09-29-10 Urban Renewal Agency Minutes0 16WA111 MI&SM 014 L
FOR BUSINESS. FOR LIFE. MNA
City of Kalispell • www.kalispell.com
AGENDA FOR 09/29/10 URA MEETING
1.) CALL TO ORDER:
2.) AGENDA:
3.) PUBLIC COMMENT:
4.) OLD BUSINESS:
201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
• Glacier Investment Properties claim for Old School Station TIF funds. Memo from
City Attorney.
• Tabled item: Avail-TVN request for funding from South Kalispell TIF.
• South Kalispell TIF: Follow-up to determine if the TIF can be prepaid, and if so can
the TIF mature early.
• Old School Station: joint meeting with the City Manager, the lending institution that
is financing the project and the principle owners of the project.
5.) NEW BUSINESS:
• Gateway Community Center request from the Westside TIF.
6.) ADJOURN MEETING:
1
201 1st Avenue East
on'
nN T ,T Kalispell, MT 59901
■ir Phone:406.758.7738
FOR BUSINESS. FOR LIFE. MONTAMi "'q Fax: 406.758.7758
City of Kalispell - www.kalispell.com
SUMMARY OF ACTIVITIES OF 09/15/10 URA MEETING
MEMBERS IN ATTENDANCE:
Marc Rold - Chairman
Tom Lund — Vice Chairman
Richard Kuhl
Shannon Nalty
Suzanne Faubert
OTHERS IN ATTENDANCE:
City of Kalispell RLF Manager; Wade Elder
MEMBERS ABSENT:
None
Members had been E-Mailed an agenda and minutes of the 08/25/10 meeting prior to
the meeting.
The URA met on September 15, 2010 at 4pm.
Chairman. Rold called the meeting to order.
Reviewed the prior meetings "Summary of Activities" that was E-Mailed to members.
There was a comment from Chairman Rold to delete the number "67" from the Public
Comment section. Wade indicated this would be done.
Public Comment:
Old Business: Glacier Investment Properties claim for Old School Station TIF Funds.
The committee made 2 conclusions 1.) The request does not meet current funding
request requirements. 2.) Regarding the prior claim of 2008 the committee does not take
any position on this. There has been previous activity on this request with no other
supporting documentation. It was recommended that it be remanded to the City
Attorney.
New Business:
1.) South Kalispell TIF Discussion. Reviewed the financials & other documents of
the South Kalispell TIF. The Committee had a question that requires research
from Wade: Can the bond be prepaid, and if so what happens to the maturity
date?
2.) Discussion on Enterprise Funds VS. TIF Funds. Had discussion regarding the
separation of enterprise funds and TIF funds.
3.) $21,050.66 request of South Kalispell TIF funds from Avail-TVN. Item was tabled
to allow the Committee to do some further investigation. Wade is to talk with the
City Airport Manager and ask if satellite dishes will cause interference with the
airport. Wade is to get back to Mike Kazmier of Avail-TVN to tell him the
committee is still working on this and will review at the 09/29/10 meeting.
4.) Discussion on Old School Station (OSS) TIF: Discussed the recent conversations
the City has had with the lending institution that is financing this project as well as
the conversations the City has had with the owners of the project. Committee
was given a copy of the letter from Builder Boyd in which they have indicated an
interest in purchasing the tax deed to 4 lots in the OSS project. Committee
requested a 3-way meeting with the City, the bank that is financing this project &
the owners to keep all parties apprised of ongoing activities.
End of Summary of Activities of 09/15/10.
City of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
Date: September 20, 2010
To: Kalispell Urban Redevelopment Agency
cc: Wade Elder, Jane Howington
Tel 406.758.7709
Fax 406.758.7979
charball@kalispell.com
From: Charles A. Harball, Kalispell City Attorney
Subject: Request for Consideration by Glacier Investment Properties
Wade Elder asked that I provide a response to you to the August 23, 2010 letter
from Glacier Investment Properties requesting TIF consideration for its investment
in the Old School Station Technology tax increment district. I have been aware of
this general request and may be able to provide some helpful contribution to the
discussion.
