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3. Resolution 5527 - Resolution of Necessity - West Side Urban Renewal District7 Charles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 I TO: Mayor Tammi Fisher and Kalispell City Council FROM: Charles Harball, City Attorney Tel 406.758.7709 Fax 406.758.7771 charball@kalispell.com SUBJECT: Resolution No. 5527 — a Resolution of Necessity Finding Existence of Blighted Conditions and Referring Consideration to the Kalispell City Planning Board MIEETING DATE: September 6, 2011 — Regular Council Meeting BACKGROUND: On December 5, 1994, the Kalispell City Council adopted the West Side Urban Renewal District Plan as an amendment to the Kalispell City County Master Plan [the Plan]. The Plan adopted a strategy to be followed preparing for redevelopment in the area. That Plan contained goals necessary for the implementation of the strategy that have been met as well as goals that have not been met. The Kalispell Planning and Economic and Community Development Departments have evaluated the social, fiscal and physical aspects of the area within the Plan as well as contiguous areas and have submitted report KRD-11-1, attached hereto, that identifies blighted conditions that exist in the contiguous areas of the West Side Urban Renewal District which restrict the full attainment of the Plan goals. The factors cited within the report involving land use, transportation and safety indicate a relationship of factors contributing to the blighting conditions which exist in the area under § 7-15-4206, MCA. It is the recommendation of city staff that incorporation of the property described in Exhibit "A" into the West Side Urban Renewal District will enable the City to consider projects and incentives to encourage the orderly private redevelopment of commercial and residential properties in the area. The Montana Urban Renewal Law states that no municipality may exercise any of the powers conferred therein until after its local governing body shall first have adopted a Resolution of Necessity. RECOMMENDATION: That City Council gives consideration to and pass Resolution No. 5527. Resolution of Necessity Memorandum August 31, 2011 Page - 2 FISCAL IMPACTS: Passing the Resolution of Necessity makes no fiscal commitments but refers the matter to the Kalispell City Planning Board for further consideration and recommendations to the City Council. Respectfully submitted, 1117 Char es Harball, City Attorney Office of City Attorney City of Kalispell i WHEREAS, on December 5, 1994, the Kalispell City Council adopted the West Side Urban Renewal District Plan as an amendment to the Kalispell City County Master Plan; and WHEREAS, said West Side Urban Renewal District Plan (hereinafter Plan) adopted a strategy to be followed preparing for redevelopment in the area; and WHEREAS, the Plan contained goals necessary for the implementation of the strategy that have been met as well as goals that have not been met; and WHEREAS, the Kalispell Planning and Economic and Community Development Departments evaluated the social, fiscal and physical aspects of the area within the Plan as well as contiguous areas and have submitted a report KRD-11-1, incorporated herein by reference, that identifies blighted conditions that exist in the contiguous areas of the West Side Urban Renewal District which restrict the full attainment of the Plan goals; and WHEREAS, the factors cited within the report involving land use, transportation and safety indicate a relationship of factors contributing to the blighting conditions which exist in the area under § 7-15-4206, MCA; and WHEREAS, the Plan, together with related documents, are available for public review at the offices of the City of Kalispell; and WHEREAS, the property described is an integral part of the City's transportation plan; and WHEREAS, incorporation of the property described in Exhibit "A" into the West Side Urban Renewal District will enable the City to consider projects and incentives to encourage the orderly private redevelopment of commercial and residential properties in the area; and WHEREAS, modification of the urban renewal district incorporating the contiguous blighted areas may result in an Ordinance with: 1) a modified urban renewal plan conforming to the current Growth Policy or parts thereof for the City of Kalispell as a whole; and 2) a modified urban renewal plan affording maximum opportunity, consistent with the sound needs of the City of Kalispell as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; and 3) a sound and adequate financial program for financing of projects to be identified in the plan. WHEREAS, it is the desire of the City of Kalispell to exercise the powers conferred by the Montana Urban Renewal Law; and WHEREAS, the Montana Urban Renewal Law states that no municipality may exercise any of the powers conferred therein until after its local governing body shall have adopted a Resolution of Necessity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY O SECTION I. That a blighted area exists in the City of Kalispell, specifically the area contiguous to the boundaries of the West Side Urban Renewal District