5. Resolution 5480 - Amendment - Tax Increment Financing Guidelines;:.
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charbalI @kalispetl.com
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Mayor Tam mi Fisher
and. Kalispell City Council
Charles Harball, City Attorney
Jane Howington., City Manager
Resolution No.5480 — a Resolution Clarifying the Guidelines of the
City regarding the Utilization of Tax Increment Financing
February 7, 2011-- regular Council :Meeting
BACKGROUND: The Urban. Renewal Agency (URA) has requested that the City Council
consider clarifying the guidelines that it previously issued regarding the use of tax increment
funds to pay special improvement district assessments. Currently the guidelines simply follow
the statutory eligibility guidelines to do permit the use of tax increment for public improvements
within any tax increment district and establishes the eligibility of businesses that locate or
expand within the city that are of a. manufacturing, technological, office, professional or technical
service nature to receive increment benefits in an industrial or technology tax increment district.
Prior to the establishment of the URA. the Council approved a developer's agreement with the
investor that constructed the Fed Ex facility in old. School Station. This agreement approved the
use of tax increment created by the FedEx facility property to be applied toward the annual SID
assessments against that property. The URA does not question the authority or discretion of the
Council to enter into that agreement. But for the reason that such use of increment is not
specifically stated within the existing guidelines, the URA seeks this clarification in anticipation
of receiving future applications from, investors seeping this benefit.
RECOMMENDATION: That City Council give consideration to and pass Resolution No.
5480. The Resolution shall become effective immediately.
FI C. I ACTS: There are no anticipated fiscal impacts to the City from this proposed
resolution.
Respectfully submitted,
'e�
Charles Harball, City attorney
ane Howington, City Ma ger
RESOLUTION
GUIDELINES
: ::"::. OF THE CITY ; .. a':, REGARDING
UTILIZATION �'
IMPROVEMENTSTHE
THAT HAVE PUBLIC 1 THROUGH SPECIAL IMPROVEMENT
!1 ISTRICT DEBT,
WHEREAS, the City of Kalispell has established a number of tax increment districts pursuant to its
authority and the terms of state law; and
WHEREAS, the City of Kalispell has also established, pursuant to its authority and the terms of state law,
a number of special improvement districts for the purpose of funding certain public
improvements; and
WHEREAS, a special improvement district on which public improvements were constructed and financed
through city debt, secured by and assessed to the properties directly benefitted by such public
improvements may also be within a tax increment district; and
WHEREAS, the existing tax increment distribution guidelines established by the Council at Resolution No.
4 609 and Resolution No. 5262 specifically enumerate the statutorily permissible uses of tax
increment that includes the use of such funds for public improvements and establishes the
eligibility of businesses that locate or expand within the city that are of a manufacturing,
technological, office, professional or technical service nature to receive increment benefits in
an industrial or technology tax increment district; and
WHEREAS, the Kalispell City Council hereby finds that in instances in which the City establishes a
special improvement district and issues bonds for public improvements and also establishes a
tax increment district over the same area, it is appropriate that tax increment benefits be
considered for otherwise eligible businesses electing to locate and make private investment
within the districts for the purposes of paying the special improvement district assessments of
that district.
NOW THEREFORE, BE IT RESOLVED BY THE CII"`Y COUNCIL OF THE CITY OF K.AL.ISPELL AS
FOLLOWS:
SECTION I. That the tax increment distribution guidelines for the City of Kalispell shall. include
the allowable use of tax increment to be the payment of special improvement district
assessments on property owned within such special improvement district and within
such tax increment district for the benefit of a property owner of an eligible business
electing to locate and make private investment within the districts.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY
OF KALIS PELL, THIS 7TH DAY OF FEB R.UARY, 2011.
ATTEST:
Theresa white
City Clerk
Tarnmi Fisher
Mayor