Document Kalispell_doc_97af59a7d3

Glacier Rail Park/Kalispell Core Area Development and Trail A Transformative Transportation Solution Kalispell, Montana US DOT TIGER 2015 Discretionary Grant Proposal Capital Application US Environmental Protection Agency Brownfields Area-Wide Planning Pilot US Department of Commerce EDA Community Trade Adjustment Assistance Program ---PAGE BREAK--- P a g e I 2 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Table of Contents Application at a Glance 3 I. Project Description 4 II. Project Location 14 III. Project Parties 14 IV. Grant Funds and Sources/Uses of Project Funds 15 V. Primary Selection Criteria 15 Safety 15 State of Good Repair 16 Economic Competitiveness 17 Quality of Life- The Six Livability Principles 18 Environmental Sustainability 21 VI. Secondary Selection Criteria 22 22 Partnership 23 VII. Results of Benefit Cost Analysis 24 VIII. Project Readiness 27 B. Financial Feasibility 27 C. Detailed Project Schedule 29 D. Required Approvals 30 1. Environmental Permits and Review 30 2. Legislative Approvals 31 3. State and Local 31 E. Assessment of Project Risk and Mitigation Strategies 31 In Conclusion 32 Pre-Application Changes 33 ---PAGE BREAK--- P a g e I 3 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Application at a Glance Proposed Title: Glacier Rail Park/Kalispell Core Area Development and Trail Project Summary: Build infrastructure for a rail-served industrial park to serve existing and new business. Relocate rail services for existing rail users from the Kalispell Core Area allowing for the abandonment and removal of the tracks, the creation of complete street connections and the development of a trail in a linear park connecting the community. The trail will connect economically disadvantaged and elderly people to business districts, grocery stores, schools, child and elder care, healthcare, workforce training and employment assistance while catalyzing redevelopment in the heart of the community including 44 disparate acres of brownfields. Geospatial Information: LL83 NAD83 datum N 48.2085 W 114.3011 City Demographics: Population (2014 estimate) 21,518 Median Household Income: $41,009 Personal Per Capita Income: $22,557 Unemployment Rate Kalispell: 10.4% Unemployment Rate Flathead County 2012: 8.6% Persons below poverty level in Kalispell: 16.5% (2009-2013 ACS Kalispell) Congressional District: Montana 01 Project Classification: Rural Economically Distressed: According to the Federal Highway Administration criteria (August 24, 2009) this project’s four county catchment area (Flathead, Lake, Lincoln, Sanders) distinguishes this as an “Economically Distressed” area due to both high levels of unemployment and low per-capita household incomes. Priority and Preference: In 2010, Kalispell was awarded an EPA Brownfields Area-Wide Planning Pilot Project grant for the Core Revitalization Area. Special Considerations Glacier Rail Park received funding from US Department of Commerce Economic Development Administration Economic Trade Adjustment grant for acquisition of property in 2012. Total Project Cost: $21,175,375 Benefit Cost Ratio: 4:1 at 2:1 at 7% Non-Federal Match: $11,175,375 (53%) Funding Request: $10,000,000 (47%) Project Documentation: http://www.kalispell.com/community_economic_development/Tiger2015.php ---PAGE BREAK--- P a g e I 4 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana I. Project Description The Glacier Rail Park/ Kalispell Core Area Development and Trail is a transformative project for northwest Montana, creating economic opportunities and sparking community revitalization. The project will incentivize private investment to create jobs and will prepare the region for the 21st century by transforming the underutilized heart of Kalispell into a thriving city center for all citizens. TIGER 2015 grant funds will leverage local, state, federal and private dollars to assist with the construction of $4.3 million of rail (13,724 lineal feet) and $2.6 million in road (6,600 lineal feet) and safety infrastructure for a rail-served industrial park to serve existing and new prospective businesses. Addressing rail services for two existing rail users from the Kalispell Core Area will allow for the abandonment and removal of the existing tracks and redevelopment in the center of Kalispell. Track removal will allow for construction of four complete street connections, a rail bridge conversion and the 10,500 lineal feet of paved, ADA accessible trail in a non-contiguous linear park stretching across the community. This trail will connect the community, including economically disadvantaged and elderly people, to business districts, grocery stores, schools, child and elder care, healthcare, workforce training and employment assistance. The removal of track and investment in infrastructure in low income neighborhoods will spur redevelopment in the heart of the community including 44 acres of dispersed vacant or blighted property including brownfields. TIGER 2015 grant funds will also provide $3.1 million for trail construction and complete street connections. A $10 million investment of TIGER funds will leverage over $11 million in private and public local, non-federal match and encourage additional private investments in both the Glacier Rail Park and the Kalispell Core Area. This project will be 100% ready for construction to start by March 2016. Preliminary design work is 80% complete and will be finalized by August 2015. Conceptual agreements are in place with the two existing rail users in the Kalispell Core Area and agreements are expected to be signed by July 30th. The NEPA Categorical Exclusion worksheet is complete, has been reviewed by the Federal Rail Administration and included with this application. Contract documents will be ready for the project to be advertised for construction within 30 days after grant funds are awarded. If the TIGER 2015 grant application is successful, the Glacier Rail Park will be complete by December 2016 and the Kalispell Trail will be in use by October 2018. This entire project is transformative. It brings three modes of transportation together to improve infrastructure and attract economic development and job creation to the area. Northwest Montana needs improved rail access for freight movement to diversify and strengthen the economy. This project allows Flathead County and Northwest Montana to truly capitalize on a valuable asset: it’s location on the Great Northern Corridor along the BNSF Railway (BNSF) Going shopping at the Kalispell Center Mall ---PAGE BREAK--- P a g e I 5 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Kalispell Core Area and Trail with Glacier Rail Park mainline connecting to national and international markets from the Great Lakes to the Pacific Northwest. Creation of a rail-served industrial park is identified as an economic development priority in the 2012 Flathead County Community Economic Development Strategy (CEDS). Kalispell needs additional complete street connections and revitalization in the heart of the community. This rural community of 20,000 hosts over 2 million visitors annually due to its proximity to Glacier National Park, Flathead Lake and other recreational jewels. Additionally it serves as the regional economic and healthcare hub for over 100,000 people in the northwest including a significant number of second home owners who reside in the community, but are not captured in population estimates. Existing tracks in downtown Kalispell restrict north-south traffic to six intersections across the two mile width of the city, shunting an inordinate amount of traffic to US Highway 93 causing disproportionately high traffic congestion and delays. Kalispell also needs a safer, more walkable community. Creating a safer, more walkable community is an identified priority in the Core Area Plan. This project is the culmination of a five year collaborative effort, intensive public involvement, property acquisition, and partnership development. It leverages municipal, county, state and federal funding with private investment benefitting of the community. The project will result in the removal of the iron curtain of rail which currently bifurcates the city, limits vehicular and pedestrian connectivity, and prohibits the expansion of other businesses throughout the Kalispell Core Area. The Rail Park will be centrally located on a vacant gravel pit which was purchased by Flathead County Economic Development Authority (FCEDA) for the specific purpose of developing a rail-served industrial park. The Rail Park will transform this reclaimed 40-acre EPA Brownfields site to a multi-modal long-term use, create jobs and increase freight movement via rail. It will shift rail use to a location that matches rail access with highway access and is zoned for sustained industrial growth. These catalytic changes will allow Kalispell to replace the old railroad tracks with a universally accessible bicycle and pedestrian trail, implementing a key priority to create a safer, more walkable community identified in the Kalispell Core Area Plan. ---PAGE BREAK--- P a g e I 6 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Kalispell, Montana was built by the railroad over 120 years ago. The town grew to serve dozens of agricultural and industrial businesses that were located in the center of the town. Since that time, Kalispell’s growth has leap-frogged over the rail track and choked the line to the point that today just two rail-served businesses remain downtown. The track is now lined by small city lots, incompatible uses, 44 acres of vacant property and dead-end streets. The growth of Kalispell to a city of 20,000 residents has stifled the rail line, just as; conversely, the tracks themselves are choking the center of town. The tracks allow only six at-grade crossings through the two mile width of town. Many city streets were developed with no sidewalks; railroad tracks are encumbering, dividing and sometimes wholly isolating properties. School and public transportation buses must come to a complete stop—and then cross the tracks some 50,000 times per year. Grain trucks crowd narrow streets already congested at the height of summer-Glacier National Park’s busiest tourist season. The railroad tracks cause long idle times for motorized vehicles and prevent the redevelopment of dozens of properties that are prime in-fill locations. This transformative project will breathe new and sustainable life into Kalispell and the Flathead Valley for the next 120 years. This project will benefit a variety of users including the two current users - Cenex Harvest States (CHS) and Northwest Drywall. Other private companies are considering establishing or expanding operations in the Rail Park to access rail service. These new and growing businesses expected to locate in the Rail Park will invest in new facilities and create new, well-paid jobs. Companies expressing interest in locating in the park once rail and road infrastructure are complete include value-added wood product manufacturers, value-added agricultural and food product manufactures and steel fabrication companies. Approximately 200 direct jobs will be retained or created at full build out of the Glacier Rail Park. It is anticipated that the development of the infrastructure in Glacier Rail Park will catalyze redevelopment of industrial land adjacent to the Rail Park which will benefit from the improved road and water infrastructure