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05/21/84 City Council Minutes198. THE REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:30 P. M. MONDAY, MAY 21, 1984 IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR MCDOWELL PRESIDED.- COUNCILMAN GRAINGER ABSENT. ALL OTBER COUNCILMEN WERE PRESENT. APPROVE MINUTES Corrections made on page 192, under Public Hearing on Sewer Rate - should read "north of town" and under Sewer and Water Report - should read "headworks". Councilman Nystul moved to approve the minutes of the Regular Meeting of May 7th as corrected and the minutes of= the Special Meeting of May 14th as presented. Seconded by Councilman Schindler. Motion carried. PUBLIC HEARING - Meridian zoning Councilman Manning explained that this hearing is premature and the proposed zoning should go back to the Zoning Commission. The 12 item .criteria from Flathead Regional Development Office must be addressed for each zone; presently the .land is designated under the Master Plan as urban residential and there is the question of whether we have to go through the .land use plan and for these reasons, it should go back to'the Zoning Commission for review before a public hearing is held at the Council level. Several people were present and spoke favorably of the proposed zoning. PUBLIC HEARING - Highway #93 Annexation.#158. This annexation concerns two sections of Highway #93,'one north and one south. There were no proponents or opponents. Public Hearing declared closed. ADDRESSING THE COUNCIL Charles White, President of Kalispell Feed & Grain, addressed the Council unofficially as representative of the "Mall Relocation Group". Mr. White explained that the group is not officially organized:;_ _hut are the businesses that are going to be affected, for good or for bad, by the proposed new mall and all are either .lessees or are currently carrying on business on BN or Glacier Park Company property and either own or lease buildings, or own lease/hold facilities that are .located on the tract whi:chis proposed and being considered for-'rhe downtown mall. Mr. White emphasized that it is the sincere wish of this group that they do not want to create any animosity, divide the tommunity, choose up sides or lose any friends over this. All of the businesses are associated with this project in some way and all want the best for this town,"and the valley as a whole. If you were to poll the group individually, you would find that most of them are in favor of the mall. They also think it is important that the lessees are treated fairly and that they are kept appraised of this project, and that the promises that were made at its inception are now kept. As time has passed since zoning changes were granted by the County Commissioners and the Council, it .is becoming increasingly difficult' -for members of this group to obtain an- swers to their questions that very drastically affect them. It is becoming more and more difficult to feel confident that some of these implied promises will be kept. So, in an effort to better plan this future that they are a little uncertain about, and get ready for'these changes that we know are coming, we have done about all the ground work that we can do. We have cohtacted the Glacier Park Company and have found that theq,:are a limited partner and have relinquished all responsibility for the development and reloca- tion process, but they have made it very clear that the project is a "go". Also, Mr. White continued, we have found that our contact with the Glacier Park Company, Mr. Neil Hartman, who presented this Council with the proposal, has subbequently been fired. We have talked to the developers, Gooda.le and Barbieri, and have been told there is no formal contract finalized or signed and they cannot tell us anything about the relocation process, but have also assured us that the project is a "go". The local Community Devel- opment Department has sold us the same thing - that no contract has been signed releasing the UDAG grant from the City to the developer, but that the project is probably a "go". We are having a hard time doing any planning and as an example, our own firm, Kalispell Feed & Grain, is .looking down the barrel at a grain harvest in August, and at that t..ime we are filling with grain, but it is not our grain, it still belongs to the farmers. We cannot empty that facility until'.gz5uch time as the farmer believes that the price is satisfactory and we buy the grain and ship. This could be next March, June or July, or anytime. So you can see the magnitude of the problems. Flathead Cherry Growers face about the same type of situation. They are dealing with a perishable item,*hick makes it even tougher. Richards Oil Company faces a situation there they have under ground and above ground tanks and must find a place environmentally acceptable. There are large problems that face all of these folks. We do not expect any answers here. That is. -not why we came. Primari.l�., what we ,are here for is to very respectfully request that this Council remember some of the promises that were made and implied at the time the. - zoning changes were granted. Mr. White read the letter written to him bg,,Mr. Hartman 199. which was read into the minutes of the June 20th Council meeting. In the