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I2. Resolution 6332, Opportunity Zone ApplicationCITY K A L I S"i'lP E L L Development Services Department 201 lst Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine REPORT TO: Jarod Nygren, City Manager FROM: PJ Sorensen, Development Services Director SUBJECT: Resolution 6332 — Support for Opportunity Zone Application MEETING DATE: July 6, 2026 BACKGROUND: Opportunity zones are designated areas which provide potentially significant federal tax benefits in how capital gains are treated. Investors can defer, reduce, or possibly eliminate capital gains taxes in these areas by investing unrealized gains into a Qualified Opportunity Fund. Depending upon the time frames, capital gains benefits can include deferral of the tax, step up in basis, or even permanent exclusion if the investment is held a sufficient time. Details for any individual investor would need to be determined by the investor in conjunction with their tax consultant, but those are a broad outline of how the zones function provided for context. In order to establish an opportunity zone, eligible tracts were determined by the US Treasury and provided to the Montana Department of Commerce. Information was then forwarded to individual communities, who may then submit applications for consideration. Applications are submitted to the Department of Commerce with recommendations forwarded to the Governor's Office for review and approval, which is anticipated in September. A draft application is attached and includes the Kalispell Chamber of Commerce, the Downtown Kalispell Forward Coalition, the Kalispell Business Improvement District, Montana West Economic Development Corporation, Flathead County Economic Development Agency, and the Northwest Montana Association of Realtors as collaborating partners for the application. It also includes letters of support from potential investors in the zone. This Resolution would be included with the application as a showing of support from the City Council. RECOMMENDATION: It is recommended that the Kalispell City Council adopt the resolution supporting the application for the creation of an Opportunity Zone for Census Tract 30029001000. FISCAL EFFECTS: There are no anticipated direct fiscal impacts at this time, although the creation of the zone, if granted, would generate positive investment benefits in the downtown. ALTERNATIVES: Deny the request. ATTACHMENTS: Resolution 6332 Draft application c: Aimee Brunckhorst, Kalispell City Clerk RESOLUTION NO. 6332 A RESOLUTION AUTHORIZING AN APPLICATION BY THE CITY OF KALISPELL TO THE MONTANA DEPARTMENT OF COMMERCE WITH A REQUEST FOR A RECOMMENDATION TO BE FORWARDED TO THE GOVERNOR'S OFFICE FOR REVIEW AND APPROVAL OF THE CREATION OF AN OPPORTUNITY ZONE FOR CENSUS TRACT 30029001000 IN THE CITY OF KALISPELL, MONTANA. WHEREAS, the City of Kalispell has the opportunity to apply to the Montana Department of Commerce with a request for a recommendation to be forwarded to the Governor's Office for review and approval of the creation of an Opportunity Zone for Census Tract 30029001000 for the purposes of strategic investment and economic development in the Core/Downtown areas of the City of Kalispell; and WHEREAS, by utilizing multiple sources to secure capital for redevelopment projects, private investment can be leveraged to generate the resources necessary to bring various economic development projects to life; and WHEREAS, designation as an Opportunity Zone will accelerate a coordinated, multi -partner effort already underway to revitalize Kalispell's downtown core, unlock private capital, and strengthen Northwest Montana's regional economic hub. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That the City of Kalispell supports the application for the creation of an Opportunity Zone for Census Tract 30029001000. SECTION 2. That the City of Kalispell requests that the Montana Department of Commerce forward the Opportunity Zone Application to the Governor's Office for review and approval for the awarding of the designation of an Opportunity Zone for Census Tract 30029001000 in the Core/Downtown Area of the City of Kalispell. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 6TH DAY OF JULY, 2026. Ryan Hunter Mayor ATTEST: Aimee Brunckhorst City Clerk Q.ITY OF KALISPELL, MONTaZhu NA Ai ISPELI GLACIER Q 4.. .. BANK r i-ae y 1 1 • IIIVIII 77 . � DOWNTOWN „1 �.. A y. - � 1 T he Book storI f„ ' v L N N Il Iv It. 1 H l a R 6, .d. • KAL[SPELL _ • ter'MT B N I . R , i GLACIER NATIONAL` �s PARK DOWNTOWN KALISPELL OUR HERITAGE GLACIER NATIONAL PARK GLACIER REGION CITY HALL A Thriving Community Core Preserving Our Past, A Vuorld-Class Neighbor Natural Beauty, Economic Strength. Strang Leadership. Building Our Future Local Commitment. �ppf tSHIP 8ualtiing a resilient Investing in people Creating opportunity. � A remarkable place and vibrant community. placemaking, and progress. Building tomorrow together, � to live, work & thrive, SECTION 1: COLLABORATING PARTNERS AND LETTERS OF SUPPORT Collaborating Partners City of Kalispell 201 First Avenue East Kalispell, MT 59901 Downtown Kalispell Forward Coalition 2 South Main Street, Ste 205 Kalispell, MT 59901 Montana West Economic Development Corp 44 Second Avenue West Kalispell, MT 59901 Flathead County Economic Development Agency 290 North Main Street, Suite F Kalispell, MT 59901 Kalispell Chamber of Commerce 2 South Main Street, Ste 205 Kalispell, MT 59901 Kalispell Business Improvement District P.O. Box 1997 Kalispell, MT 59903 Northwest Montana Association of Realtors 2282 Hwy 93 South, Ste B Kalispell, MT 59901 Letters of Support Parkline Partners, LP Compass Construction, Bill Goldberg 4809 Cole Avenue, Suite 330 200 1st Ave E Dallas, TX 75205 Kalispell, MT 59901 1 1 Page SECTION 2: PROPOSED CENSUS TRACT The City of Kalispell, the Kalispell Chamber of Commerce, the Downtown Kalispell Forward Coalition, the Kalispell Business Improvement District, Montana West Economic Development Corporation, Flathead County Economic Development Agency, and the Northwest Montana Association of Realtors proudly submit Census Tract 30029001000 for consideration as an Opportunity Zone. The proposed zone encompasses much of the core downtown of Kalispell. .. it ia5y' li 1" s'. KALISPELL REGIONAL IIII 1ti MEDICAL CENTER J 77 �J CONRAD _ COMPLEX Flathead --�`,,* .•,pal — 1 •��Ya r„ �-5' Ali-•�� ? �.�':�- 1I 4 21 Page s rr � e I Itr� Al t # ■^,,.`� 7'� ski a -�e .t Downtown KA.Pc11' 1940 SECTION 3: STRATEGIC ALIGNMENT AND VISION • What is the reason you think an Opportunity Zone Designation is necessary for economic development in this Census tract? This Census tract represents the core downtown area in Kalispell. As the traditional commercial center of the city, there is a long history associated with the downtown that Kalispell takes much pride in. Any downtown, however, needs to have continual strategic investment in order to thrive. Due to limitations inherent in a built environment such as a downtown area, reinvestment can often be difficult and expensive. The benefits of an Opportunity Zone can provide the boost necessary to encourage development and redevelopment opportunities in our downtown. As an OZ, would this Census Tract encourage rural development? Kalispell and the adjoining urbanized area of Evergreen have a population of less than 50,000 people. The development stimulated by the Opportunity Zone would directly benefit a rural area. 31 Page Why do you think the proposed tract will attract investment? Many tracts have need, but fewer also have readiness and execution capacity. This nomination stands out because it combines clear eligibility under Opportunity Zone 2.0 criteria, immediate deployability of capital, an existing project pipeline and leadership alignment. This tract is at an inflection point. Projects are identified, stakeholders are aligned, and a market demand is present. A capital gap remains the primary constraint. An Opportunity Zone designation will: • Unlock long-term private equity investment. • Accelerate redevelopment timelines. • Reduce risk for early -stage projects. • Anchor sustained, multi -phase transformation of the downtown core. • What is the specific _goal(s) for this zone? (�., preventing displacement, encouraging new development, fostering small businesses). The proposed opportunity zone is part of multiple planning efforts by the City of Kalispell. It is part of the Core Area Plan and the Downtown Plan. It is also part of two tax increment financing districts: the Westside-Core Area TIF and the Downtown TIF. New ea t—t axis along Monfona - New Nedh E.hy to The Mah t y., Sheet. c omplimenting the 1114oic Outdmorsetob focus oppoduniry for higher donsity Kahpell core. 2A sW., mixed New..tdoospedeshnan plmm - widen Hal, with grant news .nd p use with residential. tree-Itned, - Along the new hail system access fo the tr." and park New westim 'focal pmhN': petlesfdan-focused - Convent.. Center. \ (Wnfes fo f.if)r ds) ,s - Supported by new Dark g.A,,.... .m. J,.. 1-14,-- New h gh., d—ily resid—ti.1 awed More 9-1, crass the new pedeshian palh way, in — troffi New bddge'gateway' to downtown, and link to additiond tt-1ih ,.g 1 1 CI. upfh—ape between Hsi polhwgy and the park: co�ate a new ouldoer amphi- ffi—ter and easy wayfnding to downtown AFi— ...YCenter Sheef is girensidewaks a.ArSsT New LibroryT and boulevards, andbecause a - Near toWoodlandPark propertiesPen tothe c7>. e(creole'adsinHieporkSheef and flopredoshan path- :�-Close 1' 1 muse /gallerl way,. they ore more desire able f the character mf Main Slreet is properties along Nsls area have a mpk fed and t d yy t o 3 heat AND g thepath y -king th a lot oath m focal Pvinh %h d bl f- s4t ffi4 i a s �lx. .the C Ms m �, ..... .. .. . .. .. c, e_ '"cmn�r�.�ee�m"ring cewe n,� 41 Page The Core Area Plan was adopted in 2012. The design intent of this area is to be a vibrant and lively continuation of the historic downtown of Kalispell, extending east -to -west along the entirety of Montana Street. A key goal of the plan was the relocation of the railroad tracks from the Core Area, thereby creating a green belt with pedestrian and bike access. Railroad dependent business relocated to a new rail industrial park and, in conjunction with the replacement of the tracks with the Parkline Trail, opened up this area for redevelopment Qnwmn.w� Kal.isryell Plan BnuniCary .� ...,„„ ,. ,f T- i' Ali GERM a DIM f w The Downtown Plan, adopted in 2017, identifies key issues and strategies relating to: • Main Street character; • Parking supply and management; • Downtown historic character; • Private property upgrades to attract new tenants; • Public infrastructure improvements; • Development of an entertainment district; and • Financing tools to achieve plan goals. Part of the implementation of both plans was the creation of the two tax increment financing districts. The Westside-Core Area TIF and the Downtown TIF provide another source to help support the revitalization of the proposed Opportunity Zone. By utilizing multiple sources to secure capital for redevelopment projects, private investment can be leveraged to generate the resources necessary to bring those projects to life. 51 Page Al T-- : -1 — -FTT` PARKRIOGE OR 9 CC W! Alk �r I OF Rr4U IF -w 51 7S vas 51 61 It. r q �4,51 Downtown TIF 61 Page How does this tract fit into the area's broader economic development strategy? (e.g., housing, rural revitalization, industrial reshoring)? This tract meets federal Opportunity Zone 2.0 eligibility criteria and represents one of the most investable, high -impact urban revitalization opportunities in the state. Designation will accelerate a coordinated, multi -partner effort already underway to revitalize Kalispell's downtown core, unlock private capital, and strengthen Northwest Montana's regional economic hub. Inclusion of this tract would align with economic development strategies and directly support active regional priorities: 1. Business Retention & Expansion (BRE) • Expansion of small local businesses and service providers • Strengthening the regional commercial core 2. Workforce & Housing Development • Proximity to jobs, services, and transit • Opportunity for workforce housing integration in mixed -use projects 3. Tourism & Year -Round Economy • Downtown as a base for Glacier National Park visitation • Strategy to increase shoulder -season economic activity 4. Public -Private Coordination • Chamber, City, and regional partners actively coordinating investment strategy • Existing governance and alignment reduce execution risk • Does this Census Tract have the local community's stakeholder support for OZ development? The City of Kalispell, the Kalispell Chamber of Commerce, the Downtown Kalispell Forward Coalition, the Kalispell Business Improvement District, Montana West Economic Development Corporation, Flathead County Economic Development Agency, and the Northwest Montana Association of Realtors have joined together as collaborative partners to submit this application. There are also letters of support from developers with potential projects in the proposed zone. Each of the organizations can see the enormous potential presented by an opportunity zone designation and the alignment of the designation with each of the partner's goals for the downtown. 71 Page Those goals include: • Infrastructure and streetscape improvements. • Downtown housing and mixed -use redevelopment. • Activation of underutilized commercial properties. • Placemaking and economic vibrancy strategies. • Alignment of long-term redevelopment vision with private investment. This initiative is already aligning stakeholders, identifying projects, and building momentum for capital deployment. • As OZ investment is occurring,, what community structure and resources are in place to support the development? As noted, the proposed zone has widespread support throughout multiple stakeholders within the community. Community support for the revitalization of the downtown has led to addressing the area through neighborhood plans adopted by the City Council and the creation of financing sources such as the TIF districts established by the City. The City has also supported and continues to support the downtown by pursuing grants and other funding for the improvement of public infrastructure that is critical for redevelopment efforts. For example, conduit was placed along the Parkline Trail through the Core Area to allow for the placement of fiber optic cable to support future development. SECTION 4: INVESTMENT READINESS AND MARKET POTENTIAL What amount, type, and timeline for investment is needed to accomplish the specific goals) for the zone? While it is difficult to detail specific investment needs, the Core Area Plan and Downtown Plan lay out a detailed roadmap for necessary improvements in this area, both in terms of infrastructure and private development. Furthermore, the plans provide implementation steps that have seen concrete steps on the ground, such as the replacement of the railroad tracks with the Parkline Trail. The plans anticipate both short-term and long-term investments from both the public and private sector to realize the potential the downtown offers. 81 Page Does this tract have sufficient infrastructure (i.e. ener2v. water. and broadband) and property available for OZ investment? The tract has full city services, including water, sewer, electricity, streets, broadband and other services expected in an urbanized area. Improvements to the infrastructure through redevelopment would help truly unlock the potential of the downtown. Are there already potential projects in the pipeline that would be suitable for OZ investment within the next year? If so, please describe. There are multiple projects which could come to fruition over the next year. The two largest ones include a significant redevelopment of the Kalispell Center Mall and the Charles Hotel, along with a related parking structure. Both projects have shown support for the Opportunity Zone. The approximately 20-acre mall property envisions extending road connections, a hotel, library site, and substantial upgrades which would bring needed vibrancy to the downtown. Similarly, the Charles Hotel and the parking structure would utilize under -used parking lots for a boutique hotel with small conference capacity along with a parking structure that could help open up the downtown to further development. Both of the projects are in need of the capital boost from an Opportunity Zone and represent the types of projects with the potential to reinvigorate the downtown area. What are the current zoning regulations for this Census Tract area? Does this zoninu need to be modified to improve investment opportunities? The zoning regulations are primarily commercial, with some portion of the tract extending into residential areas. The B-3 and B-4 zones that apply to the majority of the area have significant built-in development incentives, including no minimum lot size, no setbacks, no maximum lot coverage and either no minimum parking requirements or substantially reduced requirements. The remainder includes primarily residential/office areas, including provisions for multi -family use. SECTION 5: IMPACTS What is the strategy to protect existing businesses and residents from displacement? As the proposed zone includes two TIF districts, urban renewal laws and policies are in place to help protect existing businesses and residents from displacement. Potential projects in the pipeline would generally add to rather than displace any existing uses. What secondary economic impacts might result from OZ development in this Census 91 Page Tract (i.e. increase in jobs and housing, improved household income, businesses created Kalispell functions as the primary trade, service, and employment center for Northwest Montana. Downtown is the economic and civic heart of the Flathead Valley, serving: • Regional workforce and healthcare access • Tourism gateway to Glacier National Park • Small business and entrepreneurship ecosystem Housing and workforce development investment in this tract produces outsized regional returns, not just local benefits. • How will you monitor and report on OZ investments? (e.g., tracking job creation, wages, and new housing_units)?units)? Given that the commercial area of the proposed zone includes several established districts, such as the TIF districts and the Business Improvement District, there are built-in annual monitoring reports which would track the economic data within the Opportunity Zone in addition to the opportunity fund reporting requirements. REQUEST We respectfully request that the Governor nominate Census Tract 30029001000 as a designated Opportunity Zone 2.0 tract. This designation will leverage active local leadership and private - sector alignment to deliver measurable, statewide economic returns. 