City backs remodel of mall

The Mountain Mall is set to receive an infusion of tax dollars to help fund a remodel of its aging façade after Whitefish City Council voted Monday night to assist the project.

The decision to award $200,000 in tax-increment funds for the mall remodel reverses council’s stance on the issue from a month ago. Councilors denied a request last month from Carrington Co., owner of the Mountain Mall, for $400,000 in tax-increment funds.

According to mall manager Tom Kraus, the mall has entered into lease agreements to bring in a Shopko Hometown store. However, the agreement is contingent upon the mall getting an exterior facelift.

On Monday, Kraus said the project would be put “on hold” if the city denied their tax-increment request a second time. He said they took into consideration council comments when crafting the new proposal.

“We didn’t want to allow this project to die,” he said. “We’ve taken a look at it and found places where we can value engineer.”

The complete project cost to make space for Shopko is estimated at $3.7 million, Kraus said. The total cost of the exterior remodel is estimated at $650,000. Tax-increment funds are to be used only for the façade work.

Kraus told council the 28-year-old mall qualifies as blight and noted the block façade that is falling down.

“Between age and workmanship and deterioration, it fits the termination of blight,” he said.

Similar to their first proposal, Kraus told council that if tax-increment revenues from the mall do not equal $200,000 by 2020, they plan to pay back the city for the balance.

Councilor Andy Feury said that while he has concerns about using tax-increment dollars for a private project, he also believes the Highway 93 strip deserves some attention.

“The mall is an asset to the community… and good for the community,” he said. “I can feel good about approving this request.”

City manager Chuck Stearns said using tax-increment on the facade remodel would be an allowed use.

“Facades are interpreted to be for the public good,” he said. “The public has to see them all the time.”

“We have put a lot of tax-increment funds into the downtown area in recent years and propose to do so with the city hall and parking structure project, and it would be good to provide some assistance on Highway 93 South.”

Councilor John Anderson remained firm on his stance that using tax dollars to remodel a private business was “inappropriate.”

Council voted 3-2 in support of funding the remodel with Anderson and Jen Frandsen in opposition.