letter, Mr. Hartman stated that the Glacier Park Company would assist with relocation and assist in every way possible.. It was because of assurances such as this that the zoning change was granted. Also, it might be of interest to note the; -businesses that will be affected - Mfac; B & B Beverage; Chase Properties; City Transfer; Roger Thornton, Chevron Oil; Bob Ewing Enterprises; Flathead Lake Cherry Growers; Kalispell Feed & Grain; Dan Korn: Husky oil; Orland Leland.; Bill Martin; Lee Tower, Wrangler Oil; Palmer Brothers; O'Neil Lumber Company; Pacific Fruit & Produce; Art Rassmussen; Francis Bitney; Buzz Lund, Valcon Oil Company; Dale Hadley, Center Auto Parts; Ross E. Young; Big Sky Properties; Petrolane, Montana Evergreen, Inc. and Richards Oil. Six businesses were polled for annual gross receipts and came up with over $14,000,000. We ask you very respectfully to ask yourselves and the developers the following ques- tions: 1) When will'we be expected to move? 2) What is the extent of -the reloca- tion funding; in fact, is there any? 3) Does this relocation funding, if there is some, include BN's cost of relocating its own railroad tracks? 4) 18 relocation to be considered part of the cost of the project? We know we need your help, because we do not really have any other place to turn. About the only thing we have going for us is.thb,support of this Council and the .local businesses. Everyone in the group knows it is going to cost them something, and some will pay plenty. So, we ask you to please bear in mind two major points: 1) The relocation cost should be built into the cost of the project, with the exception of the railroad cost of moving their tracks. this should be no different than highway condemnation for building roads, and 2) if we can save the 25 or 30 businesses that are under discussion here by treating this whole matter fairly, then these people can continue on with business in a new .location. If we can do this, then we have avoided trading the old businesses for the projected new businesses. If we can do this as a united community, then we will have 70 businesses. They will be paying taxes, meeting payroll and contributing to the growth of the valley. Mr. White concluded by saying that he submits this request as the only intelligent and fair choice. Mayor McDowell thanked Mr. White for coming. He stated that they have the same con- cern: That they want to take care of the people who are already in the community. We want to .look out for your welfare. We are in a waiting period also. He stated that he did sign the ZDAG:grant and this puts it on hold until the project is ready. The hold- up on the project concerns Industrial Revenue Bonds, which is being looked at by the Federal and State, --legislatures. If we get the go ahead on the --:bonds, the project will proceed. There is supposed to be relocation funding,but the amount is not known at this time. As a body, we must lgok after the people who are already established, and we also want to see growth. Councilman Saverud, Chairman of City Development, stated that he might be able to put' into perspective what the Committee, Council and Communit�i Development Staff have been wresting with for about two years. Councilman Saverud thanked Mr. White for his generous comments and stated that "we do hear them:. We shared your concern about relocation from the very beginning. That has been our biggest concern. As a business person myself, I can imagine what type of nightmare it is to have that hanging over your head and try to_plan and operate on a day-to-day basis. It has to be virtually impossible and verg--frustrating and we do understand that. We would also .like you to know and believe that we have been active and aggressive in trying to eke out as much relocation assistance as we can possibly muster. That has been foremost from the very beginning. One of the early things that we learned was that the .leases were for very short terms and very one-sided. We appealed to the landowner and to the developer every step along the way to con- sider as generously as possible relocation benefits because we understand and agree that the businesses that are there are an asset and are viable, going businesses right now and they are important to this community. We know it is going to be diffi- cult, but we do not want it to be impossible or undue. We have been informed by Goodale and Barbieri that they cannot finalize their relodationeplans until this ques- tion about Industrial Revenue Bonds has been resolved. I do not know when this has ever happened before, but this year, Congress decided to take a .look at this issue in January and make everything retroactive to January. So, even though we were prepared, on time and on line, all of a sudden we got caught in a bind. We have at least 5 months now that has evaporated. You should have had an answer -under a normal course of events but we are not in control of that, and it has created some additional dif- ficulties. As soon as the question is resolved, either on--tbe federal or state level, it will not be very many days before we will start getting some firm information. Then, some decisions can:be made. I think it is also fair to say that as soon as that Industrial Revenue Bond cloud is:resolved, the City will insist that the