01. Ratification of Resolution 4797 - Creating Downtown Business Improvement DistrictCity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 312 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO: Mayor Pamela B. Kennedy
and Kalispell City Council
FROM: Charles Harball, City Attorney
Chris Kukulski, City Manager
Tel 406.758.7708
Fax 406.758.7771
charball@kalispell.com
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BACKGROUND: As Council will recall, at the last 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.
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Bartlett, expressed concern that the City had not considered the protests based upon percentag
of projected assessments. At that time I explained to Council that the City had not offered, no
could it offer, any projection of assessments on the properties as no directors were yet appointe
no work plan and no budget or assessment method was in place to make any such projections. I
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
rprojected assessments based upon an annual budget set at $60,000 per year and the method of
2ssessment that was a pro-rata of the total assessed valuation of the BED properties. I confirmel
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
2. somewhat untenable position.
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
Ratification of BID Memo
July 2, 2003
Page - 2
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
1-!,rojected 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,
Charles !�arbali*City Attorney
Chris Kukulski, City Manager
Office of City Attorney
City of Kalispell
Ratification of BID Memo
July 2, 2003
Page - 3
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Office of City Attorney
City of Kalispell
RESOLUTION NO.4797
A RESOLUTION CREATING A BUSINESS IMPROVEMENT DISTRICT PURSUANT TO
THE TERMS OF TITLE 7 CHAPTER 12 PART 11 OF MONTANA CODE ANNOTATED.
WHEREAS, pursuant to Title 7 Chapter 12 Part 11 of Montana Code Annotated, the City of
Kalispell is authorized to create business improvement districts; and
WHEREAS, the City of Kalispell was presented with petitions signed by the owners of more than
60% of the area of the property to be included in the district, the exterior boundaries
of which are shown on the attached Exhibit "A" and which by this reference is made
a part hereof, and
WHEREAS, the aforementioned petition requests that the City of Kalispell create a business
improvement district for up to ten (10) years, pursuant to Section 7-12-1141 MCA;
and
WHEREAS, the purpose of said business improvement district appears to promote the health,
safety, prosperity, security and general welfare of the inhabitants of the City of
Kalispell and the proposed district, and appears to be of special benefit to the
property within the boundaries of said proposed district as shown on the attached
Exhibit "A"; and
WHEREAS, on May 19, 2003 the Kalispell City Council issued Resolution 4792 declaring its
intent to create a business improvement district for the city of Kalispell, Montana, to
fix a date of a public hearing for June 16, 2003, and to provide for publication of
notice of said hearing; and
WHEREAS, the City Clerk caused proper notice of passage of the resolution to be published as
provided in MCA 7-1-2121 and by mailing a copy of the notice to every owner of
real property within the proposed district listed on the last completed assessment roll
for state, county, and school district taxes, at the owner's last -known address, on the
same day the notice was first published or posted; and
WHEREAS, upon proper notice having been given and upon the expiration of 15 days as required
by MCA 7-12-1113, the office of City Clerk did receive a number of written
protests, although not in sufficient numbers to bar proceedings as allowed by MCA
7-12-1114 and said protests being duly considered and passed upon at a public
hearing held June, 16, 2003.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the Kalispell City Council shall and does hereby create a business
improvement district pursuant to Title 7 Chapter 12 Part 11, Montana Code
Annotated the term of which shall be ten (10) years and which shall be
known as the "Kalispell Downtown Business Improvement District."
SECTION H. Said business improvement district shall have boundaries as shown on the
attached Exhibit "A" which by this reference is made a part hereof; provided,
however, that all property classified as a commercial improvement within the
district will be included in the district. All publicly owned property and
owner -occupied single family residential property within the district are
specifically excluded from the business improvement district and are exempt
from its assessments.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 16th DAY OF
ATTEST:
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City Clerk
EXHIBIT "A"
Legal Description
Downtown Kalispell Proposed Business Improvement District
Commencing at the intersection of Main and Center Street which is the True Point of Beginning;
thence easterly along the centerline of East Center Street, 616 feet, more or less, to a southerly
extension line of the west boundary of Lot 2, Phase 1 of Kalispell Market Place; thence northerly to
the southwest corner of said Lot 2; thence continuing northerly along the west boundary of Lot 2 to
the northwest corner of said Lot 2; thence easterly along the northern boundary of and to the
northeast corner of said Lot 2; thence southerly along the easterly boundary of said Lot 2 to the
southeast corner of said Lot 2; thence continuing southerly on 2nd Avenue East to an easterly
extension line of Lot 1 of Block 37, Kalispell Original; thence westerly to the southeast corner of
said Lot 1; thence continuing westerly along the southerly boundary of said Lot 1 to the centerline
of the alley in of said Block 37; thence southerly through the alley to 1" Street East; thence
continuing southerly through the alley between Linderman School and Block 44 of Kalispell
Original; thence continuing southerly through the alley of Blocks 57 and 64 of Kalispell Original to
4th Street East; thence continuing southerly through the alley of Block 77 to an easterly extension
line of Lot 17 of Block 77, Kalispell Original; thence westerly along the southern boundary of said
Lot 17 and crossing lst Ave East to the southeast corner of Lot 2 of Block 76, Kalispell Original;
thence continuing westerly along the southern boundary of said Lot 2 to the alley in said Block 76;
thence southerly through the alley to an easterly extension line of Lot 20 of Block 76; thence
westerly along the southern boundary of said Lot 20 and to the centerline of Main Street; thence
northerly along Main Street to the intersection of 4th Street; thence westerly along the centerline of
4th Street East to a southerly extension of the alley of Block 67 of Kalispell Original; thence
northerly through said alley to the centerline of 3rd Street West; thence easterly along 3rd Street
West to the centerline of l't Avenue West; thence northerly along 1st Avenue West to an easterly
extension line of the southern boundary of Lot 7 of Block 54, Kalispell Original; thence westerly
along the southern boundary of said Lot 7 to the alley; thence northerly through the alley, crossing
2nd Street West and continuing northerly through the alley of Block 47 of Kalispell Original, to an
easterly extension line of the southern boundary of Lot 18 of Block 47; thence westerly along the
southern boundary of said Lot 18 to the centerline of 2nd Avenue West; thence northerly along 2nd
Avenue West crossing lst Street West, to a westerly extension line of the southern boundary of
Amended Lot 17 of Block 34, Kalispell Original; thence easterly along the southern boundary of
said Amended Lot 17 to the alley; thence northerly along the alley to the centerline of West Center
Street; thence easterly to the intersection of West Center Street and Main Street to the True Point of
Beginning. The area proposed for the Downtown Business Improvement District encompasses
approximately 42.4 acres.