state grant agreements to assist in the financing of the Improvements. Section 3. Repeals and Effective Date. 3.01. Repeal. All provisions of other resolutions and other actions and proceedings of the City and this City Council that are in any way inconsistent with the terms and provisions of this Resolution are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Resolution. 3.02. Effective Date. This Resolution shall take effect immediately upon its passage and adoption by this City Council. PASSED by the City Council of the City of Kalispell, Montana, this 16th day of June, 2025. Attest: Aimee Brunckhorst, CNIC City Clerk Mark Johnson Mayor 4 ALA. rw wp EXHIBIT A MAP OF THE DISTRICT Ile A-1 EXIIIBIT B LEGAL DESCRIPTION OF DISTRICT Lots 23, 24 and the North Half of Lot 9 of Block I of Greenacres, in the City of Kalispell, Montana. HIS W CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell, Montana (the "City"), certify that the attached resolution is a true copy of a Resolution entitled: "RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (MORNING STAR COMMUNITY IMPROVEMENTS) DISTRICT NO. 347 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a meeting on June 16, 2025, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following City Council members voted in favor thereof - voted against the same: abstained from voting thereon: or were absent: WITNESS my hand officially this 16th day of June, 2025. /s/ Aimee Brunckhorst City Clerk RESOLUTION NO. 6259 RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (MORNING STAR COMMUNITY IMPROVEMENTS) DISTRICT NO. 347 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO BE IT RESOLVED by the City Council (the "City Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. It is found, determined and declared as follows: 1.01. Establishment and Formation Of SDecial IMDrovement District No. 347. (a) Protest and Waiver. Pursuant to Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (collectively, the "Act"), Morning Star Community, Inc. (the "Owner") petitioned the City to form a special improvement district for public water system improvements. In connection with such petition, Owner submitted a Waiver of Protest to Formation and Participation in a Special Improvement District (the "Petition and Waiver") on May 21, 2025 to waive its right to protest against the proposed Improvements (defined below) and against the creation of the District (defined below). In the Petition and Waiver, the Owner has agreed that the formation of the District is a covenant upon the Real Property (as defined below) which shall run to, with, and be binding upon the title of the said Real Property, and shall be binding upon any heirs, assigns, successors in interest, purchasers, and any and all subsequent holders or owners of the above described real property (b) General Character of the Improvements, Intention to Create District. The City proposes to undertake certain local improvements (the "Improvements") to benefit certain property located in the City. The Improvements consist of water improvements in the community located at 1717 South Woodland Drive in the City (the "Morning Star Community"). The City has approved the Improvements to be construction on the real property owned by the Owner upon the conditions that (1) the Owner adequately maintains the Improvements pursuant to City standards and the applicable City permits and that (11) Owner waives for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 7-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. It is the intention of the City Council to create and establish in the City pursuant the Act, a Special Improvement District designated as Special Improvement District (Morning Star Community Improvements) District No. 347 (the "District") for the purpose of financing a portion of the costs of the Improvements and paying costs incidental thereto, including costs associated with the sale and the security of Special Improvement District Bonds, in one or more tax-exempt and/or taxable series (together, the "Bonds"), issued to finance a portion of the costs of the Improvements, the creation and administration of the District, capitalized interest, and necessary reserves. The total estimated costs of the Improvements, including such incidental costs, to be financed by the Bonds are estimated not to exceed $780,000. The Bonds are to be payable from special assessments to be levied against property located in the District (the "Assessments"), which property will be specially benefited by the Improvements in an estimated amount of not less than $780,000. In the event the Assessments are not sufficient to pay debt service on the Bonds, debt service will be payable from amounts on deposit in a reserve account or fund. (c) Number of District. The District shall be known and designated as Special Improvement (Morning Star Community Improvements) District No. 347 of the City. (d) Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto and more particularly described on Exhibit B hereto (collectively, the "Real Property"), which boundaries are designated and confirmed as the boundaries of the District. (e) Benefited Propegy. The Owner is the fee title owner of the Real Property and in the Petition and Waiver petitioned the City for the formation of the District to assist the Owner in financing a portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments against the Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay up to $780,000.00 of Bonds, plus the associated interest cost, against the Real Property for the purpose of financing the direct and incidental costs of the Improvements. The Real Property within the District will benefit and be benefited by the Improvements and will be assessed for the costs of the Improvements as further described in this Resolution. (f) Estimated Cost. The City Engineer, the City Public Works Department, and City staff shall perform the design and construction administration for the Improvements. It is presently estimated by the City that the costs of the Improvements, including all incidental costs, are $3,305,000, with a portion of such costs to be financed by the sale and issuance of the Bonds. (g) Assessment Method. All property located within the District is to be assessed for its proportionate share of the costs of the Improvements, as specified herein. The costs of the Improvements shall be assessed against the property in the District benefiting from the Improvements based on the "area option" described in Section 7-12-4162(l) of the Act. The total area of the District to be assessed by way of the area option is estimated to be approximately square feet. The costs of the Improvements to be paid from special assessments are estimated to be $_ per square foot. Owner is the sole property owner in the District benefited by the Improvements and will be the sole entity responsible for the payment of special assessments assessed within the District for the Improvements. The Owner will pay special assessments from legally available funds of Owner and Owner has not pledged a specific source of payment for the special assessments. (h) Assessment Methodology Equitable and i Consistent with Benefit. The City Council hereby determines that the methods of assessment and the Assessments against the properties benefited thereby as prescribed in this Resolution are equitable in proportion to and not exceeding the special benefits derived from the respective Improvements by the lots, tracts, and parcels to be assessed therefor within the District. (1) Pqyment of Assessments. The Assessments shall be payable over a term not exceeding 20 years, each in semiannual installments of principal and interest as set forth in this Resolution. The Owner shall have the right to prepay assessments as provided by law. 0) Method of Financing, Findings and Determinations. The City in the future may issue the Bonds in an aggregate principal amount not to exceed $780,000 and loan the proceeds thereof (the "2025 Loans") to the Montana DNRC, in order to finance a portion of the costs of the Improvements, including all incidental costs as described in this Resolution. Principal of and interest on the Bonds will be paid from the Assessments. The City Council ffirther finds it is in the public interest and in the best interest of the City and the District to secure payment of the principal of and interest on the Bonds be a reserve account which may be determined to be the City's revolving ftmd. In determining whether to authorize such undertakings and agreements, the City Council has taken into consideration the following factors: (1) Estimated Market Value of Parcels. The City has considered the estimated market value of the Real Property in the District as of the date of adoption of this Resolution, as well as the estimated market value of the Real Property after the Improvements have been completed. The Owner owns all the lots, parcels or tracts in the District. The City has determined that the value of the Real Property will be significantly enhanced by the Improvements. The Assessments against the Real Property are, as of the date of this Resolution, not anticipated to exceed the increase in estimated market value of the Real Property as a result of the construction of the Improvements. (11) Comparison of Assessments and PropeLty Taxes and Market Value. Based on an analysis of the aggregate amount of the proposed Assessments, any outstanding special assessments (whether or not delinquent), and any delinquent property taxes against the Real Property in comparison to the estimated market value of such Real Property after the Improvements are completed, the City concludes that, overall, the estimated market value of the Real Property within the District exceeds the sum of proposed Assessments, any outstanding special assessments for the Real Property within the District. (111) Delinquencies. An analysis of the amount of delinquencies in the payment of outstanding special assessments or property taxes levied against the Real Property shows that the Real Property are not delinquent. (iv) Public Benefit of the Improvements. As determined by the City Engineer, the City Public Works Department, and City staff, the public benefit of the Improvements is an increased level of safety due to the water improvements in the District. (k) No Notice Required. No notice of public hearing on the creation of the District is required under the Act since Owner submitted a Petition and Waiver. (1) Formation of -the District. The City Council hereby duly and validly creates and establishes the District. Section 2. Grant Agreements. In order to finance the Improvements proposed in the District, the City Council hereby authorizes the Mayor and/or City Manager, or their designee, to execute and delivery any federal or state grant agreements to assist in the financing of the Improvements. Section 3. Repeals and Effective Date. 3.01. Repeal. All provisions of other resolutions and other actions and proceedings of the City and this City Council that are in any way inconsistent with the terms and provisions of this Resolution are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Resolution. 3.02. Effective Date. This Resolution shall take effect immediately upon its passage and adoption by this City Council. PASSED by the City Council of the City of Kalispell, Montana, this 16th day of June, 2025. Attest: Aimee Brunckhorst, CNIC City Clerk Mark Johnson Mayor 4 ALA. rw wp EXHIBIT A MAP OF THE DISTRICT Ile A-1 EXIIIBIT B LEGAL DESCRIPTION OF DISTRICT Lots 23, 24 and the North Half of Lot 9 of Block I of Greenacres, in the City of Kalispell, Montana. HIS W CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell, Montana (the "City"), certify that the attached resolution is a true copy of a Resolution entitled: "RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (GREEN ACRES COMMUNITY IMPROVEMENTS) DISTRICT NO. 348 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a meeting on June 16, 2025, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following City Council members voted in favor thereof - voted against the same: abstained from voting thereon: or were absent: WITNESS my hand officially this 16th day of June, 2025. /s/ Aimee Brunckhorst City Clerk RESOLUTION NO. 6260 RESOLUTION CREATING SPECIAL IMPROVEMENT DISTRICT (GREEN ACRES COMMUNITY IMPROVEMENTS) DISTRICT NO. 348 AND AUTHORIZING EXECUTION OF FEDERAL AND STATE GRANTS IN CONNECTION THERETO BE IT RESOLVED by the City Council (the "City Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. It is found, determined and declared as follows: 1.01. Establishment and Formation Of SDecial IMDrovement District No. 348. (a) Protest and Waiver. Pursuant to Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (collectively, the "Act"), Green Acres Cooperative, Inc. (the "Owner") petitioned the City to form a special improvement district for public sewer system improvements. In connection with such petition, Owner submitted a Waiver of Protest to Formation and Participation in a Special Improvement District (the "Petition and Waiver") on May 22, 2025 to waive its right to protest against the proposed Improvements (defined below) and against the creation of the District (defined below). In the Petition and Waiver, the Owner has agreed that the formation of the District is a covenant upon the Real Property (as defined below) which shall run to, with, and be binding upon the title of the said Real Property, and shall be binding upon any heirs, assigns, successors in interest, purchasers, and any and all subsequent holders or owners of the above described real property (b) General Character of the Improvements, Intention to Create District. The City proposes to undertake certain local improvements (the "Improvements") to benefit certain property located in the City. The Improvements consist of sewer improvements in the community located at 1721 South Woodland Drive in the City (the "Green Acres Community"). The City has approved the Improvements to be construction on the real property owned by the Owner upon the conditions that (1) the Owner adequately maintains the Improvements pursuant to City standards and the applicable City permits and that (11) Owner waives for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 7-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. It is the intention of the City Council to create and establish in the City pursuant the Act, a Special Improvement District designated as Special Improvement District (Green Acres Community Improvements) District No. 348 (the "District") for the purpose of financing a portion of the costs of the Improvements and paying costs incidental thereto, including costs associated with the sale and the security of Special Improvement District Bonds, in one or more tax-exempt and/or taxable series (together, the "Bonds"), issued to finance a portion of the costs of the Improvements, the creation and administration of the District, capitalized interest, and necessary reserves. The total estimated costs of the Improvements, including such incidental costs, to be financed by the Bonds are estimated not to exceed $385,000. The Bonds are to be payable from special assessments to be levied against property located in the District (the "Assessments"), which property will be specially benefited by the Improvements in an estimated amount of not less than $385,000. In the event the Assessments are not sufficient to pay debt service on the Bonds, debt service will be payable from amounts on deposit in a reserve account or fund. (c) Number of District. The District shall be known and designated as Special Improvement (Green Acres Community Improvements) District No.348 of the City. (d) Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A hereto and more particularly described on Exhibit B hereto (collectively, the "Real Property"), which boundaries are designated and confirmed as the boundaries of the District. (e) Benefited Propegy. The Owner is the fee title owner of the Real Property and in the Petition and Waiver petitioned the City for the formation of the District to assist the Owner in financing a portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments against the Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay up to $385,000.00 of Bonds, plus the associated interest cost, against the Real Property for the purpose of financing the direct and incidental costs of the Improvements. The Real Property within the District will benefit and be benefited by the Improvements and will be assessed for the costs of the Improvements as further described in this Resolution. (f) Estimated Cost. The City Engineer, the City Public Works Department, and City staff shall perform the design and construction administration for the Improvements. It is presently estimated by the City that the costs of the Improvements, including all incidental costs, are $1,156,500, with a portion of such costs to be financed by the sale and issuance of the Bonds. (g) Assessment Method. All property located within the District is to be assessed for its proportionate share of the costs of the Improvements, as specified herein. The costs of the Improvements shall be assessed against the property in the District benefiting from the Improvements based on the "area option" described in Section 7-12-4162(l) of the Act. The total area of the District to be assessed by way of the area option is estimated to be approximately square feet. The costs of the Improvements to be paid from special assessments are estimated to be $_ per square foot. Owner is the sole property owner in the District benefited by the Improvements and will be the sole entity responsible for the payment of special assessments assessed within the District for the Improvements. The Owner will pay special assessments from legally available funds of Owner and Owner has not pledged a specific source of payment for the special assessments. (h) Assessment Methodology Equitable and i Consistent with Benefit. The City Council hereby determines that the methods of assessment and the Assessments against the properties benefited thereby as prescribed in this Resolution are equitable in proportion to and not exceeding the special benefits derived from the respective Improvements by the lots, tracts, and parcels to be assessed therefor within the District. (1) Pqyment of Assessments. The Assessments shall be payable over a term not exceeding 20 years, each in semiannual installments of principal and interest as set forth in this Resolution. The Owner shall have the right to prepay assessments as provided by law. 0) Method of Financing, Findings and Determinations. The City in the future may issue the Bonds in an aggregate principal amount not to exceed $385,000 and loan the proceeds thereof (the "2025 Loans") to the Montana DNRC, in order to finance a portion of the costs of the Improvements, including all incidental costs as described in this Resolution. Principal of and interest on the Bonds will be paid from the Assessments. The City Council ffirther finds it is in the public interest and in the best interest of the City and the District to secure payment of the principal of and interest on the Bonds be a reserve account which may be determined to be the City's revolving ftmd. In determining whether to authorize such undertakings and agreements, the City Council has taken into consideration the following factors: (1) Estimated Market Value of Parcels. The City has considered the estimated market value of the Real Property in the District as of the date of adoption of this Resolution, as well as the estimated market value of the Real Property after the Improvements have been completed. The Owner owns all the lots, parcels or tracts in the District. The City has determined that the value of the Real Property will be significantly enhanced by the Improvements. The Assessments against the Real Property are, as of the date of this Resolution, not anticipated to exceed the increase in estimated market value of the Real Property as a result of the construction of the Improvements. (11) Comparison of Assessments and PropeLty Taxes and Market Value. Based on an analysis of the aggregate amount of the proposed Assessments, any outstanding special assessments (whether or not delinquent), and any delinquent property taxes against the Real Property in comparison to the estimated market value of such Real Property after the Improvements are completed, the City concludes that, overall, the estimated market value of the Real Property within the District exceeds the sum of proposed Assessments, any outstanding special assessments for the Real Property within the District. (111) Delinquencies. An analysis of the amount of delinquencies in the payment of outstanding special assessments or property taxes levied against the Real Property shows that the Real Property are not delinquent. (iv) Public Benefit of the Improvements. As determined by the City Engineer, the City Public Works Department, and City staff, the public benefit of the Improvements is an increased level of safety due to the sewer improvements in the District. (k) No Notice Required. No notice of public hearing on the creation of the District is required under the Act since Owner submitted a Petition and Waiver. (1) Formation of -the District. The City Council hereby duly and validly creates and establishes the District. Section 2. Grant Agreements. In order to finance the Improvements proposed in the District, the City Council hereby authorizes the Mayor and/or City Manager, or their designee, to execute and delivery any federal or state grant agreements to assist in the financing of the Improvements. Section 3. Repeals and Effective Date. 3.01. Repeal. All provisions of other resolutions and other actions and proceedings of the City and this City Council that are in any way inconsistent with the terms and provisions of this Resolution are repealed, amended and rescinded to the full extent necessary to give full force and effect to the provisions of this Resolution. 3.02. Effective Date. This Resolution shall take effect immediately upon its passage and adoption by this City Council. PASSED by the City Council of the City of Kalispell, Montana, this 16th day of June, 2025. Attest: Aimee Brunckhorst, CNIC City Clerk Mark Johnson Mayor 4 4 10 %,- (pike An Aw lot Vk Wft.. %aim Wor. .v� MIA 16. A6 EXHIBIT B LEGAL DESCRIPTION OF DISTRICT Lot 21 of Green Acres Amended Lot 21 and 22, Block 1, in the City of Kalispell, Montana. W-51 20250001 6 III All Page: I of 0 2 35 Fees: $16.00 Debbie Pierson, Flathead County MT by TP 6/10/2025 2:09 PM Please return to: Kalispell City Clerk 201 First Avenue East Kalispell, MT 59901 WAIVER OF PROTEST TO FORMATION AND PARTICIPATION IN A SPECIAL IMPROVEMENT DISTRICT MCA 7-124110 -4- The undersigned Morning Star Community, Inc. (the "Owner") has requested and received the consideration and approval of the City of Kalispell (the "City") to develop improvements within the Citv, on private real property as the legally described as follows (the "Real Property"): LOTS 23, 24, AND THE NORTH HALF OF LOT 9 OF BLOCK 1 OF GREENACRES The City has approved the requisite public water system to be constructed and installed (the "Improvements") upon the real property owned by the Owner upon the conditions that (i) the Owner shall adequately maintain the Improvements pursuant to City standards and the applicable City permits and that (ii) Owner shall waive for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 7-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. The Owner is the fee title owner of the Real Property. The Owner is hereby petitioning the City for the formation of a special improvement district to assist the owner in financing a portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments againstthe Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay $780,000.00 of principal of special improvement district bonds, plus fhe associated interest cost. against the Real Property for the purpose of financing the direct and incidental costs of the Improvements. The Owner, therefore, in consideration for the City's approval of design of its requisite Improvements, hereby (i) waives right to protest the formation by the City of a special improvement district pursuant to Montana Code Annotated Title 7 Chapter 12 which the Owner may have or may hereafter acquire, and (ii) waives any and all right to protest any attempt or proceedings made by or on behalf of the City to form such special improvement district. The Owner further agrees that this Waiver to Protest to the formation of a special improvement district is a covenant upon 'the above described real property which shall run to, with, and be binding upon the title of the said Real Property, and shall be binding upon any heirs, assigns, successors in interest, purchasers, and any and all subsequent holders or owners of the above described real property. Dated this ;Z I day of LLZ2�z 12025 L7 , OWNER (if owned jointly or as cotenants. each owner must si�qn or if signing for a corporation, LLC, or other legal entity must provide the source of the authority to bind the company) STATE OF!�)L\40— (Y)�—) ss Countyof On this day of 2025, before me, the undersigned, a Notary Public for the State 13 of Montana, personally appeared known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary Seal the day and year in this certificate first above written. VY S MANDY STEIG 1A e NOTARY PUBLIC for the SEAL 9P State Of Montana Residing at Kalispell, Montana My Commission Expires January 22, 2028 (Notary Seal) Notary Public, Printed Name: Residing at �LC My Commission expires c, nTan a 2—C A1\- Please return to: Kalispell City Clerk 201 First Avenue East Kalispell, IVIT 59901 202500010636 I E111 1111111111 P a ge: I of 2 F ees: !b196.00 Debbie Piej,son, Flathead COLITItY My by TP 6/10/2025 2 PM WAIVER OF PROTEST TO FORMATION AND PARTICIPATION IN A SPECIAL IMPROVEMENT DISTRICT MCA 7-124110 The undersigned Morning Star Community, Inc. (the "Owner",) has requested and received the consideration and approval of the City of Kalispell (the "City") to develop improvements within the City, on private real property as the legally described as follows (the"Real Property")i LOTS 23, 24, AND THE NORTH HALF OF LOT 9 OF BLOCK 1 OF GREENACRES The City has approved the requisite public sewer system to be constructed and installed (the "Improvements") upon the real property owned by the Owner upon the conditions that (i) the Owner shall adequately maintain the Improvements pursuant to City standards and the applicable City permits and that (ii) Owner shall waive for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 71-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. The Owner is the fee title owner of the Real Property. The Owner is hereby petitioning the City for the formation of a special improvement district to assist the owner in financing a portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments against the Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay $260,000.00 of principal of special improvement district bonds, plus the associated interest cost, against the Real Property for the purpose of financing the direct and incidental costs of the Improvements. The Owner, therefore, in consideration for the City's approval of design of its requisite Improvements, hereby (i) waives right to protest the formation by the City of a special improvement district pursuant to Montana Code Annotated Title 7 Chapter 12 which the Owner may have or may hereafter acquire, and (ii) waives any and all right to protest any attempt or proceedings made by or on behalf of the City to form such special improvement district. The Owner further agrees that this Waiver to Protest to the formation of a special improvement district is a covenant upon the above described real property which shall run to, with, and be binding upon the title of the said Real Property, and shall be binding upon any heirs, assigns, successors in interest, purchasers, and any and all subsequent holders or owners of the above described real property. ---) I Dated this,!:�L day of 2025 OWNER (if owned jointly or as cotenants, each owner must sign or if signing for a corporation. LLC. or other legal entity must provide the source of the authority to bind the company) STATE OF �K`-C\4_ _]�V_ :ss County of ) On this day of 2025. before me, the undersigned. a Notary Public for the State of Montana, personally appeared known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary Seal the day and year in this certificate first above written. DY 1! �l 1 MANDY STEIG 1A NOTARY PUBLIC for the EAL * State of Montana Residing at Kalispell, Montana OF My Commission Expires January 22, 2028 (Notary Seal) Noiar� Public, State ontana Printed Name: k- C�, Residing at -:2 IC5 2A My Commission expires: 5-a I - "J Please return to: Kalispell City Clerk 201 First Avenue East Kalispell, IVIT 59901 �I I jjj� 11�1,I$I jj�I I I III I III I III I� I[II[ 111 202500010633 P a ge: I of 2 Fees: $16.00 Debbie Pierson, Flathead County MT by TP 61,1101/2025 2:09 PM WAIVER OF PROTEST TO FORMATION AND PARTICIPATION IN A SPECIAL IMPROVEMENT DISTRICT MCA 7-124110 The undersigned Green Acres Cooperative, Inc. (the "Owner") has requested and received the consideration and approval of the City of Kalispell (the "City") to develop improvements within the City, on private real property as the legally described as follows (the "Real Property"): LOT 21 OF GREEN ACRES AMENDED LOT 21 AND 22, BLOCK 1 The City has approved the requisite public sewer system to be constructed and installed (the "Improvements") upon the real property owned by the Owner upon the conditions that (i) the Owner shall adequately maintain the Improvements pursuant to City standards and the applicable City permits and that (ii) Owner shall waive for itself and all future owners, the statutory right the Owner has to protest a future special improvement district as afforded by Montana Code Annotated Section 7-12-4110 for the maintenance or the reconstruction of the Improvements serving the property in the event the Owner fails in its maintenance obligation. The Owner is the fee title owner of the Real Property. The Owner is hereby petitioning the City for the formation of a special improvement district to assist the owner in financing a ' portion of the cost of the Improvements that will benefit the Real Property. The Owner consents to the levy of special assessments against the Real Property to fund a portion of the cost of the Improvements, such levy in an amount sufficient to repay $385,000.00 of principal of special improvement district bonds, plus the associated interest cost, against the Real Property for the purpose of financing the direct and incidental costs of the Improvements, The Owner, therefore, in consideration for the City's approval of design of its requisite Improvements, hereby (i) waives right to protest the formation by the City of a special improvement district pursuant to Montana Code Annotated Title 7 Chapter 12 which the Owner may have or may hereafter acquire, and (ii) waives any and all right to protest any attempt or proceedings made by or on behalf of the City hoform such special improvement district. The Owner further agrees that this Waiver toProtest to the formation of special improvement district is e covenant upon the above described real property which shall run to, with, and be binding upon the title of the said Real Propndy, and nhoU be binding upon any haim, aoeignx, successors in interest, purohaaere, and any and all subsequent holders or owners of the above described real property. Dated this day of Mck 2025 OWNER (if owned jointly oraucohenunts' each owner must sign or if signing for o corporation LLC or other legal entity must provide the source of the authority to bind the company) STATE Of �mo County of +� On this o�a dav of Maw 2025 before me, the undersigned, oNotary Public for the State of Montana, personally appeareAnown to me to be the person whose name is subscribed to the foregoing instrument and acknowledged tomethat he/she executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notary Seal the day and year in this certificate first above written. Notary Public for the Notarial State of Montana Seal Residing at KALISPELL, MT My Commission Expires (NotamSeaU Notary Public, Stdteof Montana Printed Name: —Vmr-P rl Residing at 1.5'a My Commission expires. — M&J,0'nb'QY-