2011/2012 Tax Increment Finance (TIF) Annual ReportCity of Kalispell
Tax Increment Financing Districts
Annual Report
2011-2012
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Prepared by:
Kalispell Urban Renewal Agency and
Community and Economic
Develop ment Department
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City of Kalispell Tax Increment Finance Districts
September 15, 2011
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Kalispell City Limits Boundary
Airport TIF
Westside TIF
Old School Station TIF - Industrial
Old School Station TIF Technology
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Introduction
The intent of this report is to provide a comprehensive understanding of existing Tax Increment
Financing (TIF) Districts. Knowledge of TIF projects and other actions related to TIF in
addition to financial reports serve to improve TIF management and implementation on behalf of
the community. This report documents Kalispell Tax Increment Financing Districts for the
period September 2011 through September 2012 and to provide adequate information for review.
Summary
Tax Increment Financing District law is found at Title 7, Chapter 15, Parts 42 and 43, of the
Montana Code Annotated. In Kalispell, applications for Tax Increment Financing are accepted
through the Community and Economic Development Department, reviewed and considered by
the Urban Renewal Agency and ultimately decided by City Council.
$41,785,560
$ 3,676,477
$ 5,392,074
$ 1,715,597
The Montana Department of Revenue 2011 Certified Taxable Valuation Information annual
report is the source of all current taxable, base taxable and incremental values utilized in this
report. The Department of Revenue's information for the Kalispell City taxing jurisdiction was
certified July 29, 2011. Note that certification of values is determined on a single day in the
calendar year and therefore provides a "snapshot" of value. It is not uncommon for values to
vary between the time of the certification and the actual collection of taxes by the Department of
Revenue. During the reporting period the City of Kalispell discovered a number of properties
that were not correctly tracked with the appropriate TIF district. This situation has since been
rectified, but highlights the necessity of regular review.
The current assessed value of property within the four TIF Districts has increased by 47% over
the base assessed values at their times of creation.
The City of Kalispell Tax Increment Financing Districts are overseen by a five member
volunteer board, the Urban Renewal Agency (URA). Board members are appointed by City
Council to serve three-year, staggered terms. Members and board terms for 2011-2012 follow:
Member
Marc Rold
Tom Lund
Suzanne Faubert
Richard Kuhl*
Shannon Nalty
Position
Chairman
Vice Chairman
Member
Member
Member
Term Expires
04/30/2014
04/30/2014
04/30/2015
04/30/2012
04/30/2013
Murphy McMahon 04/30/2015
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* Richard Kuhl's term expired on 04/30/2012. Murphy McMahon was appointed by City
Council to the Urban Renewal Agency for a three year term ending 04/30/2015.
The URA held seven meetings September 14, 2011 through September 30, 2012. The Urban
Renewal Agency receives staff support from the City of Kalispell, Community and Economic
Development Department.
The Urban Renewal Agency meeting history for the period September 2011 thru September
2012 follows:
Meeting
Attendance
Action
Date
09/28/2011
Rold, Lund, Kuhl, Nalty, Faubert
Recommended West Side Urban Renewal
District Expansion to include Core Area and
Flathead County Fairgrounds.
11/09/2011
Lund, Kuhl, Nalty, Faubert
Considered proposed land swap of City
parking lot north of TeleTech facility with
former Gateway Cinema property located to
the west. No action.
12/05/2011
Rold, Lund, Kuhl, Nalty, Faubert
Recommended that City continue
consideration of TeleTech-Gateway land
swap project.
12/14/2011
Rold, Lund, Kuhl, Nalty, Faubert
Considered new information on proposed
land swap of City parking lot north of
TeleTech facility with former Gateway
Cinema property located to the west. No
action.
12/28/2011
Rold, Lund, Kuhl, Nalty, Faubert
Discussion of West Side TIF benefits and
potential projects. No action.
01/18/2012
Rold, Lund, Kuhl, Nalty
Discussion of West Side TIF timeline for
bond financing, update on West Side projects
and City growth policy update. No action.
02/01/2012
Rold, Lund, Kuhl, Nalty, Faubert
Recommended two West Side TIF district
projects: Colorado Street water project and
Appleway/South Meridian intersection
reconstruction to be bonded for 25 year term.
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West Side Tax Increment Financing District
In accordance with provisions of Montana State Law, City Council adopted Ordinance No. 1259
on March 17, 1997, establishing the West Side Urban Renewal Tax Increment Financing District
and adopting the urban renewal plan. The Ordinance also established January 1, 1997, as the
base year for calculating the tax increment of the district.
The enabling legislation documents the following purpose of the West Side TIF:
Whereas, the Plan [West Side Urban Renewal Plan] for the project area requires, among
other things:
a. setting a pattern of land use incorporating sensitivity to neighboring uses;
b. creating a circulation pattern that maintains a separation of incompatible
uses;
c. creating a street system that can accommodate increase in traffic safety;
and
d. provide full range of services to area.
