Tab F - Ordinance 1770 - Adopts the Glacier Rail Park TEDDFA
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Kalispell, MT 59903
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Debbie Pierson, Flathead County MT by DD / / 2016 2:51 P14
CERTIFICATE AS TO ORDINANCE AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of Kalispell,
N Montana (the "City"), hereby certify that the attached ordinance is a true copy of Ordinance No. 1770
S Q entitled: "AN ORDINANCE ADOPTING THE GLACIER RAIL PARK DEVELOPMENT PLAN AS A
COMPREHENSIVE DEVELOPMENT PLAN AND ESTABLISHING A TARGETED ECONOMIC
DEVELOPMENT DISTRICT [TEDD] IN THE CITY OF KALISPELL, MONTANA TO BE KNOWN
QAS THE GLACIER RAIL PARK TEDD WITHIN THE GLACIER RAIL PARK DEVELOPMENT
r PLAN AREA FOR THE PURPOSE OF DEVELOPING NECESSARY INFRASTRUCTURE WITHIN
SUCH DEFINED AREA OF THE CITY TO ENCOURAGE THE LOCATION AND DEVELOPMENT
OF VALUE -ADDING INDUSTRIES; ESTABLISHING THE COSTS WHICH MAY BE PAID BY
o THE DISTRICT CREATED BY THIS ORDINANCE; ESTABLISHING THE BOUNDARIES OF THE
0 GLACIER RAIL PARK TEDD; AND ESTABLISHING JANUARY 1, 2016 AS THE BASE TAXABLE
C. YEAR FOR THE GLACIER RAIL PARK TARGETED ECONOMIC DEVELOPMENT DISTRICT"
(� (the "Ordinance"), on file in the original records of the City in my legal custody; that the Ordinance was
® duly adopted by the City Council of the City at a regular meeting on May �"—;[2016, and that the meeting
00 was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice
of such meeting given as required by law; and that the Ordinance has not as of the date hereof been
amended or repealed.
La I further certify that, upon vote being taken on the Ordinance at said meeting, the following
Council Members voted }.n favor thereof: % kinson C'G✓(5on, "V-ie.� . C1v�kcim G� ii;c���ilce5ne✓
- KL.vt+ , 5c ve.✓ud
voted against the same: ; abstained from voting thereon: ;
or were absent:
WITNESS my hand and seal officially this nday of May, 2016.
c, ; FtPON . E`
SEAS = Ai4iee Brunckhorst, CMC
7892 Z City Clerk
TA
ORDINANCE NO.1770
AN ORDINANCE ADOPTING THE GLACIER RAIL PARK DEVELOPMENT PLAN
AS A COMPREHENSIVE DEVELOPMENT PLAN AND ESTABLISHING A
TARGETED ECONOMIC DEVELOPMENT DISTRICT [TEDD] IN THE CITY OF
KALISPELL, MONTANA TO BE KNOWN AS THE GLACIER RAIL PARK TEDD
WITHIN THE GLACIER RAIL PARK DEVELOPMENT PLAN AREA FOR THE
PURPOSE OF DEVELOPING NECESSARY INFRASTRUCTURE WITHIN SUCH
DEFINED AREA OF THE CITY TO ENCOURAGE THE LOCATION AND
DEVELOPMENT OF VALUE -ADDING INDUSTRIES; ESTABLISHING THE COSTS
WHICH MAY BE PAID BY THE DISTRICT CREATED BY THIS ORDINANCE;
ESTABLISHING THE BOUNDARIES OF THE GLACIER RAIL PARK TEDD; AND
ESTABLISHING JANUARY 1, 2016 AS THE BASE TAXABLE YEAR FOR THE
GLACIER RAIL PARK TARGETED ECONOMIC DEVELOPMENT DISTRICT.