and increased visibility. These improvements and other economic development tool such as a Tax Increment Finance District will incentivize additional developers and manufacturers to invest in facilities on the adjacent 55 rail-served acres zoned for heavy industry creating further economic growth in the community over the coming decade. In order to lay a solid foundation for this project, FCEDA and the City of Kalispell have jointly invested over $900,000 in planning and engineering. That investment combined with State and Federal funding for planning, pre-engineering and property purchases totals just over $2 million. Planning Completed Fall 2010-Spring 2015 1) US EPA Brownfields Phase I and Phase II Environmental Site Assessments and Updates at Rail Park site (former gravel pit) 2) Flathead County 2012 Community Economic Development Strategies (CEDS) adopted 3) Property acquisition using US EDA Economic Trade Adjustment grant funds 4) Rail Park Environmental Narrative accepted by US EDA 5) Core Area Plan funded by US EPA Brownfields Area-Wide Planning Pilot Program grant developed by Kalispell community and adopted by City Council 6) Kalispell Core Area Market Analysis 7) Glacier Rail Park Market Analysis ---PAGE BREAK--- P a g e I 7 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana 8) Rail Park Site Annexed and Zoned Industrial 9) Preliminary Plat of Rail Park Approved 10) Rail Park Categorical Exclusion Worksheet completed and reviewed by Federal Railroad Administration Glacier Rail Park Construction Tasks Completed April 2014-June 2015 1) Rail Lay-out and Operations Plan completed in partnership with BNSF and Watco 2) Rail Park Engineering 80% Complete 3) Highway Access Location and Preliminary Design Approved by Montana DOT Kalispell Trail Construction Tasks Completed April 2014-June 2015 1) BNSF Internal Process for Rail Abandonment 2) Secured Assurances from BNSF to Abandon Track when agreements with existing rail users are executed 3) Submitted Environmental Access Permit request to BNSF 4) Requested Targeted Brownfield Assessment of existing rail line (EPA Region VIII) Glacier Rail Park Construction September 2015-December 2016 1) Grade Rail Park property 2) Construct rail as designed for service to business, runaround track and rail car storage 3) Improve internal road, external roads, US Highway 2 access and rail-road intersection 4) Purchase and install rail-road safety equipment 5) Relocate downtown rail-served business to Glacier Rail Park 6) Construct transload facility for off-site rail users Kalispell Trail and Complete Street Construction September 2015- October 2018 1) Conduct Phase I and Phase II Environmental Site Assessments as needed along rail Glacier Rail Park Layout and Operations Plan ---PAGE BREAK--- P a g e I 8 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana 2) Seek STB Approval of Abandonment and Negotiate Railbanking Agreement with BNSF 3) Remove Rail from Core Area in accordance with BNSF and Federal Processes 4) Conduct Environmental Site Remediation, if needed, along rail in Kalispell 5) Eliminate six at-grade rail crossings 6) Convert rail bridge to bike/pedestrian bridge over US Highway 2 7) Replace downtown rail with linear green space and multi-use trail, connect to current Rails-to-Trails trail at Meridian Road on west and Woodland Park on east side of City 8) Add four complete streets connections joining the community north-south Management -Ongoing 1) Recruit tenants requiring access to the Great Northern Corridor to the Rail Park 2) Long term management of the Glacier Rail Park: lease revenue for transload facility and lots will provide debt service and maintenance funding 3) Market properties and recruit businesses for re-development in Kalispell Core Area 4) Maintain Kalispell Trail: City of Kalispell general fund dollars to maintain the Trail 5) Facilitate brownfields redevelopment through City of Kalispell’s access to USEPA Brownfields Program 6) Market infill properties to developers As an US EPA Brownfields Area-Wide Planning Program Pilot grantee in 2010, the City of Kalispell embarked on the most inclusive, multi-faceted public outreach and engagement process in its history. The Core Area is 365-acres comprised of 1,100 parcels and 450 property owners featuring the original railroad corridor running east to west two miles through the city. The process focused on the town’s historic, industrial railroad corridor which is now suffering from decades of disinvestment, blight, and brownfields impacts. The public outreach plan (attached in Appendix) included: twenty-one community meetings and open house events; seven quarterly newsletters to Core Area property owners; a volunteer steering committee; and frequent media coverage. The defining feature of the planning process was one-on-one meetings with Core Area property owners and others as requested. The City met directly with property owners representing 60% of the Core Area land mass. This stakeholders’ planning process identified the development of a new industrial rail park with a rails-to-trails pedestrian connector through town as the community’s number one priority. The Kalispell City Council formally adopted the “Core Area Plan” as an amendment to its growth policy in 2012 and extended a nearby Tax Increment Finance District to include the Core Area, committing this financial tool for revitalization of the area. Since the Plan was adopted City staff have continued to provide project update presentations at no less than six community meetings each year. Maps for this project can be viewed at: http://www.kalispell.com/community_economic_development/Tiger2015.php Planning and design are complete. EPA Brownfields Assessment grant funds were utilized to conduct Phase I and Phase II Environmental Site Assessments at the proposed Rail Park property. FCEDA acquired the property, financed by a US EDA Community Trade Adjustment Assistance Program grant in 2012. ---PAGE BREAK--- P a g e I 9 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana “BNSF will provide a financial contribution of $500,000 as a match…(and) is willing to pursue abandonment of this section of rail line.” ~Paul Anderson, BNSF VP of Marketing Support FCEDA and the City of Kalispell have also completed market analyses of both the Rail Park and the Kalispell Core Area with planning grant assistance from the Montana Department of Commerce. Planning to date has been paid for by Kalispell and FCEDA in combination with $89,000 in planning grant funding from the State of Montana Department of Commerce. Rail layout/engineering was conducted in collaboration with BNSF and Watco Companies/ Mission Mountain Rail (Watco/MMR). The complex design to accommodate CHS operations was approved by all parties in May 2015. BNSF and Watco Companies (Watco) were instrumental in designing the plan to serve all rail users in the Rail Park as well as the Operations Plan for Glacier Rail Park. In 2014 the Rail Park was annexed by the City of Kalispell and the preliminary plat approved. Engineering design for roads, water, waste water, storm water and utilities for the Rail Park is complete. The Montana Department of Transportation has approved the location of a signal on US Hwy. 2 East. BNSF has accepted the preliminary rail layout and operations plan. The cost of this engineering work was shared between FCEDA and the City of Kalispell. Construction of Glacier Rail Park will utilize FCEDA, City of Kalispell, BNSF and TIGER 2015 funding. This critical rail and road infrastructure will improve the condition of existing transportation systems and expand rail access. FCEDA, City of Kalispell and BNSF will provide over $11 million for all water, sewer, waste water and utility related improvements as well as any rail and road improvement costs that exceed the $10 million TIGER 2015 funding requested. BNSF, Watco/MMR and CHS have been engaged in the planning and engineering process with the City of Kalispell and FCEDA for over two years. All are in agreement with this project as evidenced by their letters of support. CHS intends to relocate to the rail park. An agreement between FCEDA and CHS detailing this understanding will be completed in July 2015. Northwest Drywall has determined that a combination of financial reimbursement and services from the City of Kalispell and FCEDA, rather than relocation suits their business model and needs. FCEDA and the City of Kalispell are in agreement with Northwest Drywall’s requirements and the details of this agreement will be formalized in June 2015. BNSF has committed $500,000 cash match to the project when the rail tracks in the Core Area are abandoned. Watco/MMR have agreed to a $40,000 annual contribution to the Rail Park operations for five years (total $200,000) when the rail park construction begins and CHS has agreed to relocate to the Glacier Rail Park with a signed lease agreement. BNSF has agreed to begin the rail abandonment process when the CHS lease is signed and an agreement meeting Northwest Drywall’s requirements is signed by all parties. Additionally Watco/MMR has stated that at that time they will request to BNSF to amend their current lease and discontinue operations over the rail tracks in the Kalispell Core Area. After completion of the abandonment and railbanking process, the completion of the Rail Park and the relocation of CHS to the Rail Park construction of the Kalispell Trail will begin. As ---PAGE BREAK--- P a g e I 10 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana “We…anticipate signing a lease agreement with FCEDA in June 2015 contingent upon their ability to install rail, connect utilities and improve road access in 2016.” ~Mark Lalum, General Manager, CHS-Kalispell part of that process, the City of Kalispell will seek Public Use Conditions from the Surface Transportation Board and pursue railbanking negotiations with BNSF. The old rail line will be removed and replaced with a new universally accessible bike and pedestrian trail connecting area residents to food, employment opportunities and educational training facilities developing the ladder of opportunity for this economically disadvantaged community. The USEPA has committed from its Targeted Brownfields Assessment Program for Environmental Site Assessments in the Core Area including the area of existing track to be converted to trail. As appropriate, the City of Kalispell will make its $1 million Brownfields Revolving Loan Fund Program available to the clean-up effort. Management Long term commitments to the overall project do not end with construction of the infrastructure. Both the City of Kalispell and FCEDA are financially committed to the long-term management, maintenance, and operations of these facilities, respectively as described above. Rail Park Tenants FCEDA has negotiated a mutually satisfactory relocation plan with CHS pending park infrastructure development. CHS has provided Letters of Intent to locate in the Park and support the Glacier Rail Park/Kalispell Core Area Redevelopment and Trail Project. Northwest Drywall has provided a letter of support for the project. The Rail Park Market Analysis and Feasibility Study identified potential users of the new Rail Park as the regions’ traditional wood products industry, agricultural industry, and businesses shipping machinery. It also forecast growth in shipment of electronics and pharmaceuticals into and out of Montana over the next 30 years based on data