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H6. 3rd and Main Proposal RecommendationCITY 7tial� KALISPELL Report To: Doug Russell, City Manager Development Services 201 1 st Avenue East - Kalispell, Montana 5991 Phone (406) 758-7940 From: Jarod Nygren, Development Services Director Subject: 3rd & Main Proposal Recommendation Meeting Date: September 7, 2021 BACKGROUND: On December 4, 2017, the Kalispell City Council adopted The Downtown Plan as an amendment to the City of Kalispell Growth Policy Plan -It 2035 by Resolution No. 5846. The Downtown Plan addresses a number of key topics that affect the future growth and development of Downtown Kalispell. The Downtown Plan specifically addresses the need to re- develop City owned surface parking lots into more beneficial uses to eliminate blight and increase tax base. In coordination with the Urban Renewal Agency, Business Improvement District, Revolving Loan Fund Committee, Architectural Review Committee and the Kalispell Parking Commission, staff drafted, and Council approved the 3rd and Main Request for Proposals (RFP). The RFP was advertised beginning in December 2020 with proposals due July 9, 2021. A Selection Committee was assembled with a representative from each of the groups listed above. One proposal identified as "The Charles Hotel" was received and reviewed by the Selection Committee according to the RFP criteria. The Charles Hotel is proposed as a five story 79-unit boutique hotel with a full -service restaurant, rooftop bar and valet parking service at 3rd and Main. A parking garage is proposed to address parking needs of the development. The parking garage is proposed for location at the City's Eagle's parking lot located at the southeast corner of First Street West and First Avenue West. The Selection Committee held an interview with the developer on August 1 lth. Subsequently the Committee voted unanimously to recommend The Charles Hotel development for City Council to negotiate a Developer's Agreement detailing roles and responsibilities of all parties. If the Council chooses to move forward with the proposal, the Selection Committee noted the following areas yet to be addressed: • Third party market/feasibility study of proposed development; • Public communication plan to keep community up to date on proj ect's community benefits, progress, timelines, etc.; • Development of parking structure plan with Developer's Agreement; • Contact with developer references. RECOMMENDATION: It is recommended that Council make a motion to direct staff to negotiate with Montana Hotel Dev Partners, LLC on The Charles Hotel proposal for the 3rd and Main development to be detailed in a Developer's Agreement. FISCAL EFFECTS: No fiscal effects at this time. ALTERNATIVES: Do not proceed with negotiations for The Charles Hotel development proposal for the 3rd & Main site. ATTACHMENTS: The Charles Hotel proposal with parking update M4- J,'4- 07/09/21 oib- 3RD ST WEST & MAIN ST DEVELOPMENT PROPOSAL 71, c(a bond pa rtners COMPASS TABLE OF CONTENTS 1. GENERAL INFORMATION 01 2. CONCEPT TO DEVELOP THE SITE 09 3. QUALIFICATIONS, EXPERIENCE, & FINANCIALS 27 4. BUSINESS PLAN 31 5. LEVEL OF RETURN & BENEFIT TO THE CITY 33 GENERAL INFORMATION ii � Rr ^�y�.. '� 'YTS'. 71-�� . •�f� : -. _ -. � ` _ _ `�.�,.- - .._ Ar �w'� 14 r + CHARLES HOTEL F�- i�,- li . 1A COVER LETTER RE: REQUEST FOR PROPOSALS FOR THE PRIVATE DEVELOPMENT OF THE CITY OWNED 3RD & MAIN LOT 07/09/2021 Attn: City Clerk 201 1st Ave E Kalispell, MT 59901 MONTANA HOTEL DEV PARTNERS, LLC 208 1st Ave E Kalispell, MT59901 CONTACT Bill Goldberg EMAIL bill@compassmt.net Thank you for the opportunity to review and submit a proposal to the city of Kalispell to develop the lot located at 3rd Street West and Main Street. Herein is a comprehensive vision for the development as well as private financing, project construction, and operations and management details. Compass Construction, Bond Partners, and Alchemy have joined forces as Montana Hotel Dev Partners, LLC. Together, our combined knowledge and experience will produce an exemplary product for the city and Flathead Valley communities. Our proposal is the collective result of multifaceted visionaries who are excited to participate in the redevelopment of the Kalispell downtown area. We have spent hours casting the vision, fine-tuning details, and preparing this proposal. We are pleased to present a proposal backed with our intricate knowledge of the hospitality industry, real estate development, and construction management. We value and are fully committed to assisting the city in achieving its mission to promote economic growth, improve area employment opportunities, and expand its tax base. Thank you for your thoughtful consideration. Should you need any clarifications, please do not hesitate to reach out to us. Sincerely, Montana Hotel Dev Partners, LLC ROBERT WATSON BILL GOLDBERG R JOHN COSTA Partner Partner Partner GENERAL INFORMATION 1 NORTHWEST MONTANA HISTORICAL SOCIETY Buffalo Block, Kalispell PETDIN5O � �';UDS Eox< c " a: �A rm- •r r ,! 1: 'K1E,15 f Ire AL r 4k e�, i ^ 4F.. yy � _ •r n ` i17 EXECUTIVE SUMMARY Montana Hotel Dev Partners, LLC, comprises many years of experience in construction, development, and hospitality management. Together with local lead Bill Goldberg of Compass Construction, our regional presence and familiarity is enhanced by national knowledge and experience. We worked alongside Montana -based firm A&E Design, leveraging their skills and talent in architecture, interior design, branding, and environmental graphics to craft a vision for this project. We feel the resulting proposed development best suits the needs of downtown Kalispell and its market. This property shares an important touchstone with the founder of Kalispell. Charles Conrad and his herd of bison (the namesake of "Buffalo Hill" on many local places) have specific relevance to the site. Mr. Conrad owned Conrad National With respect to the history of this site, our proposed project is comprised of three primary elements. The main component of our proposal focuses on the development of an 86,000-square- foot boutique hotel on the property at the northwest corner of 3rd Street West and Main Street. Amenities on the building's first floor and portions of the second engage both the public and hotel guests. A three -meal restaurant, bar, lounge, retail pads, and conference space will appeal to both audiences. We envision a total transformation of this site from a quiet surface parking lot to a busy Main Street attraction. The second component of the project is a parking structure to accommodate increased parking demand. We propose to construct this on what is currently the city -owned Eagles lot Bank where the south wing of Glacier Bank stands at the intersection of 1st Avenue West and 1st today. His daughter Alice used the proceeds from the sale of her father's herd to construct the building that previously occupied this lot. The original mixed -use Buffalo Block building stood handsomely in 1910 before becoming a grocery store. Later, it became Hillstead Department Store, with predominately medical offices on the floor above. Sadly, the historic building was destroyed by a fire in September of 1976. Street West. The proposed structure is sized to accommodate displaced city -leased parking for both lots in addition to the hotel and restaurant parking demands. With attention to good urban design principles, we also propose additional retail or restaurant space on the street -facing main floor of this structure. GENERAL INFORMATION 3 The final component of our proposal is a collection of support office spaces. These spaces will house staff that can support hotel operations off site. This will likely be a tenant improvement project within an existing building near the hotel site. We worked with Northwest Montana History Museum to resurface historic photos of the original Buffalo Block building. We referenced design cues from the precedent building's form, openings, mass, and structural rhythm of the fagade, but chose not to replicate them. Rather, we reimagined these distinctive characteristics to support the historic context while designing a concept reflective of the current era. Naming the building the Buffalo Block while branding the hotel as The Charles Hotel honors the site's rich history and brings the project full circle. Our team shares enthusiasm for the future of Kalispell. That excitement resonated so significantly with our investor group that they have already committed capital for the entire project. We are eager to see the results of the vision seeded approximately a decade ago in the city. As the work on projects like the Kalispell Bypass, Parkline Trail, Glacier Rail Park, Downtown Plan, and TIF Districts materialize, we are inspired to invest our time, money, expertise, and ideas. The Charles Hotel at the Buffalo Block advances the city's and region's positive trajectory by attracting people to this area. Having already secured a liquor license, we see our restaurant and bar creating additional dining and social options downtown. Hotel guests support extended hours for downtown business and activities. As a result, the money they spend in restaurants, bars, and retail will benefit the local economy. The people employed by our local firms know that Kalispell is a special place. These stakeholders have long been invested in downtown and visualizing redevelopment opportunities. The downtown plan, Kalispell Urban Renewal Plan, and Kalispell Growth Policy have been adopted and continue to be implemented every day. Traffic and parking studies support the vision and reinforce functionality of an urban core in an otherwise rural corner of Montana. The city center sees new businesses coming to market while gaining walkability, placemaking, and population density —all positive economic drivers. We have detailed opportunities within our plan to host local artists and makers in our building. Not only will these creatives provide an authentic experience for our guests, but they will also enjoy a growing market share and regional recognition. From the hotel check -in environment to our dining experience, we intend to curate a feel that is authentic to the Flathead Valley while establishing an environment of casual sophistication. Through our restaurant and bar, we plan to support local farms and ranches as well as businesses that produce desserts and spirits. These strategies further support the local economy and reflect the place we love. From plated meals to an iconic corner building, we hope to enhance the qualities that already make Kalispell great. Our team is inspired and motivated by the upcoming redevelopment of the core area and what that means for downtown. We envision more TIF revenue, better parking in the downtown TIF, and ultimately more synergy within the district. Preserving the past while infusing forward -thinking elements creates a place we can continue to love and enjoy; one that stays true to its history while taking advantage of present and future potential. Our plan shares a pathway to that vision, becoming a reality in the third quarter of 2023. Thank you for this incredible opportunity to partner with the city of Kalispell to propel the region toward a bright future ahead. 4 THE CHARLES HOTEL 1C u CITY OF Kalispell Development Services Department V & Main Development RFP Attachment A AFFIDAVIT Assurances The undersigned proposer hereby submits to the City of Kalispell (City) the enclosed proposal based upon all terms and conditions set forth in the City's Request for Proposals (RFP) and referenced materials. Proposer further specifically agrees hereby to provide services in the manner set forth in the proposal submitted by the proposer. The undersigned proposer acknowledges and states, under penalty of perjury, as follows: 1. The City is relying on proposer's submitted information and the representation that proposer has the capability to successfully undertake and complete the responsibilities and obligations submitted in its proposal and in the resulting agreement. 2. The City has the right to make any further inquiry it deems appropriate to substantiate or supplement information supplied by proposer. 3. Proposer has read and fully understands all the provisions and conditions set forth in the RFP documents, upon which its proposal is based. 4. The forms and information requested in the RFP are complete and made part of theproposal. The City is not responsible for any proposer errors or omissions. 5. This proposal may be withdrawn by requesting such withdrawal in writing at any time prior to the proposal deadline but may not be withdrawn after such date and time. 6. The City reserves the right to reject any and all proposals and to accept the proposal that, in its judgment, will provide the best quality development to the City. 7. This proposal is valid for a minimum of 120 days after the RFP proposal submission deadline. 8. All costs incurred by proposer in connection with this proposal shall be borne solely by proposer. Under no circumstances shall the City be responsible for any costs associated with proposer's proposal or the RFP process. 9. Proposer has not in any manner, directly or indirectly, conspired with any person or party to unfairly compete or compromise the competitive nature of the RFP process. 10. The contents of this proposal have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business prior to the official opening of this proposal. 11. To the best of the proposer's knowledge, the information provided in its proposal is true and correct and neither the undersigned proposer nor any partner, corporate officer or managing employee have ever been convicted of a felony or a crime involving moral turpitude. GENERAL INFORMATION 5 CITY OF Kalispell Development Services Department V & Main Development RFP Legal Status 1. Proposer intends to operate the business as (check one): Corporation* () Non -Profit 501(c)(3) ( ) Government Entity () Partnership* ( ) Limited Liability Corporation* (x) Sole Proprietorship ( ) Other (Please describe: ) ( ) Identify the members, if LLC, partners, if a partnership, or officers, if a corporation, of the proposer (add lines as needed). Members: Bill Goldberg, John Costa, Robert Watson For the purpose of this RFP, addenda and exhibits, any questions regarding the principals are referring to the officers, partners and members as disclosed. 2. In the past 10 years, have you personally, or any business with which you have been involved, been declared bankrupt, filed a petition in any bankruptcy court, filed for protection from creditors in bankruptcy court, or had involuntary proceedings filed in bankruptcy court? If "Yes," provide date, court jurisdiction, case name, case number, amount of liabilities, amount of assets and the status of each occurrence. Yes ( ) No ( x ) 3. Has the proposer or any of its principals or its principal's affiliates been declared to be in default under any obligation to or contract with the City? If "Yes," please provide details concerning the nature of the default, including the City contract number. Yes ( ) No( x ) 4. Are there any pending liens, claims or litigation in excess of $500,000 involving proposer, or any corporation or other entity that has, directly or indirectly, a controlling interest in the proposer, or any subsidiary of the proposer or other entity in which the proposer has a controlling interest or any of the proposer's principals, officers, or directors? If "Yes,"provide detailed information regarding complaints. Yes ( ) No ( x ) 5. Has the proposer, or any corporation or other entity that has, directly or indirectly, a controlling interest in the proposer, or any subsidiary of the proposer or other entity in which the proposer has a controlling interest or any of the proposer's principals, officers, ordirectors, been involved in any lawsuits in the past 10 years? If "Yes," provide list. Yes( ) No (x ) 6. Has the proposer's or any of its principals or its principals' affiliate's contracts been terminated prior to their expiration terms, voluntarily or involuntarily, within the last 10 years?If "Yes," provide name, location, and date of the contract(s). Yes ( ) No ( x ) 7. Has the proposer, or any corporation or other entity that has, directly or indirectly, a 6 THE CHARLES HOTEL CITY OF Kalispell Development Services Department 3rd & Main Development RFP controlling interest in the proposer, or any subsidiary of the proposer or other entity in which the proposer has a controlling interest or any of the proposer's principals, officers, ordirectors ever been barred from bidding on federal, state, or local government contracts? If "Yes," provide the current status of such suspension or debarment proceedings. Yes( ) No References Proposer shall furnish the names and contact information for 3 clients for whom the proposer is furnishing or has furnished services similar to those described in this RFP. Do not list City of Kalispell employees or officials as references. 1. Company and Reference Name: Telephone and E-Mail: Multiple Companies, John Hagg 702-540-1001 hagg.john@icloud.com 2. Company and Reference Name: Telephone and E-Mail: MKay Enterprises, Steven Kay 415-254-1201 sk@stevenkay.com 3. Company and Reference Name: Telephone and E-Mail: Rim Rock Development, Micah Linton 386-867-1403 micah@rimrockcompanies.com Signature(s) Billy Goldberg Proposer's Legal Name': 'The proposer must be authorized to transact business in Montana and be in good standing prior to submitting this proposal. Printed Name of Authorized Representative*: Billy Goldberg Title: Member Business Mailing Address: 208 1st Ave E, Kalispell, MT 59901 Telephone Address: 406-253-0544 bill@compassmt.net Signature: Proposal m be signed by an Name of Joint Venture Partner (if a Printed Name of Authorized Representative* Title: to contractually bind the proposer. Business Mailing Address: Telephone and Email Address: Signature: *Proposal must be signed by an individual authorized to contractually bind the joint venture partner. NOTARIZED Signed and sworn bef a me this - day c r Notary Signature; My Commission Expires: H 2-02- 111 k) e_ 20.E 1 u Affix Seal: 0SEAL AMY L MCGE%EE NOTARY PU 9 L1C to r the Slote of montaoa Residing at Columtia Falls, Ll awa My Commission E:PireS Fe mazy 14, 2024 GENERAL INFORMATION 7 CITY OF Kalispell Community & Economic Development Department 3rd & Main DEVELOPMENT RFP Attachment B DEVELOPMENT DETAILS Name of proposer: Montana Hotel Dev Partners, LLC Each proposer must complete and submit this form with its proposal. • Gross Square Footage (SF): 86,100 gross SF • Commercial SF: 14,054 SF retail and restaurant • Office SF: 2,860 SF • Residential SF: N/A • Other SF (detail): 42,852 SF hotel rooms, 26,334 space and SF other (see program) Number of Residential Units: N/A Number of Units by Residential Type: o Rental Units: o For Sale Units: Number of Units by Market Type: o Affordable: o Workforce: o Market Rate: • Number of Hotel Rooms: 79 • Number of Parking Spaces: 95 hotel + 58 public + 12 shared (165 total) • Number of Buildings: (1) one on subject property + (1) one parking structure on nearby property • Building Height(s) (feet and stories): 5 stories + basement 1 58'-10" abv grade • Estimated Number of Construction Jobs: 600 • Estimated Number of Permanent Jobs: 135 FTE • Estimated Value of Project: $47M hotel total project cost / $34M construction cost 8 THE CHARLES HOTEL w E=4 co� INE04 E=4 w ao wa U W z� ow UA CONCEPT TO DEVELOP THE SITE R CHARLES HO TEL� 16 IM H A R L NARRATIVE THE CHARLES HOTEL AT THE BUFFALO BLOCK The new 86,000-square-foot hotel at the corner of 3rd Street West and Main Street will engage area visitors and locals alike, bolstering the downtown Kalispell restaurant and entertainment scene. This property has high visibility, attracting passersby both on foot and driving through the area. Guests will receive truly generous service, rooted in the philosophy of saying "yes." Our philosophy is reflected from within; we are internally committed to providing a fun and supportive work environment for staff. Their satisfaction translates to personal, welcoming touches extending through the boutique hotel to its world -class restaurant and business event center. Our passion for downtown Kalispell is real and we want to be a part of it. We feel strongly that a successful project on this property is one which incorporates regionally appropriate and historically relevant materials within the Main Street Historic District. Additionally, attention to scale, rhythm, and the fabric of downtown is critical to being authentic to the site in its redevelopment. By translating our passion to this project, we know future guests will want to visit and see all that downtown Kalispell and the Flathead Valley have to offer. BRAND STATEMENT Storytelling is a critical component of the plan for The Charles Hotel development. In every corner, we emphasize the property's historic attributes and infuse it