WHEREAS, the City of Kalispell, Montana (the "City") is defined as a "municipality" under
Montana Code Annotated, Section 7-15-4283, as amended, for the purpose of
creating and operating a Targeted Economic Development District pursuant to
Sec. 1, Ch. 214, L. 2013 of Montana Laws, as may be amended; and
WHEREAS, pursuant to the Montana laws cited above, the City Council (the "City Council")
of the City may create a Targeted Economic Development District (as defined
below) for the purpose of creating an area in which needed infrastructure for
value -adding industries can be developed; and
WHEREAS, consistent with the state legislative intent expressed in MCA 7-15-4278 it is the
desire of the City Council to encourage the attraction and retention of value -
adding industries to the City; and
WHEREAS, on April 21, 2014, the Kalispell City Council by Resolution No. 5669 and upon
petition of the Flathead County Economic Development Authority [FCEDA], a
statutory entity of Flathead County, Montana established pursuant to MCA 7-14-
1101 and owner in fee of that certain parcel of property fully described in Exhibit
"A', attached hereto and incorporated fully herein by this reference, annexed said
parcel of property into the incorporated limits of the City of Kalispell; and
WHEREAS, on May 5, 2014, the Kalispell City Council by Ordinance No. 1737, following the
proper review and recommendation of the Kalispell City Planning and Zoning
Board and duly noticed public hearing, applied a zoning designation to the subject
property of City I-2, Heavy Industrial; and
WHEREAS, on May 5, 2014, the Kalispell City Council by Resolution No. 5673 and upon
petition of the property owner, FCEDA, conditionally approved the preliminary
plat of said subject property with the designated plat name of "FCEDA Rail Park
Subdivision"; and
WHEREAS, the Kalispell City Planning and Economic and Community Development
Departments evaluated the fiscal and economic aspects, as well as the
infrastructure and other physical aspects of the subject property and its contiguous
areas in conjunction with the general economic aspects of the City and Flathead
County and submitted a report entitled "Glacier Rail Park Development Plan for
Targeted Economic Development District (TEDD)" [the Plan], incorporated into
Resolution No. 5757 and thereby made public record, that identifies the lack of
necessary infrastructure to and within the subject parcel as well as identifying the
need in the City for a district that can host a diversified tenant base of multiple
independent tenants that will encourage the location and retention of value -adding
projects; and
WHEREAS, on March 8, 2016 the Kalispell City Planning and Zoning Board held a duly
noticed public hearing and upon considering the Plan described above for the
subject property as well as the public comment given, determined unanimously to
recommend the comprehensive plan and findings that the City of Kalispell is
infrastructure deficient and that infrastructure improvement of the subject area is
necessary for the welfare of the residents of the City of Kalispell; and
WHEREAS, on April 4, 2016 the Kalispell City Council considered and passed Resolution No.
5757, a resolution of necessity finding that that the Glacier Rail Park
Development Plan area is deficient in necessary infrastructure improvements, that
the City lacks sufficient capital to rectify the infrastructure deficiency of the
subject property, thus impeding its ability to achieve economic growth through
the development of value -adding industries, and that infrastructure improvement
of the subject area is necessary for the welfare of the residents of the City of
Kalispell; and
WHEREAS, the City Council has determined, after a duly noticed public hearing as required
by the Act and at which public hearing all oral and written testimony was
considered, that there is a need for this Ordinance to create the Glacier Rail Park
Targeted Economic Development District of the City of Kalispell, Montana and
the City Council wishes to enact this Ordinance.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
Section 1. Definitions. In this ordinance the following terms have the meanings
indicated below.
(a) "Act" means the Targeted Economic Development District Act as it
applies within Title 7, Chapter 15, Parts 42 and 43 of the MCA.
(b) "Actual Taxable Value" means the taxable value of taxable property at
any time, as calculated from the assessment roll last equalized.
(c) "Base Taxable Value" means the actual taxable value of all taxable
property within Targeted Economic Development District prior to the effective date of a
tax increment financing provision. Base Taxable Value may be adjusted as provided in
Section 7-15-4287 or 7-15-4293 of the Act.
(d) "Incremental Taxable Value" means the amount, if any, by which the
Actual Taxable Value at any time exceeds the Base Taxable Value of all property within
the Targeted Economic Development District.
(e) "Targeted Economic Development Increment District" means a tax
increment financing district such as the Targeted Economic Development District created
pursuant to Sections 7-15-4277 through 7-15-4280 of the Act.
(f) "Targeted Economic Infrastructure Development Project" means a project
undertaken within or for a Targeted Economic Development Increment District that
consists of any or all of the activities authorized by Section 7-15-4288 of the Act.
(g) "Targeted Economic Development Tax Increment District" means the
Glacier Rail Park Targeted Economic Development Increment District of the City of
Kalispell, Montana designated as such by the City Council in accordance with the
provisions of the Act.
(h) "Infrastructure" means the acquisition, construction, and improvement of
streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and offstreet
parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers,
waterlines, waterways, water treatment facilities, natural gas lines, electrical lines,
telecommunication lines, rail lines, rail spurs, bridges, publicly owned buildings, any
public improvements authorized by (i) parts 41 through 45 of Chapter 12, (ii) parts 42
and 43 of Chapter 13, and (iii) part 47 of Chapter 14 of the Montana Code Annotated,
and items of personal property to be used in connection with improvements for which the
foregoing costs may be incurred.
(i) "Tax Increment" means the collections realized from extending the tax
levies, expressed in mills, of all taxing bodies which the Targeted Economic
Development Tax Increment District or a part thereof is located, against the Incremental
Taxable Value.
0) "Taxes" means all taxes levied by a taxing body against property on an ad
valorem basis.
