3. Airport TIF Request - Avail-TVNCity of Kalispell
Urban Renewal Agency
201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
MEMORANDUM
To: Mayor Tammi Fisher
And Kalispell City Council
FROM: Jane Howington, City Manager
Wade Elder, Revolving Loan Fund Manager
SUBJECT: Avail-TVN Request for South Kalispell 1 Airport TIF.
MEETING DATE: November 15, 2010 — Regular Council Meeting.
BACKGROUND: The Urban Renewal Agency (URA) met at four meetings, September
153 2010, September 29, 2010, October 13, 2010 and October 27, 2010 to consider a
request of Avail-TVN from the City of Kalispell's South Kalispell/Airport Tax Increment
Financing (TIF) district. The request is in the amount of $21,050.66. Funds are requested
for running a fiber optic line under Highway 93 that is to be used for improvements to the
property located at 2240 US Highway 93 South, Kalispell, MT 59901.
The URA met on 09/15/10 to discuss the request and determined that more information
was needed. The first of two concerns was if any satellite dishes were to be installed and
if so would they be allowed by the airport or interfere with the operations of the airport.
The second concern was why CenterLink would not cover this installation as doing so
would increase their revenues. This item was tabled until the 09/29/ 10 meeting for further
information.
The URA met on 09/29/10 to review the request by Avail-TVN at this meeting there was
discussion regarding the questions posed at the 09/15/10 meeting. wade Elder, City
Revolving Loan Fund Manager provided a memo indicating contact had been made with
Fred Leistiko, City Airport Manager and he did not see any problems with the dishes
being installed provided they did not install them on the roof and interfere with the height
restrictions, which Avail-TVN indicates is not a problem There were a number of
conversations with CenturyLink employees that gave conflicting views as to CenturyLink
covering the cost of this proposed expense or not. It was decided that at the next meeting
we would request the presence of both CenturyLink and Avail-TVN to determine both
company's positions.
The URA met on 10/13/10 to review the request by Avail-TVN. In attendance at the
meeting were Jeremy Ferkin and Debbie Dillon from CenturyLink. At this meeting the
discussion centered around CenturyLink's position on the matter. CenturyLink indicated
they had previously run a fiber optic line on the east side of Highway 93 but there is no
fiber service on the west side of highway 93. It is CenturyLink's policy not to cover the
cost of permits and boring under the highway. Michael Kazmier, from Avail-TVN, was
also invited to this meeting but could not attend. The URA discussed this and felt the
improvements proposed are in the TIF District and boring underground would provide a
public benefit to not only this business but also other businesses in the future that are on
the west side of Highway 93. There was also discussion about future good paying jobs
that Avail-TVN is planning on bringing to this new location. There are plans of bringing
6 or more jobs with salary ranges from a low of $35,000 to a high of $165,000. Because
of CenturyLink's recent merger with Qwest and the addition of this fiber line they are
now able to provide technical services that were not available previously and would now
allow Avail-TVN to operate this segment of their business out of Kalispell and open
these positions. The Airport TIF District has $825,460 of cash available at the beginning
of the 2010/ 11 Fiscal year and an ending cash position of $1,336,887 indicating adequate
funds available for this request. The URA was unanimous in its decision to forward this
to the City Council with a recommendation of approving this request although they
would have liked to have had Avail-TVN present to answer any questions they may have
had of Avail-TVN. The URA did request an opinion from. the City Attorney to see if they
could charge a latecomer fee to future individuals or companies that would want to access
the fiber line later.
The URA. met on 10/27/ 10 with Michael Kazmler of Avail-TVN to discuss their request
for TIF from the South Kalispell/Airport TIF. Mr. K.azmier reviewed Avail-TVN's plans
of moving to their new location and that time was of the essence due to the construction
season. Mr. Kazrnier also expressed his appreciation to the URA for their consideration
of this request. The URA members were sent a memorandum from City Attorney Charlie
Harball indicating it is not able to create or administer a latecomer agreement as the City
does not administer this line as it does for instance for the water or sewer utilities. The
URA. also requested Avail-TVN to return any rebates by CenturyLink in future to the TIF
to recapture the $21,050.66 outlay.
RECOMMENDATION: A motion to approve the Tax Increment Financing request
of Avail-TVN in the amount of $21 ,05 0.66 to bore a fiber optic line under M4hway 93 to
the west side would be in order.
