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11. Ordinance 1402 - Modifying Downtown Urban Renewal Plan - 2nd Reading4D City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: Kalispell Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT Second Reading of Amendments to the Downtown Urban Renewal Plan MEETING DATE: November 5, 2001 BACKGROUND: At the regular meeting of October 15, 2001, the Kalispell City Council held a public hearing and considered the proposed amendments to the Downtown Urban Renewal District regarding the potential new projects to be considered within the district. The new projects to be considered were the relocation of the Kalispell Fire Hall and remodeling of City Hall at a cost of approximately $2,500,000. and a request to provide assistance to the Flathead City -County Health Department / Flathead Board of County in building a new Health Department Building by granting an amount not to exceed $500,000 to assist in construction. After the public hearing and council discussion, the city council decided that the relocation of the fire hall and improvements to city hall should not be included in the list of potential projects for the district. However, the city council approved including assistance to the Flathead City -County Health Department for construction of a new office building in an amount not to exceed $500,000. RECOMMENDATION: A motion to approve the ordinance modifying the Downtown Urban Renewal Plan on second reading would be appropriate. FISCAL EFFECTS: Minor positive impacts once developed. ALTERNATIVES: As suggested by the city council. A Chris A. Kukulski City Manager Report compiled: October 30, 2001 H:\FRDO\TRANSMrr\KALlsPEL\2001\KRDOI-1MEM02.130C ORDINANCE NO. 1402 AN ORDINANCE RELATING TO THE MODIFICATION OF THE KALISPELL MONTANA DOWNTOWN URBAN RENEWAL PLAN (THE URBAN RENEWAL PLAN) TO APPROVE A CERTAIN PROJECTS AS AN URBAN RENEWAL PROJECTS. BE IT ORDAINED by the City Council (the "Council") of the City of Kalispell, Montana (the "City") as follows: Section 1. Recitals. The City by Ordinance No. 933 (the "Ordinance"), passed and approved on September 10, 1979, created the Kalispell Montana Urban Renewal District as an urban renewal district (the "District") and approved the Downtown Urban Renewal Plan (the "Plan") for the District containing a tax increment financing provision as set forth in the Ordinance, pursuant to Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the "Act"). Pursuant to the Act and the procedures contained in the Plan, the city has established the procedures for approving urban renewal projects from time to time. Pursuant to the Act and the procedures contained in the Plan, the City, in Resolution No. 4632, has set forth an intention to establish certain projects as urban renewal projects (the "Projects"), and modify the Plan accordingly, has given notice and conducted a public hearing with respect thereto. Section 2. Modification of Plan and Approval of Projects. The City reconfirms the findings contained in Resolution No. 4632 and hereby approves the following projects as an Urban Renewal Projects and modifies the Plan accordingly: bAssistance in the Buildincx of a Health Department Facility. The project consists of granting to Flathead City/County Health Department/Flathead Board of County Commissioners the sum of $500,000 to assist in the construction of a new Health Department Facility within the Downtown Urban Renewal Area. Section 3. Findings. The Council hereby finds, with respect to each of the Projects described in Section 1 hereof, as follows: a. a workable and feasible plan exists for making available adequate housing for any persons who may be displaced by the Projects; b. the Plan, as modified to include the Projects, conforms to the comprehensive plan or parts thereof of the City; c. the Plan, as modified to include the Projects, will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. a sound and adequate financial program exists for the financing of each of the Projects, which program includes the sale and issuance by the City of its urban renewal tax increment bonds in an amount not to exceed the costs of the Projects and other Projects heretofore or hereafter approved by this Council, including administration costs and costs of issuance of the bonds, and for the application of available funds in the Development Account in the Tax Increment Fund of the City, in proportions yet to be determined, for the purpose of financing all or a portion of the costs of the Projects as set forth above; and e. ea=f —the Projects constitutes an urban renewal project within the meaning of the Act and the Plan. Section 4. The Urban Renewal Projects herein designated and approved may be modified by the City Council of the City of Kalispell if the Council determines by Resolution that an adjustment to a Project or Projects is required in the best interest of the City of Kalispell. Section 5. All actions of the City Council heretofore taken with respect to the Projects herein designated, to the extent not inconsistent herewith, are ratified and confirmed. Section 6. This Ordinance shall take effect from and after 30 days of its passage by the City Council and approval by the Mayor. Section 7. Approval of Projects. This Council hereby approves, ratifies and confirms modification of the Plan to designate the Projects as an urban renewal projects within and under and to be undertaken pursuant to the Plan, and the Projects are is hereby approved. All actions of this Council heretofore taken with respect to the Projects, to the extent not inconsistent herewith, are hereby ratified and confirmed. PASSED, ADOPTED and APPROVED on first reading this _ day of . 2001. PASSED, ADOPTED and APPROVED on second reading this _ day of 2001. Wm. E. Boharski Mayor Attest: Theresa White City Clerk