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02-10-16 Urban Renewal Agency MinutesCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 Meeting Summary URBAN RENEWAL AGENCY BOARD FEBRUARY 10, 2016 — 4 P.M. CITY HALL— FIRST FLOOR CONFERENCE ROOM MEMBERS IN ATTENDANCE OTHERS IN ATTENDANCE Chairman Marc Rold Vice Chairman Murphy McMahon David Girardot Jeff Zauner Dave Hoerner, Red Eagle Aviation Scott Richardson, Airport Advisory Board Tom Jentz, Kalispell Planning Director Katharine Thompson, Community Development Manager Jarod Nygren, Kalispell Senior Planner Krista Lammers, Community Development Department Meeting was called to order at 4:00 p.m. by Chairman Rold. He welcomed the committee and public attendees, both members of the public introduced themselves. Hoerner stated that he would share information later in the meeting; Richardson expressed concerns about facts in the airport portion of document, specifically options. He stated that the FAA will not fund the present airport configuration and that the Airport Advisory Board will be working in the following 30 days to present options to the City Manager, both positive and negative, regarding each option. Rold expressed appreciation for the information from both Richardson and Hoerner. Rold asked Jentz for clarification regarding the FAA funding noted in the report. Jentz explained that in the airport's current configuration it cannot receive FAA funding as suggested in Option 3, the airport would have to make improvements before consideration to attain a B2 status. CTA approached the FAA to discuss this option but were told by the FAA that this discussion would need to be between Kalispell staff and officials and the FAA rather than with CTA. Following these remarks, City Manager Doug Russell contacted the FAA; the FAA confirmed that Kalispell could go through the funding application process again though politically this may not be an option due to the 2013 referendum vote. Jentz noted that the Planning Board had similar concerns, that the FAA option would require the City to use taxpayer dollars to make improvements to the airport before the airport could even be considered for FAA funding. Additionally, we do not know what the wait time for FAA funding may be at this point. He reminded the URA that the Planning Board is looking at the South Kalispell Urban Renewal Plan in its entirety whereas the URA Board is looking primarily at the tax increment financing district (TIF) in the area, specifically whether TIF funds might be used in the closure of airport or for other projects in the South Kalispell area. Mr. Richardson asserted that another option that should have been addressed in CTA's report was that the referendum holds for 2 years. Meaning City Council could revote and propose the same ordinance again. Richardson clarified he was not promoting this action but that it is an option. He also talked about the airport authority possibly shifting to Glacier International Airport. He stated another airport authority could be started at the city airport. Richardson cited that the Peccia airport study was an excellent study and that the current CTA plan goes back to the Stelling study - he is concerned that at current, no one is looking "outside the box' for answers and solutions. He stressed that the airport is a Kalispell landmark and very import to the south part of town — that it is significant. Richardson also reminded meeting attendees that Red Eagle has a huge repository of information about the airport and that CTA should contact them. Girardot clarified that TIF expenditures would be required for Option 2 but not for Option 1 or 3. He asked if a study on takeoffs and landings had ever been done and how many employees the airport employed. Mr. Hoerner stated that the number of employees fluctuates but that there were approximately 9 employees, three instructors. He explained that Red Eagle has held events to illustrate how the airport supports the local economy and that he has regular interest from people wanting to build more hangars and open businesses at the airport. He explained that the uncertainty surrounding the airport has put off potential businesses and he emphasized there is a lot of interest in airport investment. Rold asked Hoerner to bring list of people interested in t-hangars and opening airport businesses so that the Board could be informed of who they are and what they might plan to do if provided the opportunity. Girardot explained that the report's financial projections do not need depreciation, that they only add complexity to an already complex issue. He expressed concern that this report needs to show "real world", viable projections, that if the airport continues into the next 5 years that this would result in well over $1 million as seen in the report. He noted that at this point it is difficult to make a recommendation and that more information may be required and that lease buyout numbers are very difficult to pin down. Finally, he noted that there are options to use taxpayer funding to keep the airport running or to close the airport, but at what cost? At this point the plan does not adequately address those questions. In discussing the plan's projections McMahon asked for removal of depreciation and clarification and hardening of the numbers. Zauner expressed that at this point the URA Board and City Council will need additional information added to the report in order to make an informed decision about the future of the airport and South Kalispell. He'd like to see information on Glacier International Airport's position regarding this plan and the future of the municipal airport. He posed the following questions: What is the cost to the taxpayer? Where will the City get the funding to keep the airport? Where will the City get the money to close the airport? How much will these options truly cost? Jentz explained that the costs initially would be about $200,000 for the next 5 years, $1 million dollars, to keep the airport going and beyond that there would be required ongoing maintenance costs. Getting hard numbers for closing the airport is extremely difficult due to many and various lease types and rates, acquiring those leases, demolition at the site and removing the asphalt. The consultant gave a qualified estimate of what the lease buyouts would be. Zauner reminded the group that the airport was twice before privatized unsuccessfully and that the majority of City Council had voted to move forward with acceptance of FAA funding in 2013 but that when brought to a public vote the acceptance of the funds was rejected by the public. He clarified that the vote had nothing to do with keeping the airport open or closing it. At this point, until additional information is provided he is not able to recommend this plan to City Council. He asked if Gary Gates of the FAA would considering talking with the board, he also reminded attendees that the URA is a recommending body and that this report has become a TIF issue, focused almost solely on the airport instead of South Kalispell as a whole. Jentz suggested council could adopt this plan as is, give the community 6-12 months' notice for a private entity to take over, date specific. This action would give the public notice and opportunity, if there are no takers in that time then Council can make the decision about whether to keep the airport open or close it. Chairman Rold reminded the Board that the request for qualifications for a consultant to create this plan encompassed not only the TIF but the whole of South Kalispell. He stressed that it was this board that commissioned this plan and that it was the Board's obligation to follow up on all questions, concerns and suggestions made to the consultant in order to provide a clear picture to the public and to City Council in order to make the best informed decisions possible for the community. Jentz following by affirming that the URA must take the plan, affirm that it adequately summarizes options for the airport and south Kalispell and then assist, with TIF funding for capital expenditures only, based on Council's decisions. Rold and Jentz will go back to CTA with the questions, comments and concerns raised during this meeting and reminded the Board that they will have the opportunity to discuss these changes directly with CTA during the February 22nd meeting. Chairman Rold adjourned the meeting at 5:05 p.m.