2005/07/05 Ordinance 1541 - Amending the Airport-Athletic Complex Redevelopment Plan - 1st Readingxd
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: Ordinance 1541 — Approving an Amendment to the Airport/Athletic
Complex Redevelopment Plan, First Reading
MEETING DATE: July 5, 2005
BACKGROUND: In April, Council held a public hearing and directed staff to bond
$2,000,000 for airport improvements and property purchases. During Bond Counsel's review of
the background documents, it was her feeling that the TIF plan should be modified to include the
purchase of property (not originally listed) and the monetary bonding limits be modified to
address concerns of inflation and construction cost increases. There are no changes to the scope
of the project as outlined for Council.
RECOMMENDATION: Council pass the first reading of Ordinance 1541, approving an
amendment to the Airport/Athletic Complex Redevelopment Plan to modify the airport TIF so
that bonding can proceed as directed.
FISCAL EFFECTS: Allows the City to proceed with the anticipated bonding of $2,000,000
now anticipated to be in August.
ALTERNATIVES: As suggested by the City Council.
Respectfully submitted,
Janes H. Patrick, City Manager
ORDINANCE NO. 1541
AN ORDINANCE AMENDING THE KALISPELL CITY AIRPORT/ATHLETIC
COMPLEX REDEVELOPMENT PLAN ANALYSIS FOR THE CITY OF KALISPELL,
MONTANA TO AUTHORIZE AN URBAN RENEWAL PROJECT; APPROVING THE
PROJECT AND AUTHORIZING THE ISSUANCE OF TAX INCREMENT URBAN
RENEWAL REVENUE BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL
AMOUNT OF $2,000,000 TO FINANCE COSTS THEREOF, AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, The City of Kalispell, Montana (the "City") is authorized by Montana Code
Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended (the "Act"), to create
an urban renewal area, to undertake urban renewal projects therein, to provide for
the segregation and collection of tax increment with respect to property taxes
collected in the urban renewal area, to issue its bonds to pay the costs of such
projects and to pledge to the repayment of the bonds the tax increment derived
from the urban renewal area; and
WHEREAS, In accordance with the provisions of the Act, this Council adopted Ordinance No.
1.242, on July 1, 1.996, establishing an urban renewal area within the City
designated as the "City of Kalispell Airport/Athletic Complex Urban Renewal
District" (the "Urban Renewal Area") and adopted an urban renewal plan
therefor, entitled the "Kalispell City Airport/Athletic Complex Redevelopment
Plan Analysis" (the "Urban Renewal Plan"), after due mailed and published
notice and a public hearing and receipt of recommendations from the City/County
Planning .Board, which certified that the Urban Renewal Plan conforms to the
general plan for the development of the City as a whole and the comprehensive
plan of the City for the area containing the Urban Renewal Area; and
WHEREAS, By Ordinance No. 1260, adopted by this Council on March 17, 1997, this Council
amended Ordinance No. 1242 to provide for the segregation of and application of
tax increment in the Urban Renewal Area and established January 1, 1996 as the
base year for calculating the tax increment as provided in Sections 7-15-4282
through 7-15-4293 of the Act; and
WHEREAS, On February 22, 2005, this Council adopted Resolution No. 4978 which identified
the purchase of land and improvements currently owned by Red Eagle Aviation.
the construction of the northwest ramp and taxiways, the construction of the
northwest utilities, the construction of an internal vehicle access road (16
feet wide), and the purchase and installation of an automatic vehicle security gate,
as an urban renewal project proposed to be undertaken in the Urban Renewal
Area (collectively, the "Urban Renewal Project"); and
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; and
WHEREAS, The Urban Renewal Project will further the goals and objectives of the Urban
Renewal Plan and constitutes "Phase I" of the Airport Master Plan, which has
been approved by the Federal Aviation Administration; and
WHEREAS, The Urban Renewal Project does not alter any land uses contained in the Urban
Renewal Plan and conforms to the general plan for the development of the City as
a whole and the comprehensive plan of the City for the area containing the Urban
Renewal Area; and
WHEREAS, The estimated cost of the Urban Renewal Project is $1,700,000; and
WHEREAS, In accordance with Sections 7-15-4214 and 7-15-421.5 of the Act, this Council.
conducted a public hearing on. July 5, 2005 on the amendment of the Urban
Renewal Plan and approval of the Urban Renewal Project by the adoption of this
Ordinance, after due and proper notice, both by mail and publication, of the same,
at which public hearing all persons were given an opportunity to be heard.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
SECTION .I. This Council hereby finds, determines and declares, as follows:
(a) the Urban Renewal Project constitutes an '`urban renewal project"
within the meaning of the Act and the Urban Renewal Area is a "blighted
area" within the meaning of Section 7-15-4206(2) of the Act, as found by this
Council by Resolution No. 4256, adopted on April 15, 1996, which finding is
hereby ratified and confirmed;
(b) the Urban Renewal Project will promote the elimination,
development or spread of blight in the Urban Renewal Area and will further
the policies and purposes of the Urban Renewal Plan;
(c) no persons will be displaced from their housing by the Urban
Renewal Project, and thus no provision needs to be made for making available
adequate housing for the persons displaced by the Urban Renewal Project;
(d) the Urban Renewal Plan, as amended by this Ordinance to
include the Urban Renewal Project, conforms to the comprehensive plan or
parts thereof for the City as a whole;
(e) the Urban Renewal Plan, as amended by this Ordinance to
include the Urban Renewal Project, will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the rehabilitation or
redevelopment of the Urban Renewal Area by private enterprise; and
(f) the issuance of tax increment urban renewal revenue bonds of the
City in the maximum aggregate principal amount of $2,000,000 {the "Bonds")
to finance costs of the Urban Renewal Project, to fund a debt service reserve
fund for the Bonds and to pay costs of issuance of the Bonds is feasible and,
based on the advice of D.A. Davidson & Co., of Great Falls, Montana, the
Bonds are marketable and can be sold on favorable terms; and
(g) the issuance of the Bonds will provide a sound and adequate
financial program for financing the Urban Renewal Project.
SECTION 11. The Urban Renewal Project is hereby approved. The City is hereby
authorized to issue the Bonds to finance costs of the Urban Renewal Project
and to fund a debt service reserve fund for the Bonds and to pay costs of
issuance of the Bonds.
SECTION III. This Ordinance will take effect from and after 30 days of its passage by the
City Council.
FINALLY PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE
CITY OF KALISPELL, THIS _ DAY OF 12005.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk