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BNSF Tax Increment Financing DistrictREPORT Tow 40 41aL I S ty Post Office Box 1997 -K.l�. 1, Montana C- 7 --� Telephone 7 --' ax( 7 8-77 The Honorable Mayor Pamela B. Kennedy and City Council FROM: Susan Moyer, Community Development Di.rector Janes H. Patrick, City Manager SUBJECT* BNSF TIFDistrict MEETING DATE. August 17, 2005 BACKGROUND: Tung 2003 the former City Manager, Chris Kululsi, and the Community Development staff, met with the City Council at a work shop on the potential development of a new TIF District north of the railroad tracks to Meridian and roughly from Main Street to Fifth Avenue Vest. Council instructed staff to identify the eligibility of this area to qualify as a Tax Increment District but not to implement the action until such time as potential development was identified to possibly take place. The map presented to you this evening is based on visual site inspections and pictures documenting the condition of all properties within the proposed picture. This is the only area within the old TIF District that has enough remaining blight to qualify as a TIF District. It abuts the south westerly portion of the Westside 'IF District and, therefore, has enough land acquisition potential for a major project to be put into place. RECOMMENDATION: Two major project proposals are on the horizon and, thus, staff believes it 1s timely for Council to implement the creation of the BNSF TIF District. Recently Vest Coast hospitalities announced their intention to renovate and expand the existing hotel/mall site as well as expand retail and parking within the proposed district. Secondly, a proposal is being developed for a Junior league athletic Facility containing 4,500 seats originally with the potential seating capacity of -up to 8,000 to be constructed within this area. The intention of the developers is to be able to utilize the facility as a. community center on a year round basis when the sportmg events are not scheduled. FISCAL IMPACT: The City would be able to raise money to address the necessary off: site In.fra structure that would be a part of the needs for both projects. Additionally, with I`undi.ng, the City can assist with the development through site clearance and A ' ERNA' 'IV S: As suggested by Council. Respectful submitted, , x a "go '7 Susan Moyer, irec o.r axne H. a rick Community Development City Manage' Date Memo Prepared: August IT, 2005 kii .M1 ..;....:.;..�#lkh .w.��.w::•v .•."> Pot office x 1997 � C 1*tY of Kai 1*spell Kalispell, Montana -� 1-Telephone --� (406) 758-7758 a: REPORT To: Honorable Mayor and City Council FROM: Jaynes H. Patrick, City Manager SUBJECT: TIF Discussion DATE: April 21, 200 .ere has been a lot of discussion concerning Tax Incremental Financing Areas and Monday night's discussion is intended to revisit the different tomes of TIF districts that a City may create, the costs that may be paid by the TIF, TIF reimbursement, and potential projects. Tax Increment Financing is an economic development tool used in most states and is one of the top five questions developers ask about when looking at relocation or expansion. Property owners in and outside the district do not pay any more or less taxes with or without `CIF. Montana Code allows for Urban Renewal TIF, Industrial, and aerospace and technology Districts. Kalispell has only used the Urban Renewal TIF in the past. Urban Renewal Districts sp e if ically address blighted and/or underutilized areas f the City in an attempt to correct the blighted area. Industrial TI "s may be used for projects undertaken within or for an industrial district if the proposed industrial district consists of a continuous area with are accurately described boundary, is zoned for industrial use, does not include any property included within an existing; urban renewal area district, is deficient in infrastructure improvement for industrial development, and has as its purpose the development of infrastructure to encourage the groom and retention of secondary, value added industries. The aerospace transportation and technology TIF is undertaken within or for an aerospace transportation and technology district if the proposed district consists of a continuous area with, an accurately described boundary, properly zoned, does not include any property currently included within are existing urban renewal area district or industrial infrastructure development district, is found to be deficient in infrastructure improvements en.ts for industrial development, and has as its purpose the development of infrastructure improvements for industrial development, and aerospace transportation and technology infrastructure development project in the state. Tax increments may he used by the municipality to pay the following costs of or incurred in connection with an urban renewal project, industrial infrastructure development project, or aerospace transportation and technology infrastructure development project: land acquisition.; demolition ition and removal of structures, relocation of occupants, the acquisition, construction, and improvement of infrastructure; or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and off' street parking facilities, severs, sewer lines, sewage facilities, publicly owned buildings and any public improvements; costs incurred in connection with the allowable redevelopment activities; acquisition of infrastructure deficient areas or portions of areas; administrative costs associated with the management of the industrial district or the aerospace transportation and technology districts; assemblage of land for development or redevelopment by p vate enterprise or public agencies, including sale, initial leasing or retention by the City at its fair value; the compilation and analysis of pertinent inforn ati.on required to adequately determine the infrastructure needs of secondary, value -adding industries in the industrial district or the reeds of an aerospace transportation and technology infrastructure deg -,el pment project in the aerospace transportation and technology district; the connection or the industrial district or the aerospace transportation and technology district; the provision of direct assistance, through industrial infrastructure development projects or aerospace transportation and technology infrastructure development projects, to secondary, value -adding industries to assist in meeting their infrastructure and land needs within the industrial distn'ct or the aerospace technology; and the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating or eliminating pollution. .s you are aware, when a TIF District is established, the current tax base is frozen for continued distribution to the taxing agencies. The new tax base created then goes to fund the necessary improvements for a p : od of 15 years or for the length of the bonds. All taxing agencies ultimately derive benefit from the increased tax base as well as the wealth created in the community from increased wages, services, and jobs that are made, f feel there may be some ability to reevaluate and restructure the tax base during the course of the TIF especially when nvv bonding is contemplated. There are several new TIF projects that are being contemplated to include but not limited to expanding the existing airport TIF to include several additional proper ties, a new TIF District along the railroad, an industrial TIF, and a technology TIF. These items will be farther discussed Monday evening.