developer or landowner or both, contact each lessee individually with specific information, both as to a time frame and conditions. You, as an individual and you, as a group, have been extremely patient and I commend you for it. At this point, I would just underscore the 200. fact that the City does share the same concerns and we intend to underscore each and every one of them that you have highlighted. Not one of them was new to us. We will work toward resolving them as quickly as possible, with your best interests in mind. We consider that each of you are city business residents and deserve our attention as much as anyone else. Councilman Palmer asked if the businesses .listed were inclusive of everyone or did some wish not to bb associated with this group. Mr. White replied that this is their mailing .fist and he could not say if it is complete or not. --- The question was asked about the status of the UDAG grant. Mayor McDowell replied that it has been signed and returned with a.few minor changes and there has been no further word. Councilman Saverud explained further that the grant is a grant to the City when we come to terms with HUD, then when we come to terms with the devel- oper, it becomes a loan to;ithb developer so there is really more th,2.n one contract involved. At this point, the City and the developer have not signed an agreement. Councilman Ruiz stated that just so we do not .leave here_Jvi:th the -same generali- zations that we have at other meetings, he would like to know personally, and for the record, whether or not we have any control of the budget for this project - in other words,...,can we ask for specifics in the budget, not only for relocation but for the related off -site improvements that the City may have to bear in terms of streets, water, sewer, sidewalks or any of those construction costs. Do we ask the developer for these funds, or do they just give us a shopping list of what they want? Councilman Saverud stated that those specifics become a part of the contract between the City and the Developer. Councilman Ruiz asked, "And we can write in X amount of dollars for relocation and x amount of dollars for off -site improvements?" Council- man Saverud replied, "Within the conf hes of the contract':" Councilman Springer suggested that "request" is the wrong word. We should be using the word "demand". Director Ed Gallagher stated for clarification that the format submitted by the de- veloper has to go to HUD. HUD will act as our agent. When you are ready to sign the contract, the budgetary items will have to be a part of it. You will know exactly what the UDAG if for; the tax increment financing, their entire budget, all their line items will be a part of the contract. The initial stage, the relocation, re- moval of the track is a private matter. Once it gets into the brick and mortar stage, that triggers the Davis Bacon Labor Act and we will have to act as a.monitor so that we can request .a:".vetter,..6f �Crddit . This will all be part of the contract. y Councilman Schindler asked just how much control we will have with Goodale and Barbieri in making sure that the relocation:.funds are adequate? Gallagher -ans- wered that after hearing the statements that Mr. White and Councilman Saverud made tonight, you are going to be a force. The question was asked if funds could be with- held from the UDAG grant for relocation. Mr. Gallagher explained that UDAG funds could not be used because we are not acquiring land. The land is already part of the partnership. The only time we can use these funds for relocation is if you are acq-. wiring the .land and forcing someone to moved. Once you acquire land, you are respon- sible for relocation. Mayor McDowell stated that we will keep them informed as in- formation is available and thanked the group for coming. COMMITTEE REPORT'S FINANCE RESOLUTION #3522 Councilman Ruiz moved to adopt Resolution #3522 a resolution levying and assessing a tax upon all property in Special Improvement District No. 336 to defray the costs of making the special improvements authorized therein and directing notice of public hearing. Seconded by Councilman Schindler. -Roll call vote. All voted aye. RESOLUTION #3523 Councilman Ruiz moved to adopt Reso.lutian #3523 a resolution to approve a transfer among appropriations as adopted by the City of Kalispell Budget for 1983-1984 Fiscal Year. Seconded by Councilman Nystul. This is a transfer of $8,531.00 from Revenue Sharing Hockaday Art Center for.the-:purpose of upgrading the Golf Course water system. Roll call vote. All voted aye. SEWER & WATER Councilman Nystul reported that the Sewer & Water Committee met on May 15th and awarded the Sewer Construction Bid to Pack & Company. RESOLUTION 43524 Councilman Nystul moved to adopt Resolution 03524 a resolution to adopt the fees, schedules, rates, charges and classification imposed on the customers of the City of Kalispell Water Utility, and to amend the rules and regulations governing said utility. Seconded by Councilman Springer. Roll call vote. All voted aye. 201. RESOLUTION 03525 Councilman Nystul moved to adopt Resolution #3525 a resolution to adopt the fees, schedules, rates, charges and classifications imposed on the customers of the City of Kalispell Sewer Utility, and to amend the rules and regulations governing said utility. Seconded by Councilman Ruiz. roll call vote. All voted aye. ANNEXATION ORDINANCE #1043 Councilman Manning moved second reading of Ordinance #1043 an ordinance to amend the City of Kalispell's Zoning Ordinance, ordinance #885, as amended, by adding thereto Chapter 8, entitled: Change of Zoning to Planned Unit Development District (PUD) or the creation of a Planned Unit Development District. Seconded by Council- man Palmer. Roll call vote. All voted aye. ORDINANCE #1044- Councilman Manning moved first reading of Ordinance #1044.