City blight is in eye of the beholder

Some know blight when they see it; some don't.

The question of what "blight" really is stymied the Kalispell City Council Tuesday, causing it to delay until Oct. 3 a vote on whether to declare a 25-block downtown area around the Kalispell Center Mall blighted.

"There is blight there," Kari Gabriel said, but fellow council member Tim Kluesner wasn't so sure: "I want a definition of blight."

A declaration that an area is "blighted" is the first legal step in setting up a special district to reroute some of its property tax money for infrastructure improvements to boost economic growth in that zone.

This is called a tax-increment district, in which a cap is put on the amount of property taxes collected from that area for schools, the city and the county. Any tax money collected above that cap is temporarily funneled to clear sites, install utilities and sidewalks and add other incentives for development in that area. The idea is to increase taxable value in the district so that future revenue for the tax partners will be higher.

The proposed tax-increment district forms a letter "C" around the north, west and southwest sides of the mall, but does not include it. The proposed district includes houses, some long-time blue-collar businesses, some new businesses such as a Walgreen's pharmacy and a few empty lots.

Two potential projects are nudging the city government toward considering this tax-increment district - the mall possibly expanding north of the Burlington Northern Santa Fe railroad track and the possible construction of a "junior league" indoor athletic facility.

City Manager Jim Patrick declined to elaborate on what the junior league athletic organization would be. He said the city expects to know in six to eight months whether either project will move forward.

If this area is declared "blighted," then the matter goes to the city staff and planning board for detailed planning and public hearings before the City Council acts on the proposal.

Right now, the proposed district is in the embryonic stage with very few details mapped out.

City officials have not yet talked to the residents in that proposed zone. And they are just beginning to approach School District 5 to form a committee to review the issue.

In the next few days, the city staff expects to calculate how much property tax money is collected annually from this area. It is impossible to predict how money could be rerouted in the future from such a district since growth there could blossom or remain stagnant for the next few years, said Community Development Director Susan Moyer.

Staff members have walked through the proposed district, noting broken windows and the rundown nature of some buildings and some empty lots.

Police Chief Frank Garner said the area is responsible for "more than some (police calls), but not the most" among the department's 11 zones.

Five Kalispell residents spoke Tuesday against creating a tax-increment district during a hearing on the issue.

"I see a bunch of generalities. I don't see anything very specific," resident Richard Kuhl said. The five worried about impacts on the local school budgets and wanted more details on the proposal's pros and cons, including estimates of the tax money involved.

Some council members also worried about the schools. "I want to table this until the school district voices its feelings," said Councilman Hank Olson.

Some council members voiced concern about low-income families living in the proposed district, worrying about them being moved out of their homes with no current plans on how to handle such an action. "To someone making $50,000 to $90,000 a year, this (area) could be blight. To someone making $10,000 to $20,000, it's called home," said Councilman Bob Hafferman.

And some council members noted that businesses - such as Walgreen's - are already moving into the proposed district without extra development help from the city. "The private sector doesn't need help in developing this part of town," said Councilman Bob Herron.

Hafferman, Olson, Herron, Kluesner and Duane Larson voted for delaying a decision.

"I don't think we're ready right now … We need a little more homework," Kluesner said.

Mayor Pam Kennedy, Gabriel, Jim Atkinson and Randy Kenyon preferred to vote on the blight declaration Tuesday.

Reporter John Stang may be reached at 758-4429 or by e-mail at jstang@dailyinterlake.com