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Tab 27 Resolution No. 5063ZC CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I. the undersigned, being the duly qualified and acting recording officer of the City of Kalispell, Montana (the "City"), hereby certify that. the attached resolution i's a true copy of a Resolution entitled: "RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 344; DECLARING IT TO. BE THE INTENTION OF THE CITY COUNCIL TO CREATE THE DISTRICT FOR THE PURPOSE OF. UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS- THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED IN PART BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND" (the "Resolution"), on file in the original records of the City in my legal custod - that the Resolution was duly adopted by the City Council of the City at a Y5� regular meeting on October 3, 2005, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as.required by law; ........ .... and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Council Members voted in favor thereof: Jim Atkinson, Kari Gabn6el, Bob Herron, Randv Kenyon, Tim Kluesne uane Larson, Hank Olson, and Mavor Pamela B. Kennedy ; voted against the same.- Bob Hafferman ;abstained from voting thereon:. None; or were absent: None. WITNESS my hand and seal officially this 4th day of October, 2005. Theresa White City Clerk RESOLUTION NO. 5063 J1%JV4 RESOLUTION RELATING TO SPECL4JL IMPROVEMENT DISTRICT NO. 344; DECLARING IT TO BE THE INTENTION OF THE CITY COUNCIL TO CREATE THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE -OF SPECL4L IMPROVEMENT DISTRICT BONDS SECURED IN PART BY THE CITY!S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND BE IT RESOLVED by the City Council (the "City Council") of the City of Kalispell, Montana (the "City-"')', as follows: - Inte Section 1. Bggk Iwo 3 g[ound- Provosed Improvements, ntion To. Create District. (a) Bagk improvements (the Vound. The City proposes to undertake certain- (14improvements") to benefit specific property located in the City. The District (defined below) is being established for the purpose of funding the public infrastructure improvements within the District. The District will contain the first industrial/technology park in the City and will have 17 lots available for development. The District will be known as "Old School Station."' The land that comprises the District is tely 55 acres and is currently used primarily for agricultural purposes. The District will not approxima. need to be rezoned for the contemplated use and development. The District 'is located just east of Highway 93 on Demersville Road approximately. 1.9 miles south of Four Corners intersection and directly east of the Rocky Cliff Road intersection. Montana Venture Partners, LLC, the developer of the ..--Disuict,is-.-financi*ng--an-d _,_contra_c_tingJQr _thie��Xtens -ion of the Ctty water and wastewater services from the main City limits to the boundary of the District. (b) Provosed Improvements. The Improvements, as proposed, consist of the (i) design, grading and construction of underground conveyance lines for water, wastewater, and storm water, and (ii) design-, grading and construction of underground utility lines for gas, electric and telephone services, and (Iii) design, grad ing and construction of streets, gutters and sidewalks, all as more fully describe in Section 5. All Improvements will be constructed to City of Kalispell Design and Construction Standards. (c) Intention to Create -District. The total estimated construction costs of the Improvements are $3,897,398 as determined by Morrison Maierle Inc., engineers for the City with respect to the District (the "Engineers"). The total -costs of the Improvements,, including the incidental costs discussed in this Resolution, is estimated not to exceed $4,550,000. It is the intention of this City Council to create and establish in the City under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"), a special improvement district (the "'District'). The purpose the formation of the District is to provide a mechanism for financing costs of the Improvements and paying costs incidental thereto. The costs associated with the District to be financed with proceeds of the City's special improvement district bonds (the "Bonds"), in the estimated original aggregate principal amount not to exceed $4,550,000, are: (i) the esti -mated the costs of the Improvements; (ii) the creation and administration of the District; (ili) a deposit to the City's Special Improvement District Revolving Fund (the "Revolving Fund") to- secure the Bonds; Ov) a deposit to a debt service reserve account in the District Fund (the "Reserve Account') to secure the Bonds,, and (v) the costs of issuance for the Bonds. The total estimated