05. West Side TIF Request - Gateway Community Center201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
City of Kalispell * www.kalispell.com
Office of Community & Economic Development
MEMORANDUM
TO: Mayor Tammi Fisher
And Kalispell City Council
FROM: Jane Howington, City Manager
Wade Eider, Revolving Loan Fund Manager
SUBJECT: Gateway Community Center Request for West Side TIF.
MEETING DATE: November 1, 2010 -- Regular Council Meeting.
BACKGROUND: The Urban Renewal Agency (URA) met on September 29, 2010 to
consider a request by Gateway Community Center's from the City of Kalispell's West
Side Tax Increment Financing (TIF) district. The request was broke into 2 parts; Request
# I was in the amount of $322,093 and request # 2 was in the amount of $273,765 for a
total of $595,858. Funds were requested for improvements to the property located at 1203
US Highway 2 West, Kalispell, MT 59901.
Request # 1 was for improvements to the Gateway Community Center and broke out as
follows: $35,000 Phone / Security System; $228,685 Carpeting; $30,000 Electrical
Upgrade; $4,140 Toilet Replacement; $ 8,93 0 Window Replacement; $15,3 3 8
Contingency; for a total $322,093.
Request #2 was for improvements to the Gateway Community Center at the Meals on
Wheels area of the building. This is a separate request as Meals on Wheels has not made
the final determination to move to this location or not. The request was as follows:
$260,729 Meals on Wheels Kitchen; $13,036 Contingency for a total of $273,765.
The URA reviewed the application submitted by Gateway Community Center dated
04/06/10, City ordinance No. 1259 and attachments, which established the TIF district,
Resolution No. 4942, which gave guidance from the City Council on all TIF Districts and
Resolutions No. 5262, which established guidelines for financial incentives to create new
jobs and increase the tax base. f
The West Side TIF District was established on March 11, 1997 and sunsets on
03/01 /2012. There was $1,916,182 in the West Side TIF account with $125,000 allocated
in the budget for future construction projects in the 2011 fiscal year.
In addition to the URA members also attending the meeting were City Attorney Charlie
Harball, City Revolving Loan Fund Manager wade Elder, City Community Development
Manager Katharine Thompson and City Mayor Tammi Fisher.
The URA discussed the request and the URA determined the improvements proposed are
not properly public infrastructure or public infrastructure -related. Completion of these
improvements would not result in increased property tax revenue and may ultimately
reduce property tax revenue should the property ownership go to the non-profit. Although
the desired improvements may facilitate the accommodation of additional employees,
they do not facilitate the generation of additional jobs. It was a unanimous decision.
A letter was sent to Gateway Community Center dated October 1, 2010 informing
Gateway Community Center of the URA's determination. The letter also reminded of
other funds that may be available to them such as the Community Development Block
Grant for Public Facilities and contact information.
RECOMMENDATION: Upon the recommendation of the URA a recommendation
of denial for the Gateway Community Center's request totaling $595,858.
FISCAL IMPACTS: Done.
ALTERNATIVES: As identified in the letter to the applicant there are other
funding sources available to the applicant such as the Community Development Block
Grant for Public Facilities.
Respectfully submitted,
Wade Eider, Revolving Loan Fund Manager
Jc4e Howington, City Manag�er�J
%)
City of Kalispell
Urban Renewal Agency
201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
www.kalispell.com
October 28, 2010
Jane Howington, City Manager
City of Kalispell
201 1" Avenue East
Kalispell, MT 59901
RE: Gateway Community Center request for City of Kalispell Tax Increment Funds.
Dear Jane:
The Urban Renewal Agency (URA) met on September 29, 2010 to consider a request of
Gateway Community Center from the City of Kali spell's West Side Tax Increment
Financing (TIF) district. The request was broken into 2 parts: Request # 1 in the amount
of $322,093 and request # 2 in the amount of $273,765 for a total of $595,858. Funds
were requested for improvements to the property located at 1203 US Highway 2 West,
Kalispell, MT 59901.
Discussion was held with City Attorney Charlie Harball, City Revolving Loan Fund
Manager Wade Elder and City Community Development Manager Katharine Thompson
in which details of the request were reviewed. Also in attendance was City Mayor Tammi
Fisher.
The URA discussed the request and determined the improvements proposed are not
public property infrastructure or public infrastructure --related. Completion of these
improvements would not result in increased property tax revenue and may ultimately
reduce property tax revenue should the property ownership go to the non-profit. Although
the desired improvements may facilitate the accommodation of additional employees,
they do not facilitate the generation of additional jobs. It was a unanimous decision.
A letter was sent to Gateway Community Center dated 10/01 / 10 informing Gateway
Community Center of the URA's determination. The letter also reminded them of other
funds that may be available to them such as the Community Development Block grant
for Public Facilities and contact information.
Please schedule this matter for the November 1, 2010 regular city council meeting. You
may contact this board or Wade Elder at the Community and Economic Development
Department if you have any questions regarding this matter f�
Sincerely,
Kalispell Urban Renewal Agency
Marc Rold
Chairman
Attachments: Application from Gateway Community Center
Memo from. wade Elder for 09/29/10 URA Meeting
City Ordinance No. 1259 and attachment
City Resolution No. 4942
City Resolution No. 5262
Letter to Gateway Community Center dated 10/0/10
2
201 '1st Avenue East
Kalispell, NIT 59901
406.768.7738
Fax: 406-758.7758
City of Kalispell
Urban Renewal Agency
October 1, 2010
Gateway Community Center
Attn. Mr. Mark Johnson, Board President
P.O. Box 7684
Kalispell, MT 59904
Dear Mr. Johnson:
Thank you for your application for funding from the West Side TIF.
Your application was presented at the September 29, 2010 Urban Renewal Agency meeting.
Your application was declined as it does not meet the requirements for the use of TIF funds. The
improvements you propose are not infrastructure or infrastructure -related. Completion of these
improvements will not result in increased property tax revenue and may ultimately reduce
property tax revenue should the property ownership go to the non-profit. Although the desired
improvements may facilitate the accommodation of additional employees, they do not facilitate
the generation of additional jobs. The non -profits still have to generate the support to provide for
any new employees.
The City of Kalispell would like to remind you that there are other funds available through other
programs, such as the Community Development Block Grant for Public Facilities offered through.
the Montana Department of Commerce, phone number 406-841-2791. The Community and
Economic Development department at the City can help with this application.
We wish you well in your endeavor to develop the Gateway Community Center and to improve
our community.
Respectfully,
Marc Rold
Chairman
Urban Renewal Agency
CC 1 Sherry Stevens Wulf
City oKalispell
West Side Tax Increment Financing (TIF) Applicatior
Project Name: Gateway Community Center Project Date; 4-6-2010
Marne and Title:
Mark Johnson, Board 'resident
Sherry Stevens Wulf, Administrative Support
Business Name:
Gateway Community Center
United Way Fiscal Agent
Phone Number:
751-4412 Mark Johnson
752-7266 Sherry Stevens Wulf
Email Address:
eG northwestmontanaunitedwa .or
1. Business Marne: Gateway Community Center
United Way Fiscal Agent
2. Address: P.O. Box 7684
Kalispell, MT 59904
Street: 1203 US highway 2 West Suite 26
Kalispell, MT 59901
3. Telephone: 752-7266
4. Fax: 755-7266
E
Property Address: 1203 US Highway 2 divest
Kalispell, MT 59901
2. Ownership: American capital Group - Kalispell Investors, LLC
20 Year Lessee: Gateway community Center
United Way Fiscal Agent
P.O. Box 7634
Kalispell, MT 59904
3. if property is not owned by the Applicant, list leasehold interests:
Current Owners.- American capital Group
1115 South Lacurnbre Lane Suite 302
Santa Barbara, CA 93105
Current Owners: Kalispell City/Flathead county/Port Authority
Teletech section - Units 0-12
Lease Pact sheet: Attachment A
4. Existing/proposed business:
The mission of the Gateway Community Center is:
To develop a one -stop human services campus utilizing a Community Center model
where clients will be able to access and receive a variety of services.
To assist agencies in their efforts to collaborate as well as provide a more seamless
service delivery system.
To recruit additional volunteers and funding while creating visibility for many
services that are currently located in small non -accessible sites throughout the
community.
To provide a central location for activities for people of all ages including health
education, arts and crafts, and entertainment as well as inter -generational activities.
The purpose of the project is to take a former retail facility and convert it into a
human services center for not -for -profit agencies and their programs. The Gateway
K4
Community center, Inc is in the process of rehabilitating, refurbishing- and
eliminating potential blight at the existing Gateway West ball which was built in
1974 and has sat relatively vacant for over 15 gears. The developers of this project
feel that the property will not revert back to retail space and the highest and hest
use for this property will be to covert it to a non retail environment. The goal of the
project is to co -locate 17 not -for -profit entities that will deliver over 30 individual
programs and services for low to moderate income individuals in Northwest
Montana.
Each existing unit in the Gateway West ball is in the process of being converted
into usable space for not--for-profit services that will be accessible to clients in need.
The interior of the facility gill become a Community center that will provide activities
for a wide variety of ages from youth through senior citizens including a walking
program, exercise program, cultural and musical activities and a place for
community groups to congregate.
The facility currently has five of the tenants in place which include: Flathead Food
Sank, United Way & The Volunteer Center, Violence Free Crisis Line, Boys & Girls
Club Administrative Offices, CASA For Kids, as well as the United Way conference
Center which has been in the facility for 10 years and an additional conference
space which will open spring of 2010. Three of the four food court venues are also
filled as of March 1, 2010.
Construction began on two other agency units in February 2010 consisting of
Montana Conservation corps and Summit Independent Living center. current
space rented is 28,800 square feet.
The existing food court has been rehabilitated and will act as a venue for events that
will be revenue generating for the Deals on Wheels and RSVP (retired & senior
Volunteer Program). The food court serves all of the general public.
0
Empigyment Information Once Proiect Is F,,ujjy Built out
Employment: Number of retained positions:
156 FTE 26 PTE
,Volunteers on Site:
50-70 on a daily basis
Number of New Positions To Be Created.-
31 FTE
Training Program Participants:
20-30 PTE
Training Participant Images:
Minimum Wage
Average Starting wage:
$10-15 Per Hour
Based on Non Profit Statistics
Supervisor rages:
$18 Per lour
Provide a synopsis of the fringe benefits: Health benefits and monthly cafeteria plans
may be provided through agencies.