described in Exhibit "A". The City Council specifically finds that there exists within this area: i) Defective or inadequate street layout; and ii) Deterioration of site; and iii) The existence of conditions that endanger life or property by fire or other causes. SECTION IL That the West Side Urban Renewal District boundaries should be considered for modification so that the rehabilitation, rede- velopment, or combination thereof, of such additional area that is necessary in the interest of the public health, safety, morals, or welfare of the residents of the City of Kalispell may be undertaken. SECTION III. That the Kalispell Planning Department is directed to bring this matter before the Kalispell City Planning and Zoning Board which shall gather further evidence and provide such recommendations to the City Council as it deems appropriate regarding the modification of the boundaries of the West Side Urban Renewal District as well as any modifications to the West Side Urban Renewal Plan with specific consideration for the impacts upon the county and school district. SECTION IV. That the City Clerk is directed to provide such notices to the public and other taxing entities as prescribed by the Montana Urban Renewal Statutes. SECTION V. That this resolution shall take effect immediately upon passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 6TH DAY OF SEPTEMBER, 2011. Tammi Fisher ATTEST: Mayor Theresa White City Clerk Beginning at the intersection of Meridian Road and Highway 93 in Section 6, Township 28 North, Range 21 West and heading Southeast along Highway 93 to its intersection with Colorado Street. Then heading West along Colorado Street approximately 700 feet to the Eastern boundary of Assessor's Tract 5C, then South along the Eastern boundary of said parcel and Seventh Avenue W.N. a distance of approximately 2,625 feet to its intersection with Highway 2 West, then continuing South across Highway 2 West and South along Seventh Avenue West a distance of approximately 1,725 feet to its intersection with First Street West. Then West along First Street West a distance of approximately 1,050 feet to the Eastern boundary of Assessor's Tract 5DDB, then along the Southern boundary of said tract and Assessor's Tract 5DDA to Meridian Road. Then North along Meridian Road to the Northern boundary of the Burlington Northern railroad easement. Then West along the easement for a distance of approximately 350 feet; then North along the Eastern boundary of Assessor's Tract 14A approximately 175 feet, then East approximately 50 feet; then North and West following the boundaries of the city limits to Highway 2 West. From Highway 2 West, following the Westerly most city limits to Three Mile Drive. Then East along Three Mile Drive to its intersection with Northwest Lane. Then heading North along Northwest Lane to the Northwest corner of Lot 29, Block 1, Northwest Tract. Then along the Northern boundary of Lot 29 and approximately 200 feet along the Northern boundary of Lot 13, Block 1 of Northwest Tracts; then North along the Eastern boundary of Lot 3, Block 1, Northridge Heights Subdivision to Parkway Drive. Then North along Parkway Drive a distance of approximately 950 feet to the Northwest corner of Lot 9, Block 2, Northridge Heights Subdivision, then East along the Northern boundary of said parcel to its intersection with Highway 93 North, then South along Highway 93 North to Meridian Road and the point of beginning. onta na ECON(—)NAIC i1E VFi 0PNIEN F City of Kalispell c/o Theresa White City Clerk City of Kalispell 2011" Avenue East Kalispell, Montana Please distribute copies of this letter to the Kalispell City Council members the week of August 29`n The board members of Montana West Economic Development Corporation requested I provide a statement to you all concerning the Westside TIF. The opportunity to expand the TIF is embraced by the majority of the board. The ultimate goal of removing the tracks is believed by many to provide the long needed redevelopment in Kalispell. Many of the buildings and sites along the railroad tracks are "hamstrung" and cannot sell for reinvestment. And the tracks serve little purpose beyond providing rail access to two businesses. This is not to say those businesses utilizing rail are not important, because they are, but our member support the city proposing a vision to update the infrastructure and open access to redevelopment. We believe the redevelopment will bring new investment by increasing the tax base, new jobs, will add to the amenities of the community and will capitalize on positive momentum in a recessionary economy. While there is no project to attach the expansion to perhaps there are options that exist that need further exploration. If those options become less possible then you have decisions that have to be made when that time presents itself in March. I have been informed the TIF funds could be set aside in a fund and continued to be used as revolving loan funds for projects on the Westside in the future. Many economists predict the national and local recession will persist. With hard times comes the absolute need for forward thinking. Otherwise