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Resolution 6260 - Creates SID 348 - Green Acres CommCERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, 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notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed.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: Graham, Daoud, Dahlman, Hunter, Nunnally, Carlson, and Mayor Johnson. voted against the same: None abstained from voting thereon: None or were absent: Gabriel, Fisher WITNESS my hand officially this 16th day of June, 2025. lsl G%�%�Lli ° Aimee k3runckhorst City Clerk `� =c0 pA�F 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 Special Improvement 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 (i) the Owner adequately maintains the Improvements pursuant to City standards and the applicable City permits and that (ii) Owner waives for itself and all fixture 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 Property. 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(1) 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 fiends of Owner and Owner has not pledged a specific source of payment for the special assessments. (h) Assessment Methodology Equitable and 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. (i) Payment 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 further 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 fund. In determining whether to authorize such undertakings and agreements, the City Council has taken into consideration the following factors: G) 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. (ii) Comparison of Assessments and Property 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. (iii) 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 frill 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. Mark Johnson Mayor Attest: Aimle Brunckhorst, CMC City Clerk pie a i i r I �$g2 .z • r .r "WON 41 Ir'''t EXHIBIT B LEGAL DESCRIPTION OF DISTRICT Lot 21 of Green Acres Amended Lot 21 and 22, Block 1, in the City of Kalispell, Montana.