101 Page LISpF �� DRBLrrvoeB lry �f COLLABORATION DRIVEN BYRESDLTS O p Ir , 1 11 1 ,1 11 2 IF. B4. RBID, TBSO June 16, 2026 Montana Department of Commerce Opportunity Zone 2.0 Application Review RE: Letter of Support and Collaboration - Proposed Opportunity Zone, Census Tract -30029001000. Kalispell, MT, Flathead County To the Opportunity Zone Application Review Committee: On behalf of the Downtown Kalispell Forward Coalition, I am writing to confirm our organization's support for, and active collaboration on, the application to designate Census Tract 30029001000 in Kalispell, MT, Flathead County as a 2026 Opportunity Zone. Our Coalition is comprised of five significant and impactful business organizations with the single mission of revitalizing the heart of our community - downtown Kalispell. We have worked alongside the City of Kalispell in preparing this nomination and are committed to supporting its implementation if the designation is approved. Our Coalition's role in this collaboration includes supporting the City's Core and Downtown Plan which includes multiple identified redevelopment opportunities in the heart of Kalispell. We believe this designation will be a significant incentive for developers and investors to revitalize our core downtown. It is a community goal to drive vibrancy to our downtown and become an 18-hour, activated core. We understand that, as OZ investment occurs, our organization, as a collaborator, will work to support the revitalization efforts. Please contact the undersigned with any questions regarding our organization's role in this application. Sincerely, Bill Moseley, GL Solutions President/CEO - 503.449.0898, moseley@glsolutions.com Downtown Kalispell Forward Coalition Chair 2. South Main, Suite 205, Kalispell, MT 59901 Docusign Envelope ID: AA57DF9D-B584-8ED0-822C-67C573338773 flathead NOMIC councounty I DE�E OPMENT AUTHORITY FCEDA Contact Information: Kirk Zander, Executive Director 290 North Main Street, Suite F Kalispell, MT 59901 Email: kirk(a)flatheadcountyeda.com Phone: 406.871.3902 June 18, 2026 Montana Department of Commerce Opportunity Zone 2.0 Application Review RE: Letter of Support and Collaboration — Proposed Opportunity Zone, Census Tract 30029001000 Kalispell, MT, Flathead County To the Opportunity Zone Application Review Committee: On behalf of Flathead County Economic Development Authority (FCEDA), I am writing to con- firm our organization's support for, and active collaboration on, the application to designate Cen- sus Tract 30029001000 in Kalispell, MT, Flathead County as a 2026 Opportunity Zone. We have worked alongside the City of Kalispell in preparing this nomination and are committed to supporting its implementation if the designation is approved. Our organization's role in this collaboration includes our support of the Downtown and Core plans for the City of Kalispell. We believe this designation will be a significant incentive for de- velopers and investors to revitalize our core downtown. It is a community goal to drive vibrancy to our downtown and become an 18-hour, activated core. We understand that, as OZ investment occurs, our organization, as a collaborator, will work to support the revitalization efforts. Please contact Kirk Zander, Executive Director, with any ques- tions regarding our organization's role in this application. Sincerely, Signed by: �666V, Spri'" a��.n�n�5aiaaa Jason Spring Chairman, Flathead County Economic Development Authority O'� NI June 19, 2026 � O VV Montana Department of Commerce Opportunity Zone 2.0 Application Review RE: Letter of Support and Collaboration — Proposed Opportunity Zone, Census Tract 30029001000, Kalispell, MT, Flathead County To the Opportunity Zone Application Review Committee: On behalf of the Kalispell Business Improvement District (KBID), I am writing to confirm our organization's support and collaboration on the application to designate Census Tract 30029001000 in Kalispell, Montana, Flathead County, as a 2026 Opportunity Zone. KBID's mission is to support a clean, safe, vibrant, and economically healthy downtown Kalispell. The proposed Opportunity Zone designation aligns closely with that mission and with the City of Kalispell's Core and Downtown Plan, which identifies multiple redevelopment opportunities within the heart of our community. We believe this designation could serve as an important tool to encourage private investment, redevelopment, adaptive reuse, housing opportunities, and business growth in downtown Kalispell. These outcomes are directly tied to our shared community goal of creating a more active, walkable, and vibrant downtown core that serves residents, businesses, employees, and visitors throughout the day and evening. As investment occurs, KBID is committed to supporting revitalization efforts within the district through continued collaboration with the City, downtown property owners, business owners, and community partners. Our role may include supporting communication with downtown stakeholders, helping align improvements with district priorities, and continuing our work related to public -facing downtown enhancements. We appreciate the opportunity to support this application and believe the proposed Opportunity Zone designation would provide meaningful benefit to downtown Kalispell and the broader community. Please contact the undersigned with any questions regarding KBID's role in this application. Sincerely, Kai sajav" hair Kalispell Business Improvement District CHAMBER June 16, 2026 2026 BOARD OFFICERS Montana Department of Commerce Pete Akey Chair Opportunity Zone 2.0 Application Review Teryn Waldenberg Vice Chair RE: Letter of Support and Collaboration - Proposed Opportunity Zone, Jessi Wood Census Tract 0029001000. Kalispell, MT, Flathead County Secretary & Treasurer Bill Moseley To the Opportunity Zone Application Review Committee: Immediate Past Chair Lorraine Clarno On behalf of the Kalispell Chamber of Commerce, I am writing to confirm President/CEO our organization's support for, and active collaboration on, the application BOARD OF DIRECTORS to designate Census Tract 30029001000 in Kalispell, MT, Flathead County A.J. King Cameron Guthrie as a 2026 Opportunity Zone. We have worked alongside the City of Kalispell Casey Wyckoff in preparing this nomination and are committed to supporting its James Williamson Jane Karas implementation if the designation is approved. Jared Richardson Jeri Moon MattJensen Our organization's role in this collaboration includes supporting the City's Megan Derrington Michael Barth Core and Downtown Plan which includes multiple identified Paul McKenzie redevelopment opportunities in the heart of Kalispell. We believe this Rory Young Ryan Bowman designation will be a significant incentive for developers and investors to Sarah Gould Tia Robbin revitalize our core downtown. It is a community goal to drive vibrant to y g y Todd Rahr our downtown and become an 18-hour, activated core. PROGRAMS We understand that, as OZ investment occurs, our organization, as a Leadership Flathead Catapult Collective collaborator will work to support the revitalization efforts. Please contact Kalispell Chamber the undersigned with any questions regarding our organization's role in Foundation this application. INDUSTRY SECTOR PARTNERSHIPS Sincerely, Discover Kalispell Manufacturing Alliance Workforce Development & Education W�� oalll_� Lorraine Clarno, ACE President/CEO 2 South Main Street, Suite 205 1 Kalispell, MT 59901 1 (406) 758-2800 1 kalispellchamber.com ontana eStECONOMIC DEVELOPMENT June 18, 2026 Montana Department of Commerce Opportunity Zone 2.0 Application Review RE: Letter of Support — Proposed Opportunity Zone, Census Tract 30029001000, Kalispell, Montana, Flathead County To the Opportunity Zone Application Review Committee: On behalf of Montana West Economic Development (MWED), I am pleased to express our support for the application to designate Census Tract 30029001000 in Kalispell, Montana as a 2026 Opportunity Zone. MWED's mission is to support business growth, investment, and economic vitality throughout Flathead County. As an organization focused on fostering entrepreneurship, business expansion, and access to capital, we recognize the value of having a diverse set of tools available to encourage private investment in our region. The Opportunity Zone program represents an additional mechanism to attract investment, support business development, and stimulate economic activity. Expanding the availability of investment tools can help communities compete more effectively for capital, encourage redevelopment, and create opportunities for businesses and residents alike. We believe designation of this census tract as an Opportunity Zone would strengthen local economic development efforts and provide another resource to help advance strategic investment in the Kalispell area. MWED supports this application and looks forward to the potential benefits that additional investment opportunities could bring to the local economy. Please feel free to contact me if you have any questions regarding MWED's support of this application. Sincerely, Christy Cummings Dawson, President Montana West Economic Development 44 2nd Avenue West • Kalispell, MT 5990 • 4`6.257.77 i i • dcbusinessinmontono.com Montana West Economic Development is an equal opportunity employer, provider, and lender. NORTHVilEST MONTANA REALTOR5 June 18, 2026 Montana Department of Commerce Opportunity Zone 2.0 Application Review THE VOICE OF REAL ESTATE IN NORTHWEST MONTANA RE: Letter of Support and Collaboration — Proposed Opportunity Zone, Census Tract 30029001000. Kalispell, MT, Flathead County To the Opportunity Zone Application Review Committee: On behalf of the Northwest Montana Association of Realtors (NMAR), I am writing to confirm our organization's support for, and active collaboration on, the application to designate Census Tract 30029001000 in Kalispell, MT, Flathead County as a 2026 Opportunity Zone. We have worked alongside the City of Kalispell in preparing this