Council delays vote on business district boundaries

Discussion at Monday night’s Kalispell City Council work session raised new questions over the looming expiration of the downtown Business Improvement District (BID) and its proposed expanded boundaries.

The volunteer-led BID organization’s efforts include aiding beautification projects, hosting downtown events and expanding marketing. Projects are funded through taxes on property owners in downtown Kalispell that fall within the district’s boundaries.

Renewal of the BID required signatures from 60 percent of the property owners within the proposed area supporting the new boundaries. Nearly 63 percent, or 104 property owners, approved the new lines.

The renewal would mean more taxes for the businesses included in the new boundaries, including the almost 40 percent that did not vote in favor of joining.

An argument developed among council members Monday that the petition process did not provide property owners the opportunity to give feedback or decline to be in the district.

Some property owners have expressed a belief that the amount they would have to pay in order to join the district is not worth the benefit their business may or may not receive in return. Others said that by being included in the district, they would no longer have to pay for services provided by the district and would benefit from additional marketing as well.

Another issue discussed Monday was the method of assessing how much each business should have to pay in order to meet the standards of the BID guidelines, which say the amount paid must be equitable to the size of the business and the benefit it gains from the services.

The expiring BID calculates the amount each property must pay into the district based on square footage and taxable value of the property. This means those payments vary from a few hundred to thousands of dollars, depending on the business.

This tax would be based on a fixed method of assessment but would fluctuate based on the increasing or decreasing of each property value.

Members of the council proposed taking the time to look at a different method of calculating what is “equitable” under the proposed BID’s guidelines.

Council member Kari Gabriel expressed concern that this would delay the implementation of the new BID and the work it does in the community.

“I think we’d be fools to let this lapse,” Gabriel said.

Gabriel said she thought the council should make the necessary adjustments in the time allotted before the current BID expires and approve the proposed new BID, studying the effects and making changes to the process when the bid expires in 10 years.

Council member Phil Guiffrida said he would not be rushed into a decision.

“If I don’t get my questions answered, I abstain,” Guiffrida said.

The council produced an extensive list of questions and concerns they wanted addressed by the BID board before they would add the new BID to the council agenda for a vote.

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

A second work session was scheduled for March 13, during which the council hopes to have enough information to move forward on the issue.

THE POSSIBILITY of a dog park coming to Kalispell was addressed by the council Monday as well. The council and community members present expressed two main concerns about the location of the park and the method of funding. Guiffrida said he did not feel comfortable using tax-increment financing for the park because it would not generate any revenue that would pay back the investment.

The city has also struggled to find an appropriate place to put the park. The current proposed location at Begg Park off Airport Road is in a residential area, replacing a section of the existing park.

Two members of the community spoke in opposition of the park, based largely on these two issues.

The council requested that the city take another look at financing and location options before bringing the issue back for another work session.

For more information, visit http://www.kalispell.com/mayor_and_city_council/.

Reporter Mary Cloud Taylor can be reached at 758-4459 or mtaylor@dailyinterlake.com.