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11. Resolution 4632 - Call for Public Hearing - Downtown Redevelopment Plan Modifications4D City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: FROM: SUBJECT: Honorable Mayor and City Council Chris A. Kukulski, City Manager Resolution 4632 Calling for a Public Hearing on a Proposed Modification to the Downtown Urban Renewal Project List. MEETING DATE: July 2, 2001 BACKGROUND: Attached is a memo from City Attorney, Glen Neier outlining the process of amending the project list for the Downtown Urban Renewal District. The memo details the step by step process necessary to make the amendments if the Council is to consider funding part or all of the City's Fire Station project and/or the City/County Health Department's request for $500,000. The actual date of the public hearing is unknown due to the fact that the request must first go the City/County Planning Board. The CCPB could take action on the request during their August meeting or they could choose to hold onto the request until September. The law provides the CCPB 60 days to respond to the request. Please remember that this process is necessary in order to consider either of the projects for funding, and amending the project list does not approve the actual funding. RECOMMENDATION: The City Council approve Resolution 4632 which calls for a public hearing to consider modifications to the Downtown Urban Renewal District's project list. FISCAL EFFECTS: None ALTERNATIVES: As suggested by the Council. Respectfully submitted, o A, —,24_ Chris A. Kukulski City Manager Report compiled June 28, 2001 Page 1 of 1 RESOLUTION NO. 4632 A RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSED MODIFICATION OF THE KALISPELL, MONTANA DOWNTOWN REDEVELOPMENT PLAN TO APPROVE CERTAIN PROJECTS AS URBAN RENEWAL PROJECTS. BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell, Montana (the "City"), as follows: Section 1. Recitals. 1.01. The City, by Ordinance No. 933, on September 10, 1979, adopted the Kalispell, Montana, Downtown Redevelopment Plan (the "Plan") as an urban renewal plan for the Downtown Redevelopment District (the "District") pursuant to Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, a amended (the "Act"), which Plan contained a provision for tax increment financing. Pursuant to the Act and the procedures contained in the Plan, the City has established a procedure for approving urban renewal projects from time to time. 1.02. Ordinance No. 933 directed that an urban renewal plan for blighted areas within the Kalispell Downtown Redevelopment Area be developed in accordance with the Montana Urban Renewal Law, and 1.03. Ordinance No. 933 recognized that an Urban Renewal Plan for the Redevelopment Area would require: a. The upgrading and improving of public and private utilities within the project area; b. The provision for public parking; C. The rehabilitation of residential and commercial structures; d. The acquisition of real and personal property; e. The relocation of person(s) displaced by acquisition of real property; f. The demolition and clearance of structures acquired by the City; g. The provision of public improvements; h. Building or site preparation for disposal; i. Disposition of acquired property for public and private redevelopment and/or rehabilitation. res/city hall-health.wpd 1 1.04. Ordinance No. 1065 amended the Urban Renewal Plan for the Kalispell Downtown Redevelopment Area on November 4, 1985, allocating $500,000 financed through the sale of tax increment revenue bond for a Parking Improvement Project. 1.05. The City Council, on November 5, 1999, pursuant to Resolution No. 4504, purchased Lots 3, 4, 5, 6, 7, 8, and a portion of Lot 9, Block 76, Kalispell, within the Urban Renewal Area, for the creation and preservation of public parking opportunities. 1.06. The City Council, through its goal setting meetings, has determined that the space needs of City employees have exceeded the facilities currently in existence at City Hall and associated annexes and after several months of examining alternatives has determined that the needs of City Hall would be best served by building a new fire hall on the City owned lots within Block 76 and remodeling the existing fire hall for office space. 1.07. The Flathead City -County Health Department/Flathead Board of County Commissioners have, through a capital improvement program, accumulated $ for the purpose of building a Health Department facility in Block 132, Kalispell Original, said property lying within the exterior boundaries of the District. 