06/25/84 SP City Council MinutesSPECIAL MEETING
209.
i
LeRoy E. McDowell
Mayor
Drawer 1997
ZiP 54401
Telephone (46} 755-5457
THE CITY OF KALISPELL, M O ITT TAN A
JUNE 22, 1984
S P E C I A L M E E T I N G
TO THE HONORABLE BOARD OF COUNCILMEN
CITY OF KALISPELL, MONTANA
GENTLEMEN:
There will be a Special Meeting of the City Council Monday, June 25, 1984 at
2:00 P. M. in the Council Chambers at City Hall for the following purpose:
TO DISCUSS PROPOSED PUBLIC WORKS PROJECTS ASSOCIATED
WITH THE KALISPELL CENTER LTD. DEVELOPMENT
We, the undersigned, being all of the members of the City Council, do hereby
waive notice of the date and purpose of the Special Meeting of the City Council
to be held Monday, June 25, 1984 at 2:00 P. M. in the Council Chambers at City
Hall and consent to the transaction of the above and any other business that
may properly come before the City Council.
Le ;
ATTEST:
Marjbrp-effGiermann, Clerk -Treasurer
G� /�sr L t.+�L _ OUT OF TOWN
Wayne P4 Saverud 'Louis B. Ruiz
Howard G. Grainge
Paul R. Palmer
M Y_���.WVRR ��
��
_, . . -
■
-Glean
l/Gar W. Nystul
T Or TOWN
harles J..M444ing
Patri/Iri
g r
ier, City Attorney
an City"
Mayor McDowell presided. Councilman Ruiz, Manning and Palmer were absent. A.1.1 other
210.
from State of Montana people, Department of Commerce, that if .the
state did get this
arRgunt,.bur application for 10 million dollars would have priority,.
There has been
additional information brought down today and Councilman Saverud
asked Community De-
velopment Gallagher to report.
Gallagher reported a phone call from the office of Senator.Baucus
and they did, indeed,
reach an agreement at the committee._level and the City. .of Kalispell
has a generic
classification as, far as the .UDAG grant•is concerned. The State
has a .limit of $150
per capita., which amounts to about $120,000,000. Industri.a.l Revenue
Bonds are used
for student .loans, programs .like we have 'in municipalities, ag loans,
the umbrella
.,bonds.that-build Montana programs,.'etc., They are trying now to
figure 50% for State
and 50 for, znu�iic�pala�ties..,r Apparently there will be ,a minimum
Q. $20a.;,00Q'.400 and:,
rridustrral i:nves,tmep s in Montana will:not 'suffer
Counc'i lmazi'. Savercl stated that last `week, Director , Q,f. Pub.li.c Works
.Hammer and -City
Attorriep Neier `conversed with th'e Developer, of.. th& ;proposed mall
and the . bond
couns21,; Dbrsey :& Whitney.` here is. some: concern from, the ::financial
people"tliat
the project ,•has;. some, .a'aditiona.l certainti.e's .related. -to, it . , , For
instance, the City
in its original ,proposal 'h:a.d sugges'teel that: we .coat xbtiite.; $200, 000.00
for off -site
mpxoremeits. When"IJUD nbgotiated 1n:our..'behalf ;, th'ey_:nd'cated
that this was not
a rea8 nabte amount aril we shoul;cl be yiill1 to .pome .,.up wi-6 at,
.least , $40,0, 0.00.00 ,
and th.a;s a s;, what out resolution' reads. AS.:;.DPW f3am le'f has .been reviewing they'. cost .of
of sate improvernens,;`he ss firidntl fi'hat`:t nuibex':inght'noi be
adequate S.gme
o'f tY ; �mprgve[nent5 h'at are b trig ` c'Onsider.ed ,he are obi-ous_ly
directly rel.ai e,d to .
the development and otheis'are' fairly indirect. Hammer has prepared
a list of im-
provements and will walk us through.
