Court upholds Kalispell's downtown business district

The Montana Supreme Court has voted 5-2 to uphold the creation of a downtown Kalispell business improvement district.

The March 26 decision apparently ends four years of litigation over the commercial district that taxes its business owners to economically boost that area with efforts such as marketing and filling vacant buildings.

The business improvement district has about $100,000 set aside in the city's coffers.

The tax last was levied in 2006, with roughly $23,000 raised based on square footages and roughly $46,000 raised based on property values, City Finance Director Amy Robertson said.

Robertson said square footages and property values would have to be recalculated for any new levies.

The district stretches from Idaho Street along the north side of the Flathead Industries thrift store to the Fourth Street area on the south; bumps to the east to include the former Tidyman's store and The Loading Dock businesses; then runs along the alley between First and Second Avenues East.

But on the west, the line stops short of several West Center Street businesses, jogs in and out among others along First and Second Avenues West and excludes Kalispell Center Mall entirely.

At least 60 percent of the district's property owners - the legal minimum to do so - favored creating the district in 2003. The Kalispell City Council approved a final district in 2004.

At least 12 downtown property owners, however, opposed the final district, arguing the boundaries shifted several times during the creation process. They also contended the boundaries and assessments were not set legally

In 2005, they filed a lawsuit in Flathead County District Court against the city and the fledgling district. Judge Stewart Stadler ruled against the plaintiffs in June 2008. They appealed to the Supreme Court a month later.

The lead plaintiff, downtown businessman Dennis Green, could not be reached for comment. Downtown businessman Bill Goodman, a leader in setting up the district, declined to comment.

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