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D. Ordinance 1402 - Modifying Downtown Urban Renewal Plan - 1st ReadingREPORT TO: FROM: SUBJECT MEETING DATE: Tri-City Planning Office 17 Second Street East -Suite 211 Kalispell, Montana 59901 Phone: (406) 751-1850 Fax: (406) 751-1858 tricity@centu rytel.net Kalispell Mayor and City Council Narda A. Wilson, Senior Planner Chris A. Kukulski, City Manager Amendments to the Downtown Urban Renewal Plan October 15, 2001 BACKGROUND: The Montana Code Annotated, Parts 42 and 43, are cited as the "Urban Renewal Law." Part 42 provides a statement of policy in blighted areas, the need for redevelopment and rehabilitation of blighted areas as well as the preparation of an urban renewal plan. Section 7-15-4213 through Section 7-15-4215 outlines the responsibilities of the Planning Commission and hearing requirements on the urban renewal plan. Part 43 provides for the authorization to issue urban renewal bonds, infrastructure development bonds, obligations for the repayment of bonds and other financing elements. With regard to the Planning Commission, Section 7-15-4213(1) states that "Prior to the approval of an urban renewal project, the local governing body shall submit the urban renewal project to the planning commission of the municipality for review and recommendations as to its conformity with the comprehensive plan or parts thereof for the development of the municipality as a whole." Section 7-15-4213(2) states, 'The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within 60 after receipt of it." The city council will hold a public hearing at their October 15, 2001 regular meeting On September 11, 2001 the Kalispell City -County Planning Board met and considered the proposed amendments to the Downtown Urban Renewal District. At that meeting board members expressed concerns that the urban renewal funds were intended to be used for projects that would generate additional tax revenue into the district. The public buildings did not do this because they are tax exempt. A motion was made to forward a recommendation to the city council to include these projects on the potential project list. This motion failed on a vote of three in favor and five opposed. RECOMMENDATION: At the public hearing schedule for October 15, 2001, the city council consider the planning board's action. FISCAL EFFECTS: Minor positive impacts once developed. ALTERNATIVES: As suggested by the city council. Providing Community Planning Assistance To: • City of Kalispell • City of Columbia Falls • City of Whitefish Amendments to the Downtown Urban Renewal District September 20, 2001 Page 2 Narda A. Wilson Senior Planner Report compiled: September 20, 2001 c: Theresa White, Kalispell City Clerk Attachments: Transmittal letter Chris A. Kukulski City Manager Staff report KRD-O 1-1 Draft minutes from 9/ 11/01 planning board meeting H:\FRDO\TRANSMIT\KALISPEL\2001 \KA01-SMEMO.DOC ORDINANCE NO. 1402 AN ORDINANCE RELATING TO THE MODIFICATION OF THE RALISPELL MONTANA DOWNTOWN URBAN RENEWAL PLAN (THE URBAN RENEWAL PLAN) TO APPROVE CERTAIN PROJECTS AS 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 Urban Renewal Projects and modifies the Plan accordingly: a. Relocation of Fire Hall and Remodeling of City Hall. The project consists of the relocation of the current Kalispell City Fire Department, to a site owned by the City in Block 76, and remodeling the current fire hall into office space. The project is estimated to cost $2,500,000, which will be financed by revenue accruing to the District. b. Assistance in the Building 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. each of 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 urban renewal projects within and under and to be undertaken pursuant to the Plan, and the Projects are 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 Tri-City Planning Office 17 Second Street East — Suite 211 Kalispell, Montana 59901 Phone: (406) 751-1850 Fax: (406) 751-1858 tricity@centurytel. net September 20, 2001 Chris Kukulski, City Manager City of Kalispell P.O. Box 1997 Kalispell, MT 59903 Re: Amendments to the Downtown Urban Renewal District Dear Chris: On September 11, 2001 the Kalispell City -County Planning Board met and considered the proposed amendments to the Downtown Urban Renewal District. They considered whether to include new projects anticipated for the district. The Downtown Urban Renewal Plan amendment include the relocation of the Fire Hall and remodeling of City Hall which would cost $2,500,000 and provide assistance in the building of a Health Department Building in the amount of $500,000 to assist in construction. At the October 15, 2001 regular meeting the City Council will hold a public hearing on this matter. At the