05. Resolution 4222 - Intent to Create SID 342RESOLUTION NO. 4222
RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 342;
DECLARING IT TO BE THE INTENTION OF THE CITY COUNCIL TO CREATE
THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL
IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL
THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT
BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT
REVOLVING FUND.
BE IT RESOLVED by the City Council of the City of Kalispell (the
"City"), Montana, as follows:
SECTION I. PROPOSED IMPROVEMENTS; INTENTION TO CREATE
DISTRICT
The City proposes to undertake certain local
improvements (the "Improvements") to benefit certain
property located in the City. The Improvements consist
of installation of storm sewer system, water mains,
street lights, curb and gutter and paved road, as more
particularly described in Section V. The total
estimated construction costs of the improvements are
$209,000.00 . The cost of the Improvements are to be
paid from the following sources: (1) Special
Improvement District bonds hereinafter described. It
is the intention of this Council to create and
establish in the City under the Title 7, Chapter 12,
Parts 41 and 42, Montana Code Annotated, as amended, a
special improvement district (the "District") for the
purpose of financing a portion of the costs of the
Improvements and paying costs incidental thereto,
including the costs associated with the sale and the
security of special improvement district bonds drawn on
the District (the "Bond"), the creation and
administration of the District, the funding of a
deposit to the City's Special Improvement District
Revolving Fund (the "Revolving Fund") and the
establishment of a reserve account securing the Bonds
in the District fund (the "Reserve Account"). The
total estimated costs of the Improvements, including
such incidental costs to be financed by the Bonds are
$209,000.00. The Bonds are to be payable primarily from
special assessments to be levied against property in
the District, which property will be specially
benefitted by the Improvements in an amount not less
than $209,000.00.
SECTION II. NUMBER OF DISTRICT
The District, if the same shall be created and
RESOLUTION OF INTENTION
SID #342 2
established, shall be known and designated as Special
Improvement District No. 342 of the City of Kalispell,
Montana.
SECTION III. BOUNDARIES OF DISTRICT
The limits and boundaries of the District are depicted
on a map attached as Exhibit uA°, attached hereto and
thereby made a part hereof, which boundaries are
designated and confirmed as the boundaries of the
District. A listing of each of the properties of the
District is shown on Exhibit OB°, attached hereto,
which is hereby incorporated herein and made a part
hereof.
SECTION IV. BENEFITTED PROPERTY
The District and territory included within the limits
and boundaries described in Section III and as shown on
Exhibits A and B are hereby declared to be the special
improvement district and the territory which will
benefit and be benefitted by the Improvements and will
be assessed for a portion of the costs of the
Improvements as described in Section I. It is the
intention of the Council to charge the expenses of the
work improvements to lots not fronting on the
Improvements, as well as lots abutting the
Improvements, because the lots not fronting on the
Improvement are benefitted by the Improvements and the
installation of the Improvements are more than local
and ordinary benefit. The property included within
said limits and boundaries is hereby declared to be the
property benefitted by the Improvement.
SECTION V. GENERAL CHARACTER OF THE IMPROVEMENTS
The general character of the Improvements is to build a
storm sewer system, water mains, street lights, curb
and gutter and paved road, on Corporate Drive.
SECTION VI. ENGINEER AND ESTIMATED COST
The shall be the engineer for the District. The
Engineer has estimated the costs of the Improvements,
including incidental costs to be $ 180,000.00 .
SECTION VII. ASSESSMENT METHOD
All properties in the District are to be assessed for a
portion of the costs of the Improvements, as specified
herein. The costs of the Improvements shall be
RESOLUTION OF INTENTION
SID #342 3
assessed against the property in the District
benefitting from the Improvements, based on the
following:
A) The District's cost of constructing and
installing the storm sewer system, water
mains, street lights, curb and gutter and paved road, on
Corporate Drive shall be assessed by determining the lots
fronting upon the Improvements and assessing each lot as its
frontage bears to its proportion of the whole cost of the
Improvements.