with contemporary craftsmanship. By sourcing regional materials and curating collections from local artisans, we will tell Kalispell's story while writing the pages of a new one. This highly stylized boutique hotel is designed to be both casual and sophisticated, luxurious yet approachable. We will maintain downtown's hallmark rustic characteristics, ensuring the space is reminiscent of Montana and the western lifestyle. By enhancing its authentic environment with outstanding amenities and unrivaled service, our development will elevate the modern hospitality experience. FOOD & BEVERAGE Unlike other hotel groups that outsource food and beverage programs to celebrity chefs and restaurateurs, we remain committed to developing strong community partners. By operating a standalone, three -meal restaurant, our independent operations will attract outstanding culinary talent inspired by local culture and products. This approach elevates the level of hospitality service and amenities in the region, resulting in a unique and authentic hotel brand. Our team has already secured a liquor license for use in the bar and restaurant, lounge, and potential rooftop patio. The Charles Hotel will be operated by an entity owned and controlled by BOND Partners. The partners have 50-plus years managing properties with Four Seasons Hotels and Resorts, Kimpton Hotels and Restaurants, W Hotels, and Auberge Resorts. u CONCEPT TO DEVELOP THE SITE 9 With hotel security personnel already on staff, we plan to assist the city of Kalispell in the effort to monitor the parking structure's security. Using CCTV cameras and routine patrol, we will ensure that our guests and all parking structure users are safe within the facilities and while traveling between the hotel and parking structure. PARKING The paradox of parking is widely recognized and debated in downtown Kalispell. Some feel there is not enough parking available, and there is an expectation to be able to park adjacent to downtown destinations. The downtown plan highlights 18 acres of parking in this core district. The downtown TIF is starved for fund generation through renewal and redevelopment of surface parking to achieve greater densities, placemaking, and good urban design. Initially, the design team reflected on the requirement of the RFP to provide parking for the proposed building users per the Kalispell Zoning Ordinance, which exempts the requirement of providing any off-street parking in the downtown core. Several early parking concepts were explored site parking strategy; one that ideally included developing a parking structure on a nearby site that is currently being used as surface parking. Potential neighboring sites that met the criteria for an off -site parking structure were both privately and publicly owned property. Possible locations included the private surface parking lot south of the KM Building; the private Valley Bank surface parking lot south of 3rd Street West; a combination of privately held Valley Bank & Glacier Bank surface parking lots along 1st Avenue West; the city owned Eagles lot at 1st Street West and 1st Avenue West; and the private First Interstate Bank surface parking lot at West Center Street and 1st Avenue West. Assessment of these properties concluded that few were appropriately sized for an efficient parking structure. Some options were complicated by their ownership. Other sites were nicely sized and proportioned but located outside of the downtown TIF district. In the end, the city owned Eagles lot proved to be the most likely candidate to support such development. In designing a parking solution for this proposal, we reviewed the hotel's uses per the letter of the Minimum Parking Standards by Use as outlined at the surface. These options ranged from in the Kalispell Zoning Ordinance. Our design providing no off-street parking to limiting the size of the building. We considered a single level of parking below grade, which amounted to a meek, two-story building on the subject property. That concept would be limited to office and retail due to the parking requirements of dining establishments and housing. Other iterations included mixing construction types and proportions on the subject property. We geared the front portion toward the public and human scale, while the rear site lent itself to parking and navigating vehicles. These poor and underwhelming solutions pointed to an off - team determined that the hotel would require 171 parking stalls. We also quantified the combined existing surface parking stalls at both the Eagles lot and Valley Bank lot, identifying 105. We then began determining the actual utilization of both the required hotel parking and city owned lots. A significant piece of the hotel requirement was dedicated to parking employees and potential conference -goers. Desiring not to overbuild the parking structure, the developer has committed to leasing local surface spaces for hotel employees and making valet accommodations at other existing surface parking on private lots in the event of large conferences. 10 THE CHARLES HOTEL With regard to the city owned lots, we reviewed the 2015 parking study. Applying an average peak utilization rate to the two public lots, we determined that their actual use is a combined 70 stalls. Our team also considered the shared use of parking between downtown businesspeople and hotel guests. From 8 am-5 pm weekdays, downtown professionals typically lease spaces in the public lots. Since nights and weekends are dominated by hotel guests, we desired to convey an efficient parking scheme by sharing parking between the symbiotic user groups. This strategy would further reduce the total parking counts of the targeted parking structure design. Considering that the hotel has factored valet parking and security monitoring into the operational pro forma, the strategy appears achievable. Our team engaged the city Planning Department to comment on the logic behind this parking scheme. We received feedback that while the utilization approach is actually a preferred method of determining an entity's parking needs, the shared use approach in our scheme is not without some flaw. Overlapping evening hours between hotel check -in and end -of -business as well as morning hours between beginning of the business day and hotel check-out were potentially problematic. In the end, the 165-stall count that is achieved on this lot by developing a three -level parking structure strikes the right balance for the project. The parking breakdown of the projected 165 stalls includes: 95 dedicated hotel stalls, 58 public stalls for either leasing or hourly parking, and 12 spaces shared between both user groups. At the time of submission of this RFP response, we see the pro forma and construction cost of the hotel at the 3rd and Main site improving the taxable value of the property within the downtown TIF. Our projections show that bonding against the future TIF funds offsets the construction costs of the parking structure in approximately