Westside fund decision deferred to August

The Kalispell City Council voted Monday to delay until August a decision on redistributing Westside Tax Increment Financing District money.

An advisory board to guide future decisions on those funds likely will be established at the next council meeting.

City Manager Jane Howington said the council voted 5-4 to table the redistribution matter, largely because there are many unanswered questions about the best uses for the money and the future of the taxing district.

“The council needs to make a decision if they would like to renew it, extend the life of that TIF,” Howington said, adding that an extension could involve redesigning the taxing district’s boundaries.

She said the more complicated question is “what do we do with the Westside TIF in the long run as a tool for economic development?”

Decisions on the district need to be made before it sunsets on March 11, 2012, and an advisory board is expected to help guide the council. Howington was directed to come to the council’s June 7 meeting with a proposal that would establish a board.

Howington said the board probably would have five or seven members, with representation from business sectors such as banking, real estate and possibly the Chamber of Commerce.

“I think it’s a really good step,” Howington said of the advisory board. “I think the mayor was really right on with that ... The council doesn’t have an opportunity to discuss and debate things for hours on end. This would help them have some balance between what staff is bringing them and what the community wants.”

While there currently are no firm economic development projects in the pipeline, the advisory panel would be effective at vetting future proposals and making decisions on how funds should be distributed, she said.

There is currently about $1.8 million in the TIF fund, and after July tax payments there may be as much as $1.9 million.

Under a scenario presented in April by Howington, about $1.5 million in the fund could be distributed to the taxing jurisdictions where the money came from.

Flathead Valley Community College would get about $35,000; Kalispell elementary schools about $315,000; Flathead High School about $206,000; the state general schools fund about $225,000; the county’s noxious weed district about $1,000 and the city of Kalispell would get the largest chunk, about $378,000.

Howington stressed that the council has complete flexibility with the fund — it could distribute more or less than $1.5 million.

Also at Monday’s meeting, the council voted unanimously to enact a special assessment of $1.25 per night on each hotel room within city limits.

The Tourism Business Improvement District was proposed by a collective of hoteliers in the city with the  purpose of raising money to market and promote Kalispell lodging.

Howington said there will be a 30-day appeal period, and barring any successful appeals, the assessments will start June 17.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com