Tax Increment Financing Application ProcessCity of YC'Slispell
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IMPORTANT: The material included below outlines the Tax Increment Financing application
process and the responsibilities of the Applicant and the City of Kalispell. Please review this
information careftffly before submitting the application forms or finalizing your development plans.
Failure to reuqvg oval of AaSC09jpjJgtg4 plication BEFORE pisiti n of er�, and
--Anp ap�
or construction begims may affect he _ l s ...i l nmnFinance
assistance from the Citv of p . Kalis ell
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Tax Increment Financing (TIF) is an important element of economic development in the City of
Kalispell as a means to finance development activities. The TIF program operates by first
establishing a base year taxable value for all properties within the designated boundary. In the case
of the Airport/Athletic Complex TIF, the base year is 1997. Property taxes from that district
continue to be paid to all taxing jurisdictions on the basis of the 1997 base year valuation. All
increases in property taxes in the District above this base valuation due to new development or
reappraisals are assigned to the City of Kalispell to be used to finance eligible activities within the
Airport/Athletic Complex TIF. Pursuant to Montana Code Annotated, Title 7, Chapter 15, Part 42,
as amended (the "TIF Act"), the City of Kalispell established the Airport/Athletic Complex TIF as
an Urban Renewal Tax Increment District.
The AiWort/Athletic Complex TIF was established for the purpose of providing a financial
mechanism to provide the necessary infrastructure support to encourage the growth of secondary,
value -adding businesses in the City and the development of an expanded and updated airport
complex. The tenants of the Airport portion of the District must be aviation oriented businesses,
while the tenants outside of the airport boundaries can be any business that can meet the
requirements of the Airport Affected Area Ordinance # 1573 adopted April 17, 2006 by the City of
Kalispell and Flathead County. Applications for TIF assistance in Airport/Athletic Complex TIF
are subject to program eligibility analysis and project review criteria listed below. In addition,
project applications will be accepted and processed in the order in which they are received and
approved based on the availability of funds.
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Property must be; within the City Limits of the City of Kalispell; located within the Urban
Redevelopment Plan area; and/or located on the City Airport property to be eligible for funding
activities. Pursuant to Section 7-15-4290 of the TIF Act, the City may pledge tax increment derived
from the District to the payment of special assessment bonds issued to pay district costs. Eligible
costs to be paid by the City with tax increments include public improvements authorized to be made
pursuant to the Special Improvement District (SID) Act. Certain tax increment revenues derived
from the District will be available, to the extent provided herein, for the payment of and pledged to
the cost of the linprovements or paying on the Bonds.
Anyone seeking TIF assistance from the City of Kalispell must submit a written application. Th*
following procedure has been developed to expedite the review of TIF funding requests:
1. Initial Contact. Contact the City of Kalispell, Airport Department (if on Airport Property) or
the CO mr-n—urd-hy and Economic Development Department, 201 First Avenue East, to discuss
the project and determine eligibility for TIF assistance.
2. ComDlete an Ap-Dlication. The Applicant must prepare an application for each funding
request. Community and Economic Development (CED) Department staff or the City
Airport Manager will assist the Applicant in preparing an application. For all TIF requests
the Applicant must complete a "Developer's Statement of Qualification and Financial
Responsibility" which includes submittal of personal financial statements.
3. Staff Review. Upon submittal of all necessary information, the City staff will review the
merits of the project and the need for funding. At any point in the review process the staff
may request more information of the Applicant or solicit comment on the project from other
public agencies. Items included in personal financial statements will not be subject to public
review or presentation to or comment by other agencies and will be kept confidential.
4. Incentive Agreement. If TIF assistance is approved, the City of Kalispell and the Applicant
must execute a legally binding Incentive Agreement/Developers Agreement which
establishes the terms and conditions of the start and completion of the project and may
require the Applicant to guarantee repayment of TIF assistance if the terms of the
Agreement are violated by the Applicant.
IMPORTANT -- N - 0 - TE - : Costs to be paid with TIF monies may not be incurred by the
Applicant prior to funding approval and the satisfaction of any conditions of such
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Materials contained in TIF applications are used to assess the merits of projects in relation to the
goals and objectives of the Airport Redevelopment Plan. To measure the public benefit derived
from the project, the City evaluates projects based on the following criteria. Each project is judged
on its own merit; therefore, no weight is given to any of the criteria. However, the first six critel
7-re the most important in evaluating projects.
