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I1. Resolution 5801 - Creation of BIDMONTANA MEMORANDUM REPORT TO: Doug Russell, City ManagerC�-- Clerk's Office 201 1st Avenue East PO Box 1997 Kalispell, MT 59903 Phone: (406) 758-7756 cityclerk@kalispell.com www.kalispell.com FROM: Aimee Brunckhorst, CMC, City Clerk & Communications Manager MEETING DATE: February 6, 2017 RE: Resolution to reestablish the Kalispell Downtown Business Improvement District (KBID) with Expanded Boundaries BACKGROUND: The Kalispell Downtown Business Improvement District is expiring pursuant to state statute. The KBID was established to promote the success of downtown Kalispell and is funded and directed by the property owners of downtown Kalispell. These efforts include beautification, downtown events, marketing, social media, fagade improvements and working with the City of Kalispell and other organizations to represent property owners. To establish a district per Montana Code Annotated (MCA) 7-12-1111, property owners of at least 60% of the land area within the proposed boundaries must petition the City for the creation of the district. Since business owners representing 62.84% of the land area within the proposed district submitted petitions to establish the business improvement district with the expanded boundaries, Council passed Resolution 5793 on December 19, 2016 per MCA 7-12-1112. Resolution 5793 stated Council intention to consider the establishment of the district, called for the public hearing to be held January 17, 2017, and caused notice of the hearing to be published and mailed to all business property owners in the proposed district. Business property owners were notified that they may file a protest with the City against the formation of the district and that the protest must be received within 15 days of the first publication and mailing. Per MCA 7- t 2-1114, if the total protests filed amounted to any of the following percentages the Council could take no further action upon the proposed district for one year. (a) more than 50% of the total taxable valuation of property within proposed district; or (b) more than 50% of the property owners in the proposed district; or (c) more than 50% of the total projected assessments for property within the proposed district. Aggregating the protests received resulted in the following percentages: (a) 12.87% of the total taxable valuation of property within the proposed district; (b) 10.67% of the property owners in the proposed district; (c) 12.27% of the total projected assessments for property within the proposed district. Staff considered all protests received in the above calculations, even those protests not received until after the official protest close date per state code. The sum of all protests received did not reach the 50% protest threshold. Therefore the Resolution before Council for consideration is to establish the Kalispell Downtown Business Improvement District with the boundaries set forth in the petitions and included in the Resolution of Intention 5793. Such consideration is consistent with MCA 7-12-1115: 7-12-1115. Resolution creating or expanding district. When no protests have been delivered to the governing body within 15 days after the date of the first publication of the notice of the passing of the resolution of intention, when a protest shall have been found by the governing body to be insufficient or has been overruled, or when a protest against the extent of the proposed district or proposed expansion of a district has been heard and denied, the governing body has jurisdiction to order the creation or expansion of the district and shall pass a resolution creating or expanding the district in accordance with the resolution of intention. It is the opinion of the City Attorney that because the protests to the BID were insufficient, the City Council, as the governing body, has the jurisdiction, but is not compelled, to order the creation of the District. If it chooses to order the creation of the District, it must do so in accordance with the resolution of intention and the district boundaries therein described. This constraint recognizes that the proposed district boundaries are an integral component of the petitions that were executed and filed with the City. The proposed district assessment for each property owner is calculated by .015 per square foot, plus .0375 of the taxable value of the property. For example, a property with 7,000 square feet of land area with the appraised value of $6,494 would be assessed $105 (7,000 * .015), and $241.76 (6494 * .0375) for a total annual assessment of $346.76. RECOMMENDATION: Approve Resolution 5801, a Resolution creating a Business Improvement District pursuant to the terms of Title 7, Chapter 12, Part 11 of Montana Code Annotated. ATTACHMENTS: • Resolution 5801 • Map showing the prior district boundary, the proposed new boundary, and the property owners who signed petitions in favor and in opposition to the district • KBID Accomplishments Flyer RESOLUTION NO.5801 A RESOLUTION CREATING A BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE TERMS OF TITLE 7 CHAPTER 12 PART 11 OF MONTANA CODE ANNOTATED. WHEREAS, pursuant to Title 7 Chapter 12 Part 11 of Montana Code Annotated, the City of Kalispell is authorized to create business improvement districts; and WHEREAS, the City of Kalispell was presented with petitions signed by the owners of more than 60% of an area of the property proposed to be included in the district, the exterior boundaries of which are shown on the attached Exhibit "A" and which by this reference is made a part hereof; and WHEREAS, the aforementioned petitions request that the City of Kalispell create a business improvement district for up to ten (10) years, pursuant to Section 7-12-1141 MCA; and WHEREAS, on December 19, 2016, upon receiving the petitions, the Kalispell City Council issued Resolution 5793 declaring its intent to create a business improvement district for the city of Kalispell, Montana, to fix a date of a public hearing for January 17, 2017, and to provide for publication and mailing of notice of said hearing; and WHEREAS, the City Clerk caused proper notice of passage of the resolution to be published as provided in MCA 7-1-2121 and by mailing a copy of the notice to every owner of real property within the proposed district listed on the last completed assessment roll for state, county, and school district taxes, at the owner's last -known address, on the same day the notice was first published or posted; and WHEREAS, upon proper notice given and upon the expiration of 15 days pursuant MCA 7-12-1113, the office of City Clerk received a number of written protests within that time period, although in insufficient numbers to reach any of the fifty percent protest threshold requirements that would bar further proceedings as provided in MCA 7-12-1114 and said protests and all other comments were duly considered at the public hearing held January 17, 2017; and WHEREAS, based upon the evidence presented to the City, the purpose of said business improvement district appears to promote the health, safety, prosperity, security and general welfare of the inhabitants of the City of Kalispell and the proposed district, and appears to be of special benefit to the property within the boundaries of said proposed district as shown on the attached Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The Kalispell City Council hereby finds that the proposed business improvement district serves to promote the health, safety, prosperity, security and general welfare of the inhabitants of the City of Kalispell and the proposed district, and is of special benefit to the property within the boundaries of said proposed district as shown on the attached Exhibit "A". SECTION 2. The Kalispell City Council hereby creates a business improvement district pursuant to Title 7 Chapter 12 Part 11, Montana Code Annotated the term of which shall be ten (10) years and which shall be known as the "Kalispell Downtown Business Improvement District." SECTION 2. Said business improvement district shall have boundaries as shown on the attached Exhibit "A" which by this reference is made a part hereof; provided, however, that all property classified as a commercial improvement within the district will be included in the district. All publicly owned property and owner - occupied single family residential property within the district are specifically excluded from the business improvement district and are exempt from its assessments. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 6TH DAY OF FEBRUARY, 2017. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk EXHIBIT "A" Legal Description Downtown Kalispell Proposed Business Improvement District Commencing at the intersection of Main and Center Street which is the True Point of Beginning; thence westerly along the centerline of West Center St, 1,112 feet, more or less, to the center line of the intersection of West Center St and 3rd Ave W, thence southerly along 3rd Ave W, 1,107 feet, more or less, passing between lots 32 and 33, lots 48 and 49, lots 52 and 53, to the centerline of the intersection of 3rd Ave West and 3rd Street West; thence easterly one half block along 3rd Street West to the alley of block 68, Kalispell Original, thence southerly through said alley to 4th Street West; thence easterly, 370 feet, more or less, along 4th Street West to the alley of block 74, Kalispell Original; thence southerly through said alley to 5th Street West; thence easterly, 388 feet, more or less, along 5th Street West to the alley of block 86, Kalispell Original; thence southerly through the alleys of blocks 86, 95, and 106, 1,073 feet, more or less to the centerline of 8th Street West; thence easterly along 8th Street West, 411 feet, more or less, crossing Main Street to 8th Street East continuing to the alley of block 105, Kalispell Original; thence northerly through the alleys of blocks 105, 96, and 85, 1,073 feet, more or less, to the centerline of 5th Street East; thence easterly, 388 feet, more or less, along 5th Street East, to the alley of block 77, Kalispell Original; thence northerly through said alley to the centerline of 4th Street East; then easterly one half block to the intersection of 4th Street East and 2nd Avenue East; thence northerly along 2nd Avenue East between blocks 63 and 64 to the intersection of 2nd Avenue East and 3rd Street East; thence easterly, 372 feet, more or less to the intersection of 3rd Street East and 3rd Avenue East; thence northerly along 3rd Avenue East, 2,044 feet, more or less, between blocks 58 and 59, following the east most boundary of Linderman School, between blocks 38 and 39, along the east most boundary of Manion Square and then Kalispell Market Place Phase 2, to the intersection of 3rd Avenue East and East Montana Street; thence westerly along East Montana Street, 747 feet, more or less to the centerline of 1st Ave