1. Tax Increment Financing Application3� City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
To: Doug Russell, City Manager
From: Katharine Thompson, Community Development Manager
Re: West Side/Core Area Tax Increment Financing (TIF) Application
Recommendation
Meeting Date: September 16, 2013
BACKGROUND: The Urban Renewal Agency has met multiple times to develop programs
and guidelines specific to the goals adopted by Council for the Core Area and use of West Side
Tax Increment Funds. Council has previously approved a TIF project under draft guidelines as
final program guidelines will be brought forward for review and consideration by council at a
future date.
The 7 Main Street owners are requesting technical assistance for the development of
architectural drawings for a new Main Street facade that would be in keeping with the materials
and styles of the period of construction, believed to be mid-1920's. The Urban Renewal Agency
is recommending assistance of $5,000 to the applicant for the cost of the architectural drawings
that are estimated to cost $7,800.
Chap Godsey and Josh Smith purchased for the former Kelly Main Street Furniture building in
October 2012. What appears from the street as one building is actually two: 7 and 11 Main
Strc,a. In December of 2012 the southern and larger portion of the building, 11 Main Street, was
sold to Paul Roybal. Mr. Godsey and Mr. Smith intend to remodel the northern portion of the
building in which they retained ownership, 7 Main Street, for the purpose of retail business
leasing. The second floor will remain in residential apartment rentals. Currently 7 Main Street
has no front door access on Main Street and has a shared awning with 11 Main Street.
Once a facade design is complete, the applicants may wish to apply to the West Side TIF for
historic facade renovation funds. This will have to be a second and separate application as the
architectural design will be a prerequisite to determining costs for the renovation.
The URA has been addressing the 7 Main Street application as a pilot project for the technical
assistance program in the Core Area within the West Side TIF. The application has been found
by the URA to be compliant with the goals of the West Side Core Area Urban Renewal Plan and
demonstrative of the intent to incept private investment in the area.
FISCAL IMPACT: The West Side Tax Increment Financing District currently holds $2.7
million. The 7 Main Street project funding recommended by the Urban Renewal Agency would
provide $5,000 in a reimbursable technical assistance grant for the development of architectural
renderings of the Main Street building facade.
RECOMMENDATION: It is recommended that Council approve the 7 Main Street
application for Tax Increment Financing from the West Side —Core Area not to exceed: $5,000
reimbursable grant for technical assistance.
West Side Tax Increment Financing District —Core Area
TECHNICAL ASSISTANCE PROGRAM
Background Information
In 1997, an urban renewal plan was adopted by the Kalispell City Council creating the Westside
Urban Renewal District and Tax Increment Financing District. The intent of the Plan is to
improve the area and encourage redevelopment through the use of tax increment financing (TIF)
as specified by Montana Urban Renewal Law 7-15-42 and 43, M.C.A. In 2012, the Westside
TIF District was expanded by the Core Area Urban Renewal Plan, amended by Council action
and approved by the Montana Department of Revenue. The Urban Renewal Agency, supported
by Community and Economic Development Department staff in accordance with provisions in
state law and under the authority of the amended Urban Renewal Plan approved by City Council
with Ordinance # , has created a facade improvement program to address certain conditions
within urban renewal districts.
The goals and objectives of the urban renewal plan will be realized through implementation of
recommendations and strategies contained in the City of Kalispell West Side Urban Renewal
Plan and other plans and regulations as applicable to the District including the Kalispell Growth
Policy.
Technical Assistance Program Objectives
The primary objective of the Technical Assistance Program is to support current or potential
property developers, owners and/or tenants with technical assistance during the preliminary
phases of site improvement projects within the West Side TIF Core Area. Additional objectives
include expanding the property tax base, stimulation of business and economic development and
retention and expansion of employment in the district. The Technical Assistance Program is a
reimbursable program subject to completion of improvements within one year of City approval.
Guidelines
The program consists of grants to any commercial, mixed use and multi -family (four or more
units) property within the West Side —Gore Area T1F whose projects meet the eligibility criteria.
This program is not available for properties owned by units of government, not -for -profit
organizations, or for single-family residential properties or multi -family properties consisting of
less than four units. All applications will be reviewed by Community and Economic
Development staff, and if deemed to meet the criteria set forth, will be presented to the Urban
Renewal Agency Board for consideration and recommendation to City Council. Grants for any
individual project may not exceed $5,000. If it is the finding of the URA that an amount
exceeding $5,000 is merited due the size of the project, the magnitude of its impact on the built
environment, public benefit, and/or tax generation, the URA may, at is sole discretion
recommend additional funds for the project in technical assistance. Project must be completed
within one year of City Council approval. Upon project completion applicant will be reimbursed
up to $5,000 or the amount approved by City Council for technical assistance.