FISCAL IMPACTS: A reduction of the South Kalispell/Airport TIF District
fund.
ALTERNATIVES; As identified in the URA has tried to consider other
funding sources from. CenturyLink but this funding source is not available. The other
source is the applicant paying for the underground boring.
Respectfully submitted,
Wade Elder, Revolving Loan Fund Manager ane Howington, City Manager e.
0
City of Kalispell
Urban Renewal Agency
201 '1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
October 281, 2010
Jane Howington, City Manager
City of Kalispell
201 Vt Avenue East
Kalispell, MT 59901
RE: Avail-TVN request for City of Kalispell Tax Increment Funds.
Dear Jane. -
The Urban Renewal Agency (URA) met at four meetings, September 15, 2010,
September 29, 2010, October 13, 2010 and October 27, 2010 to consider a request of
Avail-TVN from the City of Kalispell's South Kalispell/Airport Tax Increment Financing
(TIF) district. The request is in the amount of $21,050.66. Funds are requested for
running a fiber optic line under Highway 93 that is to be used for improvements to the
property located at 2240 US Highway 93 South, Kalispell, MT 59901.
The URA met on 09/ 15/ 10 to discuss the request and determined that more information
was needed. The first of two concerns was if any satellite dishes were to be installed and
if so would they be allowed by the airport or interfere with the operations of the airport.
The second concern was why CenterLink would not cover this installation as doing so
would increase their revenues. This item was tabled until the 09/29/10 meeting for further
information.
The URA met on 09/29/ 10 to review the request by Avail-TVN at this meeting there was
discussion regarding the questions posed at the 09/15/10 meeting. Wade Elder, City
Revolving Loan Fund Manager provided a memo indicating contact had been made with
Fred Leistiko, City Airport Manager and he did not see any problems with the dishes
being installed provided they did not install them on the roof and interfere with the height
restrictions, which Avail-TVN indicates is not a problem There were a number of
conversations with CenturyLink employees that gave conflicting views as to CenturyLink
covering the cost of this proposed expense or not. It was decided that at the next meeting
we would request the presence of both CenturyLink and Avail-TVN to determine both
company's positions.
The URA met on 10/ 13 / 10 to review the request by Avail-TVN. In attendance at the
meeting were Jeremy Ferkin and Debbie Dillon from CenturyLink. At this meeting the
discussion centered around CenturyLink's position on the matter. CenturyLink indicated
they had previously run a fiber optic line on the east side of Highway 93 but there is no
fiber service on the west side of highway 93. It is CenturyLink's policy not to cover the
cost of permits and boring under the highway. Michael Kazmier, from Avail-TVN, was
also invited to this meeting but could not attend. The URA discussed this and felt the
improvements proposed are in the TIF District and boring underground would provide a
public benefit to not only this business but also other businesses in the future that are on
the west side of Highway 93. There was also discussion about future good paying jobs
that Avail-TVN is planning on bringing to this new location. There are plans of bringing
6 or more jobs with salary ranges from a low of $35,000 to a high of $165,000. Because
of CenturyLink's recent merger with Qwest and the addition of this fiber line they are
now able to provide technical services that were not available previously and would now
allow Avail--TVN to operate this segment of their business out of Kalispell and open
these positions. The Airport TIF District has $825,460 of cash available at the beginning
of the 2010/11 Fiscal year and an ending cash position of $1,336,887 indicating adequate
funds available for this request. The URA was unanimous in its decision to forward this
to the City Council with a recommendation of approving this request although they
would have liked to have had Avail-TVN present to answer any questions they may have
had of Avail-TVN. The URA did request an opinion from the City Attorney to see if they
could charge a latecomer fee to future individuals or companies that would want to access
the fiber line later.
The URA met on 10/27/10 with Michael Kazmier of Avail-TVN to discuss their request
for TIF from the South Kalispell/Airport TIF. Mr. Kazmier reviewed Avail-TVN's plans
of moving to their new location and that time was of the essence due to the construction
season. Mr. Kazmier also expressed his appreciation to the URA for their consideration
of this request. The URA members were sent a memorandum. from City Attorney Charlie
Harball indicating it is not able to create or administer a latecomer agreement as the City
does not administer this line as it does for instance for the water or sewer utilities. The
URA also requested Avail-TVN to return any rebates by CenturyLink in future to the TIF
to recapture the $21,050.66 outlay.
Sincerely,
Kalispell Urban Renewal Agency
Marc R.old
Chairman
Attachments: Application from Avail-TVN
E-Mail from Michael Kazmier dated 05/12/10
Memo from wade Elder for 09/29/ 10 URA Meeting
E-Mail from Fred Leistiko dated 09/22/10
Memorandum. from City Attorney dated 10/15110
2
City of Kalispell
South Kalispell/Airport
Tax Increment Financing Application Process
IMPORTANT: The material included below outlines the Tax Increment Financing application
process and the responsibilities of the Applicant and the City of Kalispell. Please review this
information carefully before submitting the application forms or finalizing your development plans.
Failure to receive ap oval of a cony feted Application BEFORE ac uisition of property and
or construction be s may affect the Applicant's ell ibilit y for in -tax Increment Finance
assistance from the City of Kalis ell.
I
Tax Increment Financing (TIF) is an important element of economic development in the City of
Kalispell as a means to finance development activities. The TIF program operates by first
establishing a base year taxable value for all properties within the designated boundary. In the case
of the Airport/Athletic Complex TIF the base year is 1997. Property taxes from that district
continue to be paid to all taxing jurisdictions, ie., schools, county, etc. on the basis of the 1997 base
year valuation. All increases in property taxes in the District above this base valuation due to new
development or reappraisals are assigned to the City of Kalispell to be used to finance eligible
activities within the Airport/Athletic Complex TIF. Pursuant to Montana Code Annotated, Title 7,
Chapter 15, Part 42, as amended (the "TIF Act"), the City of Kalispell. established the
Airport/Athletic Complex TIF as an Urban Renewal Tax Increment District. The Airport/Athletic
Complex TIF was amended by -the Kalispell City Council in Resolution adopted
removing the Athletic Complex portion of the TIF and amending it to include the southern entrance
into the City of Kalispell and the U.-S. Highway 93 corridor as it appears in the amended Urban.
Renewal Plan dated , and adopted by the Kalispell City Council under Resolution
The South Kalispell/AiKport Urban Renewal TIF District. By Resolution No. , adopted
(the "South Kalispell/Airport Urban Renewal TIF Intent Resolution"), the
Kalispell City Council declared its intention to establish the South Kalispell/Airport Urban Renewal
TIF District for the purpose of providing a financial mechanism to provide the necessary
infrastructure support to encourage the growth of secondary, value -adding businesses in the City
and the development of an expanded and updated airport complex.
The tenants of the Airport portion of the District must be aviation oriented businesses, while the tenant of the
South Kalispell portion of the District can be any business that can meet the requirements of the Airport
Affected Area Ordinance adopted by the City of Kalispell and Flathead County.
1
Applications for TIE assistance in the South Kalispell/Airport Urban Renewal Plan are subject to
program eligibility analysis and project review criteria listed below. In addition, project
applications will be accepted and processed in the order in which they are received and approved
based on the availability of funds.
ELIGIBLE ACTIVITIES
Property must be within the City Limits of the City of Kalispell; be located within the Urban
Redevelopment Plan area; and/or located on the City Airport property to be eligible for funding
activities. Pursuant to Section 7-15-4290 of the TIF Act, the City may pledge tax increment derived
from the District to the payment of special assessment bonds issued to pay district redevelopment
costs. Eligible costs to be paid by the City with tax increments include public improvements
authorized to be made pursuant to the Special Improvement District (SID) Act. Certain tax
increment revenues derived from the South Kalispell/Airport District will be available, to the extent
provided herein, for the payment of and pledged to the cost of the Improvements or paying on the
Bonds (as more fully described below).
Anyone seeping TIF assistance from the City of Kalispell must submit a written application. The
following procedure has been developed to expedite the review of TIF funding requests:
1. Initial Contact. Contact the City of Kalispell, Airport Department (if on Airport Property) or
the Community and Economic Development Department (if off Airport Property), 201 First
Avenue East, to discuss the project and determine eligibility for TIF assistance.
2. Com fete an Application. The Applicant must prepare an application for each funding
request. Community and Economic Development (CED) Department staff or the City
Airport Manager will assist the Applicant in preparing an application. For all TIF requests
the Applicant must complete a "Developer's Statement of Qualification and Financial
Responsibility" which includes submittal of personal financial statements.
