07-24-19 Urban Renewal Agency Board MinutesCity of Kalispell
Post Office Box 1997 -Kalispell, Montana 59903
1
1.-..1SPELL
Telephone: (406) 758-7701 Fax: (406) 758-7758
Meeting Summary
URBAN RENEWAL AGENCY BOARD
SPECIAL MEETING: JULY 241 2019 —4 P.M.
CITY HALL — FIRST FLOOR CONFERENCE ROOM
MEMBERS IN ATTENDANCE
Chairman Marc Rold
David Girardot
Jeff Zauner
OTHERS IN ATTENDANCE
Jerry Meerkatz Brent Brown
Kim Morisaki Dusty Emmert
John Shryock Jill Cooper
Tom Rygg
Chairman Rold called the meeting to order and welcomed the Public, Board and City Staff.
Introductions.
PUBLIC COMMENT - None.
DEVELOPER DISCUSSION: PROJECT CHALLENGES AND CORE AREA & DOWNTOWN TIF INCENTIVES
Jerry Meerkatz provided an overview of the current status of the CHS site transfer to Flathead County
Economic Development Authority (FCEDA), no later than November 1, 2019, the agreement allows for
developers to purchase the property ahead of the transfer. FCEDA has been talking with a number of
developers interested in Core Area properties, the City of Kalispell's impact fees are often a point of
discussion. Kim Morisaki added that the development incentive in the Core Area is the Kalispell Trail, funded
by West Side TIF dollars. She also encouraged the City to pursue changes to implementing TIF requests to
provide more certainty regarding TIF funding for redevelopment.
Brent Brown and Dusty Emmert explained that Greenway Capital/Greenway Development Group builds,
develops and stays becoming a part of the community, specializing in affordable housing. Their current
affordable housing project in Columbia Falls is nearly complete. Affordable rent rates means keeping costs
under control, including the cost of the land. Greenway is very transparent about the cost of their projects,
product and construction. Columbia Falls impact fees are $2,500 per unit and the highest impact fees
anywhere Greenway has developed. Considering Kalispell's impact fees at $7,500 the same project done in
Columbia Falls cannot be built. Demand for their product is here but the question is how can the right product
at the right price be achieved? Greenway put together a redevelopment plan with the City of Springfield,
Missouri driven by the idea of encouraging redevelopment within the plan area, which includes a tax
abatement. It was stated that there is uncertainty surrounding West Side TIF incentives and the suggestion of
a redevelopment plan for the area to include housing, retail, commercial space and industry was made. In
Columbia Falls impact fees are based on fixture count, impact fees were 3% of the overall construction cost of
the project, in Kalispell that number would be roughly triple that amount. Jill Cooper shared that upgraded
finishes were used in the Columbia Falls project, granite countertops, stainless steel appliances and vinyl wood
flooring upgraded to plank, these upgrades were not required of the project but Greenway wanted to provide
the community a very nice product. Though costs could be cut to accommodate impact fees, a project that
looks good, lasts and attracts clientele into the Core Area is more important and the type of project that
Greenway invests in, can be proud of and will last for a long time.
Chairman Rold clarified the URA Board makes recommendations to City Council regarding the TIF Districts, not
the calculation of impact fees.
There was discussion regarding how impact fees are calculated and what changes can be considered and how
those changes could be implemented. The impact fee report is on the City website. Currently, commercial
project impact fees are based on fixture count, multifamily projects are based on square footage
improvements area and water meter size.
Greenway is interested in doing a project in Kalispell, which is why they are talking with the URA today. They
are willing to share information to work through this process and continue the discussion.
Next month the URA will review West Side and Downtown TIF policies and make a recommendation to
Council.
Chairman Rold thanked meeting attendees and adjourned the meeting.