E/3. Resolution 4601 - Authorizing Department of Commerce Grant ApplicationCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
REPORT TO:
FROM:
SUBJECT:
MEETING DATE:
The Honorable Mayor Boharski and City Council
Susan Moyer, Community Development Director
Chris A. Kukulski, City Manager
Department of Commerce Economical Development Administration
Grant Application
February', 2001
BACKGROUND:
The City of Kalispell, as a municipality, is eligible to apply for an EDA Grant for public facility type of projects
that will result in job creation —particularly higher paying job creation. The City has won and administered
three large EDA grants in the past, and can utilize these funds on a dollar -for -dollar matching basis in bringing
water and sewer services to the Section 36 and Reserve Drive area.
The submission of a pre -application for EDA funding does not commit the City to anything other than officially
starting the review process. All pre -applications are the format utilized by EDA so they can determine whether
they wish to invite a full-blown application on a project. A full-blown application then would be submitted
contingent upon the project being able to move forward and a dollar -for -dollar match would have to be
identified from various funding sources, including the private sector.
Venue Tech Systems has committed to act as an anchor and partner in the park to take up to 5 acres for the
construction of a new corporate headquarters that is anticipated to employ over 200 new individuals with high
paying jobs over the next couple of years.
RECOMMENDATION:
Staff would recommend that the City Council authorize the submittal of a pre -application to EDA in the amount
of $750,000 to provide utility services to a high tech business park in or around the State Lands Section 36 area.
FISCAL EFFECTS:
The potential development of 25 to 35 buildings within the proposed park is anticipated to generate around $27
million in hard construction costs, and these properties will be reflected on the tax roles as they are built out.
Additionally, the businesses within the park have the potential of creating 2,500 higher paying jobs that will
result in a major impact on the Valley's economy and tax base.
ALTERNATIVES: As suggested by Council.
Respectful submitted,
Susan Moyer,
Community Development Director
C� A.
Chris A. Kukulski,
City Manager
Report compiled February 14, 2001
RESOLUTION NO. 4601
A RESOLUTION AUTHORIZING A PRE -APPLICATION TO THE MONTANA DEPARTMENT
OF COMMERCE FOR FINANCIAL ASSISTANCE FROM THE ECONOMIC DEVELOPMENT
ADMINISTRATION.
WHEREAS, the City of Kalispell is pre -applying to the Montana
Department of Commerce for financial assistance from the
Economic Development Administration (EDA) in the amount of
$750,000 for the purpose of providing water and sewer
utilities to the Section 36 and Reserve Drive area for the
high-tech business park; and
WHEREAS, the City of Kalispell
authority to construct,
utilities.
has the legal jurisdiction and
finance, operate and maintain said
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell agrees to comply with
all State laws and regulations and the
requirements described in the 2001-2002 EDA Pre -
Application Guidelines.
SECTION II. That the City Manager is authorized to submit,
on behalf of the City of Kalispell, the EDA Pre -
Application to the Montana Department of
Commerce, and to act on behalf of the City and
provide such other additional information as may
be required.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS
20TH DAY OF FEBRUARY, 2001.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk