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1. Resolution 5544 - Resolution of Intent to Amend the West Side Urban Renewal Plan & Call for Public HearingCharles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 TO: Mayor Tammi Fisher and Kalispell City Council Tel 406.758.7709 Fax 406.758.7771 charball@kalispell.com FROM: Charles Harball, City Attorney SUBJECT: Resolution No. 5544 — a Resolution Calling a Public Hearing on a Proposed Modification of the West Side Urban Renewal Plan To Approve Certain Projects BACKGROUND: On January 4, 2012, the City Council, by motion and upon recommendation of the Urban Renewal Agency, approved certain projects that may be included in the West Side Urban Renewal District. Resolution No. 5544 places these projects before the public for its consideration and comment at a public hearing scheduled for the regular City Council Meeting on January 23, 2012. Evidence and public comment gathered at the public hearing will be considered by the Council for the first reading of an ordinance that same date modifying the Urban Renewal Plan to include the new projects. RECOMMENDATION: That City Council give consideration to and pass Resolution No. 5544 calling for a public hearing. FISCAL IAWACTS: There are no fiscal impacts to calling a public hearing. Respectfully submitted, Charl"arball�City Attorney RESOLUTION CALLING A PUBLIC HEARING PROPOSED MODIFICATION PROJECTSOF THE KALISPELL, MONTANA URBAN RENEWAL PLAN TO APPROVE CERTAIN URBAN RENEWAL PROJECTSAND TO FINANCE THE PROJECTS THROUGH THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS OR BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. 1.01. The Council, pursuant to Ordinance No. 1259, (the "Original Ordinance"), adopted on March 17, 1997, created the West Side Urban Renewal District as an urban renewal district (the "District") and approved the West Side Urban Renewal Plan (the "Plan") for the District containing a tax increment financing provision all as set forth in the Ordinance. 1.02. The Plan identifies as Urban Renewal Projects the Gateway West Mall Redevelopment, the North Meridian Neighborhood Plan, the Meridian Road Construction Plan, various infrastructure improvements, including storm drainage flood plain management, and expansion of water and sewer mains for the area lying south of U.S. Highway 2 East of Meridian Road to encourage development. 1.03. The Plan has been in continuous existence since adoption. 1.04. The Council, pursuant to Ordinance No. 1704, (the "2011 Ordinance"), adopted on November 21, 2011, amended the boundaries of the District and approved amendments to the Plan (the "Amended Plan"). 1.05. The Council, pursuant to Ordinance No. 1347 (the "2000 Ordinance"), adopted on February 7, 2000, amended the Original Ordinance to provide that "The Council may modify and amend the Plan, including modifications and amendments to designate and approve urban renewal projects to be undertaken pursuant thereto, excepting modification involving the addition or deletion of land from the Area, by enacting an ordinance providing for and setting forth the modification and amendment, after a public hearing, notice of said public hearing on the proposed modification or amendment shall be given in the official newspaper once a week for two consecutive weeks preceding the hearing." 1.06. The City's adoption of the Amended Plan by the 2011 Ordinance was done in conformance with the provisions of Montana Code Annotated, Title 7, Chapter 15, Part 42, as amended (the "Urban Renewal Act"). The provisions relating to amendments to the Urban Renewal Act do not apply to amendments to the Plan to add urban renewal projects since such amendments may be made in accordance with the provisions of the Original Ordinance as amended by the 2000 Ordinance. 1.07. Based on recent activities and work by the City staff with respect to property in the District, the City anticipates that there will be sufficient development in the District to operate sufficient tax increments to enable the City to issue its tax increment urban renewal district revenue bonds or notes (the "Bonds") in an amount sufficient to enable it to fund various urban renewal projects identified in the Plan. Section 2. Projects. The City proposes to approve the following capital infrastructure projects as Urban Renewal Projects: a. Improvements to the Meridian and Appleway intersection and such portions of the arterials leading to the intersection as necessary to increase the functionality and safety for vehicular and pedestrian traffic; and b. Capital improvements to the water main for the west end of West Colorado as well as from West Colorado east from 5`" Avenue WN to U.S. 93 then south to West Utah Street for the purposes of improving flows for fire protection in that neighborhood; and C. The acquisition and/or demolition and/or remediation of vacant and dilapidated or blighted structures in the District. Such structures may be residential or commercial