1. Center Street PlazaINTRA-CITY MEMORANDUM
DATE: September 14, 1998
TO: Mayor Boharski and City Council
FROM: Glen Neier, Interim City Manager
SUBJECT: Center Street Plaza
Based on a presentation made earlier by Mr. Walterskirchen and Jackola Engineering to the
writer, it is recommended that the City cover the costs of the off -site improvements required for
this development through the use of Tax Increment funds. The requested assistance is similar to
tax increment infrastructure work provided to Tidyman's, the Kalispell Center Mall, and other
local development projects.
The request for a low interest, tax -increment financed mortgage for on -site improvements is in
keeping with a policy established for the Second Avenue West Professional Building. In 1985 a
fifteen -year loan was made to the project owners to cover the needed on -site work which
included paving and landscaping. A ten year amortization would result in a $680.75 monthly
repayment and a fifteen year amortization would result in a $486.86 repayment -- a difference of
$193.89 per month.
The issue of water and sewer tap fees needs to be clarified. Previous city policy has been if the
existing taps are of adequate size, no new fees are charged. However, if larger taps were need
on previous projects, the City did not waived the cost of new fees. It is believed that the existing
taps are adequate; however, if new fees are required, then that amount should be added to the
loan request.
The principal and interest repayments of these and any future tax increment loans could be
applied to administrative costs for tax increment activities currently funded through UDAG
Program Income.
c:\PECDD\Tax Increment Loans\Center Street Plaza Project
September 10, 1998
Ms. Susan Moyer
City of Kalispell
Kalispell, MT
RE: Center Street Plaza Project
Dear Susan:
Based upon our conversation on August 28th, I am submitting a Summary of
Costs prepared by Jackola Engineering for your review. We wish to pursue
and request the City's assistance in improving the property located at the
corner of West Center Street and 4th Avenue West.
As we discussed, assistance is requested by Tax Increment funding and a
direct loan from the City similar to the arrangement with the 2nd Avenue
West Professional Building Partnership.
We appreciate the City's interest in this project and are excited about
participating in the overall improvement of this area in our community.
Sincer ,-
Brad Walterskirchen
Partner- CMA,LLP
4 b0
Center Street Project
Summary of Costs
Tax Increment Rebated Items
Required Improvements
4rd Ave West Blvd. Sdwk.
$
1,950.00
Center St. RW Sdwk
$
1,846.00
Paving of Alley
$
2,880.00
1 Light Pole
$
4,000.00
Landscaping
$
5,490.00
Total Costs
$
16,166.00
3% Low interest loan items
Paving, Walks, Curbs
$
21,472.00
Concrete
$
14,320.00
Storm Drainage & Utilities
$
12,415.00
Water Tap Waived
$
-
Sewer Tap Waived
$
-
Signage
$
8,787.00
Landscape
$
6,604.00
Electrical Work
$
6,631.00
Paint Striping
$
300.00
Total Costs
$
70,529.00
In the event of any questions please give me a call.
,6-nc I ;
C�
Thor A. Jac la PE
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Mailing Address: P.O. Box 1134, Kalispell, MT 59903 phone (406) 755-3208 fax (406) 755-3218