07-19-17 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
JULY 19, 2017-4 P.M.
CITY HALL— FIRST FLOOR CONFERENCE ROOM
MEMBERS IN ATTENDANCE OTHERS IN ATTENDANCE
Chairman Marc Rold Doug Russell, City Manager
Jeff Zauner Katharine Thompson, Asst. Director of Comm. & Econ. Dev.
Shannon Freix
Matt Venturini
Chairman Rold called the meeting to order and welcomed the committee and city staff.
PUBLIC COMMENT
No public comment.
APPROVAL OF MEETING SUMMARY
Mr. Zauner moved, Mr. Venturini seconded, passed unanimously.
MANAGEMENT OF CITY AIRPORT
City Manager, Doug Russell, provided an update on the July 10, 2017 City Council/airport user group
work session. The user group is exploring the option to take over management of the Kalispell City
Airport, removing the City of Kalispell from fiscal liability in terms of existing contracts and long-term
maintenance of the airport that would affect the City's general fund. Currently, there are
approximately 8-9 active lease contracts, those contract holders will consider novation of existing
leases, cancelling those contracts with the City. An airport user group/association would be formed
and contracts related to the airport would be entered into with the user group. The user group would
retain revenue generated from lease contracts, gas tax, and the Hilton Garden Inn lease. The group
would invest immediately in the replacement of taxiways and expand the west taxiway by 4 feet
providing a better turning radius and better stability — these projects would be TIF eligible. Additional
new improvements are being considered by the airport users group such as added pavement, more
parking space, additional tie -down space, a prep area for planes, additional run up area, new hangars
and new business pads built using private funds. $600-700K in user group funds would be used for
improvements and approximately $1M in South Kalispell/Airport TIF funds would be used for eligible
improvements. Mr. Russell explained that his agreement would alleviate future liability and
maintenance for the City. He will meet again with user group on July 25, 2017 to further work on
details of the potential agreement with the possibility of the users group taking over management of
the airport in one to one and half months with improvements being made to the property by the end
of the calendar year. It was noted that anticipated eligible improvements using TIF funding would
need to be done prior to TIF sunset and that the user group would likely contract with Red Eagle to
manage the airport. A recording of the July 10, 2017 work session can be heard at the following
webpage: http://media.avcaptureall.com/session.html?sessionid=738a8eOf-b466-4f7c-86fe-
54fa06f225aa&prefilter=826,5879
18TH STREET & AIRPORT ROAD INTERSECTION
Ms. Thompson provided "very rough" numbers regarding improvements to 181h Street and Airport Road
intersection previously discussed during last month's meeting.
The realignment of 181h Street and Airport Road could be roughly $100,000 including purchase of right of way,
though there may be stormwater infrastructure issues. Another modification may be to have I" Avenue West
cut across to Airport Road, a possible expense of roughly $200,000. In view of increased development in the
area, the new elementary school and new multi -family housing modification to these areas should be
examined. The 1994 Montana Department of Transportation (MDT) Environmental Impact Statement
identifies not only 181h Street modifications but also the 131h Street and Highway 93 intersection needing
improvement, possibly a traffic light. MDT would need to consider and approve this improvement - this
intersection is within the South Kalispell / Airport TIF District.
Mr. Rold stated that the most straightforward solution would be the alignment of 18`h Street and I" Avenue
West, cutting across the City property. Mr. Zauner advised that there might be issues with infrastructure pipes
and utilities located on the City property suggested for use in the improvement. Mr. Zauner brought up the
relocation of some of City shops buildings to the waste water treatment plant property followed by the
expansion of parking for Legends Stadium. Ms. Freix inquired as to whether the City would need all of the
space currently utilized, Mr. Russell explained that current buildings are fully utilized with the need for more
space.
Mr. Russell suggested bringing Public Works Director Susie Turner to next month's meeting to discuss Public
Works issues and suggestions association with the proposed improvements.
The Board asked city staff to invite Ms. Turner to the next meeting.
BROWNFIELDS PROGRAM UPDATES
Ms. Thompson explained that the Brownfields Assessment grant Quality Assurance Project Plan (QAPP) is
complete, allowing the city to move forward with Phase I and Phase II environmental assessments under the
grant. The City is waiting to hear when CHS will be ready to move forward with Phase II assessments —
depending on the CHS timeline, the city is looking to have those assessments completed by the end of the
calendar year.
TIF &TEDD UPDATES
Senior Planner will give an update of the Kalispell Downtown Plan at the August meeting. A draft of the plan
can be viewed on the following webpage:
http://kalispell.com/community economic development/documents/CitvofKalispell-TheDowntownPlan.pdf
TIGER/KALISPELL CORE & RAIL REDEVELOPMENT PROJECT UPDATE
Ms. Thompson shared that the Finding of No Significant Impact (FONSI) was issued to the City on July 18, 2017
and the City will look for obligation of funds in on or before July 31, 2017. Following obligation of funds LHC,
Inc. will be given notice to proceed with construction of Glacier Rail Park, scheduled to begin the week of
August 21, 2017 with completion in August 2018. The City and Flathead County Economic Development
Authority (FCEDA) will host a Glacier Rail Park groundbreaking ceremony on August 22, 2017. Mr. Russell
discussed the negotiation with CHS for relocation as well as rail line property acquisition discussions with BNSF
and defined rail abandonment and rail banking for the Board.
NEXT SCHEDULED MEETING
Chairman Rold reminded the Board that the next meeting is scheduled for Wednesday, August 161" at 4 p.m.
Chairman Rold adjourned the meeting.