Ordinance 1558/Technology Tax Increment District')D
ORDINANCE 1558
AN ORDINANCE ESTABLISHING A TECHNOLOGY TAX INCREMENT DISTRICT
TO ASSIST IN FINANCING NECESSARY INFRASTRUCTURE TO ENCOURAGE
THE LOCATION AND RETENTION OF TECHNOLOGY DEVELOPMENT
PROJECTS IN THE STATE OF MONTANA AND THE CITY OF KALISPELL,
MONTANA; PROVIDING FOR DEFINITION OF TERMS; ESTABLISHING THE
COSTS WHICH MAY BE PAID BY THE TECHNOLOGY TAX INCREMENT
DISTRICT TO BE CREATED BY THIS ORDINANCE; CREATING AND APPROVING
THE OLD SCHOOL STATION TECHNOLOGY TAX INCREMENT DISTRICT OF
THE CITY OF KALISPELL, MONTANA; AND ESTABLISHING THE BOUNDARIES
OF THE OLD SCHOOL STATION TECHNOLOGY TAX INCREMENT DISTRICT;
ESTABLISHING JANUARY 1, 2005 AS THE BASE TAXABLE YEAR FOR THE OLD
SCHOOL STATION TECHNOLOGY TAX INCREMENT DISTRICT.
WHEREAS, the City of Kalispell, Montana (the "City") is defined as a "municipality"
under Montana Code Annotated, Section 7-15-4283, as amended, for the purpose of creating a
Technology District pursuant to Montana Code Annotated, Section 7-15-4295, as amended, and
being operated by the City pursuant to Montana Code Annotated, Sections 7-15-4282 through 7-
15-4293 and Montana Code Annotated, Title 7, Part 15, Chapter 43; and
WHEREAS, pursuant to Montana Code Annotated, Sections 7-15-4282 through 7-15-
4299, as amended (the "Act'), including Montana Code Annotated, Section 7-15-4295, as
amended, the City Council (the "City Council") of the City may create a Technology Tax
Increment District (as defined below) for the purpose of encouraging the attraction and retention
of secondary, value -adding industries to the City; and
WHEREAS, the City Council wishes to encourage the location and retention of
technology development projects in the State of Montana and the City; and
WHEREAS, the development of businesses or organizations engaged in technology -
based operations requires expensive infrastructure improvements which are beyond the available
resources of the City to provide; and
WHEREAS, the City Council of the City has determined, after a .public hearing required
by the Act and receipt of public input, found that there is a need for this Ordinance to create the
Old School Station Technology Tax Increment District of the City of Kalispell, Montana and the
City Council wishes to enact this Ordinance.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
Section 1. Definitions. In this ordinance the following terms have the meanings
indicated below.
(a) "Act" means Montana Code Annotated, Section 7-15-4282 through 7-15-
4299, as amended.
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(b) "Actual Taxable Value" means the taxable value of taxable property at
any time, as calculated from the assessment roll last equalized.
(c) "Base Taxable Value" means the actual taxable value of all taxable
property within an urban renewal area, Technology District, Technology District, or
aerospace transportation and technology district prior to the effective date of a tax
increment financing provision. Base Taxable Value may be adjusted as provided in
Section 7-15-4287 or 7-I5-4293 of the Act. "Technology District" means a Technology
Tax Increment District created pursuant to Section 7-15-4299 of the Act.
(d) "Incremental Taxable Value" means the amount, if any, by which the
Actual Taxable Value at any time exceeds the Base Taxable Value of all property within
the Technology Tax Increment District.
(e) "Industrial Infrastructure Development Project" means a. project
undertaken within or for a Technology District that consists of any or all of the activities
authorized by Section 7-15-4288 of the Act.
(f) "Infrastructure" means the acquisition, construction, and improvement of
streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and
offstreet parking facilities, sewers, sewer lines, sewage treatment facilities, storm
sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical
Iines, telecommunication lines, rail lines, rail spurs, bridges, publicly owned buildings,
any public improvements authorized by (i) parts 41 through 45 of Chapter 12, (ii) parts
42 and 43 of Chapter 13, and (iii) part 47 of Chapter 14 of the Montana Code Annotated,
and items of personal property to be used in connection with improvements for which
the foregoing costs may be incurred.
(g) "Tax Increment" means the collections realized from extending the tax
levies, expressed in mills, of all taxing bodies which the Technology Tax Increment
District or a part thereof is located, against the Incremental Taxable Value.
(h) "Taxes" means all taxes levied by a taxing body against property on an ad
valorem basis.
(i) "Technology District" means a tax increment financing Technology
District such as the Technology Tax Increment District, crated pursuant to Section 7-15-
4295 of the Act.
