Discussion about the potential for building a community or event center in Kalispell continued Thursday with a focus on how the city can utilize federal grant funding and Westside Tax Increment District revenue as tools for city core redevelopment.

Chaired by Flathead County Fairgrounds Manager Mark Campbell and Kalispell Business Improvement District coordinator Pam Carbonari, a steering group of about a dozen business leaders began the preliminary steps of a needs assessment for an event center, identifying strengths, weaknesses, opportunities and threats that exist for redevelopment to accommodate such a facility.

The desire for a large facility to attract conventions and concerts or serve as a performing arts center is nothing new for Kalispell. Nearly a decade ago a proposed 1,300-seat Glacier Performing Arts Center had plenty of community support and more than $5 million in pledges, but lacked the financial backing needed to bring the roughly $21 million project to reality.

The recently formed steering committee recognizes the need for private investment to make a large event center viable, and learned from city officials about how to redevelop the city core to make it attractive for private investment.

One of those redevelopment tools is two U.S. Environmental Protection Agency Brownfields Program grants the city of Kalispell has to look at the railroad corridor that cuts through the heart of Kalispell.

Brownfields are property where expansion or redevelopment may be complicated by the presence of hazardous contamination. Kalispell has a $400,000 Brownfields assessment grant and a $175,000 Brownfields planning grant.

Part of the assessment includes looking closely at property in the railroad corridor. Katharine Thompson, community development manager for the city of Kalispell, said the city has held 55 meetings with individual property owners so far. Later the assessment will move on to small group meetings. There are 1,100 parcels and 400 property owners in the study area.

Kalispell Planning Director Tom Jentz said he’s been surprised at the common themes expressed by property owners. Walkability in the city core and cleaning up blighted areas are high on property owners’ list, along with removing the railroad tracks.

“About 90 percent say the tracks should probably go,” Jentz said. “The common theme is that they’re holding back redevelopment.”

Carbonari said there are two businesses that use the railroad and both have indicated they would relocate if they’re “made whole” financially.

The other potential tool for redevelopment is the $2.1 million sitting in the Westside Tax Increment Finance District fund. But time is quickly running out for that redevelopment option because the tax district will sunset in March 2012.

If the city does not obligate the money by then, the money would go back to various taxing entities, including schools and Flathead County.

“Our back is against the wall,” said Wade Elder, revolving loan fund manager for the city of Kalispell.

The tax district could be extended with bonding, but to do that the city would need to enter into a contractual, binding agreement for a redevelopment project by the sunset date, Elder explained.

“It has to be very solid,” he said.

If the city can zero in on a redevelopment project and bond the district, it would buy time to expand the district to include two proposed sites for an event center — the fairgrounds and a 3.5-acre site just north of Kalispell Center Mall. Both sites currently are outside the Westside tax district.

The city would need to annex the fairgrounds before it could proceed with building an event center there. Elder said the fairgrounds is “a qualifiable property to annex” because it’s surrounded by the city.

Tax-increment revenue can be used for infrastructure improvements but not for private business improvements.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.