Discussion of Planning IssuesTri-City Planning Office
17 Second Street East --- Suite 211
Kalispell, Montana 59901
Phone: (406) 751-1850
Fax: (406) 751-1858
tricity@centurytel.net
MEMORANDUM
TO: Kalispell Mayor and City Council
James H. Patrick
FROM: Kalispell City Planning Board and Zoning Commission
Narda Wilson, Senior Planner
RE: Discussion of Planning Issues
MEETING DATE: March 14, 2005 Joint Work Session
The planning board is interested in discussing issues of mutual interest and concern
related to planning, zoning, subdivision and the Kalispell planning board's on -going
and upcoming work program. As you are aware, the planning board has been working
on several work program projects during the past year and feels that a lot of work has
been accomplished, but a lot of work is yet to be done. One of the primary goals for
the coming months is to start working on an update of the Kalispell Growth Policy and
issues related to that.
Additionally the planning board would like to give and receive information on work
projects in progress or that are nearly complete. These would include:
• Status of the amendments to the Kalispell sign regulations
• Progress on the lighting ordinance
• Progress on the architectural design standards
• Policy regarding parkland dedication and PUD open space requirements
• Consideration of redevelopment incentives
• Sidewalks and pedestrian / bike paths
Kalispell Growth Policy Update issues
• Expansion of the potential utility service area
• Amendments to plan areas
• Two Rivers plan amendment
• City Airport
• Affordable housing
The board realizes this is a full plate of issues. Some are listed simply to provide and
receive a brief update on their status. The planning board will also be putting together
a work program and would like some feedback from the council. Thank you for the
opportunity to discuss these issues.
Providing Community Planning Assistance To:
• City of Kalispell • City of Columbia Falls • City of Whitefish
REDEVELOPMENT INCENTIVES
AS RECOMMENDED BY THE
KALISPELL PLANNING BOARD AND ZONING COMMISSION
Prepared by the Kalispell Planning Board
December 2004
Introduction - REDEVELOPMENT INCENTIVES
Redevelopment and reinvestment in existing properties and development is strongly
encouraged. It will result in the revitalization of existing neighborhoods, restrain the
premature development of land in the outlying areas and maintain property values in
the city. Incentives to redevelop and reinvest in existing buildings are encouraged as a
strategy to develop a strong and stable economic base in established commercial areas
while maintaining high development standards for the community. Typically there are
four stages of a life cycle related to improved properties due to ordinary physical
deterioration and market demand.
The Montana Code Annotated, Title 15, Chapter 24, Special Property Tax Applications,
Parts 15, Remodeling of Buildings and Structures, and Part 16, Historic Structures,
provides enabling legislation for local governments to assist and encourage the
redevelopment of historically significant buildings, blighted building and buildings in
economically declining areas.
It is the City's intent to offer programs that will encourage the revitalization of
improved properties that will shorten the stagnation period and provide property
owners the opportunity to recoup some of their expenditures through property
appreciation and increased business. The City of Kalispell offers tax benefits to
property owners whose taxable value has increased due to remodeling,
reconstruction or expansion as provided for under MCA Title 15, Chapter 24, Special
Property Tax Applications, Part 15, Remodeling of Buildings and Structures as
follows:
• A property's taxable value is adjusted based upon its increase in taxable
value after remodel, reconstruction or expansion.
• Benefit is phased over a five year period.
• Phase amounts are set at 20 percent per year until it reaches 100 percent.
• The program is administered through the Montana Department of
Revenue.
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The Montana Code Annotated, Title 15, Chapter 24, Special Property Tax Applications,
Parts 15, Remodeling of Buildings and Structures, and Part 16, Historic Structures,
provides enabling legislation for local governments to assist and encourage the
redevelopment of historically significant buildings, blighted building and buildings in
economically declining areas.
