By Michael Howell
The City of Hamilton is holding a special election by mail ballot asking the citizens to approve the selling and issuance of a bond in the amount of $1.35 million for the acquisition of property along North 10th Street containing Claudia Driscoll Park and the former National Guard Armory Building. Ballots are set to be mailed out tomorrow, March 2, and must be returned by March 21.
The price of the 5.9 acre property itself is $1.2 million and the price is not negotiable. According to city officials, the Department of Military Affairs must sell the property for at least the appraisal value established by the Bitterroot Appraisal, LLC Appraisal Report dated August 10, 2016 to meet federal requirements. Another $100,000 would be spent on park improvements, the remaining $50,000 is the estimated cost of bond issuance, which depends on the form of financing, costs of soliciting and procuring the bonds, the need to pay underwriter or insurance fees and other costs of issuing bonds, and legal fees. Altogether these costs account for the total bond value of $1.35 million. No bond proceeds will be used to pay the costs of improving the existing armory building.
The estimated tax impact is calculated based on the City’s average valuation per mill, a 15-year term, an annual interest rate of 4.5 percent, and the current tax rates established by the
Montana legislature. In this case the impact on a residential home valued at $100,000 would be a tax increase of $17.89. A home valued at $200,000 would see a tax increase of $35.78. A commercial property valued at $200,000 would pay $50.09.
The exact interest rate at the time of the bond sale is not known at this time and may be based on a variable interest rate if it is financially beneficial. The tax estimates could change from year to year if mill values, or financial terms including interest rates, fluctuate. The ballot issue also allows a financing term of up to twenty years.
Prior to calling for the bond election, the Hamilton City Council received input regarding citizen interest in the continued use of Claudia Driscoll Park, as well as the need for some improvements to the park facilities. The Council also received input regarding the growing need for an updated facility for the City’s public safety agencies: Hamilton Police Department, the Hamilton Prosecutor’s office, and the Hamilton City Court.
The City has held three informational sessions at City Hall to explain the proposal and answer any questions about it. Another is scheduled for Thursday, March 2 from 12 to 1 p.m. at the Bedford Building, 223 South 2nd Street.
City Special Projects Director Dennis Stranger, who attended the open house sessions, said that some people were surprised to learn that the City did not own the land on which Claudia Driscoll Park is located.
“They didn’t realize that the park and the Canyon Hideaway play area and the seating area in front of the community band shell were on property owned by the Department of Military Affairs,” said Stranger. “As a matter of fact,” he said, “at the time that the property was offered to the City they were also informed that if the property ended up being sold to a third party, the City would have to remove all those improvements at its own expense.”
Stranger said that the Armory building was in good shape structurally, although it is a huge cavernous open floored building. He said it would take some significant improvements to make it usable as a Justice Center, but that is part of the plan. It could house a records and evidence storage area, as well as functional office space for the Police Department. It could provide a secure and private place to consult with crime victims, providing improved security for victims, witnesses, staff and the public.
“But no money from this bond would be spent on any improvements to the Armory building,” said Stranger. He said there were funds available for making those Justice Center improvements, if that is what the Council decides to do with the building
He said that some people expressed concern that a jail might be constructed on the land. He said if the building is developed into a Justice Center, there are no plans for a jail to be a part of that.
“That will not happen. It will be a park and there will be no jail on the property,” said Stranger.