Eligible Uses
There are three services available under Technical Assistance:
1. Architectural Design
2. Engineering
3. Landscape Design
Each allows for services at an estimated value of $100 per hour for a total maximum expenditure
of $5,000 per eligible site or 50 hours of professional services total.
Possible site specific services may include:
• Fagade design
• Feasibility study
• Preliminary development review assistance
• Preliminary building condition assessment study (structural, mechanical, electrical, etc.)
• Restoration guidance
• Renovation/reuse study
• Preliminary cost estimates
• Code analysis
• Landscape/hardscape design
Ineligible Participants and Activities
This program is not available for properties owned by units of government, not -for -profit
organizations, or for properties primarily in residential use with the exception of multi -family
units consisting of four or more units. The following work is ineligible under this program:
1. Interior rehabilitation
2. Non -permanent fixtures
3. New construction or additions
4. Any work initiated prior to necessary program approvals
Application Process
The Technical Assistance Program is open to developers, building owners and/or tenants who are
interested in projects that enhance their facility and promote or improve the West Side Core
Area. To apply, applicants will:
1. Contact the City of Kalispell's Community and Economic Development Department to
discuss their proposed project and check the status of funding available.
2. Complete the Technical Assistance Program application form available on the City of
Kalispell website at www.kalispell.com and provide all necessary attachments.
3. Present request to the Urban Renewal Agency.
4. If approved by the Urban Renewal Agency, the applicant must be present at the City Council
meeting for final City approval.
5. Project design is presented to City Architectural Review Committee for approval.
2
Design Firm Requirements
Applicants must submit the following application attachments related to their proposed design
firm:
1. Attach a bio and resume of firm conducting the technical assistance
2. Attach an estimate and brief description of the project outline, including time frame
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 5990 -1 97
Telephone (406) 758-7000 Fax - (406) 759-7759
Date- September 11, 2013
Re: 7 Main Street, WM Side Cuban Renem-al District TIF Request For Technical Assistance
Background: 7 and l l Main Street were purchased by Chap Godsey and Josh Smith in October 2012. The
larger portion of the building, 11 Main Street was sold in December 2012 to Paul Roybal who is currently
operating Roybal Abbey Carpet store. Mr. Godsey and Mr. Smith are currently remodeling the interior of the
building. They will work with CTA Architects to draft a design for fagade remodel and hope to have the
building completed within 6 months. They will lease the building as retail space.
The request for Technical Assistance was presented to the URA on September 4, 2013. The URA has made a
recommendation that City Council consider approving up to $5,000 in Technical Assistance toward the cost
of the CTA design fees of $7,800. This recorm endation, if approved, would be a reimbursable grant upon
completion of the Facade mrnodel-
It is anticipated that Mr. Godsey and Mr. Smith will present a second. TIF request in November 2013 for
assistance with historic fagade restoration.
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DATE: August 30, 2013
TO: .Joshua Smith
RE: Proposal / Letter of Interest: Design for the Exterior Renovation of 7 Main Street
Dear Joshua:
This letter is to confirm our interest in your renovation project and to provide you with an estimate far
associated design fees, based upon our conversation this morning. Thank you for your interest in the
services offered by CTA.
Scope of Services
We applaud your intentions to renovate the exterior of 7 Main Street and to return it to a condition
respectful of its historic origin. Under the scope of this proposal, CTA would join you in performing a simple
investigative effort to uncover the true substrate material under the existing stucco and stone. This effort
will hopefully result in the discovery of existing historic face brick that can be re -exposed and used as the
primary material to be maintained in the redesign effort. If no such material is uncovered. CTA will work
with you to use the surrounding downtown context as inspiration to arrive at a meaningful and appropriate
design suitable for renovation in the historic downtown Kalispell core.
Once a concept design is arrived at. CTA will provide basic drawings of the West elevation for estimating
and construction purposes. We expect that the above services can be accomplished in the period of
about 6 weeks. We propose to perform this work on an hourly basis until the total project design needs are
met. An estimate for the total design fee is below.
CTA estimated fee for the above work: $7800.00 (budget)
The above proposal is for work to be performed on the West Elevation of the building ONLY (it does not
include design or construction on any of her elevation, of interior design/floor plan design work). The above
proposal does not include fees that might be necessary for structural engineering. Any related city fees or
permits, or any document printing flees are not included.
If our assumptions for the Scope of Services above is inaccurate, please let us know and a revised proposal
will gladly be created for you.
We very much look forward to the opportunity of working together on this project, in the hopes that it will
develop into a strong working relationship lasting for many years to come. At CTA, we strive to create and
serve long-term client relationships, believing that both parties benefit greatly from the familiarity of
frequent work, allowing us perform with greater efficiency and intuition, while allowing us to have some fun
along the way.
Thank you again for your interest. We look forward to hearing from you.
David Koel, AIA
Associate Principal
CTA Architects Engineers
2 maln Streel Suite 2W Kalispell Monlana 59901 406.471.2272 www.ctaarouo,.cam