01. Ordinance 1711 - Amendment - West Side Urban Renewal Plan - 2nd ReadingCharles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, NIT 59903-1997
TO: Mayor Tammi Fisher
and Kalispell City Council
FROM: Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
SUBJECT: Ordinance No. 1711— a Resolution Amending the Existing
West Side Urban Renewal Plan to include New Projects
BACKGROUND: On January 9, 2012, the City Council passed Resolution No. 5544 that
placed three potential projects for inclusion into the West Side Urban Renewal District
before the public for its consideration and comment at a public hearing before the City
Council Meeting on January 23, 2012. Ordinance No. 1711 considers the evidence
provided by the city staff and the public in its determination on second reading to amend
the West Side Urban Renewal Plan.
RECOMMENDATION: That City Council give consideration to and pass Ordinance
No. 1711 on second reading.
FISCAL IMPACTS: The fiscal impacts of Ordinance No. 1711 are complex. It opens up
the possibility of financing and securing one of the projects with TIF increment. Should
Council elect to do so, this would extend the life of the West Side Tax Increment District
for the term of the debt. The fiscal implications of this are varied and depend upon any
number of factors that may or may not be under the control of the City.
Respectfully submitted,
Charles ka"Arall, Q�ity Attorney
► ► ..i ., i
WHEREAS, on December 5, 1994, the City Council (the "City Council") of the City of Kalispell,
Montana (the "City") adopted the West Side Urban Renewal District Plan (the "Original
Plan") as an amendment to the Kalispell City County Master Plan; and
WHEREAS, in late 1996 and 1997, the Planning, Economic and Community Development
Department of the City ("Planning Staff"), along with other City staff, completed an
extensive evaluation of the social, fiscal, and physical aspects of the area in and around
the boundaries of the West Side Urban Renewal District; and passed and approved the
Original Plan and the creation of the City's West Side Urban Renewal District; and
WHEREAS, the City Council also previously adopted Resolution No. 4309 that described the legal
boundaries (the "Original Boundary") for West Side Urban Renewal Tax Increment
Financing District (the "West Side Urban Renewal District") and made detailed findings
regarding (i) blight conditions existed within the area of the West Side Urban Renewal
District and (ii) that rehabilitation and redevelopment or a combination thereof, within
the boundaries of the West Side Urban Renewal District was necessary in the interest of
public health, safety and morals or welfare of the residents of the City; and
WHEREAS, on March 3, 1997, the City Council held a public hearing with respect to the adoption of
the Original Plan and the creation of the West Side Urban Renewal District and the
public was given an opportunity to be heard at such public hearing; and
WHEREAS, on March 17, 1997 the City Council of the City acting in its capacity as an Urban
Renewal Agency adopted Ordinance No. 1259, approving the Original Plan and the
creation of the West Side Urban Renewal District along the boundaries described in
Resolution No. 4309 and Ordinance No. 1259; and
WHEREAS, the West Side Urban Renewal District was created in conformance with and pursuant to
the powers granted to the City under the provisions of Montana Code Annotated Title 7,
Chapter 14, Part 24, as amended (the "Urban Renewal Act"); and
WHEREAS, the City has continuously been administering the West Side Urban Renewal District in
compliance with the terms of the Urban Renewal Act and Montana law since the creation
of the West Side Urban Renewal District on March 17, 1997; and
WHEREAS, pursuant to City Ordinance No. 1347, on February 7, 2000, the City amended Ordinance
No. 1259 to modify the Original Plan and approve certain infrastructure projects as urban
renewal projects; and
WHEREAS, the Original Plan adopted a strategy to be followed preparing for redevelopment in the
West Side Urban Renewal District; and
WHEREAS, the Original Plan contained goals necessary for the implementation of the strategy that
have been met as well as goals of the Original Plan that have not been met; and
WHEREAS, in 2011, the Planning Staff conducted an extensive review of the Original Plan, including,
mailings to property owners in and around the West Side Urban Renewal District, public
meetings, and soliciting input from residents and businesses in the City, including those
in and around the West Side Urban Renewal District, in order to identify if the conditions
detailed in the Original Plan are still present in the West Side Urban Renewal District and
to also see if such conditions extend to areas adjacent to the boundaries of the West Side
Urban Renewal District; and
WHEREAS, many of the conditions that were present in the West Side Urban Renewal District in
1997 are still present today and the City has reviewed the conditions that exist in and
around the boundaries of the West Side Urban Renewal District; and
WHEREAS, Planning Staff prepared an amendment to the Original Plan (the "Plan Amendment" and
together with the Original Plan, the "Plan") in staff report KRD-11-1-A that details
findings regarding the blighted conditions that continue to exist in and around the
boundaries of the West Side Urban Renewal District; and
WHEREAS, the Plan Amendment set forth a detailed discussion of the condition of the infrastructure
in the West Side Urban Renewal District as of the end of 2011; and
WHEREAS, on September 6, 2011, the City Council adopted Resolution No. 5527, as a resolution of
necessity under the Urban Renewal Act and finding that specific identified blighted
conditions exist in the contiguous areas of the West Side Urban Renewal District which
restrict the full attainment of the goals of the Original Plan goals; and
WHEREAS, on September 27, 2011, the Kalispell City Planning Board met and held a meeting to
consider the request by the City to amend the boundaries of the West Side Urban
Renewal District and the adoption of the Plan Amendment; and
WHEREAS, the members of the public were provided an opportunity to speak at the Kalispell City
Planning Board meeting on the contents of the Plan Amendment and the proposal to
extend the boundaries of the West Side Urban Renewal District to those set forth in the
Plan Amendment; and
WHEREAS, prior to the Kalispell City Planning Board meeting on September 27, 2011, Planning
Staff also notified Flathead County, Montana and the Kalispell School District regarding
the possible Plan Amendment and the meeting of the Kalispell City Planning Board to
review the Plan Amendment and the possible expansion of the boundaries of the West
Side Urban Renewal District; and
WHEREAS, the members of the Kalispell City Planning Board voted unanimously to recommend that
the City Council consider the Plan Amendment and the extension of the boundaries of the
West Side Urban Renewal District to include additional property that contains blight
conditions; and
WHEREAS, on October 17, 2011, in conformance with Section 7-15-4215 of the Urban Renewal Act,
the City Council held a public hearing that was duly noticed and considered all evidence
given in regard to the proposed Plan Amendment to extend the boundaries of the West
Side Urban Renewal District as well as all evidence reviewed by the Kalispell City
Planning Board, including staff report KRD-11-1-A of the Planning Staff; and
WHEREAS, Planning Staff prepared the Plan Amendment that amended the Original Plan by
extending the boundaries for the Plan to those set forth in Exhibits A and B attached to
Ordinance No. 1704; and
WHEREAS, on November 21, 2011 the City Council had a second reading of and adopted Ordinance
No. 1704 and such Ordinance was effective on December 21, 2011; and
WHEREAS, Ordinance No. 1347 provided that the City, after a public hearing, may amend the Plan
by ordinance to designate and approve urban renewal projects, provided that amendments
to the boundaries of the West Side Urban Renewal District shall only be made by the City
pursuant to the provisions of the Urban Renewal Act; and
WHEREAS, subsequent to the passage of Ordinance No. 1704 and the adoption of the Plan
Amendment, Planning Staff and the City of Kalispell Urban Renewal Agency (the
"Kalispell URA") identified various capital projects in the West Side Urban Renewal
District that the Kalispell URA recommended to the City move forward with as urban
renewal projects under the Plan and Urban Renewal Act; and
WHEREAS, on December 28, 2011, the Kalispell URA recommended that the City undertake certain
capital projects as urban renewal projects in the West Side Urban Renewal District that
are consistent with the Plan; and
WHEREAS, pursuant to Resolution No. 5544, adopted by the City Council of the City on January 9,
2012, the City Council called for a public hearing on January 23, 2012 with respect to the
proposal to amend the Plan to include the capital projects set forth in Resolution No.
5544 as urban renewal projects; and
WHEREAS, the City Council held a public hearing on the date hereof, after publication of notice of
such public hearing as required by law, and the public was given an opportunity to be
heard with respect to the proposed amendments to the Plan to include the capital projects
discussed below as urban renewal projects.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
Section I. Modification of Plan and Approval of New Urban Renewal Projects. The City
confirms the findings contained in Resolution No. 5544 and hereby approves and designates the
following capital projects as Urban Renewal Projects (as defined in the Plan) and modifies the
Plan accordingly:
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`h 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
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 will ffwy also establish a revolving loan fund for
the funding of these projects.
The Urban Renewal Projects herein designated and approved by the City may be modified by the
City Council if the City Council determines by Resolution that an adjustment to an Urban
Renewal Project or Projects is required in the best interests of the City.
SECTION II. Effective Date. This Ordinance is to be posted as required by law and copies
made available to the public upon request. This Ordinance shall take effect thirty (30) days after
its final passage.
PASSED APPROVED
CITY OF DAY OF ;•
ATTEST:
Theresa White
City Clerk
Tammi Fisher
Mayor