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H3. Ritz Bar & Salon CUPKALisPEii. Development Services Department 201 1st Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/plannine REPORT TO: Doug Russell, City Manager FROM: PJ Sorensen, Senior Planner SUBJECT: KCU-21-03 — Ritz Bar & Salon Accessory Casino Conditional Use Permit MEETING DATE: June 21, 2021 BACKGROUND: This matter is a request from Tristelle Vu (The Ritz Bar & Salon) for a conditional use permit to allow an accessory casino within the B-4 (Central Business) zone. The property contains an existing bar and will be adding a nail salon in addition to the proposed accessory casino space. An accessory casino is one that is tied to a primary use, is limited to 20% or less of the floor area, and is shielded from view, both outside and inside the building. The property is located at 110/116 Main Street and can be described as Lots 3 and 4, Block 46, Kalispell Original Townsite, as shown on the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana. The Kalispell Planning Board held a duly noticed public hearing on June 8, 2021, to consider the CUP request. Staff presented staff report KCU-21-03, providing details of the proposal and evaluation. Staff recommended that the Planning Board adopt the staff report as findings of fact and recommend to the Council that the request be granted subject to 6 listed conditions. One written public comment and a petition in opposition to the proposal were received prior to the meeting. Three verbal public comments were submitted at the hearing, in addition to three comments from people on behalf of the applicant. The comments included a mix of support for the proposal and those which generally concerned opposition to additional casinos, particularly in the downtown area. The public hearing was closed, and a motion was presented to adopt staff report KCU-21-03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be granted subject to the 6 conditions. Board discussion concluded that the request was appropriate, and the motion passed 4-2 on roll call vote. RECOMMENDATION: It is recommended that the Kalispell City Council approve a request from Tristelle Vu for Conditional Use Permit KCU-21-03, a conditional use permit for an accessory casino, subject to 6 conditions of approval within the B-4 Zoning District, located at 110/116 Main Street, and more particularly described as Lots 3 and 4, Block 46, Kalispell Original Townsite, as shown on the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana. FISCAL EFFECTS: There are no anticipated fiscal impacts at this time. ALTERNATIVES: Deny the request. ATTACHMENTS: Conditional Use Permit Letter June 8, 2021, Kalispell Planning Board Minutes Staff Report Application Materials and Maps Public Comment Aimee Brunckhorst, Kalispell City Clerk Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 City of Kalispell P. O. Box 1997 Kalispell, Montana 59903-1997 GRANT OF CONDITIONAL USE APPLICANT: Tristelle Vu 332 Main Street Kalispell, MT 59901 LEGAL DESCRIPTION: Lots 3 and 4, Block 46, Kalispell Original Townsite, as shown on the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana ZONE: B-4, Central Business The applicant has applied to the City of Kalispell for a conditional use permit to allow an accessory casino within the B-4 (Central Business) zone. The property contains an existing bar and will be adding a nail salon in addition to the proposed accessory casino space. The Kalispell City Planning Board and Zoning Commission, after due and proper notice, on June 8, 2021, held a public hearing on the application, took public comment and recommended that the application be approved subject to six (6) conditions. After reviewing the application, the record, the Kalispell Planning Department report, and after duly considering the matter, the City Council of the City of Kalispell, pursuant to the Kalispell Zoning Ordinance, hereby adopts Kalispell Planning Department Conditional Use Report #KCU-21-03 as the Council's findings of fact, and issues and grants to the above -described real property a conditional use permit to allow an accessory casino at 110/116 Main Street in the B-4 zoning district, subject to the following conditions: 1. That commencement of the approved activity must begin within 18 months from the date of authorization or that a continuous good faith effort is made to bring the project to completion. 2. That the development of the site shall be in substantial conformance with the submitted application and architectural/site plan drawings. 3. Prior to occupancy, the applicant shall apply for a building permit through the City of Kalispell Building Department to review the proposed addition and improvements. 4. Architectural renderings are required to be submitted to the Kalispell Architectural Review Committee for review and approval prior to issuance of a building permit. 5. The following design elements on the exterior of the building as well as exterior signage are prohibited: (1) any terms such as gaming, gambling, cards, dice, chance, etc; (2) any reference to any associated activity or any symbols or words commonly associated with gaming; (3) any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site; and (4) neon lighting. 6. The property owner shall agree to a zoning lot determination, which shall be recorded prior to commencing the accessory casino use. Dated this 21st day of June, 2021. STATE OF MONTANA ss County of Flathead Mark Johnson Mayor On this day of , 2021 before me, a Notary Public, personally appeared Mark Johnson, Mayor of the City of Kalispell, known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same on behalf of the City of Kalispell. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, State of Montana KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING JUNE 8, 2021 CALL TO ORDER AND ROLL The regular meeting of the Kalispell City Planning Board and Zoning CALL Commission was called to order at 6:00 p.m. Board members present were Doug Kauffman (acting President), Rory Young, Joshua Borgardt, George Giavasis, Kurt Vomfell and Ronalee Skees. Chad Graham was absent. PJ Sorensen, Jarod Nygren and Rachel Ezell represented the Kalispell Planning Department. Keith Haskins represented the Kalispell Public Works Department. APPROVAL OF MINUTES Giavasis moved and Skees seconded a motion to approve the minutes of the April 13, 2021, meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote of acclamation. HEAR THE PUBLIC None. KA-21-02 — PONDEROSA VET A request from Katherine Gates (Mission Impawsible, LLC) for ANNEXATION annexation and initial zoning of B-1 (Neighborhood Business) for property located at 100 Ponderosa Lane (Ponderosa Veterinary Hospital), containing approximately 1.48 acres. The request is based on a desire to connect to city sanitary sewer service. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report #KA-21-02. Staff recommends that the Kalispell Planning Board adopt staff report #KA-21-02 as findings of fact and recommend to the Kalispell City Council that the property be annexed and the zoning for the entire property be city B-I (Neighborhood Business). BOARD DISCUSSION None PUBLIC HEARING None MOTION Vomfell moved and Skees seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt staff report #KA-21-02 as findings of fact and recommend to the Kalispell City Council that the property be annexed and the zoning for the entire property be city B-1 (Neighborhood Business). BOARD DISCUSSION None ROLL CALL Motion passed unanimously on a roll call vote. KCU-21-03 — THE RITZ BAR & File #KCU-21-03 — A request from Tristelle Vu (The Ritz Bar & Salon) SALON CUP for a conditional use permit to allow an accessory casino within the B-4 (Central Business) zone. The property contains an existing bar and will be adding a nail salon in addition to the proposed accessory casino space. The property is located at 110 & 116 Main Street. Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Pagel STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report # KCU-21-03. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21-03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Giavasis asked if the CUP would be tied to the property or just the business. Sorenson explained that any kind of zoning entitlements run with the land as long as what they are doing is consistent with what was approved. Vomfell and Young asked about fagade improvements and signage requirements. Sorenson advised both will be required to go through the architectural review process. PUBLIC HEARING Michael Lawlor — PO Box 728, Missoula — attorney for applicant, offered to answer questions about how the liquor license ties in with the accessory casino. Tim Guenzler — 300 Lee Rd. — Owner of Progressive Gaming, is working with the applicants to set up gaming machines. Offered to answer questions. Melissa Quast — 1520 Us Hwy 2 West — concerned with layout of the business and the machines being in the front of the building and operating hours. Dia Sullivan — PO Box 233, Whitefish — architect for the applicant, explained that the layout they designed works best with the existing layout. Darcy Lard — 500 Main St — downtown business owner — is in favor of the bar and salon. Derek Price — 459 Mountain Vista Way — patron of applicants existing business, Nailtopia, and is in favor of the bar and salon. MOTION Vomfell moved and Young seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21- 03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Givasis is opposed to the CUP being tied to the property and has concerns with the 20% square footage requirement. Vomfell does not feel we need another casino in the city, and it is unfortunate that a liquor license must be tied to gaming to afford it. Young and Borgardt feel it is an appropriate use. Nygren noted that it's a good thing that the liquor license will be staying in the downtown area. ROLL CALL Motion passed 4-2 on a roll call vote. Vomfell and Giavasis are opposed to the conditional use permit. BOARD MEMBER SEATED Kauffman recused himself and asked Young to chair because he is a representative for Layne Massie (Edge, LLC). KCU-21-04 — EDGE A request from Layne Massie (Edge, LLC) for a conditional use permit APARTMENTS CUP to allow a multi -family residential development for property located at Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Page 12 2015 & 2105 Third Avenue East, containing approximately 2.04 acres. The development (Third Avenue East Apartments) would include 48 residential units, parking, and recreational amenities. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report # KCU-21-04. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21-04 and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Vomfell asked about Condition # 16 and the why the number of units may need to be reduced. Sorenson advised that since the B-2 zone does not have density limits changes may need to be made based on design requirements like parking, trash enclosures, storm drainage, etc. PUBLIC HEARING Carol Thill — 2141 3,d Ave E — Owner of Lucky Dog Day Camp to the south of the subject property. She has concerns with how close the apartments will be to her business and that it may cause problems, barking, smell, etc. with tenants in the future if there is not enough buffer. MOTION Vomfell moved and Giavasis seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21- 04 and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Board discussed concerns with south property line regarding dog day camp and agreed that the property owner will be responsible and do what they need to do to mitigate future issues. ROLL CALL Motion passed unanimously on a roll call vote. BOARD MEMBER RE -SEATED Kauffman re -seated and took over as chair. KCU-21-05 — J&S AUTOMOTIV L A request from Jason Sharp for a conditional use permit to allow an auto REPAIR CUP repair business within the B-3 (Core Area Business) zone. The property contains an existing building that was previously used for fleet vehicle maintenance and equipment storage for an internet service company. The property is located at 710 West Montana Street. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report # KCU-21-05. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21-05 and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Board discussed proposed screening, how the required sidewalk would fit and asked for clarification from staff as to why they are requiring the sidewalk if the use prior to this requested use was the same. Staff advised because of the zone change from B-5 to B-3 there are design guidelines now whereas the previous tenant was grandfathered in. Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Page13 PUBLIC HEARING Butch Clark — 500 Siblerud Lane — owner of property — is concerned with the required sidewalk because of cost and losing some existing trees. Jason Sharp — 480 Tronstad Rd — applicant requesting CUP — spoke to type of repair business he runs and that it's a small slower paced type of repair shop. MOTION Vomfell moved and Skees seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KCU-21- 05 and recommend to the Kalispell City Council that the conditional use permit be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Board discussed good use for structure but expressed concerns with disproportionate costs of the sidewalk and requiring the applicant to have power poles moved. ROLL CALL Motion passed unanimously on a roll call vote. KPP-21-03 — WESTVIEW File #KPP-21-03 — A request from Owl Corporation for major ESTATES PHASES 6 & 7 preliminary plat approval for Westview Estates Phases 6 and 7. The PRELIMINARY PLAT property is located within an R-3 (Residential) zoning district, with a total of 34 single-family lots on approximately 15.98 acres of land including the lots, streets, a park area, and other common area. The property is located to the east of Stillwater Road and to the north of Westview Estates Phase 2. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Report # KPP-21-03. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KPP-21-03 and recommend to the Kalispell City Council that the preliminary plat for Westview Estates Phases 6 & 7 be approved subject to the condition listed in the staff report. BOARD DISCUSSION Board discussed number of accesses from new phases and approval from fire department as well as how the block length is calculated in relation to cul-de-sac. PUBLIC HEARING Eric Mulcahy — 2 Village Loop — representative for applicant — noted they are happy with the conditions of the staff report and offered to answer any questions. Kit Clark — 147 Taelor Rd — concerned with additional traffic, was hoping for an additional access on Stillwater Rd. Valerie Mitchell —187 Taelor Rd — concerned with additional traffic. Mark Eney —191 Taelor Rd — concerned with additional traffic. MOTION Vomfell moved and Giavasis seconded a motion that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KPP-21-03 and recommend to the Kalispell City Council that the preliminary plat for Westview Estates Phases 6 & 7 be approved subject to the condition listed in the staff report. Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Page 14 BOARD DISCUSSION Giavasis noted he is not a fan of the cul-de-sac and Borgardt asked about doing future phase road improvements now to alleviate traffic concerns. Staff noted that the traffic impact study did not indicate there would be too much additional traffic with the design as is. ROLL CALL Motion passed unanimously on a roll call vote. KPUD-21-01 & KPP-21-02 — Files #KPUD-21-01 and KPP-21-02 — A request from Bison Hill, LLC MOUNTAIN VIEW PUD AND for the Mountain View Planned Unit Development ("PUD"), which is a PRELIMINARY PLAT Residential PUD overlay on approximately 139 acres of land abutting the north side of Foys Lake Road to the west of the Highway 93 Bypass, along with major preliminary plat approval for Phase 1 of the development. The property was previously annexed with a PUD overlay called Willow Creek, which has since expired. This proposal is for a new PUD by a different applicant. The PUD calls for a total of 407 dwelling units (225 single family lots, 16 cottage lots and 166 townhome lots) along with approximately 49.1 acres of open space and park area. The Phase 1 preliminary plat consists of approximately 21.2 acres with 94 lots (5 single family lots and 89 townhome lots), streets and open space. STAFF REPORT PJ Sorensen representing the Kalispell Planning Department reviewed Staff Reports #KPUD-21-01 & #KPP-21-02. Sorenson noted that the applicant has some concerns with some of the conditions and would like to further discuss these conditions with staff and Public Works and therefore would like to have this tabled to a future meeting. He advised the board that we should proceed with discussion and public comment. Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Reports #KPUD-21-01 & #KPP-21-02 and recommend to the Kalispell City Council that the PUD and the preliminary plat be approved subject to the conditions listed in the staff report. BOARD DISCUSSION Board discussed west access, the traffic impact study and if it will trigger access to Hwy 2 and the water pressure issues that need to be addressed with Public Works. PUBLIC HEARING Mike Brodie — 431 1st Ave W — representative for applicant — confirmed that the applicant does wish to table for further discussion with staff and Public Works. Francis Flanigan — 849 Foys Lake Rd — agrees with the subdivision and likes the existing layout. Melissa Quast — 1520 US Hwy 2 West — concerned that only 2 accesses for 400 homes are not sufficient and how those accesses will be mitigated. She is also concerned with the number of deviations. MOTION — PUD & Vomfell moved and Borgardt seconded a motion that the Kalispell City PRELIMINARY PLAT Planning Board and Zoning Commission adopt Staff Reports #KPUD- (ORGINAL) 21-01 and #KPP-21-02 and recommend to the Kalispell City Council that the PUD and preliminary plat for Mountain View be approved Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Page 15 subject to the conditions listed in the staff report. BOARD DISCUSSION Board discussed the fact that both applicant and staff have asked for a table to further discuss the project. They like the project but are concerned with there only being 2 accesses. MOTION — PRELIMINARY PLAT & PUD (TABLE) Vomfell moved to table and Skees seconded a motion that the Kalispell City Planning Board and Zoning Commission table Staff Reports #KPUD-21-01 & KPP-21-02 to the July 13, 2021 meeting. ROLL CALL Motion tabled unanimously on a roll call vote. OLD BUSINESS Nygren updated the board on the Kalispell Parkline. NEW BUSINESS Nygren updated the board on the July 13, 2021 planning board meeting. ADJOURNMENT The meeting adjourned at approximately 9:05pm. Chad Graham President APPROVED as submitted/amended: Kari Barnhart Recording Secretary Kalispell City Planning Board Minutes of the meeting of June 8, 2021 Page 16 THE RITZ BAR & SALON REQUEST FOR A CONDITIONAL USE PERNHT KALISPELL PLANNING DEPARTMENT STAFF REPORT #KCU-21-03 JUNE 2, 2021 This is a report to the Kalispell City Planning Board and Kalispell City Council regarding a request for a conditional use permit for an accessory casino within the B-4 (Central Business) zone. A public hearing on this matter has been scheduled before the Planning Board for June 8, 2021, beginning at 6:00 PM, in the Kalispell City Council Chambers. The Planning Board will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION This application is a request from Tristelle Vu (The Ritz Bar & Salon) for a conditional use permit to allow an accessory casino within the B-4 (Central Business) zone. The property contains an existing bar and will be adding a nail salon in addition to the proposed accessory casino space. An accessory casino is one that is tied to a primary use, is limited to 20% or less of the floor area, and is shielded from view, both outside and inside the building. A: Applicant: Tristelle Vu 332 Main St Kalispell, MT 59901 B: Location: The property is located at 110/116 Main Street and can be described as Lots 3 and 4, Block 46, Kalispell Original Townsite, as shown on the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana. C: Existing Land Use and Zoning: The subject property contains an existing bar, including a recent restaurant that has been closed. The B-4 zoning provides "a business district intended to set apart that portion of the city which forms the center for financial, commercial, governmental, professional and cultural activities. This district is not intended for general application throughout the planning area. This zoning district would typically be found in areas designated as commercial on the Kalispell Growth Policy Future Land Use Map." Kalispell Zoning Exhibit - May 13th, 2021 NOM 110-116 Main St B-3 R6�- ICE l f ,sY � Subject Pro erty P f -_ sKp SY ti�m - m a 1 B-4 i x � Nei Drhaod Business ` Residential 3R ResidentiaWrnfessional Office `~ -M Central Bus . - Residential Apartment - Residential.4partrnenUOfr- - General Business Core Area Buenas Residential P. blio Dave: Mec 9th, 2C21 Kalispell Planning Dept FIIePalh: J1202IWC.02021 KALISPELL u t� Feet D. Size: The subject property is approximately 7000 square feet. E: Adjacent Zoning: North: B-4 East: B-4 South: B-4 West: B-4 F: Adjacent Land Uses: North: Retail, office, restaurant, general commercial East: Retail, office, restaurant, general commercial South: Retail, office, restaurant, general commercial West: Retail, office, restaurant, general commercial G: General Land Use Character: The subject property is located in the core downtown area in historic downtown Kalispell. It is in the middle of the commercial core of the city with a mix of retail, office, restaurant and other commercial uses. H: Relation to the Growth Policy: The City of Kalispell Growth Policy Plan -It 2035, Chapter 4B, Land Use -Business and Industry, encourages the development and growth of commercial and FA industrial districts with a viable mix of businesses and suitable infrastructure. The Downtown Plan, which was adopted as a supplemental amendment to the Growth Policy, includes a vision where "Downtown Kalispell will be a vibrant place to live, work, shop, dine and visit amongst beautiful historic buildings and landscaped streets." In order to reach that goal, a part of the strategy is to allow for the redevelopment of existing buildings as well as accommodating new development while protecting downtown's heritage, all of which helps create a thriving economy with a mix of retail, food, office, art, housing and entertainment. L• Utilities/Services: Sewer: City of Kalispell Water: City of Kalispell Refuse: City of Kalispell Electricity: Flathead Electric Cooperative Gas: NorthWestern Energy Telephone: CenturyTel Schools: School District 95, Elrod Elementary/Flathead High School Fire: City of Kalispell Police: City of Kalispell 3 EVALUATION OF THE REOUEST This application has been reviewed in accordance with the conditional use review criteria in the Kalispell Zoning Ordinance. A conditional use permit may be granted only if the proposal, as submitted, conforms to all of the following general conditional use permit criteria, as well as to all other applicable criteria that may be requested. The proposed building elevation and floorplan are shown below. EA�7J M&YA719111 oalalw+i nnec� . �s Elm IftI r, 5Ml K--ADk ARCmn=MRAL RMW, — Subl—AL AND ReYiM PERMIT SUll 2 J 1 "t O w — .r' 4 In the B-4 zone, gaming is only allowed in an accessory casino that meets standards set forth in Section 27.34.040 of the Kalispell Zoning Ordinance. A use is accessory if it is clearly incidental to and customarily used in connection with the primary use, and is located on the same property. In this case, the casino is accessory to the existing bar/restaurant area and would function with both the bar and proposed nail salon. While the two halves of the property are technically separate lots, the two lots (Lots 3 and 4, each of which are 25 feet wide — standard width for a lot in the downtown) can be bound together with a zoning lot determination. That document treats the two lots as a single parcel for zoning purposes, provided that the lots cannot be sold separately without bringing it into conformance. The zoning determination is recorded and becomes part of the chain of title. Furthermore, a casino is only considered accessory to a primary use if the primary use and its associated facilities constitutes at least 80% of the proposed floor space and the casino constitutes no more than 20% of the proposed use. The proposed casino area is approximately 807 square feet, or about 12% of the overall main floor area. In addition, an accessory casino needs to be shielded or screened from view of the primary use and patrons. The proposed floorplan shows the casino as separated from the other areas in the building by two doors. It can be accessed through a new lounge area to be built in the front of the building or through an existing hallway running alongside the kitchen. The layout serves to keep the casino separated from the rest of the building and removed from the entry onto the sidewalk. The lounge area also helps limit the number and location of entrances into the casino, which is a design standard provided for in the ordinance. 1. Site Suitability: Adequate Useable Space: The subject property is approximately 7000 square feet and is completely developed with an existing building constructed in 1928 which covers the entire property. The proposed use would be located within the existing space. b. Height, bulk and location of the building: The building is existing and no additions are planned. There are no issues relating to height, bulk or location of the building in terms of setbacks, lot coverage, or other property development standards under B-4 zoning. Adequate Access: The property fronts on Main Street. There is no on -site parking, and none is required under the zoning ordinance. There are pedestrian entrances off of the sidewalk along Main Street as well as from the alley. The entrances off of the alley are directly across from a city surface parking lot. There is adequate access for the proposed use. d. Environmental Constraints: There are no known environmental constraints, such as steep slopes, streams, floodplains, or wetlands on the property, which could affect the proposed use. 2. Appropriate Design: Parking Scheme/Loading Areas: The site contains no parking areas on -site, which is common in the downtown core, and none are required under the zoning ordinance. There is a public parking lot across the alley as well as on -street parking available. b. Lighting_ Chapter 27.26 of the Kalispell Zoning Ordinance sets standards for all outdoor lighting on commercial or residential structures. Any exterior lighting installed in conjunction with the development will be reviewed for compliance with the zoning ordinance during site development review and prior to building permit issuance. C. Traffic Circulation: There is no on -site parking and therefore no traffic circulation. d. Open Space: There are no open space requirements associated with the property and, as is typical in the downtown, the existing building is built from property line to property line without open space available. Fencin Screenin andscaping: With the existing building being on the property line, there is no place or need for screening and none should be required. It should be noted that the interior layout of the casino/lounge area is intended to provide a separation of the gaming use from the public way. The placement of the lounge ensures that the casino is not visible through the windows along Main Street. f. Sig_nage: The development shall comply with all of the sign standards as set forth in Chapter 27.22 of the Kalispell Zoning Ordinance. Additionally, under the conditional use permit section relating to casinos (Section 27.34.040), design standards as appropriate may be placed on an accessory casino limiting or prohibiting the on -premise signage or building from using the following (1) any terms such as gaming, gambling, cards, dice, chance, etc; (2) any reference to any associated activity or any symbols or words commonly associated with gaming; (3) any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site; and (4) neon lighting. Given its location in the historic downtown area, conditions relating to these design standards are appropriate and the listed items should be prohibited in order to appropriately fit within the historic character of the surrounding properties. 3. Availability of Public Services/Facilities: Police: Police protection will be provided by the Kalispell Police Department. No unusual impacts or needs are anticipated from the project. b. Fire Protection: Fire protection will be provided by the Kalispell Fire Department. Station 61 is approximately 3 blocks from the subject property, giving good response time. The remodel will be constructed subject to a building permit, ensuring that the addition will meet building and fire code standards. C. Water: City water is available and currently serves the property. No changes are anticipated in conjunction with this project. d. Sewer: Sewer service is also available and currently serves the property. No changes are anticipated in conjunction with this project. Storm Water Drainage: Storm drainage is currently provided with roof drains that would feed into the adjacent city stormwater system. No additional impervious area will be added in conjunction with this proposal. f. Solid Waste: Solid waste pick-up will be provided by the City. g. Streets: The property fronts on Main Street (Highway 93). No improvements to the street are required to support the use as all necessary street improvements are already in place. h. Sidewalks: There is an existing sidewalk along the full frontage of the property and no additional improvements are required. Schools: This site is within the boundaries of School District 95. There would not be an impact on schools. Parks and Recreation: No parkland or recreational amenities are required. 4. Neighborhood impacts: a. Traffic: There is minimal impact on traffic in connection with the proposed use. The use would not create increased traffic beyond the historical use of the property. b. Noise and Vibration: The accessory casino will not create additional noise and vibration beyond the historical use of the property. C. Dust, Glare, and Heat: The accessory casino would not generate any unreasonable dust, glare, and heat beyond the building. The gaming operations would generally not create those impacts. d. Smoke, Fumes, Gas, or Odors: The accessory casino will not create additional smoke, fumes, gas and odors. Fumes related to the nail salon, which is not part of this conditional use permit, will be addressed through building and fire codes. Hours of Operation: It is anticipated that the accessory casino will be open from 11:00 AM until 11:00 pm. 5. Consideration of historical use patterns and recent changes: The property is located in the original core commercial area of the city. Throughout the history of Kalispell, this area has seen a mix of retail, office, restaurants, and other commercial uses, including bars and similar uses. The general uses in the area have not changed and no changes are anticipated in the land use pattern. 6. Effects on property values: No significant impacts on property values are anticipated as a result of the requested conditional use for the accessory casino. RECOMMENDATION The staff recommends that the Kalispell Planning Board adopt staff report #KCU-21-03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the following conditions: CONDITIONS OF APPROVAL That commencement of the approved activity must begin within 18 months from the date of authorization or that a continuous good faith effort is made to bring the project to completion. 2. That the development of the site shall be in substantial conformance with the submitted application and architectural/site plan drawings. 3. Prior to occupancy, the applicant shall apply for a building permit through the City of Kalispell Building Department to review the proposed addition and improvements. 4. Architectural renderings are required to be submitted to the Kalispell Architectural Review Committee for review and approval prior to issuance of a building permit. 5. The following design elements on the exterior of the building as well as exterior signage are prohibited: (1) any terms such as gaming, gambling, cards, dice, chance, etc; (2) any reference to any associated activity or any symbols or words commonly associated with gaming; (3) any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site; and (4) neon lighting. 