01. Ratification of Resolution 4797 - Creating Downtown Business Improvement District (Tabled 7/7/03)City of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 312 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO:
FROM:
SUBJECT:
MEETING DATE:
MEMORANDUM
Mayor Pamela B. Kennedy
and Kalispell City Council
Charles Harball, City Attorney
Chris Kukulski, City Manager
Tel 406.758.7708
Fax 406.758,7771
charball@kalispell.com
Ratification of Resolution 4797 Creating the Downtown BID
Monday, August 4, 2003
BACKGROUND: As Council will recall, at the July 7 Council meeting, after a public
hearing, the Council passed Resolution 4797 creating a Downtown Business
Improvement District. At that time those persons who had filed a written protest were
allowed the time and forum to address the reasons and rationale for their protests. The
Council considered that, pursuant to statute, less than 50% of the landowners and less
than 50% of the taxable value represented in the BID protested the formation of the
BID. Therefore Council passed the resolution creating the district.
Council will also recall that one of the protestants, represented by attorney
James Bartlett, expressed concern that the City had not considered the protests based
upon percentage of projected assessments. At that time I explained to Council that the
City had not offered, nor could it offer, any projection of assessments on the properties
as no directors were yet appointed, no work plan and no budget or assessment method
was in place to make any such projections.
In speaking with attorney Bartlett some time after the meeting he expressed the
fact that the proponents of the BID had presented the petitions to landowners with the
representation of projected assessments based upon an annual budget set at $60,000
per year and the method of assessment that was a pro-rata of the total assessed
valuation of the BID properties. I confirmed this fact with Bill Goodman, one of the
proponents. Mr. Bartlett felt that, although this was not the City's representations, it
should be taken into account by Council in its deliberation. After some consideration, I
tend to agree, although the statutory mechanism seems to place the City in a somewhat
untenable position.
Ratification of BID Memo
July 31, 2003
Page - 2
I have therefore attached a spreadsheet that illustrates the extent of the protest
based upon percentage of protests represented by those projected assessments. These
figures represent an annual budget of $60,000.00 and are based upon the most recent
assessed valuations of the properties within the BID. Apparently Bill Goodman was
using some older valuation figures so that these numbers before you don't match up
exactly with those numbers presented to the signers of the petitions. However, they are
very close. As you can see, the total percentage of protest, based upon projected
assessment, is 27.68%, which is, again, short of the statutory threshold.
RECOMMENDATION: I recommend that a motion be made by a Council Member
that the issue be brought back for discussion and consideration by Council so that the
percentage of projected assessment analysis may be taken up. If Council then
determines that the protests are inadequate based upon this evaluation as well, it
should ratify its action previously taken to create the BID.
FISCAL EFFECTS: The fiscal effects on the City are as previously discussed.
Respectfully submitted,
^P
Charles 44arfiall, City Attorney
Chris Kukulski, City Manager
Office of City Attorney
City of Kalispell
RatifioationofBID Memo
July 3l,2003
Glacier Bank 247055 $ 69,20010
248005 $ 148.550.00
247625 $ 11U75OOO
' ' 38996 2.335.58
083358 $ 408.593.00
248100 $ 823.800.00
First Interstate Bank 173750
$
76,843I0
823751
$
77.250.00
160539
$
77.250.00
160700
$
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' � 11.6096 6.902.36
160750
$
77.250.00
160800
$
77.250.00
160850
$
4.386.950.00
BUDKAL
9165 $ 568,200.00 1.33%
790.35
0.20%
122.22
Office ofCity Attomey
City of Kalispell