nomination and are committed to supporting its implementation if the designation is approved. Our organization's role in this collaboration includes our support of the Downtown and Core plans for the City of Kalispell. We believe this designation will be a significant incentive for developers and investors to revitalize our core downtown. It is a community goal to drive vibrancy to our downtown and become an 18-hour, activated core. We understand that, as OZ investment occurs, our organization, as a collaborator will work to support the revitalization efforts. Please contact the undersigned with any questions regarding our organization's role in this application. Sincerely, i Erica Wirtala, Director of Public Affairs Northwest Montana Association of Reaitors* 2282 US 93 South, Suite B - Kalispell, MT 59901 • 406.752.4313 . info(anmar.com June 18, 2026 To Whom It May Concern: RE: Support for Opportunity Zone Designation - Parkline District Redevelopment, Kalispell, Montana I am writing to express my strong support for the designation of an Opportunity Zone encompassing the Parkline District redevelopment area in Kalispell, Montana. Located on the site of the former Kalispell Center Mall, the Parkline District represents one of the most significant redevelopment opportunities in Northwest Montana. The project will transform an aging and underutilized property into a vibrant mixed -use destination that will serve residents, businesses, and visitors alike. While the site occupies a strategic location within the community, substantial investment is required to reposition the property and unlock its full potential. Opportunity Zone designation would provide a critical tool to attract long-term private capital and help advance this transformative redevelopment effort. The Parkline District will generate meaningful public benefits, including enhanced public spaces, improved trail connectivity, and growth in local tax revenues. The redevelopment will also encourage reinvestment in surrounding properties and strengthen Kalispell's economic base for years to come. As a catalytic project, the Parkline District's impact will extend well beyond its boundaries, helping attract additional private investment and supporting long-term economic growth throughout the community. For these reasons, I respectfully urge approval of the proposed Opportunity Zone designation for the Parkline District area. This designation will help unlock private investment, accelerate redevelopment, create jobs, expand the tax base, and support the continued growth and success of the Kalispell community. Thankyou foryour consideration. Sincerely, b v4r� Daniel Fuller Parkline Partners, L.P. Office of the Governor, State of Montana / State Opportunity Zone Nominating Authority Re: Nomination of Downtown Kalispell for Opportunity Zone Designation June 25, 2026 Dear Members of the State Opportunity Zone Nominating Authority: My name is Bill Goldberg, owner of Compass Construction, a development and construction firm with deep roots right here in Flathead Valley. I am writing today to make the case for the designation of an Opportunity Zone in downtown Kalispell, Montana. This is not a speculative ask. My partners and I have a project ready to build, a vision for what this downtown can become, and a clear understanding of what stands between here and there. An Opportunity Zone designation is the bridge we need. The Project: Buffalo Block Hotel Project Compass Construction and its partners have been working for several years to bring a boutique hotel with restaurants to the heart of downtown Kalispell. Our project is intended to be a thoughtfully designed, locally rooted lodging experience that honors the character and history of this community while providing the amenities that today's travelers expect. Alongside it, we plan to develop a parking garage, addressing one of the most persistent pain points that businesses and visitors in our downtown core have faced for years. This is a public -private partnership with the City of Kalispell. The project is envisioned as a genuine anchor for downtown Kalispell, a place that draws visitors who will walk our streets, eat in our restaurants, shop in our stores, and come back again. Paired with a structured parking solution, this project addresses three needs simultaneously: job creation, hospitality capacity, and parking infrastructure. Together, they create a foundation that benefits the community along with every business in the downtown corridor. The Challenge: Why the Numbers Don't Work Without Help I have been in construction and development in the Flathead Valley my entire career and have first-hand understanding of the risks associated with a hospitality project in a small mountain city like Kalispell. Given our size and geography, there are elevated