6. The property owner shall agree to a zoning lot determination, which shall be recorded prior to commencing the accessory casino use. Development Services crr3r �F Department Kalispell, MT 59901 1K,A11,11SPE1L11, 201 1st Avenue East Phone (406) 758-7940 CONDITIONAL USE PERMIT Email: planning(a�kalispell.com Website: www.kalispell.com Project Name The Ritz Bar & Salon Property Address 110 & 116 Main Street NAME OF APPLICANT Tristelle Vu Applicant Phone 406-890-9909 Applicant Address 332 Main Street City, State, Zip Kalispell, MT 59901 Applicant Email Address trishvu@gmail.com If not current owner, please attach a letter from the current owner authorizing the applicant to proceed with the application. OWNER OF RECORD C.M. Clark Owner Phone 406-261-0027 Owner Address 500 Siblerud Lane City, State, Zip Kalispell, MT 59901 Owner Email Address email address unknown - see attached authorization letter CONSULTANT (ARCH ITECTIENGINEER) Dia Sullivan, Architect Phone 406-250-1016 Address PO Box 233 City, State, Zip Whitefish, MT 59937 Email Address dsa@cyberport.net POINT OF CONTACT FOR REVIEW COMMENTS Dia Sullivan, Architect Phone 406-250-1016 Address PO Box 233 City, State, Zip Whitefish, MT 59937 Email Address dsa@cyberport.net List ALL owners (any individual or other entity with an ownership interest in the property): C.M. Clark Legal Description (please provide a full legal description for the property and attach a copy of the most recent deed): KAL, SOT T28 N, R21 W, BLOCK 046, Lot 003 KAL, SOT T28 N, R21 W, BLOCK 046, Lot 004 Please initial here indicating that you have verified the description with the Flathead County Clerk and Recorder and that the description provided is in a form acceptable to record at their office. Development Services ci i r car Department KALISPELL Phone 1st Avenue East Kalispell, MT 59901 Phone (406) 758-7940 1. Zoning District and Zoning Classification in which use is propsed: B4, Central Business 2. Attach a site plan of the affected lot which identifies the following items: a. Vicinity map and surrounding land uses b. Dimensions and shape of lot c. Topographic features of lot d. Size(s) and location(s) of existing buildings e. Size(s) and location(s) of proposed buildings f. Existing use(s) of structures and open areas g. Proposed use(s) of structures and open areas h. Existing and proposed landscaping, screening, fencing, open space & signage i. Exisiting and proposed parking, loading, lighting & traffic circulation j. Exisiting and proposed garbage collection, streets & utilities k. Floodplain if applicable I. Adjacent sidewalks & bike trails 3. Attach Building Elevations - (drawing of any proposed building and/or addition showing views from north, south, east and west ) 4. On a separate sheet of paper, discuss the following topics relative to the proposed use (please elaborate beyond referencing materials listed above): a. Traffic flow and control b. Access to and circulation within the property c. Off-street parking and loading d. Refuse/garbage collection and service areas e. Utilities (water, sewer, electric, etc.) f. Screening and buffering g. Signs, yards and other opens spaces h. Height, bulk and location of structures i. Location of proposed open space uses j. Hours and manner of operation k. Noise, light, dust, odors, fumes, vibration, glare and heat I. Storm drainage m. Fire/Police 5. Attach supplemental information for proposed uses that have additional requirements (consult Planner) I hereby certify under penalty of perjury and the laws of the State of Montana that the information submitted herein, on all other submitted forms, documents, plans or any other information submitted as a part of this application, to be true, complete, and accurate to the best of my knowledge. Should any information or representation submitted in connection with this application be incorrect or untrue, I understand that any approval based thereon may be rescinded, and other appropriate action taken. The signing of this application signifies approval for the Kalispell City staff to be present on the property for routine monitoring and inspection during the approval and development process. 4-28-21 Applicant Signature Date Dia Sullivan, Architect (agent for applicant) Development Services Department 201 114CALISPELL hone ( Avenue East Kalispell, MT 59901 Phone406)758-7940 APPLICATION PROCESS (application must be received and accepted by the Kalispell Planning Department 35 days prior to the Planning Board Hearing) A pre -application meeting with a member of the planning staff is required. Application Contents: 1. Completed application form & attachments 2. A bona fide legal description of the subject property and a map showing the location and boundaries of the property. *Note - verify with the Flathead County Clerk & Recorder that the legal description submitted is accurate and recordable. They can be reached at (406) 758-5526. 3. Electronic copy of the application materials submitted. Either copied onto a disk or emailed to planning@kalispell.com (Please note the maximum file size to email is 20MB) 4. Application fee based on the schedule below, made payable to the City of Kalispell: Single Family (10 or fewer trips per day) $250 Minor Residential (2-4 units or 11-49 trips per day) $300 + $25/unit or every 10 trips Major Residential (5 or more units or 50+ trips per day) $350 + $50/unit or every 10 trips Churches, schools, public/ quasi -pubic uses $350 Commercial, industrial, $400 + $50/acre medical, golf courses, etc or unit or $.05/sf of leased space over 5,000 scl ft whichever is greater HUNG ALTE AT0ONS FOR BAD & NAI SALON 0 110 VMAM STREET, KAUSPELL, MT CODE 4N4LY&16: - - BUILDING CODE ANALYSIS - ALTERATIONS rw tsar nzv ue zt -_ - Foz BAR -d Nail Salon 110 MAIN STREET vvsvaxsoev oiasuurvax. nxcxirtcr r.ew,ow.e. ` a c . .z�renui-,so.L s.cua.ewx.x 4 cwml°.e. r°wl °.awm wawawm.w 9v°O�,om °oo we ryWwpwww lwlacrr ew zweoz.x�.Pil wevinnv°nrx zawi�xw ' P=g `- EVOI, rw�..ewmnm..maw w•erya. 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I ---------- ------ - ___- ------ -- ---- _— _ ---,..............................................,........ ----........................................... -- --- .................. ........................................----............................................--- e i Elk nk ado n EXISTING FACADE DETAILS TO REMAIN GND BE CLEANED GND RESTORED Q _ — O w��s ovom.res..re Pwsn as; ..e; as ,.�aewr�eu.ow i - T Ell Z mw fw �n Z O � J II LI - S A L E S A L.E ® o I RESTORA- RESTORATION 01-TION6 vhcEo �zxr c�sazus oc a.,s; e.ccK TION U -DETAILS- ARCHITECTURAL REVIEW, CUP SUBMITTAL AND REVISED PERMIT SUBMITTAL EZ711 4,w 29 Am�A Am" TVA f1r.*9 IINCY -200 I'k—FT V Irv- IH N3- 4, CIRO g5po ve 41 'o o _AJ — F'k t VIC C', C Ty T WHEN RECORDED MAIL TO: Glacier Bank Kalispell Office 202 Main Street PO Box 27 Kalispell, MT 59903-0027 RECORDATION REQUESTED BY: Glacier Bank Kalispell Office 202 Main Street PO Box 27 Kalispell, MT 59903-0027 IIIIII7III�IIIII�IAI{Ill�flll?IIi IIIA IY��II�I41il.11lllll llll�i�llllllllllYlll Pape°1or 1127 1 77.00 Paula Robinson, Flathead County MT by A 10/30/201 3:36 PM SEND TAX NOTICES TO: Glacier Recorded by Fidelity National Title Kalispelll Office O 202 Main Street PO Box 27 r� FHT (90 a2 Kalispell, MT 59903-0027 FOR RECORDER'S USE ONLY DEED OF TRUST MAXIMUM LIEN. The total principal indebtedness that may be outstanding at any given time which is secured by this Deed of Trust is $1,988,000.00. THIS DEED OF TRUST is dated October 30, 2012, among C. M. CLARK, whose address is 500 SIBLERUD LANE, KALISPELL, MT 59901-7884 ("Grantor"): Glacier Bank, whose address is Kalispell Office, 202 Main Street, PO Box 27, Kalispell, MT 59903-0027 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"); and FIDELITY TITLE CO., whose address is 130 1ST AVENUE WEST, KALISPELL, MT 59901 (referred to below as "Trustee"). CONVEYANCE AND GRANT. For valuable consideration, Grantor conveys to Trustee for the benefit of Lender as Beneficiary all of Grantor's right, title, and interest in and to the following described real property, together with all exist ng or subsequently erected or affixed buildings, improvements and fixtures: all easements. rights of way, and appurtenances: all water, water rights and ditch rights (including stock in utilities with ditch or irrigation rights): and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in FLATHEAD County, State of Montana: Lots 1, 2, 3 and 4 of Block 46 of Kalispell. Montana, according to the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana. The Real Property or its address is commonly known as 100, 110 AND 116 S. MAIN ST., KALISPELL, MT 59901. Grantor presently assigns to Lender {also known as Beneficiary in this Deed of Trust) all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. in addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. The following provisions relate to the use of the Property or to other limitations on the Property. The Real Property does not exceed forty (40) acres, and this instrument is a Trust Indenture executed in conformity with the Small Tract Financing Act of Montana. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform IVN11111NIiINgN111uIgqIqN11111uNINqIqIllNllqqIIINIIIINllqlqllla 11,12 0015727 10/30/x61x 3:3s VM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 2 all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and 12) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property, A "sale or transfer" means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than III�IIIIIIIIIVINIIpII'NllillIIIlNMAIN 11IRNIN1111111111111 f„s 003717 10/30/201R 3.38 PM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 3 three (3) years, lease -option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Montana law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due ail claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen 051 days after the lien arises of, if a lien is filed, within fifteen (15) days after Grantor has not.ce of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. 1n any contest, Grantor shall defend itse'f and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shal. name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials and the cost exceeds $500.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $500.00. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. if Lender elects to apply the INIIPIIIq IIIJill Jill INNINII0IIIAINnNIIUIgIIINIII1111111iIIIIIIN� Page.4ofIL Fur. 77 00 10/30/201 3 38 PM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 4 proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance show ng: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or If Grantor falls to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: Proceedings. If any proceeding in condemnation is filed. Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. IIIp1NIIIRIIV�p�Iplli�II1IIdIp�fpNfpolpllu1101111lull 11111if Pige:501,27 Feet: $77.0o 10/30/2012 3:38 PM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 5 Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, lees and charges are a part of this Dead of Trust: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of Trust. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. in addition to recording this Deed of Trust in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY•IN-FACT. The following provisions relating to further assurances and attorney -in -fact are a part of this Deed of Trust: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor, Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection w th the matters referred to in this paragraph. Attorney -in -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph IgIIgIIIIIIqIII�IIIfIIqqlqllqlllllliqlllqlllq�luqlqllNllllql�llla Page:6oflr27 Fees. $77.00 10/30/2012 3:30 PH DEED OF TRUST Loan No: 0170175000580 (Continued) Page 6 Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney -in -fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Any reconveyance fee required by law shall be paid by Grantor, if permitted by applicable law. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents. Oefault on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Environmental Default. Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental agreement executed in connection with the Property. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit. security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or Grantor's ability to perform Grantor's obligations under this Deed of Trust or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter, Defective Collaterafi:ation. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. fN�IVIIIVII�fu�IIlNI�IlI�d11I�IN�IVI+IMIIIR�II�bI MIIIINlIB1llI�II 201200 Page: 7of t121 Fees: 77.00 10/30/2012 3 38 PM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 7 Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default In payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Dead of Trust within the preceding twelve 112) months, it may be cured it Grantor, after Lender sends written notice to Grantor demanding cure of such default: (1) cures the default within fifteen (151 days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies: Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment pena;ty which Grantor would be required to pay. Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor to take possession of and manage the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. in furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney -in -fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (t) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or available at law or in equity. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshalled. In exercising its rights and remedies, the Trustee or lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of �IIIII�lI1N1l�Ia lll��� I�fl� �I��I1luiVIIINd�gll'��flllgll�llif u Page. 02SY21 10/30 /]Olt 3 3e PM � DEED OF TRUST Loan No: 0170175000580 (Continued) Page 8 this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at tria' and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in r Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, E paralegal fees, and expenses for bankruptcy proceedings (including efforts to modify or vacate any r automatic stay or injunction), appeals, and any anticipated post -judgment collection services, the j cost of searching records, obtaining title reports lincluding foreclosure reports), surveyors' reports, i and a P Y ) appraisal fees, title insurance, and fees for the Trustee, to the extent permitted b applicable licable law. Grantor also will pay any court costs, in addition to all other sums provided by law. Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this section. POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust: Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a) join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b) join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. Obligations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or lien, or of any action or proceeding in which Grantor. Lender, or Trustee shall be a party, unless the action or proceeding is brought by Trustee. Trustee. Trustee shall meet all qualifications required for Trustee under applicable law. In addition to the rights and remed:es set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor Trustee to any Trustee appointed under this Deed of Trust by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of FLATHEAD County, State of Montana. The instrument shall contain, in addition to all other matters required by state law, the names of the original Lender, Trustee, and Grantor, the book and page where this Deed of Trust is recorded, and the name and address of the successor trustee, and the instrument shall be executed and acknowledged by Lender or its successors in interest. The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law. This procedure for substitution of Trustee shall govern to the exclusion of all other provisions for substitution. NOTICES. Any notice required to be given under this Deed of Trust, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. All copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall I�NIu11I7�I�M �ii�ill�ui�ll�tila4l�u��Q�lifl�IbflIg1AN UB Fpage 9 of 11 e! 177.00�7 10130/2013.38 PM DEED OF TRUST Loan No: 0170175000580 (COntinuedl Page 9 furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. Merger. There sha;l be no merger of the interest or estate created by this Deed of Trust with any other interest or estate irk the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and, to the extent not preempted by federal law. the laws of the State of Montana without regard to Its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State of Montana. Choice of Venue. It there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Flathead County. State of Montana. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of Trust unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or constitute a waver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of dealing between Lender and Grantorr shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Deed of Trust, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. if the offending provision cannot be so modified, it shall be considered deleted from this Deed of Trust. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality, validity or enforceability of any other provision of this Deed of Trust. Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Deed of Trust. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Montana as to all Indebtedness secured by this Deed of Trust. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code: Beneficiary. The word "Beneficiary" means Glacier Bank, and its successors and assigns. Borrower. The word "Borrower" means C. M. CLARK and includes all co-signers and co -makers signing the Note and all their successors and assigns. Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and security interest provisions relating to the Personal Property and Rents. This Deed of Trust is intended to be a trust indenture as provided for in the Sma I Tract Financing Act of Montana. Default. The word "Default" means the Default set forth in this Deed of Trust in the section titled 1fINlII1fIf1Vf11lIII�'K11111�I��I�I�V N!l�11111i�BIIf1�11�1UfI�iNp Page: loaf 11 1j 201200025127 I 1p/30%$p 1,1 3�39 pM � DEED OF TRUST Loan No: 0170175000580 1Continued) Page 10 "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. ("CERCLA"1, the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Deed of Trust in the events of default section of this Deed of Trust. Grantor. The word "Grantor" means C. M. CLARK. Guaranty. The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction an the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee or Lender to enforce Grantor's obligations under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust. Lender. The word 'Lender" means Glacier Bank, its successors and assigns. Note. The word "Note" means the promissory note dated October 30, 2012, in the original principal amount of $1,988,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Deed of Trust. Related Documents. The words "Related Documents" mean all promissory notes, Credit agreements, loan agreements, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness; except that the words do not mean any guaranty or environmental agreement, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. Trustee. The word "Trustee" means FIDELITY TITLE CO., whose address is 130 1ST AVENUE WEST, KALISPELL, MT 59901 and any substitute or successor trustees. !Alll81III I niNllli611llifIINIUMlnNI1NIU1 0101111111 nl Nln1llll!nH 201200025727 e11 f 17 Pp; o1 Fen. $17.00 10/30/ 2012 3:30 PM DEED OF TRUST Loan No: 0170175000580 (Continued) Page 11 GRANTOR ACKNOWLE�S HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES-W-IT TERMS. X - \.-, y C. M. CLARK INDIVIDUAL ACKNOWLEDGMENT STATE OF _ Ay,O do j. I _ / ) SS COUNTY OF r41 &I I This instrument was acknowledged before me on - 0, 4 Ut, 30 20_/a by C. M. CLARK. *Eti Va "IC'IAFL I UNGt:*LD v NJTAHYPUBLIC Iorthe 2 t, I$1a;2 of P!on:ana * SEAL" �_, �;,sr:e'sI,Montana 2r15 [Type or Print Name] Notary Public for the State of Montana Residing at My commission expires _ REQUEST FOR FULL RECONVEYANCE (To be used only when obligations have been paid in full) To: , Trustee The undersigned is the legal owner and holder of all Indebtedness secured by this Deed of Trust. Ali sums secured by this Deed of Trust have been fully paid and satisfied. You are hereby directed, upon payment to you of any sums owing to you under the terms of this Deed of Trust or pursuant to any applicable statute, to cancel the Note secured by this Deed of Trust (which is delivered to you together w,th this Deed of Trust), and to reconvey, without warranty, to the parties designated by the terms of this Deed of Trust, the estate now held by you under this Deed of Trust. Please mail the reconveyance and Related Documents to: Date: _ _ Beneficiary: By: Its: LASER PRO Lending, Ver, 12.3.0.004 Copr. Harland Financial Solutions, Inc. 1997, 2012. All Rights Reserved. - MT L:ICFIILPL1GO1.FC TR-50256 PR-23 C.M. CLARK 500 Siblerud Lane Kalispell, MT 59901 April 26, 2021 To Whom It May Concern, As owner of lots 3 and 4, block 46, City of Kalispell, aka KB Bar and Casino, 110 and 116 S. Main St., Kalispell MT. please use this letter as authorization for Tristelle Vu to proceed with her CUP Application to add the casino as an accessory to the business. Please feel free to call me if you need additional information. Sinc ely,,/ C.M. Clark 406-261-0027 DIA SULLIVAN ARCHITECT, PLLC April 28, 2021 To: Development Services Department 201 1st Avenue East Kalispell, MT 59901 Re: CUP Application and Submittal for Architectural Review The Ritz Bar and Salon 110 & 116 Main Street Kalispell, MT 59901 Description of Request: Purpose of the request for a Conditional Use Permit is to allow a casino as an accessory permitted use in the B4 zone, per Section 27.34.040. "The casino is considered accessory to the primary use, (the Bar and Salon), and the primary use and its associated facilities constitute at least 80% of the proposed floor space and casino." See drawing sheet A2.1 showing accessory casino to be 12% and the primary use to be 88%. Attachments: CUP Application Copy of Authorization Letter from current owner. Copy of Deed of Trust *List of Drawings: (shall apply to both CUP and Architectural Review) A1.0 — Cover Sheet, Code Analysis, General Notes, Details A2.0 — Alteration and Demolition Plan A2.1 — Life Safety / Work Area Plan A3.0 — Exterior Elevation — Facade Restoration A3.1 — Exterior Restoration Details *Please note that this set should be also resubmitted to the Building Department as a revised set to the previous Permit Submittal made on March 30, 2021. P.O. Box 233 WHITEFISH, MONTANA 59937 406-250-1016 DSA@CYBERPORT.NET The Ritz — CUP/ARC/Permit 4-28-21 Page 2 of 3 Supplemental Information — CUP application: 1. Zoning is B4, Central Business 2. Site Plan —not applicable as a drawing for this project. Following is informational: a. These are two downtown lots that will be aggregated as part of the sale. b. Each lot is rectangular, 25'x100'. c. There are no topographic features. d. Building is 50'x100' and is at zero lot line. Built in 1928 as two building with shared masonry wall at center lot line, the line to be abandoned. e. No proposed new buildings. f. Existing use is a bar and restaurant. No open areas. g. Proposed use is a bar, nail salon and accessory casino. No open space. h. Not applicable. Parking located on Main Street to east and across alley to west is a City parking lot. Existing loading, lighting (existing streetlight is in front of building) and traffic circulation will remain the same with access from sidewalk off Main Street. Delivery loading from alley to remain accessible. No proposed changes. Existing garbage collection is off alley. Street access off Main to front and off alley from 1st and 2nd Streets West will remain. No proposed changes. Utilities serving existing building will remain. No proposed changes. k. Not applicable. 1. Adjacent sidewalk is in front of the building. City proposed bike trails will be 2 blocks away as part of the Core Area Trail Plan. 3. See drawing sheet A3.0 for east elevation facade restoration. No changes to other building elevation. 4. Discussion: a. Existing traffic flow on Main Street will not be affected by this project. b. Access will be off the front sidewalk at Main Street and off the alley at rear building exits. c. No off-street parking or loading required in this Zone. d. Existing refuse and garbage collection from container in alley will remain the same. e. Existing utilities will remain in place and continue to service the building. f. The accessory casino will be screened from the public sidewalk with an interior wall that blocks the casino activity from any view through the windows along Main Street. g. There will be no signage on the exterior of the building indicating there is a casino within the building. The Ritz — CUP/ARC/Permit 4-28-21 Page 3 of 3 h. The height, bulk and location of the building will remain the same. However, as part of this submittal, the facade of the building is proposed to be restored back to an historic reference of the original with modifications to suit the present use. Details will be historically appropriate and based on the draft Kalispell Design Guidelines — Downtown Historic District Overlay. The building is listed as a "contributing" building on the National Register of Historic Places as part of the Main Street Historic District. The building's historic name is the Halliday-Boysen Block and was constructed in 1928. i. Not applicable. j. Hours of operation for the casino will be 11:00 AM to 11:00 PM. The casino machines will be leased through a route operator and daily operation will be managed and supervised by the building owner and/or house manager. k. There will be no noise, light, dust, odors, fumes, vibration, glare or heat generate by the activities in the casino. Any sounds would not extend beyond the area of the casino and would not dissipate to the exterior of the building. 