Job Titles es umber of Positions
Wages including Benefits
Administrative assistant 6
$13.25 -- 14.75
Bookkeeper 1
$10
Case manager 13
$1 5
Crisis Line Worker 2
$15
Kitchen Staff 5
$13-25,
Supervisors 3
$14
Warehouse manager 1
$14.75
Training Titles Number of Positions
Training Wages
Janitorial 3
Minimum
Maintenance 6
Minimum
Food Court/Kitchen Aides 6
Minimum
Visitor Information Booth 4
Minimum
Greeters/Security Guides 3
Minimum
Source C ata: Information gathered through agency information sheets
4
5. Architectural Firm:
All Services Donated
Address:
Phone:
Contact.,
6. Description of Project:
7. Rehab ilitationiconstruction Plans:
8. Project Schedule
9. Project Costs
1
Architects Design Group
1 Sunset Plaza
Kalispell, MT 59901
257-7125
John Peterson
See Page 14
See TIF Request Page 11
See TIF Request Page 11
See TIF Request Page 11
Project
Financing
Commitment ; .'Group
Wwner Equity - American Capital Group,- Kalispell Investors LLC-
Current Investments Towards Project - American Capital Grou,-&4
Interior Door Replacement
$
37740
Sprinkler Heads
$
960
Parking Lot Repair
$
667823 `
Parking Lot Seal Goat & Re stripe
$
41,175
Sidewalk Replacement
$
29,348
Roof Replacement
$2481502
Utilities Audit
$
11600
Electrical Audit Upgrades
$
11,772
Public Rest Room Upgrades
$
61000
Ceiling ReplacemenflHVAC Unit 31
$
111000
Donated Rental Space (2008) $ 502412
Donated Cam Charges (2008) $ 493100
Donated Rental Space (2009) $ 1581500
Donated Cam Charges (2009) $ 837589
ProjectTotal Owner
Future Investments Toward Project - American Capital
Based On Lease Agreement
HVAC Replacements $ 301000
Donated Rental Space (2010) $ 134,500
Donated CAM (2010) $ 913188
Properly Taxes on Leased Space To GCC: $ 77,000
Total Owner Committed Investments $ 3327688
Total owner Projected Investment: 1109 s209
Source Data: Information Provided By American capital Group
��
roject Equity - GCS & Leaders h i p
Current Investments Toward Project - Gateway Community Center
Donated Goods Gifts In Kind (2008) $ 391305`
Donated Goods Gifts In Kind (2009) $ 711707;:
Donated Volunteer Labor To Project $ 681182
United Way Investment
$
E
82, oog
Flathead Food Bank Investment
$
751000
Food court Seating Area Investment
$
147664
Food court Investment
$
301000
Round Up For Safety Funding
181858
Total Gateway center Investment
$399,716
Total Volunteers On Project To Date 402
Donated Volunteer Hours To Project - 31367
Projected
Architectural Contribution
Flathead county Investment
Materials & Product contributions
Projected Donated Labor
Projected Unit Build Out costs
Agency Investments
Total Estimated Project Investment
Total Projected Investment
$ 20,000
$ 146,'!62 (See TIF Request)
$ 50,o00
$ 78,000
$ 32400
$ 12,500
$339,062
$738,778
Leader Commitments:
No lenders have been approached for funding at this time.
Areas that to be explored for assistance with acquisition costs include but not limited to:
USDA Rural Development Community Development Block Grant
Federal Government w Grants United Way Annual Funding
Private Foundations Private Donations
7
eveloper's°
And FinancialResponsibility
Name: Gateway Community Center
United Way Fiscal Agent
United Way
Address: P.O. Box 7684 P.O. Box 7217
Kalispell, MT 59904 Kalispell, NIT 59904
. A non profit charitable institution or corporation
Non profit tax ID# 81-0304858
United Way - Incorporated in 1950
Gateway Community center Incorporated -- 2009 State of MT
3, Names of officers: (All volunteer - no investors in project)
Marc Johnson
President
Flathead Electric
Carol Nelson
vice President
carol Nelson Design
lent Jones
Treasurer
Plum creek Timber
Barbra Bennett
Secretary
Clark Appraisal
Terry Kramer
Board Member
Kramer Enterprises
Mike Pence
Board Member
Flathead county
Rebecca Manna
Board Member
Kalispell Regional Medical
Sherry Stevens Wulf
Non voting Staff Support
United Way Fiscal Agent
4, Administration & Project Support
Sherry Stevens Wulf Fiscal Agent
Steven B. Cummings Attorney
Junkerrnier, Campanella, Clark, & Stevens, CPA's
Valentine Tax & Accounting Services
LAB
United Way
Legal Counsel
Auditor
Provide a current financial statement for each private entity involved in the
project:
Attachment C -United Way Audited Financial Statement
Attachment D -Gateway Community Center Data (Gifts In Kind Report)
Note: American Capital Group financial statements were requested, however,
their policy is not to release financial statements.
. Has the applicant or any individual or entity affiliated with the development of this
project been adjudged bankrupt, either voluntary or involuntarily, within the last
ten gears?
, Has the Applicant or any individual or entity affiliated with the development of this
project been indicted for or convicted of any felony within the last 10 years?
9
r
1 . Identify the contractor or builder who will undertake this project:
This project will utilize multiple local contractors, builders, plumbers, electricians,
and skills trades people as well as many volunteers who have and will volunteer
their time, expertise, and services to this project.
Each agency will be adopted by a licensed builder/contractor who will donate their
services to the agency.
In addition, businesses, church groups, service clubs, private individuals, and
organizations have and will volunteer hours to paint, complete demolition, complete
inventory of donated Items as well as other labor related work.
The architectural work is being donated by Architects resign for the overall project.
Terry Kramer from Kramer Enterprises will provide overall direction, however, each
builder will work independently yet within the guidelines set forth by the city of
Kalispell Building inept, American Capital Group, Gateway community center,
United 'flay, and the United Way Volunteer center.
Sherry Stevens Wulf will provide onsite monitoring, coordination with builders,
providers, volunteers, and the mall facility administration. coordination with the city
Building Crept, sign permits, Flathead county Public Health, and other entities will
be jointly coordinated by Kramer and Wulf.
Licenses, permits, and insurance coverages will be obtained and monitored by the
United inlay office and will be in place prior to the time any work commences.
Local contractors, builders, providers will have the first opportunity to work with this
project.
2. Has suchlany contractors or builders ever failed to qualify as a responsible bidder,
refused to enter into a contract after an award has been make, or failed to complete
a construction or development contract with the last 10 years.
X NO
10
Infrastructure Category
Request #1
Projected Costs Project
Schedule
A Telephone/Security System
$35,000
00--30-2010
B Carpet (Interior & All Units)
$228,685
10--31-2010
C Electrical Upgrade (Retro Fit)
$30,000
10-31-2010
D Toilet Replacements
$ ,140
10-31--2010
F Replacement unit 2 Store Front
$83930
08--30-2010
5% Contingency
$15,338
06-30-2010
Total:
$322,003
Reguest #2
F Meals On Wheels Kitchen $2601729 10-31-2010
5% Contingency � $13,036
Total: $273,765
Total West Side TIC Request $5951858
...:......:...
The line items requested benefit all agencies involved in the project as well as the
general public coming into the Gateway Community Center with the exception of
items E & F which benefit low to moderate individuals at the Food Bank and deals
on Wheels which benefits senior citizens.
Req nest #1
A. Telephone/security system - Phone system to be installed by a qualified
telephone provider. System will be provide complete interface for all agencies
including a tie into the Flathead County telephone system and high speed Internet
service utilizing fiber optic lines and an internal security system as well as 4 digit
dialing for all agencies as well as other non profits in the community. Costs Include
all installation services as well as modern phone systems for all agencies.
11
B. Carpet,- New floor covering to be installed in all units as well as an upgrade into the
common areas of the facility. carpeting is a heavy duty rubber backed material
(which means that there will not be a need for padding) that will be very durable and
stand up to wear and tear. The current carpet is the original carpeting installed in
1974 when the mall was constructed. costs include installation.
C. Electrical upgrade - costs are for electricians who will change out the ballasts and
antiquated lighting systems in are effort to save utility costs and, bring all units and
the interior common areas into compliance with energy efficient equipment. A
variety of electricians will be hired to complete the project. BPA rebates will be
applied for per unit to assist with the cost of replacing the actual ballasts within the
lighting systems. Every effort will be made to use the existing lights which will be
upgraded.
D. Toilet Replacements - Funds will replace all toilets with raised toilets which are
required by the city Building Dept. costs include toilet installation in all agency
units.
E. Replacement store Front - Flathead Food Bank - unit 2 - The single pane glass
windows and metal frame in Unit 2 needs to be replaced due to the fact that the
current panels do not provide adequate protection against cold and heat for the
clients. The costs include removal and installation as well as new frames and
safety glass.
Ft Proposed Meals on Wheels Kitchen - Unit I (Former corral West Location)
Concrete Work - Upgrade Slab For Safety For seniors $ 21350
Misc Metal Bolts/Fasteners $ 21000
Frame Walls, Doors, Window Upgrades, Finish Work $ 281811
Restroorns For Unit $ 74)111
Plumbing Estimate $ 621881
Mechanical Estimate $ 28,601
Electrical Estimate $ 61,975
Estimated Flathead Co Contribution: labor/supplies $140,162
Donated Labor and services
$ 62,314
r
The current Meals on Wheels Program currently serves approximate 57 people at
their current location. Moving to the Gateway community center will allow the
12
program to serve approximately 180 at one sifting to meet the demands of the
growing senior population as well as planning for the future projected growth needs
of the aging population in our community,
Meals on Wheels drivers will have easy access to the program due to the enhanced
parking area to the South entrance of the building.
Expansion will allow Senior citizens to engage in on site activities including playing
cards, dancing, art classes, as well as host events in the new location.
Since meals On Wheels is a Flathead county program the request is contingent
upon approval of the Flathead county commissioners and approval of this `CIF
request.
