10. Proposed Resolution 4530 - Schedules Public Hearing - West Side Urban Renewal DistrictREPORT TO:
FROM:
SUBJECT:
MEETING DATE:
Citv 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
Susan Moyer, Community Development
Chris A. Kukulski, City Manager
Public Hearing on the Westside Urban Renewal District q S-3 0
January 3, 2000
BACKGROUND: The Westside Urban Renewal District was created in January 1997 via Ordinance
No. 1259. Under advice of our bond counselor, Dorsey & Whitney, the City
Council needs to conduct a public hearing as soon as possible to notify city
residents, and specifically residents within the Westside Urban Renewal District,
of the City's intent to amend urban renewal activities within the district from
those originally specified.
Citizen Title and Insurance Company has been asked to provide an updated
Property Owners Notice Guarantee list for mailing of the public hearing notice.
This mailing must be completed a minimum of ten days prior to the hearing. As
soon as the list is completed, Flathead County will be asked to provide the City
with two sets of mailing labels and the Community Development Department will
actually complete the mailing and certify to the fact it was conducted as required
by law.
The following items will be addressed at the public hearing:
1. The identification of specific projects to be undertaken within the district that
will address the infrastructure needs for future anticipated project. The intent
of this action is to establish projects that the City may wish to undertake in the
n district during its remaining life so that this notification process is not
-j constantly being repeated. While identifying these projects, the City Council
is in not way obligating itself to bonding at this time for the full amount
identified in development costs. The City will have the latitude to sell bonds
in the respective amounts of the projects to be undertaken within a two year
time frame as it has the tax increment funds to retire future debt.
2. Notice to the Public that the City and the Flathead County Port Authority
intend to pursue means in which to buy 50,000-sq. ft. of the on -site building
for the sole purpose of assisting Stream.Com to locate to this site.
Page 1 of 2
Stream.Com will enter into a developers agreement at a future date with the
City and the Flathead County Port Authority to ensure the job creation of 500
employees who will be paid a livable wage with a full benefit package.
Strem.Com will also agree to a ten (10) year lease on this site in return for the
assistance provided by the City of Kalispell and the Flathead County Port
Authority.
3. Changing the need to do a mailing to each and every property owner within
the existing district when specific urban renewal projects are anticipated or
deleted. Public hearings will still be held to collect citizen input on all
$ proposed redevelopment changes. Notices will be published in the local
newspaper two different times (6 days apart), with the final notice to be
published no less than three (3) days prior to the public hearing.
RECOMMENDATION: The City Council agree to hold a public hearing for the purpose of entertaining
citizen input in regard to proposed changes to the Westside Urban Renewal Plan.
Following tonight's meeting, City staff will continue to meet to negotiate the
financial assistance plan to Stream.Com and arrangements to finance the debt in
partnership with the Flathead County Port Authority.
Respectful) ubmitted,
Susan Moyer,
Community Development
Chris A. Kukulski,
City Manager
Page 2 of 2
RESOLUTION NO, `iS-1 C'
RESOLUTION CALLIING A PUBLIC HEARING ON' A
PROPOSED MODIFICATION 0F`I`Er-- KALISPELL,
MONTANA URBAN RENEWAL PLAIN TO APPROVE
CERTAIN PROJECTS AS URBAN RENEWAL, PROJECTS
AND TO HNAINTCE THE PROJECTS THROUGH THE
ISSUANCE OF TAX TNCREMENTURB2�-N RENEIVAL
BONDS AND TO AMEND ORDINANCE NO, 12159
REGARDING THE PROCEDURE FOR APPROVING
PROJECTS
BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell, Montana
(the "City"), as follows:
1.01. The Council pursuant to Ordinance -No. 1259 ( the 'Ordinance"), adopted 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 Flan (the "Plan") for the District
containing a tax increment financing provision all as set forth in the Ordinance,
1.02. The Plan identifies as Urban Renewal Projects the, Gateway West Mall
Redevelopment, the Noeth MeridianNeighborhoodPlan, the I Meridian Road Construction Plan,
various infrastructure improvements, including storm drainage, flood plain management, and
expansion of water and sewer mains for the area lying south of U.S. Highway 2 East cif Meridian
Road to encourage development-
1-03. The Plan has been in continuous existence since adoption-
1.04. Based on recent activities and work by the City staff -%Aith respect to property in the
District, the City anticipates that there vvill be sufficient development in the District to operate
suf-Ecient tax increments to enable the Civy to issue its tax increment Lzban renewal district
ilever'llae bonds (the "Bonds") in an arnowit sufficient to enable it to Rind urban renewal projects
identified in the Plan.
