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06. Resolution 5489 - Extending Reduction on Transportation Impact Feesyam Tel 406.758.7709 Fax 406.758.7771 charball @kalispell.com low, XWWP�'. TO: Mayor Tammi Fisher and Kalispell City Council FROMI: Charles Harball, City Attorney Jane Howington, City Manager SUBJECT.0 Resolution No. 5489 — a Resolution to Extend for One Year the 75% Limit on Transportation Impact Fees AIEETING DATE: March 21, 2011 — Regular Council Meeting BACKGROUND: The Kalispell City Council passed Resolution No. 5346 establishing the City of Kalispell Transportation Impact Fees, which became effective on April 1, 2009. By means of that resolution, the Council resolved that "the transportation impact fees established by this resolution shall be imposed at the rate of 75% of the scheduled fee for any new construction that applies for a building permit within 2 years of the effective date of this resolution." The original purpose of establishing the transportation impact fee at 75% of the scheduled fee was to avoid discouraging private investment in the City. The economic environment of Flathead County and the City of Kalispell continues to show no signs of imminent recovery from the nationwide recession. Therefore it may be in the best interest of the City of Kalispell, its citizens and taxpayers, that the current reduced transportation impact fee schedule be continued for an additional year. RECONEVEENDATION: That City Council give consideration to and pass Resolution No. 5489. FISCAL EWPACTS: Any encouragement of private development at this point of the economic recovery may be viewed as 'improving the fiscal forecast of the City. Respectfully submitted, Charles Farb afi, City Attorney Jane Horwington, City Man�� RESOLUTION TO I: SECTION ; OF i, is N NO, 5346 THAT EXTENDESTABLISHED THE CITY OF KALISPELL TRANSPORTATION IMPACT FEES TO THE INITIAL TWO YEAR LIMITATIONAOF i 1 FEE UOR ONE 1 1 i YEAR. WHEREAS, the Kalispell City Council passed Resolution No. 5346 establishing the City of Kalispell Transportation Impact Fees, which became effective on April 1, 2009; and WHEREAS, the Kalispell City Council, by means of Resolution No. 5346 resolved that `the transportation impact fees established by this resolution shall be unposed at the rate of 75% of the scheduled fee for any new construction that applies for a building permit within 2 years of the effective date of this resolution;" and WHEREAS, the economic environment of Flathead County and the City of Kalispell continues to show no signs of imminent recovery from the nationwide recession; and WHEREAS, the original purpose of establishing the transportation impact fee at 75% of the scheduled fee was to avoid discouraging private investment in the City; and WHEREAS, the Kalispell City Council therefore finds that it is in the best interest of the City of Kalispell, its citizens and taxpayers, that the current reduced transportation impact fee schedule be continued for an additional year. NOW THEREFORE, COUNCIL O KALISPELL -4 FOLLOWS: SECTION I. That the City of Kalispell transportation impact fees established by Resolution No. 5346 shall be imposed at the rate of 75% of the scheduled fee for any new construction that applies for a building permit until April 1, 2012, at which time the rate shall be 100% of the scheduled fee. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF I ALISPELL, THIS 21 st DAY OF MARCH, 2011. Tammi Fisher Mayor .ATTEST: Theresa White City Clerk