nine years of increased taxable value. Additionally, the development team has engaged Glacier Bank and First Interstate Bank as parties that could potentially commit to additional parking spaces within the structure. We have conducted some informal parking utilization studies of their lots in addition to engaging in initial conversations with their corporate leadership. If either or both banks commit, it would effectively increase the size of the parking structure. Further, those parties would be responsible for their portion of the total construction costs. The prospect of their inclusion in the parking structure is exciting for the community as it begins to paint the future vision of redeveloping their current surface parking, which will only further increase the downtown TIF and the vitality of Kalispell's core district. CONCEPT TO DEVELOP THE SITE 11 BUILDING SITE / ROOF PLAN ■ LANDSCAPE DESIGN Our project team feels strongly about the benefits While our proposed concept is early in design, of trees and landscaping design on a project site. we plan to present to Architectural Review Vegetation helps reduce noise, soften edges, filter Committee, Site Review, and Urban Forestry for light, introduce color, indicate seasonal changes, their comment and feedback. Well before that tie the architecture to its place, and influences the natural ecosystem by introducing small wildlife. Although landscaping provides many benefits, an urban site with zero lot lines provides limited options for introducing vegetation. This makes any opportunity for street trees and other plants that much more important in downtown. time, we will work through the design to ensure we have the appropriate species selection, infrastructure, and other relevant details. We plan to develop those items with the city urban forester or arborist, parks and recreation, street tree commission, public works, and Montana Department of Transportation. We will engage a 12 THE CHARLES HOTEL licensed landscape architect for the development and completion of a landscape design and plan for bid as well as to lead these design conversations. The success of this landscaping project is rooted in details and thoughtful planning. Design must consider maintenance of plant material and the surrounding surfaces; irrigation; size of planters; plant species' resistance to de-icer; and the ability for both street sweeping and leaf and snow removal to commence regularly and easily. Our renderings currently reflect a non -city standard tree well and planter with an integrated bench. These are preliminary design ideas as are the locations shown in the site plan. We will work through maintaining a sight triangle at the u intersection in the final design. Further, continuing traffic light and crossing operations as well as coordinating with city street standard lighting and planting patterns are primary considerations. There is tremendous potential for Main Street in the context of the Kalispell Bypass completion, work on the Parkline Trail, and the various opportunities and ideas shared in the Downtown Plan, Urban Renewal Plan, and recent traffic studies. A more walkable downtown with wider sidewalks allowing dining to spill out of the building will activate the street and extend downtown activity. This plan benefits businesses and the public as Kalispell becomes an even greater destination. Suomi 10 10 EWES 111111 Noun 01 sly■ ■� ■■1■ Emig ■I 411E ■S111111■ 1■ miss MINOR 111111 111111 111 III 111111 11 111 1 ll 1111 1111111 ���� 1111111 1111 �I �EmsumEl1 111 Smmm 11 IN ■ immo 1■■!■ 55110 no Blow l--1■ 0111 1 II �� 1 II I! 1 II 11 III 111 11111 I 111 �I ill 111 11 �� 1 �I 1 it 11 I I �I 11 Il 11 II 11 II 1 11 1 � II 11 11 II II 11 1 II 1 II Il 11 II 11 II 1 11 1 II 11�11 111/111/ 1111 II M It 1 ■l 1 01 NI HOTEL FLOOR PLANS ■ LIVING ROOM ■ RESTAURANT & BAR I GAMING ■ RETAIL ■ EVENT SPACE HOTEL ROOMS 3 a a 0 ■ FITNESS & MASSAGE ■ BACK OF HOUSE CIRCULATION ■ OFF -SITE BACK OF HOUSE EXISTING BUILDING 3RD STREET MAIN FLOOR EXISTING BUILDING 11IIIIIIIIII ROOM I ROOM ol OPEN TO BELOW - SECOND FLOOR - u EXISTING BUILDING THIRD FLOOR EXISTING BUILDING -FOURTH FLOOR - N O CONCEPT TO DEVELOP THE SITE 15 HOTEL FLOOR PLANS EXISTING BUILDING - FIFTH FLOOR - _ BASEMENT _ _ OFF -SITE PROGRAM PROGRAM - 16 THE CHARLES HOTEL PARKING STRUCTURE CONCEPT LEVEL 1 1STST WEST r STAIR Mw cl a z Z a F• a � > LLI 3 w � p• I i 3' e a � Z MEN I� ----------------------- — ADJACENT BUILDING ---------------------------- SURFACE PARKING 2ND ST WEST UPPER LEVELS IA. n 1; ADJACENT BUILDING ----------------------------- SURFACE PARKING L ±257 1 ZONING FORMULA FOR RE(ZD PARKING MIN SIMPLE 142 QUANTITY OF EXISTING CITY STALLS 115 GUEST ROOMS 79 EAGLE LOT 69 O 1 1 CONFERENCE 25 F' 4 OF C of RESTAURANT 20 VALLEY BANK LOT 46 W o a O BAR & CASINO 10 u7 RETAIL 3 u REQUIRED STALLS ±177 3RD & MAIN ± 107 PUBLIC ± 70 PARKING STRUCTURE RETAIL 0 PROVIDED STALLS BASEMENT, LEVEL 1, LEVEL 1.5 ±54 STALLS 6800 SF RETAIL EACH ADDITIONAL LEVEL ±74 STALLS 2.5 LEVELS ± 128 STALLS 3 LEVELS ± 165 STALLS 3.5 LEVELS ± 202 STALLS 4 LEVELS: ± 239 STALLS 4.5 LEVELS: ± 276 STALLS 5 LEVELS: ± 313 STALLS � w O I------ U Z pI a cna 8I ADJACENT BUILDING ±202� AVG DAILY USE GARAGE r2 0 Y N } w w a a N w Z U' OOZ a- � ~ Y way N a a J a 7 * reduction up to 5 % of total stall count permit- ted in exchange for bike parking AUGUST 19 2021 17 MATERIALS & COLOR SAMPLES Historic photos of the original Buffalo Block were consulted for simplified, historically accurate details, such as corbeling, archways, and prismatic glass. The building massing and structural rhythm draws inspiration from the historic structure, while subtle details imply that its architecture is of a current era. The massing has two major divisions: a lower base that pays homage to historic structures, and a modern element stepped back above the datum established by the adjacent historic buildings. The lower element uses historically appropriate brick masonry, while the upper form uses contemporary metal panel. Blackened steel and wood detailing tie the two forms together. This division in massing honors the height of the existing main street buildings while allowing for increased density in a growing urban environment. of the two forms, the lower breaks down into tripartite building form with an open ground floor with large glazed windows, punched openings on the middle floors, and a unique top cornice that creates a simplified interpretation of historic brick details common on Main Street. The fagade creates a historically sensitive rhythm with multiple openings to Main Street and 3rd Street West. These encourage pedestrian interactions with shops, a restaurant and bar, and The Charles Hotel lobby. Multiple canopies also help create a human scale experience from the sidewalk, further contributing to rhythm and building breakdown. The upper mass has recessed balconies and touches the sky with a graceful cap with wood soffits. 