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City planning board OKs economic plan for industrial park

by Chris Peterson Hungry Horse News
| September 16, 2015 8:20 AM

Columbia Falls has hopes of hosting one of the finest industrial parks in the valley. Last week, the city's planning board took the first steps that will set the stage to make it happen.

The board, in an unanimous vote, passed a resolution to create a targeted economic development district at the park on the north end of the city. SmartLam, a company that makes high-strength wood panels from local timber, is expected to be an anchor tenant at the park. The development district creates a framework to attract businesses to the park.

The district allows the city to use tax revenue to attract and retain businesses at the park and to serve and create infrastructure. It does not increase taxes on the businesses, but allows additional tax revenue from growth in assessed value to be used for enhancements at the park.

The park has immediate needs. While it does have city water service, the lines are too small for most industrial uses. The bigger problem is sewer service. The city, in order to attract some businesses, needs to run a sewer line under the Burlington Northern Santa Fe Railway line. That promises to be an expensive proposition, city manager Susan Nicosia told the board.

The city has identified several industries it hopes to attract to the park, including a machine shop, industrial building construction, meat processing from carcasses, except for poultry and small game, truss manufacturing, wood and window manufacturing and other millwork and wood related businesses.

The meat processing would not be a slaughterhouse, but would be from "purchased meats."

The valley already has several companies that make products like jerky, sausage and cured hams.

The city can use a variety of financing to attract businesses and improve the park, from tax increment bonds and revolving loan funds. The potential problem with tax increment funding, however, is that it can impact the school district's tax base, because it invests the additional taxes on growth back into the park. The school district won't get that revenue. But Nicosia noted the TIF district can give additional funds back to the schools and other entities like the county if it doesn't need them.

The TIF generally sunsets in 10 to 15 years anyway, depending on the length of bonds used to enhance the district.

Planning board members main concerns focused on buffering around the Park. They noted the city growth policy calls for significant buffering around industrial parks near residential neighborhoods.

But overall, development at the park, which has hosted a nuisance bark plant for years, is welcome. Board member Mike Shepard said neighbors are tired of the bark plant's noise and dust and will be happy to be rid of it.

The city council will take up the TEDD Sept. 21. Final adoption of the 40-page plan is expected by November. Meanwhile, the owners of the property have begun preliminary talks with the city in how to best create a subdivision of the park.