08/15/83 City Council MinutesTHE REGULAR MEE-TIN.0,'pF THE KALISPELL-CITY COUNCIL WAS HELD AT 7:30 P. M. MONDAY,
• .AU7 UST 15; 1983 T-HE;. COUNCIL' CHAMBERS AV'QITY HALL.- MAYOR McDOWEL•L PRESIDED.
COUNC--UL&N O B.OYLE-EXCUSED FOR+,VACATION. ALt,,OTHER COUNCILMEN WERE PRESENT.
APPRjiVE' MINUTES.
Counca loran :-Nystul -moved that. the minutes ofthe regular .meeting of August-1, 1983
be approved.as pre8.ented•. :Seconded by Councilman Grainger. Motion carried.
:'.Gounr4lmdn Zduner 'moved :that the. minutes of the regular meeting and budget hearing.
of . A'u iist.t'.3rd, ; �1.983 Arid continuation of the budget hearing on August 8, 1983 be
::.approved-as'presentd.- Seconded by Councilman Grainger. Motion carried.
CITY OFFICIAL -DEPORTS
Tr-easuTer frog Jiiae 1983
.."City Judge for 'July 1983
Police Chi6f.for July 1983
Building;-Officiial for July 1983
1
Councilman Nystul.moved that the City Official Reports be accepted. Seconded by
Councilman Vidal. Motion carried.
OPEN BIDS --sewer Revenue'Bonds
City Council
City Hall
Kalispell, MT
OFFICIAL BID FORM
$875,000
,Sewerage System Revenue Bonds, Series 1983
City of Kalispell, Montana
59901
August 15, 1983
Pursuant to your Official notice. of Sale, dated August 3, 1983 (the "Notice
of Sale") for the purchase from you of $875,000 principal amount of your
Sewerage System Revenue Bonds, Series 1983 (the "Bonds"), the persons,
firms and :corporations named' in Schedule I hereto (the "Bidders") hereby
offer to purchase all of the Bonds from you at the price of $875,000 plus
accrued interest from September 1, 1983 to the date of. delivery of the
Bonds to us, plus a premium of dollars ($ )R ), the Bonds to bear
interest at the rates set forth opposite the maturity years and amounts
as follows: k
Interest
Interest
Year Amount Rate
Year
Amount
Rate
1984 $15,000 aZti
1994
$40,000
R.'7b
1985 15,000 11,110.
1995
45,000
°N-10
1986 15,000 IN -IQ
1996
45,000
14.?0
1987 20,000 9.?0
1997
55,000
44� 10•00
1988 20,000 0%.?co
1998
60,000-
sa , to
1989 25,000 a.-10
1999
65,000
% L0
1990 25,000 a-10
2000
70,000
10.1.
1991 30,000 R.10
2001
80,000
to,as
1992 30,000 q.-lb
2002
90,000
to.30"
1993 35,000
2003
95,000
10.2
Enclosed herewith is lawful money of the
United States
or a cashier's check,
certified --.heck, bank money, order or
bank draft
drawn and issued by a
national banking association located
in Montana, payable to the City
Treasurer, in the amount of $17,500 to
be held
and disposed of by you as
provided In the Notice, of Sale. This bid
must
be accepted
in its entirety
within the time provided 'in the Notice
of Sale
and if not
so accepted by
you within such. time shall be deemed to
have been
rejected.
This bid shall
remain irrevocable until the expiration
of such
time unless
sooner rejected
by you.
Each of the Bidders:. (i) acknowledges
receipt
of the Official
Statement
dated August 3, 1983; (ii) represents and
warrants that it
has ,full power
and authority to make this bid and to
purchase
the Bonds
if this bid is
accepted; and (iii) agrees that the validity and interpretation of this
bid shall be governed by'the laws of the
State of
Montana.
103'
r
r-
104.
., jj • „ ... .... .
1
. •.:.+..:tin --'
In the event
that. the Bidders are acting through a Representative or Repre-
sentative(s)
each of the undersigned Representatives warrants that it has
the necessary
power.and authority to act on behalf of each of the bidders.