waiting for "something' to happen without enabling it to happen will most likely lead to nothing happening. We appreciate your service to the City of Kalispell. Thank you for reading this letter and giving the TIF opportunities consideration. p:406.257.7711 R f: 406.257.7772 c 314 Main Street . Kalispell, MT 59901 a DoBusinesslnMontanaxom AMENDMENT TO THE WEST SIDE URBAN RENEWAL PLAN BOUNDARY KALISPELL PLANNING r = DEPARTMENT STAFF REPORT D A report to the Kalispell City Council regarding the expansion of the West Side Urban Renewal Plan boundary. A meeting on this matter has been scheduled before the Kalispell City Council at their regular meeting on September 6, 2011. This report includes findings of fact for the city council to consider in determining whether to adopt a Resolution of Necessity for the potential expansion of the West Side Urban Renewal Plan boundary. An initial review of the potential expansion of the boundaries has been completed by the city's Urban Renewal Agency (URA) . The URA is recommending a boundary expansion as illustrated in the attached map labeled Option 2 and discussed in section II below. Expanding the West Side Urban Renewal Plan boundary will enable the city council to consider projects and incentives to encourage the orderly private redevelopment of commercial and residential properties in the area. The findings of fact detailed in section III of this report provide the council with considerations for the existence of blight in the proposed expansion area. The conditions of blight discussed include inadequate street connectivity, lack of sidewalks, site issues at the county fairgrounds, impact of the railroad tracks, aged condition of water and sewer lines, vacant lots and buildings and brownfield sites with the proposed expansion area to the West Side Urban Renewal Plan boundary. Several issues detailed in section III relate directly to the issues and goals covered in the West Side Urban Renewal Plan. The amended boundaries are being brought forward because it becomes apparent that the original urban renewal plan goals cannot be fully achieved without amending the boundaries of the plan to address blighting issues that impact the current plan area. The county fairgrounds are the largest single land use on the west side of Kalispell. Yet it exists as an aged, under-utilized facility, surrounded by the existing plan boundaries on three sides. Because it is a significant land use in the area, its presence dictates to a great degree the character and future viability of the plan area. The fairgrounds is located at a gateway entrance to our community yet its very condition does little to move the community forward and conversely could well be holding back the future viability of the area. Secondly the blighting issues that exist along the railroad property from Meridian Road to 7th Avenue cannot be fully addressed unless a much more 1 holistic view of the entire railroad corridor is addressed. The tracks themselves are in a state of disrepair, there is no incentive for new rail users and there is a disincentive for non -rail development because of the presence of the track, limited street access, small parcel ownership and the mixed residential - commercial and industrial land use pattern. Both of these issues will hinder the full realization of the goals in the West Side Urban Renewal Plan. A more detailed discussion on the fairgrounds and tracks is in section III of this report. Other issues, while not directly related to the goals and issues in the West Side Urban Renewal Plan will help to achieve the overall goals of the plan, if they are addressed. The planning department is recommending the city council consider the URA's comments in the potential boundary expansion and consider adopting the Resolution of Necessity and forward the urban renewal plan boundary expansion request to the planning board. By forwarding the plan boundary expansion request to the planning board the city council will take the initial step in the potential modification of the plan boundary. Adopting the Resolution of Necessity will not change or modify the current West Side Urban Renewal Plan or its boundary. It is instead intended to make a finding that blight exists in the expanded area and direct the issue to the planning board for review and a recommendation. Prior to the planning board's meeting the planning department will notify the county and School District #5 for comments. The property owners within the proposed expansion area will be notified and a notice of the proposed expansion and planning board meeting will be published in the Daily Inter Lake. If the city council adopts the Resolution of Necessity and forwards the proposed expansion area boundary to the planning board, the tentative timeline of the review and approval process would be: September 6 - Council sends the proposed expansion plans to the planning board September 12 - Staff mails out notices to county, school district and property owners within proposed expansion area boundary September - Staff will hold a series of neighborhood meetings to 20-22 discuss the proposed plan boundary amendment and any issues the