Reinvest or buy out — the Kalispell City Council is close to making that decision with the Westside Tax Increment Financing (TIF) District.
In a work session on Aug. 22, council members returned their attention to the expiring TIF, which has been a redevelopment tool over the last 14 years that also has accrued roughly $1.8 million and growing.
The city’s planning board will present its recommendation at the city council meeting on Sept. 6 and a decision for what direction to go will likely be voted on.
“We’re at a critical point where decisions need to be made,” City Attorney Charlie Harball said.
Created in 1997 to spur growth and improvement in the designated area of town, the TIF can be expanded and extended through city-issued bonds or be allowed to expire, which it will next March if the council allows it to sunset. At that point the expected $2 million would be paid out in portions to the city, county and school district. The school district would receive a bulk of the funds, $1.2 million.
“Let’s sunset now. We must not speculate during this economic downturn,” Councilor Bob Hafferman said. “We don’t even have a project and we’re messing with taxpayers’ money. They all need the money.”
The city would receive roughly $460,000 and the county would get roughly $340,000, according to Hafferman.
“TIF is not the only tool that is available,” he said. “We’re talking about it now because we have a pile of money collected from the taxpayers that somebody wants to get their mitts on.”
Other council members spoke in favor of extending and expanding the TIF with hopes of staying in line with the original purpose of establishing the district.
“We have to look forward and say if we could help our community with their economic development, how could we do that?” Councilor Jim Atkinson said. “We could do that with the one tool we have, and that’s tax increment districts.”
The district’s boundaries could be extended, which would allow for possible projects that include updates at the fairgrounds or uprooting the railroad tracks running through downtown.
As they have been in the past, members on the council appeared split about which direction they may go regarding the TIF.
Mayor Tammi Fisher summed it up in closing.
“From my perspective I would like to see this come forward. I’m torn frankly, because I think the (railroad) tracks are a big issue,” she said. “On the other hand, I don’t disagree with Bob and Tim (Kluesner). I’m split right down the middle.”