cost of the Improvements, including. the costs listed in (ii)-(v) above, is $4,550,000. The Bonds are to be payable primarily from special assessments to be levied against property in the District, which property will be specially benefited by the Improvements in an estimated amount of not less than $4,550,000. In the event that special assessments are not sufficient to,pay debt service on the Bonds, debt service on the Bonds w ill be payable frorn amounts on deposit in the Reserve Account and the Revolving Fund. Section 2. Number of District. The District,, if the same shall be created and established, shall be known and designated by the City as "Special Improvement District No. 344 of, the City of Kalispell, Montana." Section 3. Boundaries of District. The limits and boundaries of the District are depicted on a map attached hereto and made a part hereof as EXHIBIT A and more particularly described on EXHIBIT B attached hereto and made a part hereof, which boundaries are designated as the boundaries of the District. . Section 4. Benefited PLuerty. The District and land included within the limits and boundaries described in Section 3 and as shown on EXHIBITS A, B and C are hereby declared to be the District.and the land that will benefit and be benefited by the Improvements and will be assessed for the cost of the Improvements, including the incidental costs, as described in this Resolution. Those particular portions of the District as set forth in the table below are hereby declared to be benefited. by those kinds of Improvements set forth opposite such portions of property: Lot,- -Parcel. Tract Benefited by Kind of I - rovements SID Lot Nos. 1 through 17 Grading, Utility and Surface Improvements Section 5. General Character of the IMprovements. The general character of the Improvements are (i) grading and utility Improvements, consisting of planning, design and performing site grading for the construction. within the District of Schoolhouse Loop, Schoolhouse Drive and --School-house - -Cir.cle.-(inctu-d*lng,--w-i-tbout...Iimitation,-,-p I nd services, sewer mains and services, a storm. drainage system,, telephone, natural gas, and electrical utilities), and (ii) surface improvements, consisting of surfacing Schoolhouse Loop, Schoolhouse Drive and Schoolhouse Circle and installing related surface improvements, such as, without limitation, curbing, aprons, sidewalks, gutters,, and landscaping. Section 6. Engineer and Estimated Cost. Morrison & Maierle Inc. shall be the Engineers for the. District. The Engineers have estimated that the costs of the Improvements, including all incidental costs, but not the costs associated with securing the Bonds and the i ssuance of the Bonds is $3,897,398. Section 7. Assessment Methods. 7.1. Method for PLQpert To Be Assessed. All properties within the District are to be assessed for a portion of the costs of the Improvements,, as specified herein. The costs of the Improvements shall be assessed against applicable portions of the property in the District benefiting -from the Improvements, based on, and as described below in this Section 7, the actual area method of assessment described 'in Sections 7-12-4162 and 7-12-4163 of the Act, as particularly applied and set forth in this Section 7. 7.2. Actual Area — Grading, Utility,_ and Surface Improvements. All of the properties in the District (described as SID Lot Nos. 1 through 17 on EXHIBIT C) will be assessed for their proportionate share of the costs of the grading, utility, and surfacing Improvements. The total estimated cost of the gTading, utility, and surfacing Improvements, including all incidental expenses, is $4,550,000 and shall be assessed against each of SID Lot Nos. 1 through 17, as shown on the attached EXHIBIT C. for that part of the costs. of the grading, utility, and surface Improvements that the area of each of such tract or parcel bears to the total area of both of such tracts or parcels exclusive of streets, avenues, alleys, storm water detention ponds and like features. The total area of the District to be assessed by way of the actual area 2 method is estimated to be 2,064,308 square feet. The costs of the grading, utility, and surfacing Improvements per square. foot of area is estimated not to exceed $2.21. The total assessment (not including interest expense) for each affected lot, tract or parcel of land subjected to the actual area method of assessment for the grading, utility, and surface Improvements is shown on EXHIBIT D attached hereto and made a part hereof. 7.3. Assessment Methodolggies,Equit able and Consistent with Benefit. This City Council, by this Resolution, determines that the method of assessment and the assessment of costs of the specific Improvements against the properties benefited thereby as prescribed in this Section 7 are equitable and in proportion to and not exceeding the special benefits derived from the respective Improvements by the lots, tracts and parcels to be assessed therefor within the District. 