3. Industrial Park UpdateCity of Kalispell
Post Office Box 1997 - Kalispell. Montana 59903-1997 - Telephone (406) 758-7400 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: Old School Station Industrial Park Update.
MEETING DATE: July 11, 2005
BACKGROUND: Discussions are continuing with Bond Counsel and the Old School Station
developers to deterinine the best course of action in the development of Old School Station
ill[i UsFItAi Park- ..]l.Y el Ul options 11Uv4 i/l.i.n l+otls3U e1 i.,U.
The use of "Industrial TIF" was first contemplated. For this to be a triable option would require
recruiting companies in the park that are "secondary value added" which is defined as those
companies taking. Montana raw material and, through an industrial process, produce a value
added product for export. Examples would be lumber mills, oil refineries, and mineral
processing plants. Clearly the vision for Old School Station industrial park would not fit into
this definition even though there may be a portion of the industrial park that is designated for this
type of development.
The State Legislature provided another economic development tool in this past session that may
work well for developing the industrial park. The new "Technology TIF" may be an alternative
worth pursuing for part or the entire park. The new law requires at least two technology
projects/companies in order to use the Technology TIF. There are at least two companies
interested in this park.
The most viable solution and the recommended option of Staff, Bond Counsel, and the
Developers would be a combination of three tools. The first would be the construction of
internal park infrastructure by establishing a Special Improvement District. Then we would
propose establishing a mixed TIF Industrial Park by setting aside areas designated for Industrial
TIF and an area for Technology TIF. Other businesses could be located in the park that did not
conform to the definitions and their taxes would be distributed to all taxing authorities.
RECOMMENDATION: Council direct staff to bring an SID for Council approval and to
proceed with the formation of both an Industrial as well as Technology TIF to assist businesses
as they relocate into the park.
FISCAL EFFECTS., This will have minimal expenditure impacts since SID bonding can be
accomplished, TIF can pay the SID as appropriate, and businesses falling out of the definition for
industrial and technology would pay their taxes to the taxing agencies. This will assist the tax
base of the City by creating Industrial and Commercial revenue as well as good paying jobs.
ALTERNATIVES: As suggested by the City Council.
Respectfully submitted,
m�
James H. Patrick, City Manager