13
The concept of the Gateway Community center has been developed in response to the
increasing needs of people who are struggling within our community. The original idea
carve out of a community Deeds Assessment process in the late 1990's which was
conducted by the United Way. The concept of co -locating service providers in a common
location where clients would be able to easily find the services was a common theme
expressed by the program recipients participating in the needs assessment process,
Over the last two years agencies providing basic need services have experienced a 30-
45% increase in the demand for their programs. This project clearly responds to the
increase in demand for services as well as providing a gathering place for program
participants on many levels.
The project will restore a property that has virtually sat vacant for over 15 years by rnaking
the property accessible, energy efficient, code compliant as well as being rehabilitated to
the needs of each individual non profit agencies so that they will be able to achieve their
mission statements and serve more people in need than they have been able to at their
previous locations.
r The existing Gateway west Mall was built in 1974 and was the only retail mall facility in
E. Flathead county until the Kalispell center Mall was developed in 1955. At that tune most
of the businesses left or relocated to the Kalispell Center Mall leaving the building virtually
vacant.
The Gateway Community center Project concept was initiated in 1995 under the
leadership of Earl Bennett who served as Flathead County's Administrator and the United
Way as well as a host of non profit social service agencies that were interested in co -
locating their offices and services in an effort to make the services more easily accessible
to those most in need of services. over the years many attempts to locate land for a
facility large enough to house multiple programs was explored by the committee with very
little success. In 2000, the United Way relocated to a facility on Appleway Drive in
Kalispell that was adjacent to a 12 acre plot of land where a complex could be constructed.
The Clinton administration was offering grants for co -location projects, however, with the
change in the administration, the funding was no longer available.
In 2007, the United Way formed a Steering Committee comprised of United Way
volunteers in an effort to further the concept of this project and from this leadership
development group the Gateway Community center Project began,
As part of the initial development, the United Way invited the CASA For bids Program to
serve as a pilot agency and moved this service from the County's "blue building„ into the
EA
Gateway Vest Mall. The United Way has also rented a non profit community conference
center at this location for the past ten years. At the conclusion of the pilot project process
the concept and location of developing the human services campus at the Gateway West
Mall was deemed successful in terms of accessability and interest from the general public.
In 2008, the Steering committee selected the first Gateway Community center Board of
Directors. These Directors negotiated a 10 year lease with an additional 10 ear
renewable o tion in addition to securin a purchase o tion for the Gatewa West Mall
rooertv for rchase.
An agency coalition called the Gateway Community center Leadership connection, which
is comprised of one voting member of each of the agencies to be located in the facility, has
been meeting since June of 2009 to develop program protocol, parking, security, and many
other internal operating procedures for the project.
The availability of this unused property provides a unique opportunity to bring together non
profit and county service providers to be able to better meet the needs of clients who
currently have to search for services and spend valuable time and resources to find the
services which are scattered throughout the greater Kalispell area.
Most of the not -for -profit agencies interested in relocation to the Gateway Community
Center have outgrown their current facilities many of which are not accessible under ADA
(Americans With Disability Act) regulations. These agencies also desire to enhance
communication, collaboration and to share resources. The facility offers excellent parking
options for clients and a warm interior that will serve as a Community center. Staff and
volunteer parking slots needed total 104 with 23 partial day slots. An additional 50 slots
are anticipated for individuals attending meetings at the United Way conference center
on a daily basis for shorter periods of time.
The Gateway Community center is located across the parking lot from the DPHHS
l�epartrnent of Public Health & Human Service) which houses child & Family Services,
Adult Protective Services, the office of Public Assistance, and other state agencies
including the Montana Highway Patrol.
The center is 2 blocks from the Community Garden and in a four to six block'proxirnity to
the Social Security office, Drivers License Bureau, IRS, Veterans clinic, American lied
Dross, Agape Horne care Day care For Adults, and the Samaritan House (homeless
shelter). Located on the West side of Kalispell the facility is in the center of the highest
concentration of lour income families with children and senior citizens in the greater
Kalispell area. This ideal location will greatly assist clients in need. Eagle Transit is
currently making hourly stops at the Gateway Community center and also takes clients to
the other agencies listed above. The project is within the city limits of the city of Kalispell.
In the spring of 2009, the United Way moved its offices and the Volunteer center into a
temporary location within the Gateway Community center. The Violence Free crisis Line
IV
office also relocated as did the Boys & Girls Club administrative offices. In the fall of 2000,
a -the Flathead Food Bank relocated into the facility. In 2010, construction was completed
on the Food court area will now provide space for four non profit organizations to provide
a food service venue which generates revenue for their core programs. Glacier Bank
stepped forward to provide volunteer and financial support for the food court project. The
food court was licensed and began serving the public in March of 2010. -
Other community agencies are being invited to set up are agency kiosk to advertise their
programs and will be invited to provide short term onsite services such as job registration,
flu shots, sports and educational registrations, and community service volunteer
opportunities.
Gateway community center has commitments for all but one unit. Many agencies are in
varying stages of readying their organizations to make the move to the new facility.
The profile of the clients that will be served at the center are projected at 77% low income,
with 15-20% disabled and 88% unemployed or under -employed.
There will be a visitor information center near the existing food court, a cyber cafe with
wireless internet service for individuals that do not have their own computer access or
email availability. A post office will be created that will also be a drop off point for UPS
and Fedex,
The food court entertainment area will be revitalized and musical, school, and theater
groups will be invited to perform. schools and other organizations will be encouraged to
display artwork and projects. community resource information racks will be available to
the public on the galls in the information booth area as well. A common resource library
for clients will be coordinated with the Flathead County Library system.
Community agency, health, career, and non profit events will be encouraged throughout
the facility.
A day care program for employees is being explored in conjunction with Discovery
Development center which is located Y2 block North of the Gateway community center.
During 2009, there were 402 volunteers that carve to work on the project donating over
3,367 hours of time to the project.
The goal of the Gateway Community Center is to be able to purchase the Gateway West
Mall within a three to five year time period through various funding sources.
W
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: Gateway Community Center TIF Request.
MEETING DATE: September 29, 2010 — Regular URA Meeting.
BACKGROUND: The Gateway Community Center (GCC) has requested funding from the West Side TIF. They are
requesting $322, 093 in Request #1 and $273,765 in Request #2 for a total of $595, 858.
The West Side TIF was established through Ordinance No. 1259 with an effective date of 04/17/1997. It was created to
assist, if necessary, in the redevelopment of the Gateway West Mall and the former Crop Hail Building and to assist in
the reconstruction of Meridian Road and associated projects such as providing storm drains in the area. It is scheduled
to sunset on 04/17/2012. (A copy of Ordinance No. 1259 is in the URA binder.)
The Tax Increment Urban Renewal Bonds for the West Side TIF were paid off on 06/30/2010.
There is presently $1,916,182 in the Westside TIF account with $125,000 in the budget for construction expenses this
year.
On 10/14/2004 Resolution No. 4942 was passed giving guidance for all TIF Districts. This Resolution covers a large
amount of detail and reading is necessary (a copy of the resolution & policy is included with this presentation). The policy
indicates that publicly owned utility improvements are to be given priority in funding vs. a request for on -site utility
improvements assistance in the form of a low interest loan. It indicates TIF funds may be utilized for a number of public
improvements, costs and public infrastructure. It grants authority to assist developers in implementation of
redevelopment projects and funding may be made available for low -interest loans for on -site work covering;
Landscaping; Site Lighting; On -site utility work & utility taps; Parking, paving & striping; Direct assistance in the
rehabilitation retention or development of affordable housing for low and very -low income residents. The funds loaned
have a 10% limit of the total project cost. Generally funding is provided for exterior improvements for either the loan
program or the Cities contributions.
On 02/04/2008 Resolution No. 5262 (a copy of the resolution & guidelines is included in this packet) was passed, which
established guidelines for financial incentives to create new jobs and increase the tax base. This Resolution calls for the
creation of at least 10 net full-time jobs and provide health care benefits to employees and pay at least the average wage
of $30,004 ($14.431 hour) or the average wage for Flathead County, which of the last report dated 10/01/09 was
$3211361 annum ($15.451 hour).
GCC is requesting funding in Request # 1 of $322,093 broken out as follows:
$ 35,000 Phone 1 Security System
$228,685 Carpeting
$ 30,000 Electrical Upgrade
$ 41140 Toilet Replacement
$ 81930 Window Replacement 9
Page 1 of
$ 151338 Contingency
$322,093 TOTAL Request # 1
Request # 2 is as follows:
$2601729 Meals on Wheels Kitchen
$ 131036 Contingency
$273,765 TOTAL Request # 2
The improvements being done are for generally interior enhancements to the property.
In GCC's application they indicate there will be 31 Full Time Equivalent (FTE) new jobs created at the various agencies
that will be housed at the GCC. Please see the GCC application page 6 for a break -down of the jobs created.
It is the intent of the Gateway Community Center to eventually purchase the facility and when that is completed to
propose a payment in lieu of taxes for a period of 5 years and then apply for a non-profit tax exemption status, The total
tax bill for 2009 on this property was $145,461 with all taxes being current.
Page 2 of 2
WHEREAS-,, under the provisions of the Fontana Urban Renewal Law,
the- City Council of the City of Kali' -spell, Fontana, did
adopt Resole' tion. No. 4309 finding that 1) blighting
conditions exist within the area of the West side Urban.
Renewal District, a.n.d. 2 i that rehabilitation,
r'ed.eve ibpm.ent or a combination thereof, within the area
is necessary in the interest of public health, , a saf ety and
morals or welfare of the residents of the City of
Kalispell, and .
WHEREAS, the City Council of the City of Kalispell acting in its
capacity as the Urban Renewal Agency has directed that an
g urban renewal plan for the blighted areas be developed in.
P g P
accordance with the Fontana Urban. Renewal Law; and
WHEREAS, the City Council of the City of 'Kalispell, Fontana
(herein Agency) has caused to be made detailed studies of
the land uses, ownership, building conditions
demographics, transportation and safety within the
Neighborhood Plan area and determined that said factors
contribute to blighted conditions under § 7--15-4206, MCA,
and are detrimental and a menace to the safety, health
and welfare of the inhabitants and users of the area, and.
