H2. Reso 5867 - ROI - Glacier Rail Park TEDD Boundary AdjustmentPLANNING FOR THE FUTURE
REPORT TO:
FROM:
SUBJECT:
MEETING DATE:
Planning Department
201 1" Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.coni/planning
Doug Russell, City Manager Ix'
Jarod Nygren, Senior Planner
KRD-18-01 — Targeted Economic Development District (TEDD)
boundary amendment Resolution of Intent to hold a public hearing
May 7, 2018
BACKGROUND: On April 4, 2016, the council approved Resolution No. 5757, a resolution of
necessity finding that the Glacier Rail Park Development Plan area is deficient in necessary
infrastructure improvements, that the City lacks sufficient capital to rectify the infrastructure
deficiency of the subject property, thus impeding its ability to achieve economic growth though the
development of value -adding industries, and that infrastructure improvements of the subject area is
necessary for the welfare of the residents. Subsequently, the Council, after a duly noticed public
hearing on April 18, 2016, established the 49-acre TEDD within the larger 104-acre Glacier Rail Park
Development Plan by passing Ordinance 1770. Ordinance 1770 adopted the Glacier Rail Park Plan as
a comprehensive development plan and established the Glacier Rail Park TEDD in the City of
Kalispell. FCEDA would like to amend the current 49-acre TEDD boundary to encompass an
additional 3.38-acres proposed to be annexed into the city.
Section 7-15-4214 states that the local governing body will schedule a public hearing on the matter of
amending an Urban Renewal District. Accordingly, Council needs to adopt a Resolution of Intent to
hold a public hearing on the TEDD boundary amendment request. At the subsequent Kalispell City
Council meeting on May 21, 2018, the Council will hold the public hearing and take public comment
on the proposed amendment.
The Kalispell Planning Board held a duly noticed public hearing April 10, 2018, to consider the
TEDD boundary amendment request. Staff presented staff report KRD-18-01 providing details of the
proposal and evaluation. Staff reported that the proposed boundary amendment was consistent with
the Glacier Rail Park Development Plan.
There being no public testimony, a motion was presented to adopt staff report KRD-18-01 as findings
of fact and recommend to the Kalispell City Council that the TEDD boundary amendment be
approved. Board discussion concluded that the TEDD amendment was appropriate, and the motion
passed unanimously on roll call vote. The Planning Board recommendation is in accordance with state
law. Section 7-15-4213 states that "Prior to the approval of an urban renewal project, the local governing
body shall submit the urban renewal project to the planning commission of the municipality for review
and recommendations as to its conformity with the comprehensive plan or parts thereof for the
development of the municipality as a whole."
Additionally, the Kalispell Urban Renewal Agency held a meeting on April 18, 2018, to consider the
TEDD boundary amendment request. Staff presented staff report KRD-18-01 providing details of the
proposal and evaluation. A motion was presented to approve the proposed boundary amendment.
Discussion concluded that the boundary amendment was appropriate, and the motion passed
unanimously.
RECOMMENDATION: It is recommended that the Kalispell City Council approve Resolution
5867, a resolution setting a public hearing date of May 21, 2018, where the Kalispell City Council
intends to hold a public hearing, consisting of amending the TEDD boundary to include 3.38-acres
described as a tract of land located in Tract 2-A of Certificate of Survey 20637 in the NW4 of Section
8, Township 28N, Range 21W, P.M.M., Flathead County, Montana, more particularly described in
the attached Exhibit "A".
FISCAL EFFECTS: There are no anticipated fiscal impacts at this time.
ALTERNATIVES: Deny the request.
ATTACHMENTS: Resolution 5867
April 10, 2018, Kalispell Planning Board Minutes
Staff Report
Application Materials & Maps
c: Aimee Brunckhorst, Kalispell City Clerk
RESOLUTION NO. 5867
A RESOLUTION OF INTENT AND CALLING A PUBLIC HEARING ON A PROPOSED
MODIFICATION TO THE BOUNDARIES OF THE GLACIER RAIL PARK TARGETED
ECONOMIC DEVELOPMENT DISTRICT [TEDD] AND DIRECTING THE CITY CLERK
TO PUBLISH AND MAIL NOTICE OF THE SAME.
WHEREAS, on April 4, 2016 the City Council approved Resolution No. 5757 with a finding of
necessity for the Glacier Rail Park Development plan; and,
WHEREAS, on April 18, 2016 the City Council passed Ordinance No. 1770 adopting the Glacier
Rail Park TEDD Plan and establishing the boundaries of the 49 acre TEDD; and,
WHEREAS, the Flathead County Economic Development Authority [FCEDA], the owner of
property within the Glacier Rail Park TEDD has petitioned to amend the Glacier Rail
Park TEDD by annexing an additional 3.38 acres it now owns that is contiguous to the
park into the TEDD; and,
WHEREAS, MCA 7-15-4214 which governs Urban Renewal Districts as well as TEDDs, requires
that a local governing body intending to consider an amendment to the boundaries of a
district must first adopt a resolution of intent and hold a public hearing to take public
comment and gather evidence; and
WHEREAS, on April 10, 2018 the Kalispell Planning Board provided opportunity for public
comment on the petition to amend the TEDD boundary and hearing none, considered
Staff Report KRD-18-01. The Planning Board thereafter passed its recommendation
on to the City Council to approve the proposed boundary amendment.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. The City of Kalispell hereby states its intention to consider expanding the
boundaries of the Glacier Rail Park TEDD to include an additional 3.38 acres
owned by FCEDA that is contiguous to the Glacier Rail Park TEDD for all
purposes consistent with the approved Glacier Rail Park TEDD Plan.
SECTION 2. A public hearing is hereby called and shall be held on May 21, 2018, at or after
7:00 p.m. in the council chambers of City Hall on the proposed amendment to
the boundaries of the Glacier Rail Park TEDD. If it is necessary to reschedule
or postpone the public hearing in order to meet the legally required notice
requirements, the City Manager is authorized to reschedule the public hearing
and make such modifications to the notice as may be required.
SECTION 3. The City Clerk is directed to publish and mail the notice of the public hearing
pursuant to statutory requirements in substantially the form attached as Exhibit
A hereto.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 7TH DAY OF MAY, 2018.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
PUBLIC HEARING NOTICE
NOTICE OF A PUBLIC HEARING ON MODIFICATION OF THE
BOUNDARIES OF THE KALISPELL, MONTANA GLACIER RAIL PARK
TARGETED ECONOMIC DEVELOPMENT DISTRICT
NOTICE IS HEREBY GIVEN that the City Council of the City of Kalispell, Montana
(the "City") will meet on May 21, 2018, at or after 7:00 o'clock p.m. in the Council Chambers at City
Hall, 201 First Avenue East, Kalispell, Montana, and shall hold a public hearing to receive evidence
from the public regarding its intent stated in Resolution No. 5867.
Pursuant to Resolution No. 5867 the City Council will consider expanding the boundaries of the
Glacier Rail Park TEDD to include an additional 3.38 acres owned by the Flathead County Economic
Development Agency that is contiguous to the Glacier Rail Park TEDD for all purposes consistent
with the approved Glacier Rail Park TEDD Plan. A map of the proposed modified boundaries is
available for inspection on-line at www.kalispell.com under Mayor and City Council/Upcoming
Agenda or contact the City Clerk at City Hall, telephone (406) 758-7756.
Written comments may be submitted to the City Clerk at the above noticed meeting, or prior
to the meeting either by mail at P.O. Box 1997, Kalispell, MT 59903, by email at
cit c� lerkgkalispell.com or in person at City Hall, 201 First Avenue East.
Aimee Brunckhorst, CMC
City Clerk
Publish: May 13, 2018
May 20, 2018
GLACIER RAIL PARK
REQUEST FOR INITIAL ZONING OF I-2/PUD, UPON ANNEXATION
STAFF REPORT #KA 18-01
REQUEST FOR TARGETED ECONOMIC DEVELOPMENT DISTRICT (TEDD)
BOUNDARY AMENDMENT
STAFF REPORT #KRD-18-01
REQUEST FOR MAJOR SUBDIVISION PRELIMINARY PLAT
STAFF REPORT KPP-18-04
KALISPELL PLANNING DEPARTMENT
March 29, 2018
A report to the Kalispell City Planning Board and the Kalispell City Council regarding a
request to annex 3.38-acres into the city limits with an initial zoning designation of I-
2/PUD upon annexation, an amendment of the Glacier Rail Park TEDD boundary to
include the 3.38-acres, and preliminary plat request for a seven (7)-lot subdivision of
the Glacier Rail Park property. A public hearing has been scheduled before the
Kalispell City Planning Board for April 10, 2018 beginning at 6:00 PM in the Kalispell
City Council Chambers. The planning board will forward a recommendation to the
Kalispell City Council for final action.
BACKGROUND INFORMATION KLJ, on behalf of Flathead County Economic
Development Authority (FCEDA) has submitted three applications associated with the
continued development of the Glacier Rail Park.
• Annexation and Initial Zoning - As part of the development of the rail park
FCEDA has acquired an additional 3.38 acres of land adjacent to their property
to the north. The request would annex the 3.38 acres of land into the city with
an initial zoning designation of I-2/PUD. The area to be annexed is currently in
the county and zoned county I-2 (Heavy Industrial). The annexation request
and initial city zoning classification will be reviewed in accordance with Section
27.03.010(4) of the Kalispell Zoning Ordinance. This property will be annexed
under the provisions of Sections 7-2-4601 through 7-2-4610, M.C.A.,
Annexation by Petition.
• Targeted Economic Development District (TEDD) Amendment - The Glacier Rail
Park has a 49-acre TEDD on the property. The TEDD was created as a
component to the City's overall mission to meet its needs of promoting
economic development, improving area employment opportunities and
expanding the community's tax base. The City of Kalispell utilizes Tax
Increment Financing as part of the overall strategy to provide infrastructure in
support of value -adding industry pursuant to the 2013 Targeted Economic
Development District Act, embodied in 7-15-4279, Montana Code Annotated
(MCA). The TEDD provides the City of Kalispell the ability to employ tax
increment financing as provided in 7-15-4282, MCA for appropriate public
infrastructure projects in support of "value -adding industry or secondary value-
added products or commodities" within the Glacier Rail Park Development Plan
boundary. The request is to amend the TEDD boundary to include the 3.38
acres of land proposed for annexation, as outlined above. The request would
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increase the TEDD to approximately 52.38 acres in size. The 3.38-acre area to
be included in the TEDD is located within the larger 104-acre Glacier Rail Park
Development Plan boundary, thus the amendment was anticipated and is a
logical expansion.
• Major Subdivision Preliminary Plat - The applicant is requesting a major
subdivision of 44-acres into seven (7) rail -served lots and one (1) common area
lot. The Kalispell City Council previously approved a major subdivision
application on the subject property in 2014 for twenty (20) rail -served lots. As
the project has progressed, FCEDA has determined that larger lots are more
marketable than the smaller lots. Due to the fact the preliminary plat layout
was significantly altered and an additional 3.38-acres is being annexed, a new
subdivision application is required. The application request will be reviewed in
accordance with Section 28.2.06 of the Kalispell Subdivision Regulations.