1,05 . Pursuant to Flatdiead County Commissioners' Resolution No, 1346 (the
"Resolution"), Flathead County, the "County") created the Flathead County Economic
Development Authority as a port authority (the "Authority") on July 22,1999, The Authority is,
authorized to request that the County levy a tax in an amount of up to 2 mills on all ofthe
property in the County for Port purposes. The County and the. Authority has preliminarily
indicated that they Arill approve the Gateway West Project as a Port purpose and that they will.
respectively, request, levy and pledge to the City in fbrthlemnce of that Project a portion of its
annual 2 mill port authority levy over a term of 10 years.
Section 2. tr'=. The City proposes to approve the following projects as Urban
Renewal Prcjects:
a -
gateway `e st Project. he City would acquire an office facility (the "Complex") in
the oa� 1 corn tan estimatedcostof S2,500,000 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 acquisition price of the
Complex will not be greater than fair market value as evidenced by an MAI appraisal. 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- The City's
decision to purchase the Complex is dependent upon receipt of a proposal from a qualified entity
to lease the Complex subject to the terms of a publicly advertised -request for proposal.
�yement Prpxi:1' This project consists of storm
project is estimated to cost $350;000, which will
be financed from the proceeds of the Bonds.
consists of storm drainage
improvn eveI increases orz Lower Spring Creek, This
project is es ated-4o--QGst-$6WODOwbich will be financedfiorn the proceeds of the Bonds.
d. Two Mile Drive Road Improvements Project. Tlis project consists of road
linprovem,ent"O-Tn �;]p T'i,�t„� tom- die tt # 7d�existing road cross-section, from
Meridian Road to approximately 500 fee west of Hawthorne Street, a project length of
approximately 1,500 feet. This project is estimated to cost $750,000, ,vhich will be finauced
from the proceeds of the Bonds,
e. Liberty Street Project. ThLs,project consists of acquiring and installing an emergency
gene r the elift station. This ect is estimated to cost $15,000,
0 2� wage on. Is pToi
which will be finmc-e(Urom--tlitmwc-c-eds—oLthe Bonds.
Human Service f arse up,s Itnriroverrlents Prc3ect, T s project consists Of Water and
sewer izn is for the Truman S p pple, Way. This project is estimated to
cost $250,000, which will be financed from the proceeds of the Bonds-
9 gG . Gateway -ay -Mall Improvements Project, This eject consists of water and sewer
—;
improv the redevelopment 1. This project is estimated to cost
S325,000, which will be financed from the proceeds of the Bonds.
h— District Improvements Project. Thi' project consists of pavement preservation
projects - s-wi,flun-the DLstr=nd other general dainage improvements and
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pedestrian rnobilitr improvements throughout the District. This project is estirnated To cost
$475,000, which will be financed from the proceeds of the Bonds.
Section 3. Einancing of Prp eqls- The City has determined based on, its annual collection
of tax increment in the District and the amounts to be pledged by Flathead County on behalf of
the Flathead Economic Development Corporation for the Gateway West Project that it Can issue
approximately $5,265,000 in principal amount of tax increment urban renewal revenue bonds
payable from the annual tax increment and the taxes levied by the Cownty (the "Tax Increment
Urban Renewal Bonds" or the "Bonds") which would allow for the Cite to undertake the Projects
as defined and identified herein.