`r 13ROPOSED MALL
"OFF -SITE COST ESTIMATES" ASSOCIATED WITH MALL
I. Center Street (1st Avenue East - Main Street)
A) Widen 10 feet
$10,000 _
B) Street Light Relocation (2)
1,200
C) Tree Removal
500
D) Power Pole Relocation
N-C.
E) Irrigation Relocation
1,000
F) Storm Sewer Relocations (2):
10,000
G) Traffic_ Signal Relocation
50,000
H) Street Striping
500
I) Curb Removal and Replacement
2,600 ,
J) Sidewalk Installation
2,880
Sub -total
$78,68OZ
II. Depot Park -(North side)
A) Eliminate right turn lane median
$5,000
8) Remove .light pole in medlatl
600
C) Remove and replace 100' curb @ $8.W
800
D) Backfill with top soil
1,000
E) Remove and replace asphalt
11000
Sub -total
$8,400
III. Center Street (Main Street - 5th Avenue West)
A) Widen 10 feet.
$50,000
B) Street Light Relocation (3)
1,800
C) Sidewalks (1780"x 6) @ $2.60
21,360
D) Curbs (17801), @ a.0.0
14,200
E) Entrances 3 x 3,000
9,000
F) Storm Drain Relocation 3 @'$5,000
15,000
G) Traffic Relocation:.
-
1) Main & Center
10,000 =�
2) 2 at Center and 1st Avenue West
20,000
H} Striping
5,000
I) New street lights (5)
10,000
J) Purchase 12' row for 1780' @ $10 s.f.
213,600,
K) Remove 1 large pole sign --,_. 1
r 30-000
L) Remove utility poles
N.C.
M) Remove landscaping & sign at 5th & Center..
3,000
N) Install traffic signat at 5th & Center
120,000-
0) Transition across intersection at 5th & Center
51000
Sub -.total
$500,960
IV. 4th Avenue W. N.(Idaho-Railroad Street)
A) curbs (2 blocks)
g) Sidewalks (2 blocks)
C) Construct_ (2 blocks - not paved)
D) Painting at railroad crossing
Sub -total
{ V. 3rd Avenue W. N. (Idaho - Railroad Street)
A) Curbs (2 blocks)
B) Sidewalks (2 blocks)
C) Painting at railroad crossing
Sub --total
VI. 2nd Avenue W. N. (Idaho - Railroad Street)
A) Painting at railroad crossing
Sub -total
VII. 1st .Avenue W. N_ (Idaho - Railroad Street)
A) Curbs (1 block)
B) Asphalt overlay (1 block)
C) Painting at railroad crossing
VIII_ Off -site Utility Improvements (other)
A) Sanitary (Service)
B) Storm Drainage
IX. 5th Avenue West (Center - llth Street)
A) Widen Street/Street Reconstruction
B) Curbs 6400' @ $8.00
C) Tree Removal
D) Storm Sewers
,
Engineering and contingencies
Sub -total
Sub -total
Sub -total
Total
GRAND TOTAL
$10,240
12,800
70,000
500
$93,540
$10,240
12,800
500
$23,540
$500
$500
$5, 120
6,000
500
$11,620
$6,000
3,500 'A�,
$9, 500 0
$300,000
51,200
10,000
N.C.
- $361,000
$1,087,740
271,935
$1,359,675
Hammer explained that these costs are direct, indirect or closely associated with
construction of the mall.
Item I
DPW Hammer explained that No. 1 item (widen Center Street from Main to First Avenue
East) only came up last week after the Highway Department reviewed the project. They
decided that instead of extending Depot Loop, they could widen Center from Main to
First and avoid another traffic light. The cost would then have been about $200,000
so there is a savings in this change. No. 2 is listed as a direct cost.
Item II
Hammer explained that we need to eliminate the right turn .lane median off main Street
into Depot Loop. The old one will remain and just eliminate the right turn Lane.
This will be a direct cost.
