West Side Tax Increment Financing DistrictCity of Kalispell
KALISPEL
FOR BUSINESS. FOR LIFE. MONTi�NA
MEMORANDUM
TO: Mayor Tammi Fisher
And Kalispell City Council
FROM: Jane Howington, City Manager
Wade Elder, Revolving Loan Fund Manager
Urban Renewal Agency
201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
SUBJECT: West Side TIF District — Redistricting of the boundaries.
MEETING DATE: August 22, 2011 —Work Session.
BACKGROUND: The Urban Renewal Agency (URA) has been meeting for the last
year and reviewing options with the West Side TIF District. Attached also please find the
memo from the August 10, 2011 URA meeting ,which describes the district,
considerations and three maps of optional plans to consider.
During this meeting the URA committee concluded; they realized there is merit in the
West Side TIF District and were in favor of expanding the district area using one of the
attached alternatives or a variation of them.
A redistricting of the TIF area would allow other projects to come forward for
consideration to the URA and City Counsel.
Respectfully submitted,
Wade Elder, Revolving Loan Fund Manager
sJane Howington, City Manager
i�ALISPEL
FOR BUSINESS. FOR LIFE. MONT"A
MEMORANDUM
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: West Side TIF Options.
City of Kalispell
Urban Renewal Agency
201 'Ist Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
MEETING DATE: August 10, 2011 --- Urban Renewal Agency Meeting.
BACKGROUND: The West Side TIF was established on 03/17/97 through the
passage of Resolution 4309 and ordinance 1259. It established the base year for
calculating the tax increment as 01 /01 /97. The TIF is set to sunset on 03/ 17/12. The
amount of funds in the West Side TIF account as of 08/03/11 was $1,768,110.31 and the
anticipated ending FY12 balance in the fund is $2,000,000. The projected revenues from
the proposed FY 2012 budget are $409,168.
Last month the West Side TIF made an early distribution of $465,000 back to the County
as recommended by the URA and approved by the City Council. These funds were
distributed back to the entities that they originated from. This was on the request of the
Kalispell School District which received approximately $153,000.00. Likewise the URA
recommended and was approved by the City Council a request from TeleTech in the
amount of $20,982.00 from the West Side TIF for fiber optic work in the TIF area (this
disbursement has not been completed yet).
We just received a notice from the Department of Revenue concerning the "2011
Certified Taxable Valuation Information". In this report the Incremental Taxable Value
increased from 477,637 in 2010 to 586,249 for 2011. This is mainly attributable to the
review of the West Side TIF District last year and finding approximately 75 properties
that were not identified in the TIF District. We should be able to determine shortly an
approximate dollar amount that will be going to the TIF District.
Flathead County Fairgrounds: The City and the URA has had meetings with the
Flathead County Fairgrounds manager and have discussed the possibility of doing some
joint work with them at the Fairgrounds. The Fairgrounds is a parcel of approximately 58
acres located in the city limits of Kalispell and located directly west of the West Side TIF
District on Meridian Drive. The Fairgrounds has changed management recently and have
directed the new manager to explore options to create a facility with a pleasant design
appearance, which it presently falls short of. A consideration is to enter into some kind of
contractual agreement with the City and County to expand the TIF area and do some of
these improvements. The idea of building a Trade Center 1 Multi -Purpose facility and
using in conjunction with the County's present facility is a possibility. At our last URA
meeting the Flathead County Fairgrounds manager identified capital and infrastructure
improvements of:
$ 922,730.50 Exterior Fence & Gate Improvements
$257305000.00 Multi -Use Building
$ 57500.00 Infrastructure Improvements
$L397,580.00 Exhibit Pavilion — Removal of Horse Barns C-G
Kalispell Fore Area Program: The City over the last several years has been working on
Planning and Brownfield grants that has centered in the area between Washington Street
and First Street East with the railroad tracks running through the middle of it. This area
has some tired and blighted areas within it that could use some help. The area was also in
the past being considered for a Performing Arts Center. The City has had discussions in
the past with the Center mall folks about using land they own across the railroad tracks
from them as a Trade Center facility and have talked about possibly donating the land to
the City for that purpose. Staff has visited with approximately 20% of these property
owners and is gathering information regarding their thoughts and concerns.
OPTIONS TO CONSIDER: As requested by the URA during the August 101h meeting
the City Staff will provide 3 options for the URA to consider for boundaries of the Urban
Renewal District. You will be provided with maps at the meeting and discussion points
including:
■ Boundaries
■ Time Lines
• Major Work Elements
■ Legal implications
• Bonding Issues
The City Staff is anticipating taking the recommendation of the URA from this meeting
to the City Council on August 22, 2011.
FISCAL IMPACTS: There is no anticipated impact on the general fund as the
City has indicated it did not want to be involved in operating any additional facilities at
this time. Funds in the west Side TIF District will be directly affected by the
recommendations of this committee and the final decision of the City Council.
Respectfully submitted,
Wade Elder, Revolving Loan Fund Manager
2
Current Westside Tax Increment Finance [district & Core Area Revitalization
Westside Tax Increment Finance District & core Area Revitalization
Option 1 - Expansion of Tax Increment Finance District
Westside Tax Increment Finance District & core Area Revitalization
Option 2 - Expansion of Tax Increment Finance District
Westside Tax Increment Finance District & core Area Revitalization
Option 3 - Expansion of Tax Increment Finance District