Section 4. Findings. The Council hereby finds, with respect to the Project described in
Section 2 hereof, as follows:
a. a workable and feasible plan exists for making available adequate housing
for any persons who may be displaced by the Projects;
b, the Plan, as modified to include the Prcjects, conforms to the
comprehensive plan or parts thereof of the City;
C. the Plan, as modified to include the Projects, will afford maxi-inuni
opportunity, consistent v4th the needs of the City as a whole, for the rehabilitation.
or redevelopment of the District by private enterprise I-
d. a sound and adequate financial program exists for the financing of each of
the Projects, which grog am includes the sale and -issuance by the City of its urban
renewal tax increment bonds in an, amount not to exceed the costs of the Projects
and other Projects heretofore or hereafter approved by this Council, including
administration costs and costs of issuance of the bonds, in proportions yet to be
determined, for the purpose of financing all or a portion of the costs of the
Projects as set forth above; and
e. each of the Projects constitutes an urban renewal project within the
meaning of the Act and the Plan.
Section 5. Amendment of Section XIV(A) of OrdinanceNo. 1259_. Section XIV(A) shall
be amended to read as follows:
"(A) Ilie Council may rnodify and amend the Plan, including modification s 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, followirtg the
pmecd=-O -1-42 H2 -throtrgh -�- i 5-4i f 9. Nie,-A, with respeet to adop
of an nTbtm tmmwai p after a public heginag, notice of said Mahlic-hp-ELring on the proposed
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inodificatim_or amendment shafl_he_g:iven in the official newspa.[Mr once a week fi21_1LEo
consecutiy1.1yeeks preceding the hearing."
Section 6. Public Hearing. A public heating is hereby called and shall be held on
January 24, 2000 at 7:00 p.m.. in the Council chambers on the proposed modifications of flie
City's Urban Renewal Plan. If it is necessary to re -schedule or postpone the public hearing in
order to xneet the legally required notice requirements, the City Manager is authorized to re-
schedule the public hearing and -make such modifications to the notice as may be required.
Section 7. Bond , It is anticipated that the City will issue its Tax Increment Urban
Renewal Bonds in an arnount sufficient to fund each of the above described Projects, but not to
exceed $5,265,000 (the "Bonds), The Bonds will be payable from the tax increment [generated
by the Project] [collected within the Urban Renewal District] and the revenues derived from the 2
mill levy for Port Authority purposes to be pledged and appropriated by the County and the
Authority for the Gateway West Project.
Section 8. Notice of the public hearing shall be published in the Daily Inter Lake
on January 6, 2000 and January 13., 2000 in substantially the f :oTm attached as Exhibit A hereto
and mailed to the owners of property in the District as required by Section XIVOf Ordinance
No. 1259.
PASSED AND APPROVED by the City Council of the City of Kalispell, Montana, this
3rd day of January, 2000.
Atte
st:
of Council
-4-
Mayor
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
1, the -undersigned, being the duly qualified and acting recording officer of the City of
Kalispell, Montana (the "City"), hereby certify that the attached resolution is a true copy of a
Resolution entitled: "RESOLUTION CALLING A PUBLIC HEARING ON, A PROPOSED
MODIFICATION OF THE KALISPELL, MONTANA URBANT RENEWAL PLAN TO
APPROVE CERTAIN PROJECTS AS URBAN RENEWAL PROJECTS AND TO FJNANCE
T14E PROJECTS THROU014 THE ISSUANCE OF TAX INCREMENT URBAN RENE)VAL
BONDS AND TO AMEND ORDIINANCE NO. 12a9 REGARDING THE PROCEDURE FOR
APPROVING PRDJECTS*'(the "Resolution"), on file in the original records of the City in my
legal custody-, that the Resolution was duly adopiedby the City Council of the City at a special
meeting on January 3, 2000. and that the meeting was duly held by the City Council and was
attended tbroughout by a quorum, pursuant to call and notice of such meeting given as required
by law-7 and that the Resolution has not as of the date hereof been amended or repealed.
I farther certify that, upon vote being taken on the Resolution at said meeting, the
following Council members voted in favor thereof
same:
-voted against the
abstained from voting
thereon: ; or were absent:
\�qTNESS my hand and seal officially this — day of January, 2000.
Clerk of Council