1.08. The Flathead City -County Health Department/Flathead Board of County Commissioners have requested that the City Council authorize the expenditure of $500,000 in urban renewal tax receipts for the purpose of assisting in the construction of the facility. Section 2. Relocation of Fire Hall and Remodeling of City Hall. The City Council hereby declares an intent to relocate the current Kalispell City Fire Department and remodel the current fire hall facilities into office space. The purpose of the Project is to provide the City with a fire hall and provide centralized City services at the lowest cost to the residents of Kalispell. Section 3. Objectives. To fulfill its purpose and achieve its goal, the objectives of the program are: a. Continue the presence of City of Kalispell offices within the District, thereby sustaining customer base for businesses located in the District. b. Provide individuals and business entities needing to utilize City services a convenient location to conduct business and receive services. res/city hall-health.wpd 2 C. Rehabilitate, through public investment within the District, blighted areas which are underutilized and promote mixed use development within the District. d. Encourage public redevelopment of City acquired property within the District. Section 4. Financing Method. The City anticipates that the Project, relocation of the existing fire hall and remodeling of the current fire hall into office space, will cost $2,500,000 to be financed by funds made available through the tax increment cash flow account. Section 5. Timetable. The City anticipates that construction of the Project will commence during the Spring of 2002 with final contracts for the construction of the fire hall and the remodeling of the current fire hall prior to June 30, 2002. Section 6. Assistance in the Building of a Health Department Facility. The City Council hereby declares an intent to assist the Flathead City -County Health Department/Flathead Board of County Commissioners in building a new Health Department by granting said entities the sum of $500,000 to assist in the construction. Section 7. Objectives. To fulfill its purpose and achieve its goal, the objectives of the program are: a. Replace a dilapidated and substandard facility with a new Health Department facility thereby encouraging the relocation of more governmental service facilities in the District. b. Provide individuals and business entities needing to utilize Health Department services a convenient location to conduct business and receive services. C. Rehabilitate, through public investment within the District, blighted areas which are underutilized and promote mixed use development within the District. d. Encourage public redevelopment of City acquired property within the District. e. Encourage private redevelopment of County owed property in an area of the City primarily dedicated to residential use. res/city hall-health.wpd 3 f. Increase customer base within the District by 40-50 employees working within the District. Section 8. Financing Method. The City anticipates that the Project, assisting the Flathead City -County Health Department/ Flathead Board of County Commissioners in building a Health Department facility, will cost $500,000 to be financed by funds made available through the tax increment cash flow account. Section 9. Timetable. The City anticipates assistance to the Flathead City -County Health Department/Flathead Board of County Commissioners will take place in the fiscal 2002 year. Section 10. A public hearing is hereby called and shall be held on , 2001 at 7:00 p.m. in the Council chambers on the proposed modification of the Kalispell, Montana Downtown Redevelopment Plan. The City proposes to fund certain projects in the Downtown Redevelopment District (the "District"). The proposed modification is the approval of the following projects as Urban Renewal Projects: a. Relocation of City of Kalispell Fire Department to Block 76 and remodeling of existing fire hall into office space. b. Granting the sum of $500,000 to the Flathead City -County Health Department/Flathead Board of County Commissioners for the purpose of assisting in the development of a Health Department facility on Block 132, Kalispell. Section 11. Notice of the public hearing shall be published on 2001 and , 2001 and mailed in accordance with Section 7-15-4216 MCA in substantially the form attached as Exhibit A hereto. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS DAY OF 2001. Mayor Attest: City Clerk res/city hall-health.wpd 4 EXHIBIT A NOTICE OF PUBLIC HEARING ON MODIFICATION OF THE KALISPELL MONTANA DOWNTOWN REDEVELOPMENT PLAN (THE URBAN RENEWAL PLAN) TO APPROVE CERTAIN PROJECTS AS URBAN RENEWAL PROJECTS. NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Kalispell, Montana (the "City") will hold a public hearing on the Modification of the Kalispell, Montana Downtown Redevelopment Plan (the "Urban Renewal Plan") on , 2001 at 7:00 p.m., M.T., in the Council Chambers in Kalispell City Hall, Kalispell, Montana. The City proposes to fund certain projects in the Downtown Redevelopment District (the "District"), as hereinafter described, if the modification of the Urban Renewal Plan is approved. The proposed modification is the approval of the following described projects as Urban Renewal Projects: a. Relocation of existing Fire Department to Block 76, Kalispell Original and remodeling of current fire hall into office facilities. b. Granting the sum of $500,000 to the Flathead City -County Health Department/Flathead Board of County Commissioners for the purpose of assisting in the development of a Health Department facility on Block 132, Kalispell. That at said public hearing, any resident of the City of Kalispell may appear in person, or authorized agent, and furnish orally or in writing comments supporting or opposing the proposed Urban Renewal Projects to the Kalispell Redevelopment Plan; prior to said hearing any person may submit written comments supporting or opposing the approval of the proposed Urban Renewal Projects by delivering the same to the City Clerk