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1. Tourism Business Improvement DistrictCharles A. Harball Office of City Attorney City Attorney 312 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 TO: FROM: SUBJECT: MEETING DATE: Mayor Pamela B. Kennedy and Kalispell City Council Charles Harball, City Attorney Jane Howington, City Manager Tel 406.758.7708 Fax 406.7.58.7771 charball@kalispell.com Proposed Tourism Business Improvement District September 14, 2009 — Council Work Session The Kalispell Chamber of Commerce has been working with the owners of the hotels in the city exploring the possibility of creating a Tourism Business Improvement District within the City of Kalispell. Two years ago the Montana legislature amended the Business Improvement District statutes to allow for the creation of a business improvement district that does not comprise a contiguous area but rather only encompasses lodging facilities for the purposes of encouraging and promoting tourism as well as increasing usage of those facilities. Other Montana cities, such as Billings, Helena and Missoula have already established such districts. At this time it is contemplated that the district will encompass 16 hotels. The proposed tax rate is 2.95% of total lodging revenues. The payment method is currently under discussion and the petition is being prepared now for circulation. Representatives from the Kalispell Chamber of Commerce and various hotels within the city will present the current vision being shared by the parties for this district. The City Attorney will discuss the statutory procedure with Council so that the parties and Council will be well prepared for the next steps in this process. Charles Har ifyAttorney Jane Howington, City Manager