Kalispell City Council on Monday agreed to pursue dollars from Montana's landmark settlement with Meta to build an indoor recreation facility or pay for youth mental health programs.  

Council opted against sending a letter that explicitly requested funding solely for the construction of a recreation center. Instead, the body decided to leave the request more open-ended, sending a revised letter written by Mayor Ryan Hunter to the state Attorney General's Office.  

Following a yearslong investigation and a 2023 lawsuit launched by Attorney General Austin Knudsen, Montana reached a settlement with Meta Platforms Inc. over intentionally making Facebook and Instagram addictive to minors, according to an August memo from the state Department of Justice.  

Montana could receive as much as $127 million from the settlement but is guaranteed $89 million. At least half the money must go toward remediating harm caused by social media, which includes investing in after-school or summer programs, outdoor activities and youth mental health programming.  

Hunter said he was shocked that the original letter drafted by Councilor Dustin Leftridge, who was absent Monday, appeared to presume any awarded funding would be used for an indoor recreation center before Council sought input from the public and mental health professionals.  

In his letter, Hunter wrote that the city has not predetermined how funds would be used, but asked Knudsen to make indoor recreation centers and related capital projects eligible for funding.  

The letter adds that Kalispell may use the funds in other ways, including scholarships for aspiring therapists.  

"If we're going to consider our best bang for our buck when it comes to youth mental health, I'm not convinced yet that a recreation center is the best use of those funds," Hunter said.  

Councilors Sam Nunnally, Kari Gabriel and Jed Fisher still favored Leftridge's letter, arguing that his message was more heartfelt and had a better chance of catching Knudsen's eye.   

Nunnally worried that Hunter's letter was too wordy and could get lost in the shuffle. He argued that a recreation center would be critical for the mental health of people of all ages, adding that he doesn't play pickleball, but could see himself getting into the hobby if one were built.  

COUNCIL OK'D using redevelopment dollars to build a new city equipment garage and to make aesthetic improvements at the Flathead County Fairgrounds despite concerns from members of the Urban Renewal Agency. 

The city will receive $10.4 million from the West Side Core Area Tax increment financing fund to build a new storage and maintenance garage capable of accommodating its growing array of vehicles and equipment. Flathead County will also get $2.5 million from the same fund to spruce up the Flathead County Fairgrounds, including perimeter fencing upgrades and landscape improvements.  

Councilors agreed there was an urgent need for a new garage, but some said the project should have been planned and funded over time to avoid using tax increment funds.  

"I would love to go back 15 years from now and start saving for this or planning for it in a different way, but we didn't know it was going to be an emergency this soon," Councilor Sid Daoud said.  

Hunter argued using tax increment funds was the fiscally responsible decision to avoid raising rates or paying off a loan with climbing interest. 

Both projects' funding could be extended over time to avoid draining the fund, which generates roughly $5 million a year, according to City Manager Jarod Nygren.  

Council's decision comes after members of the Urban Renewal Agency — the advisory board charged with evaluating redevelopment projects — urged Council against using tax increment financing funds on a garage. In written letters to City Hall, they argued the project wouldn't generate tax revenue to flow back into the fund, one of its core purposes. 

Sorensen told councilors that public infrastructure projects can't be evaluated using the same criteria applied to private developments. He added that the fund's purpose is not just tax generation but also meant to support projects that spur redevelopment in the surrounding area. 

"In more than 22 years as a commercial broker, I have completed dozens of site analysis for retail, office and multifamily developers. Not once has a client asked me to find a site next to a heavy equipment or truck repair facility with a fenced yard," wrote board member Dave Girardot.  

Girardot asked that government projects receiving tax increment funds be held to higher standards than private developers, not lower. 

Urban Renewal Agency members also expressed concern over the lack of detailed site plans the county presented in its application, but Community Development Manager Nelson Loring said those specifics would be ironed out in a forthcoming memorandum of understanding.  

COUNCIL ACCEPTED a federal grant that will allow the city's forthcoming fire station to be fully staffed and operational the day it opens, according to Nygren.  

The roughly $1.9 million in funding would help hire nine additional firefighters, covering a portion of their salary and benefits for three years.  

Council also adopted the second reading of an ordinance allowing residents to host block parties on residential streets and use city-owned downtown parking lots for weekend events.  

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.