Tab 45 Ordinance No. 1557CERTIFICATE AS TO ORDINANCE AND ADOPTING VOTE
1, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell,
Montana (the "City"), hereby certify that the attached ordinance is a true copy of Ordinance 1557 entitled:
"AN ORDINANCE ESTABLISHING AN INDUSTRIAL TAX INCREMENT DISTRICT TO
ASSIST IN FINANCING NECESSARY INDUSTRIAL INFRASTRUCTURE TO
ENCOURAGE THE ATTRACTION, GROWTH, AND RETENTION OF SECONDARY
VALUE -ADDING INDUSTRIES TO THE CITY OF KALISPELL, MONTANA; PROVIDING
FOR DEFINITION OF TERMS; ESTABLISHING THE COSTS WHICH MAY BE PAID BY
THE INDUSTRIAL TAX INCREMENT DISTRICT TO BE CREATED BY THIS
ORDINANCE; CREATING AND APPROVING THE OLD SCHOOL STATION
INDUSTRIAL TAX INCREMENT DISTRICT OF THE CITY OF KALISPELL, MONTANA;
AND ESTABLISHING THE BOUNDARIES OF THE OLD SCHOOL STATION
INDUSTRIAL TAXINCREMENT DISTRICT; ESTABLISHING JANUARY 1, 2005 AS THE
BASE TAXABLE YEAR FOR THE OLD SCHOOL STATION INDUSTRIAL TAX
INCREMENT DISTRICT." (the "Ordinance"), on file in the original records of the City in my legal
custody.; that the Ordinance was duly adopted by the City Council of the City at a regular meeting on
November 21, 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 Ordinance
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has not as of the date hereof been amended or repealed.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, Karl Gabriel, Bob Herro_nRandy Kenyon, Tim
Kluesner, Duane Larson, Hank Olson, and Mayor 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 21st day of November, 2005.
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ORDINANCE NO. 1557
AN ORDINANCE ESTABLISHING AN INDUSTRIAL TAX INCREMENT DISTRICT
TO ASSIST IN FINANCING NECESSARY INDUSTRIAL INFRASTRUCTURE TO
ENCOURAGE THE ATTRACTION, GROWTH, AND RETENTION OF SECONDARY
VALUE -ADDING INDUSTRIES TO THE CITY OF KALISPELL, MONTANAO
PROVIDING FOR DEFINITION OF TERMS; ESTABLISHING THE COSTS WHICH
MAY BE PAID BY.. THE INDUSTRIAL TAX INCREMENT DISTRICT TO BE
CREATED BY THIS ORDINANCE* CREATING AND APPROVING THE OLD
SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT OF THE CITY OF
KALISPELL, MONTANA* AND ESTABLISHING THE BOUNDARIES OF THE OLD
SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT* ESTABLISHING
JANUARY 1, 2005 AS THE BASE TAXABLE YEAR FOR THE OLD SCHOOL
STATION INDUSTRIAL TAX INCREMENT DISTRICT,
WHEREAS, the City of Kalispell, Montana (the "City") is defined as a "municipality"
under Montana Code Annotated, Section 7-15-4283, as amended, for the purpose of creating an
Industrial District pursuant to Montana Code Annotated, Sections 7-15-4297 to 7-15-4299, as
amended, and being operated by the City pursuant to Montana Code Annotated, Sections 7-15-
4282 through 7-15-4293 and Montana Code Annotated, Title 7, Part 15, Chapter 43; and
WHEREAS, pursuant to Montana Code Annotated, Sections 7-15-4282 through 7-15-
4299, as amended (the "Act"), including Montana Code Annotated, Sections 7-15-4297 through
7-15-4299, as amended', the City Council (the '.'City Council") of the City may create an
Industrial Tax Increment District (as defined below) for the purpose of encouraging the attraction
and retention of secondary, value -adding industries to the City; and
WHEREAS, the City Council wishes to encourage the attraction and retention of
secondary, value -adding industries to the City-, and
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WHEREAS, secondary value -adding industrial industries require expensive infrastructure
improvements which are beyond the available resources of the City to provide; and
WHEREAS, the City Council of the City has determined, after a public hearing required
by the Act and receipt of public input, that there is a need for thi's Ordinance to create the Old
School Station Industrial Tax Increment District of the City of Kalispell, Montana and the City
Council wishes to enact this Ordinance. .
at which public hearing all persons were given an opportunity to be heard.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
Section 1. Definitions. In this ordinance the following terms have the meanings
indicated below.
(a) "Act" means Montana Code Annotated, Section 7-15-4282 through 7-15-
4299, as amended.
(b) "Actual Taxable Value" means the taxable value of taxable property at
any time, as calculated from the assessment roll last equalized.
(c) "Base Taxable Value" means the actual taxable value of all taxable
property within an urban renewal area, Industrial District, technology district, or
aerospace transportation and technology district prior to the effective date of a tax
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increment financing provision. Base Taxable Value may be adjusted as provided in
Section 7-15-4287 or 7-15-4293 of the Act. "Industrial District" means an Industrial Tax
Increment District created pursuant to Section 7-15-4299 of the Act.
(d) "Incremental Taxable Value" means the amount, if any, by which the
Actual Taxable Value at any time exceeds the Base Taxable Value of all property within
the Industrial Tax Increment District.
(e) "Industrial District" means a tax increment financing industrial district
such as the Industrial Tax Increment District, created pursuant to Section 7-15-4299 of
the Act.
(f) "Industrial Infrastructure Development Project" means a project
undertaken within or for an Industrial District that consists of any or all of the activities
authorized by Section 7-15-4288 of the Act.
(9) "Industrial Tax Increment District" means the Old School Station
Industrial Tax Increment Distr ict of the City of Kalispell, Montana designated as such by
the City Council 'in accordance with the provis'ions of the Act.
(h) "Infrastructure" means the acquisition,, construction, and 'improvement of
streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and offstreet
parking facilities, sewers, sewer lines, sewage treatment facilities, stonn sewers,
waterlines, waterways,, water treatment facilities, natural gas lines, electrical lines,
telecommunication lines, rail lines, rail spurs, bridges, publicly owned buildings, any
publ ic improvements authorized by (i) parts 41 through 45 of Chapter 12, (ii) parts 42
and 43 of Chapter 13, and (iii) part 47 of Chapter 14 of the Montana Code Annotated,
and items of personal property to be used in connection with improvements for which the
foregoing costs may be incurred.
(1) "Tax Increment" means the collect -ions realized from extending the tax
levies, expressed in mills, of all taxing bodies which the Industrial Tax Increment District
or a part thereof is located, against the Incremental Taxable Value.
0) "Taxes" means all taxes levied by a taxing body against property on an ad
valorem basis.
Section 2. Pulpose. The purpose of this Ordinance is to (i) create an Industrial Tax
Increment District to be known as the Old School Station Industrial Tax Increment District of the
City of Kalispell, Montana, (ii) to encourage the growth and retention of secondary, value -adding
industries in the City, and (iii) provide a financial mechanism for the installation and
construction of infrastructure improvements for industrial development.
Section 3. Find=s, Determinations, and Declarations. Based on representations
made by Montana Venture Partners, LLC to City staff and the City Council and the work of City
staff to date, the City Council, by this Ordinance, makes the findings, determi nations, and
declarations set forth in (a) through (g) below.
The City Council of the City of Kalispell, Montana hereby finds, determines, and
declares that:
(a) this Ordinance . and the formation of the Industrial Tax Increment District,
as proposed, will facilitate the development of the necessary Infrastructure to support
industrial growth within the Industrial Tax Increment District;
(b) the passage of this Ordinance and the establishment of the Industrial Tax
Increment District fall within the economic goals adopted by the City Council and the
adoption therefor is in the public interest;
(c) the Industrial Tax Increment District consists of a continuous area with an
accurately described boundary;
(d) the Industrial Tax Increment District is zoned for light or heavy industrial
use in accordance with the City's master planning documents;
(e) the Industrial Tax Increment District does not include any property located
within an existing urban renewal area district created pursuant to the Act;
(f) the land in the Industrial Tax Increment District is currently deficient in
Infrastructure improvements for industrial development; and
(g) the purpose of the Industrial Tax Increment District is the development of
Infrastructure to encourage the growth and retention of secondary, value -adding
industries 'in the City.