1. The building is served presently by the existing city storm drain. That will not change. m. Fire and police facilities are located within 3 city blocks of the subject building. - Kalispell Growth Policy Exhibit - May 13th, 2021 NORTH 110-116 Main St Subject Property Commercial T4 �G Neighborhood Commercial m Industrial Z Urban Mixed Use Public High Density Residential RS1 Urban Residential E CEN1 Suburban Residential City Airport -Gov. Public/Quasi Public, Openspace - Floodway � r �SW Subject' &F___A Prop NINE- i m Com o � 1 �G ercial r r 51 W 51 S1 E ovk t" Date: Mar. 9th, 2021 CTTTOF-7-00400411F Kalispell Planning Dept. FilePath: J\2021\03092021 KALISPELL ° 150 300 Feet W CEN1E JA Kalispell Zoning Exhibit - May 13th, 2021 NORTH 110-116 Main St B-3 W CENSER ST E ST 1ST S�/ Subject Pro erty / G m �N B 4 G m v Subject Property Neighborhood Business ' Residential 3RD� Residential/Professional Office Central Business Residential Apartment - Residential Apartment/Office - General Business Core Area Business 4V" SW Residential Public Date: Mar. 9th, 2021 CTT\OF Kalispell Planning Dept. FilePath: J\2021\03092021 KALISPELL ° ,50 3°° Feet o•,� � _ ,,ma�yy na .R.' ti -- It_..- Ake th VV8,L4I{ MAIN = b Y w - Kalispell Growth Policy Exhibit - May 13th, 2021 NORTH 110-116 Main St Subject Property Commercial T4 �G Neighborhood Commercial m Industrial Z Urban Mixed Use Public High Density Residential RS1 Urban Residential E CEN1 Suburban Residential City Airport -Gov. Public/Quasi Public, Openspace - Floodway � r �SW Subject' &F___A Prop NINE- i m Com o � 1 �G ercial r r 51 W 51 S1 E ovk t" Date: Mar. 9th, 2021 CTTTOF-7-00400411F Kalispell Planning Dept. FilePath: J\2021\03092021 KALISPELL ° 150 300 Feet W CEN1E JA Kalispell Zoning Exhibit - May 13th, 2021 NORTH 110-116 Main St B-3 W CENSER ST E ST 1ST S�/ Subject Pro erty / G m �N B 4 G m v Subject Property Neighborhood Business ' Residential 3RD� Residential/Professional Office Central Business Residential Apartment - Residential Apartment/Office - General Business Core Area Business 4V" SW Residential Public Date: Mar. 9th, 2021 CTT\OF Kalispell Planning Dept. FilePath: J\2021\03092021 KALISPELL ° ,50 3°° Feet o•,� � _ ,,ma�yy na .R.' ti -- It_..- Ake th VV8,L4I{ MAIN = b Y w ±: is oil 11 _,�� Kalispell Grand Hotel, LLC Iconic Properties, LLC June 6, 2021 Attn: Mayor Johnson Via Email Kalispell City Council RE: Opposition to Casino License for the Kalispell Bar on Main Street, Kalispell Dear Mayor and Members of the City Council, In September, my wife and I purchased the Kalispell Grand Hotel and its historic building through our companies Kalispell Grand Hotel, LLC and Iconic Properties, LLC. We made a significant investment for our family in Kalispell because we have come to love the community and because we understand the importance of this property to the people of Kalispell and to the future of Kalispell as a tourist destination. Since our purchase of the hotel, we have spent a lot of time in Kalispell. My wife, Noelle, has joined the TBID board as Treasurer and we have made an effort to get to know as many of our fellow business owners as possible in the Downtown Historic District. We are excited about the potential of our town and the Flathead region, but are very concerned about the possibility of the Kalispell Bar operating a casino on Main Street. Kalispell is at an inflection point. The strategic plan and the execution of this plan by the City, Discover Kalispell, and the Downtown Association was an important driver of our investment in Kalispell. The efforts of these organizations have been successful in the promotion of Kalispell as a tourist destination and in attracting significant investment like ours into the historic downtown. In its historic downtown, Kalispell has something that sets it apart from other cities in Montana to attract visitors ---an unspoiled historic Western commercial center. Our actions today will determine whether Kalispell continues on its path forward or is diverted from the goal, which could result in years of lost time and millions of dollars in wasted investment and opportunity. Many towns in America have lost their historic character through unplanned and unsupervised development. We do not want Kalispell to become one of them. Kalispell must choose to continue to pursue its strategic plan for the historic downtown, and to promote unique Montana businesses, restaurants, bars, galleries, shops, hotels --- differentiators that will set Kalispell on a path to become more than just a commercial center for the Flathead region, but a destination in its own right. With our airport, historic center, hospitals, and central location convenient to the parks, the lake, rivers, Whitefish, Bigfork, and surrounding communities and attractions, Kalispell has many advantages, and a bright future if it stays true to the careful strategy that it has pursued for years. In the alternative, Kalispell can allow development such as casinos and similar businesses on Main Street that are not on point with its strategy. Once allowed, businesses are very difficult to move. Businesses that not only do not attract tourists and visitors, but repel them, will delay or eliminate our opportunity to make Kalispell what it could be. It is for this reason that we oppose the issuance of a casino license to the new owners of the Kalispell Bar, which is our next -door neighbor. We do not make this decision lightly. We share a wall with our new neighbors, and want them to be successful. However, we believe that granting a casino license to the Kalispell Bar property will not only imperil our business, but will imperil the strategy for the downtown historic district and with it, the success of all downtown businesses. There is no need for an additional casino in Kalispell, which has no shortage of casinos. Indeed, there is already a casino almost directly across the alley, less than thirty yards from the Kalispell Bar property. The existing casino behind the Kalispell Bar already attracts patrons who spill out in the alley behind the Kalispell Grand Hotel and other businesses on Main Street, yelling, fighting, and causing disturbances for our guests in the late evenings and early morning hours. Additional loud and disruptive activities from a casino on Main Street will negatively impact our business, all other businesses in the vicinity, and will put the guiding strategy of the downtown plan in jeopardy. For these reasons, we oppose the potential casino license. Please vote against the issuance of a casino license to the Kalispell Bar property on Main Street. Regards, ��44� 11� John H. Barr, Jr. Managing Member, Kalispell Grand Hotel, LLC Managing Member, Iconic Properties, LLC Kalispell City Mayor and Councilors: The attached Petition is requesting denial of the conditional use permit casino permit at 116 So. Main St. the petition was circulated to the shop owners and land owners of the 100 block of Main on June 5th. Please consider this request, and deny the casino application. Thank You PETITION: Denying Request For Casino # 110 and # 116 Main Street Kalispell, Montana In the interest of public safety and well-being, we, the undersigned, agree that File # KCU-21-03, be denied. This file is a request for a conditional use permit, allowing an accessory casino within the B4 (Central Business) zone. This property is located at 110/116 Main Street, in Kalispell, Montana. We are in agreement that only family -friendly, positive options for the Flathead Valley Families and Tourists be considered. 'PRINTED NAME SIGNATURE A ■LRofP , � H � r _ r � I All, ._.��il . ��•� 11_ _, . • 4. e u 0. s I t li WR r PETITION: Denying Request For Casino # 110 and # 116 Main Street Kalispell, Montana In the interest of public safety and well-being, we, the undersigned, agree that File # KCU-21-03, be denied. This file is a request for a conditional use permit, allowing an accessory casino within the B4 (Central Business) zone. This property is located at 110/116 Main Street, in Kalispell, Montana. We are in agreement that only family -friendly, positive options for the Flathead Valley Families and Tourists be considered. PRINTED NAME SIG TURF ADDRESS D TE Jo kIt bXPV1 l D ✓' ,,A 416 LR 1 e U Mo /VQAL a 371 oa -- i�I�L rrt �ld 4-4 - 7- L 11Mjk4 d WwEr 1 Ai L_ISHED 1-tr _ r Z oti