A. Petitioner / Owner: Flathead County Economic Development Authority (FCEDA)
44 2nd Avenue West
Kalispell, MT 59901
B. Location and Legal Description of Properties: The Glacier Rail Park is
generally bound by Whitefish Stage Road to the West, Stillwater River to the
north, BNSF tracks to the east and Oregon Street to the south. The legal
description for the three different actions is as follows:
• The area to be annexed can be described as a tract of land located in Tract
2-A of Certificate of Survey 20637 in the NW4 of Section 8, Township 28N,
Range 21W, P.M.M., Flathead County, Montana, more particularly
described in the attached Exhibit "A".
• The area to be included in the TEDD can be described as a tract of land
located in Tract 2-A of Certificate of Survey 20637 in the NW4 of Section 8,
Township 28N, Range 21W, P.M.M., Flathead County, Montana, more
particularly described in the attached Exhibit "A".
• The property to be subdivided can be described as Tracts 2 and 3 of
Certificate of Survey 19246 and Tracts 4, 5, 6 and 7 of Certificate of Survey
18380 in the NW4 and NW4 NE4 of Section 8, Township 28N, Range 21W,
P.M.M., Flathead County, Montana.
C. Existing Land Use and Zoning: The Glacier Rail Park is currently under
construction and will soon be the home of CHS and Northwest Drywall, which are
relocating from the Core Area of Kalispell. The 3.38-acre portion to be annexed
was previously part of the Klinger Lumber post and pole production business
where fence posts were stored.
The current county zoning on the 3.38-acres is county I-2 (Heavy Industrial). The
Flathead County Zoning Regulations define it as, "A district to provide for
industrial uses to accommodate heavy manufacturing, processing, fabrication,
and assembly of parts or materials. It is also intended that the encroachment of
non -industrial or unspecified commercial uses within the district be prevented."
Permitted uses in this district include a variety of heavy industrial uses, including
a railroad yard. The county's zoning code conditionally permits additional heavy
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industrial uses that tend to deal with handling or manufacture of dangerous or
toxic materials, or produce excessive noise, such as an airport or motor vehicle
race track.
The remainder of the larger Glacier Rail Park is already within city limits and
within an I-2/PUD Zone, further outlined below.
D. Proposed Zoning: The zoning for the Glacier Rail Park is I-2/PUD, which would
be the appropriate zone for the 3.38-acres. The I-2/PUD zoning overlay was
created specifically for Glacier Rail Park by Ordinance 1792. PUD's are intended
to serve as an overlay zoning district that functions in concert with the
underlying zones to provide a comprehensive, integrated development plan,
which will serve to modify the underlying zone and guide future development.
The I-2/PUD Zone on the Rail Park provides standards that are more appropriate
for the industrial rail park. In addition to the standard I-2 Zoning requirements,
outlined below, the PUD overlay addresses the following: 1) Timing of building
permit issuance; 2) Ability to gate the private road; 3) List of permitted uses on
the property; 4) Allowable fence height; 5) Wayfinding signage; 6) Paving
standards; 7) Landscaping standards; and 8) Standard for private roads serving a
subdivision.
The Kalispell Zoning Regulations state that the I-2 zoning district is "intended to
provide areas for heavy industrial uses to accommodate heavy manufacturing,
processing, fabrication and assembling of products or materials. It is also
intended that the encroachment of non -industrial uses within the district be
prevented. This zoning district would typically be restricted to areas designated as
industrial on the Kalispell Growth Policy Future Land Use Map."
E. Size:
The area to be annexed is an zoned I-2/PUD is 3.38-acres.
The TEDD Boundary amendment would include the 3.38-acres being
annexed.
• The subdivision is 44-acres and includes area already in city limits.
F. Adjacent Land Uses:
North: Klinger post and pole production and Glacier Stone
East: A commercial truck repair shop, E. Oregon Street and BNSF right-of-way.
West: Whitefish Stage Road and vacant riparian area adjacent to a side channel
of the Stillwater River
South: Four residential properties, Greenwood Village RV Park and a small hotel.
G. Adjacent Zoning:
North: County I-2 ( Heavy Industrial)
East: County I-2 ( Heavy Industrial)
West: County R-1 (Suburban Residential)
South: County R-5 (Two-family Residential)
H. General Land Use Character: The general land use character of this area can be
described as industrial. The active land uses in the area are a landscape stone
supply company, a post and pole wood products manufacturing operation, and a
commercial truck repair business. There are residential properties adjacent to
the site on its southern boundary, but there is a significant topographic
difference between the residential properties and the industrial area, with the
residential properties sitting 20 to 30 feet above the industrial zone. There is also
an RV park located just south of East Oregon Street.
I. Utilities and Public Services:
Sewer:
City of Kalispell
Water:
City of Kalispell
Refuse:
Evergreen Disposal
Electricity:
Flathead Electric Cooperative
Gas:
NorthWestern Energy
Telephone:
CenturyLink
Schools:
School District #5, Edgerton Elementary
Fire:
City of Kalispell
I. ANNEXATION EVALUATION
1. Compliance with the growth policy:
The Kalispell Growth Policy, and specifically the "Core Area Plan" discusses the
relocation of the railroad tracks from the Core Area. The applicable policies in
the "Core Area Plan," that were adopted by the City Council in December 2012,
include:
1. Work with the railroad to develop a seamless program to remove the
tracks from the Core Area and provide a new rail terminus at the FCEDA
rail -served industrial site.
2. The city should take the lead in coordinating with the current track
users and the railroad for relocation of the businesses out of the Core
Area for track removal.
3. A program should be developed for the relocation of existing rail
dependent business out of the Core Area into the FCEDA rail -served
industrial site as a preferred location.
The 3.38-acres under consideration was purchased by FCEDA for the
development of the rail -served industrial site. The annexation of the site into
the city is a positive fulfillment of the Growth Policy and the supporting "Core
Area Plan."
In addition, to this cited goals, the city council adopted an annexation policy in
2011, with a corresponding map as an addendum to the city's growth policy
document. The purpose of the annexation policy is to give the planning board,
the council, and the development community direction when property owners
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outside of the city limits are requesting municipal services and annexation. The
property proposed for annexation falls inside the city's direct annexation
boundary.
2. Municipal Services:
Municipal services such as, streets, sewer and water mains, are all in the
process of being constructed to serve the rail park, for which the 3.38-acre
piece of land will be a part. A majority of the property is already located within
city limits and served by the Kalispell Fire and Police Departments.
3. Distance from current city limits:
The area to be annexed touches city limits on the southern boundary and is a
logical extension of the larger Glacier Rail Park development.
II. INITIAL ZONING EVALUATION BASED ON STATUTORY CRITERIA
The statutory basis for reviewing a change in zoning is set forth by 76-2-303, M.C.A.
Findings of fact for the zone change request are discussed relative to the itemized
criteria described by 76-2-304, M.C.A. and Section 27.29.020, Kalispell Zoning
Ordinance.
1. Does the requested zone comply with the growth policy?
The Kalispell Growth Policy Plan -It 2035 designates the proposed PUD boundary
as industrial. The I-2/PUD zoning on the property, which allows rail industrial
parks as a permitted use, is consistent with the growth policy land use
designation of the site as industrial. Additionally, the City of Kalispell Core Area
Plan was adopted by the Kalispell City Council as an amendment to the Growth
Policy Plan -It 2035. The Core Area Plan focuses on the redevelopment of the core
area of Kalispell, which involves the relocation of the railroad tracks through town
and construction of an industrial rail park. The Kalispell Growth Policy Plan -It
2035 and Core Area Plan has several goals that support the request:
Growth Policy Plan -It 2035, Chapter 4 - Business and Industry, states the
following:
GOAL #1 - Encourage the development and growth of prosperous
commercial and industrial districts, each with a viable mix of business,
suitable infrastructure, and a coordinated development pattern that
reduces business costs and increases small business opportunities.
GOAL #6 - Provide adequate areas within the community for commercial
and industrial development that meets the needs of present and future
business in terms of cost, type, design and construction.
POLICIES (Industrial Districts, d.) - Continue to work with the Flathead
County Economic Development Authority on the development of the Glacier
Rail Park into a rail served industrial park.
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Core Area Plan, Chapter 4 - First steps states the following:
# 1 - Burlington Northern Sante Fe (BNSF) Railroad track relocation.
a. Identify businesses using rail access in Kalispell, i.e. CENEX
and Northwest Drywall
b. Meet with each rail depended business to determine needs and
expectations should rail be removed in Kalispell.
c. Develop a partnership and plan with each existing business
having rail service to accommodate the loss of rail service in
Kalispell.
2. Will the requested zone have an effect on motorized and nonmotorized
transportation systems?
The requested annexation of 3.38-acres and initial zoning of I-2/PUD will not
have a negative effect on the motorized and nonmotorized transportation
systems. The annexation and initial zoning simply re -aligns the northern
property boundary of the Glacier Rail Park allowing for a linear access road into
the development, which will create a safer more efficient route for the trucks that
will be regularly using the site.
3. Will the requested zone secure safety from fire, panic, and other dangers?
Adequate access and public facilities are available to the site in the case of an
emergency. There are no features related to the property which would
compromise the safety of the public. All municipal services including police and
fire protection, water, and sewer service will be made available to the area.
4. Will the requested zone promote the public health, safety and i4eneral welfare?
The requested zoning classification will promote the health and general welfare
by restricting land uses to those that would be compatible with the adjoining
properties.
5. Will the requested zone provide for adequate light and air?
Setback, height, and lot coverage standards for development occurring on this
site are established in the Kalispell Zoning Ordinance to insure adequate light
and air is provided.
6. Will the requested zone promote compatible urban growth?
The requested I-2/PUD Zoning District allows the property to be developed as an
industrial rail park, which is consistent with its past and current use as a gravel
pit. The I-2/PUD Zoning District maintains and is compatible with the
established land use pattern in this area which is a mixture of industrial uses.
7. Will the requested zone facilitate the adequate provision of transportation, water,
sewerage, schools, parks, and other public requirements?
0
Public services and facilities are in the process of being extended into the
property for the development of the Glacier Rail Park. The requested use will
create no impact on park or school facilities.
8. Does the requested zone give consideration to the particular suitability of the
property for particular uses?
The proposed I-2/PUD Zoning District is consistent with the surrounding
industrial character of the area. The requested I-2/PUD Zoning District gives
due consideration of the suitability of this property for the permitted uses in the
zoning district.
9. Does the requested zone give reasonable consideration to the character of the
district?
The general character of the area is industrial. By assigning the property with
the I-2/PUD Zoning District the development of this property will be consistent
with the industrial character of the area and the zoning placed on the Glacier
Rail Park currently under construction. The proposed zoning is also consistent
with County I-2 zoning designation of the properties to the north.
10. Will the requested zone avoid undue concentration of people?
There will be minimal impact with the requested zone, as the property being zoned
is only 3.38-acres of what will ultimately be a 44-acre rail park. The 3.38-acres
allows for flexibility in site design and utility layout, but would not significantly
increase the number of people onsite.
11. Will the proposed zone conserve the value of buildings?
The value of the industrial area will increase with the establishment of new
railroad lines into the park and connections to the existing BNSF right-of-way to
the east.
12. Will the requested zone encourage the most appropriate use of the land
throughout the municipality?
Industrial development should be encouraged in areas where services and
facilities are reasonably available. In this case water and sewer lines are located
within a short distance of the property. The proposed zoning is consistent with
the city growth policy future land use designation and is compatible with current
county zones and uses.
III. GLACIER RAIL PARK TARGETED ECONOMIC DEVELOPMENT DISTRICT
BOUNDARY AMENDMENT
On April 4, 2016, the council approved Resolution No. 5757. Resolution 5757 was a
resolution of necessity finding that the Glacier Rail Park Development Plan area is
deficient in necessary infrastructure improvements, that the City lacks sufficient
capital to rectify the infrastructure deficiency of the subject property, thus impeding
its ability to achieve economic growth though the development of value -adding
industries, and that infrastructure improvements of the subject area is necessary for
7
the welfare of the residents. Subsequently, the council, after a duly noticed public
hearing on April 18, 2016, established the 49-acre TEDD within the larger 104-acre
Glacier Rail Park Development Plan by passing Ordinance 1770. Ordinance 1770
adopted the Glacier Rail Park Plan as a comprehensive development plan and
established the Glacier Rail Park TEDD in the City of Kalispell for the purpose of
developing necessary infrastructure within the plan boundary to encourage the
location and development of value -adding industries; established the costs which may
be paid by the district created by the ordinance, established the boundaries of the
TEDD; and established January 1, 2016 as the base taxable year for the TEDD.
The City of Kalispell in conjunction with FCEDA is seeking to foster the development of
secondary, value adding industries within the Glacier Rail Park Development Plan area
as part of the city's overall mission to meet its needs of promoting economic
development, improving area employment opportunities and expanding the
community's tax base. This effort is being made possible through the Glacier Rail Park
Targeted Economic Development District (TEDD) on 49 acres of land within the larger
104-acre Glacier Rail Park Development Plan boundary. FCEDA would like to amend
the current 49-acre TEDD boundary to encompass the additional 3.38-acres being
annexed into the city. The additional 3.38-acres is well within the Glacier Rail Park
Development Plan Boundary. The Glacier Rail Park Development Plan anticipated
additional properties annexing into the city and states the following in support of the
requested amendment:
There is 55 acres of adjacent land currently within Flathead County. This 55 acres will
not be located within the TEDD; however, this plan is taking into account this 55 acre
area due to the likelihood of the property owners petitioning to annex into the City. It is
anticipated that the development of the infrastructure within the TEDD will catalyze
redevelopment of industrial land adjacent to the TEDD, which will benefit from the
improved infrastructure and increased visibility. In order for these properties within the
County to fully develop, infrastructure will need to be provided. Accordingly, if at a
future date properties outside of the designated TEDD would like to be included in the
Rail Park, this plan would leave open the possibility of the TEDD being expanded into
those properties.
This is further illustrated in the FIGURE below:
The City of Kalispell utilizes Tax Increment Financing as part of the overall strategy to
provide infrastructure in support of value -adding industry pursuant to the 2013
Targeted Economic Development District Act, embodied in 7-15-4279, Montana Code
Annotated (MCA). The TEDD provides the City of Kalispell with the ability to employ
tax increment financing as provided in 7-15-4282, MCA for appropriate public
infrastructure projects in support of "value -adding industry or secondary value-added
products or commodities."
Section 7-15-4213(1) states that 'Prior to the approval of an urban renewal project, the
local governing body shall submit the urban renewal project to the planning commission
of the municipality for review and recommendations as to its conformity with the
comprehensive plan or parts thereof for the development of the municipality as a whole."
Further, Section 7-15-4213(2) states, 'The planning commission shall submit its written
recommendations with respect to the proposed urban renewal plan to the local governing
body within 60 after receipt of it." Subsequent to receiving the recommendation of the
planning board, the council will schedule a public hearing on the matter. All property
owners within the proposed district will be notified by mail. This notice will include the
date and time of hearing, area proposed for urban renewal and a general scope of the
plan.
In the event that the council determines that it wishes to amend the Glacier Rail Park
TEDD boundary to include the 3.38-acres, it must first pass a resolution of necessity
setting forth its findings that certain facts exist to support the amendment of the
boundary of such a tax increment district. The resolution of necessity would include a
public hearing on the proposed amendment, as mentioned above. Based upon the
background evidence presented in this report, and further outlined in the Glacier Rail
Park Development Plan, the following findings would be appropriate for an amendment
of the TEDD boundary to include the 3.38-acres:
a. The document entitled the "Glacier Rail Park Development Plan" was adopted
by the City of Kalispell by Ordinance 1770 as a comprehensive development
plan as such plan identifies the use and purpose for which a Targeted
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Economic Development District [TEDD) was created for this land area,
including the 3.38-acres of land for which this amendment is predicated; and;
b. The property upon which the Glacier Rail Park will be developed is deficient in
the infrastructure necessary to encourage and retain value -adding industry
within the rail park; and
c. The property upon which the Glacier Rail Park will be developed has been
designated to be within an Economically Distressed Area in part due to a
decline in the traditional industries of timber, mining and aluminum
production; and
d. Upon approval of the annexation and initial zoning of the 3.38-acre property to
I-2/PUD, the property is zoned for purposes consistent with the Glacier Rail
Park Development Plan and said zoning is consistent with the City of Kalispell
Growth Policy; and
e. The property upon which the Glacier Rail Park will be developed consists of a
continuous area with an accurately described boundary and is not included
within an existing tax increment financing district; and
f. The Glacier Rail Park Development Plan is specifically of the size and design to
host a diversified base of multiple independent tenants; and
g. The property upon which the Glacier Rail Park will be developed meets the state
statutory criteria for the creation of a TEDD.
In the event that the Kalispell City Council determines that it wishes to approve the
Resolution of Necessity, the following step would be for the council to consider passing
an Ordinance amending the TEDD boundary.
]IV. REVIEW AND FINDINGS OF FACT FOR THE PRELIMINARY PLAT
The proposed seven (7) lot subdivision is being proposed by FCEDA in order to develop
a rail -served industrial park that will be the new home of several of the rail -served
industrial business uses that are currently located within the City of Kalispell's Core
Area, as well as provide additional industrial land for other rail -dependent business
ventures. The Kalispell City Council previously approved a major subdivision
application on the subject property in 2014 for twenty (20) rail -served lots. As the
project has progressed, FCEDA has determined that larger lots are more marketable
than the smaller lots. Due to the fact the preliminary plat layout was significantly
altered and an additional 3.38-acres is being annexed, a new subdivision application
is required.
A. Effects on Health and Safety:
Fire: The property is considered to be at low risk of fire because the subdivision
and rail -served industrial uses within the subdivision will be constructed in
accordance with the International Fire Code and have access which meets city
standards.
The closest City of Kalispell fire station is located in downtown Kalispell at 1st
Ave E and 4th Street W. The distance is approximately 1.3 miles.
Flooding: According to Flood Insurance Rate Map, panel 30029C 1810J, dated
November 4, 2015, a small portion of the northwest corner of the property that
spans the Stillwater River is within the 100-year floodplain. This area is not
proposed for development, but will be left in its current configuration.
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Access: There are three access points onto the property. The main and
primary access is from US Highway 2 (Idaho Street) on Montclair Drive at the
northeast corner of the property. This access point is planned to be upgraded
to State and City standards to accommodate truck traffic in and out of the site.
A traffic impact study has been prepared concerning the intersection
improvements and installation of a traffic signal at Montclair Drive and US
Highway 2. Two secondary access points onto the site are at Whitefish Stage
Road, at the northwest corner of the property and at East Oregon Street at the
south side of the property.
B. Effects on Wildlife and Wildlife Habitat: The subdivision property spans, at
its northwest corner, the Stillwater River, which is the most significant fish and
wildlife habitat resource associated with the site. The Stillwater River corridor
is an important habitat and migration corridor for numerous fish and wildlife
species. There are no federally listed fish and wildlife species on or near the
proposed subdivision site. The local Montana Fish Wildlife and Parks Fisheries
Biologist stated that he "did not expect direct impacts to threatened or
endangered species by the conversion of the site from a gravel pit to a rail yard"
Upgrades, including stormwater retention being constructed to city standards
will improve the overall stormwater function of the site, resulting in improved
water quality.
C. Effects on the Natural Environment:
Surface and groundwater: The nearest surface water is the Stillwater River,
which runs from west to east north of the property. The property spans the
river at its northwest corner, adjacent to the Whitefish Stage Road bridge
spanning the river. This area is in a largely natural state with woody vegetation
along the banks and riparian zone.
Groundwater is moderately shallow at the subject property, with depths of
approximately 25 feet at the subdivision site.
Drainage: The topography of the site naturally sends surface water to the
northeast. The applicant has provided space for a storm drainage system at the
northeast corner of the property along East Oregon Lane, which was part of
final design approved by the Public Works Department and currently under
construction.
D. Effects on Local Services:
Water and Sewer: Water and sewer service to the subdivision will be provided
by the City of Kalispell. The applicant is in the process of extending water and
sewer service to the property down East Oregon Street and East Oregon Lane,
which was part of their final design approved by the City of Kalispell Public
Works Department.
Roads: As stated above, there are three access points onto the property. The
main and primary access is from US Highway 2 (Idaho Street) on Montclair
Drive at the northeast corner of the property. This access point is the process of
being upgraded to state and city standards to accommodate truck traffic in and
out of the site. A traffic impact study has been prepared concerning the
intersection improvements and installation of a traffic signal at Montclair Drive
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and US Highway 2. Two secondary access points onto the site are at Whitefish
Stage Road, at the northwest corner of the property and at East Oregon Street
at the south side of the property. East Oregon Street and East Oregon Lane do
not currently meet city standards. These roads are in the process of being
upgraded to city standards based on a design that was approved by the
Kalispell Public Works Department.
Additionally, the Glacier Rail Park PUD includes the following regulations
applicable to the roads in the development:
a. Kalispell Subdivision Regulations Section 28.3.13: The PUD overlay
would clarify the potential ability to gate the private road at the
intersection with Whitefish Stage. For multiple reasons it is appropriate
for the road through the property to be gated. First, the road through the
development will be private. FCEDA will be in charge of maintenance of
the road. The gate will need to be reviewed by both the Kalispell Fire
Department and Kalispell Police Department, assuring adequate access
to the site in case of emergency. Second, the development is industrial,
which means there will regularly be heavy equipment, trucks, etc. using
the road, creating potential for conflict with the general public. Third, all
of the traffic within the development will be routed east toward the new
intersection of U.S. 2 and Flathead Drive. No truck traffic will be entering
the development from Whitefish Stage due to the current condition of
Whitefish Stage, which would need improvements if truck traffic were
regularly using it. Fourth, if there is not a gate the road will become an
easily accessible cut across on the east side of town. If the road were
accessible to the public, more traffic would use Whitefish Stage further
extenuating its limitations, as highlighted earlier.
b. Kalispell Subdivision Regulations 28.3.14(A)(4): Requires that the 60'
right-of-way be public and that the right-of-way have sidewalks on both
sides. The PUD overlay would allow for the 60' rail park access road
right -of way to be private and not have sidewalks on either side. If the
rail park access road is maintained as public there are maintenance
concerns due to the industrial type traffic that will regularly be using it.
With the rail park access road being private it will be entirely up to the
FCEDA to maintain it. With the rail access road being private it allows for
the access to be gated, as outlined above. A public road would need to be
open to the public, at which time it would become an easily accessible
cut across on the east side of town. A large amount of public traffic using
the rail access road would extenuate the issues with the intersection of
Whitefish Stage and the intersection of Montclair. At this time, these
intersections have not been designed to handle additional traffic other
than what will be generated by the rail park. Since the development is an
industrial rail park there will regularly be heavy equipment, trucks, etc.
using the rail access road and approaches into the site, creating potential
for conflict with the general public. For this reason, it is not appropriate
for pedestrians to be walking the subject property, thus eliminating the
need for sidewalks which would encourage pedestrian access into the
site.
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Schools: This development is within Kalispell School District #5. The
development is industrial in nature and will have no impact on the school
system.
Parks and Open Space: The Kalispell Subdivision Regulations do not require
parkland dedication for non-residential lots. The intention of the subdivision is
to create non-residential lots, therefore no parkland dedication is required.
Police: The Kalispell Police Department can adequately provide service to this
subdivision.
Fire Protection: Fire protection will be provided by the Kalispell Fire
Department. The fire access and water service are in the process of being
constructed and will be completed prior to final plat approval. The fire chief
has indicated that the city has adequate response time and equipment to serve
the site upon development.
Solid Waste: Solid waste is currently being handled by Evergreen Disposal.
FCEDA, may to switch their service provider to the City of Kalispell at sometime
in the future. In either case, there is sufficient capacity within the landfill to
accommodate this additional solid waste generated from this subdivision.
Medical Services: Ambulance service is available from the fire department and
ALERT helicopter service. Kalispell Regional Medical Center is approximately 2
miles from the site.
E. Effects on Agriculture and agricultural water user facilities: The proposed
subdivision site was used for the past 70 years as a gravel extraction and
processing site, as well as a concrete batch plant. The development of this
property is not anticipated to have any impact on agricultural uses within the
valley and no impact on agricultural water user facilities since this property will
be served by a public water system.
F. Relation to the Kalispell Growth Policy: The Kalispell Growth Policy Future
Land Use map for the area anticipates this area to be developed as an
Industrial future land use. The development as a rail -served industrial park is
consistent with the Kalispell Growth Policy Designation of Industrial.
G. Compliance with Zoning: The property being subdivide is located within an I-
2/PUD Zoning District. The Planned Unit Development overlay for the rail park
allows for the following modifications to the Kalispell Zoning Ordinance:
a. Kalispell Zoning Ordinance Section 27.19.030(1)(b): Allows for both the
permitted and conditionally permitted uses of the underlying I-2 zone to
be included as permitted uses within the PUD overlay, excluding
telecommunication towers (including radio, TV, internet, phone and
cable providers) which requires a conditional use permit.
b. Kalispell Zoning Ordinance Section 27.17.040(7) and 27.20.040: Allows
fence height in the front setback to eight (8) feet, provided that there be
no barbed wire in the front setback area.
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c. Kalispell Zoning Ordinance Chapter 27.22: The request would allow for
the developer to submit a wayfinding sign plan (in addition to the
individual per lot signage allocations) to the City Planning Department
for its review and approval.
d. Kalispell Zoning Ordinance Section 27.24.030(4): Required paved parking
areas are limited to those areas used for customer and employee parking
and access and a minimum paved driveway at all other accesses for
industrial user traffic.
e. Kalispell Zoning Ordinance Section 27.24.030(6): Landscaping for
parking areas is not required.
The submitted preliminary plat application is in compliance with all applicable
zoning regulations.
H. Compliance with the Kalispell Subdivision Regulations: This subdivision
complies with the Kalispell Subdivision Regulations and no variances have been
requested with this application. The PUD overlay for the rail park allows for the
following modifications to the Kalispell Subdivision Regulations:
a. Kalispell Subdivision Regulations Section 28.2.09 (D): Allows for a
building permit to be issued prior to final plat provided that adequate fire
access and water is available to the satisfaction of the Kalispell Fire
Department prior to any combustibles being on site.
b. Kalispell Subdivision Regulations Section 28.3.13: Allows for the gating
of the rail park access road at the intersection of Whitefish Stage. Final
gate design shall be approved by the Kalispell Fire Department, Kalispell
Police Department and Kalispell Public Works prior to installation.
c. Kalispell Subdivision Regulations 28.3.14(A)(4): Allows for the 60' rail
park access road right -of way to be private and not have sidewalks on
either side.
RECOMMENDATIONS
Staff recommends that the Kalispell City Planning Board and Zoning
Commission adopt Staff Report #KA-18-01 as findings of fact and recommend to
the Kalispell City Council that the 3.38-acre property be annexed and the zoning
for the property be I-2/PUD.
Staff would recommend the Kalispell Planning Board adopt staff report #KRD-18-
01 and forward the proposed amendment to the Glacier Rail Park Targeted
Economic Development District boundary to the Kalispell City Council for review
and approval.
Staff recommends that the Kalispell City Planning Board and Zoning
Commission adopt staff report KPP-18-04 as findings of fact and recommend to
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the Kalispell City Council that the preliminary plat for Glacier Rail Park be
approved, subject to the conditions listed below:
CONDITIONS OF APPROVAL
General Conditions:
1. The development of the site shall be in substantial compliance with the
application submitted, the site plan, materials and other specifications
as well as any additional conditions associated with the preliminary plat
as approved by the city council.
