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.
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.. . .......
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.