As you are aware, Glacier Investment Properties constructed the building housing
the Morrison Mairle offices within the Old School Station Technology tax increment
district. Morrison Mairle was, in fact, the engineering firm that was employed by
the developer in the engineering of the Old School Station development. Sometime
after the completion of the Glacier Investment Properties building, principals of
that entity approached the City Manager requesting some TIF consideration for
their project. It has been asserted that assurances were provided to them by the
previous City Manager that such funds would be made available.
I have requested anything that might be in writing that would memorialize the
assurances that were made. Apparently such documentation does not exist and no
other staff member at the City has knowledge of any such assurances. Ideally, any
agreement regarding TIF consideration by the City would be signed, sealed and
delivered before any investment is made within a TIF district. Certainly, that has
been the policy of the City in the past and I am unaware of any previous instances
in which the City gave consideration after the fact. The incentive of the City to
provide TIF consideration is to provide the incentive to an investor to invest in a
way that meets the goals and objectives of a TIF district. Obviously, in this case,
the investment has already been made whether or not it meets any of the TIF
district objectives.
Memorandum Re: Glacier Investment Property Request for TIF consideration
September 20, 2010
Page - 2
Having said that, there may be other issues regarding this request into which the
URA may wish to inquire. The question might be asked if this particular project
has, or may in the future, act as a significant attractant to other developments
within the TIF district that meet the goals and objectives of the district. Are there
ways in which the City may wish to work with this applicant in the future in
developing this TIF district that will work to the benefit of both the applicant and
meet the goals of the TIF District? Even though looking back at what may have
been may not be productive, perhaps the applicant may be interested in looking
forward.
Office of City Attorney
City of Kalispell
KIrkALISI'EL
FOR BUSINESS. FOR LIFE. MO.NT"
Memo
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: Avail-TVN TIF Request.
MEETING DATE: September 29, 2010 — Regular URA Meeting.
BACKGROUND: At the 09/15/10 URA meeting we went through a TIF request from Avail-TVN for
$21,050.66. It was discussed that further investigation was requested covering the following areas.
1.) To see if Avail is planning on putting up satellite dishes and if they are allowable in the airport
restricted zone. I E-Mailed Fred and he has indicated they are not a problem for receiving signals but
there may be an issue with height restrictions if they were put on top of the building. Mike has verbally
indicated they will not be put on the building but put on the ground. (Fred's E-Mail attached)
2.) 1 have been in contact with Debbie Dillon also at CenturyLink and talked with her about the proposed
project. I asked her a couple of questions.
• Why Centruryl-ink would not pay the bill for this since they are getting the increased business
from Avail. Debbie's response was it is only speculated to be increased business and they have
not seen it yet. CenturyLink also does not expect in the near future any other customers in the
area that needing a fiber hook-up.
• 1 asked her if she would consider refunding any or all of the cost of running the fiber if Avail's
business picks up as expected. Debbie said she would check into this and would try to have an
answer for me on Monday 09/27/10.
Page 1 of 1
Wade Elder
From: Fred Leistiko
Sent: Wednesday, September 22, 2010 11:19 AM
To: Wade Elder
Subject: RE: Avail-TVN TV Dishes.
Wade:
The receiver/transmitters are not a problem. Any height addition above the current building height could be a problem
and must be looked at.
Fred A. Leistiko
Airport Manager
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
406-250-3065
From: Wade Elder
Sent: Tuesday, September 21, 2010 2:58 PM
To: Fred Leistiko
Subject: Avail-TVN TV Dishes.
Fred;
Stop by my desk or give me a call regarding Avail-TVN. They are looking to move into the old furniture store located at
2240 US Highway 93 South & putting about 5 TV receiving dishes in. My question is if they cause any problems for the
airport. My conversation with Mike Kazmier today indicates they are receiving only & do not send any signals.
Thanks
Wade
00 1111b Jimr.
FOR BUSINESS. FOR MUM
Wade E. Elder
City of Kalispell/ Revolving Loan Fund Program Manager
201 1st Avenue East
Kalispell, MT 59901
Office: 406-758-7738
Fax:406-758-7758
welder@kalispell. com
The information contained in this document and attachments is confidential and intended only for the person(s) named
above. If you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or any
other use of the information is strictly prohibited. If you have received this document in error, please notify the sender
immediately and destroy this document and attachments without making any copy or reproduction of any kind.
ALISPEL
FOR BUSINESS. FOR LIFE. MONTANA
Memo
TO: Z:ade
ban Renewal Agency (URA)
FROM: Elder, Revolving Loan Fund Manager
SUBJECT: South Kalispell TIF Prepayment.
