6. Stahlberg Petition to Reduce City AssessmentsCity of Kalispell
'1 Post Office Box 1997 - Kalispell; Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Charles Harball, City Attorney
Chris Kukulski, City Manager
SUBJECT: Stahlberg Petition to Reduce City Assessments
MEETING DATE: November 18, 2002
BACKGROUND: Mr. Gerry Stahlberg owns approximately seven acres of commercial
property [Northwest Machinery] at 740 West Railroad Street in the City of Kalispell. Over the
years he has been paying the full city assessments for this property, which include storm water,
streets and lighting. Mr. Stahlberg is asking the City to consider the fact that five of his seven
acres are encumbered by a Burlington Northern easement, which effectively renders those acres
useless for his commercial purposes. The City bases its assessments on the square footage of
property. The rationales for this formula are varied. It may be that 1) the size of the property is
reasonably proportional to its value and that properties of greater value should be paying greater
assessments or 2) that the properties of greater size receive more value of city services [streets or
lighting] or 3) that properties of greater size may be a greater burden on the city services [storm
water]. At least as to rationales 1 and 2, Mr. Stahlberg would argue that the railroad easements
significantly diminishes the value of his property and that because of the constraints placed on
his property by the tracks, his access to city streets and lighting is significantly diminished. As
to rationale No. 3, the City currently pays a lease fee of $1,600 per year to Burlington Northern
for the benefit of storm drain placement within its leasehold (including its easement on Mr.
Stahlberg's property). Mr. Stahlberg does not receive any such payment.
Based on the above information a workshop was held on October 21, 2002 to discuss Mr.
Stahlberg's request. At that time the Council discussed the issue and asked that it be placed on
the November 18 Council Agenda. Both Charlie Harball and I feel that Mr. Stalberg's situation
is unique and merits a reduction in his special assessments. It would be reasonable to limit the
assessments on the property to the square footage of land NOT encumbered by the BNSF
Easement (approx. 2 acres). I would further recommend that the City consider making this
action effective for tax year 2000.
RECOMMENDATION: The Council pass a motion authorizing the City Manager to reduce
Mr. Stahlberg's special assessments consistent with the square footage of land NOT encumbered
by the BNSF Easement. This action will be effective for tax year 2000.
Respectfully submitted,
CW,
Chris Kukulski, City Manager
Charles Harbal ity Attorney