Very truly yours,
RAIN BOSWORT NC ED
{
ance C. Lev tan
As Representative(s) of the per-
sons firms and corporations
named in Schedule I hereto.
Accepted as of the date above written;
CITY COUNCIL
Mayor
By:
Not As part
of this bid, but for information purposes, we compute this,
b.id as follows:
Total coupon interest from September 1, 1983
to maturity . . . . . . . . 0 ................................ 1 20c
_ �0AD
If
Less premium, ' if- any .................. ................. `IQ
Total Dollar interest cost ........0..................... l,ao(.,6;to.o6
Net. interest rate ....................................... tO.0-lev3 4
{
1
r
105 1.
J
11
1
n
OFFICIAL BID FORM
$875,000
Sewerage System Revenue Bonds, Series 1983
City of Kalispell, Montana
City Council August 15, 1983
City Hall
Kalispell, MT 59901
Pursuant to your Official Notice of Sale, dated August 3, 1983 (the "Notice
of Sale".) for the purchase from you of $875,000 principal amount of your
Sewerage System Revenue Bonds, Series 1983 (the "Bonds"), the. persons,
firms and corporations named in Schedule I hereto (the "Bidders") hereby
offer to: purchase all of the Bonds from you at the price of $875,000 plus
-accrued interest from.. September 1, 1983 to the date of delivery of the
Bonds to us, plus a premium of dollars ($ 1.35 ), the Bonds to bear
interest at the, rates set forth opposite the maturity years and amounts
as follows:
Interest Interest
Year Amount Rate Year Amount Rate
1984 $15,OOD to. It 1994 $40,000 %0.3o t
1985 15,000 tin.��, 1995 45,000 10.3b
1986 15,000 10.E 1996 45,000 10.30
.1987 20,000 1997 55,000 iD 3b
1988 20,000 to ilia 1998 60,000 k7.3�
1989 25,000 1999 65,000 t0.3a
1990 25,000 1c)•3b 2000 70,000 toAb
1991 30,000 ib .1b 2001 80,000 ((3
1992 30,000 2002 90,000 to.90
1993 35,000 w 3a 2003 95,000 to.50
Enclosed herewith is lawfgl money of the United States'or a cashier's check,
certified check, bank money. order oe'bank draft drawn and issued by:a
national., banking Association located in Montana, payable to the City
Treasurer, in the amount of $17,500 to be held and disposed of by you as
.provided in the Notice of Sale. This bid must be accepted in its entirety
within the time provided in the Notice of Sale and if not so accepted by
you within such time shall be deemed to have been rejected. This bid shall
remain irrevocable until the expiration of such time unless sooner rejected
by you.
Each of the Bidders: M acknowledges receipt of the Official Statement
dated August 3, 1983; (ii) represents and warrants that it has full power
and authority too make this bid and to purchase the Bonds if this bid is
accepted; and (iii) agrees that the validity and interpretation of this
Said shall be governed by the laws of the State of Montana.
5
- �tf%+' S .. ^'t.�� I • .,. I - _ \- a ..
AN
1
ia6.
In the event
that. the Bidders are ac-ting through a Representative or Repre-
sentative(s)'''each
ofthe undersigned Representatives warrants that it
has
the necessary
power and authority .to:act on behalf of each of the bidders...
Very tr yours,
PI1'R AI'I'RAY & UOPWOO
GORPORATZD
.
- A Rep esenrative(s) of �h
per--
, ., ..
:' • sans i'rms and corporations
named. in Schedule I hereto.
Accepted•as Qf:,.the
date above''written.-
CITY OUNGIB.
By:
Mayor.
By:
Not as part
of this 'bi.d, biit for information purposes, we compute this
bid as follows: ;
'Total coupon interest from September 1, 1983
to -maturity ............................. + .............. ....
tia24L 4-;
Less premium, if any ............... .....................
}eks0
Li•3
Total Dollar interest cost ..................
Net interest rate ........................................
1
1
1
107.
OFFICIAL BID FORM
$875,000
Sewerage System Revenue Bonds, Series 1983
City of Kalispell, Montana -
City Council August 15, 1983
City Hall
Kalispell, MT 59901
1
Pursuant to your Official Notice of Sale, dated August 3, 1983 (the "Notice
of Sale").for the purchase from you of $875,000 principal amount of your
Sewerage System Revenue Bonds, Series 1983 (the "Bonds"), the -persons,
Firms and corporations named in Schedule I hereto (the '_'Bidders") hereby
offer to. purchase al'1.. of the Bonds from you at the price of $875,000 plus
accrued interest from September 1, 1983 to the date. of delivery of the
Bonds to us, plus- a premium of dollars ($ )0, ), the Bonds to bear
interest at the rates set forth opposite the maturity years and amounts
as follows:
Interest Interest
Year Amount Rate Year Amount gate
1984 .$15,000 1994. $40,000 A.so
1985 15,000 1995 45,000 a.6tt
1986 15,COO 1996 45,000 a.7
1987 20,000 1997 55,000 A.qo
1988 20,000 1998 60,000 i0.00
1989 25,000 1999 65,000.
1990. 25,000 2000 701-000
1991 30,000 2001 80,000
1992 30,000 2002 90,000
.1993' 35,000 '2003 95,000
Enclosed herewith is lawful money of. the United States..or.a.cashier,'s-check,
certified check, bank money order or bank draft drawn and issued by a
national banking .association located in Montana, payable to the City
Treasurer,. in the amount of $17,500 to be held and disposed of by you. as
Provided in the Notice of Sale. This bid must be accepted in its entirety
within the time provided in. the Notice of Sale and if not so accepted by
you within such time shall be deemed to have been rejected.. This bid shall
remain irrevocable until the expiration of such time unless sooner rejected
by you.
Each of the Bidders: (i) acknowledges receipt of the Official Statement
dated August 3, 1983; (ii) represents and warrants that it has full power
and authority to make this bid and to purchase the Bonds if this bid is
accepted; and (iii) agrees that the validity and interpretation of this
bid shall be governed by the laws of the State of Montana.
4
I
E
In the event
thatl.the Bidders-are.acting through'.a Representative or Repre-
sentative(s)
each: of the undersigned; Representatives warrants that it has
the necessary`,powet.and
authority to act :on behalf of each of the bidders..
Very truly yours-,
As r sentative(s) of the per-
sos.fi-ms and corporations
na ed i# Schedule I hereto.
Accepted as of.
the .da.te above written;,
CITY COUNCIL
Hy:
-
Mayor
Not as part
-------- ------------_--_ ;-•----_--------__-_
of this bid, but for '.information purp.Qs.es.,, we compute this
bid as .follows:..
Total coupon interest from September 1; 1983
to maturity ....:............ .......................... 1J21:x !Y3a.5b
Less premium, if any. .............. .. ................
Total Dollar interest cost ....:........................ .. ���1
�;:Gabe
Net interest rate .......................................
I
1
OFFICIAL BID FORM
$875,000
Sewerage System Revenue Bonds, Series 1983
City of Kalispell, Montana
City Council
City Hall
Kalispell, MT 59901
.109.
August 15, 1983
Pursuant to your Official Notice of Sale, dated August 3, 1983 (the "Notice
of Sale") for. the purchase from you of $875,000 principal amount of your
Sewerage System Revenue Bonds, Series 1983 (the "Bonds"), the persons,
firms and corporations named in Schedule I hereto (the "Bidders") he
offer to purchase all of the Bonds from you at the price of $875,000 plus
accrued interest, from. September 1, 1983 to the date of delivery of the
Bonds to us; plus a premium of dollars ($ �k ), the Bonds to bear
interest at the rates set forth opposite the maturity years and amounts
as follows:
Interest Interest
Year Amount Mate Year Amount Rate
1984 $15,000 1994 $40,000; to -ice
1985 15,000 1995 45,000 10.30
1986 15,000 1996 45,000 aa.uo
1987 20;000 1997 55,000 1o.50
1988 20,000 1998 60,000 ►-40
1989 2-5,000 1999 65,000 10.10
1990 25,000 2000 70,000 to•ti�
1991 30,000 2001 80,000
1992 30,000 2002 90,000
1993 35,000 040 2003 95,000
Enclosed herewith is lawful money of the United States or a cashier's check,
certified check, bank money. order or bank draft drawn and issued by a
national banking association located in Montana, payable to the City
Treasurer, ,in the amount of $17,500 to be held and disposed of by you as
provided in the Notice of Sale. This bid must be accepted in its entirety
within the time provided in -the Notice of Sale and if not so accepted by
you within such time shall be deemed to have been rejected. This bid shall
remain irrevocable until the expiration of such time unless sooner rejected
by you.