MEETING DATE: September 29, 2010 — Regular URA Meeting.
BACKGROUND: As requested in the 09/15/10 URA meeting I have done research to see if the South Kalispell TIF
bonds can be prepaid and what impact that would have on the maturity date of the TIF.
The original TIF was created on 04/17/1997 by Ordinance No. 1260 and is in effect for 15 years.
The City Council passed Resolution No. 5051 on 09/06/05 in which they ratified the sale of Series 2005A and
Series 2005E Tax Increment Urban Renewal Revenue Bonds.
• The Series 2005A Bonds totaled $1,445,000.00. The maturity date of the final bond is 07/01/20. The
Bonds Stated Maturities in 2013 and later years are subject to redemption in whole or in part on 01/01/13.
• The Series 2005B Bonds totaled $555,000.00. The maturity date of the final bond is 07/01/10. The Bonds
are not subject to redemption prior to their stated maturities.
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FOR BUSINESS. FOR LIFE. MONIANA
Memo
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: Gateway Community Center TIF Request.
MEETING DATE: September 29, 2010 — Regular URA Meeting.
BACKGROUND: The Gateway Community Center (GCC) has requested funding from the West Side TIF. They are
requesting $322,093 in Request #1 and $273,765 in Request #2 for a total of $595,858.
The West Side TIF was established through Ordinance No. 1259 with an effective date of 04/17/1997. It was created to
assist, if necessary, in the redevelopment of the Gateway West Mall and the former Crop Hail Building and to assist in
the reconstruction of Meridian Road and associated projects such as providing storm drains in the area. It is scheduled
to sunset on 04/17/2012. (A copy of Ordinance No. 1259 is in the URA binder.)
The Tax Increment Urban Renewal Bonds for the West Side TIF were paid off on 06/30/2010.
There is presently $1,916,182 in the Westside TIF account with $125,000 in the budget for construction expenses this
year.
On 10/14/2004 Resolution No. 4942 was passed giving guidance for all TIF Districts. This Resolution covers a large
amount of detail and reading is necessary (a copy of the resolution & policy is included with this presentation). The policy
indicates that publicly owned utility improvements are to be given priority in funding vs. a request for on -site utility
improvements assistance in the form of a low interest loan. It indicates TIF funds may be utilized for a number of public
improvements, costs and public infrastructure. It grants authority to assist developers in implementation of
redevelopment projects and funding may be made available for low -interest loans for on -site work covering;
Landscaping; Site Lighting; On -site utility work & utility taps; Parking, paving & striping; Direct assistance in the
rehabilitation retention or development of affordable housing for low and very -low income residents. The funds loaned
have a 10% limit of the total project cost. Generally funding is provided for exterior improvements for either the loan
program or the Cities contributions.
On 02/04/2008 Resolution No. 5262 (a copy of the resolution & guidelines is included in this packet) was passed, which
established guidelines for financial incentives to create new jobs and increase the tax base. This Resolution calls for the
creation of at least 10 net full-time jobs and provide health care benefits to employees and pay at least the average wage
of $30,004 ($14.43 / hour) or the average wage for Flathead County, which of the last report dated 10/01/09 was
$32,136 / annum ($15.45 / hour).
GCC is requesting funding in Request # 1 of $322,093 broken out as follows:
$ 35,000
Phone / Security System
$228,685
Carpeting
$ 30,000
Electrical Upgrade
$ 4,140
Toilet Replacement
$ 8,930
Window Replacement
Page 1 of 2
$ 15,338 Contingency
$322,093 TOTAL Request # 1
Request # 2 is as follows:
$260,729 Meals on Wheels Kitchen
$ 13,036 Contingency
$273, 765 TOTAL Request # 2
The improvements being done are for generally interior enhancements to the property.
In GCC's application they indicate there will be 31 Full Time Equivalent (FTE) new jobs created at the various agencies
that will be housed at the GCC. Please see the GCC application page 6 for a break -down of the jobs created.
It is the intent of the Gateway Community Center to eventually purchase the facility and when that is completed to
propose a payment in lieu of taxes for a period of 5 years and then apply for a non-profit tax exemption status. The total
tax bill for 2009 on this property was $145,461 with all taxes being current.
Page 2 of 2