2. The preliminary plat approval shall be valid for a period of three years
from the date of approval.
3. All applicable conditions within Ordinance 1792 (Glacier Rail Park PUD)
shall apply.
4. Commercial truck traffic shall be prohibited from using East Oregon
Street, west of the subdivision. Signage prohibiting commercial trucks
from using East Oregon Street shall be installed on East Oregon Street,
west of the proposed subdivision.
5. Commercial truck traffic shall be prohibited from exiting the site onto
Whitefish Stage, west of the subdivision. Signage prohibiting commercial
trucks from exiting the site onto Whitefish Stage Road shall be installed
on the proposed "Rail Access Road" within the subdivision.
6. The proposed private Rail Access Road within the subdivision shall be
designed and constructed in accordance with the Kalispell Subdivision
Regulations and Kalispell Standards for Design and Construction. In
order to serve its intended purposes, the private road shall be designed
to Collector Street standards with a loading capacity of HS-20 in order to
withstand the weight of truck traffic. Curbs, gutters, and boulevards
shall be provided on both sides of the road. No sidewalks are required
per Ordinance 1792. The private access road shall continue to provide
access to the properties to the north of the subdivision per an easement
stated on the face of the final plat.
Prior to final plat:
7. East Oregon Street and East Oregon Lane shall be improved to City of
Kalispell Collector Street standards with a curb, gutter, boulevard, and
sidewalk along the affected frontages and with curb and gutter on the
opposite side of the street. The improved road shall be designed and
constructed to HS-20 loading capacity standards. All of the
corresponding right-of-way shall be granted to the City of Kalispell.
15
8. Right-of-way shall be granted to the city for the entire 60-foot road and
utility easement (Flathead Drive west of rail ROW, East Oregon Street,
and East Oregon Lane). The exact easement location shall be reviewed
and approved by the Kalispell Public Works department and shown on
the final plat. The dedicated segment of Flathead Drive shall be improved
to Collector Street standards, with curbs, gutters, and boulevards on
both sides, and a sidewalk on at least one side.
9. The intersection of East Oregon Lane, Montclair Drive, and Flathead
Drive shall be designed in accordance with the recommendations
contained in the Traffic Impact Study for the FCEDA Rail Park
subdivision. The final traffic circulation design shall be reviewed and
approved by the Kalispell Public Works Department and Flathead
County.
10. The intersection of Flathead Drive and U.S. Highway 2, including the
installation of a traffic light at this intersection, shall be designed in
accordance with the recommendations contained in the Traffic Impact
Study for the FCEDA Rail Park Subdivision. The final traffic circulation
design shall be reviewed and approved by the Kalispell Public Works
Department, Flathead County, and the Montana Department of
Transportation.
11. The designs for any modified or planned crossing of the railroad lines
within the property and at Flathead Drive shall be reviewed and
approved by Burlington Northern and Santa Fe (BNSF) Railway
Company. A letter shall be submitted to the Kalispell Public Works
Department from BNSF, or their technical representative, indicating
approval of the design of said crossings.
12. The developer shall submit to the Kalispell Public Works Department for
review and approval a stormwater report and an engineered drainage
plan that meets the requirements of the current city standards for design
and construction. Prior to final plat, a certification shall be submitted to
the public works department stating that the drainage plan for the
subdivision has been installed as designed and approved.
13. The developer shall submit to the Kalispell Public Works Department
prior to construction an erosion/sediment control plan for review and
approval and a copy of all documents submitted to Montana Department
of Environmental Quality for the General Permit for Stormwater
Discharge Associated with Construction Activities.
14. The developer shall submit to the Kalispell Public Works Department for
review and approval a municipal water and sewer extension and
development plan that meets the requirements of the current city
16
standards for design and construction. If public utilities are located
internal to the site, they shall be located within the private roadway area.
15. Any public utilities that are required to cross the railway lines shall be
encased in sleeves that will protect the underground utilities from
damage. The design for these casings shall be submitted for review and
approval by the Kalispell Public Works Department.
16. A letter from the Kalispell Public Works Department shall be submitted
stating that all new infrastructure has been accepted by the City of
Kalispell or proper bonds have been accepted for unfinished work.
17. All existing and proposed easements shall be indicated on the face of the
final plat. Utility easements for city water and sewer shall be provided to
allow for the logical extension of utilities from this subdivision to adjoining
properties. A letter from the Kalispell Public Works Department shall be
obtained stating that the required easements are being shown on the final
plat. Easements for public utilities should be exclusive to public utilities
only. Private utility easements may run parallel and adjacent to the public
easement.
18. The following statement shall appear on the final plat: "The undersigned
hereby grants unto each and every person, firm or corporation, whether
public or private, providing or offering to provide telephone, telegraph,
electric power, gas, cable television, water or sewer service to the public,
the right to the joint use of an easement for the construction, maintenance,
repair, and removal of their lines and other facilities, in, over, under, and
across each area designated on this plat as "Utility Easement" to have and
to hold forever."
Developer's Signature
19. The developer shall include on the face of the final plat a statement
waiving the right to protest the establishment of a special improvement
district for the purposes of improvements to Whitefish Stage Road where
it is adjacent to the property.
On -going conditions:
20. All utilities shall be installed underground.
21. All areas disturbed during development shall be re -vegetated with a
weed -free mix immediately after development.
22. The portion of the property located in the far northwest corner, spanning
the Stillwater River, shall be maintained in its natural state so as not to
17
disturb the native vegetation, impede the flow of surface water, or impact
the 100-year floodplain.
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