Council sorts out funding plan for parking garage

Whitefish will move forward with a Special Improvement District as the funding mechanism for a planned downtown parking garage.

Councilors ultimately approved an SID, but not before disagreeing about what type of assessment district would be most appropriate to pay for the ongoing operation and maintenance expenses for a parking garage.

John Anderson, Frank Sweeney, Richard Hildner and Bill Kahle said an SID would be appropriate. Chris Hyatt and Phil Mitchell disagreed, pointing to council’s earlier vote on creating the structure.

Council this spring narrowly approved construction of a new City Hall and parking structure. As part of the decision, council said it would look at establishing a Business Improvement District to fund expenses.

Hyatt referred to that earlier vote saying council’s intent was to get community involvement in the project.

“I don’t think we even have enough buy-in from the downtown businesses to do a parking structure,” he said. “If you really want a parking structure, the businesses need to come with a BID. I think we’re being foolish here.”

Kahle countered, saying the point of the original vote was to find the most appropriate district to fund maintenance costs.

“I don’t care if it’s a BID or SID,” he said. “Our intent was a funding mechanism.”

A BID is initiated by a petition of business owners who ask to create the district. At least 60 percent of those in the district must petition to be included. A BID can run for 10 years or less. The assessment is generally a flat fee that is based on lot size or tax valuation.

City Council can initiate the creation of an SID by passing a resolution of intent. Affected property owners can prevent the SID if those owners bearing more than 50 percent of the cost protest. An SID can’t exceed 20 years. Under an SID, owners can be given credit for providing off-street parking.

Mitchell said he still believes that parking isn’t a problem and that a lack of support for a BID proves the point.

“I feel the change to an SID is so we can cram this down someone’s throat and get it passed,” he said. “If (businesses) don’t want to pay for it, then we don’t need a parking garage.”

Hildner says the process of creating the SID will show whether or not there is community support for the district.

“Maybe we don’t have a huge parking issue in Whitefish now, but we’re building for the future,” he said.

Sweeney noted that business owners can protest the SID if they do not want it.

“Fifty percent can say they don’t want it,” he said. “The funding mechanism is more consistent with what the businesses are used to and better for them.”

A committee formed to look at viable funding options recommended the SID as the more appropriate option for assisting with expected annual maintenance costs of roughly $75,000. The committee noted that downtown businesses are already part of a parking SID that runs through 2015. The new SID could go into effect after the current one sunsets.

Council will continue to work on the details of the SID. The committee suggested creating two assessment zones that would create a higher assessment to those within a one-eighth mile of the structure and another for those in the one-quarter of a mile area.