Resolution 5409 - TABLED INDEFINITELY - Ashley Square TIF Project12/7/09 TABLED
INDEFINITELY
I;1 X181 RN 019109083MIII9
A RESOLUTION RELATING TO THE WESTSIDE URBAN RENEWAL PLAN FOR THE
CITY OF KALISPELL; APPROVING A CERTAIN PROJECT AS AN URBAN RENEWAL
PROJECT AND AUTHORIZING THE NEGOTIATION OF A DEVELOPMENT
AGREEMENT WITH BLUMCO PARTNERS LLC & PENTANA GROUP LLC WITH
REGARD TO SAID URBAN RENEWAL PROJECT, PLEDGING UP TO $450,000.00 OF
TAX INCREMENT REVENUE CASH FLOW FOR PUBLIC INFRASTRUCTURE
IMPROVEMENTS NECESSARY UNDER A DEVELOPMENT AGREEMENT TO BE
NEGOTIATED BETWEEN THE CITY OF KALISPELL AND BLUMCO PARTNERS LLC
& PENTANA GROUP LLC.
WHEREAS, under the provisions of the Montana Urban Renewal Law, the City Council of the
City of Kalispell, Montana, did adopt Resolution No. 4309 finding that 1) blighting
conditions exist within the area of the West Side Urban Renewal District, and 2) that
rehabilitation, redevelopment or a combination thereof, within the area is necessary in
the interest of public health, safety and morals or welfare of the residents of the City
of Kalispell; and
WHEREAS, on the 11a' day of March 1997, after proper review by the Planning Board and public
hearing, the City Council of the City of Kalispell passed Ordinance 1259 approving
the Westside Urban Renewal Plan for the City of Kalispell, Montana as an urban
renewal plan; providing for the segregation and application of tax increment in the
Westside Urban Renewal Plan and authorizing the City Manager to implement the
Plan with the powers contained in the urban renewal law; and
WHEREAS, on February 4, 2008 the Kalispell City Council passed Resolution No. 5262
establishing guidelines to define the eligibility of new and expanding businesses to
which the City of Kalispell may offer potential financial incentives and to identify the
financial incentives that may be offered by the City to include the use of tax
increment financing funds; and
WHEREAS, Resolution No. 5262 identifies eligible businesses to receive tax increment financing
funds to:
a) be manufacturing, technology, office, professional or technical service
firms that are financially sound with balanced and prudent business plans; and
b) meet statutory tax increment financing requirements if the business is to
be located within a TIF District or other statutory or regulatory requirements
of the underlying funding mechanism; and
c) which create at least 10 net new full-time positions; and
d) provide health care benefits to the employees; and
e) pay at least the average wage of $30,004 or the average wage for Flathead
County as determined by the Montana Department of Commerce; and
WHEREAS, certain property included within the Westside Urban Renewal Plan and existing at the
time the plan was implemented is commonly known as the Ashley Square Shopping
Center generally bounded by US Highway 2 and Corporate Drive, the majority of
such property now being owned by Blumco Partners LLC & Pentana Group LLC,
each being Montana limited liability companies; and
WHEREAS, Blumco Partners LLC & Pentana Group LLC have submitted a proposed project to
the City Department of Community and Economic Development in which it proposes
to invest approximately $4.9MM into the subject property, renovating 63,500 square
feet at an estimated cost of $75 per square foot and to create fifteen new jobs within
the refurbished center; and
WHEREAS, the proposed project by Blumco Partners LLC & Pentana Group LLC meets the
criteria of Resolution 5262 and otherwise meets all other criteria of tax increment
funding; and
WHEREAS, based upon the estimated creation of 15 new jobs at the wage and benefit package
anticipated the proposed project will be eligible to receive up to $450,000 of tax
increment financing funds from the Westside Tax Increment Fund to assist in
rehabilitation of eligible public infrastructure within the proposed project which
would otherwise not be rehabilitated.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION L That the proposed project by Blumco Partners LLC & Pentana Group LLC
for the rehabilitation of that property commonly known as Ashley Square
Shopping Center is found to be eligible to receive up to $450,000 from the
Westside Tax Increment District Fund based upon the terms and conditions of
a Developers Agreement which the City Manager is hereby authorized and
directed to negotiate with the applicants and to be brought before the City
Council for final approval. Such funds shall be appropriated at such time as
the Developers Agreement is approved by the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 7TH DAY OF DECEMBER, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk