05/30/96 Rygg/Abuse of Tax Increment Concept�<� }#E
Pamela B. Kennedy
1036 Sixth Avenue West
Kalispell, MT 59901
Ile use of tax increment funds to pay for Kalispell Airport improvements and to relocai
the ballfields; is an abuse of the tax increment concept.
Tax increment districts are explicitly designed to segregate tax dollars for use in either
"urban renewal plans" or "industrial districts." The creation of the district (as you know)
is predicated upon the existence of or the prevention of "blight" within the district.
The twelve items identified in Resolution No. 4256 as "blight! 'do not fit the definition as
set fo-rY ir, WCA 7-15-4206.
7[be Depot Square project, on the other hand, is classic tax increment fund utilization.
The law was designed for this type of project, and I would support Depot Square - one
hundred percent- if it was based on the affirmative conclusion of a bonafide market
?.nalysis and feasibility study, but it is NOT!
Without a thorough analysis ■of supply, demand, absorption and feasibility, a
knowledgeable investor would not be interested in this project, and surely, a bank would
notloanonit. (On a project such as this, wouldn-t you base a decision to spend
taxpayers'money on criteria that is similar to that which a bank would useforpurposes
ofmaking a loan?)
A study of this nature is unnecessary, however, if the leases are signed and deposits
eecured before construction begins; maybe that is the case with Depot Square, but you —
must have one or the other - either a reliable study indicating feasibility, or signed Icasm.
A decision to spend taxpayers' money based on anything less, is very reckless.
AID-
Unfortunately, you don't have to be a real estate market expert to know that existing
demand for retail and office space in downtown Kalispell is insufficient to absorb an
additional 5000 square feet, let alone the proposed 150,000 square feet! Ifyoucan't
lease the space, nobody will invest in the building, and it will sit there vacant —as most of
this land has for the past six years.
Therefore, until such time as demand is demonstrated, I urge you to vote against this
proposal.
My= 11
Sincerely yours,
A n
Philip J. Rygg-