Item III
Hammer explained that Center Street needs to be widened 10.feet,.in order. to provide
a left turn lane so that east and west bound traffic can turn either north or south..
Item 0 - purchase of the .land is necessary to widen the street.
212.
Item N - Councillman Bavor•hd stated that he had thought the traffic signals would cost
$80,000, but Hammer replied that he has checked with the State and the cost is $120,000.
Item III will be a direct cost.
Item IV, V, VI & VII
DPW Hammer stated that the above items pertaining to 4th Avenue W. N., 3rd Avenue W.N.,
2nd Avenue W.N. and .lst Avenue W.N. could be direct or indirect. Hammer explained that
he does not:!have-hhe:.16tett site plan, but understands that the architects are drawing
in entrances from the north. If this is.true, it will involve streets, curbs and rail-
road crossings on these four avenues. If they close these streets off, there will be
none of this cost involved. So, until the new site plan is received, these costs are
questionable.
Mayor McDowell stated that he felt that this would not be a direct cost because these
streets are in bad shhpe.anyway. Hammer replied that you have one problem - one of
the streets has never even been paved and would require an SID,'and feels that the
people would vote down an SID. Councilman Nystul stated that lst and 2nd have been
reconstructed, but 3rd and 4th are bad. Councilman Grainger stated that if we do
3rd and 4th now, it will .look like we did them because of the mall. Councilman Nystul
stated that we need to see the final site plan. The last time it was discussed they
were going to build a fence from:Main to Fifth and not even let you walk through.
Item VIII
Hammer explained that the -off -site utility improvements are for sanitary and storm
drain construction and are a direct cost so the mall can tie into our mains.
Item IX
Item IX is street reconstruction on 5th Street West from Center to llth'Street. It
cannot be decided.if this cost is direct or indirect. Hammer said he had no idea.
Councilman Saverud stated that there has been discussion abbut what to do with 5th
Avenue West for as long as he has been here, and there is so much traffic for 9
months of the year because of the high school" -that there is a problem. It was dis-
cussed before 11th Street was improved as a mini by-pass, so it could be considered
related and associated, or indirect.
Councilman Grainger stated that we talked abbut it way before the mall was heard of.
Hammer stated that because it was discussed and not.f,a thing done about it and because
we are not going to do a thing about it until the mall is built, it should be a
direct cost. Councilman Grainger state-d that;:_we are going to have to do something,
regardless, and also to 3rd and 4th Avenues West. He stated that he could not go
along with 'direct cost' because something has to be done about these streets.
Councilman Saverud stated that last week we discussed and reviewed with the committee
the secondary .loan agreement and found that to be satisfactory and as the committee
had power to act, we authorized the Mayot.to sign that. But, we also -in order to make
the package complete -need to clarify our position with what we intend to do with off -
site improvements. As we said earlier, the resolution that we have adopted, Resolu-
tion 3484, passed last August, indicated that we would p.ledge..up to $400,000.00 of.
tax increment for these improvements to make this project successful.
When we pledged that increment, we did not actually know what ther,cost would be as we
do not now,/ We have the best budgtt we have ever had ricjht'.now, but even that is sub-
ject to change and subject to putting priorities on some things. Also, subject to
whether we do some of it ourselves, contract it out and'how hungry contractors are.
It looks like $400,00,01,00 is not adequate. Based on UDAG itself, we ought to be pre-
pared to go a little farther. Hoping that we can convince the Council of that, City
Attorney Neie.r has drafted a resolution and Section 2 of that resolution says that in
the event $400,000 pledged by the City is not a sufficient amount for the design, con-
struction and installation of all public utilities necessary, the City of Kalispell
will make available tax increment monies as is necessary to compl.ett the design,
construction and installation of all public utilities necessary for the construction
of Kalispell Center, LTD.
RESOLUTION 4352.47
Councilman Saverud moved to adopt.Resolution #3521.a resolution pledging tax incre-
ment funds of the City of Kalispell for the design, construction and installation of
of all public utilities necessary as aresult of the construction;of the Kalispell
Center, LTD. Seconded by Councilman Nystul.
