Commissioners take steps to establish TED district

By Michael Howell

The Ravalli County Commissioners took a giant step forward last week in their attempts to establish a Targeted Economic Development District that would include the airport land owned by the county and land belonging to the Bitter Root Stock Farm and Harold Mildenberger. On Wednesday, August 5 they took the pre-requisite steps of adopting a Resolution declaring an infrastructure deficient area known as East Ravalli County, Ravalli County Airport Area and a statement of deficiency declaring that the investment in infrastructure in that area is necessary in the interest of Public Health, Safety or Welfare.
Director of the Ravalli County Economic Development Authority Julie Foster told the Commissioners that discussion about establishing a TEDD in the area started in 2008 and involved both the City of Hamilton and the County as well as other parties. Those efforts bore no fruit, she said, but two economic development districts were established in Stevensville. By using TEDD district financing a million dollars in infrastructure for sewer and water were installed.
“The aim here is to create that kind of infrastructure,” she said. Foster touted the use of TEDDs as a tool for financing needed infrastructure in specific areas. She said once created they attract business and industry to an place. She said Ravalli County competes with about 40 TIFFs across the state, eight of them in Missoula.
“Without them, you have no direction for new businesses,” she said. She said establishing a TEDD does not create any new taxes, “it funnels taxes into existing infrastructure.”
Foster said the first step is adopting a statement of infrastructure deficiency and have the Department of Revenue approve it. Then a Resolution of Deficiency can be adopted with a broad description that will later gain in detail as a preliminary engineering report is prepared.
According to Foster thee water in the area in individual wells is high in iron and there is concern that fire flow in the area is insufficient. She said sewer was non-existent. There were only a few individual septics in use. As to roadway deficiency she pointed to MDOT’s identification of Fairgrounds Road and the Eastside highway as dangerous and in need of improvements. She said the airport’s taxiways were old and dilapidated. She said internet access in the area is bad and sporadic. She said creation of a TEDD was one tool that can be used to address these needs.
Commissioner Jeff Burrows said he didn’t agree that infrastructure improvements were “necessary for the public health, safety and welfare” off the current residents in the area. He said they were already being served adequately and were not in need.
“How about ‘enhances’ the public health safety and welfare?” he asked. “I think it’s a stretch to say it is necessary.”
Foster said that the law requires a determination that it is necessary for public health, safety and welfare.
Commissioner Chilcott suggested that it could be re-stated to say, “necessary for economic development and beneficial for public HSW. We need ‘necessary’ in there to conform to statute.”
The law was then read aloud:
“7-15-4280. Resolution of necessity required for targeted economic development district. A local government may not exercise the powers provided in part 43 or this part unless it has adopted a resolution of necessity finding that: 
(1) one or more infrastructure-deficient areas exist in the local government; and (2) the infrastructure improvement of the area is necessary for the welfare of the residents of the local government.”
Commissioner Burrows said, “I’m fine with leaving it because that’s what’s required. I just don’t agree with the statement.”
Comment was opened to the public and David Merrick said that he had spent 10 years working on the elimination of the Growth Policy and doing away with zoning.
“This is zoning,” he said. “It’s special people, but it’s still zoning. I’m opposed to it.” He said that he had just spent a lot of money on improvements on his place and would enjoy some tax relief for it.”
Commissioner Chilcott said there was no tax relief being granted.
“The way I would state it is a tax increment is being dedicated to the public interest by investing in water, sewer and roads.”
Peter Vantuyn representing the Bitter Root Stock Farm spoke in support of the resolution and statement of deficiency because it will lead to economic development. He said the land they owned was appropriate for light industrial development and it would benefit the whole county’s economy. It would add critical certainty to development projects in the area and help stabilize and diversify the economy.
Marilyn Saunders read a statement into the record from Bitterrooters for Planning (BfP). She congratulated RCEDA and the Commissioners for implicitly recognizing the value of planning and zoning by proposing the TEDD.
“Creation of this TEDD will require a comprehensive development plan, and appropriate zoning. Planning and zoning are two things that Ravalli County sorely needs,” said Saunders.
Then she proceeds to reproach the county for not doing any comprehensive analysis of “development patterns” as the new law calls for.
“This proposal, as good as it is, highlights why prior to passage of HB 289, TEDDs were only to be considered in the context of a comprehensive Growth Policy—and why that’s still a superior approach,” said Saunders. She called the boundary lines “tortuous” and points out that it includes isolated parcels including land that is currently unproductive, land currently in agricultural production, and an active airport.
“This introduces many questions – foremost among them, how can one discern a ‘pattern of development’ in such dissimilar parcels?” she asked. She claims that the “well defined plan for economic growth,” referred to in the county’s resolution, should precede the designation of any particular area. She argues that determination should come only after a thorough, comparative study to ensure that the proposed district comprises the best location for technology and value-added businesses.
“Further, in a county that could reasonably be deemed ‘infrastructure-deficient’ in its entirety, why start here? In the absence of a well-defined, comprehensive plan for economic growth, Ravalli County may well be overlooking a potentially more-advantageous site,” she said.
“Without a comprehensive growth policy in place, this well-intentioned proposal becomes a case of ‘Ready – Fire! – Aim.’
It is Bitterrooters for Planning’s opinion that HB 289, in an attempt to provide a reasonable avenue for creation of a TEDD in Ravalli County, ironically makes the case for creation of a Comprehensive Plan instead. In the absence of such a document, this represents nothing more than ‘spot zoning’ by another name – a practice that is prohibited in Montana.”
Teri Polumsky said that she was “in-between,” that she was opposed to top down zoning but doesn’t believe in a comprehensive zoning plan.
“This is land owners 100% doing what they want,” said Polumsky. She said that with a 19% poverty rate in the county, we need economic development.
Rick Fuhrman, a board member of RCEDA, also supported the resolution, saying all the landowners were on board and it was not imposing on any private property rights. He said businesses looking to relocate are looking for infrastructure.
Representative Ed Greef also supported the resolution and relayed support from Rep. Ballance, Rep. Eli and Senator Connell. He said jobs are needed and “we need to keep our kids here.”
Commissioner Greg Chilcott called it an investment in the future for the county as a whole. He said competing counties were using these tools.
Commissioner J.R. Iman said it was creating an opportunity for business development.
Commissioner Doug Schallenberger echoed Iman’s comments.
Commissioner Ray Hawk said, “I think it’s a good thing.” He also said it was interesting that the libertarians and the social democrats were together in opposing the resolution.
Commission Chair Jeff Burrows said there were upsides and downsides. On the upside it is a 100% volunteer zone, he said, and the taxpayers would not be liable for any bonds for infrastructure development. On the downside, he said, it is local government picking and choosing an area. He said the positives outweighed the negatives in his opinion.
The commissioners unanimously approved the resolution declaring an infrastructure deficient area known as East Ravalli County, Ravalli County Airport Area and immediately afterward, with no further discussion, approved a statement of deficiency declaring that the investment in infrastructure in that area is necessary in the interest of public health, safety or welfare.