Each of the Bidders: (i) acknowledges receipt of the Official Statement
dated August 3, 1983; (ii) represents and warrants that it has full power
and authority to make this bid and to purchase the Bonds if this bid is
accepted; and (iii) agrees that the validity and interpretation of this
bid shall be governed by the laws of the State of Montana.
N
I
11o.
s
r
In the event that the Bidders:acting through a Representative or Repre—
sentative(s) each of the undersigned Representatives warrants that it has
the necessary.powrer and authority to act on'behalf of each o£ the bidders.
Very truly yours,
�,W-
As Representative(s) of the
sons firms and corporations
named 1 Schedule I hereto.
Accepted, as. of the date above ,writtenc
14.
CITY COUNCIL,
Mayor
.
By-.
Not as part of, this bid, but "for information purposes, we compute this
bid as follows: ...
Total coupon interest, from September 1, 1983
- to maturity ...... . . . .... . . .. 4 ....... r . • . r . ... .. r r, i r • .. • ' � ri
�. � }.aL7
Less premium, if any ..........r. rrr. r. •►,... +rr.r..... r.
Total Dollar interest cost ...:.....................,';L27,a'70.00
Net interest rate .................................... . 14 64142
Fil
S
OFFICIAL BID FORM
$875,000"
Sewerage System Revenue Bonds, Series 1983
City of Kalispell, Montana
City Council .
City Hall
Kalispell, MT 59901.
August 15, 1983
Pursuant to your Official Notice of Sale, dated August 3; 1983 (the "Notice
of Sale") for the purchase from you of $875,000 principal amount of- your
Sewerage System Revenue Bonds, Series 1983 (the "Bonds"), the - persons;
firms and .corporations named in Schedule I hereto (the 'Bidders") hereby
offer to. purchase all of the Bonds from you at the price of $875,000 plus
accrued interest from September 1, 1983 to the date of -delivery of the
Bonds to us, plus a premium of dollars ($ )�zt ), the Bonds to bear
interest at the rates set forth opposite the maturity years and amounts
as follows:
Interest interest
4 Year Amount Rate Year Amount Rate
1984 $15,000 4=519k-115� 1994 $40,000: l0.
1985 15,000 10.0o 1995 45,000 10,440
1986 15,000 a.t�,o 1996 45,000 W.-10
1987 20,000,So 1997 55,000 10•90
1988 20,000 1998 60,000- 1040
1989 25,000 C4.1> 1999 65,000
1996 25,000 r'1,gt7 2000 70,000 1t7.1y
1991 30,000 18.0 j 2001 80,000 L6.p
1992 30,000 10A > 2002 90,000
1993 35,000 10.34 2003 95,000 r0.y
Enclosed herewith is lawful money of the United States or a cashier's check,
certified check,. bank money. order or bank draft drawn and issued by a
national banking association located in Montana, payable -to the City
Treasurer, in the amount of $17,500 to be held and disposed of by you as
provided in the Notice of Sale. This bid must be accepted in its entirety
within the time provided in the Notice of Sale and if not so accepted by
you within such time shall be deemed to have been rejected. This bid shall
remain irrevocable until the expiration of such time unless sooner rejected
by you. -
Each of the Bidders: (i) acknowledges receipt of the Official Statement
dated August 3, 1983; (ii) represents and warrants that it has full power
and authority to make this bid and to purchase the Bonds if this bid is
accepted; and (iii) agrees that the validity and interpretation of this
bid shall be governed by the laws of the State of Montana,
I
V
F
11.2.