public may have prior to the planning board review September 27 - Planning board meeting to review plan 2 September 28 - Planning board sends recommendation to council October 3 - Council sets public hearing October 4 - 10 day notice to property owners within proposed expansion area boundary mailed out and a notice posted in the Daily Inter Lake once a week for two consecutive weeks prior to the hearing October 17 - Council holds public hearing November 7 - Council considers first reading of ordinance November 21 - Second reading of ordinance (if first reading is approved) December 21 - Effective date of the ordinance (thirty days after second reading) In 1994 the city council adopted a Resolution of Intent to adopt a neighborhood plan amendment to the Kalispell City -County Master Plan. The neighborhood plan was the North Meridian Neighborhood Plan. Then, the city council passed Resolution No. 1259 on March 17, 1997, to create the West Side Urban Renewal Plan. The plan was created based on the North Meridian Neighborhood Plan area and the West Side Urban Renewal Plan. Both of these plans were used to establish the West Side Tax Increment Finance District (TIF) boundaries and outline potential projects within the area. Some of the projects outlined in the urban renewal plans included the redevelopment of the Gateway West Mall, generating tax revenues to facilitate the reconstruction of Meridian Road and the general upgrading of roadways, drainage systems, and buildings in the area. The current boundaries of the West Side Urban Renewal Plan are shown on the attached map titled West Side Urban Renewal Plan. On August 24th the URA met to discuss options for the redistricting of the Westside Urban Renewal Plan. The URA considered three redistricting options. The three options are attached to this report with a general description of the proposed boundaries for each of the options as follows: K1 11I V � � 3 z� a N� S LIBERTY ST DWY W ARIZONA ST WCOLORADI KING CT NO NAIIga Y JUBILEE CT TETON 8T LAMBERT CT W.WVOmINGST CI GLACIER ST NO NAME Q1.z '� TWO MILE DR O � o = J V C Q O ® Option 1 - Expand the boundaries to include the county fairgrounds property and move the eastern plan boundary east to 5th Avenue WN. The northern boundary would be along West Washington Street and the southern boundary would be along 1st Street West. ® Option 2 - Expand the boundaries to include the county fairgrounds property and move the eastern plan boundary east to the current city limits. The northern boundary would be along Washington Street, both the east and west sides, and the southern boundary would generally follow 1st Street, both the east and west sides. Option 3 - Expand the boundaries to include the county fairgrounds property and move the eastern plan boundary east to the current city limits. The northern boundary would be along Idaho Street (US Highway 2) both east and west sides and the southern boundary would be along Center Street, both the east and west sides which creates a more contained boundary along the railroad line. Based on discussions at the meeting the URA members recommended expansion of the West Side Urban Renewal Plan to the boundaries shown on option 2. Option 2 provides the greatest boundary expansion under the three options presented. Option 2 was recommended based on the following: This option provides a wide range of potential projects for consideration of the use of TIF funds and the members did not want to prejudge any specific project. However, each potential project would require further evaluation and discussion. ® Significant data collection and field work has already been completed by the planning department and community development department in the entire area of option 2. One outcome of this work includes comments received by the public on issues that need to be addressed in this area. These issues could be considered for TIF funds in the future. In addition to recommending option 2 the members also recommended emphasizing the following if the West Side TIF is expanded: • Leveraging TIF expenditures and bonds with other funding sources • Prioritizing TIF funds for public/private investments first, with the investment co-operation of public agencies second ® Prioritize projects which would expand the tax base 0 Section 7-15-4210 Montana Code Annotated (MCA) requires cities to adopt a resolution of necessity prior to amending the urban renewal plan boundary. The resolution must find that: 1) one or more blighted areas exist; and 2) the rehabilitation, redevelopment, or a combination thereof of such area or areas is necessary in the interest of public health, safety, morals, or welfare of the residents of the city. Section 7-15-4206(2) MCA defines "Blighted area" as follows: Blighted area means an area that is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime, that substantially impairs or arrests the sound growth of the city or its environs, that retards the provision of housing accommodations, or that constitutes an economic or social liability or is detrimental or constitutes a menace to the public health, safety, welfare, and morals in its present condition and use. The definition provides 14 reasons, individual or combined with other reasons listed, to further define the above stated meaning of a blighted area. Among the 14 reasons are: ® Defective or inadequate street layout (Sec. 7-15-4206(2)(e) MCA) Deterioration of site (Sec. 7-15-4206(2)(i) MCA) The existence of conditions that endanger life or property by fire or other causes (Sec. 7-15-4206(2)(n) MCA) Based on the definition of a blighted area, the proposed expansion area for the West Side Urban Renewal Plan boundary exhibits the following: Street Connectivity The proposed boundary area addition is generally rectangular in shape with a linear distance of just over a mile from east to west. The south boundary line of the proposed expansion area is 1 st Street and the north boundary line is Washington Street. The proposed expansion area includes businesses just outside the north end of downtown, along Main Street, and along Idaho Street (US Highway 2). The intersection of Main Street and Idaho Street is the busiest intersection in the Flathead Valley. Besides the traffic associated with the intersection of Main Street and Idaho, many other vehicles enter or travel through this area. k The number of north/ south avenues or streets in the proposed expansion area is limited to five. The five north/ south streets include 5tb Avenue West, Main Street, 1st Avenue East, 3rd Avenue East and 4th Avenue East. These five crossings are the sole way to move north and south within the proposed expansion area. If you take into account N. Meridian Road, currently within the West Side Urban Renewal Plan boundary, there are a total of six north/ south connections along a 1.3 mile east to west section of the city. By contrast the typical lot and block configuration developed north and south of the existing and proposed urban renewal plan boundary has between 16 and 18 north/ south connections. Additionally from 5t' Avenue West to Meridian Road is a distance of almost 2,400 feet with no cross connection. The lack of north/south street connections in this area funnels traffic into six streets creating traffic congestion at the intersections and unduly burdening these particular streets. Constructing additional north/ south streets in the proposed expansion area will reduce congestion at existing intersections and provide increased vehicle, pedestrian and bicycle mobility in the area. Additional streets would also provide greater access to lots in the area, which are currently land locked or have severe access limitations, allowing for more redevelopment opportunities. The Kalispell Area Transportation Plan (2006 Update), under the Executive Summary, states that several major travel corridors will be pushed to their limits in the coming years. The major travel corridors experiencing heavy traffic volumes are US Highway 2 (Idaho Street), US Highway 93 (Main Street), Reserve Drive and Meridian Road. Three out of the four major travel corridors are within the existing urban renewal plan boundary or are within the proposed expanded urban renewal plan boundary. Keeping future development in the urban renewal plan area from further impacting these travel corridors will require alternative street connections in this area. Creating additional north/ south street connections will continue the existing street pattern providing multiple options to travel in and out of this area. This improved street system will help to reduce vehicle traffic on Meridian Road and Idaho Street, two of the impacted travel corridors cited in the transportation plan. These two streets are within the existing West Side Urban Renewal Plan boundary. An improved street system is one of the goals noted in the current West Side Urban Renewal Plan. For properties south of US Highway 2, the West Side Urban Renewal Plan encourages the construction of additional access roads to better serve underutilized industrial land. rel Lack of Sidewalks Planning department staff has conducted a sidewalk survey in the proposed urban renewal expansion area. The results of this survey show a significant lack of continuous sidewalk through the entire area. The lack of sidewalks is noted along West Center Street, First Street West and streets and avenues north and south of the Center Mall. Other avenues and streets within the proposed expansion were found to have only sidewalks on one side of the street or large gaps in the sidewalk from block to block. This is the case around the county fairgrounds where sidewalks are present on Meridian Road west of the fairgrounds, but are lacking on streets located north, south and east of the fairgrounds property. Additionally the fairgrounds, which extends over 2,000 feet (6 city blocks or 0.4 of a mile) serves as a barrier to through pedestrian travel. This lack of sidewalks in an area that has a variety of business, some of which serve the local residents in the area, makes it difficult for pedestrians, especially the elderly and young, to navigate the streets in this neighborhood. The lack of sidewalks generally discourages walking in an area of the city where walking should be encouraged. One of the goals in the existing West Side Urban Renewal