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1 City of Kalispell Old School Station Technology Tax Increment Financing Application Process IMPORTANT: The material included below outlines the Tax Increment Financing application process and the responsibilities of the Applicant and the City of Kalispell. Please review this information carefully before submitting the application forms or finalizing your development plans. Failure to receive approval of a completed application BEFORE acquisition of property and or construction begins may affect the Applicant’s eligibility for Tax Increment Finance assistance from the City of Kalispell. INTRODUCTION Tax Increment Financing (TIF) is an important element of economic development in the City of Kalispell as a means to finance development activities. The TIF program operates by first establishing a base year taxable value for all properties within the designated boundary. In the case of the Old School Station Technology TIF the base year is 2005. Property taxes from that district continue to be paid to all taxing jurisdictions, ie., schools, county, etc. on the basis of the 2005 base year valuation. All increases in property taxes in the District above this base valuation due to new development or reappraisals are assigned to the City of Kalispell to be used to finance eligible activities within the Old School Station Technology District TIF. Pursuant to Montana Code Annotated, Title 7, Chapter 15, Part 42, as amended (the “TIF Act”), the City of Kalispell established the Old School Station Technology TIF as an Technology Tax Increment District and containing a tax increment financing provision. The Old School Station Technology District. By Ordinance No. 1558, adopted November 21st, (the “Old School Station Technology TIF Intent Ordinance”), the Kalispell City Council declared its intention to establish the Old School Station Technology TIF District for the purpose of providing a financial mechanism to provide the necessary infrastructure support to encourage the growth of secondary, value-adding businesses in the City. Applications for TIF assistance in the Old School Station Technology Tax Increment District are subject to program eligibility analysis and project review criteria listed below. In addition, project applications will be accepted and processed in the order in which they are received and approved based on the availability of funds. ELIGIBLE ACTIVITIES Property must be within the City Limits of the City of Kalispell; be located within the Old School Station Technology Tax Increment District area to be eligible for funding activities. Pursuant to ---PAGE BREAK--- 2 Section 7-15-4290 of the TIF Act, the City may pledge tax increment derived from the District to the payment of special assessment bonds issued to pay district redevelopment costs. Eligible costs to be paid by the City with tax increments include public improvements authorized to be made pursuant to the Special Improvement District (SID) Act. Certain tax increment revenues derived from the Old School Technology Tax Increment District will be available, to the extent provided herein, for the payment of and pledged to the cost of the Improvements or paying on the Bonds (as more fully described below). APPLICATION PROCESS Anyone seeking TIF assistance from the City of Kalispell must submit a written application. The following procedure has been developed to expedite the review of TIF funding requests: 1. Initial Contact. Contact the City of Kalispell, 201 First Avenue East, Kalispell, MT 59901 to discuss the project and determine eligibility for TIF assistance. 2. Complete an Application. The Applicant must prepare an application for each funding request. City of Kalispell staff will assist the Applicant in preparing an application. For all TIF requests the Applicant must complete a “Developer’s Statement of Qualification and Financial Responsibility” which includes submittal of personal financial statements. 3. Staff Review. Upon submittal of all necessary information, the City staff will review the merits of the project and the need for funding. At any point in the review process the staff may request more information of the Applicant or solicit comment on the project from other public agencies. Items included in personal financial statements will not be subject to public review or presentation to or comment by other agencies. 4. Incentive Agreement. If TIF assistance is approved, the City of Kalispell and the Applicant must execute a legally binding Incentive Agreement which establishes the terms and conditions of the start and completion of the project and may require the Applicant to guarantee repayment of TIF assistance if the terms of the Agreement are violated by the Applicant. IMPORTANT NOTE: Costs to be paid with TIF monies may not be incurred by the Applicant prior to funding approval and the satisfaction of any conditions of such approval. PROJECT CRITERIA FOR REVIEW Materials contained in TIF applications are used to assess the merits of projects in relation to the goals and objectives of the Old School Station Technology Tax Increment District. To measure the public benefit derived from the project, the City evaluates projects based on the following criteria. Each project is judged on its own merit; therefore, no weight is given to any of the criteria. However, the first six criteria are the most important in evaluating projects. 1. Economic Stimulus: The amount of economic activity to be generated by the project is assessed, as well as the leverage ratio of public to private investment. In general, the limit of participation in any one project is 10% of the construction/rehabilitation costs, exclusive ---PAGE BREAK--- 3 of acquisition cost. Projects clearly demonstrating extraordinary benefits to the western corridor to the City may, at the discretion of the City, receive additional TIF assistance for eligible items. All applications should contain credible, measurable information substantiating the project’s economic stimulus to the City. 2. Tax Generation: The increase in taxable value due to new construction/rehabilitation is estimated by the City to determine tax increment generation. 3. Employment Generation: Total employment generated by the project assessed in terms of new permanent and part-time jobs, wage levels and benefits provided. 4. Impact Assessment: The extent of both positive and negative environmental impacts, appropriateness of the project design, and impact on existing businesses. 5. Financial Assistance: Other forms of financing available to the Applicant. Lender participation, industrial development revenue bonds, and state and federal grant monies, for example, are examined to assess the need for TIF assistance. 6. Developer Ability to Perform: An assessment of the Applicant’s capability to undertake the relative complexities of the project based on past performance on similar projects. 7. Timely Completion: The feasibility of completing the project according to the Applicant’s project schedule. 8. Payment of Taxes: All property taxes, special improvement district assessments, and other assessments on the project property must be paid to date. ---PAGE BREAK--- 4 City of Kalispell Old School Station Technology Tax Increment Financing (TIF) Application Project Name: Date Submitted: CONTACT INFORMATION Name and title: Business name: Phone number: Email address: APPLICANT INFORMATION 1. Business 2. 3. Telephone PROJECT INFORMATION 1. Property 2. Address: 3. If property is not owned by the Applicant, list leasehold interests: (Attach evidentiary materials.) Name: Address: 4. Existing/proposed Business description: ---PAGE BREAK--- 5 Employment: Number of retained positions: Number of new positions to be created: FTE____ Average starting wage Average wage Hour Attach an Excel spreadsheet briefly listing and describing the job classifications with the average wage noted by each job classification. Provide a ramp-up schedule of when the positions are anticipated to be created and filled. Provide a synopsis of the fringe benefits provided to employees. 5. Architectural Address: Contact: 6. Description of project: (Attach narrative explanation.) 7. Rehabilitation/construction plans: (Attach narrative explanation.) 8. Project schedule: (Attach time line or schedule through completion.) PROJECT COSTS 1. Lot # 2. Facility 3. Landscaping 4. Equipment 5. Other Project Development Costs ---PAGE BREAK--- 6 PROJECT FINANCING Please complete Sources of Funds detail and summary below. Developer Equity Cash Invested Land & Buildings Other (Specify) Subtotal Lender Commitments (Attach evidence i.e. Letters of Credit or other documentation.) Lender Loan Amount Interest Term Payment/Period Total Loan Amount TIF Request Eligible activity Amount requested DEVELOPER’S STATEMENT OF QUALIFICATION AND FINANCIAL RESPONSIBILITY Applicant 1. Name: Address: 2. If the Applicant is not an individual doing business under his/her own name, the applicant has the status indicated below and is organized or operating under the laws of A corporation A nonprofit or charitable institution or corporation A partnership known as ---PAGE BREAK--- 7 Other (Explain) Date of organization: 3. Names, addresses, position titles, and nature and extent of the interest of the officers and principal members, principal shareholders, investors, or partners of the Applicant: Name and Address Nature and Extent of Interest Financial Condition 1. Provide a current financial statement for each private entity involved in the project. Documentation of financial capacity may include net worth statements, balance sheets, or profit and loss statements. (This information will be kept confidential, subject to challenge in a court of law.) 2. Has the Applicant or any individual or entity affiliated with the development of this project been adjudged bankrupt, either voluntarily or involuntarily, within the past ten years? No Yes if yes, list date, place, and under what name: 3. Has the Applicant or any individual or entity affiliated with the development of this project been indicted for or convicted of any felony within the past 10 year? No Yes if yes, list the date, charge, place, court and action taken for each case: CONSTRUCTION CONTRACTOR 1. Identify the construction contractor or builder who will undertake this project: Name: Address: ---PAGE BREAK--- 8 2. Has such contractor or builder ever failed to qualify as a responsible bidder, refused to enter into a contract after an award has been made, or failed to complete a construction or development contract within the last 10 years? No Yes If yes, explain: CERTIFICATION I (we), (please print), Certify that the statements and estimates within this Application as well as any and all documentation submitted as attachments to this Application under separate cover are true and correct to the best of my (our) knowledge and belief. Name Name Signature Signature Title Title Address Address Date Date Return to: City of Kalispell 201 1st Avenue East Kalispell, MT 59901 [PHONE REDACTED] [EMAIL REDACTED]