E4. 7 Main Street TIF RequestcYoF City of Kali*spell
� Post Office Box 1997 -Kalispell, Montana 59903-1997
` Telephone (406) 758-7701 Fax - (406) 758-7758
MClNTANA
MEMORANDUM
To: Doug Russell, City Manager
From: Katharine Thompson, Community Development Manger
Re: West Side -Core Area Tax Increment Financing (TIF) Application
Meeting Date: June 1, 2015
BACKGROUND: The West Side Tax Increment Financing (TIF) District was expanded to include
the Core Area as of December 21, 2012. This change resulted in the adoption of the "City of
Kalispell West Side Urban Renewal — Core Area Tax Increment Financing District Policies,
Procedures and Programs" on February 18, 2014 to meet guidelines specific to the goals adopted by
Council for the Core Area and use of the West Side Tax Increment Funds.
Chap Godsey and Josh Smith purchased the former Kelly Main Street Furniture building in October
of 2012. Mr. Oodsey and Mr. Smith retained ownership of 7 Main Street and have since done
interior remodeling and reroofing, activities that were partially financed by the City of Kalispell's
Revolving Loan Fund program. The owners now intend to begin work on facade renovation, a
process which began September 16, 2013, when Council approved up to $5,000 in West Side Tax
Increment Financing District technical assistance grant funding for historic fagade design. The
fagade design was done by CTA and then presented and approved by the City of Kalispell
Architectural Review Committee. This approved design was submitted to the Urban Renewal
Agency for historic facade grant funding consideration on May 14, 2015.
After review of the 7 Main Street facade design proposal, it is the Urban Renewal Agency's belief
that this property's fagade restoration provides an urban curb appeal that invites good mixed use of
residential living to downtown that increases commerce and combats blight. The full cost of the
historic facade has been bid at $64,834.
FISCAL IMPACT: The West Side Tax Increment Financing District currently budgeted $2.465
million for redevelopment in FY201 6. The Urban Renewal Agency recommends $32,417 for Historic
Fagade grant funding. The previously approved technical assistance funding of $5,000 will be
provided to the property owner upon completion of historic facade construction.
RECOMMENDATION: It is recommended that Council approve the 7 Main Street application for
Tax Increment Financing from the West Side -Core Area in the amount of $32,417 as reimbursable
grant funding for historic facade renovation.