WHEREAS, the Agency has been fully apprised and is aware of the
factors and conditions, and
WHEREAS , . there has been prepared an Urban Renewals Plan for the
project, kn.own as the West side Urban Renewal Plan
(hereinafter Plan) , and
j : \wp\ord\Westside
WHEREAS, in accordance with Title 7 , Chapter 15 , Part 42, Montana
Code Annotated, the City/County Planning Board is the
duly designated and acting official planning body for the
City and has submitted to the Agency its input and
recommendations with respect to the Plan and has
cert i f ied that the Plan conf orms to the general plan for
the locality and the Agency has. duly considered the.
input, recommendations and., certification of the Planning
Board, and
WHEREAS, the Plan has been referred to the Agency for re'vi-ew and
approval. The Plan, consists- of textual matter- nclus '-
of supporting material and maps and is a�tachiad hereto as
Exhibit "A" and by this reference made a parthereofi and
WHEREAS, the, Plan for the project area requires, -among other
thingsa
a. setting a pattern of land use in.dorpora'ting
sensitivity to n.eighborIng uses
b . creating a circulation -pattern that maintains
a separation of incompatible uses;
c . creating a street system that can accommodate
increases in traffic safety; and
d. provide full range of services to area.
WHEREAS , the Agency is aware that a market exists in the area for
additional residential units, retail space, professional
space and other commercial uses consistent with the Plan,
and.
WHEREAS, the City will comply with Federal and state laws
governing the relocation of person (s) displaced as a
result of -implementation of the Plan, and
WHEREAS, , the members of the Agency have general knowledge of the
conditions prevailing in the project area. and the
availability of property for the relocation of fami l,io s ,
businesses and recreational property that may be
displaced by implementation of the Plan, and have
determined that a relocation program is both workable and
feasible for the needs of the project area, and
3 :lwp\ord\westside 2
WHEREAS, under § 7 --15 - 4 2 8 6, MCA mill rates of taxing bodies f o r
taxes levied after the effective date of the tax
increment provision shall be calculated on the basis of
the sum of the taxable value, as shown by the last
equalized assessment roll, of all taxable property
located outside the urban renewal area and the base
taxable value of all taxable property located within the
urban renewal area. The mill rate so determined shall be
levied against the sum of the actual taxable value of all
taxable property located within as well as outside the
urban renewal area. The tax increment, .if any, received.
in each year f rom the levy of the combined mill rates of
all the effected taxing bodies against the incremental
taxable value within the urban renewal area, except for,
the university system mills levied and assessed against
property~ as defined 'in 7 -15 --42 92 (6) (a),, shall be paid
into a special fund held by the treasurer of the
municipality and used as provided in 7 -15 -42 82 through 7-
15 -- 4 2 9 2., MCA., and.,
WHEREAS, the Agency is cognizant of the. conditions that are
endorsed in the undertaking and carrying out of the Plan
including those prohibiting discrimination under the
Montana Human Rights Act, and
WHEREAS, in accordance with § 7 --15 --4215 , MCA, the Agency did hold
a Public Hearing on March 3, 1997, after due and proper
notice, both by mail and publication of, same.
NOW THEREFORE, , BE IT ORDAINED BY THE CITY COUNCIL of THE CITY OFF
KA.L I S PELL , MONTANA , AS FOLLOWS:
SR= ol�_. � o That the west Side Urban Renewal Plan of the
City of Kalispell, Montana contained in
Exhibit "A" and ",B" hereof, having been duly
reviewed and considered, i. s hereby approved
and. the City Clerk 'of Council is hereby
directed to file said copy of the Plan with
the minutes of this meeting and in the
Ordinance Book. Said ordinance is to be
posted as required by law and copies made
available to the public upon request
j:\wp/ord/westside 3
`�. That it is hereby found and determined that
the project area of said. Plan is blighted and
qualifies as an e3.igibZe project under the
Fontana. Urban Renewal Law.
That it is hereby found and determined that
the objectives of the Plan cannot be achieved
except through more. extensive- rehabilitation
of the project area.
SIECTTONTV o That it is hereby f ound and determined that
the Plan for the project area conforms to the
Kalispell City --County Faster Plan or parts
thereof adopted for the City of Kalispell
planning area.
T" 19- a That it is hereby fond and determined that a
-sound and adequate financial program exists in
the Plan for financing the projects contained
therein
That the City shall segregate and apply tax
increments accruing to the district, as
provided in. H 7-15--4282 through 7--15-4292,
MCA.
SECT DN yThat the redevelopment of the Plan is
necessary for the proper development of the
community.
V= 9 That it is hereby found and determined that
the Plan for the area will afford maximum
opportunities consistent with the sound needs
of the locality as a whole for the renewal of
the area by private enterprise
1�� o That it is hereby found and determined that
the Plan for the area gives due consideration
to the providing of adequate park and
recreational areas and facilities as may be
desirable f or the neighborhood improvement
with special consideration for the health,
safety and welfare of children using
j : \wpjord\Westside
V
facilities within the vicinity of the Plan
area.
a That a workable and feasible plan exists
therein for making available adequate housing
for person (s) who may be displaced by the
projects.
That in order to implement and facilitate the
effectuation 'of the Plan, hereby approved, it
is. found and determined, that certain official
actions must be taken by the .Agency with
reference among other things to setting a
pattern of land use incorporating sensitivity
to neighboring uses; creating a circulation
pattern that maintains a separation of
incompatible uses; -creating a street system
that can accommodate .increases in traffic
safety; and provide full range of services to
area:
a) Pledging its cooperation in carrying out
the Plan.;
b) Directing the various of f .icials ,
departments , boards , and agencies of the
l.ocal_ity having administrative
responsibility in the premises likewise
to cooperate to such end and to exercise
the respective functions and powers in a
manner consistent with the Plan, and.
c) Standing ready to consider and take
appropriate action and measures
designated to effectuate the Plan.
-C210- o In the event the implementation of the Plan
increases student enrollment for elementary
schools serving the area, the city of
Kalispell will consider utilizing a portion of
the tax 'increment that may be generated in
excess of that needed for development or
redevelopment to mitigate the impact on School
j:lwP\ord/westside 5
District 5 schools®
SECTION X111. The City Council of the City of Kalispell,
Montana does authorize the Manager to
implement the Plan with the powers set forth
in Title 7, Chapter 15 , Parts 42 43, MCA.,
and to seek financial assistance as it may
become available f rom. the Federal or State
government or such other sources as may be
determined appropriate by the City Council
That January lst, 1997 shall be established as
the base year for calculating tax 'increment
SECTTQN_XIV. Modification of Plan and Designation of and
Approvals of Urban Renewal Projects shall be
subject, to the following.
A) The Council may modify and amend the
Plana including m,oai t ications and
amendments to designate and approve urban
renewal projects to be undertaken
pursuant thereto, excepting modifications
involving the addition or deletion of
land from the ,Area., by enacting an
ordinance providing for and setting forth
the modification and amendment, following
the procedures set forth in subsection 7 ,-
15 - 4 2 l 2 through 7- l 5- 4 219 ., MCA, with
respect to adoption of an urban renewal,
plan.
B) Modifications or amendments involving
the addition or deletion of land from the
Area, only, shall be made by ordinance,
providing for and setting forth the
modification or amendments after a public
hearing, notice of said public hearing
on the proposed modification or amendment
sha.l.l be given in the of f icial newspaper
once a. week for two consecutive weeks
preceding the hearing and by mailing
notice of said modification or amendment
j : \wp\ord\Westside 6
to all persons owning property to be
added or deleted at the time and the
manner provided by Section 7-15-4215,MCA
.
13 All notices shall provide the
info rm, ation regarding the modification
requIred by Section 7-15-4215(2), MCA.
2) Nothing contained herein shall 13.Mit
or effect the authority of the Council to
undertake and carry out renewal
activities on a yearly basis as provided
in Section 7-15-4220, MCAD
C) All other changes affecting the Project
Area including, but not limited to, bulk
and area requirements, Planned Unit
Developments, building heights, street
set backs, parking, signage, land use
changes or zoning classifications, may be
made after- review by the City -County
Planning Board and Zoning Commission and
approved by the City Council, subject to
the applicable Montana law.
Sy4_CTJ'0N_xV 4 This Ordinance shall take of f eact from and
after, 30 days of its passage by the City
Council.
FINALLY PASSED AND APPROVED BY THE CITY COUNCIL AND THE MAYOR OF
THE CITY OF KALISPELL, THIS DAY OF MARCH, 1997.
Dougls D. Rauthe Mayor
Attest:
/V/vc�
I A - IV -
Debbie Giffb MC
Clerk of Council
i:\wP\ord\Westside 7
EXHIBIT,"A"
TAX
INCREMENT
FINANCE
DISTRICT
URBAN PLAN
On January 6, 1997, the Kalispell City Council adopted Resolution No. 4309 finding that
one or more blighted areas exist within the areas of the North Meridian Neighborhood
Plan and an additional area described below (Exhibit 'A"). The north Meridian
Neighborhood Plan in general covers an area bounded by U.S. Hwy 2 on the south,
U.S. Hwy 93 and Wedgewood Lane on the north, 7th Avenue WN on the east; and
Hawthorne Avenue and Northern Lights Blvd on the west. The additional area is formed
by extending the easterly 7th Avenue WN boundary described above, south across the
railroad tracks to 7th Avenue West to its intersection with First Street West and then
westerly to the west Kalispell City Limits at Meridian Road and then north along the
westerly boundary of the Kalispell City Limits to Northern Lights Blvd. It was found that
rehabilitation, redevelopment, or a combination thereof, within such area is necessary in
the interest of the public health, safety, morals or welfare of the residents of the City of
Kalispell.
The primary goals in creating the Westside Urban Renewal Tax increment Finance District
are to implement the North Meridian Neighborhood Plan that was adopted as an
amendment to the Kalispell -City -County Master Plan in December of 1994, by both the
Kalispell City Council and the Flathead County Board of Commissioners to assist, if
necessary, in the redevelopment of the 39.5 acres encompassing the'Cateway Test Mall
and the former Crop Hail Building, and to use available tax increment funds to assist in the
reconstruction of Meridian Road and associated projects such as providing storm drains in
the area.