7.4. Subdivision or Partition. The City understands that none of the property iden. tified on EXHIBIT C as SID Lot Nos. I through 17 is currently intended to be further subdivided or partitioned. Subsequent lots or parcels within the District created by subdivision or partition shall be specially assessed from and after their creation and such assessment. shall be charged to the then -current owner thereof in accordance with the -provisions of this Section.7. Section 8. Pay ent of 5pecial Assessments. The special assessments for the cos ts of the Improvements shall be payable over a term not exceeding twenty (20) years, each in equal semiannual installments of principal, plus interest, or equal semiannual payments of principal and interest, as this City Council shall Prescribe in the resolution authorizing the issuance of the Bonds. Property owners in the District have the right to prepay assessments as provided by law. ------------ - . ...... .. .. ...... ... ...... ..... . ........ ...... ... ..... Section 9. Anticipated Method of Financing: Pledge of Revolving ­Fund; Finding5, an Determinations. The City has the present intention to issue the -Bonds in order to finance the (i) cost of the Improvements, 00 the cost of the creation and administration of the District, (iii) fund a deposit to the Reserve Account, (iv) fund a- deposit to the Revolving Fund, and (v) pay costs of issuance of the Bonds. Principal of and interest on the Bonds will be paid from_ special assessments levied against the property in the District and such payment will be secured, in part, by the Reserve Account. This City Council finds it in the public interest, and, 'in the best interest of the City and the District, to secure payment of principal of. and interest on the Bonds by the Revolving Fund.. The City Council hereby authorizes the City to enter into the undertakings and agreements authorized in Section 7-12,4225 of the Act to use the Revolving Fund to secure the Bonds. In determining to authorize the use of the Revolving Fund to secure the Bonds, this City Council has taken into consideration the following factors: (a) Estimated Market Value of Parcels. , The City has considered the estimated market value of the lots, parcels or tracts in the District as of the date of adoption of this Resolution, as estimated by the County Assessor, as well as the estimated market value of the lots, parcels or tracts after the Improvements have been completed. The City, in conjunction with the Engineers, has determined that the value of the properties (in particular, the undevelODed properties) in the District will be significantly enhanced by the Improvements. The special assessments to be levied under Section 7against each lot, parcel or tract in the District are, as of the date of this Resolution not anticipated to exceed the increase in estimated market value of the lot,, parcel or tract as a result of the construction of the Improvements. (b) DiversiLy..of Property-Owne'r - 0 All of the parcels in the District are privately held parcels presently within the District and do not contain any real property improvements. Montana Venture Partners, LLC currently owns 14 of the 17 lots within the District. Montana Venture Partners, LLC has represented to the City that it is planning on selling all 14 lots that it owns in the District to private parties that will develop industrial, commercial and technology business facilities in the District SID Lot No. 1 is owned by Fun Warehousers II, LLC which is anticipated to build a distribution center for a beverage distribution business. SID Lot No. 10 'i's currently owned by Montana Venture Partners, LLC with a sale pending to Dennis and Almae Bennett who are anticipated to build a facility for a wholesale Janitorial supply service. SID Lot No. 11 is currently owned by Montana Ventures, LLC with a sale pending to Ronald Sharpe who is anticipated to build a facility for a janitorial. supply service. Given the interactions between City staff and the partners of Montana Venture Partners, LLC, it is reasonable to conclude that the lots, in the District will be a desirable place to locate industrial, commercial, and technology business facilities. (c) CoMparison, of ial Assessments and Property Taxes and Market Value. The City has analyzed the amount of assessments and property taxes against each lot, parcel or tract in the District. The City has determined that there are no industrial development bonds secured by a mortgage against the District. The City concludes that, overall, the estimated market value of the lots, tracts, or parcels of land in the District well exceeds the sum of special assessments and current assessments, with the estimated market value after the Improvements of such lots, tracts,, or parcels totaling $7,225,078, and the estimated sum of the current assessments and taxes (based on the November 2004 tax bill, and accordingly, not including the Improvements) against such property totaling less than $1,500.00. (d) Delinquencies. An analysis of the amount of delinquencies in the payment of -o-uts-tand _asse ing_--sp - - -------- --prQp axes levied I nst the _!