Loading...
I5. Reso 5843 - Husky TIF Granty+ City of Kalispell i p Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7701 Fax - (406) 758-7758 MONTA.NA MEMORANDUM To: Doug Russell, City Manager -D(L From: Katharine Thompson, Assistant Director of Community & Economic Development Re: Husky Partners, LLC West Side — Core Area Tax Increment Financing District Grant Funding Request Meeting Date: October 16, 2017 BACKGROUND: Husky Partners, LLC submitted a West Side Urban Renewal — Core Area Tax Increment Financing (TIF) District grant funding request. The company is developing a three-story, 24-unit apartment project at 1110 Husky Street. Multi -family housing is a part of the West Side — Core Area TIF Plan and addresses a need for rental housing in the area. This development is a $2.2 Million project located within the West Side Urban Renewal boundary and meets multiple TIF eligibility criteria. With consideration of substantial private investment, the project meets the 1:9 ratio recommended in City TIF policy. The Urban Renewal Agency recommends that Council approve the Husky Partners, LLC request for West Side — Core Area TIF funding in the amount of $76,862.60 according to the following: Eligible Uses/Costs Grant Request Site Demolition: $2,817.25 $1,408.62 50% cost Site Demo/Prep/Cleanup Site Preparation: $82,512.03 $41,256.02 50% cost Site Demo/Prep/Cleanup Street Parking/restore/repair: $17,423.93 $8,711.97 50% cost Shared Utilities City Curb/Gutter: $18,971.98 $9,485.99 50% cost Shared Utilities Sidewalk: $11,306.97 $5,000.00 max Sidewalk Placement Fiber Extension: $7,500.00 $3,750.00 50% cost per Shared Utilities Street Trees: $4,500.00 $2,250.00 50% cost per Street Tree Prog. Geotechnical Technical Asst: $10,000.00 $5,000.00 max Technical Assistance Total Eligible Costs: $155,032.16 $76,862.60 Total Grant Request The project will provide housing for a large number of people adjacent to the Kalispell Core Area. Additionally, it will provide infrastructure improvements, improve pedestrian connections and should increase property values within the area. TIF grants are made on a reimbursement basis. The Urban Renewal Agency made no recommendation on a schedule of payment for the grant, leaving this to the discretion of City Council. Due to the upcoming bonding expectation, staff recommends limiting the reimbursement to the annual amount of tax increment contributed to the West Side TIF fund from this project. Under the proposed reimbursement plan, annual reimbursements would be made from the annual increment revenues from this project until the total amount of reimbursement equals $76,862.60. In the event increment values decrease in future years, the reimbursement will be subject to the first priority of the City to cover debt service for bonds related to previously approved projects and the bonds associated with obligations of the TIGER grant funded project. Due to concerns of the construction season, site preparation work is currently in progress. The applicant has been advised, as outlined in the West Side Urban Renewal — Core Area TIF District Policies, Procedures and Programs at page 5, "IMPORTANT: Costs to be paid with TIF monies may not be incurred by the applicant prior to funding approval and the satisfaction of any conditions of such approval unless specific approval has been granted by City Council. Any expenditure is solely at the risk of the applicant if the project is not approved." FISCAL IMPACT: Funding for this project will come from property taxes generated by this project and is subject to the City being able to cover expenses related to previously committed obligations. RECOMMENDATION: The Urban Renewal Agency recommends that Council approve the Husky Partners, LLC request for West Side — Core Area TIF funding in the amount of $76,862.60. This reimbursement shall be on an annual reimbursement schedule limited to the annual contribution of the project to the West Side TIF District Fund. This reimbursement shall continue annually until it reaches the total amount of $76,862.60. Should increment values decrease in future years, the reimbursement will also be dependent upon the City's ability to cover debt service for bonds related to previously approved projects and the bonds associated with obligations of the TIGER grant funded project. ATTACHED: Resolution 5843 Partial TIF Grant application Architectural Review Documents TIF Application Qualifying Criteria RESOLUTION NO.5843 A RESOLUTION APPROVING THE KALISPELL URBAN RENEWAL AGENCY RECOMMENDATION TO GRANT REIMBURSEMENT OF CERTAIN TAX INCREMENT ELIGIBLE COSTS TO HUSKY PARTNERS, LLC IN THE AMOUNT OF UP TO $76,862.60 FROM WEST SIDE — CORE AREA TAX INCREMENT FUNDS TO ASSIST THE REDEVELOPMENT OF BLIGHTED PROPERTY AT 1110 HUSKY STREET, KALISPELL, MONTANA. WHEREAS, the Kalispell Urban Renewal Agency (URA) is recommending, based upon the application of Husky Partners, LLC, owner of the subject property located at I I10 Husky Street, Kalispell, Montana, that up to $76,862.60 of West Side — Core Area tax increment funds be considered to assist in this redevelopment project consisting of a three-story, 24-unit apartment project; and WHEREAS, the property development is a $2.2 Million project located within the West Side Urban Renewal District boundary that consists of multi -family housing that addresses a need for rental housing in the area and otherwise meets multiple Tax Increment Financing eligibility criteria; and WHEREAS, the Kalispell City Council finds that the subject property is blighted, is located within the West Side — Core Area Urban Renewal TIF District and is eligible for assistance from the increment funds. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION 1. The City Manager is hereby authorized to commit the use of up to $76,862.60 of West Side — Core Area tax increment funds for reimbursing Husky Partners, LLC for tax increment eligible costs expended by them on the development project described in the application that is currently before the Council. SECTION 2. The City Manager shall make annual reimbursement payments to Husky Partners, LLC only from tax increment revenues generated by the project at 1110 Husky Street, Kalispell Montana and shall only make such payments from the West Side — Core Area increment funds remaining after the City has covered debt service for bonds related to previously approved projects and bonds associated with obligations of any TIGER grant funded project. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 16TH DAY OF OCTOBER, 2017. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk City of Kalispell West Side Urban Renewal District -Core Area Tax Increment Financing (TIF) Application (Application must be completed in full with all required documents attached) APPLICANT INFORMATION Name of Applicant: SLice Mailing Address: p / Phone number:,i_ - Z0- �?�P� E-Mail: hjf6k,,pNtA1jt&�yt r , CawG PROJECT INFORMATION Business Name: _: 4kc Business/Project Physical Address: 1 1 (0 hr 60Mror KkJ!tMQ ' Ktr- Business Insurance Co: rV_'P Tax ID # 8 2 - t 516 355- Business Type (Corp, LLC, Partnership, etc.): LC, Date business was formed: (,/ 1 f Zv t-7 Date of property acquisition:_ q &tJ W rl Shareholders Name Address % Owned -Jd'vtd Ec k evb (C R !'7 n!E a"A � cyy u -. 4 ns 9?4Al3b'J 11402 AJ6 ZCqdA4,C1 ca Z u *A current financial statement for each shareholder involved in the project may be required as well as documentation of financial capacity. (This information ;gill be lent confideili;dl, subicct to challenge in a court of law.) r Description of business (product or service provided etc.): _ K*#t- ELp!EE 4e1_ fir t*, Annual amount of property taxes Current on all property taxes: Yes �No If no, explain circumstances: Employment: Number of retained positions: ; Full Time: Part Time: 14/4- Number of new positions to be created: ; Full Time: Part Time: Average wage per hour $ Attachment: Attach an Excel spreadsheet briefly listing and describing the job classifications with the average wage noted by each job classification. Provide a schedule of when the positions are anticipated to be created and filled. NA Provide a summary of the fringe benefits provided to employees: , q IA._ . Project Architectural Firm: TA-U_ oLk- D UW OUZ-4 !yI t 6gc*ft-ej� ,2C. Contact: fD6&!t:9 c _AM-QL4! Address: n'Y `t 3 SB 14r Phone:_ 799r°-bw E-mail: -zb 6AA.c . Ca Project Contractor: k C Address: ��1`� `'� �-f_4,$K4A— Phone: E-mail:-M(CJ44C i kc. -W'f- GA� Has such contractor or architect ever failed to qualify as a responsible bidder, refused to enter into a contract after an award has been made, or failed to complete a construction or development contract within the last 10 years? No Yes If yes, explain: STATEMENT OF QUALIFICATION AND FINANCIAL RESPONSIBILITY Has the applicant or any individual or entity affiliated with the development of this project been adjudged bankrupt, either voluntarily or involuntarily, within the past ten years? No ->/, Yes if yes, list date, place, and under what name: Has the applicant or any individual or entity affiliated with the development of this project been indicted for or convicted of any felony within the past 10 years? No Yes if yes, list the date, charge, place, court and action taken for each case: PROJECT EXPENSE WORKSHEET Proposed project description: PWVL aP AAfbK.t wt _ t ktgQ- oc" Lp-30 4T +loci kn-b Z4 o lit, 1 1�.9T3 Proposed Construction/Rehabilitation Costs: �-,ff kr"c9e+W4> (If additional room is needed, provide an Excel sheet of expenses) Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Explanation: Cost: $ Architectural Design/Supervision: Cost: $ Permitting Fees: Cost: $ Additional Fees: Cost: $ Additional Fees: Cost: $ Total Project Expense: $ Attachment: Attach bids for each proposed project expense Proposed project schedule with start date and completion date: r.'W- r4Tr-;,�--yep CI TIF FUNDING REQUESTED (Refer to West Side Urban Renewal — Core Area TIF District Policies for more information) Public Impact Categories: Shared Utilities Extension: Eligible for a matching grant up to 50% of the project cost, not to exceed $50,000. X Sidewalk Improvement: Eligible for 50% grant match. 