Draft Tax Increment Financing Application ProcessCity of Kalispell
South 1 :' ' i 1
Tax Increment Financing Aj
2j2lication 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.
s may affect
un 1�7iTllill � l
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/Airport 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.
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Applications for TIF 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.
13"C"IflaSIB Ili+I Y Ili f
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).
APPLICATION PROCESS
Anyone seeking 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. Complete 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.
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.
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2.
3.
4.
5.
6.
7.
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.
Tax Generation: The increase in taxablevaluedue to new construction/rehabilitation is
estimated by the City to determine tax increment generation.
Employment Generation: Total employment generated by the project assessed in terms of
new permanent and part-time jobs, wage levels and benefits provided.
Impact Assessment: The extent of both positive and negative environmental impacts,
appropriateness of the project design, and impact on existing businesses.
Financial Assistance: Other forms :of financing available to the Applicant. Lender
participation,
example, are
rel
8. Pa n
asses
9. On A
development revenue bonds, and state and federal grant monies, for
to assess the need for TIF assistance.
;rform: An assessment of the Applicant's capability to undertake the
the project based on past performance on similar projects.
he feasibility of completing the project according to the Applicant's
schedule.
it of Taxes: Alli
cents on the prole
established b
Operating Pr(
ects:
he F
;rty taxes, special improvement district assessments, and other
)pertymust be paid to date.
ejects that are located on Airport Property must meet standards
viation Administration (FAA) and the City Airport Standard
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Project Name:
City of 1
South Kalispell/Airport
Tax Increment Financing
Date Submitted:
CONTACT INFORMATION
Name and title:
Business name:
Phone number:
Email address:
APPLICANT INFORMATION
1. Business name:
2. Address:
3. Telephone number:
PROJECT INFORMATION
1. Property address:
2. Ownership:
Address:
3. If property is not owned by the Applicant, list leasehold interests: (Attach evidentiary materials.)
Name:
Address:
4. Existing/proposed businesses:
M
Business description:
Employment: Number of retained positions: FTE PTE
Number of new positions to be created: FTE PTE
Average starting wage $ 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.
Provide a synopsis of the fringe benefits provided to employees.
5. Architectural firm:
Address:
Contact:
6. Description of project: ,(Attach narrative explanation.)
%. Rehabilitation/construction plans: (Attach narrative explanation.)
8. Project schedule: (Attach time line or schedule through completion.)
PROJECT COSTS
1.
Lot # $
2.
Facility $
3.
Landscaping $
4.
Equipment $
5.
Other $
Project Development Costs
Please complete Sources of Funds detail and summary below.
Developer Equity
Cash Invested
Land & Buildings
Other (specify)
Subtotal $
Lender Commitments (Attach evidence i.e. Letters of Credit or other documentation.)
Lender Loan Amount
Interest Term Payment/Period
% yrs $ /Month
$ % yrs $ ._/Month
Total "Loan Amount $
TIF Request
Eligible activity
Amount requested
DEVELOPER'S STATEMENT OF QUALIFICATION
AND FINANCIAL RESPONSIBILITY
Applicant
1. Name:
Address:
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 known as
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
1
Q
Provide a current financial statement for e
Documentation of financial capacity may i
profit and loss statements. (`this information wil
Has the Applicant or any individual or enti
been adjudged bankrupt, either voluntarily
No Yes if yes, lis
3. Has the Applicant or any ind
been indicted for or convicte
No Yes if ves, lis
private entity involved in the project.
ude net worth statements, balance sheets, or
kept confidential, subject to challenge in a court of law.)
affiliated with the development of this project
involuntarily, within the past ten years?
what name:
vidual or entity affiliated with the development of this project
of any felony within the past 10 year?
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:
N
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 10 years? No Yes If yes, explain:
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
h b db f kn 1d l'f
correct tot e est o my (oui) ow e ge an
Name Name
Signature
Signature
Title Title
Address Address
Date Date
Return to
City of Kalispell
Community & Economic Development Department
201 1st Avenue East
Kalispell, MT 59901
FITITIM&MMAL11
comdev@kalispell.co
P.,