I Economic Stimulus: The amount of economic activity to be generated by the project
assessed, as well as the leverage ratio of public to private investment. In general, the 1*
of participation in any one project is 10% of the construction/rehabilitation costs, exclusi
of acquisition cost. Projects clearly demonstrating extraordinary benefit to Airport or t
community may, at the discretion of the City, receive additional TIF assistance for eligib
items. All applications should contain credible, measurable information substantiating
s t i t t
project's economic stimulus to the Airport and the City.
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2. Tax Generation: The increase in taxable value due to new construction/rehabilitation
estimated by the City to determine tax increment generation.
3. Employment Generation: Total employment generated by the project assessed in terms
new permanent and part-time jobs, wage levels and benefits provided.
4. lmvact Assessment: The extent of both positive and negative environmental impacts,
appropriateness of the project design, and impact on existing businesses.
5. Financial Assistance: Other forms of financing available to the Applicant. Lender
participation, industrial development revenue bonds, and state and federal grant monies, for
example, are examined to assess the need for TIF assistance.
6. Developer Abilily to Perform: An assessment of the Applicant's capability to undertake the
relative complexities of the project based on past performance on similar projects.
7. Timely CoMpletion. The feasibility of completing the project according to the Applicant's
project schedule.
8. P"ment of Taxes: All property taxes, special improvement district assessments, and other
assessments on the project property must be paid to date.
9. On AiMort Projects: All projects that are located on Airport Property must meet standards
established by the Federal Aviation Administration (FAA) and the Kalispell City Airport
Standard Operating Procedures and Airport Building Standards. (Airport Manager will
provide these documents)
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City of Kalispell
Airport/Athletic Complex
Project Name: Date Submitted:
MOIRITT�t 4 M
2. Address:
Address:
3. If property is not owned by the Applicant, list leasehold interests: (Attach evidentiary materials.)
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Employment: Number of retained positions: FTE PTE_
Number of new positions to be created: FTE PTE
Average starting wage $ Hour Average wage $ Hour
Attach an Excel spreadsheet briefly listing and describing the job classifications with the
average wage noted by each job classification. Provide a ramp -up schedule of when the
positions are anticipated to be created and filled.
Provide a synopsis of the fringe benefits provided to employees.
S. - Architectural firmi:
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6. Description of project: (Attach narrative explanation.)
7. Rehabilitation/construction plans: (Attach narrative explanation.)
8. Project schedule: (Attach time line or schedule through completion.)
1. Lot #
2. Facility
3. Landscaping
�. Equipment
5. Other
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PROJECT FINANCING
Please complete Sources of Funds detail and summary below.
Devel2ptr Eguity
Cash Invested $
Land & Buildings $
Other (Specify) $
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Subtotal $
Lender Commitments (Attach evidence lx, Letters of Credit or other documentation.)
Lender Loan Aniount Interest Term Payment/Period
$ % $ /Month
$ % Yrs $ /Month
Total Loan Amount $
TIF Regue t
Eligible activity
Amount requested
Applicant
1. Name:
2. If the Applicant is not an individual doing business under his/her own name, the applicant
has the status indicated below and is organized or operating under the laws of
A corporation
A nonprofit or charitable institution or corporation
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A partnership known as
Other (Explain)
Date of organization:
Names.-addres-ae - position titles-- and nature and
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principal members, principal shareholders, investors, or partners of the Applicant:
Name and Address Nature and Extent of Interest
1. Provide a current financial statement for each private entity involved in the project.
Documentation of financial capacity may include net worth statements, balance sheets, o
profit and loss statements. (This information will be kept confidential, subject to challeng
in a court of law.)
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2. Has the Applicant or any individual or entity affiliated with the development of this proi
been adjudged bankrupt, either voluntarily or involuntarily, within the past ten years?
No — Yes if yes, list date, place, and under what name:
0, Has the Applicant or any individual or entity affiliated with the development of this project
been indicted for or convicted of any felony within the past 10 year?
No — Yes if yes, list the date, charge, place, court and action taken for each case:
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C. Has such contractor or builder ever failed to qualify as a responsible bidder, refused to enter
into a contract after an award has been made, or failed to complete a construction or
development contract within the last 10 years? No Yes If yes, explain:
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I (we), (please print),
Certify that the statements and estimates within this Application as well as any and all
documentation submitted as attachments to this Application under separate cover are true and
correct to the best of my (our) knowledge and belief.
Name
Signature
Title
IM
Name
Signature
Title
M
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Airport Manage
201 I't Avenue Eals,
Kalispell, MT 59901
406-250-3065
4 Lir ppr&aka fisp e I I a c o m
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