E5. Resolution 5719 - West Side Tax Increment Funding Matchpity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. ]Box 1997
Kalispell, MT 59903-1997
W1 I NOD in tofwalylz III
To: Doug Russell, City Manager
FROM: Charles Harball, City .Attorney
Tel 406.758.7709
Fax 406.75 8.777 l
charball@katispell.com
SUBJECT: Resolution No. 5719 -- accepts the recommendation of the URA that
recognizes certain projects as eligible for west side Tax Increment
funding and may be considered as local match funds to a TIGER VII
Grant for the Core Area Urban renewal Plan.
MEETING DATE, dune 1, 2015 — 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 goals of removal of
rail infrastructure and businesses served thereby, engineering and construction of
interconnecting sidewalk and trail access with a proposed linear trail planned to be
constructed when the tracks are removed, engineering and construction of utilities
(water, storm sewer, wastewater) and street system within the abandoned track area as
well as to serve those businesses removed to the rail parr adjacent to the district.
An application for a Transportation Investment Generating Economic Recovery (TIGER
VII) Grant to fund certain projects that meet the goals and policies the Core Area Urban
Renewal Plan will be submitted. in June 2015. on May 15, 2015, the City of Kalispell
Urban Renewal Agency considered the Core Area Projects 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 the identified
projects. The Kalispell City Council should consider whether or not it is in the best
interests of the City that it fund these projects and to the extent recommended as a
portion of the match required under the application for the TIGER Grant.
Approval of URA. RecommendationITIGER Grant Memorandum
June 1, 2015
Page - 2
RECOMMENDATION: It is recommended that the City Council approve Resolution
No. 5719 accepting the recommendation of the Urban Renewal Agency that $4.5 million
of TIE funds from the west side TIF District may be utilized for certain Core Area
Projects and thereby be considered a local snatch 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 proposed projects to the extent recommended by the URA.. This action
will leverage TIGER Grant funds to complete projects identified in the Core Area Flan
that would otherwise be unfunded.
Respectfully submitted
CharlesAa6b-all, City Attorney
Office of City Attorney
City of Kalispell
RESOLUTION No. 5719
A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE CITY OF
KALISPELL URBAN RENEWAL AGENCY THAT IDENTIFY CERTAIN PROJECTS
IN THE WEST SIDE URBAN RENEWAL PLAN THAT MAY BE FINANCED BY
WEST SIDE TAX INCREMENT FUNDS AND WHICH SHOULD BE CONSIDERED AS
LOCAL MATCH FUNDS TO A TRANSPORTATION INVESTMENT GENERATING
ECONOMIC RECOVERY (TIGER VII) 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 goals of removal of rail
infrastructure, engineering and construction of interconnecting sidewalk and trail
access with a proposed linear trail planned to be constructed when the tracks are
removed, engineering and construction of utilities (water, storm sewer,
wastewater) and street system within the abandoned track area as well as to serve
those businesses removed to the rail park adjacent to the district and grading and
preparation of site within rail park to receive the removed businesses; and
WHEREAS, on the 15th day of May, 2015, the City of Kalispell Urban Renewal Agency
considered the above listed projects 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 these projects; and
WHEREAS, preliminary engineering estimates of the listed projects are identified in Exhibit
"A" attached hereto and are highlighted in such exhibit in yellow; and
1
WHEREAS, the city currently has $4.288 million in available TIF funds and anticipates
realizing an additional $17.818 million of incremental TIF Revenue over the
remaining life of the TIF District; and
WHEREAS, the Kalispell City Council finds that it is in the best interests of the City that it
fund the listed projects and in the percentages set forth in Exhibit "B" from West
Side Tax Increment Funds in the amount of $4.5 million as a portion of the match
required by the TIGER VII 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)
VII 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 identified projects 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 the sum of $4.5 million
be offered as matching funds for the TIGER VII Grant.
SECTION 3. That the Kalispell City Council hereby approves the application for a
Transportation Investment Generating Economic Recovery (TIGER) VII
Grant to fund those certain projects that meet the goals and policies of the
Core Area Urban Renewal Plan and authorize the City Manager to make
such application.
SECTION 3. This Resolution shall become effective immediately upon its passage by
the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNET] BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 1 s' DAY OF JUKE, 2015.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Exhibit B
TIGER VII Project Cost Description
Land Acquisition forTtrail in Core Area
Design of Multi -Use Trail and Complete Streets in
Core Area
Complete street extensions in Core Area
Rail Park Mobilization
Rail Park Easement and Property Acquisition
Rail Park Traffic Control
Rail Park Fencing
Rail Park Water Infrastructure
Rail Park Wastewater Infrastructure
Rail Park Storm Water
Rail Park Miscellaneous Utilities
Rail Park Grading
Rail Park Construction Engineering/Survey
Estimated Cost
% of Total Cost
$ Amount Proposal for TIF
$ 200,000.00
100%
$
200,000.00
$ 325,000.00
100%
$
325,000.00
$ 1,072,000.00
77%
$
823,519.00
$ 522,000.00
46%
$
240,120.00
$ 25,000.00
46%
$
11,500.00
$ 75,000.00
46%
$
341P500.00
$ 94, 000.00
46%
$
43, 240.00
$ 972,356.00
46%
$
4479284.00
$ 570,000.00
46%
$
262,200.00
$ 529,940.00
46%
$
2431P772.00
$ 310, 000. 00
46%
$
142, 600.00
$ 3,326,587.00
28%
$
9256175.00
$ 1, 741, 500.00
46%
$
801,090.00
TOTAL $ 4,500,000.00