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Ordinance 1557 - Old School Station - Industrial Tax Increment DistrictORDINANCE No. 1557 AN ORDINANCE ESTABLISHING AN INDUSTRLALL TAX INCREMENT DISTRICT TO ASSIST IN FINANCING NECESSARY INDUSTRLkL INFRASTRUCTURE TO ENCOURAGE THE ATTRACTION,, GROWTH AND RETENTION of SECONDARY VALUE,ADDING INDUSTRIES TO THE CITY of I AL SPELL, M NTANA. PROVIDING FOR DEFINITION ofTERMS; ESTABLISHING THE COSTS WHICH MAY BE PAID BY THE INDUSTRIAL TAX INCREMENT DISTRICT o BE CREATED THIS oRDNANCE4, CREATING AND APPROVING THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT of THE CITY of KAL S ELL MONTAN,A; AND ESTABLISHING THE BOUNDARIES of THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT; ESTABLISHING ANUARY 11 2005 AS THE BASE TAXABLE YEAR. FOR THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT. WHEREAS, the City of Kalispell, Montana the "City"') 's defined as a "municipality"" under Montana Code Annotated, Section 7-15-23, as amended, for the purpose of creating a Industrial District pursuant to Montana Code Annotated, Sections '-15-429 7-15-4299, as amended,, and being operated by the City pursuant to Montana Code Annotated, Sections -1 - 2 2 through -15- 293 and Montana Code Annotated, Title 7, Part 15, Chapter 3; and WHEREAS, pursuant to Montana Code Annotated, Sections -15- 2 2 through *7- 5 - 299, as amended (the "'Act''), including Montana. Code Annotate, Sections 7-5-297 through 7-15- 299, as amended, the City Council (the "City Council") of the City may create an Industrial 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 Counc1*1 wishes to encourage the attraction and retention o secondary,value-adding industries to the City- and WHEREAS, secondary value -adding industrial industries require expensive infrastructure improvements which are beyond the available resources of the City to provide; and YMEBAS, the City Council of the City has determined, after a public hearing required by the Act and receipt of public input, that there is a need for this Ordinance to create the old School Station Industrial Tax Increment District of the City of Kalispell, Montana and the City Council wishes to enact this ordinance. at which public hearing all persons were given an opportunity to be heard. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL of THE CITY of KA IS E L, M NTAT.A, AS FOLLOWS: Section 1. Definitions. In this ordinance the following terms have the meanings indicated below. 2005356 0�i (a) "Act"" means Montana Code Annotated, Section 7-15-4282 through - .5- 2, as amended. (b) "Actual Taxable value's means the taxable gale of table 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, Industrial 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 - 5- 28 or ' - 5-42 3 of the Act. "Industrial District"' .means an Industrial Tax Increment District created pursuant to Section 7-15-4209 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 Industrial Tax Increment District. (e) "Industrial District"' means a tax increment financing ind st al district such as the Industrial Tax Increment District, created pursuant to Section 7- -42 of the .act. (f) "Industrial Infrastructure Development 'rojecf` means a project undertaken within or for an Industrial District that consists of any or all of the activities authorized by Section 7-15-4288 of the Act. (9) "Industrial Tax Increment District" means the old School Station Industrial Tax Increment .District of the City of Kalispell, Montana designated as such by the City Council in accordance with the provisions of the Act. (h) "Infrastructure" means the acquisition, construction, and improvement of streets, roads, curbs, gutters, sidewalks, pedestr*an malls, alleys, parking lots and of-I`street parking facilities, sewers, sever lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, 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 fil'part 47 of Chapter 14 of the Montana Code Annotated, and items of personal property to be used in connection with ftnprovements for which the foregoing costs may be incurred (i) "Tax Increment" means the collections realized from extending the tax levies, expressed in mills, of all taxing bodies which the Industrial 'fax Increment District or a part thereof is located, against the Incremental Taxable value. 0 "Taxes"" means all taxes levied by a taxing body against property on an ad valorem basis. 2005356 D 9 100 Section 2. PU . The purpose of this Ordinance is to i) create an Industrial Tax Increment District to be known as the Old School Station Industrial Tax Increment District of the City of Kalispell, Montana, h to encourage the growth and retention of secondary, value -adding industries in the City, and i provide a financial mechanism for the installation and construction of infrastructure improvements for industrial development. Section 3. Findings Determinations,_and Declarations. Based on representations rude 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) trough below. The City Council of the City of Kalispell, Montana hereby finds, detennines, and declares that: (a) this ordinance and the formation of the Industrial Tax Increment District, as proposed, will facilitate the development of the necessary Infrastructure to support industrial growth within the Industrial Ta.x Incre cent District; (b) the passage of this ordinance and the establishment of the Industfial Tax Increment District fail within the economic goals adopted by the City Council and the adoption therefor is in the public interest; (c) the Industrial Tax Increment District consists of a continuous area with are accurately described boundary; (d) the Industrial Tax Increment District is zoned for fight or heavy industrial use in accordance with the City's master plan.g documents; (e) the Industrial Tax Increment District does not include