Kalispell City Council appeared in favor Monday of using redevelopment dollars to build a new city equipment garage, agreeing that no viable alternative could move the project forward quickly enough.  

The city is seeking $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. The request accompanies Flathead County’s bid for $2.5 million from the same fund for aesthetic improvements at the Flathead County Fairgrounds.  

Councilors ultimately supported using the public funding mechanism to finance a new garage, which many described as an urgent need. Several, however, said the project should have been planned and funded over time.  

“I lament that previous Councils, including me on the previous Council, didn’t do something about this,” Councilor Sid Daoud said. “If we would have done this 10 years ago, it would have cost half what it costs today.” 

City Manager Jarod Nygren said that there wasn’t an apparent need for one a decade ago. An explosion of growth during the Covid-19 pandemic paired with fluctuating inflation made the need for a new garage difficult to predict, he said. 

When Council discussed the proposal last year, the project was estimated to cost about $6 million. The cost has since grown by over $4 million. Councilor Kari Gabriel said pushing the project down the road would only increase costs.  

Councilor Wes Walker said that he doesn’t want the city to make a habit of relying on tax increment funds for projects like the garage, arguing that past councilors should have planned for the need decades ago and set aside money in a capital fund.  

“We need the garage and we don’t really have a whole lot of options,” he said. 

Without a 20-year capital plan, the only other viable option would be putting a general obligation bond before voters, Nygren said. However, councilors predicted a bond would likely prove unpopular with the public.  

While he supported the project, Councilor Jed Fisher said he wished the money could go toward a flashier facility, like gymnasium or recreation center, that could generate tax revenue and incorporate private entities.  

Mayor Ryan Hunter also said a garage wouldn’t be the most attractive structure but argued it would still spur more redevelopment in the surrounding area. He added that the project would not drain the funding pool.  

Hunter called using tax increment funds the most fiscally responsible option to cover the project, “other than going back in time and socking away the money.” 

The district’s tax increment is about $8 million a year, though the city does not receive that full amount and revenues vary from year to year, according to Nygren. For instance, recent changes to Montana’s property tax laws that increased taxes on some commercial properties have boosted tax increment revenues, he said.  

The $10.4 million would likely be doled out in two payments over time, according to Nygren.  

As Kalispell’s fleet has grown, city officials said the existing facility near Legends Stadium has become increasingly inadequate. Larger vehicles can’t be serviced inside the building and are instead repaired outdoors and exposed to the elements. 

“These are kind of the struggles that come with being the fastest growing city in the state,” Nygren said.   

The Public Works Department is eyeing county-owned property at 815 W. Wyoming St., directly north of the fairgrounds, for the 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.  

TWO MEMBERS of the city’s Urban Renewal Agency urged councilors to reject the use of tax increment financings funds on the project.  

The advisory board, which is charged with evaluating redevelopment projects, was unable to vote on whether to support the projects after lacking a quorum during its Sept. 17 meeting.  

In letters to City Hall, they argued that the project wouldn’t generate tax revenue to flow back into the tax increment financing fund, one of the fund’s core purposes.  

Catharine Potter said that approving the funding request would set a precedent for city departments to rely on tax increment financing for future projects. While she acknowledged the garage qualifies for assistance under state law, she said eligibility alone does not justify using the funds for that purpose. 

“Do not be the Council that taught Kalispell staffers that TIF is just their piggy bank,” Potter wrote. 

Dave Girardot, writing that he wasn’t speaking on behalf of the Urban Renewal Agency, said he has watched the city’s requests for tax increment funds grow over the years.  

“The requests have grown from about $1 million to more than $10 million. If this one is approved, there will be no principled line left to draw when the next department comes forward,” he wrote. 

Local entrepreneur Kisa Davison attended Monday’s meeting to oppose using the funds.  

“Please don’t spend all the money on a garage that’s not going to give back what the fund was designed to create,” she said.  

COUNCIL ALSO appeared willing to approve Flathead County’s $2.5 million funding request, though Hunter expressed skepticism that county officials would extend the same support to a Kalispell project.  

Some Councilors suggested requiring the county to use the money it gets from Kalispell’s land purchase for the garage on the county fairgrounds. 

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, demolition of dilapidated structures, irrigation and landscaping improvements, and visually improved perimeter fencing.  

KALISPELL RESIDENT John McDonnell during public comment complained about the uncleanliness of the city’s parks and trails he noticed while biking around town. He said he saw a water fountain filled with cigarettes and homeless encampments scattered along the Parkline Trail. 

“Not sure if we’re renting that city property out or what’s going on there,” he 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.