Section 2. Purpose. The purpose of this Ordinance is to (i) create a Targeted
Economic Development Tax Increment District to be known as the Glacier Rail Park Targeted
Economic Development Tax Increment District of the City of Kalispell, Montana, (ii) to
encourage the growth and retention of value -adding industries in the City, and (iii) provide a
financial mechanism for the installation and construction of infrastructure improvements to host
a diversified tenant base of multiple independent tenants.
Section 3. Findings, Determinations, and Declarations. Based on engineering studies
provided by the FCEDA, the report provided by the Kalispell City Planning and Economic and
Community Development Departments entitled "Glacier Rail Park Development Plan for
Targeted Economic Development District (TEDD)" and the work of City staff to date, the City
Council, by this Ordinance, makes the findings, determinations, and declarations set forth below.
The City Council of the City of Kalispell, Montana hereby finds, determines, and
declares that:
a) The subject property consists of a continuous area with an accurately
described boundary that is large enough to host a diversified tenant base of multiple
independent tenants; and
b) The subject property has been zoned by the City as City I-2, Heavy
Industrial, and such zoning designation is consistent with the Kalispell City Growth
Policy; and
c) No portion of the subject property is included within an existing tax
increment financing district; and
d) The "Glacier Rail Park Development Plan for Targeted Economic
Development District (TEDD)" [the Plan] is appropriate to be the comprehensive
development plan for the district and is hereby adopted and approved; and
e) This Ordinance and the formation of the Targeted Economic Development
Tax Increment District, as proposed, will facilitate the development of the necessary
Infrastructure to support growth within the Targeted Economic Development Tax
Increment District;
(b) The passage of this Ordinance and the establishment of the Targeted
Economic Development Tax Increment District fall within the economic goals adopted
by the City Council and the adoption therefor is in the public interest;
Section 4. Costs which may be paid by the City from Tax Increments. The Tax
Increment received by the City from the Targeted Economic Development Tax Increment
District may be used to pay any costs or obligations incurred for an Targeted Economic
Infrastructure Development Project (in the Targeted Economic Development Tax Increment
District) including those listed in (1) through (14) below.
The costs that may be paid with Tax Increments are:
(1) land acquisition;
(2) demolition and removal of structures;
(3) relocation of occupants;
(4) Infrastructure;
(5) to prepare an industrial development plan;
(6) to organize, coordinate, and direct the administration of this Ordinance;
(7) to conduct appraisals, title searches, surveys, studies, and other preliminary plans
and work necessary to prepare for the undertaking of Infrastructure Development
Projects;
(8) acquisition of infrastructure -deficient areas or portions thereof;
(9) administrative costs associated with the management of the Targeted Economic
Development Tax Increment District;
(10) assemblage of land for development or redevelopment by private enterprise or
public agencies, including sale, initial leasing, or retention by the City at its fair
value;
(11) the compilation and analysis of pertinent information required to adequately
determine the infrastructure needs of value -adding industries in the Targeted
Economic Development Tax Increment District;
(12) the connection of the Targeted Economic Development Tax Increment District to
existing infrastructure outside the Targeted Economic Development Tax
Increment District;
(13) the provision of direct assistance to value -adding industries to assist in meeting
their infrastructure and land needs within the Targeted Economic Development
Tax Increment District;
(14) the Tax Increments received may be pledged, pursuant to Section 7-15-4290 of
the Act, for the payment of the principal of, premium, if any, and interest on
revenue bonds issued for Targeted Economic Development Infrastructure
Development Projects, general obligation bonds, revenue bonds, or special
assessment bonds issued to pay Targeted Economic Development District costs
described in Section 7-15-4288 of the Act, including (i) the items listed in (1)
through 13 above or (ii) any other costs otherwise authorized to be paid under the
terms of the Act.
Section 4. Boundaries. The boundaries of the Targeted Economic Development Tax
Increment District are (i) described in Exhibit A attached hereto and made a part hereof, and (ii)
are shown on the map attached hereto as Exhibit B.
Section 5. Base Year. For the purpose of calculating the Incremental Taxable Value
each year for the life of the Targeted Economic Development Tax Increment District, the Base
Taxable Value shall be calculated as the taxable value of all property within the district as of
January 1, 2016.
Section 6. Term of the Industrial Tax Increment District. The Industrial Tax
Increment District will terminate upon the later of:
(a) the fifteenth (15th) year following the creation of the Targeted Economic
Development Tax Increment District; or
(b) the payment or provision for payment in full or discharge of all bonds
(including special assessment bonds) for which the Tax Increment has been pledged, and
the interest thereon.
After termination of the tax increment financing provision, all taxes shall be levied upon
the actual taxable value of the taxable property in the Targeted Economic Development Tax
Increment District and shall be paid into the funds of the taxing bodies levying taxes within the
Industrial Tax Increment District.
Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30)
days after its final passage and adoption by the City Council of the City.
Section 8. Conflict with other Ordinances and Resolutions. All parts of ordinances
and Resolutions in conflict with this Ordinance are hereby repealed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 2ND DAY OF MAY, 2016.
L®-
Mark Johns
Mayor
ATTEST:
Ai 4e Brunckhorst, CMC
City Clerk
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EXHIBIT A
LAND OWNER: FLATHEAD COUNTY ECONOMIC DEVELOPMENT AUTHORITY
A PORTION OF WHITEFISH STAGE ROAD
A PORTION OF EAST OREGON STREET
A tract of land located in N1J2 of Section 8, Township 28 North, Range 21 West, P.M.M.,
Flathead County, Montana, more particularly described as follows: BEGINNING at the
southwesterly corner of Parcel C of Certificate of Survey No. 14785, Thence S 75°37'02" W,
63.34 feet to the westerly right-of-way of Whitefish Stage Road; Thence along said right-of-way
the following five (5) courses: (1) N 04'18'57"E, 379.73 feet; (2) S 89°22'09" W, 34.27 feet; (3)
N 17055'03" W, 369.62 feet; (4) along a curve to the left with a radius of 1670 feet, an arc length
of 241.24 feet and a delta angle of 8016'36"; (5) N 26°11'39"W, 105.11 feet; Thence N
63051'47" E, 60.00 feet to the easterly right-of-way of said Whitefish Stage Road; Thence along
said right -of way the following two (2) courses: (1) N 63°44'01" E, 49.71 feet; (2) N 22°31'52"
W, 303.77 feet; Thence along the northerly boundary of Tract 2 of Certificate of Survey No.
19246 the following nine (9) courses; (1) S 59°23'18" E, 304.94 feet; (2) N 63°43'36" E, 367.60
feet; (3) S 48°04'24" E, 533.99 feet; (4) S 52°58'24" E, 151.14 feet; (5) S 62°30'24" E, 157.08
feet; (6) S 74°20'24" E, 118.80 feet; (7) S 89°44'24" E, 188.76 feet; (8) N 67°23'36" E, 323.40
feet; (9) N 75°53'36" E, 144.93 feet to the westerly boundary of Tract 5 of Certificate of Survey
No. 18380; Thence along said westerly boundary N 00°10'22" E, 56.37 feet; Thence N 89°33'46"
E, 739.18 feet along the northerly boundary of said Tract 5 to the westerly boundary of
Burlington Northern Railroad Right -of -Way; Thence along said right-of-way the following three
(3) courses; (1) S 18°25'34" W, 188.79 feet; (2) along a curve to the left with a radius of 1372.48
feet, an arc length of 46.99 feet and a delta angle of 1°57'42" (3) along a curve to the left with a
radius of 1382.69 feet, an arc length of 243.39 feet and a delta angle of 10°05'08"; Thence
continuing along said right-of-way which is also the easterly right-of-way of East Oregon Street
S 30°27'32" W, 1070.40 feet to the northerly boundary of Tract 1 of Certificate of Survey No.
14094 which is also the southerly boundary of East Oregon Street; Thence along said boundary
between said Tract 1 and East Oregon Street the following eight (8) courses: (1) N 36°23'55" W,
75.40 feet; (2) N 67°48'53" W, 96.01 feet; (3) N 77°03'55" W, 75.00 feet; (4) S 88°26'05" W,
125.00 feet; (5) N 65038'55" W, 182.00 feet; (6) N 86°03'55" W, 35.00 feet; (7) S 79°41'05" W,
42.00 feet; (8) S 54°56'05" W, 83.19 feet; Thence N 13°49'00" W, 98.67 feet to the northerly
boundary of East Oregon Street; Thence along said boundary the following four (4) courses: (1)
N 51020'00" E, 72.73 feet; (2) N 13°49'00" W, 34.85 feet to the southerly boundary of Parcel B
of Certificate of Survey No. 19528; (3) Along said southerly boundary N 51 ° 18'29" E, 101.13
feet; (4) Along said southerly boundary S 62°47'38" E, 99.39 feet to the westerly boundary of
Tract 4 of Certificate of Survey No. 18380; Thence along said boundary N 00°52'43" E, 370.95
feet to the southerly boundary of Tract 2 of Certificate of Survey No. 19246; Thence along said
southerly boundary the following three (3) courses: (1) N 89°40'46" W, 834.59 feet; (2) S
11058'02" E, 9.26 feet; (3) S 89°58'54" W, 369.04 feet to the easterly right-of-way of Whitefish
Stage Road; Thence along said right-of-way S 04° 18'59" W, 364.08 feet to the POINT OF
BEGINNING, excepting therefrom Tract 1 of Certificate of Survey No. 6547, which is not part
of this annexation. The area to be annexed includes 48.89 acres more or less.