Community Developmentof Kalispell
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
DATE: March 3, 2000
REPORT TO: The Honorable Mayor Doharski and City Council
FROM: Susan Moyer; Community Development
Chris A. Kukulski, City Manager
SUBJECT: Architectural Review Committee
MEETING DATE: March 11, 2000 — Priority Setting Council Session
BACKGROUND:
The Downtown Redevelopment flan (Ordinance No. 933) established the Architectural Review
Committee (ARC) in 1979 to be its official advisor on redevelopment/renovation projects and
appropriate signage within the Downtown TIF District. The ARC has for years consisted of: an
architect, an artist, a banker, an interior decorator, a local developer, and a real estate broker.
The advice and counsel of the Architectural Review Committee has been invaluable in the
redevelopment of our city's core area. Better designs, aesthetics, etc. have resulted from the
guidance provided by the ARC.
At the same time the ARC came into existence, a "Commercial Loan Program" was created to
provide an incentive to downtown business/property owners to re -invest in the core area.
Originally this loan program was funded through federal grant dollars; however, the City started
funding the interest subsidy with TIF dollars in April of 1988. The program currently involves six
participating financial institutions making loans at 9-1/4%, and the City subsidizes the actual
interest rate to the borrower down to 3%. Thus, the City over the years has gifted the interest
differential on a five-year mortgage term to 200 property owners and/or tenants (for the term
of their lease — not to exceed the five year term of the mortgage). The total interest
differential expended to date is $717,294, which has generated $10,184 in either new
construction or renovation activities.
As of March 3"', funding no longer is available for interest subsidy through the remainder of this
fiscal year. By ordinance the ARC remains responsible for design and signage review in the
downtown district.
RECOMMENDATION5:
The City Council pass an ordinance giving design and signage review authority to the ARC
in both the WeotSide and the Airport/5porto Complex Urban Renewal Districts.
2. At ouch time as new TIF revenue iS available, City Council authorizes Staff to create a
Commercial Loan Frogram for renovation activities within the two districts. Council will
decide the amount of the subsidy to the borrower at the time the program is created.
3. The Community Development Staff Seek different funding opportunitieo to re -instate
interest Subsidy assistance within the downtown core area. A revamp of the program
may change in that the interest Subsidy would not be "gifted' but might be, in the form of
a deferred loan until ouch time as the ownership of the building or business changes
hands.
Respectfully Submitted,
5usan Moyer,
Community Development
Chrio A. Kukuloki,
City Manager
of Kalispell
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
DATE:
REPORT TO:
FROM:
SUBJECT:
MEETING DATE
BACKGROUND:
March 3, 2000
The Honorable Mayor Boharski and City Council
Susan Moyer; Community Development
Chris A. Kukulski, City Manager
Urban Renewal Redevelopment Plans — Westside and Airport Districts
March 11, 2000 — Priority Setting Council Session
When the time comes that the City desires to sell TIF bonds in either of
the above urban renewal districts, a formal Redevelopment Plan for each
district needs to be in place and adopted by ordinance. Please see the
attached 1979 Downtown Urban Renewal Plan and the 1987 update
prepared by Sitescape Associates.
Sitescape Associates has obtained a price of $2,000 to have Montana
Aerial, based in Missoula, do the black and white aerial photography at
1:6000 scale in both hard copy and digital form for use as an updated base
map. Additionally, Sitescape has submitted a preliminary fee estimate of
$21,800 to prepare the Westside Plan and $19,500 to prepare the Airport
Plan.
Good planning and a pro -active approach would be to prepare these
Redevelopment Plans now and not wait until the need is immediate. It
must be noted, however, that neither district has TIF funds available to
cover these costs. The funds that exist now within the Westside TIF
District have been frozen to ensure the City's ability to participate on the
widening of Meridian Road. Council has committed to running sewer and
water lines to four corners at the time Highway 93 is widened in the
Airport District. Adequate funding to cover these costs does not exist now
in this district nor is it anticipated in the near future.
RECOMMENDATIONS: UDAG Program Income will have to be loaned to the Westside
TIF District to pay the City's 63% share of Dorsey & Whitney's
fees on the Stream Project. It would appear to be prudent to
advance additional UDAG funds to the Westside TIF District in
the amount of $23,800 to be repaid as soon as new increment over
and above our commitment on the Stream project is generated.
The Redevelopment Plan must be done and adopted before the
City could sell TIF bonds for the fairgrounds project or future
development on or around the Taylor properties.
It is anticipated by the Finance Director that it will be quite some
time before the Airport District is generating sufficient new
increment over and above the commitment for utilities being
extended to the south. Community Development staff still believes
it is financially more sound to include the creation of the Urban
Development Plan at this time instead of spending an additional
cost to do aerial photography and preparation of a base map a
second time. Thus staff is proposing a separate loan from the
UDAG Program Income funds be made to the Airport TIF District
to cover the $19,500 cost of the Plan.
FISCAL IMPACT: $43,300 loaned from the UDAG fund at current rates and to be
repaid as soon as TIF dollars are available in the respective
districts.
Respectf lly submitted,
Susan Moyer,
Community Development
C�
Chris A. Kukulski,
City Manager
of Kalispell
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
DATE: March 6, 2000
REPORT TO: The Honorable Mayor Boharski and City Council
FROM: Susan Moyer, Community Development
Chris A. Kukulski, City Manager
SUBJECT: Lots 1 and 3 at Daley Field
MEETING DATE: March 11, 2000 - Priority Setting Council Session
BACKGROUND:
Daley Field was first advertised for sale in July of 1997. The
offering document consisted of 15,651 acres platted into three
separate lots.
In July of 1999, Kalispell Investment Group, LLC purchased Lot 2
consisting of 228,711 sq.ft. for a total of $743,311 ($3.25 per
sq. ft. A new Rosauers Supermarket is currently under
construction on this site. The City of Kalispell shared in the
cost of extension of the sanitary sewer main to service the
Daley site in the amount of $46,654.80.
At the present time, the Airport District is in the red
$15,540.20. Two current financial obligations this district has
are:
• $150,000 for a signal light at Third Avenue per our
Developers Agreement with the Rosauers property owners.
This light, per the agreement, must be in place by June
2000.
• An annual debt service obligation of $18,073 for the years
2001 and 2002. This obligation was created through the
purchase of the Timmreck property at the north end of the
airport.
A second offering document was published in April of 1999 for
Lot 1 (2.98 acres) and no offers were received. The Council
had hoped to receive an offer to purchase in the neighborhood
of $4.00 per sq. ft. for this site because of the amount of
highway frontage involved.
It was the opinion of the previous council that they wanted
the next RFP process to include both Lots 1 and 3 with the
option of either leasing or selling to a developer(s). Council
had not set a minimum price they wished to receive for the
purchase or lease considerations.
RECOMMENDATIONS:
1. Due to the lack of TIF funds now or in the foreseeable
future, Council needs to prioritize future funding
(after the above cited obligations are paid) for
activities within this district:
a) Extension of services to four corners - budgeted
this current fiscal year at $1,000,000
b) Expansion/renovation to the airport vs.
relocating the airport - budgeted this current
fiscal year at $592,077
2. Council should determine whether they wish to sell
either or both lots or pursue long-term lease
proposals. It is the belief of staff that seeking
proposals to purchase and develop Lot 1 will generate
income the fastest. Again, if Council decides to
retain utility extension as a priority for the
district, staff recommends Lot 3 be offered "for sale"
in a separate but concurrent proposal with Lot 1.
Respectfully submitted,
Susan Moyer,
Community Development
Chris A. Kukulski,
City Manager