City Council on Monday appeared supportive of a developer's request for $13.9 million in tax increment financing funds to renovate Kalispell's downtown mall.  

Parkline Partners LP is looking to transform the largely vacant, monolithic-looking Kalispell Center Mall into an inviting destination featuring an additional hotel, event space and a mix of retail stores that include national brands. 

The property's west side will be fragmented into five separate buildings to make the storefronts more visible from the outside. 

The funds would go toward public infrastructure and shared utilities, which includes demolishing the former Herberger's and installing a road connecting Third Avenue West in its place. The money would also fund streetscape improvements to Center Street and Fifth Avenue West.  

Councilors offered support for the proposal during the Nov. 9 work session, saying it would spur foot traffic and commerce downtown. However, Mayor Ryan Hunter expressed concern that the proposed uses may not materialize unless Council requires them.  

"There's not necessarily a guarantee that what we're being pitched is what's going to be developed unless we condition it on that, right?" Hunter said.  

Because the Red Lion Hotel already exists on the property and a boutique hotel may be coming downtown, Hunter questioned whether another hotel was the best use of one of the developable lots.  

During public comment, GEO Solutions CEO and Chair of Downtown Kalispell Forward Bill Moseley endorsed the project and urged Council against dictating what the developer can build on the property.  

"Trust the private sector to decide whether there should be a hotel or certain types of retail. They're going to make better decisions than a government entity will," he said.  

Hunter also proposed conditioning the developer to build a sidewalk along Center Street east of the forthcoming Third Avenue West connection.  

Councilor Sid Daoud said that the city should collaborate with the developers on installing one rather than imposing a requirement.  

"What you're asking these guys to do is give away part of the private property for public use. And I really don't think we can require that," Daoud said. 

There is no right of way along the section of property, so the city can't require a sidewalk in the developer's design plans like it would other projects, Development Services Director PJ Sorensen said.  

Installing a sidewalk would also require Parkline Partners to completely redesign its south parking lot, according to Sorensen.  

The developer is expected to invest an estimated $127.3 million into the project. With $13.9 million in tax increment funds, that would make a ratio of one public dollar for every $9 in private investment, according to a city staff report on the project.  

Because the Third Avenue West connector would be built well above city standards, the developer would retain ownership of the road and be responsible for maintaining it.  

Red Lion Hotel plans to undergo renovations, but that undertaking was not included in the project plans, according to city officials. 

The mall is estimated to generate $22.2 million in tax increment revenue through 2050, which Moseley argued during public comment would mean the city will likely get a good return on its investment. 

Parkline Partners LP is affiliated with SHOP Development, which owns the Kalispell Center Mall property and is the development arm of Texas-based SHOP Companies. The company also built the Larch House in Whitefish and plans to revamp the Whitefish Mountain Center. 

Reporter Jack Underhill can be reached at 406-758-4407 or [email protected].