K.
In' the event that the Bidders 'are acting through a Representative or Repre—
sentative(s) each. of the undersigned Representatives warrants that it has
the necessary,power.and authority to action behalf of .each of the bidders..
Very truly .yours,
As Re sera ative(s) of the per—
sons firms -and corporations
named in Schedule T hereto.
Accepted as. of the date above written:
CITY COUNCIL .:.. _
By: `
Mayor . .
By;
Not as part of this bid, but for information purposes, we compute this
bid as follows.
Total coupon interest from September 1, 1983
: to maturity.;..............,:..;ar.w....•.......411.0o
Less premium, if any w■wwawwa •ar rr•a•arr. rr•.r•r••. ww ar ra
.. Total Dollar interest Cost
jCal7,00
Net interest rate .....r........a•r... ....w.......,..a.r.r
Councilman Nystul' statea.that'Consultant Kreg Jones will review the bids.and report
back under dommittee reports.
PUBLIC' HEARI%
Larry Gallagher', r;epresetting,Glacier Park Company, stated that he was here'W ask
for three things:,.Cbiincil consideration.for Urban Development Action Grant and
authorization for the Mayor to:.si-n the application for an amount of $5,000,000.00;.
Council approval to 0--pend up,to$400,000.00 of tax increment monies fop utilities
and public improvements for the Mall project; and Council authorization to publish
notice for a public hearing on a,request for $10,000,000.00 Industrial. Revenue Bonds.
The size.of the proposed mall is subjecti.to revision. It will be based on final
negotiations with the City .and TIUD. The application for the UDAG is, due in the`'
Denver office by August 31st _The properly is by �NR�`an�i � � d-er
L .owned.
urrsdictoaaer Park Cmpay
y „ :
113.
At this time the proposed mall will. cover 200,000 square feet - 10,000 square
feet for a twin cinema; 100,000 for three major tenants and 90,000 for smaller
tenants. The area extends from Third Avenue East to Fifth Avenue West. All present
tenants will be removed and relocated. All railroad tracks will be removed except
the north track. Cost of relocation will be 1.3 million. Normally when tenant
leases are terminated they are just given notice to quit, but:.on this project
tenants will be assisted with relocation. Total cost of the proposed project in-
cluding construction, utilities, consultants, bonds, etc. is estimated at 15.3
million.
The 5 million UDAG may be a loan or loan -grant and repaid to the City at an interest
rate of 3% for the first two years, 4% the third year and increase 1% annually until
it reaches 9%. Principal and interest would be repaid at the rate of $367,000 up
to $475,000 to the City for reprogramming.
They must demonstrate that but for UDAG, the project is not feasible and will not
proceed.
The project will require ::t. at. _1)epQt Lo, p - be extended east of the new Chamber of
Commerce building and signalization.
In addition to the planned mall, there may be_�rhatel complex with 150 to 250 rooms.
If this is built, there will be an extra 3 million in improvements. This is not
part of the project.
In summary, Mr. Gallagher stated that the area contains 21.2 acres,,200,000 square
feet of mall, 73,350 square feet landscaped, 983 parking spaces, which will be re-
duced if the hotel is built and total cost will be 15.3 million. Between now and
October 1st they will know if the mall has to be downsized to 160,000 square feet
with two major businesses instead of three.
Mr. Gallagher explained that the use of federal monies in the UDAG application re-
quires an analysis of the effects the project will have on adjacent properties
eligible for the National Register of Historic Places. .The evaluation has been
completed and a Determination of No Effect has been agreed upoh7the State Historic
Preservation Office. That is, the mall will not have an impact on the historic
character of the surrounding neighborhood. On the site where the mall will be
built, one structure, the Cherry Warehouse, was determined as historically signi-
ficant by the Keeper of the Record in Washington, D. C. The warehouse has to be
removed to allow for the planned motor inn and required off-street parking. In
order to removed the warehouse, documentation on its significance and technical
photographs will document the warehouse. Those records will be kept in Helena in
the archives of the Historic Society and included in the Environmental Review
Record.
There were no comments from the public or the Council.
The UDAG application will be submitted by August 31st to the HUD Office in Denver.
We have until October 1st to obtain commitments from major companies. If granted,
will arrive at final terms by November 1st in Washington, D.C-.
Negative aspects afe'�cl.i:mbi.ng interest..rates and the risks and uncertainties for
the developer, also the keen competition from other applicants..
On the positive side, construction will cover about an 18 month period and employ:
70 to 95 persons; on completion there should be 275 to 300 full time jobs with
probably 90% local hiring; and the tax base should increase from the present
$36,318.00 to $287,000.00.
Glacier Park Company may be able to get along on only $200,000.00 tax increment
from the City, but HUD may insist on more, thus the request for $400,000.00.
Mayor McDowell asked for Council participation.
Councilman Palmer asked at what point you will know the size. Mr. Gallagher replied
that it will depend on how many major tenants are committed and the bond buyers will
dictate the size. This will happen prior to October lst. They can downsize before
the application reaches Washington, D.C.
Councilman Ruiz asked.if railroad track relocation was dependent on the project and
was told it did. It would be up to BNRR if grant is turned down.
Mayor McDowell asked if there were any other proponents. No one responded.
Mayor McDowell asked if there were any opponents.- No one responded.
Public.Hearing declared closed on UDAG applications.
114.
PUBLIC HEARING - Pack Annexation #15-6
Councilman Palmer, Chairman of Annexation Committee, explained that the area is be-
tween McDonald's and The Sizzler. It will clearup an area that is outside the
City and wedged in between two areas that are inside the City limits. It has been
approved and recommended for annexation of FRDO.
Mayor McDowell called for proponents. No one responded.
Mayor McDowell called for opponents. No one responded.
First reading of an ordinance to annex will be.at the September 6th meeting.
ADDRESSING THE COUNCIL
Mayor McDowell asked for anyone wishing to address the Council. No one. -responded.
COMMITTEE REPORTS
FINANCE
Kreg .Tones reported on the bids for -the Sewer Revenue Bonds. Mr. Jones stated
that he did receive the bids, verified their accuracy,, fihancial covenants have
been satisfied and recommended that the Council accept the bid of Dain-Bosworth,
low bid of 10.0795%. This rate represents a savings of $4,750.00 a year, or
$95,000.00 over the life of the bond.
RESOLUTION #3479
Councilman Nystul moved adoption of Resolution #3479, a resolution awarding the bid
of $875,000.00_Sewerage Systetti'Revenue Bon.ds,Serie6 1983, to Dain-Bosworth, Incor-
porated, lowest most responsible bidder. Seconded by Councilman Ruiz. Roll call
vote. Councilman Palmer abstained. All others voted aye. Resolution adopted. ..
RESOLUTION #3480
Councilman Nystul moved adoption of Resolution #3480 a resolution authorizing and
directing the issuance afid sale of $'875,000.00 Sewerage System Revenue Bonds,
Series 1983. Seconded by Councilman Ruiz. Roll call vote. Councilman Palmer
abstained. All others voted aye. Resolution adopted.
ANNEXATION
ORDINANCE #1034
Councilman Palmer moved second reading to enact Ordinance #1034 an ordinance to
amend the Zoning Ordinance. Seconded by Councilman. Palmer. Roll call vote. All
voted aye.
MEDICAL ARTS RESUBDIVISION
Councilman Palmer explained that in ,.Tune 1982, the Council passed a resolution to
approve the Medical Arts Resubdivision #143 with certain conditions, such as a 25'
turning radius at Conway Drive and Highway #93, extending -sewer and water lines and
g1_a ezii n 'of fire hydrants. Later the developers asked for and received from the
Council a one year extension. They haver now either completed the improvements or
posted a bond that they will complete them and have presented the final plat for
approval. All subdivision regulations have been met.
