Summary of Financing/Scheduling AlternativesTHE KALISPELL CITY AIRPORT/ATHLETIC
REDEVELOPMENT PLAN - 1996
Summary of Financing/Scheduling Alternatives, Draft date:
Kakvl. •-
Based on the assumptions contained in THE KALISPELL CITY AIRPORT/ATHLETIC COMPLEX
REDEVELOPMENT PLAN ANALYSIS, dated: January 23, 1996, the following Financing
and Scheduling Alternatives are offered for discussion purposes. The reviewer must consider
the cost estimates in the PLAN preliminary and more than likely low according to a recent
review by an FAA engineer. Also, subsequent to the PLAN's development, the City has
authorized development of an Airport Layout Plan in hopes of including it in FAA's NATIONAL
PLAN OF INTEGRATED AIRPORT SYSTEMS (NPIAS). The Layout Plan will identify additional
FAA requirements for improvements not included in the original cost estimate.
TOTAL COST OF IMPROVEMENTS IN PLAN (p.12) ($1,000,896)
TOTAL COST - 22 FIELD ATHLETIC COMPLEX (827,269)
SIGNALIZTION COST - 3rd AVE.E/U.S. Hwy. 93 (100,000)
TOTAL PROJECT COST ($1,928,165)
Contingency - 10.00% ($192,817)
TOTAL ($2,120,982)
2. HOW DOES THE CITY FUND THE ($2,120,982) COST OF THE PROJECT?
Because the project will take at least 36 months to implement, the City will have to
borrow money, issue warrants, or secure other short term financing. Thus, it must
consider a reasonable debt coverage ratio to be included in a financing assumption.
A coverage ratio of: 25% is considered reasonable, thus, up to ($2,651,227)
may be required to assure adequate funding available for the project even before the
Airport Layout Plan is complete ---possibly triggering additional FAA requirements.
KCA/A - PLAN 19-Apr-96
3. SOURCE OF FUNDS
A. YEAR 1 - CREDITS SURPLUS LAND SALE (p.31)
PARCEL # AREA/ACRE
PARCEL 12 17.028
PARCEL 11 4.1
TOTAL LAND SALE PROCEEDS
B. TAX INCREMENT (EXAMPLE)
NOTE:
SF $/SF SALE PRICE
741,740 $1.70 1,260,957
178,596 $4.20 750,103
0
$2,011,061
Assuming PARCEL 11 is sold this year, it may be possible for the full value of its
private redevelopment to be assessed on the tax roles by January 1, 1998.
Portions of PARCEL 12 will be reflected in 1998 and full value by 1 /1 /1999.
Because of the timing uncertainty and other issues, the following does not
attempt to forecast when the actual Tax Increment would be available for
segregation by the City.
Parcel 11 could accomodate a grocery store, motel, restaurant, or any combination o
uses. Minimally, the City could attract a use similar in value to Tidyman's, valued at
$4,174,823 Total Fair Market Value. A Motel/Restaurant would be worth more.
MARKET VALUE x 0.0386 = TAXABLE VALUE x .498078 = TAX INCREMENT
IMPROVEMENT REAL PERSONAL TOTAL
GROCERY 2,244,000 1,930,823 $4,174,823
TAXABLE X 0.0386 86,618 74,530 $161,148
MILL LEVY 0.498078 43,143 37,122
Parcel 12 could accomodate at least $6,000,000 of additional private
redevelopment with a potential tax increment yield of:
RETAIL/MOTEL 4,000,000 2,000,000 $6,000,000
TAXABLE X 0.0386 154,400 77,200 $231,600
MILL LEVY 0.498078 76,903 38,452
CONCLUSION: IT IS REASONABLE TO ASSUME THAT OVER THE NEXT FEW
YEARS THE CITY COULD ENCOURAGE THE PRIVATE REDEVELOPMENT OF LAN
GENERATING IN ANNUAL TAX INCREMENT AVAILABLE TO REPAY
MONEY BORROWED TO FINANCE THE PROJECT.
Page 2
OTIM.T.-W
TOTAL PLAN/PROJECT COST OF IMPLEMENTATION
I OIL010:11 & 1:4 iik 1100i4ell V ffffW1-4-*yff4- ilii iiiiilll q� l�� �g�
III ii 11 !1 11,
(1998 - 2002)
PROJECT FUND BALANCE 2002
($2,651,227)
$2,011,061
($70,400)
Huffla
The information presented above is for discussion purposes only to illustrate how the financing plan
presented in the KALSIPELL CITY AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN
ANALYSIS will provide the money required to implement the plan. Between now and the required
Public Hearing, City Council recommendations may be incorporated into the Plan, the Airport Layou
Plan will be completed and private redeveloper interest can be confirmed. Also, negotiations with
State Lands (DNRC) will result in more accurate relocation cost estimates.