3. Staff Review. Upon submittal of all necessary information, the City staff will review the
merits of the project and the need for funding. At any point in the review process the staff
may request more information of the Applicant or solicit comment on the project from other
public agencies. Items included in personal financial statements will not be subject to public
review or presentation to or comment by other agencies.
4. Incentive Agreement.. If TIF assistance is approved, the City of Kalispell and the .Applicant
must execute a legally binding Incentive Agreement which establishes the terms and
conditions of the start and completion of the project and may require the Applicant to
guarantee repayment of TIF assistance if the terms of the Agreement are violated by the
Applicant.
IMPORTANT NOTE: Costs to be paid with TIF monies may not be incurred by the
Applicant prior to funding approval and the satisfaction of any conditions of such
approval.
N
Materials contained in TIF applications are used to assess the merits of projects in relation to the
goals and objectives of the South Kalispell/Airport redevelopment plan. To measure the public
benefit derived from the project, the City evaluates projects based on the following criteria. Each
project is judged on its own merit; therefore, no weight is given to any of the criteria. However, the
first six criteria are the most important in evaluating projects.
1. Economic Stimulus: The amount of economic activity to be generated by the project is
assessed, as well as the leverage ratio of public to private investment. In general, the limit
of participation in any one project is 10% of the construction/rehabilitation costs, exclusive
of acquisition cost. Projects clearly demonstrating extraordinary benefits to the Airport or
the entrance corridor to the City may, at the discretion of the City, receive additional TIF
assistance for eligible items. All applications should contain credible, measurable
information substantiating the project's economic stimulus to the Airport and the City.
2. Tax Generation: The increase in taxable value due to new construction/rehabilitation is
estimated by the City to determine tax increment generation.
I Employment Generation: Total employment generated by the project assessed in terms of
new permanent and part-time jobs, wage levels and benefits provided.
4. Impact Assessment: The extent of both positive and negative environmental impacts,
appropriateness of the project design, and impact on existing businesses.
5. Financial Assistance: Other forms of financing available to the Applicant. Lender
participation, industrial development revenue bonds, and state and federal grant monies, for
example, are examined to assess the need for TIF assistance.
6. Devel2per_,,Ability to ,Perform: An assessment of the Applicant's capability to undertake the
relative complexities of the project based on past performance on similar projects.
7. Timely. -Completion: The feasibility of completing the project according to the Applicant's
project schedule.
8. Payment of Taxes: All property taxes, special improvement district assessments, and other
assessments on the project property must be paid to date.
9. On Airport Projects: All projects that are located on Airport Property must meet standards
established by the Federal Aviation Administration (FAA) and the City Airport Standard
Operating Procedures .
3
Project Name:
City of Kalispell
South Kalispell/Airport
fax Increment Financing' (TIF) Application
Date Submitted:
Name and title: Michael S. Kazmier, Chief Technology Officer
Business name: Avail-TVN
Phone number: 406-752-6555 x 1004
Email address: mkazmier@avall-tvn.com
1. Business name: Avail-TVN
2. Address: 2240 US H4,rhway.. 93 South Kalis ell MT 59901
3. Telephone number:
40.-752-6555 x 1004
PROJECT INFORMATION
1. Property address: =2240 US Highway 93 South Kalispell MT 59901
2. Ownership: S BL EnteEprises Limited Partnership and Zander EntelpTises Limited
Partnership
Address: 700 Dell Place Bozeman MT 59715
I If property is not owned by the Applicant, list leasehold interests: (Attach evidentiary materials.)
Name: Avail-TVN holds a 10 year lease on the ro ert
Address :
4. Existing/proposed businesses: Avail-TVN Research Develo rnent Ewzineering and
Operations
4
Business description: _Avail-TVN is a provider of digital media services, workingwith
over 300 content producers LESPN, Disney, Warner Brothers, Fox, Turner, etc) and 300
service providers (Comcast, Dish Network, Bresnan, Mediacom, Suddenlink, etc). Our
services include the acquisition, preparation, distribution, monetization, security, reporting,
and settlement of premium digital video services. The Kalispell office is primarily
responsible for the research and development activities and a portion of the engineering
activities of the company
Employment: Number of retained positions: FTE: 21 PTE: o
Number of new positions to be created: FTF: 6+ PTE*- o
Average starting wage $40 /Hour Average wage $ Hour
Attach an Excel spreadsheet briefly listing and describing the job classifications with the
average wage noted by each job classification. Provide a ramp --up schedule of when the
positions are anticipated to be created and filled.
