Nicosia addresses TEDD concerns

City manager Susan Nicosia allayed some of the concerns the Columbia Falls School District 6 has about the Targeted Economic Development District for the Columbia Rising Industrial Park.

The industrial park is anchored by SmartLam and the city recently approved a 19-unit subdivision on the remainder of the 38 acre park. The site, just north of the Truck Route, housed the former Plum Creek planer and sawmill. Outside of SmartLam, it’s pretty much vacant.

The TEDD, as its known, would also incorporate a tax increment finance district. A TIF takes the additional tax revenue after the district is created and uses it to invest in further improvements in the park.

For example, if a business comes in and creates additional tax value and revenue at the park, the additional revenue above the 2018 tax base can be used to invest back into infrastructure and other amenities in the park. There’s a problem, however. Without the TIF, the school would get some of that additional revenue directly, with the TIF, they don’t.

School District 6 Superintendent Steve Bradshaw told city council last week he was all for economic development, but he was worried about the length of time the TEDD could exist — up to 40 years if bonds were floated against the district. That’s a long time without significant revenue if a big business moves into the park, he noted.

But Nicosia told the school board the city had no plans to float bonds with the project. The owners of the industrial park will pay for the needed infrastructure up front — like roads,sewer and water, she said. In return, the district would reimburse the developers. The city only plans to keep the TIF within the TEDD for what’s allowed under state law — 15 years.

It’s estimated the infrastructure upgrades would cost about $1 million. There’s also plans to upgrade the Truck Route and make it safer near Glacier Gateway School, Nicosia noted.

The idea is that the park would create more jobs, and thus, more students at the school and more homes paying property taxes. The TEDD also would also allow the park to give new businesses a break on upfront costs, like utilities and roads.

The school board took no stance on the TIF one way or another. The TIF doesn’t impact the school’s actual budget. It just impacts how the school collects revenue. In short, homeowners could end up paying more of the total tax burden as the additional business taxes from the industrial park go into the TEDD.