1. Resolution 5612 - TIF Financing Assistance RequestCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MEMORANDUM
To: Doug Russell, City Manager
From: Katharine Thompson, Community Development Manager
Re: West Side/Core Area Tax Increment Financing (TIF) Application
Recommendation
Meeting Date: April 1, 2013
BACKGROUND: The West Side Tax Increment Financing (TIF) District was expanded to
include the Core Area as of December 21, 2012. The Urban Renewal Agency has met five
times, January through March 2013, to develop programs and guidelines specific to the goals
adopted by Council for the Core Area. This work is well underway, though not yet complete.
In December 2012, Mr. Paul Roybal acquired property at 11 Main Street in Kalispell which has
been vacant for a decade. Mr. Roybal has made two presentations to the URA regarding an
application for TIF funding. The complete application for TIF funds has been reviewed by the
Urban Renewal Agency (URA). The project includes extension of a fire line to serve multiple
buildings, facade improvements and interior rehabilitation/code compliance. The intent of this
application is to provide long term viability of this structure (fire line), enhance the character of
the building as it relates to historic downtown (fagade) and allow current and future use of the
building (interior rehabilitation and fire/building code compliance).
The URA has been addressing the 11 Main Street application as a pilot project for the Core Area
programs within the West Side TIF. The application has been found by the URA to be compliant
with the goals of the West Side Core Area Urban. Renewal Plan and demonstrative of the intent
to incent private investment in the area.
FISCAL IMPACT: The West Side Tax Increment Financing District currently holds $2.7
million and is budgeted to receive approximately'$440,000 in incremental revenue in fiscal year
2013/14. The 11 Main Street project funding recommended by the Urban Renewal Agency
would provide $52,290 in grant funding and $20,371 in loan support funding for a total package
of $72,661 at maximum.
RECOMMENDATION: It is recommended that Council approve the 11 Main Street
application for Tax Increment Financing from the West Side —Core Area not to exceed: $52,290
grant and $20,371 loan (if requested by applicant and if approved by Revolving Loan Fund
Committee).
Respectfully submitted,
K tharine Thompson
Community Development Manager
RESOLUTION NO.5612
A RESOLUTION AUTHORIZING THE KALISPELL URBAN RENEWAL AGENCY AND
THE KALISPELL REVOLVING LOAN FUND COMMITTEE TO DETERMINE THE USE
OF UP TO $72,661 OF WEST SIDE TAX INCREMENT FUNDS TO ASSIST THE
REDEVELOPMENT OF BLIGHTED PROPERTY AT 11 MAIN STREET, KALISPELL,
MONTANA.
WHEREAS, the Kalispell Urban Renewal Agency (URA) has been discussing the potential
expenditure of West Side Tax Increment Funds to assist in the redevelopment of
blighted property at 11 Main Street, Kalispell, Montana; and
WHEREAS, the URA is recommending, based upon the application of Paul Roybal, owner of the
subject property, that up to $72,661 of increment funds be considered to assist in this
redevelopment project and that of this sum up to $52,290 may be considered as grant
funding and up to $20,371 may be considered as loan support funding for the project;
and
WHEREAS, the URA seeks the authority to work further with the owner of the subject property to
construct a redevelopment agreement within the above described financial parameters
that offers grant funding to meet the goals of the urban renewal plan, is otherwise
consistent with state tax increment financing law and loan support that meets the
criteria of the Kalispell Revolving Loan Fund (RLF) committee; and
WHEREAS, the Kalispell City Council finds that the subject property is blighted, is located within
the West Side Urban Renewal TIF District and is eligible for assistance from the
increment funds.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
SECTION 1. The Kalispell Urban Renewal Agency is authorized to develop an agreement
with the owner of the property at 11 Main Street, Kalispell, Montana for the
purpose of removing blight through the redevelopment and rehabilitation of
the property and is further authorized to commit the use of up to $72,661 of
West Side Tax Increment Funds to this purpose, of which up to $52,290 may
be grant funding and $20,371 may be offered as loan support should the
project meet the criteria set by the Kalispell Revolving Loan Committee.
SECTION 2. The City Manager is authorized on behalf of the City to execute the
redevelopment agreement documents that the Urban Renewal Agency
develops and proposes for this subject property.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 1 ST DAY OF APRIL, 2013.
ATTEST:
Theresa White
City Clerk
Tammi Fisher
Mayor
TIF Funding Request
I. Public Impact:
• Fire Flow Line: LHC, Inc. Bid $37,065
Includes: traffic mobilization; traffic control; material testing; demolition; connect to existing
water line; shore and core; excavate, install service, backfill & pressure test; concrete paving,
curb/gutter/sidewalk
This project is deemed public impact because it will allow other businesses near 11 Main
Street access to a fire flow line, allowing the installation of fire suppression lines.
II. Private Investment:
Historic Facade Restoration:
• Exterior Restoration: Fontecilla Custom Interiors, Inc. Bid $38,679 (Includes:
demolition of existing dilapidated facade and replacement of building face and awning.)
• Exterior Restoration: Valley Glass, Inc. Bid $28,834 (Includes: demo of existing doors
and windows; installation of new automatic doors, and east and west facing windows.)
Rehabilitation and Code Compliance:
• City Impact Fees: $20,843
• Fire Suppression System: Montana Fire Sprinklers, LLC Bid $45,500 (Includes:
installation of fire sprinkler system including labor, material, and design.)
• Roof Replacement: Advanced Roofing Bid: $44,837 (Includes: removal and
replacement of existing roof with 20 year manufacture warranty.)
URA TIF Fundinje Recommendation:
Public Impact Category:
Request: $37,065 Recommended TIF Grant: $18,533
Private Investment Category:
Request: $178,693 Recommended TIF Grant: $33,757
Recommended TIF Loan: $20,371
($33,757 + $20,371 = $54,128 or 10% of the total project cost)
Total Recommended Funding: $52,290 in TIF Grants and $20,371 in TIF Loan
(As compliant with the West Side TIF draft guidelines currently under review)
11 Main Street, Kalispell
Westside Urban Renewal District TIF Request
April 1, 2013
Background: This building was previously known as Kelly Main Street Furniture and has been
vacant for over a decade. Originally built in 1924 for Lew Switzer's Furniture, it was designed
by Kalispell architect Fred Brinkman and built by Kalispell contractor Brice Gilliland. In 1940
the building was sold to Charles F. Kelly who remodeled the exterior to have an "Art Moderne
appearance." A fire in 1976 caused $500,000 damages to the furniture store. Restoration
included elimination of second floor windows and the current white stucco finish.
Paul Roybal purchased 11 Main Street in December 2012 to move his flooring business,
Roybal Flooring, into the building's first floor. The basement will be used for carpet and
flooring storage and the second floor will be remodeled for professional lease space upon
installation of the required fire suppression system. Mr. Roybal's TIF request proposes to run a
water line that will allow fire flow services to his building, as well as the surrounding
buildings. He also proposes to renovate the building's fagade to its 1940's appearance and
complete interior renovations that are required to rehabilitate the building and comply with
City codes.