15-24-1501. Remodeling, reconstruction, or expansion of buildings or structures --
assessment provisions -- levy limitations. (1) Subject to 15-10-420 and the authority
contained in subsection (4) of this section, remodeling, reconstruction, or expansion of
existing buildings or structures, which increases their taxable value by at least 2
1/2% as determined by the department, may receive tax benefits during the
construction period and for the following 5 years in accordance with subsections (2)
through (4) and the following schedule. The percentages must be applied as provided
in subsections (3) and (4) and are limited to the increase in taxable value caused by
remodeling, reconstruction, or expansion:
Construction period
0%
First year following construction
20%
Second year following construction
40%
Third year following construction.
60%
Fourth year following construction
80%
Fifth year following construction
100%
Following years
100%
(2) In order to confer the tax benefits described in subsection (1), the governing body
of the affected county or, if the construction will occur within an incorporated city or
town, the governing body of the incorporated city or town shall approve by resolution
for each remodeling, reconstruction, or expansion project the use of the schedule
provided for in subsection (1) or a schedule adopted pursuant to subsection (4).
(3) The tax benefit described in subsection (1) applies only to the number of mills
levied and assessed for high school district and elementary school district purposes
and to the number of mills levied and assessed by the local governing body approving
the benefit. The benefit described in subsection (1) may not apply to statewide levies.
(4) A local government may, in the resolution required by subsection (2), modify the
percentages contained in subsection (1) that apply to the first year following
construction through the fourth year following construction. A local government may
not modify the percentages contained in subsection (1) that apply to the fifth year
following construction or years following the fifth year. A local government may not
modify the time limits contained in subsection (1). The modifications to the
percentages in subsection (1) adopted by a local government apply uniformly to each
remodeling, reconstruction, or expansion project approved by the governing body.
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15-24-1502. Tax exemption and abatement for remodeling, reconstruction, or
expansion of certain commercial property -- approval. (1) (a) Subject to the conditions
of this section, remodeling, reconstruction, or expansion of an existing commercial
building or structure that increases its taxable value by at least 5%, as determined by
the department, may receive a property tax exemption during the construction period,
not to exceed 12 months, and for up to 5 years following completion of construction.
The property tax exemption is limited to 100% of the increase in taxable value caused
by remodeling, reconstruction, or expansion.
(b) (i) In addition to the property tax exemption described in subsection (1)(a), the
buildings and structures may receive a property tax reduction for 4 years following the
exemption period as provided in this subsection (1)(b). The percentages must be
applied to the increase in taxable value caused by remodeling, reconstruction, or
expansion according to the following schedule:
First year following the exemption period
20%
Second year following the exemption period
40%
Third year following the exemption period
60%
Fourth year following the exemption period
80%
Fifth year following the exemption period
100%
Following years
100%
(ii) Mill levies are assessed against the reduced taxable value of the remodeling,
reconstruction, or expansion determined under subsection (1)(b)(i).
(c) To be eligible for the property tax exemption and the property tax reduction., the
commercial building or structure may not have been used in a business for at least 6
months immediately preceding the date of application to the governing body for
approval under subsection (2).
(2) (a) In order to confer the tax benefits described in subsection (1), the governing
body of the affected county or consolidated government or, if the construction will
occur within an incorporated city or town., the governing body of the incorporated city
or town shall approve by resolution for each remodeling, reconstruction, or expansion
project the use of the property tax exemption and property tax reduction.
(b) The governing body may not grant the property tax benefits described in
subsection (1) if property taxes on the buildings or structures are delinquent.
15-24-1601. Purpose. The purpose of this part is to provide legislation and
guidance for the administration of a property tax abatement program for the
restoration, rehabilitation, expansion, and new construction of certified residential and
commercial properties located within national register historic districts and properties
listed in the National Register of Historic Places. The abatement does not apply to the
tax on personal property.
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15-24-1602. Definitions. As used in this part, the following definitions apply:
(1) "Board" means the local review board as provided in 15-24-1605.
(2) "Certification." means approval by the board or state historic preservation office
of a property's qualification for the property tax abatement under the terms of this
part.
(3) "Contributing" means a building, site, structure, or object with historic
architectural qualities, historic association, or archaeological value for which a
property is significant because:
(a) it was present during a period of significant local or state history and possesses
historic design or architectural integrity reflecting its character at that time or is
capable of yielding important information about the period; or
(b) it independently meets the criteria for listing in the National Register of Historic
Places.
(4) "Rehabilitation" means the process of returning a property to a state of utility
through repair or alteration that makes possible an efficient contemporary use while
preserving those features of the property that are significant to its historical,
architectural, and cultural values.
(5) "Restoration" means the process of accurately recovering the form, details, and
setting of a property as it appeared when it was originally built or constructed by
removing later work or replacing missing earlier work.
15-24-1603. Historic property tax abatement -- levy limitations. (1) Subject to 15-10-
420, a historic property undergoing rehabilitation, restoration, expansion, or new
construction that meets criteria established by the review process described in 15-24-
1605 or 15-24-1606 may receive a tax abatement during the construction period, not
to exceed 12 months, and for up to 5 years following completion of the construction in
accordance with subsections (2) and (3). The tax abatement is limited to 100% of the
increase in taxable value caused by the rehabilitation, restoration, expansion, or new
construction.
(2) In order to confer the tax benefits described in subsection (1), the governing
body of the county or incorporated city or town where the improvement occurs shall
establish by resolution the process for the use of the tax abatement provisions
described in subsection (1).
(3) Property that receives a tax benefit under this part is not entitled to any other
exemption or special valuation provided by Montana law during the period of the
abatement.
(4) (a) The tax abatement applies only to the number of mills levied:
(i) for high school and elementary school district purposes; and
(ii) by the local governing body approving the abatement.
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(b) The abatement may not apply to statewide levies.
15-24-1604. Eligibility. A property that meets the design review criteria in 15-24-
1605 is eligible for the property tax abatement if it is:
(1) located within the boundaries of a national register historic district and
contributes to the district, as determined by the state historic preservation. office;
(2) a newly constructed property within the boundaries of a national register
historic district that meets design review criteria as being architecturally compatible
with the historic district, as determined by the local review board or the state historic
preservation office; or
(3) listed individually in the National Register of Historic Places.
15-24-1605. Responsibilities of local governing bodies -- local review board -- design
review process. (1) A local governing body that approves the tax benefit may designate
a local review board to establish an application and review process to certify eligible
properties. The review process must include design, review criteria based on the
secretary of the interior's standards for preservation projects or other standards
approved by the state historic preservation office.
(2) The board shall include:
(a) at least three members with professional expertise in history, planning,
archaeology, architectural history, historic archaeology, or another historic
preservation -related discipline;
(b) at least one architect; and
(c) rap to two members of the general public.
(3) The board shall determine whether a property is eligible under 15-24-1604 and
is qualified for the tax abatement. The board shall approve or deny an application for
the tax abatement and report its recommendation to the local governing body.
15-24-1606. Responsibilities of the state historic preservation office. (1) If the local
governing body approving the tax abatement does not appoint a board under the
provisions of 15-24-1605, the state historic preservation office shall provide design
review assistance and certification for qualifying properties.
(2) The state historic preservation office shall evaluate design review standards
submitted to it for approval by the board.
15-24-1606. Responsibilities of the state historic preservation office. (1) If the local
governing body approving the tax abatement does not appoint a board under the
provisions of 15-24-1605, the state historic preservation office shall provide design
review assistance and certification for qualifying properties.
(2) The state historic preservation office shall evaluate design review standards
submitted to it for approval by the board.
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The City of Kalispell Community Development Department also has
redevelopment and reinvestment incentives through Community Development
Block Grants, Urban Renewal District funding and Revolving Loan Programs.
Specific criteria needs to be met for each of these programs in order to qualify.
Both the Airport and the UVestside Urban Renewal Districts (tax increment finance
or "TIF") are able to proved dollar for match with the lRP and/or CDBG Economic
Development funding sources within the applicable districts. This assistance is
derived from the existing TIF fund. Eligibility is driven by job creation, as well as
need for the gap financing. Existing business expansion /employment and new
business are the eligible.
Additionally, developers may apply for TIF funding for infrastructure work on the
private developer's site. These funds are limited to 10% of the total project cost.
Interest rates are prime and terms will be determined by need.
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