2004/11/01 Resolution 4945 - Airport Infrastructure FundingREPORT TO:
City of Kalispell
Post office Box 1997 - K,%hspell, Montana 59963- z997 - Telephone 406)758-7700 Fax(406)758-7758
The Honorable Mayor Pamela B. Kennedy and City Council
James Patrick, City Manager, City Manager
FROM: Susan Moyer, Community Development Director
Frank Garner, Interim City Manager
SUBJECT: Update on City Airport Utility Needs
MEETING DATE: November 1, 2004
BACKGROUND:
For Mr. Patrick's information, staff is again calling attention to the fact that the City Council adopted Ordinance
No. 1242 on July 17, 1997, approving the Kalispell City Airport/Athletic Complex Redevelopment Plan as an
Urban Renewal Plan. Goals established by this Plan are as follows:
➢ To minimize hazards to navigation;
➢ To develop the airport in accordance to any airport layout plan;
To increase development opportunities on nearby properties;
➢ To promote compatible land use in and around the airport;
To establish a funding mechanism for airport operations; and
To establish a priority schedule for plan implementation
Regardless of whether or not the airport is upgraded to a Class B-11 designation, the need for infrastructure work
such as running utilities, asphalt paving of runway and taxi areas, deferred maintenance, etc. continues to exist
as long as the City owns and operates the airport. The key issue here is that the City of Kalispell is the
property owner and, as such, the developer.
Since the advent of City Airport Manager, the City has one new hanger valued at $125,000 under construction
and T&L Properties ready to sign leases on four additional hangers at an estimated $750,000 value. These
leases equate to an estimated $22,000+ in new property taxes and $15,000 in annual lease payments. 1t is the
responsibility of the Developer (the City) to provide these leased sites with utilities and amenities that it takes
for the hanger owners to operate.
Phil Porrini of Robert Peccia & Associates has provided the City Airport Manager with a revised estimate of the
"non-refundable" utilities work that needs to be installed in order for the new hanger leases to be signed and
construction to take place. The estimate is $9,050 higher than submitted on August 25, 2004 due to the location
of the four new T&L Properties' hangers. The underground utility costs are now estimated at $145,140. Mr.
Porrini concurs with the local utility companies that it is much more cost effective to lay the utilities at one time
rather than piece meal. Mr. Gary Nyquist of Flathead Electric Coop has stated that FEC would take at least a
year to start the project if the City does not do a single construction project. This, most certainly, would result
in the loss of the T & L Properties' hangers as well as any new inquiries.
RECOMMENDATION:
Tax Increment funds be utilized to pay for the non -reimbursable items such as utilities, an internal road to
access hanger sites, and an electronic gate. The projected breakdown is as follows for the non -reimbursable
items:
Underground Utilities $118,090
Engineering & Local Utility Fees $ 32,550
Chain Link Fence, Automatic Vehicle Gate, Access Road $ 77,208
$227, 848
New TlFproperty taxes and lease revenues generated from the Carter and T&L Properties projects alone will
pay for non-refundable investment in 6.2 years. If the remaining S to 7 potential hanger leases and new tax
base come on line within the next year, the pay off period could be lowered to approximately 3.1 years. The
attached email and drawing indicate the stub outs costs that will be installed at the time of utility construction.
Stub out from the main service line were not included in the previous handout.
The attached non -eligible costs have increased from the presentation last Monday, October 251h, due to
including sewer stub outs from the main to the hookup sites. The hookup fees and installation will be paid for
by the hanger owners.
FISCAL IMPACT: Not only can the advance of Tax Increment Fax Funds be repaid to the City within 5.6
years or possibly as few as 2.8 years, the use of the "Land Sale Funds" non eligible reimbursable finds will be
returned 95% by FAA. This means invested wisely, the reimbursable $950,000 of land sale funds can make the
operation and maintenance of the revamped airport viable and self-sufficient long into the future.
ALTERNATIVES: As suggested by Council.
Respectfully submitted,
Susan Moyer, Director, Fran Garner,
Community Development Interim City Manager
Memo Prepared: October 27, 2004
RESOLUTION NO.4945
A RESOLUTION TO APPROVE THE EXPENDITURE OF FUNDS FOR THE
INSTALLATION OF CERTAIN INFRASTRUCTURE AT THE KALISPELL CITY
AIRPORT.
WHEREAS, on July 17, 1997 the City Council, by Ordinance 1242, approved the Kalispell
City Airport/Athletic Complex .Redevelopment Plan as an Urban Renewal Plan;
and
WHEREAS, certain goals identified in the plan included the development of the airport in
accordance to an airport layout plan; and
WHEREAS, the installation of certain infrastructure at the airport, such as the installation of
utilities and asphalt paving, has been identified as necessary regardless of whether
the airport will ultimately be upgraded to a Class B-11 designation; and
WHEREAS, the installation of certain infrastructure is necessary to the development of the
airport that will attract private investment in the airport property; and
WHEREAS, funds derived from the sale of airport properties are better used to purchase other
needed airport properties as these funds may be at least partially reimbursed to the
City of Kalispell through FAA programs; and
WHEREAS, it is appropriate to use tax increment funds from the Airport Tax Increment
District for the funding source of installation of infrastructure.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City is authorized to expend funds from the Airport Tax
Increment Financing Fund for the payment to install certain infrastructure
at the Kalispell City Airport, described as underground utilities,
engineering and local utility fees, chain link fencing, automatic vehicle
gate and access road, with the anticipated cost of approximately $230,000.