any .property located within an existing urban renewal area district created pursuant to the Act; (f) the land in the Industrial Tax Increment District is currently deficient in Infrastructure improvements for in rustriai development; and (g) the purpose of the Industrial Tax Increment District is the development o Infrastructure to encourage the growth and retention of secondary, value --adding i,ndst.es in the City. Section 4. Costs whickmay be paid the City from Tax Increments, The 'Tax Increment received by the City from the from the Industrial Tax Increment District may be used to lay any costs or obligations incurred for an Industrial infrastructure Development Project in the Industrial Tax Increment District) including those listed in ) 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; 2005356­�% (4) Infrastructure; (5) to prepare an industrial development plan; (6) to org=*ze, 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 rj ects; (8) acquisition of infrastructure -deficient areas or portions thereof, (9) administrative costs associated with the management of the Industrial 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 Industrial Tax Increment District; (12) the connection of the Industrial Tax .increment District to existing infrastructure outside the Industrial Tax Increment District; I. the provision of direct assistance to secondary, value -adding industries to assist i meeting their infrastructure and land needs within the Industrial Tax Increment District; (14) the Tax Increments received may be pledged, pursuant to Section -1 - 2 o o the Act, for the payment of the principal of, premium, if any, and Mnterest on revenue bonds issued for Industrial Infrastructure Development Projects, general obligation bonds, revenue bonds, or special assessment bonds issued to pay Industrial District costs described in Section 7-15-4288 of the .Act, including (i) the items listed in T through. 13 above or ii any other costs otherwise authored to be paid under the terns of the Act. Section 4. Boundaries* The boundaries of the Industrial Tax Increment .district are (i) described in Exhibit A attached hereto and made a part hereof, and H are shown on the map attached hereto as Exhibit B. Section 5. Base Year. For the purpose of calculating the Incremental Taxable Value each year for the life of the Industrial Tax Increment ent District, the Base Taxable Value shall be calculated as the taxable value of all property within the district as of January 1, 2005 Section 6. Terra of the industrial Tax Increment District. The Industrial Tax Increment .district will terminate upon the later of: (a) the fifteenth 1 'h year following the creation of the Industrial Tax Increment District; or (b) the payment or provision for payment 'n full or discharge of all bonds (including special assessment bonds) for which the Tax Increment has been pledged, and the interest thereon. 2005356 0 Aber termination of the tax increment financing provision, ion, all taxes shall be levied upon the actual taxable value of the taxable property in the Industrial Tax Increment District and shall e paid into the funds of the taxing bodies levying taxes within the Industrial '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 Reso tions 'n conflict with this Ordinance are hereby repealed. PASSED AND APPROVED Y THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF N VEMBER, 2005. Pamela B. Re"n n y Mayor 7f ATTEST: Theresa White City Clerk �aa5356 0t4C',U EXHIBIT A SHORT DESCRIPTION of THE PROPOSED INDUSTRUL TAX INCREMENT DISTRICT The proposed old School Station Industrial Tax Increment District of the City o 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 o Certificate of Survey No. 16337 in the SW of Section 33, 'township 28 North, Range 2 West, .M.M., Flathead County, Montana. The portion of the property dedicated to the industrial tax increment district is proposed to be Lots 11, 12, 13, 14, 15, 16, and 17 as shown in the drawing entitled "Old School Station" and attached hereto and incorporated fully herein by this reference. 'these seven lots compfise a total of approximately 9.13 acres. (The remainder of this page is intentionally left blank.) 0`11005356 G361 of rw b EXHIBIT MAP OF THE PROPOSED INDUSTRUL TAX INCREMENT DISTRICT rw do OLD SCHOOL STATION Y y�°n Return to: Tberesa White City Clerk P.O. Box 1997 Kalispell, ell, MT 59903 -t5'� CERTIFICATE AS To ORDINANCE AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of KaJis e 1, Montana (the "'City"), hereby certify that the attached ordinance is a true copy of ordinance 1557 entitled: "AN ORDINANCE ESTABLISHING AN INDUSTRIAL TAX INCREMENT DISTRICT To ASSIST N FINANCING NECESSARY INDUSTRIAL INFRASTRUCTURE To ENCOURAGE THE ATTRACTION, GROWTH, AND RETENT ON of SECONDARY VALUE -ADDING INDUSTRIES To THE CITY of KALISPEL , MONTANA; PROVIDING FOR DEFINITION of TERMS; ESTABLISHING THE COSTS vHICH. MAY BE PAID BY THE INDUSTRIAL TAX INCREMENT DISTRICT To BE CREATED BY THIS ORDINANCE; CREATING AND APPROVING THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT .DISTRICT of THE CITY OF KN ISPEL , MONTAN.A; AND ESTABLISHING THE BOUNDARIES of THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT; ESTABLISHING . AN ARY I , 2005 AS THE BASE TAXABLE, YEAR FOR THE OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT." (the "Ordinance"), on file 1.n 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 bylaw; and that the Ordinance has not as o the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Council Members voted in favor thereof: Jim Atkinson, Karl Gabriel Bob Derron Randy Kenyon, Tim Klu B. Kennedy voted against the same: Bob Iafferau ; abstained from voting thereon: None ; or were absent; None . WJT,NSSmy hand and seal officially this 21st day of November, 2005. e - ..4&. Y Theresa White 9 City Clerk f ��ryury4