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08-04-87 Parking Comm MinutesPARKING COMMISSION August 4, 1987 4:00 PM ATTENDING: Chairman Gordon Pirrie, Colin Wills, Bob Ivey, Steve Cooney, Gary McCarthy, Susan Moyer of COD, City Clerk Don Halver and Mayor Ed Kennedy. C. Pirrie welcomed newly council appointed member Steve Cooney and introduced him to the commission members. He then asked Clerk Halver to explain the two options in the legal opinion from City Attorney Neier concerning retiring the Eagles Lot debt. TAX INCREMENT BOND PROCEEDS TO RETIRE EAGLES LOT DEBT - Clerk Halver stated the City Attorney's legal opinion attached states that it would be appropriate for the Parking Commission to expend proceeds from the sale of TIF Bonds in 1985 to retire debts by the City in purchasing the Eagles Lot in 1980. An alternative is to use cash available through the Tax Increment District to payoff one of two notes on the Lot which would allow Parking Commission income to retire the outstanding debt in a timely fashion. City Attorney Neier discussed both these suggestions with Missoula Bond Attorney Mae Nan Ellingson and she suggested that because the Eagles Lot was not a "project" designated under the 1985 issue the City should hold a public hearing on the proposal prior to transfer. She felt an abbreviated notice in the way of publication • would avoid additional time and expense of personal notice. The City Council could merely pass a resolution of intent, publish notice of public hearing after which, consider the passage of a "Project Resolution". Mr. Neier suggested that this procedure be used if the Parking Commission wants to retire the entire Eagles Debt. Attorney Neir sees no legal difficulties in any Tax Increment Funds generally to retire the Eagles Lot debt and by using TIF exclusively, without bond proceeds, the City would pay off approximately 112 of the outstanding debt. He does suggest that the Commission adopt one of the retirment plans or the City may have to cut enforcement which would lead to reduction in revenues. C. wills strongly opposed the idea of any monies being used to pay for the lot and stated that any revenue or tax increment funds should go to buy new lots, not pay off the ones already owned. Bob Ivey agreed with Colin, that monies should go into new purchases and not old ones. He feels that an SID should be activated to pay the Eagles obligation if revenues do not cover it. This idea was not agreed with by the other members of the commission, who feel that the tax increment district funds are there and should be used. Don Halver stated that with the notes paid off the revenues could be put away for future parking purchases. He also stated that some parking has been lost and needs replacing, and the revenue is not enough to cover costs and loan payments. C. Pirrie stated that the lots are not all being used now and that there needs to be a way to force people to use them. He is not in favor of raising the business- • mens taxes anymore when there are other options. Steve Cooney agreed, "the businessmen are taxed enough" Parking Commission August 4, 1987 • page 2 G. McCarthy made a motion to use tax increment funds -non-bond monies budgeted for the Parking Commission -to pay off one loan, (approximately $49,000) with the same consideration given next year; re: the budgeting tax increment funds for the Commission. Steve Cooney seconded, Bob Ivey and Colin Wills opposed, C. Pirrie broke.the:tie and the motion passed. C. Pirrie asked the secretary to write a letter to the City Council stating that the Parking Commission recommends using tax increment cash to pay off one of the loans on the Eagles lot, thus leaving the cash revenue of the Commission to pay off the remaining loan in a timely fashion. When asked by C. Pirrie how long this tax increment cash would be available, Susan Moyer said until 1991. However, there will be the UDAG repayment monies available for the next 25 years to assist in the redevelopment area. FOLLOW-UP ON APCOA, INC.- There has been no information recieved at this time from the Great Falls company.. C. Pirrie asked the secretary to contact them and see if they are going to send the information asked for at last months meeting. SUGGESTIONS FOR NEW PARTKING LOTS - Colin wills had asked at last meeting that each member look into and give thought to new parking areas for purchase, and they would be disussed this month. Bob Ivey discussed his thoughts on an offer that had been made to the commission is of a lot downtown. (see May 12, 1987 minutes) Colin wills has some property in mind in the southeast area, which is in great need of parking. C. Pirrie suggested purchasing an existing lot and possibly leasing some of it out. Discussion of leasing out spaces in existing lots followed, as well as their being metered or not, partially or completely. The commission members will gather more information and figures on these suggested areas and discuss them further. G. McCarthy stated that the bank had decided at this point not to put meters in their new parking lot. However, he stated that First Interstate would reconsider if the commission or possibly APCOA,INC. felt it should be done. There was discussion of it being a good income lot, meters, possibility of college students taking advantage of it, etc. _ LETTER FROM SHELBY RESIDENT RE: PARKING TICKET- C. Pirrie read a letter from a Clarnelle Patterson of Shelby, MT. who wrote saying she was inclosing her fine from being ticked while shopping downtown Kalispell in July. She stated from then on she shopped at the shopping malls and Bigfork. C. Pirrie asked the secretary to write a letter of apology to her and refund her money. This brought up discussion of curtesy tickets to be given out to out-of-town shoppers, and C. Wills stated that there were some printed years ago. The secretary will look into possibly finding out if they still exist or if more can be printed. C. Pirrie made a motion that courtesy tickets be given out, it was seconded by Bob Ivey, all members agreed and motion passed. Meeting adjourned at 5:15 PM M. • John "Ed" Kennedy \\� Drawer 1997 Jr. Mayor -'. Zip 59903'1997 Telephone (406) 755'5457 THE CITY OF K A L I S P E L L, M O N T A N A TO: Don Halver FROM: Glen Ne ie; RE: yl;l� Use of;,Tax�Incremhent Bond Proceeds to Retire Eagles Lot Debt `-- You have requested that I determine if it would be appropriate for the City of Kalispell Parking Commission to expend proceeds from the sale of TIF Bonds in 1985 to retire debts incurred by the City in purchasing the Eagles Parking Lot in 1980. An alternative suggested is to use cash available -through the Tax Increment District' to pay off one of two notes on the Eagles Lot which would allow Parking Commission income to retire the then outstanding debt in a timely fashion. It is my understanding that current income to the Parking Commission does not cover expenses and debt retirement responsibilities. The Parking Commission during fiscal 1987 spent approximately $15,000 more than was actually taken in as revenue. Because of cash reserves the Parking Commission retained solvency through fiscal 1987. However, the cash available has been depleted and without an increase in revenue or a reduction in expenditures the Parking Commission cannot remain solvent. The City currently owes $104,000 (approximately) on the Eagles Lot and if an alternative method of retiring the debt can be found, the Parking Commission would not have so much of a problem. I have discussed the suggestions regarding the use of Bond proceeds to retire debts with Mae Nan Ellingson, a Missoula bond attorney. Ms. Ellingson suggested that because the Eagles Lot was not a "project" designated under the 198-5 issue the City should hold a public hearing on the proposal prior to transfer. Ms. Ellingson did inform me that she felt that the City could use an abbreviated notice by publication and avoid the additional time and expense of personal notice. The City Council would by using this procedure merely pass a resolution of intent, publish notice of public hearing, and after public hearing consider the passage of a "Project Resolution". I would suggest that the above be employed in the event the Parking Commission desires to retire the entire Eagles Lot debt. Finally, I have seen no legal difficulties in any Tax Increment Funds generally to retire the Eagles Lot debt and consider that by using "Vacation City" Memo Page 2 August 4, 1987 • TIF exclusively, without bond proceeds, the City could pay off approxi- mately 1/2 of the outstanding debt. I would strongly suggest that the Parking Commission adopt one of the debt retirement plans. If not, the City may have no choice but to cut enforcement which would lead to a corresponding reduction in revenues. Dated this day of August, 1987. GN/sh l'