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Resolution 5080/TIF Development Plan, ! ! 1 ! i:t MA .. / ! . 1lop I l WHEREAS, the City of Kalispell, Montana (the "City") is defined as a "municipality" under Montana Code Annotated, Section 7-15-4283, as amended, for the purpose of creating a Technology District (the "District") pursuant to Montana Code Annotated, Section 7-15-4295, as amended, and being operated by the City pursuant to Montana Code Annotated, Sections 7-15-4282 through 7-15- 4293 and Montana Code Annotated, Title 7, Part 15, Chapter 43 (collectively, the "Act"); and WHEREAS, subject to the satisfaction of certain requirements contained in the Act, the City is authorized pursuant to Section 7-15-4295 of the Act to consider infrastructure improvements necessary for technology development and to adopt a comprehensive development plan (the "Plan") that would ensure the District's ability to host a diversified tenant base of multiple independent tenants; and WHEREAS, the City Council of the City (the "Council"), by a vote of 7 to 2, adopted Resolution No. 5071 on October 17, 2005 (the "Preliminary Resolution"), made preliminary findings and gave its notice of intent to form the District and gave notice of a public hearing on a proposed ordinance establishing the District under the Act. WHEREAS, the Council, on November 7, 2005, after publication of the public hearing notice as required by the Act and after hearing comments on the formation of the District at a public hearing, passed the first reading of Ordinance No. 1558 (the "Ordinance") by a vote of 7 to 1 authorizing the formation of the District. THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA HEREBY FINDS, DETERMINES, AND DECLARES THAT: 1. Based on all evidence made available to the Council to date related to the District, the area of the District is found to be deficient in infrastructure improvements necessary for technology development. 2. The Plan, as contained in Exhibit A attached to this resolution, is formally adopted as the comprehensive plan structured to ensure that the District can host a diversified tenant base of multiple independent tenants. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 21ST DAY OF NOVEMBEI ATTEST: Theresa White City Clerk Comprehensive Infrastructure and Business Plan For Old School Station Technology and Industrial Park In order to meet the challenge of balancing the economy of the City of Kalispell and enhance the economic work base by creating livable wage jobs, the City of Kalispell (City), in partnership with Montana Venture Partners (MVP), intends to develop Kalispell's first Industrial Park with the use of Industrial and Technology Tax Increment Funding Districts. This industrial park will provide an advantageous location as the gateway to the Flathead Valley for unprecedented long- term high wage job creation, increased business diversification and strengthening of the manufacturing, distribution, and technology based employment in the Flathead Valley. MVP will extend sewer and water lines to its project location at the intersection of Demersville Road and Rocky Cliff Drive. This extension of City services south of Kalispell will create additional commercial and residential growth. The City will design and construct the internal infrastructure utilizing Special Improvement District bonds. The City will overlay this industrial park with a technology and industrial tax increment Districts to provide incentives for qualifying companies. The TIF would pay for the SID assessments and reduce the property acquisition cost. Once the TIF approval is concluded, MVP will begin preliminary site grading. The estimated time for that portion will be 52 days. The utility design is nearing completion and the anticipated time for construction is approximately 110 days and the Old School Station infrastructure construction estimated to take 105 days. Once this work is completed, MVP will begin aggressive marketing. It is anticipated that Fun Beverage, the first tenant, will begin construction once final approvals are obtained. There are two technology businesses ready to proceed once approvals are given. The first is a technology development center and the second is an entertainment center for movies, TV and radio production. The City and MVP is poised to develop the 55 acre technology and industrial park called "Old School Station", taking its name from the original century —old Demersville School that stands today near the MVP property. The project will have 17 lots available, to which high technology business, distribution facilities, communication and entertainment production facilities, and light industrial businesses will be recruited. The new developed businesses will add balance and diversity as well as strengthen the existing tax base for the City. The use of Tax Increment Financing (TIF) funds will assist in the recruitment of these businesses. The Technology/Industrial Park is located approximately 1.9 miles south of the current City limits at the intersections of HWY 93 South, Demersville Road and Rocky Cliff Road. To the immediate northeast is the old town site of Demersville while to the east continues one to three miles of farmland stretching to the winding Flathead River. On the west side of HWY 93 is interspersed residential and light industrial development. The park provides immediate access (within 100 yards) to Highway 93 running north and south by the park. In October 2004, the Colorado College State of the Rockies Report determined the Flathead Valley to be the most