�r n the District Agai ..... ... .......... ............. .. .. ..... - --- ----- ----------------- shows that none of the properties in the District 'is delinquent (e) The Public Benefit of the Improvements. The construction of the Improvements -to the District will enhance the opportunity for eco nomic development in the City and provide for traffic circulation throughout the District. The construction of the Improvements will also provide for safe access to and from Demersville Road. The Improvements include widened road curb and gutter, underground drainage in place of open ditches, sidewalks, handicap sections, ramps, . a walking path, street lighting, and street trees and other landscaping. The proposed Improvements will increase roadway efficiency. The proposed Improvements include both pedestrian facilities and automobile roadways that do not now exist or are not presently available in needed locations. Installation of these Improvements will promote safe and functional access to the businesses that will be located in the District. This will further increase public safety in the area and promote the public welfare. (f) Newly Platted Develonment. SID Lot Nos. 1 through 17, as identified on the attached EXHIBIT C, has been preliminarily approved as a PUD and is not scheduled for further subdivision. The City, based upon information provided by Montana Venture Partners, LLC, anticipates that the properties in the District will be developed with industrial, commercial and technology facilities that will compliment the uses, and that it is realistic to expect that the area to be developed will be fully developed within four years. (g) Other Factors. The Improvements are anticipated to integrate the area and help to facilitate the more efficient delivery of services to the area, thereby assisting the public at large as well as the particular properties in the District. The aesthetics, safety, and uses of the property are expected be advanced by the Improvements. Section 10. Reimbursement Expenditures. 4 10.1. Re tions. . The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, such as the Bonds,, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of the Bonds. The final regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the ori "nal expenditure. The Regulations also generally require that tax- 91 exempt bonds, such as the Bonds, be issued and the reimbursement allocation made from the proceeds of the tax-exempt. bonds within eighteen (18) months (or three (3) years, if the reimbursement bond issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) after the later of (i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies for the "'small issuer" exception from the arbitrage rebate requirement) in no event more than three. (3) years after the date the expenditure is paid. 10.2. Prior Expenditures. The City has not made or paid any expenditures With respect to the District and the Improvements more than sixty (60) days before the date of adoption of this Resolution other than (i) expenditures to be paid or reimbursed from sources other than the Bonds, (10 expenditures constituting preliminary expenditures within the meaning of the Regulations, or (iii) expenditures in a "de minimus" amount, as defined in the Regulations. 10.3. Declaration of Intent. The City reasonably expects to reimburse the expenditures made for costs of the Improvements out of the proceeds of the Bonds after the date of payment of an or a portion of the costs of the Improvements. All reimbursed expenditures shall be capital expenditures, a of the Bonds or other exvenditures eligible for reimbursement under the Regulations. ............ ...... . ........... ..... ... - --- ---- --- ----- ---- 10.4. Budgetga Matters. As of the date of this Resolution, there are no City funds reserved,, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to the. Improvements, other than pursuant to the issuance of the Bonds. The statement of intent contained in this Resolution, therefore, is consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 10.5. Reimbursement Allocations. The finance officer of the City will be responsible for making the "'reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the -costs of the Improvements. Each allocation will be (i) evidenced by an entry on the. official books and records of the City maintained for the Bonds or the Improvements and (1*10 shall specifically identify the actual original expenditure being reimbursed. Section 11. Publication of Passage _and Adoption of this Resolution of Intention. By this Resolution.9 the City Clerk is authorized and directed to publish notice (the "Notice") of passage and approval of this Resolution and the intention of the City to create the District. The Notice shall be published in the Daily Inter Lake, a newspaper of general circulation in Flathead County, on October 18, October 25 and November 1. 2005, all in accordance with the requirements of Section 7-12-4106 of the Act and Montana Code Annotated, Section 7-1-2121, as amended. The form of the Notice currently on file with the City Clerk is hereby approved. The City Clerk is also authorized and directed, as required by Section 7-12-4106(2) of the Act, to mail or cause to be mailed a copy of the Notice to every person, firm, corporation, or the agent of such person, firm, or corporation having real property within the District listed in their name upon the last completed assessment roll for state, county, and school district taxes,, at the last -known address, on or before the same day the Notice is first pubUshed. Section 12. Protests of the Resolution of Intention. Section 7-12-4110 of the Act sets forth the requirements for a protest against the proposed Improvements or against the extent or creation of the District, or both. Any owner of real property within the District subject t o- assessment and taxation for the cost and expense of making the Improvements may, until 5:00 p.m., M.T. within fifteen (15) days after the date of the first publication of the Notice (the "Protest Period") may make and file with the City Clerk a written protest against theproposed Improvements or against the creation of the District or both. The Protest Period ends at 5:00 p.m. M.T. on November 2, 2005. Upon receipt of one or more written protests during the Protest Period, this City Council will, at its next regular meeting after the expiration of the Protest Period, proceed to hear all protests properly made and filed with the City Clerk. The first regular meeting for the City Council after the end of the Protest Period is scheduled to be held on November 7. 2005, at 7:00 p.m., in Council Chambers at City HaR, 312 1st Avenue East, in Kalispell, Montana. PASSED AND ADOPTED by the City Council of the City of Kalispell, Montana, as of the 3rd day of October, 2005. - ATTEST: .......... Theresa White City Clerk Pamela B. Kenned-� Mayor 2 EXHEBITA NL4LP OF SED 344 5"Visio" "" or OLD SCHOOL STATION A V4, 5KHm 33, TM POW, P.M.. K fthad Coumy. Momom 406M 0ousaw vow QD Lffi- A-1 EXHIBIT B DESCRIPTION OF SID 344 BOUNDARIES The District is located just east of Highway 93 on Demersville Road approximately 1.9 miles south of Four Corners intersection and directly east of the Rocky Cliff Road intersection and is legally described a s.', Assessors Tract 2 or Parcel A of Certificate of Survey No. 16337 in the SW 1/4 of Section 33, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana EXHIMIT C LIST OF SID LOTS AND OWNERS SID 344 Lot No. Property Owner Prqp��q Owner's Address 1 Fun Warehousers II, LLC 2 Montana Venture Partners, LLC 3 Montana Venture Partners, LLC 4 Montana Venture Partners, LLC 5 Montana Venture Partners, LLC 6 Montana Venture Partners, LLC 7 Montana Venture Partners, LLC 8 Montana Venture Partners, LLC 9 Montana Venture Partners, LLC 10 Montana Venture Partners, LLC with a sale pending to Dennis and Almae Bennett 11 Montana Venture Partners, LLC with a sale pending to Ronald Sharpe 12 Montana Venture Partners,, LLC 13 Montana Venture Partners, LLC 14 Montana Venture Partners, LLC 15 Montana Venture Partners, LLC 16 Montana Venture Partners, LLC 17 Montana Venture Partners, LLC 1190 Highway 2 West, Kalispell, Montana 59901 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kali -spell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 1896 Airport Road, Kalispell, Montana 59901 P.O. Box 1477,, Kalispell, MT 59903-1477 P.O. Box 7516,, Kalispell, Montana 59904 P.O. Box 1477,, K�alispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 P.O. Box 1477, Kalispell, MT 59903-1477 C-1 EXHIBff D LISTING OF PROPOSED ASSESSMENTS Lot No. Estimated Cost Per Lot* 1 1 �0073,163.96 2 4407694-24 3 6747963.07 4 4545,135.89 5 1735,781-39 6 144)977-84 7 1447017-73 8 256�351.55 9 260,192.02 10 117J34.42 11 981�892.17 12 94�091-58 13 973,932.05 14 2291,468.24 15 177�621.86 16 87�370.75 17 9L211.23 *Interest will be determined as of the time of the sale of the Bonds. KA225-001 (BWJ) 268096v-4 D-1