0) "Technology Tax Increment District" means the Old School Station
Technology Tax Increment District of the City of Kalispell, Montana designated as such
by the City Council in accordance with the provisions of the Act and this Ordinance.
Section 2. Purpose. The purpose of this Ordinance is to (i) create a Technology Tax
Increment District to be known as the Old School Station Technology Tax Increment District of
the City of Kalispell, Montana, (ii) to encourage the location and retention of technology
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development projects in the State of Montana and the City, and (iii) provide a financial
mechanism for the installation and construction of infrastructure improvements for the location
and retention of technology development projects in the State of Montana and the City.
Section 3. Findino, Determinations and Declarations. Based on representations
made by Montana Venture Partners, LLC to City staff and the City Council and the work of City
staff to date, the City Council, by this Ordinance, makes the findings, determinations, and
declarations set forth in (a) through (i) below.
The City Council of the City of Kalispell, Montana hereby finds, determines, and
declares that:
(a) the Technology Tax Increment District is intended to provide assistance to
businesses or organizations engaged in technology -based operations that through the
employment of knowledge or labor add value to a product, process, or export service that
results in the creation of new wealth and for which at least fifty percent (50%) of the
sales of the business or organization occur outside of the State of Montana or the business
or organization is a manufacturing company with at least fifty percent (50%) of its sales
to other Montana companies that have fifty percent (50%) of their sales occurring outside
of the Stat of Montana;
(b) this Ordinance and the formation of the Technology Tax Increment
District, as proposed, will facilitate the development of the necessary Infrastructure
encourage the location and retention of technology development projects in the State of
Montana and the City;
(c) the passage of this Ordinance and the establishment of the Technology
Tax Increment District fall within the economic goals adopted by the City Council and
the adoption therefor is in the public interest;
(d) the Technology Tax Increment District, as proposed, consists of a
continuous area with an accurately described boundary that is large enough to host a
diversified tenant base of multiple independent tenants;
(e) the Technology Tax .Increment District is zoned in accordance with the
area growth policy, as defined in Montana Code Annotated, Section 76-1-103;
(f) the Technology Tax Increment District does not include any property
located within an existing urban renewal area district or industrial infrastructure
development district created pursuant to the Act;
(g) the land in the Technology Tax Increment District is currently deficient in
Infrastructure improvements for technology development;
(h) the Technology Tax Increment .District is intended to host a diversified
tenant base of multiple independent tenants; and
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(i) • the Technology Tax Increment District is not designed to serve the needs
of a single district tenant or group of nonindependent tenants.
Section 4. Costs which may be paid by the City from Tax Increments. The Tax
Increment received by the City from the from the Technology Tax Increment District may be
used to pay any costs or obligations incurred for an Industrial Infrastructure Development Project
(in the Technology Tax Increment District) including those listed in (1) through (14) below.
The costs that may be paid with Tax Increments are:
(1) land acquisition;
(2) demolition and removal of structures;
(3) relocation of occupants;
(4) Infrastructure;
(5) to prepare an industrial development plan;
(6) to organize, coordinate, and direct the administration of this Ordinance;
(7) to conduct appraisals, title searches, surveys, studies, and other preliminary plans
and work necessary to prepare for the undertaking of Infrastructure Development
Projects;
(8) acquisition of infrastructure -deficient areas or portions thereof;
(9) administrative costs associated with the management of the Technology Tax
Increment District;
(10) assemblage of land for development or redevelopment by private enterprise or
public agencies, including sale, initial leasing, or retention by the City at its fair
value;
(11) the compilation and analysis of pertinent information required to adequately
determine the infrastructure needs of secondary, value -adding industries in the
Technology Tax Increment District;
(12) the connection of the Technology Tax Increment District to existing infrastructure
outside the Technology Tax Increment District;
(13) the provision of direct assistance to secondary, value -adding industries to assist in
meeting their infrastructure and land needs within the Technology Tax Increment
District;
(14) the Tax Increments received may be pledged, pursuant to Section 7-15-4290 of
the Act, for the payment of the principal of, premium, if any, and interest on
revenue bonds issued for Industrial Infrastructure Development Projects, general
obligation bonds, revenue bonds, or special assessment bonds issued to pay
Technology District costs described in Section 7-15-4288 of the Act, including (i)
the items listed in (1) through 13 above or (ii) any other costs otherwise
authorized to be paid under the terms of the Act.
Section 4. Boundaries. The boundaries of the Technology Tax Increment District are
(i) described in Exhibit A attached hereto and made a part hereof, and (ii) are shown on the map
attached hereto as Exhibit B.