18 THE CHARLES HOTEL LOCAL ARTISTS Local artists have a certain bent to the history and culture of a place. Their work reimagines or retells an otherwise lost story about how this place came to be and why it is still cherished. 1 hK CONTEXT The project site sits at the west edge of the Main Street Historic District, which gained most of its architectural and historical importance during a period of significance between 1891 and 1960. The entire block across Main Street consists of buildings contributing to the Main Street Historic District, as do the two directly north of the project site, and the Whipps Block diagonally across the intersection. The Knight & Twining Block, directly to the north of the site, is on the National Historic Registry. We see that paying respect to this building's scale and stature at Main Street is vital even as buildings downtown are designed with more than two stories in mind. CONCEPT TO DEVELOP THE SITE 19 SIGNAGE I i'E FLAN OCHARLES HOTEL BLADE SIGN OCHARLES HOTEL AWNING SIGN OBUFFALO BLOCK WALL SIGN TBUILDING RELIEF DETAILS 3 0 " BUILDING RELIEF DETAILS T 4 TOTAL LOCATIONS 0" 0" 1/4„ 1/4„ + 3/4" 1/4" + 1 /2" 1/4" +1/2" +3/4" 0" 1/4" CROSS CROSS SECTION SECTION DETAIL 20 THE CHARLES HOTEL DRAWING OF SIGNS ALL SIGNAGE DESIGN IS PRELIMINARY AND SUBJECT TO CITY REVIEW FOR CONFORMANCE WITH THE SIGN ORDINANCE BLADE SIGN O TOTAL SQUARE FOOTAGE PER SIDE: 14.5 PLAN ELEVATION ELEVATION ELEVATION VIEW VIEW LEFT VIEW VIEW RIGHT (Yj 7"r19" I THE HOTEL AWNING SIGN O TOTAL SQUARE FOOTAGE: 28.8 21'7" WALL SIGN O TOTAL SQUARE FOOTAGE PER SIDE: 7.7 (2 TOTAL SIGNS) BUFFALO BL 110" u OPAQUE ACRYLIC INTERIOR LED ILLUMINATED ACRYLIC FACES POWDERCOATED BLACK STEEL INSET 1/2" STAND OFFS WHITE POWDERCOATED 2" METAL RETURN INTERIOR LED ILLUMINATED ACRYLIC FACE STEEL MOUNTS O 6. BRUSHED ALUMINUM DIRECT LAG BOLT MOUNTING TO BRICK 1" STAND OFF FROM WALL ,1 CONCEPT TO DEVELOP THE SITE 21 SIGNAGE MATERIALS & COLOR SAMPLES Signage materials are intended to be complimentary to the architecture and fabric of historic downtown Kalispell. We intend them to be thoughtful with refinement and subtlety, yet effective for wayfinding and user interface, through appropriate detailing, material, mounting, lighting, and scale. CA41DICK. BLOCK 22 THE CHARLES HOTEL TIMELINE 202j 2023 CONCEPT TO DEVELOP THE SITE 23 CONSTRUCTION MITIGATION PLAN SITE PLAN 4 S SIDEWALK NOTIFICATION SIGN VEHICULAR NOTIFICATION SIGN POTENTIAL STAGING AREA & CONTRACTOR PARKING CONSTRUCTION FENCING / GATE LBASEMENT EVACUATION "//// LOADING ZONE /X MAINTAIN PEDESTRIAN CROSSING MMAINTAIN TRAFFIC SIGNAL TEMPORARY LOSS OF PARALLEL PARKING MAINTAIN SERVICE ACCESS ,IR 01►r1.1r — Building in urban areas often involves construction challenges impacting city infrastructure and patterns of the public. Compass Construction understands potential pitfalls and is experienced with addressing them in sites like the 3rd Street West and Main Street lot. We have a long success record working in urban environments like this in and around Flathead Valley. Communication and planning is key to overcoming construction obstacles. Planning for construction methods and mitigating impact on city infrastructure and public traffic patterns starts during building design. We will communicate often with necessary parties at the city of Kalispell Public Works Department and Montana Department of Transportation. Proactive and consistent communication will help us implement 24 THE CHARLES HOTEL a game plan well in advance of construction commencing. Only with early engagement can we properly execute the plan while combating expected logistics during construction. Compass and the City of Kalispell can communicate the adopted plan to stakeholders through flyers, social media, and email. Additionally, we suggest that Compass creates a website, maintained by our public relations staff, to share project updates. This PR person will also serve as the point of contact for citizens and businesses to direct questions and concerns. Navigating a site with essentially no yard limits the laydown and working space adjacent to the new building. Considering pedestrian diversion and protection at adjacent sidewalks and nearby laydown space elsewhere in the city will be crucial. Consequently, we preliminarily contacted several downtown -area landowners and considered our KM Building parking lot for temporary material laydown and staging. Even with additional space, it will be necessary to strategically order and sequence material deliveries to the construction site. This approach will lessen the disruption on the 3rd & Main intersection, but not entirely eliminate it. There is still a need to create an effective, efficient delivery zone at the project site. Closing a lane of Highway 93 is an unlikely consideration, as this solution would be the most disruptive to traffic. Our best delivery opportunity is the westbound lane of 3rd Street West. While it is possible this delivery area will not entirely close a lane, it will temporarily displace adjacent on -street parking. Compass plans to coordinate closely with public works for traffic control and proper signage to clearly mark diverted lanes or parking. Signs placed ahead of the nearby intersection will prepare drivers for road modifications and alert pedestrians on the sidewalks. However, we will u maintain pedestrian crossings and access to neighboring businesses. Similarly, we need to ensure the continuation of city services, deliveries, and garbage pickup through the alleys. Jobsite safety is one of the pillars of our company, and Compass takes particular care when it comes to pedestrian safety. We suggest small diversions of pedestrian pattens in order to allow for working space adjacent to the building construction. In some cases, we strongly suggest providing covered walkways built by Compass; they may or may not temporarily impact some on - street parking. Compass influenced the building design by limiting basement sizes at both 3rd & Main and the parking structure site. This strategy alleviates concerns about undermining existing neighboring building foundations and eliminating sheet piling at the back of sidewalk for more extensive excavation. Completing basements quickly affords workspace around the building perimeter and material storage below the first elevated deck of the building. Construction sites frequently evolve to support the trades and equipment necessary for each phase. Tasks that deviate most from normal day-to-day activity will be most disruptive to traffic and existing patterns of behavior due to the extra precautions during these instances. However, with sewer in the alley, we anticipate a common connection with limited disruption. Storm also appears relatively straight -forward with infrastructure in both the alley and 3rd Street West. Dry utilities, such as power, gas, and telecommunication, are all currently buried and located in the alley as well. This condition makes for easy service connections and more easily hiding unsightly meters and services. CONCEPT TO DEVELOP THE SITE 25 The domestic water and fire connections will prove to be the most challenging and expensive. However, we may either tie into the water line in the northbound lanes of Main Street or defer to extending the main from 1st Avenue West down 3rd Street West to the project site. These are solutions we will need to discuss with public works and allow all parties to weigh the options accordingly. 