Plan is to create a street system that can accommodate increases in traffic safely. To achieve this, the plan calls for more sidewalks and boulevards along all major streets and roads. Expanding the urban renewal plan boundary and continuing to improve the streets within the expanded plan area will aid in achieving this goal. Site Deterioration A. The Flathead County Fairgrounds is an approximately 63 acre site with the existing West Side Urban Renewal Plan boundary on three sides of the property (north, south and west). The current condition of the fairgrounds property is less than desirable given its gateway location within the city and its status within the surrounding development. The main issues with the fairgrounds include the following: ® The majority of the fairgrounds property has chain link fencing topped with three strands of barb wire along the perimeter of the property. The outward appearance is more prison like giving the impression of excluding the community from the grounds especially the residential neighborhood immediately east of the fairgrounds. ® The majority of stables, grandstand, offices and smaller venue buildings are over 50-years old. The age of some of the buildings 7 and quality of construction has led to a quicker deterioration of the structures and now require more than general maintenance to have them visually appealing to the public. The parking lots are gravel or dirt with the exception of the north parking lot, across West Wyoming Street, which is grass throughout most of the year turning to mud or dust during fair time. These parking lots do not meet city parking lot standards which require the lots to be paved. Paving the lots prevents dust issues in the immediate neighborhood and tracking mud onto adjacent streets. A specific issue defined in the West Side Urban Renewal Plan is that the present urbanized land use pattern in the area incorporates a haphazard and incompatible mix of uses. The identified goal to address this issue is to set a pattern of land use that incorporates sensitivity to neighboring uses. The city council has adhered to this goal in the past through the adoption of the Kalispell Growth Policy and zone changes in the area, mainly along North Meridian Road. The zone changes have reflected the land use designations shown on the Kalispell Growth Policy Future Land Use Map and have taken into account the surrounding residential and commercial uses in the area. The goal of incorporating sensitivity to neighboring uses can be further implemented by including the fairgrounds property in the West Side Urban Renewal Plan boundary and working on the three issues listed above. This in turn will achieve a greater cohesiveness between the fairgrounds and surrounding commercial and residential development. B. The railroad tracks run east to west through the center of Kalispell and serve two businesses on the west side of town. Land north and south of the tracks was once the industrial center of the community. Lumber mills, a cherry warehouse and numerous gas and oil refineries were once located adjacent to or within a block of the tracks. These businesses, which numbered well above 50 in the past, all needed the railroad to operate. However, since the 1970's the land along the tracks has been slowly changing from industrial to commercial and residential uses. With this change in land use and limited use of the railroad tracks, the tracks are becoming a hindrance for further development of the area. Because of this hindrance, the tracks can be viewed as a blighting influence to the area based on the following: Tracks would indicate this area is still heavily industrial when the opposite is true. :a • The small size of many of the lots abutting the railroad tracks makes it difficult to introduce new industrial uses that could take advantage of the tracks. • The tracks have created many dead end streets in this area and have made vehicle and pedestrian access in and around the area along the tracks difficult. ® The change in land uses from industrial to commercial and residential make the need for the tracks obsolete. • The overall condition of the tracks is deplorable except around the center mall where the tracks were realigned approximately 25 years ago. • Safety factor with trains on poor tracks navigating through one of the busier areas of the city. The southern area of the existing West Side Urban Renewal Plan includes the tracks and former industrial land. This area only constitutes about 1 / 5 of the overall tracks located within the city limits and only one of the two current track users. Taking a holistic view of the issues caused by the tracks inside the West Side Urban Renewal Plan and outside of the plan boundaries can achieve the desired redevelopment of this entire area. This is why the plan boundary should be expanded east to the eastern city limits. Water and Sewer lines Information on water and sewer lines from the public works department shows the vast majority of the proposed expansion area is served by water and sewer lines. However, the major issue with these lines is age and additionally for the water lines is the presence of dead end