Councilman Schindler stated that he would like it stated very clearly that all off -
site improvements that are directly related to:.the mall be paid for out of tax incre-
ment. Section.I could be reworded to accurately do this by adding all of the listed
improvements in Section II so that everyone could be assured they would not be charged
for an SID for anything related to the mall.
213.
Councilman Nystul stated he would .like the mording changed to.add "in the Counci"I's
judgement" so that we do not just give blanket coverage. Also, add to tax incre-
ment funds, "any funds available for street reconstruction". There are gas tax
monies and other funds that can be used for street improvements. Building streets
should have access to any funds that any other street reconstruction would:. -have.
Councilman Schindler stated that he dial not think it fair to use gas tax funds to
repair streets connected with the mall project. These funds should be used to re-
construct other streets.
Councilman Nystul stated that Depot Loop is a road that needs to be resurfaced,
whether or not the project goes. It needs to be done now and gas tax is a good
source for -that one, yet it is in the project area.
Councilman Springer asked why.there is no ceiling on the amount. He stated he felt
uncomfortable with no ceiling and no further reference to Council.. City Attonnpy
Neier stated that he did not put a cap on it. The Council should look at the list
of improvements presented by DPW Hammer and decide if there is even more or if there
is less. He could not put a figure in this resolution because no one knows how much
it is going to be. Hammer's estimate is the best thing we have now.
Director Gallagher stated that Item J, under Item III, in the amount of $213,600-00
might not be needed in actual cash. Talking with the Developer, this could be a
credit on the loan., Neier agreed that the right-of-way owned by the railroad would
not be actually purchased by the City. The Developer wants to obtain a credit on the
UDAG loan for that amount. They stated that they did not expect to be compensated
directly by the City. This does not leave out the fact that if this money is not
coming from the Developer or to the City, it is going to cost us $200,000.00 some
place else.
Councilman Saverud stated that if we cut out the $213,600.00 and the $361,000.00 for
Fifth Avenue West,then our actual increase would be $439,000.00. If it would make
everyone more comfortable, we could redesign DPW Hammer's figures to around $800,000.00.
Councilman Springer stated he still feels uncomfortable without a ceiling figure in
the resolution. Councilman Nystul stated that the .language that he would propose -
Section II - starting with line 3 - "The City of Kalispell will make available (delete
the word 'such') tax increment or such money in the judgment of the Council are neces-
sary to complete the design and construction of the public utilities necessary to de-
velop the Kalispell Center, LTD. in an amount not to exceed X dollars." But your cap
in there.
Mayor McDowell asked if they wanted $800;000.00. Neier said he could see no problem
with this figure. Councilman Schindler asked if this would mean that $400,000.00 would
come out of tax increment and the other $400,000.00 would come out of gas tax. Council-
man Nystul replied that it would mean "come out of where ever".
Councilman Saverud asked if the Council would rather use wording that would limit it
to not using General Fund money. We could use the gas increment, gas tax, grants or
any money that was available, anything other than General Fund. Councilman Schindler
stated he could`go along with everything but using gas tax money for this purpose. In-
directly it would be OK but not for any direct use.
Councilman Springer asked City Attorney Neier to spell out as specifically in Section
II as in Section I the uses for this money.
Councilman Nystul stated that the purpose of this resolution is to indicate to the
Developer our intentions and not to make a firm budget commitment of this Council.
Councilman Saverud explained that if there is a difference of $400,000 or $500,000 in
completing the public utilities, then there could be a problem with the remainder of
the financing. It does not become a good business deal for -them to become involved
with.
DPW Hammer stated that it
Fifth Avenue West could be
comes available. it would
Council deemed ;necessary.
be taised, do it in the sa
double it and if that does
their project, then I do n
is hip opinion that the portion of the project involving
done over a 3 year period, using tax increment as it be -
always be associated with the mall and could be used as the
Councilman Springer agreed and added that if the cap has to
me manner we are doing today. Councilman Springer said "Let's
not give them the idea that this Council is in support of
of know what would".
