Council considers tax-increment request

by The Daily Inter Lake
| October 5, 2009 2:00 AM

If the Kalispell City Council approves using tax increment funds to pay special improvement district fees tonight, it appears FedEx will be moving into Lot 2 of the Old School Station technology center.

DCP Kalispell Inc. negotiated to buy a lot in Old School Station south of Kalispell to build a facility for long-term lease to FedEx.

It's in the development's Technology Tax Increment Finance District and the FedEx use fits into what is planned there, so DCP Kalispell is asking the city to cover the fees out of tax increment district money - or to reimburse the developer when funds do accumulate.

The Department of Revenue projects the property value will be $1.5 million when the FedEx facility is built out, bringing $70,000 in tax-increment payments over the next five years.

Council members tonight also will start the process of annexing eight more wholly surrounded properties into the city. The process was started earlier, but appraisal and other questions put these on hold until tonight's meeting.

A public hearing will be scheduled to amend this year's city water and sewer budgets so crews can relocate city utilities for the U.S. 93 Bypass in the spring. It's coming a year earlier than expected because of the state Department of Transportation's expedited schedule. Total project cost is just under $597,000, although much of it will be reimbursed by the highway department.

On tonight's consent agenda the council will be asked to accept two grants:

-- Kalispell Police Department won a $750,000 grant for developing a firearms training facility to serve Northwest Montana's local, state and federal law enforcement agencies, and to work with the public on firearms safety courses.

-- The Community and Economic Development Department won a $4 million grant to buy foreclosed homes and use them to establish a Neighborhood Stabilization Program Community Land Trust for low- and moderate-income households. The money comes through the Montana Department of Commerce's Community Development Division.