from the Freight Analysis Framework (FAF). Shipments of agriculture products, precision instruments, mixed freight, as well as primary and fabricated metal products are potential areas of growth for transload operations in the Rail Park. Non-metallic minerals (sand, gravel, cement, stone, and clay) and metallic ores comprise the majority of exports from Montana to Canada. The Market Analysis indicates expected enhancement of Canadian trade by attracting these types of industries. While the Benefit Cost Analysis focuses on known intended users, the ultimate purpose of the Rail Park is to attract new business requiring rail access and foster job growth. The 2013 Market Analysis and Feasibility Study for the Rail Park indicated the Rail Park will connect businesses within a 100-mile radius of Kalispell to the Great Northern Corridor as well as Canadian ports. Marketing of the Rail Park began in March 2015. Three out-of-state businesses, three Montana businesses, and one Canadian business have contacted FCEDA for Rail Park information. These companies are manufacturers of wood or metal value-added products, agricultural value-added businesses or businesses shipping product to Canada. Additionally, a number of businesses interested in transload services have contacted FCEDA for information. Transportation Challenge I—Inadequate Transportation Systems Inadequate transportation systems restrict rural Montana’s small businesses, agricultural producers, manufacturers, and consumers from efficiently shipping and receiving goods. ---PAGE BREAK--- P a g e I 11 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Northwest Montana is 120 miles north of Interstate Highway 90 and160 miles west of Interstate Highway 15. Air freight is not a viable option for the vast majority of the industries in the area due to the substantial size/weight of products. Job growth in the area is currently limited by Kalispell’s isolation and distance from markets. This fact combined with the high cost of transportation precludes many area businesses from expanding and deter new businesses from locating in the area. These concerns were borne out during the Business Expansion and Retention (BEAR) interviews carried out over the past three years. During these interviews business owners in an array of industries identified transportation as their number one concern. Of the 280 businesses interviewed, 51 stated that “lack of adequate transportation”, “cost of transportation”, or “expense of getting product to customer” as the largest disadvantages of doing business in Northwest Montana. The railroad tracks in Kalispell allow only six at-grade crossings in the two-mile stretch where they cross the city from east to west. The lack of north-south streets isolates lots on dead end streets. Typically a community would have 16 or more north-south street connections in an area such as this. Bottleneck traffic congestion impacts residents and two million tourists forced to idle in traffic in this small town as they attempt to move from the downtown community to areas north to access regional healthcare, the community college and large retail shopping centers. Kalispell residents are both reliant upon and lacking in bus service. As a rural community, our schools are heavily dependent on busing to transport children to and from school each morning and afternoon. In fact, Kalispell Public Schools carry children on busses and across the railroad tracks over 32,000 times each school year. Worse yet, Kalispell’s Northwest Montana Head Start (pre-school program for economically disadvantaged children) located next to our largest city park, is separated from the park by the railroad tracks. It is both illegal and unsafe to walk pre-schoolers fifteen feet across the tracks and into the park, so they must take a half mile bus ride to get to the city park. Kalispell suffers from the perfect storm in public transportation. We have a relatively small population, generally separated by long distances, and a disproportionately high level of poverty The outcome is that our community needs greater access to transportation alternatives but has fewer resources. While our small public bus system is important, many more people could be served even more efficiently and sustainably through the development of a safe, paved, universally accessible trail providing easy access to all city services and amenities regardless of time of day or ability to pay. The new trail will benefit anyone who: is too young to drive; is elderly and not able to drive; is disabled and so doesn’t drive; cannot afford to own and operate a vehicle; wants to walk or bike rather than drive for any reason at all. Mother assists child over tracks ---PAGE BREAK--- P a g e I 12 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Sign Located at Flathead Industries- Vocational Rehabilitation Campus for Disabled Clients Transportation Challenge II—Inadequate Facilities and Transportation Infrastructure for Rail Access The City of Kalispell was built by and for the railroad with the first train running on New Year’s Day 1892. Since that time, the city has grown around and beyond the tracks hindering efficient residential and commercial growth due to leapfrogging that occurred in downtown development. The original track location is now strangling the city just as city development is limiting rail use. The small city sized lots limit industrial access to rail as the lots currently served by the rail are now too small to attract new industrial rail users. Furthermore, industrial and manufacturing land uses have become inappropriate in the Core Area, directly conflicting with the community’s identified vision for a more mixed-use, pedestrian friendly core. Private business has been deterred from creating more appropriate industry locations with the required infrastructure for rail-served businesses due to the extraordinary up-front infrastructure investment required. But for government investment in critical infrastructure, private industry cannot and will not build here. Transportation Challenge III— Lack of Safe Alternative Transportation Since 1995, Kalispell has had four pedestrian fatalities. Fifty % of these fatalities happened within a block of each other in the Core Area as elderly citizens were attempting to walk where there are no sidewalks and virtually no pedestrian safety features. These fatalities occurred within 200 feet of the proposed trail. The Kalispell Trail is so important because it will save lives by creating a safe place for our citizens to walk in this city. Flathead Industries is a local non-profit organization that serves clientele with wide ranging physical and/or mental disabilities that are referred by agencies including the Department of Veterans Affairs, Montana Vocational Rehabilitation, Montana State Fund, and private vocational rehabilitation agencies. This job training campus is located immediately next to the railroad tracks. Flathead Industries works with about 150 disabled clients at any given time and connects them to vocational rehabilitation counselors, employment specialists and others to design and implement a personal plan for career success. Clients receive appropriate training, supportive services, and job placement. Some 98% of these disabled clients are not licensed to drive. Replacing the existing railroad tracks with a safe, multi-use trail would provide Flathead Industries’ clients with viable transportation alternatives enabling them to become more self-reliant and independent. The current railroad track location hampers regional pedestrian and bicycle connectivity. While extensive trail systems reach south, west and north of the city, none connect to the Core Area and traditional downtown. This leaves bicyclists and pedestrians to negotiate streets with no sidewalks, no bike lanes and, in the case of Main Street (which is US Highway 93), forces them to attempt crossing seven vehicle lanes. The Core Area planning process elicited an over-arching ---PAGE BREAK--- P a g e I 13 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Rail Dividing the Kalispell Center Mall Property theme from the community: residents want a more walkable community where they can go to the grocery store or reach their workplace from their homes without driving. The current rail location prohibits a walkable, bikeable community. Solution to Transportation Challenges I, II, and III Construction of the Glacier Rail Park will increase connections for rural Montana to domestic and international ports, allowing Montana’s small businesses, agricultural producers, manufacturers, and consumers to efficiently ship, receive goods, and create more job opportunities. This project is part of the Great Northern Corridor Coalition (GNCC) umbrella of regional projects. The Great Northern Corridor Coalition (federally funded through the Multistate Corridor Operations and Management grant program) works to promote regional cooperation, planning and shared project implementation to improve moving freight from Chicago through the member states of Wisconsin, Minnesota, North Dakota, Montana, and Idaho to ports in Washington and Oregon. The Great Northern Corridor system of highways, rails, and ports is vital to move American products to global markets and deliver necessary commodities to communities. The Coalition is working to strengthen the corridor in order to promote economic growth for neighboring communities and accommodate the demand for safe, efficient, and environmentally sound transportation services. The GNCC is working to identify opportunities to improve the technology, operations and infrastructure along the corridor. Sufficient cargo and rail volume growth has been identified to justify the project. Additionally, new business users are being pursued by BNSF, Watco and FCEDA to increase train usage along the corridor. Relocation of the downtown Kalispell rail service to the new Rail Park and out of the Core Area relieves traffic congestion caused by rail line blockage and large truck traffic accessing the rail. It also creates new, appropriately sized and located sites for industrial and manufacturing users. Relocation of Kalispell’s access to the railroad is critical to allowing both rail served businesses to grow and the community to flourish. Kalispell is very clear that building the new Rail Park serves a number of priorities. The Core Area Plan outlined these priorities as: support local business retention, expansion and attraction; increase city tax base; improve safety by eliminating six at-grade rail crossings and convert a rail bridge spanning Hwy 2; reduce traffic congestion and vehicle idle times; respond to citizen input for a more walkable community; improve commute times; encourage revitalization investment in the Kalispell Core Area; support goals of environmental justice by eliminating the barriers that disproportionally ---PAGE BREAK--- P a g e I 14 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana negatively affect the low-income population living in the Kalispell Core Area, thus building the ladder of opportunity. The Kalispell Trail will create economic mobility for this disconnected, rural community by improving access to reliable, safe and affordable transportation. By removing the physical barrier of the rail tracks the trail will better connect residents to jobs and provide opportunity for neighborhood revitalization. By relocating the tracks, connecting through streets and replacing track with a quality trail and linear park with greenspace the City is serving the most underserved and low-income neighborhoods in the community. II. Project Location Kalispell is the Regional Trade Center and the County Seat just a 45-minute drive from Glacier National Park in Flathead County. Lending perspective, 91,000 people live in Flathead County which is an area larger than the state of Connecticut. A tourism mecca, Kalispell hosts 2 million out-of-area visitors each year. III. Project Parties The City of Kalispell and FCEDA have worked diligently to include public and private sector stakeholder participation in the Project. BNSF has played a pivotal role in the planning and design of the proposed Rail Park. Watco provided engineering expertise to the design of the rail and Rail Park Operations Plan. Both railroad companies have brought significant staff expertise, time and effort toward executing the many steps required to properly plan and appropriately design this project. In a true spirit of partnership, BNSF has committed a $500,000 cash match in order to bring the Rail Park to reality. Watco/MMR have agreed to a $40,000 annual contribution to the Rail Park operations for five years (total $200,000) when Rail Park construction begins. Similarly the management of CHS at the local and national levels have invested staff hours and good-faith effort to planning an operationally and financially feasible relocation plan. The State of Montana’s Department of Commerce has invested $89,000 in the planning of this project over the previous three years. Montana Department of Transportation has worked extensively with project engineers to determine the best location and design for highway access and road improvements for increased Rail Park traffic and fully recognize the benefits of this multi-modal transportation improvement plan for northwest Montana. As project applicant the City of Kalispell is well prepared to administer a TIGER 2015 direct federal grant from the US Department of Transportation. In just the past five years this City has been awarded thirty-three direct federal grants totaling over $8 million from the following agencies: Department of Transportation; Environmental Protection Agency; Department of Energy; Department of Agriculture; Department of the Interior; Department of Justice; and Department of Homeland Security. The City’s organizational capacity is demonstrated by its successful track record with all grants. The Finance and Community Development Departments retain key expert staff familiar with the myriad assurances required including compliance with procurement policies, Davis-Bacon wages, Hatch Act, and others as specifically outlined in grant terms and conditions. City staff is diligent about critical follow-thru of quarterly grant progress ---PAGE BREAK--- P a g e I 15 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana and budget reporting and ultimately successful project completion and close-out with follow-on monitoring. Years of experience have taught us the single most important aspect of grant administration is regular communication with the granting entity. Further, our District Administrator at the Montana DOT has pledged his staff to provide Kalispell technical assistance in the administration of the TIGER grant if awarded. Letters of financial commitment, intent, and support for the Glacier Rail Park/Kalispell Core Area Development and Trail project may be found at: http://www.kalispell.com/community_economic_development/Tiger2015.php IV. Grant Funds and Sources/Uses of Project Funds TIGER 2015 funding is critical to the completion of this project. The State of Montana collects no sales tax and therefore has limited resources for funding transportation projects of any kind in spite of the fact that this state of 1,000,000 residents hosts 11 million visitors each year. Likewise, the City of Kalispell does not have the authority to implement sales tax and is therefore financially restricted. Analysis conducted by KLJ Engineering indicates that the cost to complete the project is $21,175,375 in 2015 dollars. A fifty-three % (53%) non-federal match of $11,175,375 has been committed by BNSF, the City of Kalispell, and FCEDA. The TIGER 2015 request is for a federal investment of $10,000,000 (47%) to complete the Rail Park construction. A detailed use of funds is included with the budget on Page 28. Source of Project Funds Contribution Total %age of Project Proposed TIGER 2015 $10,000,000 $10,000,000 47% BNSF Contribution $500,000 $11,175,375 53% City of Kalispell Contribution $4,500,000 Flathead County Economic Development Authority (FCEDA) $6,175,375 Total Project $21,175,375 $21,175,375 100% The City of Kalispell has committed $4,500,000 to the project from the Westside Tax Increment Finance District. Additionally, Kalispell’s Brownfields Program will access EPA Brownfields funding thru Targeted Brownfields Assistance at Region VIII for work as needed to include Phase I, Phase II and cleanup dollars as appropriate. Finally, the City of Kalispell will contribute the costs of administering the TIGER 2015 grant if awarded at no charge. BNSF has committed $500,000 to the project. The remaining balance of $6,175,375 will be provided by FCEDA. V. Primary Selection Criteria Safety Shipping cargo by rail to and from the Glacier Rail Park will improve the safety of the entire transportation corridor on which the cargo is moved. Reduction of truck traffic in the shipping catchment area of Northwest Montana will reduce the potential for collisions and harm to people and the environment. For example, the current fatality rate in Montana is 2.11 per 100 million vehicle miles due to the rural nature of the state highway system. It can be estimated that during the 20 years following the completion of the project, the use of rail for cargo movement to and from this facility will save 1.1 lives for a monetized savings of $10.2 million due to reduced ---PAGE BREAK--- P a g e I 16 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana fatalities. Due to lack of data on less severe accidents, only fatalities were calculated. If data on all levels of accidents were available, this savings would be considerably higher. The project will increase safety by reducing truck traffic on residential streets creating a buffer between the Rail Park and residences. CHS operates a fertilizer facility adjacent to propane storage and fuel islands within blocks of Kalispell’s historic Eastside residential neighborhood and the HeadStart preschool. CHS’ move to the Rail Park will eliminate risk to these small children and the historic neighborhood serving the goal of curing environmental justice issues of the past. With their move to the new facility and out of the Core Area CHS will implement a list of innovative improvements that will increase safety for their employees, residents and the environment including: • Less flammable facilities • Better fire suppression systems • Elimination of potential contamination of a state waterway • Installation of a state-of-the-art dust collection system for grain elevators • Office design for evacuation during a fire that meets current fire and building codes Anytime a 28-car train is loaded with grain at the CHS grain elevators in the Core Area, the train blocks three of the six north-south at-grade crossings in the City of Kalispell. If a 48-car train is brought to the Core Area it blocks all six north-south crossings cutting off emergency services in the downtown area from medical services on the north edge of the city. This creates a precarious situation for emergency services in the community. Relocating in the grain elevators to the Rail Park will eliminate this risk to residents. Additionally, 1.1 lives are predicted to be saved when the six at-grade crossing are removed from the downtown area with the installation of the Kalispell Trail. Removal of the fertilizer operation and the at-grade rail crossings will generate a $21 million public savings as calculated in the BCA due to the predicted reduction of over 2 fatalities over the next 25 years. Of critical importance is the construction of the bike and pedestrian trail through the city of Kalispell. As addressed earlier, 50% of the pedestrian fatalities in the city over the past 21 years have happened in the Core Area within a block of each other. This project will create a safe pedestrian walkway with the needed crossing upgrades. The construction of trail will provide a safe separated path. The development of this new trail is estimated to generate $31 million in public savings due the predicted reduction of 3 pedestrian fatalities based upon daily traffic trips along Center Street in the Core Area where these prior fatalities have occurred. There currently is not a safe sidewalk or separated pathway along this street which puts pedestrians at risk each day. State of Good Repair Developing a rail-served industrial park in a depleted gravel pit zoned for industry will improve the condition of existing transportation systems in northwest Montana. The Rail Park is adjacent to property owned by BNSF which is already served by one spur line. Development of the ---PAGE BREAK--- P a g e I 17 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Children Crossing 7 Lanes of Traffic (US 93) on Rail Tracks infrastructure serving these properties will make the sites attractive to new and expanding businesses. Leasing rail-served lots to rail users and a transload service provider will provide a sustainable source of revenue for the operation and maintenance of the Rail Park. FCEDA engaged Willdan Financial Services to evaluate the financial feasibility of the Rail Park and develop the operating proforma. FCEDA has determined based upon the cost estimates provided by KLJ Engineering and the operating proforma, that with this TIGER 2015 federal funding request, the project is financially feasible. This determination is based upon funds on hand, revenues generated from the Rail Park and traditional debt financing in addition to this grant request. The completion of the Rail Park project creates increased regional access to rail and reduces dependence on trucks. This project is consistent with the Great Northern Corridor Coalition’s goal of developing strong freight corridors to improve freight mobility, system efficiency, and operations. The mode conversion from road to rail for the transportation of heavy agriculture, wood, and fuel products will reduce highway maintenance and preservation costs. The mode conversion will also result in increased productivity due to time savings achieved by reducing congestion along US Highways 2 and 93 caused by the heavy truck traffic where they meet in the Kalispell Core Area at Montana’s busiest intersection. Economic Competitiveness Construction of the project will contribute to the long-term growth of the economy by fostering jobs in Northwest Montana. FCEDA works to attract new and expanding businesses to the region and assist existing companies to grow in order to foster job creation in the northwest region of Montana which is an Economically Distressed Area in part due to a decline in the traditional industries of timber, mining and aluminum production. FCEDA is pursuing three goals in creating the Rail Park. First is to create access to the BNSF line, an underutilized resource for Northwest Montana. Second is to create alternative transportation access to area residents so that they are better able to avail themselves of workforce training and/or education and ultimately access work to support their families. Third is to create opportunities for investment and redevelopment in the Kalispell Core Area where properties being unencumbered by track are put back into the highest and best use attracting both tourist and residents to the Core Area. A modern rail park will provide FCEDA with a new resource to meet today’s manufacturing and industrial requirements. The Rail Park will also assist existing business to expand as their ability to reach new markets is improved. Businesses moving into the Rail Park will create new jobs paying wages at or above the county average wage. The second part of this project, creating ---PAGE BREAK--- P a g e I 18 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana safe, alternative transportation through the construction of the Kalispell Trail is an integral part of the revitalization of the Kalispell Core Area. Relocating CHS to the Rail Park increases efficiency and supports the goals of the Great Northern Corridor Coalition to promote economic growth, increase efficiency in moving commodities as well as operational efficiency. CHS receives grain from farmers in Flathead and neighboring Lake County. With the increased rail capacity provided by the completion of this project, a larger portion of the grain grown in Lake County will move directly from Kalispell by rail to Portland, Oregon rather than by truck to Lewistown, Idaho and then by barge to Portland. This is an average savings of $0.071 per ton mile or an estimated savings to the grain shippers of $500 per 100 tons. Relocation to the Rail Park also improves CHS’s capacity to serve economically disadvantaged communities in nearby Lincoln and Sanders Counties with deliveries of fertilizer. CHS is currently unable to meet demand due to facility limitations. Capacity improvement will provide more efficient and environmentally sound transportation services for these neighboring communities. In addition to locating CHS in the Rail Park for increased economic growth, other companies are expected to lease the remaining available lots in the Rail Park creating direct and indirect jobs in manufacturing goods for shipment to the West Coast and Alberta. The Rail Park will resolve a transportation impediment to increasing U.S. exports to global markets, reducing transportation costs associated with moving products to market. The new Rail Park will generate new cargo movements and not displace current economic activities. Mission Mountain Railway forecasts that the Glacier Rail Park will generate an increase of more than $250 million in economic value through increased rail shipping capacity and move a projected $158 million in additional freight with an additional 14,0001 cars/year in the next 15 years. Using rail versus truck is estimated to improve the economic competitiveness of the region by $18 million over the next 25 years based upon the operational cost savings created by this modal conversion. Quality of Life- The Six Livability Principles Construction of the project will improve the quality of life of residents of Kalispell as well as those in the region of Northwest Montana. This project exemplifies the core livability principles established by the Partnership for Sustainable Communities that are being used by federal agencies as guidance for project selection. The robust planning process of Kalispell’s Core Area Plan reflects these principles. In 2014, Kalispell’s Core Area Plan project was selected by the American Architectural Foundation as one of eight communities to participate in the 2014 Sustainable Communities Design Academy. Provides more transportation choices The project will provide more transportation choices for freight movement by building the only transload facility in the region. The completion of the Rail Park is pivotal in expanding transportation choices and access to economic opportunities for the residents of Kalispell and the 1 This is the estimated capacity of the rail yard based upon a 54 car train per day, 5 days per week. ---PAGE BREAK--- P a g e I 19 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Flathead Valley. Construction of the modern Rail Park will allow the tracks through the center of town to be replaced with a paved, universally accessible trail connecting existing trails creating a cohesive alternative transportation system. This comprehensive system will provide residents, particularly economically disadvantaged and elderly people, access to business districts, grocery stores, schools, child and elder care, health care, workforce training and employment assistance without needing a car. Promotes equitable, affordable housing 2013 Census data indicates that 16.5% of Kalispell residents live below the poverty line. Through the recent economic downturn, Flathead County has consistently had the highest residential foreclosure rates in the state. The City of Kalispell’s Core Area Plan has already served as the catalyst for an affordable, senior housing apartment project. This project, Depot Place, built 40 one-and two-bedroom units which were completed in April 2013. Depot Place was built along the current tracks specifically because of the Core Area Plan describing the goal of replacing the tracks with a multi-use trail. The Core Area Plan Market and Feasibility Study conducted by Willdan Financial Services in May 2013, projects a positive market for additional dense, affordable and mixed-use projects. These projects will be even more desirable when the existing downtown rail track is replaced with the proposed Trail. This trail will connect the east and west parts of the city providing a safe route between grocery stores, workforce training facilities, and places of work. In and adjacent to the Core Area are four low- income senior housing developments where over 180 elderly citizens live and will easily be able to use the new trail. Additionally trails running to the south and north of the city will intersect with the new trail increasing safe, non-vehicular access to medical facilities, shopping and the community’s larger retail stores where many of the community’s lower income residents are employed. This Kalispell Core Area plan is available at: http://kalispell.com/community_economic_development/ Enhances economic competitiveness Current Kalispell rail served lots are too small to attract new industrial rail users. Additionally, other potential users avoid locating next to the rail line which has left 44 acres in Kalispell’s Core Area blighted and vacant. The project will create a viable, appropriate location for industry to access rail connecting it to the Great Northern Corridor. Rail access is a valuable and currently underutilized resource that will create new opportunities for businesses in this remote region. Supports existing communities Kalispell’s Core Area Plan speaks to the necessity to better serve the needs of rail-served businesses in Kalispell and specifically addresses the wishes of this community. Through a two- year planning process, Kalispell worked with the volunteer Core Area Steering Committee, listened to and documented the priorities of its residents. This project brings the City closer to realization of community goals through implementation of the Core Area Plan. This frontier community clearly identifies with the livability principles outlined by the Sustainable Communities Partnership—even if few would articulate their priorities using the same words. The lesson of Kalispell’s planning process was that carefully listening to residents empowered the community to take action, facilitated by their public servants, to create the ---PAGE BREAK--- P a g e I 20 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana tangible change they want at a larger scale than any one individual or entity could effectuate. A local farm cooperative, now known as CHS, helped to found Kalispell. Today 10% of CHS customers are centennial farms passed down through families for generations. The retention and expansion of CHS is important to Kalispell—not only for jobs and tax base but because it represents the heritage of this community. Coordinates and leverages federal policies and investment Federal Investment to Date EDA Grant for Purchase of Rail Park Site $ 856,151 EPA Pilot Project/Phase I & II Assessment Funds in the Core Area $ 548,088 Total Funds Expended to Date $ 1,404,239 The City of Kalispell has been working with the US Environmental Protection Agency through the Brownfields program since 2009. The City was awarded three grants in three consecutive years. It is now working to capitalize on these investments to make Kalispell a healthier and more economically viable community. In addition to Brownfields Assessment and Clean-up Revolving Loan Fund grants, the City was one of only 23 communities selected as a pilot for EPA’s Area-Wide Planning projects. This funding allowed Kalispell to conduct an intensive public involvement and concerted planning effort on its core, historically industrial railroad corridor. To date, EPA Brownfields has invested $1,575,000 throughout Kalispell, $548,088 in the Core Area. Through the Assessment grant, Kalispell has conducted 14 Phase I and 5 Phase II environmental site assessments—most in the Core Area due to the high concentration of brownfields caused by historic uses. Kalispell has also exercised its Clean-up Revolving Loan Fund grant through a high profile petroleum clean-up in the Core Area and is currently working on an even larger scale, hazardous material clean-up project further down Main Street. By the end of 2014, Kalispell’s Core Area Plan had served as the catalyst for $8 million in new investment in Kalispell—from public and private sources. This investment built infrastructure, commercial buildings, and affordable senior housing in the Core Area. FCEDA has utilized an award by the US Department of Commerce Economic Development Administration for the acquisition of property for the sole purpose of building a rail-served industrial park. After extensive research, FCEDA identified the former gravel pit site on the east end of Kalispell as the best location for a rail park. This site was selected based upon its access to existing rail line, geotechnical stability, proximity to water and sewer infrastructure and existing industrial zoning. In advance of purchase, the City used its Brownfields Assessment grant to conduct Phase I and Phase II Environmental Site Assessments on the property. FCEDA closed the sale in February 2012. The US EDA has invested $856,150 in the Glacier Rail Park property acquisition. FCEDA itself has invested over $530,000 and hundreds of hours of staff and volunteer community board members into the planning efforts of the Rail Park development. ---PAGE BREAK--- P a g e I 21 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana TIGER 2015 funding of the project would be the trifecta of federal funding: transforming this community into an economically viable, more environmentally sustainable and energy efficient place. This project would then serve as a model of coordination and cooperation to other rural communities around the country. If awarded, the combined federal funds would leverage over $11 million in state, local and private investment dollars for the infrastructure and new business facilities in both the Rail Park and along the Kalispell Trail. Values communities and neighborhoods The City of Kalispell’s Core Area Plan is very clear: The residents and property owners in the Core Area and greater Kalispell community want this town to be more walkable, greener, and economically vibrant. This input was gathered over the course of two years during which 33% of the Core Area’s 450 property owners were interviewed to learn their perspectives and priorities. These stakeholders’ landholdings represent 60% of the Core Area land mass. The full force of the community input is guiding the City in its policy, partnerships, and process for redevelopment of the Core Area and development of the project. Constructing the Rail Park is the key and critical step to fully realizing the goals of the Core Area Plan. The Kalispell Core Area Development and Trail are located in the Low Income Census Tracts (LICT) within the City of Kalispell. The primary benefit of redevelopment and connectivity bringing jobs, amenities, housing and services will be conferred upon the residents of these census tracts which are currently disproportionately negatively affected by surrounding blight. Environmental Sustainability In 2008 a tanker truck spill caused serious environmental damage and cleanup costs threatening the water quality of Flathead Lake, the largest, natural fresh-water lake west of the Mississippi River. “Gasoline from the tanker discharged onto the embankment directly up gradient from Flathead Lake, impacting the seeps, springs, and adjoining shorelines of the Flathead Lake. Fumes from the spill resulted in the evacuation of five homes along the lake for nearly a year.” Daily Inter Lake, May 7, 2013. Again in April 2015 a tractor trailer spilled in nearly the same location next to Flathead Lake, this time carrying 3700 lbs. of hydrochloric acid. Converting highly toxic shipments from truck to rail protects the environment from the more accident prone road transport which repeatedly demonstrates significant environmental dangers in this pristine landscape. The project is an extraordinary story of brownfields reuse and revitalization creating environmental sustainability at the doorsteps of Glacier National Park. The Rail Park site is a former gravel pit and concrete batch plant property used for heavy industrial purposes for the past century. Reusing this property along an existing rail line for rail access is the highest and best use of the property and importantly prevents urban sprawl. Following on this the Kalispell Core Area Development and Trail will address a large swath of brownfields sites that are infill, ---PAGE BREAK--- P a g e I 22 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana blight and located in an economically disadvantaged area. Remediation and re-greening this area with trees and landscaping along the trail will create a healthy, inviting center for the community and address the long-standing environmental justice issues of the community. VI. Secondary Selection Criteria Innovation The Glacier Rail Park incorporates the region’s first-of-its-kind transload facility. Transferring a shipment from one mode of transportation (truck) to another mode (rail) – on site will allow manufacturers and businesses to unload/load goods and merchandise without having direct access to a rail siding at their respective facilities. The transload facility will minimize the need for extra shipping costs by maximizing the use of existing rail infrastructure. In addition to the transload facility, the site offers an innovative track design that allows the transload facility to operate while providing businesses, which need daily rail access, with the opportunity to conduct operations without delays due to moving rail cars throughout the park. The parcel rail layout also demonstrates an innovative approach as the site designs allows multiple businesses’ rail operations to be conducted at the same time. This design will create a highly efficient rail use. An innovative partnership has been created between the City of Kalispell, FCEDA, BNSF, Watco/MMR and local businesses. These major partners have created a working relationship whereby all interested parties voice their thoughts, concerns, and ideas on a weekly basis to create a functional and expandable rail park. With the continued cultivation of these partnerships, the Rail Park has the ability to serve businesses in Northwest Montana, thereby creating an innovative marketing strategy to ship goods not only throughout the Great Northern Corridor and the United States but also into Alberta, Canada. The financing structure of the project blends a variety of potential funding sources and leverages the expertise of both the private and public sector to create a cohesive development strategy. The City of Kalispell is contributing Tax Increment Finance (TIF) District funds derived from the Core Area to the project. FCEDA is proposing to utilize the New Markets Tax Credit program, TIGER, Lease Revenue Bonds, Federal Rail Administration loan and cash in a structured financial strategy that leverages both assets and funds to maximize financing. The orchestrated funding strategy requires significant financial engineering and blends both the traditional and non-traditional funding sources to realize the development of the project. FCEDA has engaged the services of Willdan Financial Services to assist with the financial engineering and flow of funds amongst the various sources. This project has garnered the interest of national organizations which have each provided an opportunity for Kalispell to make presentations at the national level. These include: National Brownfields Conference, September 2015; National Association of Local Government Environmental Professionals webinar, October 2012; the National Brownfields Conference, May 2013; the Western Central Chapter of the American Planning Association Annual Conference, October 2013; the International Economic Development Council Annual Conference, October 2013; the Association of State and Territorial Solid Waste Management Officials’ State Superfund and Brownfields Managers Symposium, June 2014. ---PAGE BREAK--- P a g e I 23 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana In March 2014, Kalispell’s Core Area Plan project was selected by the American Architectural Foundation as one of eight communities to participate in the 2014 Sustainable Communities Design Academy. This opportunity connected Kalispell project stakeholders with LEED certified and other sustainable design experts from across the country to assist in integrating innovative and energy efficient designs seamlessly into planning. The team identified opportunities for sustainable projects in the redevelopment of the Kalispell Core Area. In 2015 the Council of Development Finance Agencies selected the project as one of four nationally to receive a Project Response Team site visit to address financing related to the Rail Park development and redevelopment of properties in the Core Area. This opportunity was developed in partnership with the US EPA Brownfields program and is another illustration of the innovative profile of this advanced economic development project in a rural community. Partnership a. Jurisdictional and Stakeholder Collaboration The collaborative inter-jurisdictional approach of the local municipality, City of Kalispell, and the county port authority, FCEDA, are critical components of the success of this project to date and will continue to serve as a distinguishing feature of the project. Not only are the policies and plans of both entities working together, so are the staff. In such a small community, staffs from both offices are just as likely to coordinate their efforts from the bleachers of a Peewee baseball game as they are from behind a desk. BNSF and Watco/MMR have provided valuable direction and support to the process as we work to piece together a complex puzzle. The many and diverse project stakeholders, including private business, railways, community members, public entity representatives, State and Federal representatives and staff, are all on a first name basis. They have been involved from the beginning and continue to strengthen the collaboration through careful attention to frequent communication. In addition to Core Area newsletters, information is regularly played on Kalispell’s local access television station, and media coverage of the project has been robust. These stakeholder collaborations are manifest in the or quarterly updates provided at organizational meetings throughout the community including: Kalispell Downtown Association, Kalispell Business Improvement District, Kalispell and Evergreen Chambers of Commerce, field offices of Senators Jon Tester and Steve Daines and Congressman Ryan Zinke to name a few. All letters of support, media coverage, and public outreach can be viewed at: http://www.kalispell.com/community_economic_development/Tiger2015.php b. Disciplinary Integration TIGER 2015 funding will serve as the final piece of a multifaceted funding package of public, private, state, and local investments. This innovative project could not be readily or efficiently completed without federal assistance from a source like TIGER. This project is the direct result of FCEDA’s mission to invest in community infrastructure to facilitate and foster economic development and job creation. FCEDA’s mission dovetails with the City of Kalispell’s mission to redevelop the Kalispell Core Area as a result of the EPA funded Brownfield Area-Wide ---PAGE BREAK--- P a g e I 24 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Planning Pilot Program (part of the Sustainable Communities Partnership). These organizations’ efforts to work with BNSF and Montana Department of Transportation to improve the community’s transportation system will then result in the twin economic development goals of job creation and redevelopment placing community assets into higher and better uses. This project is the quintessential example of disciplinary integration as it knits together Sustainability Partnership goals shared by USDOT, HUD and EPA. VII. Results of Benefit Cost Analysis The Benefit-Cost Analysis shows that the Glacier Rail Park/Kalispell Core Area Development and Trail project will provide cost-effective benefits to the region. These monetized benefits are substantial at both the 3% discount rate (4:1) and at a 7% discount rate The BCA is estimated only on the amount of grain volume that will move to the Rail Park and convert from a truck / barge supply chain from Kalispell to Portland, Oregon to a primarily railed route with only a short truck trip to Glacier Rail Park and then on rail to Portland. FCEDA has pending commitments for other commodities that currently use truck as their transportation mode to use the Rail Park, but due to complication of trying to calculate multiple completely different logistics moves, only the grain shipments were used in the BCA. This rate yields Discount Rate 7% Discount Rate 3% Quality of Life Converting current rail line going through Downtown to trail Property Values/ Noise Mitigation not calculated Quality of Life Fuel savings due to reduced miles traveled by cargo using Rail Park vs. Truck Gallons of fuel saved 2.6 million gallons of fuel saved by reducing miles traveled with modal shift to Rail 2,977,469 $ 4,730,461 $ Economic Competiveness Operational cost savings Savings of rail transport vs. truck transport 249 million ton miles @$0.071 savings per mile (truck/ barge vs. rail) 7,453,055 $ 11,841,059 $ State of Good Repair Reduction of maintenance on US Roads & Hwys, Consistent with State and Regional Plans Maintenance, preservation and upgrade savings of Highways 49 million VTM reduced off the highways 2,483,315 $ 3,945,373 $ Environmental SustainabilityEnvironmental Benefits from Reduced Emissions CO2 cost savings 22,408 metric tons of CO2 saved 920,932 $ 920,932 $ Safety Closing of 6 rail crossings in Downtown Kalispell Fatality cost savings of 1.1 fatalities $10.7 million saved 5,365,761 $ 8,131,428 $ Safety Reduced fatalities from reduction of VMT Fatality cost savings of 1.1 fatalities $10.2 million saved 5,139,806 $ 7,789,008 $ Safety Reduction of of pedestrian fatalities in Core Area upon completion of Trail Fatality cost savings of 3.4 fatalities $31.5 million saved 12,665,024 $ 20,199,463 $ ($18,433,147) ($14,652,909) $37,005,362 57,557,725 $ 18,572,215 $ 42,904,816 $ Benefit to Cost Ratio 2:1 4:1 Monetized Value Total Cost Benefit to Cost Ratio Analysis Total Benefits Net Present Value Selection Criteria Description Inputs Value ---PAGE BREAK--- P a g e I 25 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana conservative estimates of net present value (NPV) and benefit cost ratio. Bottom line is that at discount rate of the present value (PV) of the costs in 2015 dollars is $15 million and the PV of benefits is $58 million. This analysis yields a NPV of $43 million and a benefit-cost ratio of 4:1. The greatest share of benefits (63 comes from the combined Safety benefits which are derived from building the trail, the closing the six at-grade crossing and the reduction of commercial truck vehicle miles traveled. Economic Competitiveness benefits account for 32 % of the total benefits due to the reduction in operating cost of using rail vs truck. Quality of Life category from fuel cost savings (13 result from the modal change of truck/barge to rail. When a discount rate of 7 % was used, the PV of costs in 2015 dollars is $18 million and the PV of benefits is $37 million. This rate yields an estimate of NPV and benefit cost ratio per the NOFA guidance based upon using only the initial tenant as the Rail park user in the analysis. This analysis yields a NPV of $19 million generating a benefit-cost ratio of 2:1 over the 25 year analysis. Again, the greatest share (43 of benefits comes from the Safety area when combining, the reduction of pedestrian fatalities, the closure of the at-grade crossings and the reduction in commercial miles traveled. Economic Competition remains the second strongest benefit (20 % of the total project benefits). The remainder of the benefits include improved Quality of Life is achieved from fuel cost savings by moving the cargo on rail vs. truck/ barge and the reduction of road maintenance (State of Good Repair). The benefits used in this monetized analysis include: State of Good Repair— savings in maintenance, preservation, and roadway upgrades Based upon the reduction of 7 million miles traveled on the roads with the grain moves alone, it is estimated that the states of Montana, Idaho and Washington will save a combined $0.8 million in road maintenance, preservation, and upgrades over the next 20 years. Economic Competitiveness — reduction in operating costs The choice of rail as the transportation mode will save an estimated 28 million ton miles an equivalent of almost $2 million in transportation costs to the customer. Not monetized in the BCA is the availability of increased shipping capacity in Kalispell. This new capacity is projected to generated $250 million in additional (not including existing) freight that will be able to move efficiently through BNSF’s Great Northern Corridor. Quality of Life - Energy Savings-An additional 2.5 million gallons of fuel savings will save shipper $5.3 million in fuel costs alone. Project environmental benefits — emission reduction Co2 emissions will be reduced by 17,465 metric tons due to the reduction of vehicle miles traveled that are offset by rail miles, which are much more environmentally friendly than truck ---PAGE BREAK--- P a g e I 26 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana “It is rare to see a project that is so well planned, coordinated, and comprehensive in its large scale impacts for a community and region. ” ~Ryan Zinke Member of Congress transport. This equates to a financial benefit of $1,060,000 in CO2 savings for this grain movement alone. Project Safety benefits — reduced fatalities due to the transport of cargo by rail versus road. By reducing, the total vehicle miles cargo travels by 49 million miles between the Flathead and Portland, Oregon the project will save an estimated 1.1 lives or $10.7 million over the next 25 years and countless less severe injuries. The construction of the Rail Park will enable the Trail to be constructed through downtown allowing six at-grade crossing closures which will save an additional 1.1 lives ($10.2 million) based upon the predictive collision mode below. The completion of the trail is also predicted to save 3.4 pedestrian lives as the trail will provide a safe, separated path for walkers and bikes to use. Also not included in the BCA but important is the fact that the removal of the six existing rail crossings in downtown Kalispell will also reduce insurance costs for the city by $50,000 per year, or $650,000 over 20 years (benefits from this are realized in year two of the project). Short-Term Impacts on Employment and Economic Growth Job creation impacts from the total project are estimated in at 275 family wage jobs at $76,900 per job year in the three years spanning the construction period of both the Rail Park and Trail. Positive economic impacts resulting from these jobs are not included in the benefit-cost ratio.The project team used the administration’s jobs formula to calculate short-term employment impacts of Phase II. Based on the $21 million cost for this phase of the project, 201 job years will be created or sustained during the rail park construction years of in 2016. An additional 74 full time equivalent jobs will be generated during the construction of the trail in 2017 and 2018. Crossing MP City County Rank within County Predictive Collision Train Speed # Tracks AADT Lanes 059375E 1226.70 Meridian Rd Kalispell Flathead 22 0.009105 10 mph 1 Main 10482 2 059374X 1226.30 5th Ave NW Kalispell Flathead 21 0.008358 10 mph 1 Main 7611 2 059373R 1226.10 Main St ((US 93) Kalispell Flathead 4 0.021198 5 mph 1 Main 25833 5 099099N 1225.93 1st Ave E (US723) Kalispell Flathead 33 0.000145 10 mph 2 Main 6409 3 059372J 1225.79 3rd Ave NE Kalispell Flathead 23 0.007626 10 mph 1 Main + 5422 4 059371C 1225.70 4th Ave NE Kalispell Flathead 24 0.007753 10 mph 1 Main 5761 2 Six crossings have an annual predictive collision r 0.054185 RAILROAD CROSSING SAFETY Road CHS Fertilizer Plant and Propane Tanks ---PAGE BREAK--- P a g e I 27 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana “The significant decrease in bridge loading will increase the life of the bridge structure and the possibility of a train derailing or spilling cargo onto US 2 would be eliminated [by the project]. These observations result in direct benefit to vehicle traffic in terms of safety. For pedestrians, a grade- separated crossing provides both safety and connectivity which do not exist today and probably will not exist into the future unless this rail bridge conversion is implemented.” ~Ed Toavs, District Administrator Montana DOT Construction Jobs Created by the Total Project VIII. Project Readiness A. Technical Feasibility This project is ready to begin construction in March 2016. Both the Kalispell Trail and the Glacier Rail Park are technically feasible and ready to begin. Final design of the Glacier Rail Park was prepared by KLJ Engineering working closely with BNSF, Watco/MMR and the first tenant, CHS and has been accepted by all. The design team foresees no complicating or project ending factors. The Rail Park is owned by FCEDA with no significant environmental or complicating features. The Glacier Rail Park project has met all local requirements for approvals and permits. State and federal requirements will be met by September 2015, so that when funded, USDOT could obligate funding well in advance of September 30, 2017. Project risks have been identified and mitigation strategies incorporated (see below). The project schedule illustrates that contract bid documents will be finalized and the Rail Park ready for bid September 2015 and the Trail ready for bid in March 2017. The Detailed Statement of Work can be viewed at: http://www.kalispell.com/community_economic_development/Tiger2015.php B. Financial Feasibility The project is financially feasible. Both Glacier Rail Park and Kalispell Trail components of the project are financially feasible. The project is appropriately capitalized up front and uses 2016 2017 2018 Total Q1 201 0 88 Q2 201 0 88 Q3 201 62 0 Q4 201 62 0 Capital Spending in Mill. 15.5 $ 2.4 $ 3.4 $ 21.2 $ Direct Jobs by Calendar Quarter Total Annual Jobs at $76,900/yr 201 31 44 275 ---PAGE BREAK--- P a g e I 28 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana asset management approaches that optimize its long-term cost structure. Additionally, a sustainable source of revenue is available for long-term operation and maintenance. The full and detailed budget is located in the Appendix. The Board of Directors of FCEDA have provided a resolution to provide the matching funds of $6,175,375 to complete the Rail Park through a combination of cash and financing. This combined with the $4.5 million commitment from the City of Kalispell and the $500,000 for BNSF totals $11,175,375 in non-federal match. The TIGER Project will be managed utilizing public procurement standards complying with Federal and State of Montana law which will ensure any risk is mitigated prior to and during construction. The Rail Park budget has been constructed by KLJ Engineering, a firm with Rail Park planning experience, with extensive input from BNSF and Watco/MMR. The estimates made were conservative with $1 million added for contingencies. Procurement and construction will meet all county, state and federal DOT requirements. Detailed budget available at: http://www.kalispell.com/community_economic_development/Tiger2015.php Detailed Project Budget Item Description Additional Info Unit TIGER Funds Matching Funds Total Project Funds FCEDA RAIL PARK Easement and Property Acquisition $0 $225,000 $225,000 Railroad Track 13,724 Feet of New Rail LS $4,307,040 $0 $4,307,040 Roadway and Traffic Improvements 6,600 feet of Roadway, Traffic Signal LS $2,620,852 $0 $2,620,852 Electric and Gas Electric and Gas Service to Facility LS $0 $310,000 $310,000 Grading CY $0 $3,326,587 $3,326,587 Wastewater and Storm Water Wastewater Service to Facility LS $0 $1,162,000 $1,162,000 Water Water Service to Facility LS $0 $972,356 $972,356 Engineering Utilities, Rail and Road LS $0 $1,741,500 $1,741,500 Mobilization Cost to Prepare for Construction LS $0 $691,000 $691,000 Legal/Admin/Permitting Contractual Agreements LS $0 $194,000 $194,000 Bonding, Interest, Insurance Financing LS $0 $500,000 $500,000 Budget Risk Management Budget Risk Management LS $0 $1,000,000 $1,000,000 ---PAGE BREAK--- P a g e I 29 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana KALISPELL TRAIL