The,..pri.maKyJobs enabled through the fiber connection provided by this TIF funding include
Software Engineerim Video EnprineerinFr, and Network Operations personal. These
positions primarily function as tier 1 and tier 2 technical hone support for customers of the
Avail-TVN network. Local Avail-TVN mana ement is hopeful that improved connectivit
will allow for additional operational functions to be located in the Kalispell office as
opposed to other Avail-TVN offices. This could include the site functioning as a backu
transmission facility,in the future a satellite a link facility with a roxirnatel 20M worth
of equipment and numerous operational mrsonnel .
Provide a synopsis of the fridge benefits provided to employees.
The coMpany. provides full medical dental and vision insurance a matching 401 K tuition
reimbursement and various other benefits includingaccess to a health savings account.
5. Architectural firm: NIA
Address:
Contact:
6. Description of project: (Attach narrative explanation.)
Avail-TVN is requesting assistance with the construction of a fiber optic cable from the east side of Highway 93 to the
West side at approximately the Kelly Road intersection. Avail-TVN has recently leased the building formerly known as
the Montana Furiture Gallery. Although the company only requires approximately 8,000 square feet of office space, Avail-
TVN leased the entire facility with the anticipation of future growth enabled by the connectivity to the company's Los
Angeles, CA based offices that would be enabled with the fiber connection from Century Link.
7. Rehab ilitationlconstruction plans: (Attach narrative explanation.
Avail-TVN is currently undergoing a full interior remodel of the facility, including the addition of a 1500 square foot data
center.
S. Project schedule: (Attach time line or schedule through completion.)
The project is currently underway with a scheduled completion date of December 1, 2010
I. Lot #
2. Facility
3. Landscaping
4. Equipment
5. other
e�
rJ
$_450,000
$_250,000
$21,050_
Project Development Costs 7219050
PROJECT FINANCING
Please complete Sources of Funds detail and summary below.
Developer Eauity
Cash Invested $ 700,000
Land &Buildings $
Other (specify)
Subtotal $ 700,000
Leader Commitments (Attach evidence i.e. Letters of Credit or other documentation.)
Lender Loan Amount Interest Term
$ % yrs
s
2J
Total Loan Amount
TIC" bequest
El igible activity
Amount requested
Applicant
1. Larne:
Address:
yrs
Payment/Period
$ /Month
$ /Month
Job Creation
21,050.66 — the fiber construction costs from Century Link
DEVELOPER'S
RESPONSIBILITYAND FINANCIAL
2. If the Applicant is not an individual doing business under his/her own name, the applicant
has the status indicated below and is organized or operating under the laws of
A corporation
A nonprofit or charitable institution or corporation
A partnership mown as
7
other (Explain)
Date of organization:
3. Names, addresses, position titles, and nature and extent of the interest of the officers and
principal members, principal shareholders, investors, or partners of the Applicant:
Name and Address Nature and Extent of Interest
Financial Condition
1. Provide a current financial statement for each private entity involved in the project.
Documentation of financial capacity may include net worth statements, balance sheets, or
profit and loss statements. (This information will be kept confidential, subject to challenge in a court of law.)
2. Has the Applicant or any individual or entity affiliated with the development of this project
been adjudged bankrupt, either voluntarily or involuntarily, within the past ten years?
No Yes if yes, list date, place, and under what name:
3 . 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 past 10 year?
No Yes if yes, list the date, charge, place, court and action taken for each case:
1. Identify the construction contractor or builder who will undertake this project:
Name:
Address:
P
2. Has such contractor or builder ever failed to qualify as a responsible bidder, refused to enter
into a contract after an award has been made, or failed to complete a construction or
development contract within the last to years? No Yes If yes, explain:
CERTIFICATION
I (we), (please print),
Certify that the statements and estimates within this Application as well as any and all
documentation submitted as attachments to this Application under separate cover are true and
correct to the best of my (our) knowledge and belief.
Signature
Title
Address,
Date
Marne
Signature
Title
.Address
Date
Return to:
City of Kalispell
Community & Economic Development Department
201 I't Avenue Fast
Kalispell, MT 59901
406-758-7740
comdev@kalis ell.corn
Wade Elder—
From: Michael Kazrnier [mkazmier@avail-tvn.com
Sent: Thursday, August 12, 2010 2: 1 5 P
To: Wade Eider
Subject: Fd: Fiber connectivity to new office location
Made, here was the Letter I sent to kelli. I could put this on letter head and send it to
the City as well if that is helpful. Thanks again for taming the time to cone by the office
yesterday. I just got more pressure today to see if we could reduce space here so getting
help in securing this location and making Kalispell a bigger part of our company's operations
is very critical right now!
