Council considers boundary changes

A small crowd of Kalispell property owners gathered in council chambers on Tuesday night to debate the city’s proposed new boundaries for the Kalispell Business Improvement District which, for many, means new taxes.

The current Kalispell Business Improvement District is set to expire. The organization’s efforts include aiding beautification projects, hosting downtown events and expanding marketing. Those projects are funded through taxes on property owners in downtown Kalispell who fall within the district’s boundaries.

While the volunteer-led organization is meant to act as a special benefit to those included within the boundaries, some have said its payoffs aren’t worth the additional expense.

Muriel Hagerman told the council Tuesday night that the building she rents out falls within the newly proposed boundaries.

“We’ve owned this property for 45 years; we’ve never asked for any help from the city,” she said. “... I’m not against any of this, but I don’t feel that I should have money tacked onto my property for maintaining something I get no benefit (from) whatsoever.”

She said retail stores may be able to recoup the additional taxes through sales, but as a landlord, further raising rent prices could price her renters out of the property.

To renew the district, the city needed signatures from 60 percent of property owners within the proposed area supporting the new boundaries. Nearly 63 percent, or 104 property owners, approved the new lines.

How much each included property has to pay into the district is calculated based on square footage and taxable value of the property — so those payments vary from a few hundred to thousands, depending on each parcel.

If passed, the proposed district would exist for up to 10 years, according to the resolution.

TUESDAY NIGHT, nearly two dozen people voiced their views on the boundary expansion for roughly an hour — some in favor of the expansion and others asking the lines be redrawn to exclude their property.

Eric Robbins of Aluma Glass said he’s heavily in favor of the expansion. Robbins is also a board member of the city’s Business Improvement District.

Robbins said when he and his brother-in-law took over the 62-year-old company roughly two years ago, they felt like they “owed it to the downtown area to stay put.” Robbins said they discovered the Kalispell Business Improvement District offered grants to help the small business remodel their shop’s building.

He said since his shop’s remodel, other neighboring shops have followed suit.

“I look forward to the very small increase that we’ve had in our taxes as a result of this knowing that … I can chip in to help other businesses experience what we have,” he said. “I believe that it’s healthy, I believe that it does great things for rent increase (and) property value.”

Richard Mohrenweiser addressed the council with 11 signed petitions in hand from businesses asking to be removed from the improvement district.

“We are mostly larger properties and already pay more in property taxes,” Mohrenweiser said. “With the bid assessment, it would be a hardship, an unnecessary expenditure.”

Jason Peters spoke as a representative of Sykes Real Estate. He said Sykes would be the fourth-largest assessment due to the expansion, with a cost of $3,517. To pay that, he said the owner have to raise rent on their tenants by $200 a year.

“Sykes Real Estate will not benefit by the amount that was assessed and therefore I ask that we be removed from the BID area or figure a different method for us,” he said. “Frankly the BID needs Sykes more than Sykes needs the BID.”

Rita Fitzsimmons, owner of Design Works Graphic Designs, was one of the 104 businesses in favor of the expansion.

She said as board member of the Conrad Mansion Museum, she’s seen benefits from the district outreach its boundaries.

The museum saw a tour increase of 12,000 visitors last year. Fitzsimmons said that historical jump was in-part due to new signage throughout the city making the museum easier to find.

“The BID has helped my business and my building, but it’s also helped the museum, even though it’s not located downtown,” she said. “I would argue the BID would have the same effect on other businesses and other institutions in this community.”

A resolution to approve the creation of the new district is scheduled to go before the council for consideration at the Feb. 6 city council meeting.

Reporter Katheryn Houghton may be reached at 758-4436 or by email at khoughton@dailyinterlake.com.