Section 4. Costs which may be paid,, by the. Ci1y,from Tax Increments. The Tax
Increment received by the City from the from the Industrial Tax Increment District may be used
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to pay any costs or obligations incurred for an Industrial Infrastructure Development Project ('in
the Industrial Tax Increment District) including those listed in (1) through (14) below.
The costs that may be paid with Tax Increments are.*
(1) land acquisition;
(2) demolition and removal of structures,-
(3) relocation of occupants;
(4) Infrastructure;
(5) to prepare an industrial development plan;
(6) to organize, coordinate, and direct the administration of this Ordinance;
(7) to conduct appraisals, title searches, surveys, studies, and other preliminary plans
and work necessary to prepare for the undertaking of Infrastructure Development
Projects;
(8) acquisition of infrastructure -deficient areas or portions thereof;
(9) administrative costs associated with the management of the Industrial Tax
Increment District;
(10) assemblage of land for development or redevelopment by private enterprise or
public agencies, including sale, initial leasing, or retention by the City at its fair
value,-
(11) the compilation and analysis of pertinent information required to adequately
determine the 'infrastructure needs of secondary, value -adding industries in the
Industrial Tax Increment District-
(12) the connection of the Industrial Tax Increment District to existing 'Infrastructure
outside the Industrial Tax Increment District',
(13) the provision of direct assistance to secondary, value -adding industries to assist in
meeting their infrastructure and land needs within the Industrial Tax Increment
District-,
(14) the Tax Increments received may be pledged, pursuant to Section 7-15-4290 of
the Act, for the payment of the principal of, premium, if any, and interest on
revenue bonds issued for Industrial Infrastructure Development Projects,, general
obligation bonds, revenue bonds, or special assessment bonds issued to pay
Industrial District costs described in Section 7-15-4288 of the Act, including (i)
the items listed in (1) through 13 above or (1*l*) any other costs otherwise
authorized to be paid under the terms of the Act.
Section 4. Boundaries. The boundaries of the Industrial Tax Increment District are
(i) described in Exhibit A attached hereto and made a part hereof, and (ii) are shown on the map
attached hereto as Exhibit B.
Section 5. Base Year. For the purpose of calculating the Incremental Taxable Value
each year for the life of the Industrial Tax Increment District, the Base Taxable Value shall be
calculated as the taxable value of all property within the district as of January 1, 2005.
Section 6. Term of the Industrial Tax Increment District. The Industrial Tax
Increment District will terminate upon the later of:
(a) the fifteenth (15 th) year following the creation of the Industrial Tax
Increment District; or
(b) the. payment or provision for payment in full or discharge of all bonds
(including special assessment bonds) for which the Tax Increment has been pledged, and
the interest thereon.
After termination of the tax increment financing provision, all taxes shall be levied upon
the actual taxable value of the taxable property in the Industrial Tax Increment District and shall
be paid into the funds of the taxing bodies levying taxes within the Industrial Tax Increment
District.
Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30)
days after its final passage and adoption by the City Council of the City.
Section 8. Conflict with other Ordinances and Resolutions. All parts of ordinances
and Resolutions in conflict with this Ordinance are hereby repealed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 21ST DAY OF NOVEMBER, 2005.
ATTEST:
Theresa White
City Clerk
EXMBITA
SHORT DESCRIPTION OF THE PROPOSED INDUSTRIAL TAX INCREMENT
DISTRICT
The proposed Old School Station 'Industrial Tax Increment District of the City of
Kalispell, Montana 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 situated within that property that is legally described as that portion of Parcel A of
Certificate of Survey No. 16337 in the SW 1/4 of Section 33, Townshi 28 North, Range 21
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West, P.M.M., Flathead County, Montana. The portion of the property dedicated to the
industrial tax increment district 'i's proposed to be Uts 11, 12, 13, 14, 15, 16, and 17 as shown in
the drawing entitled "Old School StatioW' and attached hereto and incorporated fully herein by
this reference. These seven lots comprise a total of approximately 9.13 acres.
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EXHIBIT B
MAP OF THE PROPOSED INDUSTRIAL TAX INCREMENT DISTRICT
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OLD SCHOOL STATION
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