Multi-Use Trail Engineering 10,500 Feet of New Trail LS $0 $325,000 $325,000 Multi-Use Trail and Complete Street Connections Remove Rail and Create Trail LS $3,072,108 $789,892 $3,862,000 TOTAL ESTIMATED COST $10,000,000 $11,175,375 $21,175,375 FCEDA’s letter of support and the organization’s resolution are included with the City of Kalispell’s resolution. These clearly commit both entities to meet their full funding match obligation and may be viewed in the in appendices located on the application website. The City of Kalispell and FCEDA have worked together closely over the past decade to implement economic development projects that create jobs and strengthen the entire community. Most recently, the City and FCEDA collaborated on purchasing a facility and leasing it to a company creating over 500 jobs in Kalispell. The City of Kalispell’s Community Development and Finance Departments have the capacity to manage a federal grant of the size requested with strong internal processes and controls. Over the past five years, the City has been awarded 33 direct federal grants totaling over $8 million. The City complies with audit requirements performed under OMB Circular A-133. TIGER 2015 Project audit requirements will be the responsibility of the City of Kalispell as the Grantee. Please note that no administrative cost allowance is being requested in this grant application as these costs will be covered by the City of Kalispell. C. Detailed Project Schedule Rail Park- Trail Project Schedule Approved/Comp REVIEWED-Rail Park Categorical Exclusion Worksheet (FRA) April 2015 REVIEWED-Rail Park Layout & Operation Plan (BNSF) April 2015 APPROVED-Traffic Design Concept and Location (Montana DOT) April 2015 COMPLETED-Construction Documents for Rail Park June 2015 SUBMITTED-Trail Categorical Exclusion Worksheet (USDOT) June 2015 APPROVAL-Water Design (City of Kalispell and Montana DEQ) June 2015 APPPROVAL-Sewer and Storm Water Design (City of Kalispell and September 2015 APPROVAL-Traffic Design Construction Documents (Montana DOT) September 2015 RECEIVE- Notice of Award from the US DOT September 2015 BID- Construction of Rail Park September 2015 SIGN- Lease with CHS September 2015 BEGIN- Rail Abandonment and Rail Banking Process September 2015 RECEIVE- TIGER VII funds from US DOT January 2016 SIGNED-Rail Park Construction Contract February 2016 BEGIN-Rail Park Construction March 2016 COMPLETE- Environmental Site Assessments for Trail July 2016 COMPLETE-Construction of Rail Park December 2016 COMPLETE-CHS Facility Construction and Relocation December 2016 ---PAGE BREAK--- P a g e I 30 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana “Expansion plans have already been developed for the mall. wouldn’t be surprised if other businesses in the area were also waiting eagerly to reinvest once the tracks were removed.” ~David Peterson Executive Vice President, Goodale and Barbieri- Owner of Kalispell Center Mall COMPLETE- Rail Abandonment and Rail Banking Process January 2017 COMPLETE-Trail Property Acquisition February 2017 COMPLETE-Final Design and Construction Documents for Trail February 2017 BID-Construction Costs of Trail March 2017 AWARD- Contract for Trail Construction May 2017 OBLIGATED- All TIGER Funds June 2017 REMOVE Track June 2017 TRAIL Construction July 2018 COMPLETE- Complete Street Extensions & Upgrade Pedestrian Crossings October 2018 D. Required Approvals 1. Environmental Permits and Review a. NEPA The National Environmental Policy Act (NEPA) process was initiated in 2014 with the preparation of an FRA Categorical Exclusions Worksheet. The worksheet was reviewed by FRA staff in April 2015. FRA staff stated that the CE was the appropriate class of action and made just four suggestions based on the scope of the current TIGER 2015 application. A revised FRA Categorical Exclusion Worksheet has since been prepared addressing said concerns and is submitted concurrently with this TIGER application for final review. The City of Kalispell is confident that the Categorical Exclusion Worksheet will be accepted with no further assessment required based on initial FRA review in April 2015. The project will NOT negatively impact the natural, social or economic environment. Phase I and Phase II assessments were conducted in 2011 on the Glacier Rail Park site. Three issues were identified and all three were remediated prior to FECDA purchasing the property in 2012. As part of the FRA CE Worksheet, 21 city, county, state and federal agencies have been consulted relative to both the Glacier Rail Park and Core Area Trail and no significant impacts have been identified to date. b. Agency Reviews The project falls under the purview of the FRA as it is primarily a rail project. As such, the FRA has already reviewed and commented on the NEPA and an updated NEPA document is attached with this application for final approval by FRA. Environmental studies and other documents demonstrate no negative environmental impacts and therefore no mitigation needed. The updated Categorical Exclusion Worksheet and related environmental documents can be found at: http://www.kalispell.com/community_economic_development/Tiger2015.php ---PAGE BREAK--- P a g e I 31 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana 2. Legislative Approvals The Glacier Rail Park site is annexed into the city and is appropriately zoned for rail and industrial development. The property has received plat approval and as such is eligible for the extension of all municipal services including streets, sewer and water lines, and fire and police protection. The existing BNSF ROW to be converted to trail upon abandonment by BNSF is also inside the Kalispell City Limits. Abandonment of the BNSF rail through the Core Area of Kalispell will be initiated by BNSF at the time of TIGER Grant approval and relocation of CHS to the Rail Park. On June 1, 2015, Kalispell City Council affirmed a financial commitment and approval of development of this site into a linear trail system. No further legislative approvals are needed at any level of governmental review. Letters of support are attached demonstrate strong, wide-spread support through all levels of government. 3. State and Local Planning Creating rail-served industrial sites for new and existing businesses was identified as an economic development priority by the community in the Flathead County CEDS completed in August 2012. The Kalispell Core Area Plan adopted by the Kalispell City Council on December 2012 is the culmination of five years of collaborative effort, intensive public involvement, property acquisition, and partnership development. The corner stone of this plan is the removal of the existing rail through the center of Kalispell, redevelopment of this rail line into a linear trail system creating a safer, walkable community primed for redevelopment and relocating existing industrial rail users to the new Glacier Rail Park. The Montana Department of Transportation states in their letter of support for this project that upon award from TIGER 2015 this project will be immediately added to its statewide transportation improvement program (STIP) per the agency’s usual procedure. E. Assessment of Project Risk and Mitigation Strategies The project sponsors have experience developing large public works projects and have experienced staff in leadership positions on this project. Past projects include an EPA funded $7.7 million grant for construction of a waste water treatment plant in 1993, among many others. This experience combined with the project specific mitigation factors described below demonstrates that the project risks are relatively low and mitigation strategies are planned. Willdan Financial Services prepared an operating proforma for the Rail Park taking into account the development timing, initial capitalized losses, operating reserve and staggered build out of the tenants in the Rail Park. The Rail Park does not require full build out to maintain profitability and service debt. Willdan conducted several stress tests of the Rail Park operating model to provide FCEDA with a variable development model that can be both financially feasible and maintained. Potential Risk Area Risk Type Current Status/ Proposed Mitigation Risk Level Technical Feasibility Feasibility Preliminary design developed with input from railroads Low Design Standards Conformance Feasibility Preliminary design developed with input from railroads Low ---PAGE BREAK--- P a g e I 32 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Partner Railroad Approvals Schedule Preliminary design developed with input from railroads; railroads to continue as funding partners in project Low Local Jurisdiction Approvals Schedule Past history of multi-agency cooperation and collaboration will continue. Low Environmental Approvals Cost, schedule Trail construction is within existing right-of-way. Impact on built and natural environment appears low but has not been fully assessed. Additionally, extensive communication continues with MT DEQ as they clean up the site adjacent to the rail park. Low to Medium Public and Stakeholder Support Cost, schedule Extensive public involvement effort included as part of design and environmental work. Level of public interest is high, in particular from nearby residential neighborhoods. Low Construction Cost, schedule Currently in final Design Phase. To mitigate potential risks, conservative prices and quantities were used. In addition, Project Budget contains a $1M contingency fund. Low to Medium In Conclusion Taken as a whole, the Glacier Rail Park/ Kalispell Core Area Development and Trail project is transformative. This project is a model for high level, meaningful public involvement; appropriate federal investment answering the “but-for” question; local and regional collaboration that reaches across political jurisdictions; creation of public-private partnerships; addressing environmental sustainability and furthering economic growth at every level from the individual putting food on the table to the expansion of international trade. This community has worked at every step to find solutions to the current challenges on the ground and create innovations that will make our little corner of the world viable and livable for our grandchildren. We have moved beyond dreaming, beyond planning: Kalispell is poised to build its future. This project transforms an old gravel pit into an active industrial rail park creating jobs for the next hundred years. This project transforms an old, blighted rail line into a safe trail connecting all citizens, especially the economically disadvantaged, to ladders of economic opportunity to improve their quality of life. This project transforms acres and decades of disinvestment and decay into a robust and vibrant economic hub. The Glacier Rail Park/Kalispell Core Area Development and Trail is the catalyst for a century of change to come—building infrastructure and building lives. ---PAGE BREAK--- P a g e I 33 Glacier Rail Park/Kalispell Core Area Development and Trail TIGER 2015 GRANT APPLICATION Kalispell, Montana Pre-Application Changes At the time of pre-application our engineering firm was in the process of developing the final design and provided a conservative estimate. After refining the design and the project budget we were able to decrease the overall budget from $27 million to $21,175,375. Consequently the match contribution also decreased from $17 million to $11,175,375.