RESOLUTION #3481
Councilman Palmer moved adoption of .Resolution #3481 a resolution to approve Medical
Arts Resubdivision #143. Seconded by Councilman Grainger. Roll call vote. Coun-�
cilman Vidal:';astaied: All other Councilmen voted aye. Resolution adopted.
STREET & ALLEY
There was no report.
PARKS
RESOLUTION #3482
Councilman Vidal moved to adopt Resolution #3482 .a resolution to submit to the
qualified and requesting electors of _`the City of Kalispell for their approval
the issuing of $550,000.00 in General Obligation bonds, pledging the general
credit of the City of Kalispell for the purpose of renovating Bruckhauser Pool
within the City of Kalispell, and:'to'direct due and forever notice of said
election be given to the electors. Seconded by Councilman gystul.
Councilman Nystul asked if we are able to reach an agreement with Flathead County
to accept their offer of $100,000.00, will the bond issue be reduced. The answer
was "Yes, $550,000.00 is the maximums". They will ask for the maximum and continue
to negotiate with the County. 'Councilman Nystul stated that he had talked with
115.
County Commissioner Krueger and his conditions are reasonable. Commissioner
Oldenberg's conditions comply with state statute, so we may be able to work things
out.
Councilman Ruiz spoke against the motion because he would like to see a larger bond
issue and build a year -around pool, rather than put this much into a pool which
only serves 10 weeks out of the year.
Councilman Palmer spoke in favor of the motion because we do not have enough time
to consider a change in plans. The voter has a choice and we should pass this reso-
lution, place it on the ballot and let the people decide.
Councilman Nystulremijded Council of the situation in Bozeman where they operate a
year around pool at a deficit of $80,000.00 per year, even with help from the school.
Question called. Roll call vote. Councilman Ruiz voted nay. All others voted aye.
Resolution adopted.
COMMUNITY DEVELOPMENT
Councilman Saverud asked if there were any other UDAG applications. No one responded.
Councilman Saverud reported that the Community Development Committee met and dis-
cussed Industrial Revenue Bonds. On two occasions in the recent past, the City has
approved.bonds for the Outlaw Inn and the Jewel Company (Buttrey Foods & Osco Drug).
Some concern that IRB are improper because it intrudes on private money. _Councilman
Saverud stated that he had talked with all four bank presidents in Kalispell and they
do not feel they intrude, but are in the best public interest.
RESOLUTION #3483
Councilman Saverud moved to adopt Resolution #3483 a resolution calling for a public
hearing on a proposed project under Title 90, Chapter 5, Part 1, Montana Code an-
notated, for the issuance of Industrial Revenue Bonds for construction of a mall by
Glacier Park Company and setting the public hearing date for a special meeting on
September 12, 1983. Seconded by Councilman Palmer.
Councilman. Ruiz expressed a concern with issuing Industrial Revenue Bonds and a
special concern with pledging tax increment funds which we do not have and do not
know if we will have.
Councilman Nystul explained that Flathead County made an error in the tax increment
last year but which has now been corrected and we will receive tax increment on a
1.2 million valuation this year.
Question called. Roll call vote. Councilman Ruiz voted nay. All others voted
aye. Resolution adopted.
RESOLUTION #3484
Councilman Saverud moved adoption of Resolution #3484 a resolution calling for the
intent to consider a pledge of up to $400,000.00 tax increment funds for off -site
utility construction for the mall. Seconded by Councilman Grainger.
Councilman Palmer questioned the amount. Councilman Saverud explained that the
local community is an invested partner in the project and shows our. -good faith.
