H1. Reso 5844 - Husky Stail ,,�3;�J�I� ,�'rr n '� �•M��'"�^:_ i
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
_ J Telephone (406) 758-7701 Fax - (406) 758-7758
MONTANA
MEMORANDUM
To: Doug Russell, City ManagerD�L
From: Katharine Thompson, Assistant Director of Community & Economic
Development
Re: Husky Partners, LLC West Side — Core Area Tax Increment Financing
District Grant Funding Second Request
Meeting Date: November 20, 2017
BACKGROUND: An initial request from Husky Partners, LLC for West Side Urban Renewal —
Core Area Tax Increment Financing (TIF) District grant funding was approved by City Council
on October 16, 2017 (materials from that meeting are attached). Husky Partners, LLC has
submitted an additional request for $9,917.59 to bring the total West Side Urban Renewal — Core
Area TIF request to $86,780.19.
The Urban Renewal Agency recommends that Council approve the Husky Partners, LLC second
request for West Side — Core Area TIF funding; bringing the total amount to $86,780.19
according to the following, changes in red:
Eligible Uses/ Costs
Cost
First/
Updated
Second/
TIF Eligibility
Approved
Cost
Current
Request
Request
Site Demolition
$2,817.25
$1,408.62
$3,295.81
$1,647.91
50% cost site
demo/prep/cleanup
Site Preparation
$82,512.03
$41,256.02
SAME
$41,256.02
50% cost site
demo/prep/cleanup
Street
$17,423.93
$8,71 1.97
$19,349.93
$9,674.97
50% cost shared
Parking/restore/repair
utilities
City Curb/gutter/street
$18.971.98
$9,485.99
$36.402.59
$18,201.29
50% cost shared
storm/ street lights
utilities
Sidewalk
$11,306.97
$5,000.00
SAME
$5,000.00
Max sidewalk
placement
Fiber extension
$7,500.00
$3,750.00
SAME
$3,750.00
50% cost shared
utilities
Street trees
$4,500.00
$2,250.00
SAME
$2,250.00
50% cost street tree
program
Geotechnical
$10,000.00
$5,000.00
SAME
$5,000.00
Max technical
assistance
assistance
Total Eligible Costs
$155,032.16
$76,862.60
$174,867.33
$86,780.19
Increase: $9,917.59
TIF grants are made on a reimbursement basis. As with the first request, 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 $86,780.19. 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.
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 second request for West Side — Core Area TIF funding; bringing the total
amount to $86,780.19. 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 $86,780.19, a
$9,917.59 increase to the original request. 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.
ATTACHMENTS: Resolution 5844
Agenda materials from the meeting of October 16, 2017
RESOLUTION NO. 5844
A RESOLUTION APPROVING THE KALISPELL URBAN RENEWAL AGENCY
RECOMMENDATION TO GRANT ADDITIONAL REIMBURSEMENT OF CERTAIN TAX
INCREMENT ELIGIBLE COSTS TO HUSKY PARTNERS, LLC IN THE AMOUNT OF UP
TO $9,917.59 FROM WEST SIDE — CORE AREA TAX INCREMENT FUNDS TO ASSIST
THE REDEVELOPMENT OF BLIGHTED PROPERTY AT 1110 HUSKY STREET,
KALISPELL, MONTANA.
WHEREAS, on October 17, 2017, based upon the recommendation of the Kalispell Urban Renewal
Agency (URA), the Kalispell City Council approved Resolution 5843 to assist
applicant, Husky Partners, LLC, the owner of subject property located at 1110 Husky
Street, Kalispell, Montana, with funding derived from the West Side — Core Area tax
increment district in the amount of $76,862.60 to assist in the redevelopment project;
and
WHEREAS, the subject 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 as proposed in the urban renewal
plan and that otherwise meets multiple Tax Increment Financing eligibility criteria;
and
WHEREAS, the (URA) has since made the recommendation, based upon the application of Husky
Partners, LLC, that infrastructure improvements in the amount of $9,917.59 is also
eligible for reimbursement from West Side — Core Area tax increment funds and should
be considered to assist in this redevelopment project.
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 an additional
$9,917.59 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 20TH DAY OF NOVEMBER 2017.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk