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4. Resolution 5670 - Resolution Accepting URA RecommendationCharles A. Harball Office of City Attorney City Attorney 201 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 10 1 NO M 11 ►/ 1 TO: Doug Russell, City Manager Tel 406.758.7709 Fax 406.758.7771 charball@kalispell.com FROM: Charles Harball, City Attorney SUBJECT: Resolution No. 5670 — accepts the recommendation of the URA that recognizes the Core Area Linear Trail Project as eligible for West Side Tax Increment funding and may be considered as local match funds to a Transportation Investment Generating Economic Recovery (TIGER) Grant for the Core Area Urban Renewal Plan. MEETING BATE: April 21, 2014 — Regular Council Meeting BACKGROUND: On November 19, 2012 pursuant to Ordinance No. 1717, the City modified the boundaries of the Kalispell West Side Tax Increment Financing District to include additional properties known and identified as the "Core Area", comprising the area affected by the railroad tracks traversing central Kalispell from east to west and which includes approximately 364 acres along the rail corridor within the city limits. After conducting public hearings on the Core Area Plan and after amending the Kalispell Growth Policy 2020, the Kalispell City Council, on February 4, 2013, by Resolution 5605, found it to be in the best interests of the City to amend the West Side Urban Renewal Plan to include the Core Area Plan. The Core Area Plan includes the goal that neighborhoods be connected and well served by sidewalks and trails for use by people of all ages and mobility levels and with the policy that provides interconnecting sidewalk and trail access with a proposed linear trail planned to be constructed when the tracks are removed. An application for a Transportation Investment Generating Economic Recovery (TIGER) Grant to fund certain projects that meet the goals and policies the Core Area Urban Renewal Plan will be submitted on or before April 28, 2014. On the 17th day of April, 2014, the City of Kalispell Urban Renewal Agency considered the Core Area Linear Trail Project under the state and local regulatory rules for use of Tax Increment Funding and made the recommendation to the City Council that the West Side Tax Increment Funds may be used for this project. The Kalispell City Council should consider whether or not it is in the best interests of the City that it fund the Core Area Linear Trail Project as a portion of the match required under the application for the TIGER Grant. Approval of URA Recommendation/TIGER Grant Memorandum April 17, 2014 Page - 2 RECONIAMNDATION: It is recommended that the City Council approve Resolution No. 5670 accepting the recommendation of the Urban Renewal Agency that TIF funds from the West Side TIF District may be utilized for the Core Area Linear Trail and thereby be considered a local match for the Transportation Investment Generating Economic Recovery (TIGER) Grant application. FISCAL EFFECTS: There will be no immediate fiscal effect of this action. In the event that the TIGER Grant is issued, the City will have the necessary funds within the West Side TIF fund to construct the Core Area Linear Trail. This action will leverage TIGER Grant funds to complete other projects identified in the Core Area Plan that would otherwise be unfunded. Respectfully submitted, r i'. Charles arball, Ci y Attorney Office of City Attorney City of Kalispell RESOLUTION NO. 5670 A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE CITY OF KALISPELL URBAN RENEWAL AGENCY TO IDENTIFY THAT CERTAIN PROJECT KNOWN AS THE CORE AREA LINEAR TRAIL PROJECT AS AN URBAN RENEWAL PROJECT THAT MAY BE FINANCED BY WEST SIDE TAX INCREMENT FUNDS WHICH WILL BE CONSIDERED AS LOCAL MATCH FUNDS TO A TRANSPORTATION INVESTMENT GENERATING ECONOMIC RECOVERY (TIGER) GRANT FOR THE CORE AREA URBAN RENEWAL PLAN. WHEREAS, the City of Kalispell, pursuant to Ordinance No. 1259, created the West Side Urban Renewal District on March 17, 1997, and approved the West Side Urban Renewal Plan; and WHEREAS, the city, on November 19, 2012 pursuant to Ordinance No. 1717 modified the boundaries of the Kalispell West Side Tax Increment Financing District to include additional properties known and identified as the "Core Area", comprising the area affected by the railroad tracks traversing central Kalispell from east to west and which includes approximately 364 acres along the rail corridor within the city limits; and WHEREAS, after conducting duly noticed and proper hearings for the purposes of collecting public comment and evidence on the Core Area Plan and after acting legislatively to amend the Kalispell Growth Policy 2020, the Kalispell City Council, on February 4, 2013, by Resolution 5605, found it to be in the best interests of the City to amend the West Side Urban Renewal Plan to include the Core Area Plan; and WHEREAS, the duly adopted Core Area Plan as fully described in Kalispell Planning Department report #KGPA-12-01 includes the goal that neighborhoods be connected and well served by sidewalks and trails for use by people of all ages and mobility levels with the policy that provides interconnecting sidewalk and trail access with a proposed linear trail planned to be constructed when the tracks are removed; and WHEREAS, preliminary engineering estimates that the total costs to the city of constructing the linear trail will be approximately $4.63 million over a five year term; and WHEREAS, the city currently has $2.87 million in TIF Fund Reserves and anticipates realizing an additional $9.5 million of incremental TIF Revenue over the remaining life of the TIF District; and 1 WHEREAS, on the 17t` day of April, 2014, the City of Kalispell Urban Renewal Agency considered the Core Area Linear Trail Project under the state and local regulatory rules for use of Tax Increment Funding and made the recommendation to the city council that the West Side Tax Increment Funds may be used for this project; and WHEREAS, the Kalispell City Council approves the application for a Transportation Investment Generating Economic Recovery (TIGER) Grant to fund certain projects that meet the goals and policies of the Core Area Urban Renewal Plan; and WHEREAS, the Kalispell City Council finds that it is in the best interests of the city that it fund the Core Area Linear Trail Project as a portion of the match required by the TIGER Grant. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. That it is the desire of the Kalispell City Council that application be made for a Transportation Investment Generating Economic Recovery (TIGER) Grant to fund certain projects that meet the goals and policies of the Core Area Urban Renewal Plan. SECTION 2. That the Kalispell City Council hereby accepts the recommendation of the Urban Renewal Agency that the Linear Trail Project may, under the state and local regulatory rules for use of Tax Increment Funding, be funded from the West Side Tax Increment Fund and that such project be offered as matching funds for the TIGER Grant. SECTION 3. This Resolution shall become effective immediately upon its passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 2 1 " DAY OF APRIL, 2014. ATTEST: Theresa White City Clerk 2 Mark Johnson Mayor 1 City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 Urban Renewal Agency - Summary of Activities 04/17/2014 MEMBERS IN ATTENDANCE Marc Rold- Chairman; David Girardot; Murphy McMahon OTHERS IN ATTENDANCE City of Kalispell Staff - Community Development Manager, Katharine Thompson; Community Development Administrator, Lindsey Simpson; Tom Jentz, Planning Director CALL TO ORDER Chairman Rold called the meeting to order at 8:00a.m. ACCEPTANCE OF AGENDA Chairman Rold was given a brief agenda for review. ACCEPTANCE OF PRIOR MEETING SUMMARY OF ACTIVITIES No prior summaries were presented PUBLIC COMMENT: No public comment offered. UNFINISHED BUSINESS • No unfinished business was presented NEW BUSINESS • Tom Jentz opened the meeting by giving background of the Core Area Plan, approved by City Council in December 2012. The feedback from business owners in the Core Area reported that a large percentage want to see the rail road tracks removed and a linear trail constructed in its place. Tom Jentz updated the URA on the current TIGER VI funding application being submitted to the US DOT by April 28, 2014, from the City of Kalispell. City Council members and staff recently visited Washington DC to meet with congressional delegation and representatives from BNSF, DOT, and EPA and others regarding the grant application and Industrial Rail Park project. The feedback regarding the TIGER VI funding relayed to City Council and staff during these meetings encouraged the City to include the development of the Core Area Linear Trail Project in grant application. An estimated $4.6M is required for this project. This includes $200,000 in potential land acquisition; $1.4 million for trail development; $60,000 for regional trail head connection points; $1.3 million for pedestrian crossing upgrades/rail crossing conversions, and $1.074 million for the development of future complete street connections. Actual TIF funds would be slightly over $4 million. Remaining funds are expected to come from the Kalispell Brownfields program to address environmental assessment and cleanup as needed and estimated at $575,000. • The URA believes this project is eligible for West Side Tax Increment funds, and would like to recommend a $4.062M commitment as matching funds for the TIGER VI grant application. Murphy McMahon made a motion to recommend to the city council $4.062M in TIF commitment for the development of the Core Area Linear Trail, pedestrian crossing upgrades, trail connection points and connecting complete streets in the area. Dave Girardot seconded the motion. All members of the URA voted in favor. This recommendation will be presented to City Council on Monday, April 21, 2014. ADJOURN MEETING The meeting was adjourned at 8:28a.m. End of Summary of Activities 04/17/2014.