The developer behind the Kalispell Center Mall's impending transformation has withdrawn its application for $16.9 million in tax increment financing funds meant to help pay for the project.  

Parkline Partners LP pulled its application to the city on May 27, according to Community Development Manager Nelson Loring. 

The application was still in the early stages of the city's review process. The Urban Renewal Agency discussed it during a work session just six days before it was withdrawn.  

Loring said he doesn't know why the application was pulled, but that the developer is allowed to resubmit. 

Parkline Partners LP shares the same physical address as Texas-based SHOP Companies. The business's investment platform, SHOP Development, owns the Kalispell Center Mall property, according to the company's website.  

Daniel Fuller, founding partner of SHOP Development, and Buck Wheeler, the company's executive vice president and whose name appears on the application, did not respond to requests for comment before press time. 

REBRANDING THE area as the Parkline District, the developer aims to transform the largely vacant shopping center into a more attractive, inviting destination featuring an additional hotel, event space and a mix of retail stores that include national brands. 

Parkline Partners is considering locating the future Kalispell branch of the Flathead County Library on the northwest corner of the property. Red Lion Hotel is also part of the redevelopment project.  

Without the tax increment financing dollars, the developer would be left with a more than $27.2 million gap in funding, according to an analysis conducted by Economic & Planning System, Inc. The study was recommended by the city to prepare a third-party report.  

Even with the public funds, the developer would still need to raise revenue or lower costs to make the project work, according to the report.  

The total project cost is expected to be $65.3 million, most of which is from acquiring the property, and materials and labor costs. 

The tax increment financing funds would have gone toward demolishing the former Herberger's department store and installing a road where the structure once stood to connect to Third Avenue West. That side of the mall would receive a new facade. Funds would also go toward streetscape improvements on Central Street and Fifth Avenue West.  

The money would have come from the West Side Urban Renewal-Core Area Tax Increment Financing Assistant Program and be distributed in phases, because the fund does not have enough money to cover the full request at once, according to city officials. 

Tax increment financing allows local governments to fund improvements in designated areas with struggling or undeveloped properties. As the blighted property within the tax increment financing is improved and property values increase, the additional tax revenue generated is set aside and can be used by private developers to make future improvements.  

Reporter Jack Underhill can be reached at 406-758-4407 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.