SECTION II. This resolution will become effective upon passage and approval by City
Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 1 s" DAY OF NOVEMBER, 2004.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
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0:16AIRPORT LAYOUT IMPROVEMENTS
PLAN NORTH END UTILITIES
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Kalispell City Airport - Northend Development
Tax Increment Financing Project #I Revised: 10/27/2004
PPP
Non -eligible Work Items: Underground Utilities
each (ea) linear
feet (10 area (sf) area (sy)
quantity
unit cost
units
Total
8" Water Main, met valves and fittings
818
818
$35.00
LF
$28,630.00
8" Water Service, met valves and fittings
129
128
S35.00
LF
$4,480.00
1" Copper Water Service Lines, met saddles, curb valves and end posts
136
136
S20.00
LF
$2,720.00
6" Sewer Service Lines (individually installed)
10
20
10
$500.00
EA
$5,000.00
Fire Hydrants, incl valves and fittings
2
2
$3,000.00
EA
$6,000.00
Common Utility Trench, met excavation, bedding, backfill, asphalt R&R
1,400
1,400
$10.00
LF
$14,000.00
Electric Backbone, 3" PVC, Sch 40
1,400
1,400
S4.00
LF
$5,600.00
Electric Vaults 4' x 4' x 4'
4
4
$750.00
EA
$3,000.00
Electric Steel Sweeps
10
10
$100.00
EA
S 1,000.00
Gas Backbone, met gasline, valves and end caps
1,000
1,000
$9.00
LF
S8,000.00
Air port Road Boring for gas only
I
1
S1,000.00
EA
$1,000.00
Telephone Backbone, incl conduits, cables and pedestals
1,000
1,000
$6.00
LF
$6,000.00
Airport Road Boring for telephone only
I
t
$1,000.00
EA
SLo00.00
Cable TV Backbone, 2" PVC Sch 40, me] sweeps & peds
1,000
1,000
$3.00
LF
S3,00o.00
Airport Road Boring for cable TV only
I
I
$1,000.00
EA
$1,000.00
Subtotal Utility Package
$90,430.00
Advertising / Admin
Design Engineering - Non -Eligible: (Task Order 45)
Flathead Electric Coop, electrical charges
Northwestern Energy, natural gas charges (estimated) waiting for actual cost
Century Tel, telephone charges (estimated) waiting for actual cost
Bresnan Communications, CTV charges (estimated) waiting for actual cost
Subtotal Administration and Engineering
Chain Link Fence Alteration
Automatic Vehicle Gate 16wide - Chain Link
Vehicle Access Road 16' Asphalt Width
Subtotal Other Construction
$2,000. W
S7,050.00
S6,957.00
S2,000.00
S7,000.00
$1,000.00
$26,007.00
24 24 S17.00 LF S408M
16 16 $1,000.00 LF $16,000.00
1,181 18,896 2,100 2,100 $24.00 SY S50,384.33
$66,79733
TOTAL COSTS - NON -ELIGIBLE ITEMS $183,234.33
Including the Proposed Development by ]'HE Properties
Non -eligible Work Items: Underground Utilities
each (ea) linear feet(1fi area (so area (s)
quantity
unit cost
units
Total
8" Water Main, me] valves and fittings
1,160
1,160
$35.00
LF
$40,600.00
8" Water Service, inel valves and fittings
128
128
$35.00
LF
$4,480.00
1" Copper Water Service Lines, incl saddles, curb valves and end posts
181
181
$20.00
LF
$3,620.00
6" Sewer Service Lines (individually installed)
11 20
2!
$500.0-0
EA
S5,59.0.00
Fire Hydrants, incl valves and fittings
3
3
$3,000.00
EA
$9,000.00
Common Utility Trench, met excavation, bedding, backfill, asphalt R&R
1,740
1,740
S I0.00
LF
$17,400.00
Electric Backbone, 3" PVC, Sch 40
1,740
1,740
$4.00
LF
$6,960,00
Electric Vaults 4' x 4' x 4'
5
5
$750.00
EA
$3,750.00
Electric Steel Sweeps
io
10
$100.00
EA
$1,000.00
Gas Backbone, incl gasline, valves and end caps
1,340
1,340
$8.00
LF
$10,720.00
Airport Road Boring for gas only
I
I
$1,000.00
EA
$1,000.00
Telephone Backbone, me] conduits, cables and pedestals
1,340
1,340
$6.00
LF
$8,040.00
Airport Road Boring for telephone only
1
I
$1,000.00
EA
S1,000.00
Cable TV Backbone, 2" PVC Sch 40, me] sweeps & peds
1,340
1,340
S3.00
LF
$4,020M
Airport Road Boring for cable TV only
]
1
$1,000.00
EA
$1,000.00
Subtotal Utility Package
$118,090.00
Advertising / Admin
Design Engineering -Non-Eligible: (Task Order 115)
Design Engineering - Non -Eligible: (Task Order ft5A) - Additional Services
Flathead Electric Coop Charges (Prorated Estimate)
Northwestern Energy Natural Gas Charges (estimated) waiting for actual cost
Century Tel, telephone charges (estimated) waiting for actual cost
Bresnan Communications, CTV charges (estimated) waiting for actual cost
Subtotal Administration and Engineering
Chain Link Fence Alteration
Automatic Vehicle Gate IG wide - Chain Link
Vehicle Access Road 16' Asphalt Width
Subtotal Other Construction
$2,000.00
$7,050.00
$2,250.00
$8,750.00
$2,500.00
$8,750.00
$1,250.00
$32,550.00
24 24 $17.00 LF S408.00
16 16 SLOoo.00 LF $16,000.00
1,425 22,800 2,533 2,533 $24.00 SY $60,800,00
$77.?.O8.00
TOTAL COSTS - NON -ELIGIBLE ITEMS $227,848.00
CCE.sh; revised non -el & THL proposal 10/27/2004 1 "r 1