Councilman Ruiz spoke against the resolution. He stated that we have guarded the
tax increment fund carefully, spending it only on street reconstruction.:. If we
had the money J_in hand he might feel differently. He added that we seem:;to be
moving incredibly fast - originally we were just talking about UDAG last meeting now it is Tax Increment and $10,000,000.00 Industrial Revenue Bonds. Councilman
Ruiz stated that when BNRR first made application, he did not know the taxpayers
would be footing the ball or that the tracks were tied to this project, and can
not justify,�BNRR being eligible for subsidy by a grant. Councilman Ruiz read a
news item about a stretch of railroad track in eastern Montana purchased by BNRR
and then abandoned because it needed repairs, causing the farmers additional cost
to get their grain to market. Councilman Ruiz also mentioned protested taxes by
BNRR throughout Montana. All the other mall wanted was annexation -and it.was
turned down.
Councilman Saverud explained that this was an area where the income will help us.
It is legal and will help the City have an on -going program for 20 years, The tax
base will be increased so when it runs out we still have more income.
Councilman Grainger stated that we have not turned anyone down who has requested IRB..
When the tax:: increment ordinance was passed, he was ag;ins:t;it but it was earmarked
for projects within the district such as this. On IR Bonds, Councilman Grainger
stated that hemsed to feel irritated about other businesses getting 3% loans, but
he has since changed his mind because it does not hurt business at all. Roll call
vote. Councilman Ruiz voted nay. All other Councilmen voted aye. Resolution adopted.
RESOLUTION #3485
Councilman-Saverud moved that the Council authorize the Mayor toisign Kalispell's
application to the United States Housing & urban Development for up to $5,000,000.00
Urban Development Action Grant funds to aid in the Kalispell Mall Project. Seconded
by Councilman Zauner. Roll call vote. Councilman Ruiz voted nay. All others voted
aye. Resolution adopted.
116.
RESOLUTION #3486
Councilman Saverud moved that the Council authorize the City Development Committee
and the Finance Committee to review and approve. the final action of any items neces-
sary to complete the application grant up to fhe maximum established at $5,000,000.00
Seconded by Councilman Nystul. Roll call vote. Councilman Ruiz voted nay. All other
councilmen voted aye. Resolution adopted.
SAFETY
Councilman Grainger had no report.
SEWER & WATER
Councilman Ruiz had no report.
FINANCE
Councilman Nystul moved that he be allowed to be absent from the State from Septem-
ber 10 until the 25th. He will be doing an audit in Alaska. Seconded by Councilman
Palmer. Motion carried.
Councilman Nystul reported that Chuck Stearns, Public Administration intern for the
summer, has completed two projects for the City - one is a city shop evaluation and
the other is an administrative transfer cost plan. One more project will be selected
before he completes his internship.
City Attorney Neier explained the'new.law;that eliminates the Oil Sprinkling and
Water Sprinkling assessments and sets up a Street Maintenance assessment. The first
step is to enact an ordinance setting up the district and calling for a public hear-
ing. The new assessment shall include, but not be limited to, sprinkling, graveling,
oiling, chip sealing, seal coating, overlaying, treating, general cleaning, sweeping,
flushing, snow removal'and leaf and debris removal.
ORDINANCE #1035
Councilman Nystul moved first reading)bf Ordinance #1035 an ordinance creating Special
Maintenance District No. 1, for the purpose of maintaining the streets and avenues of
the City of Kalispell, to define the boundaries of said district, to provide for.
assessments, and to provide an effective date. Seconded by Councilman Grainger. Roll
call vote. All voted aye.
RESOLUTION #3487
Councilman Nystul moved adoption of Resolution #3487 a resolution to estimate the
cost of lighting the streets and alleys in the City Special Lighting District, and
of the intention of levying and assessing the cost thereof for the year 1983.
Seconded by Councilman Zauner. Roll call vote. All voted aye. Resolution adopted.
Councilman Nystul expressed his regret at the resignation of Pat Tinseth, Acting
City Treasurer.
MISCELLANEOUS
Councilman Vidal announced a Parks Committee meeting at 3:00 P.M. on August 23rd
to discuss the airport.
Councilman Grainger moved to adjourn. Seconded by Councilman Nystul. Motion
carried.. Meeting adjourned at 9:20 P. M.
Approved as corrected September 6, 1983
ATTEST:
Marjorie Giermann, City Clerk