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Section 5. Base Year. For the purpose of calculating the Incremental Taxable Value
each year for the life of the Technology Tax Increment District, the Base Taxable Value shall be
calculated as the taxable value of all property within the Technology Tax Increment District as of
January 1, 2005.
Section b. Term of the Technology Tax Increment District. The Technology Tax
Increment District will terminate upon the later of:
(a) the fifteenth (15") year following the creation of the Technology Tax
Increment District; or
(b) the payment or provision for payment in full or discharge of all bonds
(including special assessment bonds) for which the Tax Increment has been pledged, and
the interest thereon.
After termination of the tax increment financing provision, all taxes shall be levied upon
the actual taxable value of the taxable property in the Technology Tax Increment District and
shall be paid into the funds of the taxing bodies levying taxes within the Technology Tax
Increment District.
Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30)
days after its final passage and adoption by the City Council of the City.
Section 8. Conflict with other Ordinances and Resolutions. All parts of ordinances
and Resolutions in conflict with this Ordinance are hereby repealed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 21ST DAY OF NOVEEMBER, 2005.
ATTEST:
Theresa White
City Clerk
200.5356 0 9 D
EXHIBIT A
SHORT DESCRIPTION OF THE PROPOSED TECHNOLOGY TAX INCREMENT
DISTRICT
The proposed Old School Station Technology Tax Increment District of the City of
Kalispell, Montana is located just east of Highway 93 on Demersville Road approximately 1.9
miles south of Four Corners intersection and directly east of the Rocky Cliff Road intersection
and is situated within that property that is legally described as that portion of Parcel A of
Certificate of Survey No. 16337 in the SW 1/4 of Section 33, Township 28 North, Range 21
West, P.M.M., Flathead County, Montana. The portion of the property dedicated to the
technology tax increment district is proposed to be Lots 2, 3, 4, 5, 6, 7, 8, 9, and 10 as shown in
the drawing entitled "Old School Station" and attached hereto and incorporated fully herein by
this reference. These nine lots comprise a total of approximately 27.77 acres.
(The remainder of this page is intentionally left blank.)
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EXHIBIT B
MAP OF THE PROPOSED INDUSTRIAL TAX INCREMENT DISTRICT
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Return to:
Theresa White
City Clerk
P.O. Box 1.997
Kalispell, MT 59903
CERTIFICATE AS TO ORDINANCE ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell,
Montana (the "City"), hereby certify that the attached ordinance is a true copy of Ordinance 1558 entitled:
"AN ORDINANCE ESTABLISHING A TECHNOLOGY TAX INCREMENT DISTRICT TO ASSIST
IN FINANCING NECESSARY INFRASTRUCTURE TO ENCOURAGE THE LOCATION AND
RETENTION OF TECHNOLOGY DEVELOPMENT PROJECTS IN THE STATE OF MONTANA.
AND THE CITY OF KALISPELL, MONTANA; PROVIDING FOR .DEFINITION OF TERMS;
ESTABLISHING THE COSTS WHICH MAY BE PAID BY THE TECHNOLOGY TAX INCREMENT
DISTRICT TO BE CREATED BY THIS ORDINANCE; CREATING AND APPROVING THE OLD
SCHOOL STATION TECHNOLOGY TAX INCREMENT .DISTRICT OF THE CITY OF KALISPELL,
MONTANA; AND ESTABLISHING THE BOUNDARIES OF THE OLD SCHOOL STATION
TECHNOLOGY TAX INCREMENT DISTRICT; ESTABLISHING JANUARY 1, 2005 AS THE BASE
TAXABLE YEAR FOR THE OLD SCHOOL STATION TECHNOLOGY TAX INCREMENT
D.ISTRICT." (the "Ordinance"), on file in the original records of the City in my legal custody; that the
Ordinance was duly adopted by the City Council of the City at a regular meeting on November 21, 2005,
and that the meeting was duly held by the City Council and was attended throughout by a quorum,
pursuant to call and notice of such meeting given as required by law; and that the Ordinance has not as of
the date hereof been amended or repealed.
1 further certify that, upon vote being taken on the Resolution at said meeting, the following
Council Members voted in favor thereof: Jim Atkinson, Kari Gabriel, .Bob Herron, Randy Kenyon, Tim
Kluesner, Duane Larson, Hank Olson, and Mayor Pamela B. Kennedy ; voted against the same: Bob
Hafferman ; abstained :from voting thereon: None ; or were absent: None.
WITNESS my hand and seal officially this 21st day of November, 2005.
UN
' (SEAL)
Theresa White
MTE
City Cleric
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