E2. Motion to Approve Amendment to FCEDA-City MOU regarding Gateway West AssetsCity of Kalispell
Charles A. xarball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO:
FROM:
SUBJECT:
MEETING DATE:
MEMORANDUM
Doug Russell, City Manager
Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7758
charbaH@kalispell.com
Motion to Approve an Amendment to the Memorandum of
Understanding between the City of Kalispell and the Flathead County
Economic Development Authority Regarding the Transfer of Gateway
West Assets
December 2, 2019 — Regular Council Meeting
BACKGROUND: On June 24, 2013 the City of Kalispell transferred its' interests in the assets at
Gateway West Mall (leased to Teletech) to the Flathead County Economic Development Authority
(FCEDA). The real property described in the transfer included a portion of the parking lot utilized by
Teletech employees. The parking lot portion of the transfer is now the subject of a purchase and sale
agreement with a third party for the purposes of an apartment complex development and the City has
been asked to release any interest it may have in that property.
Although the City holds no security interests in the subject property, the MOU does deal with FCEDA
sharing deficiency tax payments derived from the property with the City for the term of the Tax
Increment District. Because the parking lot portion of the property is not factored into the beneficial
use tax paid by Teletech, it is not an element of the deficiency tax payment formula. Further, the sale
and development of the parking lot will have the effect of increasing increment within the District to
the benefit of the District and to the furtherance of the goals of the City. The City therefore benefits
from this transaction.
RECOMMENDATION: It is recommended that the Council move to approve the offered
amendment to the MOU and authorize Mayor Johnson to execute the document.
Return to: Ogle, Worm & Travis, PLLP
P.O. Box 899
Kalispell, MT 59903
FIRST AMENDMENT
to
INTERLOCAL AGREEMENT
between
THE CITY OF KALISPELL
and
THE FLATHEAD COUNTY ECONOMIC DEVELOPMENT
AUTHORITY
The CITY OF KALISPELL, hereinafler referred to as "the City", a municipal corporation
duly formed and authorized pursuant to Montana state law and with business offices located at
201 First Avenue Fast, Kalispell, Montana, and the FLATHEAD COUNTY ECONOMIC
DEVELOPMEN'T AUTHORITY, hereinafter referred to as "FCEDA" a corporate public body
established pursuant to Montana state law and with business offices located at 314 Main Street,
Kalispell, Montana hereby enter into agreement as set forth below.
RECITALS
WHEREAS, the parties hereto previously executed an Interlocal Agreement which was
recorded June 24, 2013 as Document No.201300015321, records of Flathead County, Montana;
and
WHEREAS, the parties desire to amend said Interlocal Agreement as follows:
NOW THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, the parties do hereby agree as follows:
1. Said Interlocal Agreement shall hereafter apply only to the real property described on
Exhibit "A" attached hereto and by this reference incorporated herein, including such furniture,
fixtures and equipment as existed within the property and was list to TSC as of March 1, 2004.
AMENDED INTERLOCAL AGREEMENT —Page 1
2. The remainder of said Interlocal Agreement shall remain in full force and effect,
binding upon the parties as originally adopted, except as amended hereby.
DATED this of October, 2019,
CITY OF KALISPELL
0
STATE OF MONTANA )
:ss.
County of Flathead )
, Mayor
This instrument was acknowledged before me on this —___day of October, 2019,
by , Mayor of CITY OF KALISPELL, a corporate public
body established pursuant to Montana state law.
Notary Public for the State of Montana
FLATHEAD COUNTY
ECONOMIC DEVELOPMENT
AUTHORITY
By:
STATE OF MONTANA )
:ss.
County of Flathead )
, Chairman
This instrument was acknowledged before me on this day of October, 2019,
by , Chairman of FLATHEAD COUNTY ECONOMIC
DEVELOPMENT AUTHORITY, a corporate public body established pursuant to Montana state
law.
Notary Public for the State of Montana
AMENDED INTERLOCAL AGREEMENT Page 2
EXIIIBIT "A"
A TRACT OF LAND LOCATED IN A PORTION LOT IA OF PLAT OF
GATEWAY COMMUNITY CENTER, BEING IN THE SE1/4 SECTION 12,
TOWNSHIP 28 NORTH, RANGE 22 WEST, P.M. MONTANA, CITY OF
KALISPELL, FLATHEAD COUNTY, MONTANA AND MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF LOT IA OF PLAT OF
GATEWAY COMMUNITY CENTER, ALSO BEING THE SOUTHEAST
CORNER OF LOT 2 OF THE PLAT OF WESTSIDE CCC;
THENCE N 37050'59" W, 109.54 FEET ALONG THE EASTERLY LINE OF
SAID LOT 2; THENCE N00°27'30" E, 309.88 FEET ALONG THE EAST LINE
OF SAID LOT 2 TO THE SOUTHEAST CORNER OF LOT 2 OF AMENDED
PLAT OF PORTION OF GATEWAY WEST ADDITION No. 34; THENCE N
00027'43" E, 419.85 FEET ALONG THE EAST LINE OF SAID LOT 2 TO THE
SOUTHEAST CORNER OF THE CASCADE PROFESSIONAL CENTER
CONDO; THENCE N 00°37'12" E, 355.04 FEET ALONG THE EAST LINE OF
SAID CASCADE PROFESSIONAL CENTER CONDO TO THE NORTHEAST
CORNER OF SAID CASCADE PROFESSIONAL CENTER CONDO,
THENCE N 00037'57" E, 117.07 FEET ALONG THE EAST LINE OF
FINANCIAL DRIVE; THENCE N 89°22'00" E. 214.77 FEET; THENCE N
00°01'36" W, 177.87 FEET; THENCE N89°58'24" E, 379.86 FEET TO THE
WEST RIGHT-OF-WAY LINE OF GLENWOOD DRIVE; THENCE S
00°46'02"W, 1160.86 FEET ALONG SAID WEST RIGHT-OF-WAY LINE TO
THE NORTHERLY RIGHT-OF-WAY LINE OF U.S. HIGHWAY 2: THENCE
SOUTHWESTERLY ALONG A NON -TANGENT CURVE TO THE LEFT
HAVING AN ARC LENGTH OF 29.09 FEET, RADIUS OF 1970.00 FEET,
DELTA ANGLE OF 00050'46" AND RADIAL BEARING OF S 21017'11" E,
ALONG THE NORTH RIGHT-OF-WAY LINE OF U.S. HIGHWAY 2;
THENCE ALONG LOT 2 OF GATEWAY WEST SUBDIVISION UNIT No. 2
THE FOLLOWING FOUR (4) COURSES: 1) N 00°53'57" E, 85.99 FEET, 2) N
89°24'32" W, 314.87 FEET, 3) S 11°00'51" W, 43.38 FEET, 4) S 48-3611" E,
194.39 FEET TO THE NORTH RIGHT-OF-WAY LINE OF U.S. HIGHWAY 2;
THENCE SOUTHWESTERLY ALONG A NON -TANGENT CURVE TO THE
LEFT HAVING AN ARC LENGTH OF 383.37 FEET, RADIUS OF 1970.00
FEET, DELTA ANGLE OF 11 °09'00" AND RADIAL BEARING OF S
27046'48" E ALONG THE NORTH LINE OF U.S. HIGHWAY 2 TO THE
POINT OF BEGINNING.