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Whitefish council tackles City Hall, high school

by LYNNETTE HINTZE
Daily Inter Lake | November 6, 2011 8:34 PM

The Whitefish City Council has two big-ticket discussions on tap at tonight's meeting: How to move forward with a decision for a new City Hall location and how to use tax increment money for high school improvements.

The city recently held a town meeting to gauge the community's thoughts on a location for a new City Hall. More than two-thirds of those attending that meeting favored building a new facility on the current site at the northeast corner of Baker Avenue and Second Street, where the city now owns a half block.

A site north of the Whitefish library was the second choice, followed by property on Baker Avenue where Calvary Church and the Professional Services Building are located. The least preferred sites were Block 46 along Spokane Avenue and the Mountain West Bank building.

The council will decide whether to make a decision on Dec. 5 following a final public hearing on the City Hall options or defer it to the next council that will seat three new members in January.

The city plans to use tax increment revenue exclusively to pay for the entire project - estimated to cost between $5.5 million and $7.8 million - so that taxpayers aren't burdened with higher taxes or a bond issue, Stearns said.

Deciding how to use the city's tax increment revenue for reconstruction of Whitefish High School likely will be a more complicated discussion.

At a recent work session a consensus of council members agreed to consider using a portion of the city's tax increment money for the high-school project. Now the challenge is determining how and if the city is able to do that.

City officials held an hourlong conference call last week with the city's bond counsel, Dan Semmens, to get a clearer picture of how to proceed.

The high-school reconstruction isn't the typical or classic tax increment or urban renewal project because it won't add to the city's tax base or attract private development, but the city probably can bring the high school into the tax increment district boundaries and assist it as an urban renewal project, Semmens said.

It won't be as simple as amending the interlocal agreement between the school district and city for TIF revenue distribution, though, City Manager Chuck Stearns said in his council report.

"He (Semmens) thinks we need to go through the urban renewal plan modification procedures," Stearns said. "He said it is not an easy call to make the arguments for the indirect economic benefits, but also said that on its face, he does not think it doesn't work. It is a policy call and a legislative determination of the City Council."

The council has four options to consider for how to get the money to the school district, which has proposed a $19 million rebuild of the high school. One idea is to advance the $5.3 million the school district is scheduled to receive through 2020.

IN OTHER business, the council has seven public hearings on the agenda. Three of the hearings deal with a growth policy amendment and rezoning for Ruth Ann Rayner's 2.8 acres at 217 Margaret Court.

The council will consider a conditional-use permit for Scott and Cari Elden to operate a bed and breakfast inn at 444 O'Brien Ave. Other conditional-use permit requests include a guest house at 328 W. Third St. and an accessory apartment at 4450 Montana 40.

The council will hold a hearing and vote on a resolution updating rules for city utilities.

The annual report on impact fee revenue and uses will be considered for approval, and Finance Director Rich Knapp will give a quarterly financial report.

A council work session at 5:30 p.m. will review the city's skateboard ordinance. The regular meeting begins at 7:10 p.m.; both meetings are a Whitefish City Hall.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com.