%an ordinance to provide for the alteration of the boundaries of the City of Kalispell by including therein, as an annexation, certain real property to be known as "Northwest Horizons Addition No. 160 to Kalispell" to zone said realty as "Residential -Apartment, RA 2" District. Seconded by Councilman Springer. Discussion on a few minor changes. These will be done before second reading. Roll call vote. All voted aye. RESOLUTION'.#3526 Councilman Manning moved to adopt Resolution #3526 a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein, as an annexation certain real property to be known as "Buffalo Hills Reservoir Annexation No. 164", and to zone said property as Public, P-1 District and Residential, R-4" District. Roll call vote. All voted aye. REQUEST FOR ENCROACHMENT Mr. Robert Kriet, operator of Little Big Men Pizza, requested permission to place a freezer against his building, but on city property. The building code does not allow permanent encroachment, but this could be considered temporary, in that if the City requested that it be moved, it could be. It will be 8" x 12' and the same color as the building. It is becoming very common in the restaurant business to provide freezer space in. --this manner. Councilman Ruiz stated that this is similar to the Daily Inter Lake's request for a satellite dish to be placed on city property, which was allowed. Councilman Nystul moved that the request be referred to the Street & Alley Committee with power to act. Seconded by Councilman Schindler. Motion carried. Councilman Palmer set a meeting for 7:00 A.M. Wednesday, May 23rd SAFETY Councilman Schindler had no report. PARKS DEPOT PARK Douglas Fox, representing the VFW, presented a drawing of the proposed plans for Depot Park. Mr. Fox explained that this had been in the planning stage for several years, and now, through the cooperation of the Architectural Review Committee, Parks Superin- tendent Drent and many volunteers, it can become a -reality. The drawing shows Veteran's Square on the west side, where a monument and bell will be placed in honor of all veterans. A gazebo will be built on the east side, 26' in diameter. A sidewalk will be constructed north and south through the middle. Trees will remain and the total park will be landscaped. There will be a drinking fountain and a 40' flag pole with an all-weather flag. The monument dedication is scheduled for July 4th. All materials and labor will be donated by various individuals and firms. Councilman Manning moved to accept the plans for Depot Park as presented. Seconded by Councilman Palmer. Motion carried. LIONS PARK LEASE Councilman Springer moved that the Mayor be authorized to sign the Lions Park Lease with the Chamber of Commerce for the purpose of operating a visitor's center. Seconded by Councilman Nystul. Motion carried. June 13th is set for dedicating the new Visitor's Center and all are invited. 202. CITY DEVELOPMENT Councilman Saverud announced a committee meeting at 4:30 P.M. Wednesday, May 23rd for the purpose of meeting with representative of Dain-Bosworth, Inc. (bond sales): Councilman Saverud reported that Building Official Petbrsen:has prepared specs for a new root on the Hockaday Art Building and moved that DPW Hammer be authorized to call for bids. Seconded by Councilman Nystul. Motion carried. OLD FASHIONED LIGHTS Councilman Saverud moved to authorize DPW Hammer to solicit bids for 42 old fashioned lamp posts as originally planned for Main Street. Seconded by Councilman Schindler. Discussion on extending them to Depot Park and perhaps ndt being able to place them as planned because of signs. Councilman Saverud moved to amend the motion to "40 to 50". Seconded by Council- man Springer. Motion carried. Questiom-called on motion. Carried. MISCELLANEOUS The Sewer & Water Committee will'�meet on Tuesday at 4:00 P. M. (Monday is Memorial Day holiday). Councilman Saverud reported that•,tb& snit brought by residents in the vicinity of the wastewater treatment plant against the City because of the odor has been settled. The portion of the sewer suit of the City versus the Contractor, Purifax and Engineer will hbc.heard June 12th. The Parks Committee will meet at 4:00 P. M. on Tuesday, May 22. District #1 meeting 'of the League cif Cities and Towns will meet at 10:00 A. M. Tuesday, May 29th in the Council Chambers at City Hall, Kalisppll. The County Commissioners, City Council and Flathead Regional Development Staff will meet at 7:30 P.M. Tuesday, May 22nd in the Council Chambers -to discuss updating the Master Plan. The City will hold an auction of unused items on June 16th. councilman Springer moved to adjourn. Approved as presented June 4, 1984 s e o ATTEST: Marjori Giermann, Cfty Clerk=Treasurer