prior to the commencement of the public hearing. Following the public hearing, the Kalispell City Council will, by the appropriate action, adopt, reject or modify the proposed amendments to the Kalispell Redevelopment Plan. Dated: , 2001. Theresa White, City Clerk Publication Dates: 2001 2001 City of Kalispell Post Of}ice Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758 June 20, 2001 TO: City Manager FROM: City At RE: Fire Station - Amendment of Downtown Urban Renewal Area This office is in receipt of a memo dated June 19, 2001 wherein you request certain information regarding a proposal to relocate the City of Kalispell Fire Department and remodel the existing fire hall into office space. The anticipated cost of the project is in the neighborhood of $2.5 million, to be financed through accruing revenue from the Downtown Urban Renewal Area. The Downtown Urban Renewal Plan, adopted under Ordinance No. 933, anticipated acquisition of property and the disposition of property for public redevelopment. However, neither Ordinance No. 933 or any of the Ordinances amending Ordinance No. 933 designated the building/remodeling of City buildings as an "urban renewal project". In order to utilize urban renewal tax revenue, the City must amend the Downtown Urban Renewal Plan. Under Section 7-15-4217, MCA, the City may approve an urban renewal project, subject to statutory criteria therein, by Ordinance. Under Section 7-15-4217, MCA, an urban renewal plan (project) may be approved pursuant to the procedure contained in Sections 7-15-4212 through 7-15-4219, MCA. Section 7-15-4212, MCA, allows a municipality to independently prepare an urban renewal plan or amendment. Section 7-15-4212 would authorize the City to proceed with the plan amendment. Section 7-15-4213, MCA, requires that before an urban renewal project is approved, the City must submit the project plan to the planning commission (City -County Planning Board) for review as to cityha11re1oc.wpd its compliance with the growth policy. The planning commission has sixty days to review the project and make written recommendations to the City. The City is required under 7-15-4214, MCA, to hold a public hearing on the proposed amendment after receipt of the planning commission's recommendations. If no recommendations are received, the City is authorized to proceed after the 60 day period. Under 7-15-4215, MCA, the City gives notice by publication in a newspaper, twice, not more than 30 or less than 10 days prior to the public hearing. Also notice of the public hearing must be mailed to each of the owners, reputed owners, and purchasers under contract for deed of the properties within the area. Urban renewal projects must conform to the growth policy in effect at the time of adoption.(Section 7-15-4216, MCA) Finally, under 7-15-4217, MCA, the City must make certain findings that: (1) a workable and feasible plan exists for making available adequate housing for the persons who may be displaced by the project; (2) the urban renewal plan conforms to the comprehensive plan or parts thereof for the municipality as a whole; (3) the urban renewal plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the urban renewal area by private enterprise; and (4) a sound and adequate financial program exists for the financing of said project. This office has commenced to draft a resolution calling for a public hearing on an amendment to the Urban Renewal Plan authorizing the "recycling" of program income for use after the Urban Renewal District ceases to exist. There are several questions that need to be answered prior to finalization of that resolution. A copy of the draft is attached hereto. I have also begun a draft of a resolution calling for a public hearing on the Fire Hall relocation. This office will probably need assistance from the staff in order to complete the resolution properly. I anticipate that the proposed amendment to the Urban Renewal Plan could be referred to the City Planning Board at the August meeting. cityha11re1oc.wpd Whether the Board acts upon such a referral may be problematic, but nevertheless, the City could hold a public hearing sometime in October or early November, 2001. If an Ordinance amending the Urban Renewal Plan passed in November, 2001, it would be effective in December. Depending upon the desires of the Council as to the method of design and construction, (design build or engineer/ contractor) I suspect the bid documents for the fire hall could be drafted and the project let in the early Spring of 2002. The City Hall remodel could parallel the fire hall relocation so that contracts for both projects could be let prior to June 30, 2002. Certainly, to proceed with designs, etc., without an urban plan amendment may cause the City to encounter problems down the road should the plan amendment not come to fruition. No significant amount of money should be expended or committed to the project prior to approval of the plan amendment. However, the Council may wish to determine early on the method of design and construction to be employed on the proposed project and direct the staff to develop an RFP for architects or design build projects depending upon the desires of the Council. Information developed early on in the process may assist in explaining the amendment during the public hearing process. cityha11re1oc.wpd