B) The total lineal footage of the lots, tracts
or parcels bordering or abutting such Improvement
and to be so assessed is feet. The
assessment for each lot, tract or parcel of land
for the Improvements is shown on Exhibit "B",
attached hereto.
SECTION VIII. ASSESSMENT METHODOLOGIES EQUITABLE AND
CONSISTENT WITH BENEFIT
This Council hereby determines that the method of
assessment and the assessment of the costs of the
specific Improvements against the properties benefitted
thereby as prescribed in Section VII are equitable and
in proportion to and not exceeding the special benefits
derived from the respective Improvements by the lots,
tracts and parcels to be assessed therefore in the
District.
SECTION IX. PAYMENT OF ASSESSMENTS
The special assessment for the costs of the
Improvements shall be payable over a term not exceeding
10 years, each in equal semiannual installments of
principal, plus interest, or equal semiannual payments
of principal and interest, as this Council shall
prescribe in the resolution authorizing the issuance of
the Bonds. Property owners have the right to prepay
assessment as provided by law.
SECTION X. METHODS OF FINANCING; PLEDGE OF REVOLVING
FUND; FINDINGS AND DETERMINATIONS
The City will issue the Bonds in an aggregate principal
amount not to exceed $209,000.00 in order to finance
the costs of the Improvements. Principal of and
interest on the Bonds will be paid from special
assessments levied against the property in the District
and such payments will be secured by the Reserve
RESOLUTION OF INTENTION
SID #342 4
Account. This Council further finds it is in the
public interest, and in the best interest of the City
and the District, to secure payment of principal of and
interest on the bonds by the Revolving Fund and hereby
authorizes the City to enter into the undertaking and
agreements authorized in S 7-12-4225, MCA with respect
to the Bonds.
In determining to authorize such undertakings and
agreements, this Council has taken into consideration
the following factors:
A) Estimated Market Value of Parcels. The
estimated market value of the lots, parcels
or tracts in the District as of the date of
adoption of this resolution, as estimated by
the Flathead County Assessor for property tax
purposes, is set forth in Exhibit "B". The
property within the proposed District is zone
General Business, B-2 West of Corporate Drive
and Community Business, B-3 East of Corporate
Drive, allowing a variety of business
operations, including out -door displays and
storage of merchandise in the B-2. The City
of Kalispell, Public Works Department
estimates that every lot, parcel or tract of
land within the proposed District would
increase in value significantly after the
Improvements have been completed. The
special assessments to be levied under
Section VII against each lot, parcel or tract
in the District is less than the increase in
estimated market value of the lot, parcel or
tract as a result of the construction of the
Improvements.
B) Diversity of Property Ownership. The 7 lots,
parcels or tracts of land within the District
have 4 different owners. The developed lots
are primarily developed as multi -purpose
business operations and 4 lots are
undeveloped and vacant.
C) Comparison of Special Assessments and
Property Taxes and Market Value. The
proposed Improvements and incidental expenses
will require $209,000.00. There are no
outstanding special assessments or industrial
development revenue bonds on property within
the District. According to the Flathead
County Treasurer's office total unpaid and
RESOLUTION OF INTENTION
SID #342 5
delinquent taxes on
in Exhibit "B" the
property is $
delinquencies are _
The District if created
the market value of the
D) Delinquencies
As shown
market value of the
. Current
,of the market value.
will be of
property.
Delinquencies on the property are of
the market value of the property in the
proposed District. Currently, the City's
General Fund Levy shows a delinquency rate of
2%. The City has currently total outstanding
SID and Sidewalk and Curb bonds in the amount
of $ Total delinquencies on the
bonds equals $2,859 or about 2%. The City
has currently $32,962.00 in the SID Revolving
Fund or about 22% of the outstanding debt
owed from SID's and Sidewalk and Curb bonds.
E) The Public Benefit of the Improvements
The property included within the District
comprises a significant area within the City
limits of Kalispell not served by City water.