26 THE CHARLES HOTEL PROPOSER'S QUALIFICATIONS, EXPERIENCE, & FINANCIAL CAPACITY p� KEY INDIVIDUALS MONTANA HOTEL DEV PARTNERS COMPASS - LEAD LOCAL CONTACT; WILL OVERSEE PROJECT MANAGEMENT & CONSTRUCTION At Compass Construction, we are transforming the Flathead Valley one construction project at a time. Located in scenic Kalispell, Montana, Compass has been a premier construction and development firm since 2004. We specialize in residential, multi -family, and commercial construction. Owner Bill Goldberg founded Compass after years of experience in residential construction. He consistently chased a vision for smart development, growth, and the revitalization of area communities. Over the past 17 years, Bill's dream has expanded, and so has our team. Collectively, we have extensive construction experience and project management skills, united under our purpose to grow, reach, and be bold together. Client satisfaction is paramount at Compass. Values of integrity and professionalism are fundamental to our work, and we strive to embody them in every interaction and project. We are attentive to detail, never take shortcuts, and are committed to superior quality and craftsmanship. The outstanding service we provide is evidenced by a multitude of projects throughout the Flathead Valley. We work within all types of construction projects and have been instrumental in the rehabilitation of multiple businesses, mixed -use projects, and multi -family developments. Vibrant downtown areas, including those in Kalispell, Whitefish, and Columbia Falls, reflect the value our service brings to local communities. BILL GOLDBERG SETH SIMONSON AMY McGEHEE Owner Project Manager Project Manager BOND PARTNERS - HOTEL CONCEPT, DEVELOPMENT, AND OPERATIONS BOND Partners is a San Diego -based, BOND Partners was created to exceed the diversified hospitality and real estate development company. We specialize in developing, opening, and operating highly serviced, uniquely stylized, architecturally significant lifestyle hotels and residences, destination restaurants and lounges, and other mixed -use retail offerings. BOND Partners is a lifestyle company with a deliberate growth strategy, backed by a sound business model and solid financial support. ROBERT WATSON PAUL GUCCINI CEO & President CFO expectations of a highly sophisticated clientele and to develop, own, operate, and asset manage lifestyle hospitality assets. We prefer to see the world for what it can be, rather than for what it is. We admire trends but possess a style of our own. We are always after that thing that waits to be discovered, just beyond the obvious and the well-known. We take pride in our honesty, wit and more importantly, our approachability. u QUALIFICATIONS, EXPERIENCE, & FINANCIAL 27 ALCHEMY DEVELOPMENT Alchemy Development was founded under the precept of taking something ordinary and making it extraordinary. This development will reflect Montana's culture and lifestyle in a community hub for libations and conversations. The establishment and its owner, John Costa, embodies his motto: "Leave it better." JOHN COSTA Owner & CEO DESIGN TEAM A&E DESIGN A&E Design is a multidisciplinary design firm with four offices in Montana (Billings, Bozeman, Missoula, and Kalispell), as well as Seattle, Washington. As a collection of innovators, we are united for a single purpose: to create impactful experiences for our clients. We offer architecture, interior design, historic preservation, graphic design, and construction administration in one comprehensive package. Together, we are a team of over 80 diversely talented professionals with a strong commitment to client satisfaction, quality design, and improving the world around us. CHRIS MARTISON SHANE JACOBS Principal Project Manager ABIGAIL KNAB Environmental Graphics OTHER CONSULTANTS KEN STONE Procurement Manager LINCOLN MURPHY ELIZABETH LOCKWOOD Project Architect Interior Designer JON SEARS Construction Manager Pending selection from the city of Kalispell, we have kept our design team limited to the architectural, interior design, graphic design, and creative writing staff ofA&E Design for the development of the concept design and content within this submittal. If selected, we will continue to work with A&E Design through the remaining design phases, and they will solicit proposals from local, qualified, licensed engineers and design consultants for a complete scope of design and permit documents for both the hotel and the parking structure. They will intentionally team with consulting firms with experience in these projects types, Kalispell, and sites in a downtown setting. 28 THE CHARLES HOTEL EXPERIENCE COMPASS CONSTRUCTION u Our design and construction teams have a proven track record and local knowledge to deliver a project of this magnitude. A list of recent and local mixed -use commercial and multi -family residential projects completed by Compass Construction include: 334, 317, and 309 Central Ave. in Whitefish, 223, 225, and 237 Baker Ave. in Whitefish, 20 Spokane Ave. in Whitefish, and 527, 519, and 638 Nucleus Avenue in Columbia Falls, as well as The Highline Apartments, 519 Skyles Apartments, and the Glacier Courtyard Apartments. These projects have provided experience of working on tight sites, amongst operating businesses, near U.S. highways and city thoroughfares, as well as amongst customers and visitors to our community. Compass has a dedicated commitment to the revitalization of the downtown area of Kalispell and it is personal. Bill Goldberg, owner of Compass Construction, at the helm of his other entities, has recently purchased the KM and Montgomery Ward Buildings, in addition to developing several other renewal projects in the works at this time. Compass has recently shown their commitment to Kalispell by moving their business from Whitefish to downtown Kalispell. Compass maintains a solid subcontractor base in which they have developed a long-standing relationship they will utilize to drive quality, schedule, and coordination throughout construction. REFERENCE CONTACT INFORMATION AVAILABLE THROUGH: Bill Goldberg 406.253.0544 bill@compassmt.net BOND PARTNERS BOND Partners executives have over 30 years of hotel and resort conception, branding, project finance, development, and operations. We specialize in creating lifestyle hotel projects that are architecturally significant, highly curated, and fully serviced. Led by founder and CEO Robert Watson, some of the projects BOND Partners has been responsible for are: Tower 23 Hotel in San Diego, 21c Museum Hotel in Louisville, The Modern Hotel in Honolulu, Northblock Hotel in Napa Valley, and