East North; thence northerly, 354 feet, more or less, between blocks 16 and 17, to the intersection of East Idaho Street and 1st Avenue East North; thence westerly, 945 feet, more or less, along East Idaho Street, crossing Main Street, to West Idaho Street, continuing to the intersection of West Idaho Street and the alley of block 14, Kalispell Original, between 1st Avenue West North and 2nd Ave West North; thence southerly down said alley of block 14, 354 feet, more or less, to the centerline of West Montana Street; thence easterly one half block to the intersection of 1st Avenue West North and West Montana Street; thence southerly along 1st Avenue West North, between blocks 26 and 27, 328 feet, more or less, to the south west corner of lot 13 of block 26; thence easterly along the southern boundary of lot 26 to the centerline of Main Street; thence southerly along Main Street, 578 feet, more or less to the intersection of Main Street and Center Street to the True Point of Beginning. KA .18g, BUSINESS LISP IMPROVEMENT DISTRICT IMPORTANT Dear Property Owner, Downtown Kalispell is on a roll! We are seeing positive momentum in occupancy, lease rates, DOWNTOWNremodeling, new business, events and foot traffic. With recently awarded federal funding for major projects that will lead to renewal and redevelopment, historic downtown Kalispell is poised to RUISPELL succeed more than ever as a destination for business and entertainment. Our downtown offers a special place for those who value history, character, charm and community. Join Us in Support of Downtown Kalispell! The Kalispell Business Improvement District (KBID) was established to promote the success of downtown Kalispell. The KBID is funded and directed by the property owners of downtown Kalispell. As a board of volunteer downtown property owners, we do our very best to allocate these funds to activities and programs that make a real difference. These efforts include beautification, downtown events, marketing, social media, facade improvements and working with the City of Kalispell and other organizations to make sure property owners are represented. The KBID has had a significant positive impact on the progress and current revitalization of downtown Kalispell. We need your signature to renew the Kalispell Business Improvement District. The KBID is up for renewal, which requires signatures from property owners representing 60% of the land area of the proposed district. We are proposing an expanded district to include qqx adjacent businesses to more fully represent what constitutes "Downtown Kalispell". With recent reappraisals, most property owners in downtown Kalispell have seen a significant decrease in their property taxes. KBID assessments have also decreased and the district needs to expand its footprint to keep existing programs in place and add new programs. Please read, sign and return 11 the attached petition by mail today! Sincerely Yours, The KBID Board Jon Fetveit (Chairman) Downtown Property Owner Tim Price PURE Fitness, Flathead Health & Fitness Marshall Noice Noice Studio & Gallery Debbie Snyder Flowers by Hansen John Hinchey Downtown Property Owner Eric Robbins Aluma Glass Lee Kozlowski Digital Planet KalispellThe Business Improvement District: O 1) ems, 04 Supports Attracts /AN s-9 Promotes Coordinates Without your signature downtown will lose these benefits —Sign Today! www.DowntownKaLispell.com • 406.253.6923 • Pam@DowntownKalispell.com KBID Accomplishments s RMw Worked to secure $90,000 of State and Federal grants to be spent downtown. aFacilitated $190,000 + in public and private investment on facade improvements downtown. Played a critical role in the CORE Project & support of the $10 million Tiger grant. Developed and implemented with the City of Kalispell 29 directional street signs. Refurbished 43 sidewalk benches. 9 qJ Developed, printed and distributed 30,000 walking tour brochures. , Worked effectively with City government regarding sensible transportation issues, FER long term downtown planning, special events & parking. —13 6W l Advocated for developer friendly policies to encourage downtown growth. 2015-2016 Budget $149,000 14% PROJECTS/ DEVELOPMENT 1 1 % PROMOTION/ EVENTS 16% CLEANING/ FLOWERS 4% CITY ADMIN FEE 20% FACADE IMPROVEMENT 24% STAFFING/ k OFFICE 4%TOURISM GUIDES F 6% WEBSITE/ ONLINE MEDIA We didn't consider any other location than downtown Kalispell to start Kalispell Brewing Company. By locating on Main Street and resurrecting a vacant 100 year old building, we knew that not only did the building's unique character fit perfectly with our vision for a craft brewery, but that also we'd give our community a place to gather over good beer. What we didn't realize was how much our community would embrace the brewery, how quickly we would become a mainstay, and how successful our endeavor has become. We were wholly welcomed Into downtown by our local businesses. We supportthe Kalispell Business Improvement District in Its efforts to promote downtown and we hope to be a part of the BID. — Maggie Dougherty & Cole Schneider l( KALISPELL GREAT FALLS MISSOULA �[ HELENA BOZEMAN * BILLINGS LIVINGSTO "Kalispell has demonstrated to us that it yearns for the downtown to be a shopping destination. We are extremely happy with i� the overwhelming support of the Kalispell community for our downtown location. It will be TheToggery's permanent home:' - Irek Stephens www.DowntownKaLispeLL.com - 406.253.6923 • Pam@ DowntownKatispeLL.com