Current City Council Ward: Ward 1
$ 3,222,347
I $ 3,808,596
$ 586,249
The current assessed value of property within the West Side TIF District increased by 18% over
the base assessed value established in 1997 at the time of the District's creation.
In March 2012, Kalispell City Council approved a bond issuance of $500,000 to fund
improvements within the District detailed below:
1. The Colorado Street Water System Improvement Project to connect/loop the dead end
water mains on Colorado Street to the overall water distribution system. The project also
replaced an existing inadequate 2" water main with a standard 8" water main. The
improvements provided dependable fire flows, water pressure levels, and improved water
quality to Colorado Street residents; and
2. The South Meridian Road Intersection Improvement Project modified the intersection of
South Meridian Road and Center Street. Additionally the project modified the
intersection of South Meridian Road and Appleway Drive. Engineering study of the area
found that the two intersections were causing significant congestion which was mitigated
by widening the roadway and the addition of a left turn lane at Center Street and
Appleway Drive.
Annual payments of approximately $32,000 are being made to service the debt for the period
January 1, 2013, through July 1, 2018. Council action in March 2012 extended the "life" of the
West Side TIF District to January 1, 2037.
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Airport Tax Increment Finance District
September 15, 2011
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South Kalispell/Airport TIF
In accordance with provisions of Montana State Law, City Council adopted Ordinance No. 1242
on July 1, 1996, establishing the City Airport/Athletic Complex Urban Renewal District and
adopting the "Kalispell City Airport/Athletic Complex Redevelopment Plan Analysis"
establishing January 1, 1996, as the base year for calculating the tax increment of the district.
The enabling legislation documents the following purpose of the Airport Tax Increment Finance
District:
Whereas, among the identified goals and objectives of the Urban Renewal Plan are:
a. minimizing hazards to navigation,
b. developing the airport in accordance with an airport layout plan,
c. increasing development opportunities on nearby properties,
d. promoting compatible land use in and around the airport,
e. establishing a funding mechanism for airport properties, and
f. establishing a priority schedule for plan implementation.
Ordinance No. 1541 was adopted by Council on July 18, 2005, amending the City
Airport/Athletic Complex Redevelopment Plan, authorizing an urban renewal project and
approving revenue bonds.
Current City Council Ward: Ward 4
The current assessed value of property within the South Kalispell/Airport TIF District has
increased by 222% over the base assessed value established in 1996 at time of District's creation.
As a result of project bonding issued in September 2005, beginning January 1, 2006, and
continuing each year through July 1, 2020, $500,000 of the annual increment will be utilized to
pay debt service.
The South Kalispell/Airport TIF District will expire July 1, 2020.
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Old School StationTax Increment Finance Districts
September 15, 2011
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Old School Station, Industrial
In accordance with provisions of Montana State Law, City Council adopted Ordinance No. 1557
on November 21, 2005, establishing the Old School Station Industrial Tax Increment Financing
District, identifying its boundaries and establishing January 1, 2005, as the base year for
calculating the tax increment of the district.
Current City Council Ward: Ward 4
The current assessed value of property within the Old School Station —Industrial District
increased by 14,153% over the base assessed value established in 2005 at time of District's
creation. This high percentage of increase in value is the result of the TIF being created while
the properties were still undeveloped sites.
A portion of the annual increment from this TIF is pledged for repayment of Special
Improvement District bonds, as needed and as funds are available, over the life of the bond,
January 1, 2007, through July 1, 2026. In fiscal year 2011-2012, $30,000 was transferred for this
purpose.
Due to non-payment of property taxes as assessed, there exists the potential for tax receipts to be
adequate to meet SID payments. Any shortfall would need to be made from the General Fund.
The Old School Station —Industrial TIF is scheduled to terminate on the fifteenth year following
its creation, meaning January 1, 2020.
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Old School Station, Technology
In accordance with provisions of Montana State Law, City Council adopted Ordinance No. 1558
on November 21, 2005, establishing the Old School Station Technology Tax Increment
Financing District, identifying its boundaries and establishing January 1, 2005, as the base year
for calculating the tax increment of the district.
Current City Council Ward: Ward 4
The current assessed value of property within the Old School Station —Technology TIF District
increased by 26,608% over the base assessed value established in 2005 at the time of the
District's creation. This high percentage of increase in value is the result of the TIF being
created while the properties were still undeveloped sites.
A portion of the annual increment from this TIF is pledged for repayment of Special
Improvement District bonds, as needed and as funds are available, over the life of the bond,
January 1, 2007, through July 1, 2026. In fiscal year 2011-2012, $12,900 was transferred for this
purpose.
Due to non-payment of property taxes as assessed, there exists the potential for tax receipts to be
adequate to meet SID payments. Any shortfall would need to be made from the General Fund
The Old School Station —Technology TIF is scheduled to terminate on the fifteenth year
following its creation on January 1, 2020.
Date
Rold, Urban Renewal Agency Chairman
Thompson, Comiliunity Development Manager
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Submit Inquiries To:
Katharine Thompson
Community Development Manager
201 First Avenue East
Kalispell, MT 59901
406n58.7713
kthompson@kalispell.com
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