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05. Ordinance 1260 - TIF Amendment Airport Area - 1st ReadingAgenda -March 3, 1997 �f� . flu • 1 r _� : 5# _ O uf:a • s VT O-4 4 0Fq The City Council on June 17th, 1996 approved the Kalispell City -County Airport/Athletic Complex Redevelopment Plan (Ordinance No. 1242). The Plan and the Ordinance contained references to the Montana Urban Renewal law, Title 7, Chapter 15, Parts 42 and 43 and discussed Tax Increment as an option to financing improvements to the Airport and Ballfields. The County Assessor established January 1, 1996 as the base taxable value date for calculating increment to the District. After discussing the Ordinance and Plan with the City's bond counsel, Mae Nan Ellingson, it was determined that the City should amend the Ordinance to clearly state that the City would segregate tax increment funds accruing to the district and apply those funds to projects. It would also be appropriate to recognize January 1, 1996 as the base taxable value date for the District. An Ordinance amending Ordinance No. 1242 is included in your packets. ORDINANCE NO. 1260 AN ORDINANCE AMENDING ORDINANCE NO. 1242 TO PROVIDE FOR THE SEGREGATION OF AND APPLICATION OF TAX INCREMENT IN THE CITY AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN AND CONFIRMING JANUARY ZST, 1996 AS THE BASE YEAR FOR CALCULATING THE TAX INCREMENT. WHEREAS, on June 17th, 1996, the City Council of the City of Kalispell adopted Ordinance No. 1242 approving the Kalispell City Airport/Athletic Complex Redevelopment Plan as an urban renewal plan, and WHEREAS, under said Ordinance the City authorized the Manager to implement the Plan with the powers set forth in Title 7, Chapter 15, Parts 42 and 43, which includes a provision for the segregation and application of tax increments accruing to a district, and WHEREAS, under § 7-15-4286, MCA mill rates of taxing bodies for taxes levied after the effective date of the tax increment provision shall be calculated on the basis of the sum of the taxable value, as shown by the last equalized assessment roll, of all taxable property located outside the urban renewal area and the base taxable value of all taxable property located within the urban renewal area. The mill rate so determined shall be levied against the sum of the actual taxable value of all taxable property located within as well as outside the urban renewal area. The tax increment, if any, received in each year from the levy of the combined mill rates of all the effected taxing bodies against the incremental taxable value within the urban renewal area, except for the university system mills levied and assessed against property as defined in 7-15-4292 (6)(a), shall be paid into a special fund held by the treasurer of the municipality and used as provided in 7-15-4282 through 7- 15-4292, MCA, and WHEREAS, the effective date of Ordinance No. 124.2 was July 17, 1996. is\wp\amend1242.wpd NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTIONI. That January 18t, 1996 shall be established as the base year for calculating tax increment. SFr_TIO.N__II. That the City shall segregate and apply tax increments accruing to the district, as provided in H 7-15-82 through 7-15-4292, MCA. SECTION II -I. That this Ordinance shall take effect thirty (30) days, from and after, its passage and adoption by the City Council. FINALLY PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL, THIS DAY OF MARCH, 1997. Douglas D. 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