10-13-10 Urban Renewal Agency Agenda201 1st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
City of Kalispell • www.kalispell.com
AGENDA FOR 10/13/10 URA MEETING
1.) CALL TO ORDER:
2.) AGENDA:
3.) APPROVAL OF PRIOR MEETING SUMMARY OF ACTIVITY:
4.) PUBLIC COMMENT:
5.) UNFINISHED BUSINESS:
• Tabled item: Avail-TVN request for funding from South Kalispell TIF. Jeremy
Ferkin of CenturyLink will be attendance at the meeting.
6.) NEW BUSINESS:
• West Side TIF expansion discussion. See the attached memo.
7.) ADJOURN MEETING:
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Kalispell, MT 59901
City of Kalispell • www.kalispell.com
SUMMARY OF ACTIVITIES OF 09/29/10 URA MEETING
MEMBERS IN ATTENDANCE:
Marc Rold - Chairman
Tom Lund — Vice Chairman
Richard Kuhl
Shannon Nalty
Suzanne Faubert
OTHERS IN ATTENDANCE:
City of Kalispell Mayor, Tammi Fisher
City of Kalispell City Attorney, Charlie Harball
City of Kalispell RLF Manager; Wade Elder
John Peterson, Glacier Investment Properties
Jim Barrett, Attorney for Glacier Investment Properties
MEMBERS ABSENT:
None
Members had been E-Mailed an agenda and minutes of the 09/15/10 meeting prior to
the meeting.
The URA met on September 29, 2010 at 4pm.
Chairman Rold called the meeting to order.
Reviewed the prior meetings "Summary of Activities" that was E-Mailed to members.
There was a correction, the Summary indicated the Agency came to 2 conclusions
regarding Glacier Investment at the 09/15/10 meeting this was incorrect the Agency
came to 1 conclusion in which the Agency remanded this back to the City Attorney.
Public Comment:
John Peterson & Jim Barrett representing Glacier Investment Properties were there to
comment about the letter they sent dated 08/23/10 in which they are claiming funds from
the Old School Station TIF. There was discussion with John given the option of applying
for the TIF funds in a new application or taking whatever other avenues he feels he has
about a prior claim to the TIF funds.
Unfinished Business:
Glacier Investment Properties claim for Old School Station was on the agenda and was
discussed in the public comment section.
Avail-TVN was left on the table after a brief discussion that other funding may be
available.
South Kalispell TIF: A Memo was sent out with the agenda that indicated the TIF was
extended by a bond that matures on 07/01/20. The Bonds cannot be prepaid until
01/01/13 and if the bonds were retired early the TIF would be sunset then.
Old School Station: There was a discussion that the City has met with the Montana
Venture Partners (MVP) group and with the lending institution that holds the mortgage
on the lots for sale by MVP individually. All groups are cooperating and the bank is
current with their loan and continuing on until their maturity of 07/01/11. At this point
there is no need to have a joint meeting.
New Business:
1.) Gateway Community Center request for TIF funding. This request was declined.
A copy of the letter sent to Gateway Community Center is included.
End of Summary of Activities of 09/29/10.
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Memo
TO: Urban Renewal Agency (URA)
FROM: Wade Elder, Revolving Loan Fund Manager
SUBJECT: West Side TIF.
MEETING DATE: October 13, 2010 — Regular URA Meeting.
BACKGROUND: The West Side TIF was established on 03/17/97 through the passage of Resolution 4309 and
Ordinance 1259. It established the base year for calculating the tax increment as 01/01/97. The TIF is set to
sunset on 03/17/12.
As of 07/01/10 there was $1,905,716 of cash in the TIF district with an estimated ending budget year (06/30/11)
of $2,261,198. Annual revenues are estimated at $400,055 ($300,000 for taxes, $14,000 for Personal Property
Tax, $41,368 for HB 124 Entitlement & $45,000 for Teletech Developer Payment).
The tax increment urban renewal bonds that were taken out with this TIF were paid off on 06/30/10.
The City Council considered distributing some of the funds from the TIF on 05/17/10 and tabled the resolution
for 3 months. The Council again had the distribution of funds brought forward on the 08/16/10 agenda and did
not remove the item from the table and the question died.
Up for consideration is expanding the TIF to the West and removing some of the residential properties from the
TIF. The area considered for expansion would include the area inside the following boundaries: The west
boundary being 71h Avenue WN; the north boundary being West Washington Street; the east boundary being US
Highway 93 and the south boundary being 1" Street West. This area includes the Kalispell Center Mall and has
the BNSF Railroad running through the middle of it.
The City of Kalispell has been working on several grants that could work well in conjunction with this expansion.
They are as follows:
$400,000 Brownfield Assessment Grant
Brownfield Planning Grant, we are expecting a decision any day on this ($175,000 application).
$20,000 CDBG Planning Grant
$75,000 Preserve America Grant for marketing downtown
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The Kalispell Center Mall has been in talks about expanding the mall.
Goodale & Barbieri Company has 3.5 acres (located just north of the Kalispell Center Mall) that could be used for
a convention Center / performing arts center. This could house up to a 50,000 sq. ft. building (25,000 for the
convention center & 25,000 for the performing arts center) & parking. The convention center could seat 1,000 —
1,300. The cost of the convention center / performing arts center would run from $8—12,000,000. The Red Lion
would support this idea.
This could help the downtown area and bring in conventions that presently are going to outside places as
present facilities hold about 250 per hotel (Hilton & the Red Lion).
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201 1st Avenue East
Kalispell, IVIT 59901
406.758.7738
Fax: 406.758.7758
City of Kalispell
Urban Renewal Agency
October 1, 2010
Gateway Community Center
Attn. Mr. Mark Johnson, Board President
P.O. Box 7684
Kalispell, MT 59904
Dear Mr. Johnson:
Thank you for your application for funding from the West Side TIF.
Your application was presented at the September 29, 2010 Urban Renewal Agency meeting
Your application was declined as it does not meet the requirements for the use of TIF funds. The
improvements you propose are not infrastructure or infrastructure -related. Completion of these
improvements will not result in increased property tax revenue and may ultimately reduce
property tax revenue should the property ownership go to the non-profit. Although the desired
improvements may facilitate the accommodation of additional employees, they do not facilitate
the generation of additional jobs. The non -profits still have to generate the support to provide for
any new employees.
The City of Kalispell would like to remind you that there are other funds available through other
programs, such as the Community Development Block Grant for Public Facilities offered through
the Montana Department of Commerce, phone number 406-841-2791. The Community and
Economic Development department at the City can help with this application.
We wish you well in your endeavor to develop the Gateway Community Center and to improve
our community.
Respectfully,
Marc Rold
Chairman
Urban Renewal Agency
CC / Sherry Stevens Wulf