The Flathead County Economic Development Authority has asked the city of Kalispell to annex its 40-acre Flathead County Rail Park east of Whitefish Stage Road just outside Kalispell.

It’s the next step in developing the industrial park. The Kalispell Planning Board will consider the annexation at a public hearing on Tuesday.

“We decided to annex because in a best-case scenario we would construct sewer and water to the property next spring,” said Kellie Danielson, chief executive officer of the economic development authority and Montana West Economic Development. “We need city services.”

The city and the economic development authority applied for an $8.7 million federal Transportation Investment Generating Economic Recovery grant last year to help develop the park, but the money went instead to a bike trail project in Missoula, Danielson said.

“Since then, the city of Kalispell and Flathead County Economic Development Authority have been working to improve the TIGER application for this year’s submittal, which is April 28,” she said. “Quite a bit of engineering has been conducted over the past 12 months on the park — determining utilities, layout of CHS’s new facility at the park, traffic study and how to route trucks, especially CHS’s trucks in and out of the property.”

The authority used a $26,250 grant from the Big Sky Economic Development Trust Fund to pay for a conceptual plan and engineering for the rail park. The next step, Danielson said, is to continue to apply for federal resources to help finance the infrastructure for the park.

Upon annexation, the authority will ask for city heavy industrial zoning on the property. It currently has heavy industrial zoning within Flathead County zoning regulations.

The Core Area Plan within the Kalispell Growth Policy talks about relocating the railroad tracks from the city’s core area. The goal is to work with the railroad to develop a seamless program to remove the tracks and provide a new rail terminal at the rail park.

According to a planning staff report compiled for the annexation request, the city’s initial cost to serve the 40-acre site is estimated at $18,515. Almost all of the cost is related to the acquisition of right of way along East Oregon Street and a part of Whitefish Stage Road. A small amount relates to city police and fire protection.

Initially the property would generate about $13,300 in tax revenue for the city. At 50 percent build-out, the cost of services would be about $41,885 while the tax revenue would be about $121,600 annually.

“Under this scenario, the net revenue to the city would be $79,715,” the staff report notes about a 50 percent build-out. It estimates a total of $313,650 in one-time impact fee payments to the city.

At full build-out the cost of services jumps to $66,250 while the tax revenue to the city  would be $165,161 annually. The net revenue would be $98,911. The running total of impact fees would be $618,976, the report stated.

The Planning Board meets at 7 p.m. Tuesday at Kalispell City Hall, 201 First Ave. E.

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