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
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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
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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