06/18/01 Moyer to Popelka/Funding RequestResponse to June 18, 2001 Re Kalispell Funding Request of $750,000
Subject: Response to June 18, 2001 Re Kalispell Funding Request of $750,000
Date: Mon, 18 Jun 2001 11:05:50 -0600
From: "Susan Moyer" <smoyer@kalispell.com>
To: <randall_pope]ka@burns. senate.gov>
CC: <ckukulski @kalispell.com>, <bill @boharski.com>
1A. Yes, the proposed project would be eligible for a loan from the state's Clean Water or Drinking Water State
Revolving Loan Fund. The problem here is that the project funding request involves not only sewer and water lines
but roads, sidewalks, street lighting, etc. All the normal infrastructure requirements that go with industrial/business
park site costs for development to a site outside the city limits (will be annexed in) as well as on -site. Due to the fact
leased sites will come on line at different times, the ability to retire financing debt over and above the match amount
could serious impede the viability of the project.
1 B. No, the City has not applied for a SRF loan because of the complexity of the development's funding and the
City's ability to provide the matching dollars for the project cost of $750,000 through Montana Board of Investments.
IC. N/A
ID At this time it is undetermined how much the City would need to provide in match dollars for the loan fund vs. a
breakdown of the respective matching costs for roads, curbs & gutters, sidewalks, and street lighting.
2. The first business into the technical park has a commitment of the creation of 200 good paying jobs with full
benefits. The potential for the park at buildout is 1,500 jobs. Columbia Falls Aluminium Plant recently announced the
the plant would not be reopening in 2002 and PlumCreek Lumber is in dange of even more substantial layoffs or
closing due to the anticipated electricy rates.
3A. The requested funds are for construction on and to the site of all infra -structure needs.
3B Yes, the pending deadline for the first tenant in the park is rapidly approaching. Also, there is a large
commercial site being developed within close proximity and the ability to piggy back with this development would
greatly assist the overall cost of the tech park development.
4. Lines to move the sewage and grey water to the city's treatment plant on the south end of town as well as
drinking water. Additionally, the other infrastructure needs already identified such as: roads, curbs and gutters,
street lighting, traffic signal, etc.
5.A&B The City is required to have a 1.25 coverage on money it borrows. There is a currently State Revolving
Loan Fund due to close very shortly on a project to run sewer and water lines south of town to the Four Corners
area. This will be a $760,000 loan with an annual debt retirement of $56,000. This will be a rate increase in the
neighborhood of $1.20 to $1.50 a month for this project alone.
5C. A SID project the city is involved in with Kalispell Regional Medical Center has a market rate of 5.6%.
6. Matching dollars are expected to be raised through the retirement of a debt committed to by the City through real
and personal property taxes. Very much in the fashion the City and the County partnered in bring Stream
International to Kalispell and Flthead County.
7. The broad public purpose is the creation of well paying jobs for some 1,500 to possibly 2,000 jobs in a
public/private partnership with DNRC owning the state school section, the City assisting in the financing and retiring
the debt through real and personal property to be generated from the site, and the developer doing construction work
and locating the long-term tenants through a 40-year lease of the section with DNRC.
8. The project addresses both an immediate need and future growth/development. Northwest Montana is
serviously impacted by the closure of the Columbia Falls Aluminum Plant and threatened closure of Plum Creek.
The technical park offers the potential of 25 to 30 new business and a total employment base of 1,500 to 2,000.
Susan Moyer, Director
Community Development
of 2 6/19/01 11:14 AM
Jun-18-2001 07:03am From —SENATOR BURNS 'FFICE
202 228 2034 T-543 P•001/002 F-493
SENATOR CONRAD BURNS
Montana
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Jun-18-2001 07:03am From —SENATOR BURN" IrFICE 202 228 2034 T-543 P-002/002 F-493
Chris, per City of Kalispell's request, please answer the following questions and respond to be
via e:mail at randall_popelka@bums.senate.gov :
Project Name: City of Kalispell Business and Technology Park Utility Project
Funding Request: $750,000
IA. Is the proposed project eligible for a loan from its state's Clean Water or Drinking Water
State Revolving Fund?
1B. Have the potential grant recipients applied for an SRF loan?
IC. What priority ranking did the state assign to this project as the result of that application?
1D. If the community did apply for a loan, hoer large an SRF loan did the state determine
potential grant recipients could afford to repay?
2. How will the requested funds benefit low or moderate -income communities?
3A. Will the requested funds be used for construction, not debt relief?
3B. Will this be a one-year request that will move a project into construction?
4. What is the purpose of the project? Wastewater treatment or drinking water?
5A. What is the estimated average annual user fee as a percent of the estimated median annual
income of households that will be served by the project if the community constructs the proposed
project without the requested grant funds?
5B. with an SRF loan?
5C. with municipal funding at market rates?
6. What are the community's plans for providing the expected 45% match?
7. Does the project serve a broad public purpose or is it intended for a more limited (or private)
purpose that could more appropriately be :funded by a private party or local financing?
8. Does the project address an immediate need or is it predicated on future growth/development?