Best,
W -Mike
Begin forwarded message:
From: Michael Kazmier <mkazmier avail-tvn. com<mailto:mkazmier@avail-tvn:com>>
Date: July 30, 2010 4 : 31: 51 PM MDT
To: Kellie Danielson<kellie@dobuslo.nessinmontana.com<mailto:kellie@dobusinessinmontana.com>>
Subject: Fiber connectivity to new office location
Hello Kellie,
Thank you for the phone call earlier today around our need for help with connecting to
4r-enturyLink' s metro --ethernet fiber ring. The addition of this capability to our office has
some pretty staggering impacts that will positively impact Kalispell and Montana as a whole,
if I can find a way to get it done. The challenge is in the $21,000 construction cost from
CenturyLink to pull the fiber from the opposite side of Highway 93,
First, a little background context. As you know, do to numerous reasons such as access to
capital., mergers and acquisitions, my company has primarily expanded outside the state of
Montana. However, in 7 short years, we have grown from one employee (me) to 22 local
employees and 180 total employees within the company. our core office is currently located
between two locations in California (Sherman oaks and Burbank). The California locations are
key because currently they provide key operational and technical capacity as well as customer
contact.
our business is providing digital media services. These are essentially everything that
happens to digital media (primarily video programming) between post production and consumer
consumption. we provide aggregation, distribution, processing, reporting, settlement,
marketing and numerous other services to over 200 content providers and over 300 service
providers, including CenturyLink and Bresnan here in Montana (although the MT branch of
CentruyLink does not offer video services).
Until recently, it has not proved technically possible or economical to locate may of our
company's functions here in Montana. Today, about half of our research and development
efforts take place in Kalispell and about 1/5th of our affiliate support group is located
here. All other functions are outside of the area. With the potential connectivity provided
by CenturyLink, we would be able to house increased functionality here including more -of the
engineering, research and development team as well as an increased operational team presence.
I am also hopeful that the connectivity will allow Kalispell to become our primary disaster
recovery location and, over the next several years, expand to become our secondary
transmission and origination facility. If we can expand to become this backup location, we
I
would create around 20 jobs for that function alone (currently slated to expanded in 2012 to
full backup capabilities)
Currently, the company has approximately 12 job openings ranging 'in salaries from $35, 000 to
165, 000 annually. Currently only 2 of these positions are to be placed in Kalispell, with
this infrastructure in place, we would open f additional positions to the Kalispell location,
and that is immediate! Longer term, I am hopeful to move our customer service and network
operations centers (14 employees) to Kalispell as our employee base here is well suited for
these roles.
The reason I require help is that we have currently made the decision to expand the new
facility from 8,000 sqft to 14,000 sgft . The additional space was acquired because we have
opted to NOT outsource some electronic assembly currently performed in Kalispell as well as
to allow for better employee conditions (more space) and anticipate our continued growth in
this market. As a result of this expansion, I am already over $100,000 over budget for the
year and simply cannot go back to the board ask for more. But this connectivity is key to
enabling this office location and accelerating our growth plans.
Avail-TVN (and formally Auroras) have been a staple in the Kalispell area for the last 7
years. As you know, I try to give a lot back to the area as I work on numerous organizations
like EBIA to promote business interests in the area. I have been intimately involved .in
education through advisory roles with FVCC and School district 5 and often provide guest
lectures at the MBA program at the university of Montana. I speak at various- events
throughout the state and nation promoting this area and my decision to base a business here,
and do so on ray own expense.
In any 7 years of business here (well, 10 really as this is my second company I have started)
I have never asked for or received assistance from the community to grow my business. I have
arrays -Found ways to bootstrap the effort and get it done. Unfortunately, I have run out of
ideas to cover the $21,000 fiber construction cost that CenturyLink is charging to bring
connectivity across [highway 93 for our use. I am very excited to have you help me try to
-Find a way to accomplish this, and will certainly continue to assist in any way I can.
Thank you again for time and efforts.
