State OKs Columbia Falls tax increment finance plan
The Montana Department of Revenue last month gave the thumbs up to the city’s tax increment finance district and urban renewal plan.
The creation of the district is retroactive to Jan. 1, 2015.
A tax increment financing district capitalizes on growth by taking the additional taxes on that growth and investing them in urban renewal projects, such as street beautification, bike paths and other enhancement to city. The district will look to capitalize on the city’s future growth. For example, if a property is assessed at $50,000 when the TIF is created and its value increases to $100,000, the additional taxes on the property from the growth are invested into the TIF.
And right now, the city is in a good position to capitalize on its growth as it’s seeing a bit of a renaissance on Nucleus Avenue. Developer Mick Ruis is planning a pie factory and candy shop in the former Park Merc building; another couple are also planning a bakery and bike shop and there’s also talk of new restaurants within the district as well and the new Backslope Brewing Co., which opened last week, will also help the TIF.
The city’s TIF district runs along Nucleus Avenue and the U.S. Highway 2 strip. It does not include residential areas.
Based on 2016, levies, the district would generate approximately $14,771 for every taxable $1 million invested, noted city manager Susan Nicosia. The district will begin to see the first funds in November 2017 and again in May 2018.
City leaders have been talking about creating a district since 1999, but it wasn’t until the last couple of years that the discussions led to action. During the Great Recession, the city had several dilapidated and empty commercial properties downtown and along U.S. Highway 2.
But developer Mick Ruis in the past year has bought up several of those properties and is building a new hotel — the Cedar Creek Lodge on U.S. Highway 2. The lodge is expected to open in June. Meanwhile, traffic to Glacier National Park has zoomed in recent summers as well.
It could all add up for a boom in Columbia Falls that hasn’t been seen since the days when there were several lumber mills operating in the area and the Anaconda Aluminum Co. was employing more than 1,000 workers.
The City of Whitefish has used its TIF over the past three decades to great effect, spending millions of dollars on parks, its schools and most recently, a new city hall.
In a related matter, Nicosia told council that a similar district will foster growth at an industrial park off Railroad Street will likely be put to use later this summer, as SmartLam looks to expand there as does another tenant.
In that case, the city is trying to leverage the growth at the park with so it can bond against the buildings to provide infrastructure such as sewer and water.
SmartLam, a company that makes high-strength wood panels from local timber, is expected to be an anchor tenant at the park.
At least one other business has shown interest in expanding to the park as well.
Right now, much of the land at the park is vacant, or storage for a bark plant that takes waste bark from mills that it sorts and resells.