diversified economy within the Rocky Mountain region. This diverse economy includes agriculture, light manufacturing, information technology, recreation/tourism, timber, residential and commercial construction and services (including medical, real estate, and professional) services. Flathead County is the second fastest growing county in Montana since 2000 (U.S. Census, www.ceic,mt.gov) increasing 9.1% in population from 74,471 to 81,217. Flathead County is anchored by its regional trade center, Kalispell, whose 17,381 population has grown 22.2% since the 2000 census. The largest employers in Flathead County includes Northwest healthcare (regional hospital), Plum Creek, and Semitool, representing the increasing presence of high tech, medical, and value-added manufacturing industries that are in the Valley already. These employers also represent a larger trend away from a resource extraction based economy to one of resource recreation. Since jobs are moving away from a resource extraction to technology and value-added economy, people have learned to reinvent their skills. This trend has had two fundamental results: 1) the necessary retraining of the middle to senior age workforce (35-64); and 2) the phenomenon commonly referred to as "brain -drain" in which the younger generational workforce (18-35) migrates away from the region in search of immediate, higher paying opportunities. Recognizing this issue, tangible efforts must be made to improve the local environment for business development and job creation opportunities for the younger generation. The local Flathead Valley Community College is growing to "university" size, with almost 4000 full or part time students during the 2004 year and is currently expanding its facilities to concentrate on high -end manufacturing and technology based workforce development curriculum to support more high tech and industrial businesses moving to this area. By creating jobs that are more technology based and value-added results in higher paying, immediately -engaging and cross -marketable employment which caters to the type of employment that is attractive to the entire workforce, but especially the younger generations, and provides a livable wage for the workforce. Old School Station Technology and Industrial Park will benefit from the immediate resource pool of talented workers as well as add to the diversification that it and the general economy will enjoy. The secondary advantage to the creation of this technology and industrial park is the balancing of the tax base. For every dollar of taxes collected by industrial the City provides approximately $.19 of services. This tax advantage assists in keeping the residential taxes down. Old School Station site plan was designed to accommodate the natural beauty and topography of the land. All building sites will have City water, sewer, gas, electric, high speed internet services, fiber optics and phone services. Streets will be paved with road curbs and street lights. The 10 foot easement around the project will have a jogging/walking trail completely surrounding the perimeter of this site to accommodate pleasure walking and exercise. The intent of the site plan is to have all sites having a 360 degree view of the Flathead Valley. Opportunity abounds for Old School Station. This will be the first technology and/or industrial park in the City of Kalispell. The City hopes to seize the momentum of the current national economy, and the appeal of this area to recruit high tech and industrial businesses. With the City partnership, quality companies will be enticed by the TIF program and aided by City water, sewer, natural gas, and high technology communication systems. All tenants will have high tech infrastructure combined with curbed streets, street lighting, landscaping, sewer, water, and serviced by City Fire and Police services. Combined with the natural outdoor amenities, and covenants protecting the quality development, the environment will be an additional draw to businesses and employees. Old School Station will be managed by MVP until eight of the lots are sold. At that time, a Business Park Association will be formed with those eight tenants, along with the remaining nine lots being maintained by MVP until all lots are sold. MVP will be involved either directly or indirectly until the Park is completely full and successful. The business park association allows for the park tenants to determine their own needs and find effective ways to maintain and enhance their work environment. Tenant development and marketing will be a combined effort between the City and MVP. It is by this combined effort and energy, working hand in hand, that will make this park a success for all entities involved. The City participation in building the infrastructure through SID and creating the TIF districts to pay those special assessments will offer many opportunities for MVP and the City to market the location and opportunities for business development. The TIF will greatly assist in structuring an economic package and solidify the position to promote growth. MVP's three year projection anticipates two projects being started in 2005, three being started in 2006, and three projects in 2007. This timeline is realistic and attainable. Optimistically, it is anticipated that a certain amount of momentum will account for a more aggressive growth. MVP feels that with the support and partnership of the City and with an aggressive marketing strategy that within seven to eight years the Park will be completely filled and operating at full capacity.