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3. Resolution 5080 - Resolution Adopting Development Plan - Old School StationCity of Kalispell Charles A. Harball office of City Attorney City Attorney 312 First Avenue East P.O. Box 19 Kalispell, MT 59903-1997 MEMORANDUM O* Mayor Pamela B. Kennedy and Kalispell City Cou ell FROM: Charles Ha ball, City Attorney James H. Patrick, City Manager Tel 406.758.7708 Fax 406.758.7771 charball@kalispell.com SUBJECT: Resolution So o — Adopting a Development Plan for the Technology 'fax Increment District MEETING DATE: Monday, November 21, 2005 - Regular Meeting BACKGROUND: The state legislature gave local government the a-uthority to create Technology 'fax Increment Districts in the 2005 legislative session. This legislation differs from the creation of the Industrial Tax Increment District in that the local government must `{formally adopt a comprehensive development plan that ensures that the district can host a diversified tenant base of multiple independent tenants."" The Development Plan, attached to Resolution. So o as Exhibit 'W', is composed of a description of the infrastructure required within the subdivision that is designed to attract and hold a diverse base of technological businesses. RECOMMENDATION: "hat Council consider and pass Resolution Soo as a comprehensive development plan that duly satisfies the requirements of the statute. FISCAL EFFECTS: The comprehensive development plan of this district is a integral Part of good management practices that improve fiscal planning, Respectfully submitted. --------------- .. . ....... Charles Harb ll, City./Attorney Jwmes H. Pat ' —rick, City Manager RESOLUTION NO. 5080 RESOLUTION ADOPTING A. DEVELOPMENT PLAN FOR A TECHNOLOGY TAX INCREMENT DISTRICT UNDER MONTANA CODE ANNOTATED I E 7, CHAPTER 15, PART 42 AND MAIUNG CERTAIN OTHER FINDINGS WITH RESPECT THERETO. WHEREAS, the City of Kalispell, Montana (the "City") is defined as a "municipality" under Montana Code Annotated, Section 7-15-4283, as amended, fbT the purpose of creatinghnl ' District (the "District'") .pursuant to Montana Code Annotated, Section 7-15- 2 5, as amended, and being operated bv the City pursuant to Montana Code Annotated, Sections '-15-42 2 through -15- 293 and Montana Code Annotated, Title 7, Part 15, Chapter 43 (collectively, the ``Act"); and HEREAS, subject to the satisfaction o certain requirements contained in the Act, theCity is authorized pursuant to Section 7-. - 2 5 of the Act to consider inftastructure improvements necessary for technology development and to adopt a comprehensive development plan (the"Plan"') that would ensure the District's ability to host a diversified tenant base of multiple independent tenants; and WHEREAS, the City Council of the City (the '@'Council", y a vote of 7 o 2, adopted Resolution No. 5071 on October 17, 200 (the "'Preliminary Resolution"'), made preliminary findings and gave its notice of intent to form. the District and gave notice of a public hearing on a proposed ordinance establishing the District under the Act. WHEREAS, the Council, on November 7, 2005, after publication of the public hearing notice as required by the Act and after hearing comments on the formation of the District at a public hearing, passed the first reading of ordinance No. 155 the "Ordinance" a vote of 7 to 1 authorizing the formation of the District. THE CITY COUNCIL THE CITY of KALISPEL 1, M N ANA HEREBY FINDS, DETERMINES, AND DECLARES THAT: . Based on all evidence made available to the Council to date related to the District, the area of the District is found to be deficient in infrastructure improvements necessary for technology development. . The Plan, as contained in Exhibit A attached to this resolution, is formally adopted a the comprehensive plan structured to ensure that the District can host a diversified tenant base o multiple independent tenants. PASSED AND APPROVED Y THE CITY COUNCIL AND SIGNED BY THE MAYOR of THE CITE'' OF KALISPELLHIS 21 ST DAY OF NOVEMBER, 2005. ATTEST: : Theresa White City Clerk Pamela B..yenned Mayor EXHIBIT A Comprehensive Infrastructure and Business Plan For Old School Station Technology and. Industrial 'ark In order to meet the challenge of balancing the economy of the City of Kalispell and enhance the economic work base by creating livable wage jobs, the City of Kalispell (City), in partnership with Montana venture Partners (MVP), intends to develop Kalispell"s first Industrial Park with the use of Industrial and Technology Tax Increment Funding Districts. This industrial park will provide a advantageous location as the gateway to the Flathead Valley for unprecedented lo - tern high wage job creation, increased business diversification and strengthening of the manufacturing, distribution, and technology based employment in the Flathead valley. MVP will extend sewer and water lines to its project location at the intersection of leersville Road and Rocky Cliff Drive. This extension of City services south of Kalispell will create additional commercial and residential growth. The City will design and construct the internal al infrastructure utilizing Special Improvement District bonds. The City will overlay this industrial park with a technology and industrial tax increment Districts to provide incentives for qualifying companies. The TIF would pay for the SID assessments and reduce the property acquisition cost. Once the TIF approval is concluded, MVP will begin preliminary site grading. The estimated time for that portion will be 52 days. The utility design is nearing completion and the anticipated time for construction is approximately 110 days and the old School Station infrastructure construction estimated to take 105 days. once this work is completed, MVP will begin aggressive marketing. It is anticipated that Fun Beverage, the first tenant, will begin construction once final approvals are obtained. There are two technology businesses ready to proceed once approvals are riven. The first is a technology development center and the second is an entertainment center for movies, TV and radio production. The City and MVP is poised to develop the 55 acre technology and industrial park called "old School Station"', taking its name from the original century —old l emersville School that stands today near the MVP property. The project will have 17 lots available, to which high technology business, distribution facilities, communication and entertainment production facilities, and light