Best regards,
Mike Kazmier
Michael S . Kazmier
Chief Technology Officer Avail-TVN
275 Corporate Drive, Suite 800 1 Kalispell MT 59901
Phone: +1 406.752.6555 x1004 I Cell: +1 406.471.4039
Email: mkazmier@avail--tvn. com<x_msg: //35O0/mkazmier@avail--tern. eom> Web: www.avai'l-
tvn.com<http://www.avail-tvn.com/>
Michael S. Kazmier
Chief Technology Officer Avail-TVN
275 Corporate Drive, Suite 80 " Kalispell MT 59901 �
Phone: +1 406.752.6555 x1004 ] Ce11: +1 406..6471.4039
Email: mkazmier@avail-tvn.com Web: www.avail-tvn.com<http://www.avail-tvn.COM>
PJ
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: Avail-TVN TI F Request.
MEETING DATE: September 29, 2010 -- Regular URA Meeting.
BACKGROUND: At the 09/15/10 URA meeting we went through a TIF request from Avail-TVN for
$217050.05. It was discussed that further investigation was requested covering the following areas.
1.) To see if Avail is planning on putting up satellite dishes and if they are allowable in the airport
restricted zone. I E-Mailed Fred and he has indicated they are not a problem for receiving signals but
there may be an issue with height restrictions if they were put on top of the building. Mike has verbally
indicated they will not be put on the building but put on the ground. (Fred's E-Mail attached)
2.) I have been in contact with Debbie Dillon also at CenturyLink and talked with her about the proposed
project. I asked her a couple of questions.
■ Why CentruryLink would not pay the bill for this since they are getting the increased business
from Avail. Debbie's response was it is only speculated to be increased business and they have
not seen it yet. CenturyLink also does not expect in the near future any other customers in the
area that needing a fiber hook-up.
■ I asked her if she would consider refunding any or all of the cost of running the fiber if Avail's
business picks up as expected. Debbie said she would check into this and would try to have an
answer for me on Monday 09/27/10.
Page 1 of 1
Wade Elder
From: Fred Leistiko
Sent: Wednesday, September 22, 2010 11:19 AM
To: Wade Elder
Subject: RE: Avail-TVN TV Dishes.
Wade:
The receiver/transmitters are not a problem. Any height addition above the current building height could be a problem
and must be looked at.
Fred A. Leistiko
Airport Manager
City of Kalispell -
P.O. Box 1997
Kalispell, MT 59903
406-250-3065
From: Wade Elder
Sent: Tuesday, September 21, 2010 2:58 PM
To: Fred Leistiko
Subject: Avail-TVN TV Dishes.
Fred;
Stop by my desk or give me a call regarding Avail-TVN. They are looking to move into the old furniture store located at
2240 US Highway 93 South & putting about 5 TV receiving dishes in. My question is if they cause any problems for the
airport. My conversation with Mike Kazmier today indicates they are receiving only & do not send any signals.
Thanks
Wade
Wade E. Elder
City of Kalispell /Revolving Loan Fund Program Manager
201 1st Avenue East
Kalispell, MT 59901
Office: 406-758-7738
Fax: 406-758-7758
welder@kalispeN.com
The information contained in this document and attachments is confidential and,intended only for the person(s) named.
above. if you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or any
other use of the information is strictly prohibited. If you have received this document in error, please notify the sender
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1 _
1
:1 t
T00 wade Elder
From: Charles A. Harball, Kalispell City Attorney
Subject: Inquiry Regarding Latecomer Agreements
Wade Elder asked that I provide some input into a discussion the Urban Renewal
Agency is having regarding the request for TIF consideration that a potential
investor has made as it regards the costs of running a fiber optics line under a
roadway to access its business and potentially other users on that side of the road.
It has suggested that perhaps the City could enter into a sort of latecomer
agreement by which the applicant would pay the initial costs of the installation and
then recoup its costs from other users as they hook on to the line.
I understand the thought process and the intent of this suggestion, but
unfortunately, the City is not in the position to be able to create or administer such
an agreement. The City does have latecomer agreements in place that do reimburse
investors for installing city infrastructure that benefits other users. However, the
City can only do that for its own utilities that it administers, such as sewer and
water. It is not in the position to be able fashion any similar agreement controlling
a utility that is owned and administered by another entity, such as Centurylink. At
most, the City could recommend to that utility and the applicant that they consider
such an arrangement between the two of them.