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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 immediately and destroy this document and attachments without making any copy or.,reproduction of any kind. 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.