lines and a lack of a looping water system. Water lines located along Washington Street and many of the avenues east and west of Main Street were installed between 1925 and 1930. These lines were constructed out of cast iron and concrete. The city's Water Facility Plan Update, chapter 6 Recommendations and the city's capital improvement plan, recommends that approximately 2% of the system's total water mains be replaced each year. The goal for this replacement plan is to achieve a 50-year turnover of existing pipes. The current water lines are in excess of 80 years old. Though water is still being delivered to the businesses and homes in this area maintenance costs are increasing, untimely breaks are occurring and the future costs and impacts to the service will only worsen. In addition to older water main lines located in this area, lines north of Center Street tend to dead end at the railroad tracks. The water in these N dead end lines can become stagnant unless flushed. Creating a looped water system either with adjacent lines or lines on the other side of the railroad tracks alleviates the need to flush the lines and improves the fire flow within the pipes for the area. The majority of sewer lines in the proposed expansion plan area are clay lines. The exact age of the lines is not known however they were most likely installed around the time when water lines were installed, between 1925 and 1930. The city has slip lined sections of the clay lines which seals the lines and gives additional longevity to the life of the line. However, not all of the lines in this area have been slip lined and certain older lines may be difficult to slip line because of jagged line configurations or dips in the line. The other issue prevalent in the older clay lines is water infiltration into the lines. Groundwater entering these sewer lines increases the volume of water needing to be treated at the city's sewer plant. This increase can be substantial after heavy rains. Over the coming years as the city grows and the capacity of the sewer plant increases the infiltration of groundwater will further impact the plants ability to accept and treat the raw sewage it was built for. Vacant lots/ buildings A survey of the proposed expansion area shows 19 acres of vacant land and approximately 19 lots with vacant buildings or otherwise not being used for commercial or industrial uses. The number of buildings vacant is approximate and is based on a visual survey of the building, whether there appeared to be a business present in the building and/or if the building was being advertised for lease or sale. The vacant lots and buildings represent underutilized properties in an area located centrally in the city. These underutilized lots result in depressed values for the lot itself and potentially surrounding lots. The vacant buildings are typically metal sided, older buildings in need of maintenance and repairs. These buildings, if not maintained, begin to detract from the neighborhood and give the impression that the area is run down or otherwise not to be invested in. The vacant lots also give an outward appearance of an abandoned area of the city. This may lead to further disincentive to invest in the immediate area. Brownfield sites The term "brownfield site" means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or MI potential presence of a hazardous substance, pollutant, or contaminant. Contaminants can include oil or gas found in the soil and placed there through a leaking underground storage tank or an historical use which dumped contaminant material on site. The presence of hazardous materials can require additional costs to clean the site up prior to new development or redevelopment of the property and this serves as a detriment to redevelopment. The proposed expansion area recommended for inclusion in the West Side Urban Renewal Plan boundary has a number of identified sites where leaking underground tanks have been found. The Department of Environmental Quality has identified 26 sites within or immediately adjacent to the proposed expansion area. There are five sites within the existing West Side Urban Renewal Plan boundary. There may be more potential brownfield sites based on the presence of the railroad tracks and this area historically being used for industrial uses such as oil refineries and fuel storage. The known leaking storage tank sites and the history of industrial uses in this area have lead to perceptions in the community that many, if not all, properties within the proposed expansion area are contaminated. This may or may not be the case however, this perception continues and may play a role in the unwillingness of property owners or developers to invest in redevelopment or new development in this area. This can lead to further deterioration of buildings and property and reluctance to reinvest. Staff would recommend the Kalispell City Council adopt staff report #KRD 11-1, approve the Resolution of Necessity and forward the proposed amendment to the West Side Urban Renewal Plan boundary to the Kalispell Planning Board for review and a recommendation to the council. 11 oz Z 0 Rt Ij 0 Ll Ll F"o-CA i