1. Ordinance 1347 - 2nd Reading - Modifying West Side Urban Renewal DistrictREPORT TO:
of Kalispell
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758
The Honorable Mayor Boharski and City Council
FROM: Susan Moyer, Community Development Director
Chris A. Kukulski, City Manager
SUBJECT: Second Public Hearing on the CDBG Economic Development Grant Application
Process
BACKGROUND:
Under the guidelines of the CDBG program, it is necessary for a municipality to hold a minimum of two
public hearings to identify eligible CDBG activities and identify the community's needs from input
provided by citizens through the public hearing process.
The City held the first of such public hearings under proposed change to the economic development
regulations on January 24, 2000. The majority of the input received from the January 24th hearing was
from citizens requesting the City to consider an application to apply for a CDBG Economic Development
Grant to cover training and up -graded training for new Stream employees.
Those speaking on behalf of an application to provide training grant dollars to future Stream employees
were:
Virginia, Sloane, The Job Service
Kathy Hughes, Flathead Valley Community College
Joe Unterreiner, Chamber of Commerce
Doug Rauthe, Northwest Montana Human Resources
Barry Roose, Montana Department of Commerce
Warren McConkey, Flathead Electric Cooperative
Mert Webb,.Jobs Now and the Port Authority
Sherry Stevens Wulf, United Way
The second item addressed as a potential eligible Economic Development was a proposal to apply for
funds to provide a small business revolving loan fund to be utilized for businesses wishing to expand or
relocate within the city limits. The proponent for the second activity was Doug Rauthe of Northwest
Montana Human Resources.
RECOMMENDATION:
Based on the majority of the speakers requesting the City to utilize these grant dollars to assist Stream in
training newly hired employees or employees wishing to increase their technical skills with other
products, staff strongly recommends that the City Council authorize staff to submit a CDBG Economic
Development Grant application as soon as possible.
FISCAL EFFECTS:
If successful, the City would be able to consider the maximum grant amount of $400,000 toward the
incentive package being provided to Stream.
ALTERNATIVES: As suggested by Council.
Respectfully submitted,
Susan Moyer, Director
Community Development
Report compiled: Tebruary 4, 2000
Chris A. Kukulski,
City Manager
ORDINANCE NO. 1347
ORDINANCE RELATING TO THE MODIFICATION OF THE KALISPELL MONTANA
URBAN RENEWAL PLAN (THE URBAN RENEWAL PLAN) TO APPROVE CERTAIN
PROJECTS AS URBAN RENEWAL PROJECTS AND TO AMEND ORDINANCE NO. 1259
REGARDING THE PROCEDURE FOR APPROVING PROJECTS.
BE IT ORDAINED by the City Council (the "Council") of the City
of Kalispell, Montana (the "City") as follows:
Section 1. Recitals. The City by Ordinance No. 1259 (the
"Ordinance"), passed and approved on March 17, 1997, created the
West Side Urban Renewal District as an urban renewal district (the
"District") and approved the West Side Urban Renewal Plan (the
"Plan") for the District containing a tax increment financing
provision as set forth in the Ordinance. Pursuant to the procedures
contained in the Plan and Resolution No. 4530, adopted January 3,
2000, the City has set forth its intention to modify the Plan to
approve certain projects as urban renewal projects and to amend
Section XIV(A) of the Ordinance regarding the procedure for
approving projects, and has given notice and conducted a public
hearing with respect thereto.
Section 2. Modification of Plan and Approval of Projects. The
City reconfirms the findings contained in Resolution No. 4530 and
hereby approves the following projects as Urban Renewal Projects
and modifies the Plan accordingly.
a. Gateway West Project. The City would acquire an office
facility (the "Complex") in the Gateway West Complex at an
estimated cost of $2,500,000 for the purpose of providing leased
office space to a business enterprise agreeing to provide new jobs
in the City for at least 500 full time employees for a period of
not less than 10 years and agreeing to install taxable property and
equipment in the approximate amount of $7,300,000. The City has
received and approved a proposal from Stream International to lease
the property. Subsequent to successful negotiations of the terms of
various agreements with Stream International and obtaining
financing through the issuance of its tax increment bonds, the City
will acquire the Complex. The City and the Authority will enter
into an agreement for the joint ownership of the Complex, whereby
the Authority will be responsible for the day to day operation of
the Complex.
b. Meridian Road Urban Highway Improvement Project. This
project consists of storm drainage improvements to Meridian Road.
The project is estimated to cost $350,000.
c . Lower Spring Creek Improvement Project. This project
consists of storm drainage improvements related to the abatement of
flood level increases on Lower Spring Creek. This project is
estimated to cost $600,000.
d. Two Mile Drive Road Improvements Project. This project
consists of road improvements to Two Mile Drive to remedy
substandard existing road cross-section, from Meridian Road to
approximately 500 feet west of Hawthorne Street, a project length
of approximately 1,500 feet. This project is estimated to cost
$750,000.
e. Liberty Street Project. This project consists of
acquiring and installing an emergency generator for the Liberty
Street sewage lift station. This project is estimated to cost
$15,000.
f. Human Service Campus Improvements Project. This
project consists of water and sewer improvements for the Human
Service Campus on Apple Way. This project is estimated to cost
$250,000.
g. Gateway West Complex Improvements Protect. This
project consists of water and sewer improvements for the
redevelopment of Gateway West Complex. This project is estimated to
cost $325,000.
h. District Improvements Project. This project consists
of pavement preservation projects for streets within the District,
street and other general drainage improvements and pedestrian
mobility improvements throughout the District. This project is
estimated to cost $475,000.
The Urban Renewal Projects herein designated and approved may
be modified by the City Council of the City of Kalispell if the
Council determines by Resolution that an adjustment to a Project or
Projects is required in the best interest of the City of Kalispell.
Section 3. Amendment of Section XIV(A) of the Ordinance.
Section XIV(A) of the Ordinance shall be amended to read as follows
" (A) The Council may modify and amend the Plan, including
modifications and amendments to designate and approve
urban renewal projects to be undertaken pursuant thereto
excepting modifications involving the addition or
deletion of land from the Area, by enacting an ordinance
providing for and setting forth the modification and
amendment,
to adoption of "-'n renewal plan after a public
hearing, notice of said public hearing on the proposed
modification or amendment shall be given in the official
newspaper once a week for two consecutive weeks preceding
the hearing."
Section 4. Effective Date. This Ordinance shall take effect
from and after 30 days of its passage by the City Council and
approval by the Mayor.
PASSED, ADOPTED and APPROVED on first reading this day
of , 2000.
PASSED, ADOPTED and APPROVED on second reading this day
of , 2000.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk