A proposal to give $2.5 million in tax increment revenue to the Whitefish High School reconstruction project is the focus of a public hearing tonight at the Whitefish City Council meeting.

A resolution to redraw the tax increment district boundaries to include the high school property and first reading of an ordinance to OK the allocation - the two prongs of the hearing - are a crucial part of the school project funding.

The tax-increment money from the city is part of $4.5 million in alternative funding that the Whitefish School District has put together to shave its bond request to renovate and rebuild the high school from $19 million to $14 million.

Mail ballots on the school bond request will go out later this month.

The council last month unanimously passed a resolution of intent for the tax increment allocation.

The city intends to give the school district $1 million up front, City Manager Chuck Stearns said in his council report.

"We would also add out of existing tax increment revenue up to $750,000 as dollar-for-dollar matching funds over the next two to three years," Stearns said. "That would mean out of our current revenue projects for the remaining eight years [before the tax increment district sunsets] we would only lose or use $750,000 of tax increment for the high school project and would leave the majority of the un-earmarked $10 million for future tax increment projects."

The city has received about 15 letters of support for the proposed $2.5 million allocation, many from downtown business owners. One letter opposed the demolition of the high school but supported some improvements.

IN OTHER BUSINESS tonight, the council has a second hearing planned on what has become a controversial request for a parking lot on Kalispell Avenue.

Montana Creative Architecture and Design, on behalf of Greg Carter with 307 Spokane Avenue LLC, wants a conditional-use permit for parking on four lots behind the professional office building at 307 Spokane Ave.

At the Whitefish Planning Board meeting last month, the request first failed on a 4-4 tie. The board then recommended approval with 10 conditions plus added direction to install "light-tight" fencing and landscape buffers. The proposal then passed 5-3.

The parking lot is intended to be for tenants of the office building, though it would be open for public use as well. Nine people spoke in opposition at the Planning Board meeting, citing concerns their property would be devalued by the lot. Noise and traffic were other neighborhood concerns.

The office building houses the Whitefish Chamber of Commerce and Carter's Rocky Mountain Real Estate, among other businesses.

City Finance Director Rich Knapp will give a midyear financial report showing that Whitefish's general fund is improving.

In a work session at 5:30 p.m. the council will review impact fees and discuss an advisory committee recommendation to terminate some impact fees.

The regular meeting starts at 7:10 p.m.; both meetings are a Whitefish City Hall.