URBAN RENEWAL PROJECTS
The vest Side Urban Renewal Tax Increment Finance District Urban Renewal Plan (the
"Plan') contains many undertakings that need to be implemented under the authority of
this plan. As specified in Part 42, Urban Renewal, MCA, the purpose of an urban renewal
plan is to assure that a sound and adequate financial program exists for the financing of
urban renewal projects. The following is a brief description of the City of Kalispell-s intent
to use tax increment funds to implement and finance eligible urban renewal projects:
Westfield Properties Inc., of Salt Lake City, Utah, has entered into a joint venture
relationship with Woodbury Corporation, also headquartered in Salt Lake City, UT,
Craft - West Side Urban Renewal Tax Increment District
Urban Renewal Plan
March 14, 1997
forming WOODMEN PROPERTIES L.C., to pursue the redevelopment of Gateway west
Mall and related properties (Exhibit "B"). The property comprises approximately
39.5 acres with the two primary components being the Gateway west fall and the former
Crop Iw--iail Building, which is currently owned by Egghead Software Company.
Woodmen Properties L.C. has an option with the mail mvners, Collier -Heinz, to redevelop
and expand the existing mall. It is their intention to proceed under the Urban Renewal
Law by developing a workable and feasible plan, which can be implemented through
private enterprise without the exercising of eminent domain. As stated in their proposal:
"Our goal is to reverse the trend toward deteriorating physical facilities and falling
property values associated with the Property. We would intend to make
immediate efforts to create new tenancies in the existing facilities as we move
forward with the formation of an acceptable redevelopment plan. As the
redevelopment plan is established, we are prepared to make the necessary
investment to eliminate the blight and economic distress currently associated with
the Property. At the present time we are studying the redevelopment of the
Property under three different scenarios:
a. Regional retail mall with three -anchor configuration and associated out
parcel retail.
b. Business park with multiple low-rise office buildings and limited retail
facilities.
c. Mixed -use office and retail.
... we would estimate that the investment and redevelopment process could result
in a market value for the Property of $20,000,000 to $22,000,000 which represents
a substantial increase over the current combined assessed value of the property of
$7,857,378. Additionally, this type of redevelopment activity, once completed,
will generally require a labor force of approximately 900 to 1,000 individuals to
support the ongoing operations associated with the businesses which will locate in
the Property. Further, it is important to note that of these jobs, we would estimate
that 75 % will be new jobs created by businesses locating in Kalispell for the first
time."
As the analysis shows in Exhibit 8, the post redevelopment of the Gateway west Mall
could generate an annual tax increment of $284,827. This new incremental tax value will
support the issuance of an urban renewal bond in excess of $2,000,000. The bond
proceeds will assist in the redevelopment of the property in accordance with applicable
statues, Part 42, Urban Renewal, and as specified in Section 7-15-4288, MCA.. The specific
E
Draft - West Sidi Urban Renewal Tax Increment District
Urban Renewal Plan
March 14, 1997
redevelopment plan will depend an market conditions and development scenarios as
outlined above,
I lip :��' �,.i q 111111_
The north Meridian neighborhood Plan was adopted as an amendment to the Kalispell City -
County Master Plan in December of 1994. The neighborhood Plan was adopted to serve as
a guide for the most appropriate action to take when a request for a change in zoning or major
development is proposed for the area. The land immediately adjacent to Meridian Road
generally has a haphazard organization to its zoning and land use pattern. This situation
makes it difficult for property owners to predict what will happen regarding land use in their
neighborhood. in addition to the land use and .zoning, the neighborhood Plan looks at the
needs of the neighborhood regarding infrastructure, such as roads, pedestrian access, water,
sewer, and storm drainage, and sets general policies toward supplying those services.
The neighborhood Plan identifies four (4) major issues of concern in this area and outlines
goals to address each of these issues. Those goals are identified as follows:
ISSUE I.* The present urbanized land use pattern incorporates a haphazard and
incompatible nix of uses.
GOAL 1: To set a pattern of land use" that incorporates sensitivity to
neighboring uses.
This could be done by encouraging multi -use commercial development along Meridian
Road and U.S. Hwy 2, and primarily west of Two Mile Drive, and by encouraging attached
single family or apartment type dwellings to buffer the commercial development from the
single family development to the east. lasing tax increment funds, the city could also
assist with the relocation of businesses that are incompatible with the zoning so that the
land could be redeveloped with a use that is compatible with the surrounding area and
with the zoning.
Certain public utility companies located on Meridian Road are facing difficulties in
expanding their offices because of zoning designations. A public utility company located
on Meridian load had at one time shown an interest in purchasing additional property
adjacent to their property so that they could expand and consolidate their offices. when
the north Meridian neighborhood Plan was adopted as an amendment to the Kalispell
City -County Master Plan, this property and those surrounding it were designated for future
high_ density residential zoning. Because the Kalispell city--Coupty Master Plan designates
the ebtire area around the utility company as high density residential, the-y-were unable to
apply for a zone change to allow their business to expand. The city, with tax increment
C,
Drab - West Side Urban Renewal Tax Increment District
Urban Renewal Plan
March 14, 1997
funds, could assist with the relocation of these public utility companies and encourage the
redevelopment and re --use of these sites to a use that is compatible with the Neighborhood
Plan.
ISSUE : The interaction of pedestrians, bicycles, and vehicles can create
dangerous situations,
COAL 26 create a circulation pattern that maintains a separation of
i'ncompatlb e systems,.
This could be done by providing sidewalks and boulevards along all major streets and
roads and by encouraging bicycle lanes that are separate from the vehicle traveling lanes
on Meridian Road, Three Mile Drive, and Two Mile Drive.This could also be done by
irnplernenthig the portion of the Kalispell Transportation Plan that deals specifically with
the reconstruction of Meridian Road.
ISSUE 3p As the city grows, additional traffic will strain the existing system
making it more dangerous.
GOAL 3: create a street system that can accommodate increases in traffic
safely.
The reconstruction of Meridian Road from U.S. Hwy 2 north to U.S. Hwy 93 is a
significant factor in creating a street system that can handle the increased volumes of
vehicle and pedestrian traffic in this area.
ISSUE 4%. City services are ot yet available oparts i#.f the North Meridian
GOAL 4: Provide iservices to the ;
While infrastructure such as water, sewer, and storm drains exist in the area, these
improvements are discontinuous. Storm drains, sewer mains, and water ruins should be
extended to those areas not served by such improvements. The city could possibly assist
in the construction of these improvements with tax increment funds.
The adopted Kalispell Transportation Plan has identified the reconstruction of4North
Meridian from U.S. Hwy 2 west north to U.S. Hwy 93 North as th t ri ri for urban
system funding. The project includes the widening of the road to accommodate additional
travel lanes, turn lanes, curb, gutter, and pedestrian/bicycle facilities. design and
construction documents are-, scheduled to be completed late summer, 1997.
►,
Draft - West Side Urban Renewal Tax Increment District
Urban R2nevva! Plan
March 14, 1997
Project funding comes from the Urban Highways Fund With a current credit of
approximately 1 million. Dotal project costs are estimated at $3.1 million with an
additional $500,000 needed for related storm drainage improvements. The funds accrue to
the project account at $235,000 per year, thus requiring another eight years before
construction contracts could be awarded. Additional right-of-way will also be needed,
creating impacts on several properties fronting Meridian Road.
As tax increment funds become available from the redevelopment of Gateway west Mall
and other properties in the district, the west Side Urban Renewal Plan provides a variety of
financing options to expedite the reconstruction project. The road and intersections are at
or over capacity now, with increasing traffic because of steady growth of commercial and
residential development on the west side of Kalispell. Improvements to North Meridian
Road are critical to the proper growth of the area to stabilize and improve the tax base.
The west side of Kalispell has grown piecemeal over the decades, with city services of
sewer and water extended incrementally when requested by developers. Road
construction has been limited and added on to narrow county roads as expediency
dictated. Major widening and reconstruction of existing roads along with new arterials are
critical to 'reduce the increasing traffic congestion associated with the retail and residential
development rapidly occuring on the west side. Storm drainage and flood plain
management are two other critical areas that need analysis to develop and implement
solutions.
The area lying to the south of U.S. Hwy 2, east of Merl than Road, has been included in the
West Side Urban Renewal Tax Increment Finance District to encourage and facilitate the
following projects:
1. To assist in the redevelopment of private property to provide opportunities for light
industrial uses in an appropriate neighborhood of similar uses.
2. The construction of additional access roads to better serve underutilized industrial
land.
3. Completion of storm drain and flood plain mitigation measures implemented on the
north end of the district.
4. Extension of water mains to provide adequate pressure for fire hydrant flows.
Draft - West Side Urban Renewal Tax Increment District
Urban Renewal Plan
March 14, 1997
Tax Increment Financing CTIV) may only be used in conjunction with the implementation
of an urban renewal plan and project. The city council must declare that urban renewal is
Af necessary and in the public interest" and that blight exists in an area.
The principal of TiF is that the redevelopment project is financed through the use of new
tax dollars, generated as a result of increased private investment stimulated by a redevelop-
ment project. It assumes that the existence of blight has a deleterious effect on private
investment in an area. It must also be assumed that if the city/ of Kalispell adopts a
redevelopment plan which will instill developer -investor confidence, the existing tax base
will be, maintained at least at present levels and improved measurably over the term of the
project. The tax increment financed urban renewal project, then, is intended to assure that
all levying agencies (schools, state, county, city) may continue to count on a stable
"original" base value of private property on which to levy taxes. Any increase in the fair
market value of property above the "original base" value, or the increment, will generate
new tax dollars, tax dollars that in all probability would not exist were it not for the urban
renewal project. Tax increment is "... the collections realized from extending the tax
levies, expressed in mills, of all taxing bodies in which the urban renewal area or an
industrial district or a part thereof is located against the incremental taxable value."
(Section 7-1 S-4283(8), MCA)
"The tax increment, (the new tax dollar) if any, received in each year from the levy of
the combined mill rates of all the affected taxing bodies against the incremental
taxable value within the urban renewal area ... shall be paid into a special fund held
by the treasurer of the municipality and used as provided in 7-15-4282 thru 7-15-
4292." (Section 7-15-4286(2)(a), MCA)
()�, r\ vbll�
The tax increment may be used to pay t costs of or incurred in connection
with urban renewal projects Z�. bj,�'J a
-AV&
1. Land acquisition;
2. Demolition and removal of structures;
3. Relocation of occupants; and
4. The acquisition, construction, and improvement ... of streets, roads, curbs, gutters,
sidewalks, pedestrian malls, alleys, parking lots and off-street parking facilities,
sewers, sever lines, sewage treatment facilities, storm sewers, waterlines,
�r terways, water treatment faci lities, publ is bu i Idings, and other publ is
1 rovements ®.. and items of personal property to be used in connection with
r,
Draft - Nest Side Urban Renewal Tax increment District
Urban Renewal Plan
March 14, 1997
improvements for which the foregoing costs may be incurred. (Section 7-15-4288,
MCA)
Tax increment funds may be pledged for the payment of revenue bonds issued for urban
renewal projects or of general obligation bonds, revenue bonds, or special assessment
bonds issued to pay urban renewal costs (Section 7-15--4290, MCA). All of these bonds are
tax exempt, i.e.,, the interest earned by the bond buyer cannot be taxed as income,
therefore, a lower than market rate of interest is paid by the seller (municipality).