The area cannot be developed for any purpose
without the installation of a water system,
streets, curb and gutter street lights. All
property within the District is either within
the boundaries of the City or will be in the
City prior to assessment for the
Improvements.
SECTION X. PUBLIC HEARING• PROTEST
At any time within fifteen (15) days from and after the
date of the first publication of the notice of the
passage and approval of this resolution, any owner of
real property within the District subject to assessment
and taxation for the cost and expenses of making the
Improvements may make and file with the City Clerk of
Council until 5:00 P.M., M.D.T., on the expiration date
of said 15-day period ( )written protest
against the proposed Improvements, or against the
extension or creation of the District or both, and this
Council will at its next regular meeting after the
expiration of the fifteen (15) days in which such
protests in writing can be made and filed, proceed to
RESOLUTION OF INTENTION
SID #342 6
hear all such protests
regular meeting will be
7:00 P.M. M.D.T. in the
Kalispell, Montana.
so made and
held on _
City Hall,
filed; which said
, at
312 lst Avenue East,
SECTION XI. NOTICE OF PASSAGE OF RESOLUTION OF INTENTION
The City Clerk of Council is hereby authorized and
directed to publish or cause to be published a copy of
a notice of the passage of this resolution in the Daily
Inter Lake, a newspaper of general circulation in the
County on and , 1995, in the form and
manner prescribed by law, and to mail or cause to be
mailed a copy of said notice to every person, firm,
corporation, or the agent or such person, firm, or
corporation having real property within the District
listed in his or her name upon the last completed
assessment roll for state, county, and school district
taxes, at his last -known address, on or before the same
day such notice is first published.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA THIS DAY OF JULY, 1995.
Attest:
City Clerk of Council
RESOLUTION OF INTENTION
SID #342
7
Douglas D. Rauthe - Mayor
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June 13, 1995
Bruce Williams
City Manager
Kalispell, MT 59901
Re: Propose SID for the Design and Construction of Corporate Drive
Dear Mr. Williams:
I would respectfully request a meeting with the Council
during their next work sessions to discuss the above proposal.
I am interested in developing approximately thirty acres
` of property which would be served by Corporate Drive. All the
property is already in the City and zoned. This proposal
would include a 12" water main extension to the new fifty-four
lot Greenbriar Sub -division. I have the proposed engineered
plans in hand.
Thank you for your consideration.
Sincerely,
Ronnie Pack
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WATER RELATED COSTS
MANHOLE ADJUSTMENT
EACH
$200.00
4
$800
4" SEWER SERVICE
LF
$16.00
150
$2,400
CURB INLETS
EACH
$700.00
4
$2,800
STORM DRAIN INLET MANHOLES
EACH
$1,700.00
4
$6,800
12" STORM DRAIN PIPE
LF
$16.50
1,193
$19,685
12" WATER MAIN
LF
$24.00
345
$8,280
8" WATER MAIN
LF
$20.50
70
$1,435
6" WATER MAIN
LF
$17.00
12
$204
12" GATE VALVBE AND BOX
EACH
$950.00
1
$950
8" GATE VALVE AND BOX
EACH
$750.00
2
$1,500
2" WATER SERVICES
EACH
$900.00
2
$1,800
STREET LIGHTS
EACH
$1,300.00
7
$9,100
MISC FITTINGS
EACH
$225.00
9
$2,025
CURB AND GUTTER
LF
$8.50
2,528
$21,488
3" MINUS PIT RUN
Cy
$9.50
2,722
$25,859
3/4" CUSHION
SF
$0.23
44,100
$10,143
4" ASPHALT f2 LIFTS
SF
$0.70
44,100
$30,870
ENGINEERING DESIGN
8.00%
$11,691.08
1.0000
$11,691
CONSTRUCTION ENGINERING
4.00%
$5,845.54
1.0000
$5,846
CONTINGENCY
1 0.00%L
$16,367,51
1.0000
$16,368
OTAL $180 042.63
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