Members of Kalispell's Urban Renewal Agency last week expressed skepticism over a pair of requests from the city and county to use tax increment financing funds for public infrastructure projects.  

The city is seeking $10.4 million from the West Side Core Area tax increment financing fund to construct a new equipment storage and maintenance garage while Flathead County is requesting $2.5 million from the same fund for improvements at the Flathead County Fairgrounds.  

The board ultimately tabled both proposals — which are grouped as one request — during the Aug. 20 meeting until county officials return with more specifics on what upgrades the requested dollars would fund.  

The city Public Works Department wants to build a larger equipment garage for the municipality’s burgeoning fleet of vehicles and other equipment.   

The existing garage, located just south of Legends Stadium, allows city workers to perform the majority of maintenance work — jobs like fixing headlights and overhauling engines. The facility is facing a space crunch, though, with the expansion of the city’s fleet of vehicles.  

Public Works is eyeing county-owned property at 815 W. Wyoming St., directly north of the fairgrounds, for a new facility. The city's $10.4 million ask covers the cost to purchase the property, construct the building, and make site improvements and street frontage upgrades. 

Agency board members were wary of Kalispell's proposal because the project would not generate tax revenue to flow back into the tax increment financing fund, one of the fund's core purposes.  

"It just gives me heartburn that the city has, it seems to me, sort of recognized that this [tax increment financing] district is a good source of funds when they haven't properly budgeted for new infrastructure or new facilities for the city," board member Dave Girardot said. 

He added that he'd rather see the money go to private tax-paying entities that will put revenue back into the fund.  

Board member Cara Lemire argued that while the entire city would benefit from a new garage, only taxpayers in the district will bear the burden of paying for it.   

Kalispell officials said that both proposals qualify as public infrastructure projects eligible for funding under state law and policy. 

"Public infrastructure is one of the core projects that can be allowed," Development Services Director PJ Sorensen said. 

The county currently leases a house on the 3.7-acre property on a month-to-month basis. Photos shown to the board depicted overgrown weeds, discarded tires and several dilapidated vehicles scattered across the site.  

Prior to the land being bought, the tenant would receive adequate notice and time to find new housing, according to the funding request submitted by the county. 

Sorensen said that sprucing up the blighted property will invite more reinvestment to the surrounding area.  

"That's a lot of what the purpose is behind the [tax increment financing district]. It's not necessarily that this particular project is going to increase cash," he said. 

But some members still voiced doubt that the new garage would be an attractive addition to the area.  

"You'll have another fenced yard across from the fenced yard," Lemire said, referring to the barbed-wire barrier surrounding the Flathead County Fairgrounds.  

Sorensen reiterated that both projects are allowed under state and city policy, but some members remained leery of passing along a positive recommendation to Kalispell City Council.  

"I thought our role was to make recommendations to Council, not just determine whether it's allowed use?" Girardot said. "Even if it's allowed, is this a smart project and a smart use of [tax increment financing] funds?"  

Board member Mike Brodie said he supported the city's request but suggested carving out some of the 3.7-acre property for a private entity that would pay property tax and generate revenue for the fund.  

"I'd love to see some way that this ties into solving both problems," Brodie said. 

Kalispell City Council in November 2025 appeared in favor of building a new garage, but former Mayor Mark Johnson was similarly skeptical when Public Works Director Susie Turner first introduced using tax increment financing funds for the project. He said that philosophically, the funds should be used to reinvest in the tax base.  

Last year, Council approved setting aside $600,000 in a capital fund to contract services for the siting and design of the new garage.  

THE BOARD requested additional details on how the county would use its requested $2.5 million in tax increment financing funds for fairgrounds improvements before giving it the green light.  

The county, according to its application, is looking to make public infrastructure improvements to transform the fairgrounds into a more attractive and functional space. That includes facility planning and design, engineering and architecture, demolition of dilapidated structures, irrigation and landscaping improvements and visually improved perimeter fencing.   

Former longtime Kalispell planner director Tom Jentz said during public comment that the project would make the fairgrounds look more coherent with the surrounding community and incentivize reinvestment in the neighboring area.   

"We walk down there, we walk by, we drive by. It has more of a touch of prison-esque character," he said about the current state of the fairgrounds.  

But board members fretted over the lack of detailed site improvements. In a tax increment financing application, “you're required to have a plan, a budget, and all those things, which I'm not seeing," Lemire said.  

Sorensen said that the dollars would fund those specific plans.  

"If you don't have the funding to create a plan, then you just kind of wind up sitting at square one the entire time," he responded.  

Girardot asked that the county come back with a report detailing what specific improvements are planned and how much they are expected to cost.   

"There's not enough for me to actually say yes or recommend that to Council," Girardot said.  

THE BOARD signaled support for using dollars from the Downtown Tax Increment Financing District on a program to help expand fire service lines to properties on the west side of Main Street that don't have readily available access to the water main that sits on the opposite side of the road.  

Without fire service lines, properties are unable to install sprinkler systems to meet fire code, limiting the buildings’ potential use and occupancy, according to a memo from Community Development Manager Nelson Loring.  

Loring told the board that the program details are still being ironed out, but the board voiced support for the idea. 

Girardot, who is a commercial real estate broker, said that he has seen a lot of mixed-use development on Main Street fall by the wayside due to a lack of a fire service line.   

"I think that'd be a huge improvement for downtown, and I think that this is way overdue," Girardot said.  

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.