1� Tree Placement/Replacement: Up to 100% grant. Private Investment Categories: Private investment grant categories, in aggregate, may not exceed 10% of the total project cost. Private investment loan categories, in aggregate, may not exceed ,$150,000. Loan Programs: Facade improvement: Eligible for loan dollars not to exceed $50,000 Rehabilitation/Code Compliance: Eligible for loan dollars not to exceed $50,000 Grant Programs: Historic Facade Improvement: Eligible for a matching grant up to 50% of project cost not to exceed $50,000 Site Preparation and Demolition: Eligible for a matching grant up to 50% of the project cost not to exceed $50,000. (Additional grant or loan dollars may be available through the Kalispell Brownfields Program) Technical Assistance: Eligible for grant funding not to exceed $5,000 CERTIFICATION I (we), �� 0�= (please print), certify that the statements and estimates within this application as well as any and all documentation submitted as attachments to this application under separate cover are true and correct to the best of my (our) knowledge and belief. Name:" Signature: Title: Name: Signature: Title: Date: 41• I ! ` I I Date: Return to: City of Kalispell Community & Economic Development Department 201 I5t Avenue East, Kalispell, MT 59901 406-758-7713 or 406-758-7738 kthompson rc,kalispell.com or klammersAkalispell.com Required attachments: • Excel spreadsheet briefly listing and describing the job classifications with the average wage noted by each job classification. Provide a schedule of when the positions are anticipated to be created and filled. • Bids for each proposed project expense listed on page 3 • Letters of commitment or documentation from any project lender commitment listed on page 4. 2 2 m I H Z W H Q a a H W W w F U) I�jc o 0 a Cl) z w FM 2 a a I�w LU LU rW Gr1l�E�;1',w'LOOI007DD7D7F3iINl ®r, ------------ I I I I I I I : p I y _ I fit 1TIV, � a a 8 �� MUSKY STREET APARTMENTS g w\� HUSKY PARTNERS, LLC p54 SS9®�1J65fL°95YB'8�t�4'�l KAL SPELL. MONTAMA , U lbY':�o _ _ r � NEW nano HUM W8n0 ®®E 0000�0 BUBO a00ago ea�ee� n.9 Y a o1. St$ i HUSKY STREET APARTMENTS 5�4i HUSKY PARTNERS, ISLSC � 1110P3YDSBS°Y STREET Husky Partners, LLC 9-15-2017 TIF Application Qualifying Criteria: 1. Geographic location: This project, located at 1110 Husky Street, is within the block that fronts two if the listed priority arterials— Meridian Road and Idaho Street. 2. Tax generation: This project will result in a substantial increase in property value with its corresponding increase in tax. At final buildout, we anticipate the project valuation to be over $3m. 3. Relationship of public and private investment: This project, per the attached financial summary, constitutes a substantial private investment. The requested public dollars is less than the listed 1:9 ratio. 4. .lob creation: This project will not directly create jobs. However, employee housing is a significant issue with employers in the area and this project will have a direct positive effect. 5. Investment: This project will be an attractive addition to the area, bring people more into the City core and promote additional development nearby through added population and activity. 6. Improvement of public services: The primary public service improvements to this area will be the street improvements to Glenwood and additional public sidewalks improving walkability in the area. This will assist tenants in using the many adjacent businesses. 7. Unique Opportunities: This project is much needed as housing is a known community need. Planned amenities for the residents will also be a benefit, 8. Urban renewal goals: This project will further plan goals such as improving connections to the serving neighborhood business, offload uncontrolled fill on the site to allow for redevelopment, remove a vacant lot from the an established Kalispell neighborhood, provide off-street parking in excess of minimum zoning allowances, provide landscaping and hard surfacing reducing windblown air contaminants from the undeveloped site, and improve the neighborhood architecture. 9. Environmental impacts: Pedestrian access and safety will be improved with the new sidewalks planned for the development. Off street parking in excess of zoning requirements support minimizing parking impacts on the surrounding neighborhood. The attractive project in terms of landscaping and building architecture will have a positive influence on the neighborhood. Offloading uncontrolled fill on the site and redeveloping the vacant lot into hard and landscaped surfaces will minimize littering in the area and reduce windblown contaminants. . 10. Project Financing: See attached lender support letter for approved financing. TIF funds are a major factor in moving ahead with this project. 11. Project Feasibility: During due diligence, the partnership interviewed 5 of the area property management companies. Over and over, demand for housing was confirmed and frustration by tenants relocating to the area for work not being able to find suitable housing. We also used these interviews to establish projected market rates and the proposed TIF funding will assist us in achieving these goals. 12. Applicants ability to perform: Two members of this partnership are or have been owners in a 120 unit and 240 unit apartment project in Washington. The architect has extensive design experience in multi -family housing. We have hired a local reputable contractor in Hammerquist Casalegno. We feel a strong team has been assembled to make this project happen. 13. Timely completion: Hammerquist Casalegno has provided the attached schedule. The have a proven track record of on -time performance.