Urban renewal should result in measurable, tangible benefits, as well as keep the area's
base taxable value from declining. The base taxable value means, "the actual taxable
value of all taxable property within an urban renewal area ... prior to 'the effective date of a
tax increment financing provision" (Section 7-15-4283(2), MCA). If blight- is eliminated,
and if investor developer confidence is restored in the area, all levying agencies may
continue to share in the taxes generated by the base. After urban renewal costs have been
paid and all bonded indebtedness for the project satisfied, the segregation of tax increment
will cease and all taxing bodies will share in taxes generated by the improved tax base.
There are no tax benefits or -.fair market value reductions to properties within the area.
Such properties will, however, benefit from any improvements within the area which may
occur because of the project.
Under Section 7-15486, MCA, mill rates of taxing bodies for taxes lev1
ied after the
effective date of the tax increment provision shall be calculated...on the basis of the sum of
the taxable value, as shown by the last equalized assessment roll, of all taxable property
located outside the urban renewal area and the base taxable value of all taxable property
located within the urban renewal area. The mill rate so determined shall be levied against
the sure of the actual taxable value of all taxable property located within as well as outside
the urban renewal area. The tax increment, if any, received in each year from the levy of
the combined mill rates of all the effected taxing bodies against the incremental taxable
value within the urban renewal area, except for the university system mills levied and
assessed against property as defined in 7-15-4292(6)(a), MCA, shall be paid into a. special
fund held by the treasurer of the municipality and used as provided in Sections 7-15-4282
through 7-15-4292, MCA. Therefore, the city shall segregate and apply tax increments
accruing to the district as prodded in Sections 7-154282 through 7-154292, MCA.
Ordinance No. 1259 authorizes the city Manager to implement the Plan with=the powers
set forth in Title 7, chapter 15, Parts 42 & 43, MCA, and to seek financial assistance as it
may become available from ,the Federal or State government or such other sources as may
be determined,appropriate by the city council. January 1, 1997, shall be established as
the base year for calculating tax increment.
7
Draft - West Side Urban Renewal Tax Increment District
Urban Renewal Plan
March 14, 1997
11 '�j �„.
.. 111 11 _
A municipality has the power to issue bonds to finance urban renewal, including the
payment of principal and interest upon any advances for surveys and plans, and to issue
refunding bonds for the payment of such bonds previously issued. Such bonds shall be
authorized by resolution or ordinance of the local governing body and shall not pledge the
general credit of the municipality (Section 7-15-4301, MCA). Specifics related to urban
renewal bond authority are contained in chapter 7, Title 15; Part 43, of the Montana Code
A n n otated .
The true test of any redevelopment and/or economic development plan will be whether or
not the pion stimulates private investment which results in jobs, an improved tax base, and
a more humane environment. This statement has been reiterated throughout this text
because it is important. Planners, community leaders, and elected officials must realize
that investor developers are motivated by profit, reasonably secure investment, and the
opportunity for investment growth.
Redevelopment and economic development plans must not just treat the symptoms of
blight, inadequate public improvements and a stagnant tax base, but attack the cause - lack
of profit incentive. Federal and state programs are now focusing on leveraging private
dollars with limited grants; local government also ought to channel its efforts in that
direction. in order to do so, local government needs to understand ghat profit incentives
are available to businesses in addition to low interest loans, grants, goad planning,
adequate public services, technical assistance required, and local governments' interest in
viability of businesses.
s
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 SCA, then West along the Southern boundary of said
parcel a distance of approximately 224 feet, then North along west
boundary of Assessor Tract 5CA, then Vest along the North boundary of
Assessor's Tract .5F, then South along the western boundary of said parcel
to its intersection with west Wyoming Street, them East a. distance of
approximately 448 feet along the North boundary of west wyom a n.g street
to its intersection with Seventh Avenue WN, then South to the Southern
border of Vest Wyoming Street, then west along the Southern border of
West Wyoming street to its intersection with. Meridian Road, then South
along Meridian Road to its intersection. with Highway 2, th.en. East along
Highway 2 to its intersection with seventh Avenue WN, then 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 SDDB, then along the Southern
boundary of said tract and Assessor's Tract 5DDA to Meridian Road. Then
Forth 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 5o
feet; then Forth and west following the boundaries of the city Limits to
H i, ghw ay 2 West.
From Highway 2 west, following the westerly most city limits to Three
Mile Drive. Then Fast 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; them North along the Eastern
boundary of Lot 3, Block 1, Northridge Heights Subdivi.si.on. to Parkway
Drive
A RESOLUTION TO AMEj[11D THE POLICY AND APPLICATION PROCESS FOR TAX
INCREMENT FINANCING EN ALL URBAN RENEWAL DISTRICTS AS AUTHORIZED
BY ORDINANCE No. 933 ON REDEVELOPMENT PROJECTS IN THE CITY OF
WHEREAS, Title 7. Chapter 15, Parts 42 & 43, Fontana Code Annotated authorize the City of
Kalispell to develop a workable urban renewal plan to rehabilitate and eliminate
blighted areas utilizing "tax increment finances" in partnership with private
enterprise; and
WHEREAS, the existing policy and application process for tax increment financing in all urban
renewal districts was last modified in February of 2002 and based upon a review of
that policy, it is in the best interests of the City that the existing policy be amended;
and
WHEREAS, the policy should be amended to establish that the interest rate of loans should be
tied to the Prime Rate and subject to change on a regular basis and that loan and
mortgage terns of 15 and 20 years be established based upon the total amount of the
loam and
r
WHEREAS, the polio should no longer consider land acquisition as an eligible activity as
previously allowed under Item III of the policy; and
WHEREAS, item IV of the polio, regarding the utilization of Funds involving TIF interest
subsidized loans, should be deleted, as the program no longer exists.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITE" OF
KALISPELL AS FOLLOWS:
SECTION .. That pursuant to the authority granted to the City of Kalispell by Title 7,
Chapter 15, Parts 42 & 43, Montana Code rotated, and as a means of
implementing the tax increment assistance provisions applicable to all
Redevelopment Plan areas, the "`Policy and application Process for Tax
Increment Financing in. All Urban Renewal Districts", as amended as
Revision 10/4/ 004, is hereby adopted and authorized for use by the City of
Kalispell. A copy of said Polio shall be available upon request at the Office
of City Clem of Kalispell.
PASSED AND APPROVER BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KAL IS PELL, 'THIS 4TH DAY OF OCTOB EPA, 2004.
M. Z-ir=z
016nefa B. Kenned
Mayor
ATTEST. -
Theresa Waite
City Cierk
Herron asked if a twenty year lease is available if someone wants to pay cash.
Moyer said the twenty year lease is strictly tied to financing. Someone want g to pay cash would he
offered a. ten year lease.
Herron commented from a business standpoints that doesn't make sense.
Olson noted the lease holder would have the option of two additional five year terms.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favors and Hafferman voting against.
Resolution 4942 amends the current poll ey and application process for tax increment financing in all
urban renewal districts.
Gabriel moved Resolution 4942, a resolution to mend the policy and application process for
tax increment linancfg in all urban renewal districts as authorized by ordinance No. 933 on
redevelopment projects in the City of Kalispell. The motion was seconded.
Moyer gave a staffreport explaining that some of the revisions include changing the interest rate and
terns on TIF loans and deleting various sections of the policy that are no longer applicable.
Atkinson said Hafferman had his opportunity to spew on tax increment funds and he'd like to
comment on the positive side. He said in a tax increment district "the taxes that happen right now
stay the same and those taxes go to the County, the School District and the City. Anything from this
date forward, the increment goes to a fed that helps to develop the prope ty within that tax
increment district for a certain period of time.. t the end of that period of time, that increment gets
split up the way it nornally does, to the County3 the Cite and the School Distn*ct." Adcinson said the
reason the entities agree to relinquish some of the taxes over the period of the tax increment district
is so that the economy can develop and the tax base becomes higher. He said it's essentially the
foregoing of money to receive more money at a later date.
The motion carried unanimously upon roll call vote.
Ef 1 . ORDINANCE 1514 - . ASTSIDE TRAFFIC CALMING MEASURES 1ST
READING
Ordinance 1514 establishes several changes in the area around Hedges School to calm neighborhood
traffic and enhance child safety.
Gabriel moved irwst reading of ordinance 1514, an. ordinance instituting certain traffic
ealnu*ng measures on the east side of Kalispell, pursuant to Kalispell City Code 17-15 and
amending Kalispell City Code 17-5 , 17--72-1 and 17-106 , authormug the Kalispell City
Attorney to recodify such code and declaring an effective date. The motion was seconded.
Garner and Hansz gave a staff report, "plaining this is part of the Safe Routes to Schools Program
with similar traffic calming measures being looked at for Peterson, Russell and Edgerton schools.
Kahispell City Council Minutes
October 4, 2004
Page 8
R
TAX INCREMENT FINANCING
IN ALL URBAN RENEWAL DISTRICTS
The existence of blighted areas within the municipalities of Montana has been identified by the
state legislature as a problem that requires government action. Enabling legislation has given
local governing bodies the authority to establish urban renewal districts, utilize urban renewal
pourers, and implement urban renewal projects through the use of tax increment financing. Tax
Increment Financing (TIF) is a significant element of the urban renewal law, allowing urban
renewal programs to be financed locally without reliance on limited federal funds_ The principal
behind TTF is the ability of the local governments to use the increase in taxes within a specified
district above an established base year for redevelopment projects.
On September 10, 1979 the City Council adopted an urban renewal plan and designated the
central business district as a blighted area. Subsequently, City Council approved ordinance No.