in nature. The City may also establish a revolving loan fund for the funding of these projects. Section 3. Financing of Projects. The City has determined based on its annual collection of tax increment in the District that it can issue Bonds payable from the annual tax increment collected in the District which would allow for the City to undertake the Projects as described in Section 2 above and as set forth in the Plan. Section 4. Findings. The Council hereby finds with respect to the Projects described in Section 2 hereof, as follows: a. a workable and feasible plan exists for making available adequate housing for any persons who may be displaced by the Projects; b. the Plan, as modified to include the Projects, conforms to the comprehensive plan or parts thereof of the City; C. the Plan, as modified to include the Projects, will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. a sound and adequate financial program exists for the financing of each of the Projects, which program may include the sale and issuance by the City of the Bonds or the establishment of the revolving loan fund, including administration costs and costs of issuance of the Bonds, in proportions yet to be determined, for the purpose of financing all or a portion of the costs of the Projects as set forth above; and e. Each of the Projects constitutes an urban renewal project within the meaning of the Act and the Plan. Section 5. Public Hearin. A public hearing is hereby called and shall be held on January 23, 2012, at or after 7:00 p.m. in the Council chambers of City Hall on the proposed modification of the City's Urban Renewal Plan. If it is necessary to reschedule or postpone the public hearing in order to meet the legally required notice requirements, the City Manager is authorized to reschedule the public hearing and make such modifications to the notice as may be required. Section 6. Bonds. It is anticipated that the City will issue the Bonds in an amount sufficient to fund any or all of the Projects. The Bonds will be payable form the tax increments collected within the District. The currently estimated original aggregate principal amount of the Bonds is $500,000. Section 7. Notice. Notice of the public hearing shall be published in the Daily Inter Lake on January 11, 2012 and January 18, 2012, or as scheduled by the City Manager under 15, supra, in substantially the form attached as Exhibit A hereto. Section 8. Reimbursement. The City intends to make expenditures for the capital projects financed by the Bonds and reimburse such expenditures from the proceeds of the Bonds. This resolution is intended to constitute a declaration of the City's official intent, for purposes of Section 1.150-2 of the Treasury Regulations, with respect to certain original expenditures made from any sources other than the proceeds of the Bonds, in conjunction with the Projects financed thereby OF TINE CITY O, KALISPELL,9TH DAY OF JANUARY, 2012. Tammi Fisher ATTEST: Mayor Theresa White City Clerk NOTICE OF PUBLICON !, ! OF KALISPELL, MONTANA URBAN RENEWAL PLAN (THE URBAN RENEWAL PLAN) TO APPROVE CERTAIN PROJECTS AS URBAN RENEWAL PROJECTS NOTICE IS HEREBY GIVEN that the City Council of the City of Kalispell, Montana (the "City") will meet on January 23, 2012, at or after 7:00 o'clock p.m. in the Council Chambers at City Hall, 201 1st Avenue East, Kalispell, Montana, for the purpose of holding a public hearing to meet the requirements of Ordinance Nos. 1259 and 1347 of the City. It is proposed that the City will issue and sell its urban renewal tax increment revenue bonds or note (the "Bonds") in an amount sufficient, in an estimated original aggregate principal amount of $500,000, to fund all or a portion of the projects hereinafter described, if the modification of the Urban Renewal Plan is approved. The proposed modification is the approval of the following described projects as Urban Renewal Projects: a. Improvements to the Meridian and Appleway intersection and such portions of the arterials leading to the intersection as necessary to increase the functionality and safety for vehicular and pedestrian traffic; and b. Capital improvements to the water main for the west end of West Colorado as well as from West Colorado east from 51h Avenue WN to U.S. 93 then south to West Utah Street for the purposes of improving flows for fire protection in that neighborhood; and C. The acquisition and/or demolition and/or remediation of vacant and dilapidated or blighted structures in the District. Such structures may be residential or commercial in nature. The City may also establish a revolving loan fund for the funding of these projects. All persons interested may appear and be heard at said time and place or may file written notice with the City Clerk prior to the date of the hearing set forth hereinabove at 201 1 st Avenue East, Kalispell, Montana or by email to cityclerk@kalispell.co Theresa White City Clerk Publish: January 11, 2012 January 18, 2012