New option surfaces for Whitefish school
A new plan for how the city of Whitefish can help fund a proposed Whitefish High School renovation project without dipping too deep into its tax-increment financing reserves was well-received by the Whitefish City Council on Monday.
The council has directed city staffers to move forward with the necessary steps to get the funding option in order before a bond request next spring.
City Manager Chuck Stearns presented the council with four options for using money generated through the tax-increment district to help finance a new school, estimated to cost up to $19.5 million. The district is aiming to get a public bond request down to about $15 million.
Three of the city’s funding options were discussed at a previous work session, but Stearns has since conceived a new option.
In his scenario, if the high school bond is approved by the school district voters, property taxes would go up by about 20 mills.
That increase multiplied by the TIF value of a mill equals $124,491 per year, solely from the increased school district mill levy. Over eight years — the remaining time before the tax-increment district sunsets in 2020 — that adds up to about $1 million.
Under Stearns’ plan, the city would reimburse up front the $1 million.
The city also would take $750,000 out of the existing tax-increment funds to be used as a challenge grant that could be matched dollar for dollar. Officials from Steeplechase Development, the firm heading the renovation project, say they are confident they could find the matching funds.
“We’ll figure out a way to make it work,” Bayard Dominick of Steeplechase said at the meeting.
He said private donors have said they will chip in if the city shows leadership with financing the project.
The advantage to this new plan, Stearns said, is that the city is only giving up $750,000 of actual tax increment money for the high school project, leaving $10 million for future projects, including a new City Hall or possible improvements at the vacant Idaho Timber or hospital sites.
“It provides significant funding for the high school project without greatly jeopardizing the other important tax increment and urban renewal projects which will come up during the next eight years,” Stearns said.
This plan would require an amendment to the Urban Renewal Plan to include the high school within the TIF district boundaries.
Members of the school district packed the council chambers Monday evening as they waited to hear the council’s suggestions for helping fund a new school.
Council member Ryan Friel said that while the council hasn’t had time to study the entire option, Stearns’ idea seems to “strike the best balance with helping the school and not jeopardizing the TIF funds.”
Council member Bill Kahle said it is critical for the city to get behind the effort.
“This is the true legacy project we are facing,” he said.
A quick straw poll of council members showed they all support Stearns’ new option. City staffers were directed to start the process of including the school in the tax-increment district.