construction costs, additional infrastructure requirements, and uncertainty in financing options available in today's market, which make this project genuinely challenged in securing capital, especially local capital and partners, without some form of economic enhancement and risk adjustment. Investors are cautious. Lenders are cautious. Without a meaningful reason to deploy capital into this specific geography, the money goes elsewhere for a boutique, lifestyle hospitality and parking project. That is exactly the gap that an Opportunity Zone is designed to close. By allowing investors to defer and reduce capital gains taxes through investment in designated low-income areas, the Opportunity Zone program changes the calculus. It makes projects like the Buffalo Block Hotel and parking viable and provides a necessary level of risk adjustment to investors to participate in a project intended to be a catalyst of economic redevelopment. What an Opportunity Zone Designation Would Mean for This Project Specifically, here is what Opportunity Zone designation would enable for Buffalo Block Hotel and parking garage development: Access to Qualified Opportunity Fund capital. Designation would allow us to structure investment through a Qualified Opportunity Fund, which unlocks a national pool of deferred capital gains looking for exactly this kind of development. These are investors who are already motivated — they have gains to shelter and timelines to meet. Without the designation, we cannot access that capital pool. With it, we can. Additionally, with a national audience of potential investors evaluating the opportunity we will be able to make a more compelling case for investment to local sources of capital within Montana that may realize the value when competing with other national groups. Reduced cost of equity. The tax advantages flowing to investors through the OZ program adjust the economics, which improves the overall project appeal. In practical terms, this is the difference between a deal that works and one that doesn't. For the Buffalo Block Hotel, which has significant upfront costs and a longer stabilization horizon than a typical commercial project with potential seasonality, this reduction in equity cost is not a minor factor, it is potentially determinative. Accelerated project timeline. Because Opportunity Zone investments are time -sensitive by nature, investors have deadlines tied to the deferral rules, designation creates urgency. That urgency is good for Kalispell. It means shovels in the ground sooner rather than later, construction jobs sooner, tax base growth sooner, and the downstream economic activity that comes from a new hotel and parking facility sooner. A catalyst for surrounding investment. Across the country, Opportunity Zone designations have often sparked more than a single project; they have encouraged clusters of development. When investors view an area through the lens of OZ eligibility, they assess the broader district, not just one site. A hotel and parking garage on one block can generate interest in nearby properties, allowing revitalization to build momentum. The Case for Downtown Kalispell We have a historic downtown with good bones, independent businesses fighting to stay alive, and a community that deserves more than slow decline. What we have lacked is the local capital investment to match our potential. Downtown Kalispell has the characteristics of a community that Opportunity Zone designation was designed to serve. There are underutilized properties. There are infrastructure gaps. There is a clear need for private local investment so that the market alone, under current conditions, is not delivering at the required scale. An OZ designation does not guarantee success, yet it creates the conditions under which success becomes more possible. Right now, those conditions are absent. A Request and a Commitment I am asking for Opportunity Zone designation for the downtown Kalispell area. I am prepared to back that ask with action. Our partnership is ready to move forward with the Buffalo Block Hotel project the moment the investment structure is in place, and economic adjustments are fully articulated. This is not a concept in a drawer somewhere. This is a project with plans, a site, and an owner committed to seeing it built. I welcome the opportunity to present additional details, meet with stakeholders, or answer any questions that decision -makers may have. I am easy to reach and eager to have that conversation. What I can say with confidence is this: the project is real, the need is real, and the tool to make it happen — the Opportunity Zone designation — is right in front of us. Let's build something that Kalispell will be proud of for generations. Sincerely, Bill Goldberg Owner & Developer Compass Construction, Kalispell, Montana