1259 creating the west Side Urban Renewal Plan that January 1, 1997 as the base year for
calculating tax increment generated. Finally, ordinance No. 1260 established the
Airport/Athletic Complex Redevelopment Plan with a base year of January 1, 1996. The Tax
Increment provision terminates upon the tenth (.loth) year following the adoption of the Plan(s)
or upon the payment or provision for payment in full or discharge of all bonds for which the tax
increment has been pledged and the interest thereon, whichever last occurs.
Any tax increases due to new development, inflation, or re -appraisals are set aside for the City of
Kalispell, the delegated authority, to undertake urban renewal efforts during either the ten-year
life of the Urban Renewal District or upon the payment of all bonds.
:. .. .. X :.
i.
Tax increment financing is not an abatement program for new development. Revenues obtained,
however, may be utilized to encourage the implementation of public or private projects. Publicly
owned utility improvements for a development will he given priority in funding assistance
vs a request for on -site utility improvements assistance in the form of a lour interest loan. As
specified in state law, the City of Kalispell may utilize TEF for the following activities
Land acquisition;
® Demolition and removal of structures;
Relocation of occupants;
® Public improvements; and
® Costs incurred in the exercise of urban renewal powers, including urban renewal projects
as authorized by Kalispell City Council in ordinances No. 933, 1259 and 1260. Loans
and grants may be eligible under this provision.
® Acquisition of infrastructure -deficient areas or portions thereof;
Revised 10/4/04 Page 1 of 5
a Administrative costs associated with the management of the industrial district;
.assemblage of land for development or redevelopment by private enterprise or public
agencies, including sale, initial leasing, or retention by the municipality itself at its fair
value;
• The compilation and analysis of pertinent information required to adequately determine
the infrastructure needs of secondary, value -adding industries in the industrial district;
® The connection of the industrial district to existing infrastructure outside the industrial
district; and
® The provision of direct assistance to secondary, value --adding industries to assist in
meeting their infrastructure and land needs within the industrial district.
Demolition, ClearancePublic Improvements, wild anal Site Preparation —
Tax funds generated wider an Urban Renewal District will be used primarily for the construction
of public infrastructure improvements within public rights -of -way, or as otherwise provided for
by law, as outlined in the City's annual budget, Urban Renewal Plans or as approved by the City
Council pursuant to Developers' .agreements.
The City of Kalispell is authorized to install and construct or to cause to be installed and
constructed the public improvements, public facilities, and public utilities (within or outside the
Proj ect area) as appropriate or necessary to carry out the Flan or are of benefit to the Project.
Such improvements, facilities, and utilities include, but are not limited to, over- or underpasses,
bridges, pedestrian walkways, malls, streets, curbs, gutters, sideways, streetlights, sewers, storm
drains, traffic signals, water distribution systems, pans, plazas, playgrounds, motor vehicle
parking facilities, landscaped areas, civic buildings, bus or pedestrian shelters, and transit
facilities.
The Agency is authorized to demolish and clear buildings, structures, and other improvements
from any real property owned or acquired in the Project area as necessary to carry out the
purpose of the Urban Renewal Plans.
The Agency is authorized to prepare or cause to be prepared as building sites any real property in
the Project area owned or acquired by the Agency.
The Agency is authorized to rehabilitate or cause to be rehabilitated any building or structure in
the Project area. The agency is also authorized to advise, encourage, and assist in the
rehabilitation of property in the Project area now owned by the Agency. As necessary or
appropriate in carrying out this Flan, the Agency is authorized to move or to cause to be moved
any standard or rehabitable structure or building to a location within or outside the Project .area:-
Generated increment from property taxes may be used for payment of bonds. The tax increment
may be pledged for the payment of revenue bonds issued for the Project or of general obligation
bonds, revenue bonds, or special assessment bonds issued to pay Project costs. The City may, by
resolution of its governing body, enter into a covenant for the security of the bondholders,
detailing the calculation and adjustment of the tax increment and the taxable value on which it is
based..
Devised 10/4104 Page 2 of 5
UTILIZATIOil OF FUNDSiLVING CITY -MADE TIF LOANS TO
DEVELOPER
The City Council of the City of Kalispell has the authority to assist developers in the
implementation of redevelopment projects. City Council may, at its discretion, if funding is
available provide low -interest loan funds to qualifying developers for on -site work covering:
• Landscaping
• Site Lighting
• on -site utility work and utility taps
® Parking, paving and striping
• Direct assistance in the rehabilitation, retention or development of affordable housing for
the low and very -low income residents.
Development activities such as building, plan review, design or management fees are not eligible
activities to be funded with TIC. The eligible amount of on -site development activities will be
considered as part of a 10% limit based on the total project cost. Costs to be paid with TIC
monies may not be incurred by the applicant prior to the effective date of funding approval and
the satisfaction of any conditions of such approval.
The interest and repayment terms for a low --interest loan for the above listed activities are:
Variable Interest Rate:
The interest Rate is subject to change from time to time based on changes in an independent
index which is the Prime Rate as published in the Wall Street Journal. The interest rate change
will not occur more often than the first day of the month following the annual anniversary of the
loan.
Term:
Prime with a ten year term for assistance up to $75,000
Prime with a fifteen year terns for assistance from $75,001 to $1.50,000
Prime with a twenty year term for assistance of $ 15o,o +
Al2plication Process and Requirements for Cit -made Loans
The Community Development staff will assist the developer in preparing a formal. application.
Upon submittal by the developer of all necessary information, staff will arrange for a
presentation by the Developer to the City Council at a workshop session. The following
information must be contained in the application:
> Project Description -- A. description of the project, type of development and scope of
work including:
a Plans/schematics
Revised 0I4/04 Page 3 of 5
Project schedule proposed timetable for completion of project
Project feasibility -- substantiate the market and economic feasibility of the project
> Project Financing -- A description of the financial arrangements of the project to include:
Sources of funds _- detailing terms and conditions
® Lender conunitrnents --- evidence of comxnitrnents of funds necessary for completing
the project
Cost breakdown -- estimated cost of the project
Pro forma -- projections of anticipated income, expenses, cash flow and depreciation
for the first five years of the project
Leverage Ratio -- Ratio of public to private investment
> Development Entity -- A public disclosure of the development entity and other involved
parties including information on qualifications and past experience
Financial Disclosure -- Full financial disclosure of development entity with evidence
that the developer has both the financial and legal ability to complete the proposed
project. As per adopted policy, this information will be kept confidential, subject to a
challenge of this policy in a court of law. Provide a letter from final source.
> Employment Generated -- Provide the best estimate of construction and permanent jobs
to be generated by the project and a wage/salary scale for employment created.
> Letters of intent from tenants for lease project
> Tax Generation -- The existing tax base of the property upon which. TEF assistance is
requested must be compared to the anticipated tax base resulting from the proposed
project and must demonstrate that the increase in taxes generated by proposed project
will cover TI` assistance over a period of ten (10) years.
The submission of an application to the Community development Department for tax increment
assistance begins the review process by City Council. Materials contained in the application
provide information needed to assess the merits of the project in relation to the goals and
objectives of the Urban Renewal Plan. This will allow the City Council to decide between
competing projects or determine if a proposal .has sufficient benefits to warrant assistance.
The City Council will evaluate:
a Economic Stimulus
® ,Employment Generation
® Tax Generation
® Elimination of Blight
® Financial Assistance --- other forms of financing associated with the project including
equity, lender participation, industrial development revenue bonds, and state or federal
monies will be examined to assess the need for TIF assistance.
0 Developer Past Performance
® Project Feasibility
Revised 10/4/04 Wage 4 of 5
Impact Analysis/Assessment -- This is based on enviromnental impacts, design and
dislocation associated with the project.
Special or Unique opportunities -- The extent to which the project represents a special or
unique opportunity to meet local priority needs that are consistent with economic
revitalization and urban redevelopment objectives.
Timely Completion
The Amount of TEF Assistance requested.
Leverage .Ratio -- Ratio of public to private investment
Revised 1 014104 Wage 5 of 5
1,19111-
Imm, i 1
WHEREAS,, the Kalispell City Council finds that the economy of the City of Kalispell, and
therefore the citizens of Kalispell, benefit when new businesses locate and
existing businesses expand and invest within the City limits of Kalispell and
thereby create new jobs and increase the tax base; and
WHEREAS, S, the Kalispell City Council finds that it is in the best interests of the City of
Kalispell and its citizens that there be marketing and promotion efforts as well as
some level of investment by the City to attract new business and business
expansion within the city limits; and
WHEREAS, the Kalispell City Council finds that it will be a benefit to the business promotion
efforts of the City to define the eligibility requirements for potential business
recipients of such incentives as well as to identify the types of financial incentives
that may be offered through the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of THE CITY of
KALISPELL AS FOLLOWS:
SECTION r. Businesses eligible to receive financial incentives through the City of
Kalispell to locate or expand within the City shall. -
a) be manufacturing, technology, office, professional or technical service
firms that are financially sound with balanced and prudent business plans;
and
b) meet statutory tax increment financing requirements if the business is to
be located within a TIF District or other statutory or regulatory
requirements of the underlying funding mechanism; and
c) which create at least 10 net new full-time positions; and
d) provide health care benefits to the employees; and
e) pair at least the average wage of $30,004 or the average gage for
Flathead County as determined by the Montana Department of Commerce.
SECTION H. the City shad analyze each investment opportunity on a case by case basis
and the amount and type of incentives shall correlate with the economic
impact the business investment will potentially have on the community.
SECTION III* the financial incentives that may be offered by the City include:
a) eligible costs from the tax increment financing districts;
b) participation through the City with the Montana Board of Investments
programs;
c) numerous other state incentive programs as are now or may become
available;
d) miscellaneous cost reductions or structured payment plans which will
be specified based on the end user needs and as may be approved by
Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 4TH DAY OF FEBRUARY, 2008.
ATTEST. -
Theresa White
City Clerk
:.
111111
r.:
This resolution approves a construction agreement with the State of Montana to complete a pavement
reconstruction project on US Highway 93 from Grandview Drive, north to ponderosa bane.
Kenyon moved Resolution. 5261, a resolution authorizing the Mayor of Kalispell to execute the
construction agreement of Federal .did. ]Project No. NH5-3{98}115 with the State of Montana, acting
by and through the Department of Transportation. The motion was seconded,
Plansz gage a staff report and answered questions.
luesner stated he feels this money would be better spent on the bypass because Highway 93 is still in
good shape and he will vote no in order to protest the waste of money.
The motion carried upon roil call vote with Atkinson, 13affer nan, Kenyon, Larson, Olson, Saverud
and. Mayor Kennedy voting in. favor, Kluesn.er voting against, and Gabriel absent.
Resolution 5262 defines the eligibility requirements for businesses to receive financial incentives.
Saverud moved Resolution 5262, a resolution to establish guidelines to define the eligibility of new
and expanding businesses to which the City of Kalispell may offer potential financial incentives and
to identify the types of financial incentives that may be offered by the City. the motion was
seconded.
Patrick gave a staff report and answered questions.
Hafferrnan stated this is a poor time for this to come forward. we have a major problem with housing
which is putting a strain on charitable organizations because people can't make ends meet with the wages
being paid here. He said the requirement to pay at least an average wage of $30,000 is meaningless
because the supervisors can make a lot more than the workers and the average gage can still be $30,000.
In addition, Hafferman said Section III(b) provides participation through the City with the Montana Board
of Investments programs which ``puts the taxpayers on the hook if this project tanks". He concluded by
stating he would be in favor of giving new or expanding businesses a five year tax break, but he is
opposed to handouts.
Atkinson commented we are looking for stable companies that can provide health insurance and a livable
wage. He said this document sets up guidelines that will encourage good businesses to locate here and
provide economic development. Atkinson asked Patrick to respond to Hafferman's statement that this
program would place taxpayers `'on the hook'.
Patrick stated that working with the Montana Board of Investments places the City at very little risk.
Mayor Kennedy emphasized. that these are just guidelines; tools that we have already been using. She
agreed. with Haffermana however, concerning the "average gage" and asked if there is a way to change
the language to specify a minimum full-time hourly gage.
Kalispell City Council Minutes
February 4, 2008
Page 5
Danielson noted the $30,000 is the average County wage which equates to $14.43 per hour. She said if
the Council desires, it could establish a minimum wage. For example, most communities establish a
minimum of $9.00 to $10.00 per hour even though the average wage is a little bit higher. Danielson
stated clerical positions in the .flathead valley pay an average of $20,000 to $24,000.
Larson said the City should be able to set some conditions if we are setting guidelines. He said he would
like to see a minimum of $30,004 for full time employees and $14.43 per hour for part time employees.
Mayor Kennedy suggested the resolution should state, `ta majority of employees make a minimum of
$11.00 per hour".
Olson commented that we should not be telling these businesses bow much they need to pay their
employees. He said the companies have a battle plan when they come to town and we should give these
guidelines a chance to work before making any changes.
Kenyon said instead of noting a certain amount he feels requiring a "living wage" would be adequate.
Danielson responded that a specific number helps businesses know what we are talking about and what
we are marketing.
Kenyon retorted that he can agree with almost anything except an "average" wage.
Hafferman reemphasized this is the wrong time to be giving incentives to anyone because it is ``bad news"
when we don't have a method for providing housing.
Saverud said he thinks setting a minimum wage sounds great, but it's full of pitfalls. He said there has to
be entry level areas and businesses have to have the ability to bring people in and train them without
having to pay top dollar.
There was discussion as to how to word the wage requirement.
K.l.uesner said he feels the City should be looking for Class A companies and he doesn't care if they have
to pay a high average because that's the kind of company he would life to see.
luesner moved Section I (e) be amended to Bread, "pay at least the current County wage not to
include any benefits such as health insurance, 401k, etc". The motion was seconded.
Mayor Kennedy said she feels the motion is very confusing.
Larson said the motion would require every employee be paid the County wage which is currently
$301004.
The amendment failed upon vote with Kluesner voting in favor, Atkinson, Hafferman, Kenyon,
Larson, Olson, Saverud, and Mayor Kennedy voting against, and Gabriel absent.
Atkinson moved. Section l(e) be amended to read, "pay at least the average wage of $30,004 or the
average wage for Flathead County as determined by the Montana Department of Commerce". The
motion was seconded.
Kalispell City Council minutes
February 4, -*2W008
Page 6
Hafferman stated the word "'average" is still a problem.
Kluesner said he would like to "challenge us and change it to say, pay at least a minimum wage of
$30NO'".
The amendment carried upon vote with Atkinson, Larson, Olson, Saverud, and Mayor Kennedy
voting in favor, Hafferman, Kenyon, and Kluesner voting against, and Gabriel absent,
There was no further discussion.
The main motion, as amended, carried upon roll call vote with Atkinson, Kluesner, Larson, Olson,
Saverud, and Mayor Kennedy voting in favor, Hafferman and Kenyon voting against, and Gabriel
absent,
E/86 RESOLUTION 5263 —RESOLUTION OF INTENT AND CALL FOR PUBLIC H
— TRANSPORTATION PLAN
Resolution 5263 is a resolution of intent to adopt the Kalispell Area Transportation Plan 2006 Update and
sets a public hearing for February 19.
Kenyon moved Resolution 5263, a resolution of *intent to consider adoption of the Kalispell Area
Transportation Plan 2006 update to serve as a guiding policy for transportation purposes, setting a
public hearing and directing the City Clerk to provide notice therefore. The motion was seconded.
Patrick gave a staff report and answered questions.
There was no further discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
IV I&
Resolution 5264 is a resolution of intent to amend the Kalispell Subdivision Regulations and sets a public
hearing for February 19.
Atkinson moved Resolution 5264, a resolution of intent to amend the City of Kalispell Subdivision
Regulations codified at Chapter 28 of the Kalispell Municipal Code and calling for a public hearing
and directing the City Clerk to provide notice therefore. The motion was seconded.
Patrick gave a staff report and answered questions.
There was no further discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
Kalispell City Council Minutes
February 4, 2008
Page 7
ONTANA DEPARTMENT OF COMMERCE
BUSINESS RESOURCES DIVISION
BIG SKY ECONOMIC DEVELOPMENT TRUST FUND
PRIMARY SECTOR WORKFORCE TRAINING GRANT" PROGRAM
MEEKLY WAGE SHEET: EFFECTIVE OCTOSER 1, 2009
Montana Average Wage by County
2008 Annual Average: All Industries
County
Annual Wage a
Weekly Wage
Hourly Wage
BEAVERHEAD COUNTY
$
28,964
$
557
$
13.93
BIG HORN COUNTY
$
33,488
$
644
$
16.10
BLAINE COUNTY
$
31,252
$
601
$
15.03
BROADItiIATER COUNTY
$
29,432
$
566
$
14.15
CARBON COUNTY
$
25,428
$
489
$
12.23
CARTER COUNTY
$
21,684
$
417
$
10.43
CASCADE COUNTY
$
31,980
$
615
$
15.38
CHOUTEAU COUNTY
$
25,064
$
482
$
12.05
.... . ..
CUSTER COUNTY
....
$
28,704
$
552
$
13.80
DANIELS COUNTY
$
28,392
$
546
$
13.65
DAWSON COUNTY
$
30,680
$
590
$
14.75
DEER LODGE COUNTY
$
26,572
$
511
i $
12.78
FALLON COUNTY
$
42,848
$
824
$
20.60
FERGUS COUNTY
$
29,172
$
561
$
14.03
FLATHEAD COUNTY
$
32,136
$
618
$
15.45
GALLATIN COUNTY
$
33,176
$
638
$
15.95
GARFIELD COUNTY
$
19,500
$
375
$
9.38
GLACIER COUNTY
$
31,252
$
601
$
15.03
.. .... .....
GOLDEN VALLEY COUNTY
$
24,648
$
474
$
11.85
GRANITE COUNTY
$
24,180
$
465
$
11.63
HILL COUNTY
$
29,796
$
573
$
14.33
JEFFERSON COUNTY
$
31,460
$
605
$
15.13
JUDITH BASIN COUNTY
$
23,452
$
451
$
11.28
LAKE COUNTY
$
29,224
$
562
$
14.05
LEWIS AND CLARK COUNTY
$
36,764
$
707
$
17.68
LIBERTY COUNTY
$
24,024
$
462
$
11.55
LINCOLN COUNTY
$
29,692
$
571
$
14.28
MADISON COUNTY
$
27,144
$
522
$
13.05
MCCONE COUNTY
$
27,144
$
522
$
13,05
MEAGHER COUNTY
$
23,036
$
443
$
11.08
MINERAL COUNTY
$
23,192
$
446
$
11.15
MISSOULA COUNTY
$
33,436
$
643
$
16.08
MUSSELSHELL COUNTY
$
26,312
$
506
$
12.65
PARK COUNTY
$
28,496
$
548
$
13.70
PETROLEUM COUNTY
$
18,564
$
357
$
8.93
PHILLIPS COUNTY
$
25,792
$
496
$
12.40
PONDERA COUNTY
$
27,612
$
531
$
13.28
POWDER RIVER COUNTY
$
20,748
$
399
$
9.98
POWELL COUNTY
$
32,916
$
633
$
15.83
PRAIRIE COUNTY
$
26,572
$
511
$
12.78
RAVALLI COUNTY
$
28,496
$
548
$
13.70
RICHLAND COUNTY
$
37,440
$
720
$
18.00
ROOSEVELT COUNTY
$
29,588
$
569
$
14.23
ROSEBUD COUNTY
$
39,572
$
761
$
19.03
SANDERS COUNTY
$
25,636
$
493
$
12.33
SHERIDAN COUNTY
$
25,896
$
498
$
12.45
SILVER BOW COUNTY
$
34,476
$
663
$
16.58
STILLWATER COUNTY
$
43,212
$
831
$
20.78
SWEET GRASS COUNTY
$
43,056
$
828
$
20.70
TETON COUNTY
$
27,716
$
533
$
13.33
TOOLE COUNTY
$
33,696
$
648
$
16.20
TREASURE COUNTY
$
22,984
$
442
$
11.05
VALLEY COUNTY
$
27,924
$
537
$
13.43
1NHEATLAND COUNTY
$
22,984
$
442
$
11.05
W I BAUX COUNTY
$
25,428
$
489
$
12.23
YELLOWSTONE COUNTY
$
36,504
$
702
$
17.55
STATE AVERAGE 1
$
33,280
$
640
$
16.00