Old Corvallis Road Urban
Renewal Program
An Overview
May 4th, 2009
 Project
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Sponsors
The City of Hamilton
Ravalli County
The Ravalli County Economic
Development Authority
Area Description
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The City of Hamilton is embarking on an effort to
develop and revitalize the area in the vicinity of the
Old Corvallis Road, roughly bounded by:
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The County Fairgrounds on the south (including the
Fairgrounds but not the adjacent residential area),
The Glaxo-Smith-Kline Laboratory on the north,
Portions of the East Side Highway and the drainage ditch
on the east (at Blodgett View Drive), and
Portions of Old Corvallis Road and Highway 93 on the west.
Proposed
Urban
Renewal
Area
Opportunities
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Additions to the Glaxo-Smith-Kline
Laboratory
Entrepreneurship Center
Proposed 800 home subdivision
adjacent to the Daly Mansion
“Area 3” planning area development
Neighborhood mixed-use/commercial
development
Proposed Action
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Design and implement a development program
for the Old Corvallis Road Area that addresses:
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Public improvements
Economic Development
Public-Private Partnerships
Identify associated financing mechanisms
including:
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Tax Increment Financing
Other funding strategies
The Steps (Montana Urban
Renewal Statute)
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Identify District Boundaries
Prepare a Finding of Blight and Associated Resolution for
Adoption
Prepare an Urban Renewal Plan with a Tax Increment
Financing Provision
Provide for Public Participation
Determine Accordance with the Growth Policy
Provide for Public Notice and Hearing
Adopt the Plan (Ordinance)
Notify the DOR and other Taxing Bodies
Prepare an Urban Renewal Plan for
the Covallis Road Area
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The Plan can include:
– Transportation Related
Improvements
– Road Improvements (Old
Corvallis Road,
Fairgrounds Road
(curbs, gutters and storm
sewers)
– Non-Motorized Facilities
(bicycle and pedestrian
trails) (more)
A Workable Plan (Continued)
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Water Related
Improvements (storage
and transmission)
Sewer Related
Improvements
(interceptors, waste
water treatment plant
upgrades)
Park Development
Lighting
Communication –
Internet Services
Tax Increment Financing
The Concept
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A state authorized, locally driven funding mechanism
for community and economic development
A methodology for eliminating blight and
infrastructure deficiencies
A strategy for stabilizing, diversifying and expanding
the tax base in critical areas
What is Tax Increment Financing?
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TIF is authorized in the Montana Urban Renewal
Law, under 7-15-4282, MCA and enables
communities to direct property taxes that accrue
from new development within a designated blighted
area to various development activities. A base year
is established from which incremental increases in
property values are measured.
The Tax Increment Calculation
Base Year Value
Taxable Valuation x Mill Value = Taxes Collected
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Directed to All taxing Bodies (Local Gov, Schools,
State)
Tax Increment Value
Incremental Taxable Valuation x Mil Value =
Incremental Taxes Collected
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All Directed to Tax Increment Program (except
University Levy)
Taxable Value
How a Tax Increment Finance
Provision (TIF) Works
TIF
Start
Date
Declining
Property
Values
TIF
End
Date
Increment for
Development
BASE
Tax Value for Distribution
Time
Tax Value
for
Distribution
Base +
Increment
Other Important Provisions
Provisions for
Returning Funds
 Sunset
 Bonding
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It Takes a Big Private Investment
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Assume: $10,000,000 dollars of New
Development
Assume: Class 4 property @3.01% (2007)
Assume: A mill levy of .562140
Increment Value = $169,204
Applications
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Urban Renewal Districts – Within Cities Only
Industrial Districts
Technology Districts
Aerospace Transportation and Technology
Districts
Provide Opportunities for Public
Participation
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Development and Review of Planning
Concepts
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Public Meetings and Work Sessions with the City
Commission and Planning Board
Focus Group Meetings
Key Person and Organizational Meetings
Overall Community Planning
Considerations
The Urban Renewal Plan must
 Conform with the Hamilton
Growth Policy
 Reflect and Consider
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Hamilton Transportation Plan
Economic Development and
Housing Plans
Parks and Recreation Plans
Infrastructure Plans
First Things First
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The Urban Renewal Area must be entirely
located within the municipal boundaries of
the City of Hamilton.
Portions of the proposed Old Corvallis Urban
Renewal Area must be annexed to the City of
Hamilton prior to creating the district and tax
increment financing provision.
The Benefits of Annexation
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City Services
Participation in the Urban Renewal Program
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Infrastructure Development
Taxes directed to improvements that benefit your
property through TIF
Property Value Increases
The Cost of Annexation
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Current mill levy for those living outside of the city
limits:
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Current mill levy for properties within the city
limits
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Hamilton Rural/no fire: 453.530
Hamilton Rural/fire: 471.130
An additional levy of 128.97
Total Levy: 562.140
An increase of 24% or 19%
Questions and Answers