planning board meeting, board members expressed concerns that the urban renewal funds were intended to be used for projects that would generate additional tax revenue into the district. The public buildings did not do this because they are tax exempt. After board discussion, a motion was made to forward a recommendation to the city council to include these projects on the potential project list. This motion failed on a vote of three in favor and five opposed. The board's consideration of this matter is being forwarded to the city council for their information. You may contact this board or Narda Wilson at the Tri-City Planning Office if you have any questions regarding this matter. Sincerely Kalispell City -County Planning Board 4esen%t;�4_ GS/NW Attachments: Staff Report# KRD-01-1 Draft minutes 9/ 11/01 planning board meeting c w/ Att: Theresa White, Kalispell City Clerk H: \FRDO\TRANSMIT\KALISPEL\2001 \KRD01-1. DOC Providing Community Planning Assistance To: • City of Kalispell • City of Columbia Falls • City of Whitefish Schultz said there was nothing on the property now and he didn't want to pay the extra taxes. PUBLIC BEARING The public hearing was opened to those who wished to speak on the proposal. PROPONENTS There was no one who wished to speak in favor of the project. OPPONENTS There was no one who wished to speak in opposition to the project and the public hearing was closed. MOTION Mann moved to adopt Staff Report #KA-01-5 as findings of fact and forward a recommendation to the Kalispell City Council to adopt R-4, Two Family Residential, upon annexation with an effective date of November 1, 2001. Van Natta seconded the motion. Garberg asked what the November let dead line meant and why they couldn't allow the applicant to wait 6 or 9 months before annexing in order for the development to generate funds. Mann said he had the same question, if all the other phases are just now going into effect. Jentz said this project had been going on more than 18 years. Jentz said the property used to be out in the rural county, but now it is up against the City and it was City policy that land that which abutted against the City and received City services at final plat must be annexed. Pierce said they were here to discuss the zoning issue, not the annexation issue or the date of annexation. Mann called for the question. ROLL CALL Rice, Mann, Heinecke, Pierce, Garberg, Van Natta and Stevens voted aye. The motion passed unanimously. OLD BUSINESS: DOWNTOWN URBAN A request by the City of Kalispell for amendments to the RENEWAL DISTRICT Downtown Urban Renewal District, Fire Hall relocation and contribution to the Flathead City County Health Department. STAFF REPORT Jentz explained to the Board that this was not a public hearing but only a recommendation to City Council. Jentz said this was continued from the August meeting and the Board had 60 days to act upon it. Jentz said it has been scheduled for the October 15th Council meeting. Jentz said recommending approval of the new projects does not mean that the money will be granted, but that they would be put on the wish list. Kalispell City -County Planning Board Minutes of the meeting of September 11, 2001 Page 8 of 10 Jentz gave a brief presentation of staff report #KRD-01-1, stating that in order for the City to consider new projects funded through tax increment financing, an amendment to the plan is required. Jentz said the amendment would identify potential projects that would be eligible for tax increment funding. Jentz said two new projects and activities which will be considered as part of the Downtown Urban Renewal Plan amendment included the relocation of the Fire Hall and remodeling of City Hall which would relocate the current Kalispell City Fire Department and remodel the current fire hall facilities into office space which would cost $2,500,000; and assist in the building of a Health Department Building. MOTION Garberg moved and Mann seconded the motion to adopt staff report #KRD-01-1 and forward a recommendation the Kalispell City Council to proceed with the proposed amendment to the Kalispell Urban Renewal Plan as proposed. BOARD DISCUSSION Garberg asked what would happen if the Board didn't approve them. Jentz said the recommendation would go to City Council for final action. Mann asked why the era was coming to an end. Van Natta said the urban renewal plan sunsets in June 2002 and Council would like to consider the amendments. Sipe asked what the reason for the original urban renewal district because he didn't think government buildings were meant as part of that. Jentz said it was developed to revitalize the downtown and it would provide synergy. Garberg said the idea with TIF money has always been that it is to be used to revitalize the economic vitality of downtown and building government buildings was not part of the TIF. Garberg said he would not support this. Mann said he agreed with Garberg, that the projects are probably worthwhile but they should be paid for by the City. Stevens said he was skeptical about moving the fire hall and remodeling the City Hall because part of the money came from the County, City and schools and that over history the money has been spent on the wrong things. Stevens said assisting the health department to build a new facility was a good idea because the county taxpayers would also benefit. Kalispell City -County Planning Board Minutes of the meeting of September 11, 2001 Page 9 of 10 Van Natta said regardless who contributed over the years, the sidewalks were better and many infrastructure improvements had been accomplished. Van Natta said Council was going to consider the amendments no matter what the Board recommended. ROLL CALL Pierce, Heinecke, Garberg, Mann, and Sipe voted nay. Stevens, Van Natta and Rice voted aye. The motion failed on a 5-3 vote. NEW BUSINESS: ANNUAL WORK After discussion, the Board recommended that the work items for PROGRAM FY 01-02 building height limits and standards, parking standards, and rezoning the Meridian Road area be moved to items #2, 3, and 4. Rice asked when it was proper for a member to remove themselves from the Board in case of a conflict of interest. Jentz said whenever a member was in doubt, he should explain it to the Board and if the Board agreed it was a conflict, then it was proper to step down. ADJOURNMENT Stevens adjourned the meeting at 9:35 p.m. Greg Stevens, Chairman APPROVED as presented / corrected Sandie Mueller, Recording Secretary Date: Kalispell City -County Planning Board Minutes of the meeting of September 11, 2001 Page 10 of 10 AMENDMENT TO THE KALISPELL URBAN RENEWAL PLAN TRI-CITY PLANNING OFFICE STAFF REPORT #KRD-01-1 AUGUST 6, 2001 A report to the Kalispell City -County Planning Board and the Kalispell City Council regarding an amendment to the Kalispell Downtown Redevelopment Plan. A meeting on this matter has been scheduled before the Kalispell City -County Planning Board for August 14, 2001 and a public hearing has been scheduled before the Kalispell City Council for October 15, 2001. BACKGROUND On September 10, 1979, the Kalispell City -County Planning Board adopted the Kalispell Downtown Redevelopment Plan as an urban renewal plan for the city and identified a project area which constitutes the City's Downtown Urban Renewal District for the purposes of tax increment financing. In order for the City to consider new projects funded through tax increment financing, an amendment to the plan is required. The amendment would identify potential projects which would be eligible for tax increment funding. These projects may be financed by funds made available through the tax increment cash flow account. New projects and activities which will be considered as part of the Downtown Urban Renewal Plan amendment include the following: • Relocation of the Fire Hall and remodeling of City Hall — This project would relocate the current Kalispell City Fire Department and remodel the current fire hall facilities into office space which would cost $2,500,000. • Assistance in the Building of a Health Department Building — The Flathead City - County Health Department / Flathead Board of County Commissioners have requested assistance in building a new Health Department Building by granting an amount of $500,000 to assist in construction. AREA BOUNDARIES The Kalispell Urban Renewal District boundaries will be altered from those boundaries established in 1979 which are as shown on Exhibit A. Idaho Street and 3rd Avenue East are the northeast boundaries of the district. The boundaries run west from 3rd Avenue East along Idaho Street to midway between 7th Street West and 8th Street West; then south to 6th Street West, then east approximately one and a half blocks to 6th Avenue West then south to 9th Street West, then running east to midway between 2nd Avenue West and 1st Avenue West. The boundaries then run south between 2nd Avenue West and 1st Avenue West to 12th Street West then turn east approximately three and a half 11 blocks to 2nd Avenue East then north to 6th Street East, then east to 3rd Street East, then run north to Idaho Street. Projects can be funded through tax increment financing that would be eligible for low interest loans for urban renewal, rehabilitation and construction of new buildings. KALISPELL CITY -COUNTY PLANNING BOARD REVIEW Parts 42 and 43 of the Montana Code Annotated are cited as the "Urban Renewal Law." Part 42 provides a statement of policy in blighted areas, the need for redevelopment and rehabilitation of blighted areas as well as the preparation of an urban renewal plan. Section 7-15-4213 through Section 7-15-4215 outlines the responsibilities of the Planning Commission and hearing requirements on the urban renewal plan. Part 43 provides for the authorization to issue urban renewal bonds, infrastructure development bonds, obligations for the repayment of bonds and other financing elements. With regard to the Planning Commission, Section 7-15-4213(1) states that 'Prior to the approval of an urban renewal project, the local governing body shall submit the urban renewal project to the planning commission of the municipality for review and recommendations as to its conformity with the comprehensive plan or parts thereof for the development of the municipality as a whole." Further, Section 7-15-4213(2) states, "The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within 60 after receipt of it." Subsequent to the recommendation of the Planning Commission, the City Council will hold a public hearing. As previously mentioned, at the October 15, 2001 regular meeting the City Council will hold a public hearing. All property owners within the District will be notified by mail. This notice will include the date and time of hearing, area proposed for urban renewal and a general scope of the plan. "Goals and Objectives" are listed in the Kalispell City -County Master Plan. Goal 5, Economy, Subsection A states "Utilize the Overall Economic Development Plan as the master document for developing economic development priorities in the Planning Jurisdiction." The Kalispell Urban Renewal Plan is part of the Overall Economic Development Plan which provides guidance in choosing and placing priorities for funding. Furthermore, Subsection E of the Master Plan also states, "Undertake activities to ensure the Central Business District remains strong and viable, i.e., provide adequate off-street parking, encourage habilitation of older commercial structures and make the Central Business District more aesthetically appealing, and cater to the needs of the pedestrian." The projects listed as an amendment to the Kalispell Urban Renewal Plan will help to execute these goals for the Central Business District which are listed in the Kalispell City -County Master Plan. 2 Staff would recommend the Kalispell Planning Board provide the Kalispell City Council with a recommendation to move forward with the proposed amendments to the Kalispell Urban Renewal Plan as proposed to further the Goals and Objectives of the Kalispell City -County Master Plan. H: \FRDO \REPORTS \KALISPEL\KRDO 1 -1 RPT 3 Contact: Tri-City Planning Office 17 Second Street East — Suite 211 Kalispell, Montana 59901 Phone: (406) 758-1850 Fax: (406) 751-1858 tricity@centurytel.net Narda Wilson, Senior Planner (406) 751-1850 PUBLIC SERVICE ANNOUNCEMENT KALISPELL CITY -COUNTY PLANNING BOARD WILL CONSIDER AN AMENDMENT TO THE DOWNDOWN URBAN RENEWAL PLAN The Kalispell City -County Planning Board will hold their regular meeting on Tuesday, August 14, 2001, beginning at 7:00 PM in the Kalispell City Council Chambers, Kalispell City Hall, 312 First Avenue East, Kalispell. During this meeting, the planning board will consider amendments to the Downtown Urban Renewal Plan and will forward a recommendation to the Kalispell City Council as required by the Montana Code, Section 7-15-4215. The Kalispell City Council have scheduled a public hearing on this matter for October 15, 2001 beginning at 7:00 PM. The following is a brief description of the proposal: On September 10, 1979, the Kalispell City -County Planning Board adopted the Kalispell Downtown Redevelopment Plan as an urban renewal plan for the city and identified a project area which constitutes the City's Downtown Urban Renewal District for the purposes of tax increment financing. In order for the City to consider new projects funded through tax increment financing, an amendment to the plan is required. The amendment would identify potential projects which would be eligible for tax increment funding. These projects may be financed by funds made available through the tax increment cash flow account. New projects and activities which will be considered as part of the Downtown Urban Renewal Plan amendment include the following: • Relocation of the Fire Hall and remodeling of City Hall - This project would relocate the current Kalispell City Fire Department and remodel the current fire hall facilities into office space which would cost $2,500,000. • Assistance in the Building of a Health Department Building - The Flathead City - County Health Department / Flathead Board of County Commissioners have requested assistance in building a new Health Department Building by granting an amount of $500,000 to assist in construction. Providing Community Planning Assistance To: • City of Columbia Falls • City of Kalispell • City of Whitefish City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 July 16, 2001 Th as R. Jentz, Director Tri- Planning Office 17 Second St. East, Suite 211 Kalispell, MT 59901 Re: Amendments to the Downtown Urban Renewal Plan Dear Tom: As you are aware, the City Council would like to amend the Downtown Urban Renewal Plan to include several new projects to those already listed for the district. These projects would then be included in the budget for that district. The projects include relocating the Kalispell Fire Department and remodeling the existing fire hall into office space, along with assisting the City -County Health Department in constructing a new facility. In order to utilize urban renewal revenue for these projects, the Downtown Urban Renewal Plan must be amended according to a process established by State statutes. Relevant to the Planning Board, Section 7-15-4213, MCA, Review of urban renewal plan by planning commission, states: "(1) Prior to its approval of an urban renewal project, the local governing body shall submit the urban renewal project plan to the planning commission of the municipality for review and recommendations as to its conformity with the growth policy or parts of the growth policy for the development of the municipality as a whole if a growth policy has been adopted pursuant to Title 76, Chapter 1; and (2) The planning commission shall submit its written recommendations with respect to the proposed urban renewal plan to the local governing body within 60 days after receipt of the plan." A public hearing is also required before the City Council. At the July 2, 2001 regular meeting, the Kalispell City Council passed Resolution 4632, setting a public hearing date of October 15, 2001 regarding the amendment to the Downtown Urban Renewal Plan. The resolution is attached which outlines the proposed projects and their purpose. Please schedule this matter before the Kalispell City -County Planning Board for the next regular meeting of August 14, 2001, as required by the statutes, so that the Council may proceed with amending the Plan. If you have any questions regarding this matter, please don't hesitate to contact me. Sincerely, Chris A. Kukulski City Manager Attachment: Resolution 4632 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell, Montana (the "City"), hereby certify that the attached resolution is a true copy of a Resolution entitled: "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" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a regular meeting on July 2, 2001, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Council members voted in favor thereof: Wm. E. Boharski, Jim Atkinson, Don Counsell, Dale Haarr, M. Duane Larson, Doug Scarff and Ron Van Natta• voted against the same: Fred Leistiko and Randy Kenyon; abstained from voting thereon: - 0 - : or were absent: - 0 - 2001. WITNESS my hand and seal officially this 3rd day of July, (SEAL) CORPORATE SEAL The esa White City Clerk 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. 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 approximately $2,000,000 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. 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 a maximum of $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. 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 October 15, 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 September 25, 2001 and October 2, 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 2ND DAY OF JULY, 2001. UM.E Baha-di Wm E. Boharski Mayor ATTEST: LZ' 41 Theresa White City Clerk 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 October 15, 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: July 2, 2001. Theresa White City Clerk Publication Dates: September 25, 2001 October 2, 2001 City of Kalispell n - Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fa (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 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 Community Health Services 7585741 FAX 75M&% Environmental Health Services Flathead City -County Health Department 7585760 FAX 75 723 5th Avenue East Kalispell, MT 59901 Reproductive Health Services 7585756 FAX 7585926 (406) 758-5828 Fax: 758-5858 Home Health Services 862-9030 FAX 862-9025 WIC Services 758-5752 October 2, 2001 Kalispell City Council P.O. Box 1997 Kalispell MT 59901-1997 Re: Tax Increment Funding -Earl Bennett/City-County Health Department Building Dear Members of the Council: This will follow a letter dated April 11, 2001 regarding the City -County Board of Health's request for Tax Increment Funding. That letter is attached. Please review the list of items we asked you to consider in the April letter along with these additional items: We will proceed with the project. There have been rumors that we were not serious about building a building without receiving a substantial amount of tax increment funds. This is not the case. We are absolutely committed to this project and will be providing a "Notice to Proceed" to Swank Enterprises within the next few days. However, we need your assistance. With the events of September 11 a', our request to Senator Conrad Bums for inclusion in the federal Housing and Urban Development budget will probably not be fulfilled. It is important to note that we are a City -County Health Department. The new City -County Health Department facility in Great Falls, Cascade County was constructed entirely with Tax Increment Funding. The Flathead County Board of Commissioners has committed $800,000 and property to the project. We hope that you will look favorably upon our request. Please do not hesitate to contact me if you have any questions. I look forward to meeting with you on the 15tn Best R s, Jo h W. ussell, R.S., M. .H. alth Officer attachment It is the mission of the Flathead City -County Health Department to assure the conditions in which people can be healthy through collaboration, promoting stewardship of our resources, and providing preventive health services to our community. ✓ Flathead City -County Health Deaartment 723 5th Avenue East Kalispell, MT 59901 (406) 758-5828 Fax: 758-5858 April 11, 2001 Mayor William Boharski Kalispell City Council P.O. Box 1997 Kalispell MT 59901-1997 Re: Tax Increment Fund Request Dear Mayor Boharski: Community Health Services 758-5741 FAX 758-5856 Environmental Health Services 758-5760 FAX 758-5859 Reproductive Health Services 758-5756 FAX 758-5926 Home Health Services 862-9030 FAX 862-9025 WIC Services 758-5752 As you know, the Flathead County Board of Commissioners has granted permission to start the process of constructing a new Health Department facility. The facility is to be located on the block south of the Flathead County Justice Center. If the process goes as planned, we should break ground in late summer and occupy the facility July 1, 2002. This is certainly a very exciting time for the Department and for all the citizens of our community! On behalf of the Flathead City -County Board of Health, we write requesting your assistance. We desire inclusion in the Downtown Tax Increment Funding Budget for fiscal year 2002 and request at least $500,000 be set aside for our project. As you contemplate our request please consider the following: Our community deserves better than the facility we occupy presently. • The Courthouse East facility was not constructed to provide public health clinic services or any other professional services for that matter. Access into the building is substandard and much inefficiency exists due to the large amount of space allocated to hallways and large rooms (for staff) with very little space remaining for interaction with the public. The Courthouse East facility is degrading rapidly. Maintenance costs continue to rise with increased heating and electrical system failure. Removing the Health Department from the Courthouse East facility will certainly start the process of vacating the entire building. This block could then be redeveloped and placed back on the tax rolls. The block we propose to build upon is fully within the tax increment district. A new building on that block would certainly enhance the southern entrance to the downtown business district. This would be the first step to consolidate county services into one area. This new building will bring an additional 40 — 50 employees into the district with well over half of those employees earning professional wages. It is the mission of the Flathead City -County Health Department to assure the conditions in which people can be healthy through collaboration, promoting stewardship of our resources, and providing preventive health services to our community. Tax Increment Funding Page 2 The budget for the new building requires a loan for $500,000. With your assistance, we could replace the loan with tax increment funds and have no debt to service. Those additional resources could then be used to provide direct services to the community. We are very excited about this project. We know that a new building will enhance our ability to provide public health services to our community. We have prepared a presentation on our building proposal and would be happy to share it with you and the council at your convenience. Please feel free to contact us if you have additional questions. Best Regards, PY Doug Scarff �U0 Joseph W. Russell Kalispell City Council/Board of Health Health Officer