Patrick/Update.� City of Kalispell
Post Office Box 1997-1Galispell, Montana 59943-1997 - Telephone (446) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: Old School Station Annexation
DATE: June 1, 2005
The City has the opportunity to partner with Andy Miller of Montana Venture Partners, LLC to
form a public/private industrial park. The industrial park "Old School Station" has a County
Zoning of "Light Industrial" and has an approved County plat for the Industrial Park. Montana
Venture Partners wishes to annex to the City, extend water and sewer lines to this industrial park,
in return for TIF assistance in construction of park infrastructure. The attached map shows the
location of the property in relation to the existing City limits. There are several advantages to
making this commitment. There are several property owners interested in annexing to the City
along US 93. This protects the southern entrance into the City and allows us to ensure a good
image to arriving visitors. The tax revenue that this park will generate will assist in developing a
sustainable tax base in future years as well as producing at least 1,000 good quality jobs. At the
current time there are three to four solid prospects creating approximately 400 jobs over the next
five years. Two of these businesses would like to get their footings and foundations in as soon as
possible. This will be a covenanted park that will require quality construction.
Industrial TIFs may be used for projects undertaken within or for an industrial district if the
proposed industrial district consists of a continuous area with an accurately described boundary,
is zoned for industrial use, does not include any property included within an existing urban
renewal area district, is deficient in infrastructure improvement for industrial development, and
has as its purpose the development of infrastructure to encourage the growth and retention of
secondary, value added industries.
Tax increments may be used by the municipality to pay the following costs of or incurred in
connection with an industrial infrastructure development project: land acquisition; demolition
and removal of structures, relocation of occupants, the acquisition, construction, and
improvement of infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian
malls, alleys, parking lots and off street parking facilities, sewers, sewer lines, sewage facilities,
publicly owned buildings and any public improvements; costs incurred in connection with the
allowable redevelopment activities; acquisition of infrastructure deficient areas or portions of
areas; administrative costs associated with the management of the industrial district.
RECOMMENDATION: Approve the Annexation Resolution for Old School House Station.
Staff will then proceed with the formulation of a T1F Industrial Park, business plan, zoning,
developer's agreements, late comer's agreement, internal engineering, planning commission
approval, and funding. It will be the developer's signal to start engineering plans and
construction for the water and sewer lines to the park.
FISCAL EFFECTS: Generation of significant tax dollars from new industrial buildings,
creation of over 1,000 jobs when built out, and increased wealth in the community.
ALTERNATIVES: As suggested by the City Council.
Respectfully submitted,
es H. Patrick
City Manager