As the Texas-based developers who purchased the Kalispell Center Mall look to begin the shopping center’s transformation later this year, they’re finalizing an application seeking money through the city’s Tax Increment Financing (TIF) funds to help support the project.
TIF revenue is generated through property taxes in four TIF districts and is intended for projects that improve blighted properties. The Kalispell Center Mall falls within the Westside/Core Area District.
SHOP Development Company purchased the mall and the 22 acres of land it sits on in 2024, renaming it the Parkline District after the adjacent Parkline Trail. Since then, developers have discussed a handful of ideas that would reimagine the space to feature an event venue, a mixed-use retail space, and a new hotel on the southwest side of the property, though any potential plans are still in the early phases, Daniel Fuller with SHOP Development said. They’ve also had conversations with Flathead County Library officials to potentially purchase space for a library branch on the northwest corner of the property.
SHOP developers made a preliminary presentation to the city’s Urban Renewal Agency Thursday afternoon, seeking feedback from staff before they officially submit an application for TIF funds.
“We think that in so many ways this is just a loaded site, but that the mall itself in its current condition is outmoded and underrealized in terms of its attractiveness to new businesses but also in terms of tax generation,” Fuller said. “Diving more deeply into what are the driving considerations of this redevelopment, an obvious point is to celebrate and embrace the Parkline Trail.”
Developers hope to start later this year on the first phase of the project, which would include creating a green space on the northwest side of the property, tearing down the west entrance of the mall that previously housed Herberger’s, and building a temporary façade in its place. In the future, Fuller said there have been discussions with a “well known brewery restaurant” to have a building with indoor and outdoor space featuring fire pits and a rooftop area.
The plans for a new mixed use space, event venue and hotel on the west side of the property are still up in the air, Fuller said.
On the south face of the existing mall, developers plan to widen the sidewalk and create entrances for individual businesses that allow patrons to access individual stores, making it “attractive for daily needs users.”
“We think there’s an opportunity to break up that sort of monolithic façade by introducing a combination of entries, which would be preferred by most users,” Fuller said.
Potential mall tenants could include lululemon, YETI, jewelry retailer Kendra Scott, and eyewear retailer Warby Parker, though the developers hope to bring in local companies as well, Fuller said.
The project would also improve the section of Third Avenue West that connects the property to Center Street and add “Parkline District” wayfinding signage to the area. Construction on the project could begin later this year with phase one, and developers anticipate that renovations on the existing mall would be finished sometime in 2028.
Fuller said that his company plans on requesting about $23 million in the TIF application. It will not be asking for TIF funds to help with signage or renovating the mall’s interior.
The request would be a notably large ask compared to most TIF applications the city has approved. The most recent application with a similar price tag was for a number of public infrastructure projects in two TIF districts, the West Side/Core Area and Downtown, Community Development Manager Nelson Loring said. The application received just over $5 million in TIF funds in 2024.
A third party is currently analyzing the mall proposal – a requirement for TIF fund applications over $200,000 – which should be finished in the coming weeks, Fuller said. Once the financial analysis is in, the developer will submit an official application to the Urban Renewal Agency, which will review it before the project goes in front of city council.
“We’re super-duper close to wanting to jump into the formal process,” Fuller said.