DPW Hammer stated that he thought he could make his budget work with this figure. Some
of the streets may not go in the project and other things may be added, but it should
be close.
Councilman Grainger asked why there is such a hurry on this. It was explained that cer-
tain papers had to be mailed to the Developer by 4:30 P.M. today.
Gallagher explained that when the City first met with the architects and saw the pro-
posed fence, they said what we want is fire protection. The Developer and railroad
agreed to it, so it is something mutually agreed upon. The streets going into that
area are entering railroad property and Railroad Street has never been a dedicated
City street. It is an area that needs to be looked at.
J
214.
Councilman Saverud suggested that if the.work is contracted, the bids might come in at
less than our estimate.
City Attorney Never presented the following change to the proposed resolution:
Section II. In the event the Four Hundred Thousand Dollars ($400,000.00) for the de-
sign, construction and installation of all public utilities, including -but not limited
to -street i.mprovements,.upgrading of sanitary sewer, storm sewer, water improvements,
improvements of traffic circulation, signa.lization and all other public utilities, the
City will make available tax increment monies or such other monies which in the Council's
judgement are necessary to complete the design, construction and installation of all
public utilities., herein designated, necessary as a result of the construction of
Kalispell Center, LTD. up to an amount of something over $800,000.00.
Councilman Saverud stated he would prefer a round figure of $800,000 or $900,000.
DPW Hammer stated that the reason he is interested in keeping it to just tax increment
monies is because our Street Department -could spend the whole summer over there on
Center Street -you could have the Parks Department over there cutting down trees -you
could have the whole City's forces tied up doing this work trying to save money to keep
this figure at $400,000.00. If you can;just use tax increment monies and contract out,
it would free City crews. This is something for you to think about, but if the Council
so directs, no problem. In this year's budget, there are plans to reconstruct 30 blocks
of streets. The estimated costs prepared reflect cost of contracting out. Councilman
Saverud stated that in.-�order to get it done probably would have to he contracted out.
Councilman Springer moved to amend the new wording to say $800,00C.00. Seconded by
Councilman Nystu.l. Motion carried.
Councilman Springer moved to amend the cap to say ".in an amount-nbt'to exceed $800,000.00".
Seconded by 0ounci.lman Saverud. Motion carried.
Question called on resolution vote. Roll call vote. Councilman Schindler voted nay.
All others voted aye. Resolution adopted.
LICENSE & PERMIT BONDS
Ray Crume DBA
Pioneer Plumbing
Plumber
Bond
Councilman Grainger moved that all license and permit bonds reviewed by City Attorney
Neier be accepted. Seconded by Councilman Ny,§tul. Motion carried.
RIGHT-OF-WAY
Councilman Saverud reported that in the. budget HUD approved for the UDAG, they included
$200,000.00 for the Developer to have for off -site improvements. BNRR is contributing
the .land to the partnership and the Developer is carrying it from there. The Developer
came up with the cost of right-of-way question and in disussing it with City Attorney
Neier and DPW Hammer, it would be beneficial to the whole project if instead of donating
this to the City, that they got credit an• their off -site improvements. It does mean
the:Developer will .lose parking space.
Councilman Saverud moved that Mayor McDowell be authorized to write to the Developer,
Goodale & Barbierri and inform them of what we need. Seconded by Councilman Springer.
City Attorney Neier explained that the City needs 12' right-of-way--dddicated to the
City as a street. The Developer feels they are contributing to the City and should
get something for it. They have indicated they would consider credit on the UDAG
agreement.
Question called. Motion carried.
Councilman Grainger moved to adjourn. Seconded by Councilman Springer. Motion
carried.
Minutes approved as presented July,16, 1984.
.00
LeR 1, ayor
I�
ATTEST:
Marjori Giermann, City Clerk -Treasurer
1