industrial businesses will be recruited. The new developed businesses will acid balance and diversity as well as strengthen the existing tax base for the City. The use of Tax Increment Financing (TIF) funds will assist in the recruitment of these businesses. The Technology/Industrial Park is located approx]-mately 1.9 miles south of the current City limits at the intersections of 14WY 93 South, l emersville Road and Rocky Cliff Road. To the immediate northeast is the old town site of Demersville while to the east co-flunues one to three miles of farinl and stretching to the winding Flathead River. on the west side of HWY 93 i interspersed residential and light industrial development. The park provides immediate access (within 100 yards) to Highway 93 ru.nin.g north and south by the park. In October Zoo, the Colorado College State of the Rockies .deport determined the Flathead Valley to be the most diversified economy within the Rocky Mountain region. This diverse economy includes agriculture, light manufacturing, information technology, recreation/tourism, timber, residential and commercial construction and services (including medical, real estate, and professional) services. Flathead County is the second fastest growing county In Montana since coo(U.S. Census, www. e �increasing 9.1% in population from 74471 to 81,217. Flathead County is anchored by its .regional trade center, Kalispell, whose 17,381 population has grown. 22.2% since the 2000 census. The largest employers in Flathead County includes .Northwest healthcare (regional hospital), Plum Creek, and Semitool, representing the increasing presence of high tech, medical, and value-added manufacturing industries that are in the Valley ;already. These employers also represent a larger trend away from a resource extraction based economy to one or resource recreation. Since jobs are moving away from a resource extraction to technology and value-added d economy, people have learned to reinvent their skills. This trend has had two fundamental results: 1 the necessary retraining of the middle to senior age workforce 35- ; and 2 the phenomenon commonly referred to as "brain -drain"' in which the younger generational workforce 1 -35 migrates away from the region in search of immediate, higher paying opportunities. Recognizing this issue, tangible efforts must be made to improve the local environment for business development and job creation opportunities for the younger generation. The local Flathead Valley Community College is growing to ``university" size, with almost 4000 full or part time students during the 2004 year and is currently expanding its facilities to concentrate on high --end manufacturing and technology based workforce development curriculum to support more high tech and industrial businesses moving to this area. y creating jobs that are more technology fused and value-added results in higher paying, immediately -engaging and cross -marketable employment which caters to the type of employment that is attractive to the entire workforce, but especially the younger generations, and Provides a livable gage for the workforce. Old School Station Technology and Industrial Park will benefit from the immediate resource pool of talented workers as well as add to the diversification that it and the general economy will enjoy, The secondary advantage to the creation of this technology and industrial park is the balancing of the tax base. For every dollar of taxes collected by industrial the City provides approximately $A9 of services. This tax advantage assists in keeping the residential taxes down. Old School Station site plan was designed to accommodate the natural beauty and topography of the land. All building sites will have City water, sewer, gas, electric, high speed Internet services, fiber optics and phone services. Streets will be paved with road curbs and street lights. The 10 root easement around the project will have a j o i.ng/wal ing trail completely surrounding the perimeter or this site to accommodate pleasure walking and exercise. The intent of the site plan is to have all sites .having a 30 degree vier of the Flathead Valley# Opportunity abounds for old School Station. This will be the first technology and/or industrial park in the City of Kalispell. The City hopes to seize the momentum of the current national economy, and the appeal of this area to recruit high tech and industrial businesses. With the City partnership, quality companies will be enticed by the TIF program and aided by City water, sewer, natural gas, and high technology communication systems. All tenants will. have high tech infrastructure combined with curbed streets, street lighting, landscaping, sewer, water, and serviced by City Fire and Police services. Combined with the natural outdoor amenities, and covenants protecting; the quality development, the environment will be an additional draw to businesses and employees. Old School Station will be managed by MVP until eight of the lots are sold. At that time, a Business Park Association ill be formed with those eight tenants, along with the remaining nine lots being maintained tained MVP until all lots are sold. MVP will be involved either directly o indirectly until the Park is completely full and successful. The business park association allows for the park tenants to determine their own needs and find effective ways to maintain and enhance their work environment. ent. Tenant development and marketing; will be a combined effort between the City and MVP. It is by this combined effort and energy, working hand in hand, that will make this park a success for all entities involved. The City participation. in building the infrastructure through S D and creating the TIF districts to pay those special assessments will offer many opportunities for MVP and the City to market the location and opportunities for business development. The TIF will greatly assist in structuring an economic package and solidify the position to promote growth. MVP's three year projection anticipates two projects being started in 2005, three being started in 2006, and three projects in 2007. This timeline is realistic rid attainable. Optimistically, it is anticipated that a certain amount of momentum will account for a more aggressive growth. MVP feels that with the support and partnership of the City and with an aggressive marketin2 strategy that within seven to eight years the Park will be completely filled and operating; at .full capacity.