the Chileno Bay Resort in Cabo San Lucas. A sampling of other projects BOND Partners has been responsible for include: Hotel Monaco, San Francisco, Hotel Monaco, Seattle, Hotel Monaco, Chicago, W San Francisco, W Seattle, W New York, Union Square, and WTimes Square. BOND Partners is establishing an office in Western Montana to create a portfolio of upscale boutique hotels in the state. We are committed to Kalispell and making this hotel the flagship for our company's growth direction. REFERENCE CONTACT INFORMATION AVAILABLE THROUGH: Robert Watson 310.795.2993 rwatson@bondpartners.us ALCHEMY DEVELOPMENT Alchemy Development Group was founded under the precept of taking something ordinary and making it extraordinary. Owner and CEO John Costa has 32 years of entrepreneurial experience in business QUALIFICATIONS, EXPERIENCE, & FINANCIAL 29 development and operations. Through his ownership of Hi Tech Honeycomb, a leading honeycomb manufacturer in the aerospace industry, John successfully developed international business relations. His product now services all engine manufactured for General Electric, Raytheon Technologies' subsidiary Pratt & Whitney, Rolls-Royce plc, and major airlines worldwide. He excels at program development and implementation, with strategic skills in team building and process management. John and his wife moved to Montana in 2016 and recently purchased First Avenue Taphouse and Casino in Kalispell. They are passionately committed to being productive members of the Flathead Valley community. REFERENCE CONTACT INFORMATION AVAILABLE THROUGH: John Costa 858.395.4645 john@costa.net 3C FINANCIAL Bond, Compass, and Alchemy have a proven track record of successfully developing, financing, and completing projects similar to the proposed Charles Hotel at the Buffalo Block. Our substantial combined development success is demonstrated by the cumulative body of work represented in the previous section. We have clearly identified funding sources, equity, and debt, and retrieved letters of interest from multiple lenders. These letters are provided for your reference in the enclosed confidential envelope. LITIGATION BOND PARTNERS BOND Partners holds a strong reputation for ethical business practices and serving our partners fairly and respectfully to achieve long-term relationships and successful projects. However, in the last 15 years, BOND has experienced a single litigation issue: In 2019, BOND brought action against a landowner who hired the firm as developer of the land. Agreement between plaintiff (BOND) and Defendant was unlawfully terminated and parties went to Arbitration. Plaintiff was awarded a payment as settlement. COMPASS, ALCHEMY, AND A&E DESIGN: There have not been any litigation/arbitration/claims filed against the firm in the past three years. 30 THE CHARLES HOTEL z a a BUSINESS PLAN �Rk �r fl DOCUMENTATION � PROPERTY OPPORTUNITY The city of Kalispell is undergoing a 25-year urban renewal plan to revitalize its downtown historic and entertainment districts. A downtown Tax Increment Financing (TIF) district was established to oversee the plan's implementation and see it to completion. Robust with attractions, like museums, restaurants, and boutique shops, this area infuses 1900s Western charm with vibrant, modern entertainment and surrounding beauty. As Flathead Valley tourism and housing industries continue to rise, The Charles Hotel will be a catalyst for the city's resurgence. Offering unparalleled luxury amenities amid expansive views of the Swan Mountain Range, this hotel will be a destination in itself. With extensive exploration and vetting processes, Bond is adept at identifying areas with significant potential to advance the hospitality industry. We realized that such an opportunity is present in Montana where travel and tourism is a leading industry. Several Montana cities, such as Bozeman, Missoula, and Helena, have experienced notable success with similar hotel developments. However, the City of Kalispell does not yet offer boutique hotel accommodations, despite its many visitors to the area each year. We see a tremendous need yet unmet, and believe we can elevate hospitality amenities and experiences for locals and tourists alike. By mirroring other successful hotel development strategies in Montana's travel destinations, we believe The Charles Hotel's unique accommodations and aesthetic will translate to success for the city and hospitality industry. 4B BUDGET The contents of this section are provided for your reference in the enclosed confidential envelope. Lis] OPERATING PRO FORMA The contents of this section are provided for your reference in the enclosed confidential envelope. BUSINESS PLAN 31 COMPLETION ABILITY The partnership between Montana Dev Partners, LLC, and A&E Design pairs local knowledge and talent with national expertise. Together, we are committed to enhancing efforts at a local level in Kalispell using our collective specialized skills and knowledge. Our extensive references and proven track record exemplify not only our quality work, but also our ability to complete projects within any constraints. Our team has thoughtfully curated the proposed project schedule and pro forma to adhere to the city of Kalispell's two-year timeline. We are dedicated to delivering this project within the city's expectations and will modify our strategy to align with the city's needs, even as they potentially evolve. � .fit. .�rJ..'y.� r�'r.: �,: ,.�•:. ON." ?R ,. f "i:r-. �y5 s:.'� -1 ..l�' :•1,1�ri:�'!"::. f._ J. r •.r:r:• ` y. LEVEL OF RETURN & BENEFIT TO THE CITY W0.1 k;% 4 PAR' 5A u PUBLIC BENEFITS Construction of The Charles Hotel and a and parking demand in the downtown core, parking structure has tremendous short- and we thoroughly explored opportunities to long-term benefits for Kalispell residents and increase available options. Our exhaustive visitors. From enhancing the sense of place in the downtown core to improving parking and city circulation, propelling the local economy and creating jobs, these benefits are tangible and positively impact the city's future while respecting its rich history. Our design thoughtfully conveys the historical architecture and heritage ingrained in the downtown Kalispell community. With careful attention to design integration within the surrounding context, we celebrate the area's historical significance. However, we build efforts identified the city owned Eagles lot as the most viable location for a new parking structure. Here, we plan to provide ample spaces to accommodate demand without compromising safety or security. Our plan alleviates the strain of the downtown parking situation by replacing the parking we are displacing with the hotel. We are also working with other financial parties that own a substantial amount of surface parking downtown for a stake in the parking structure. This strategy moves those cars to the upon that history to improve the experience structure and creates more on -street parking for current and future visitors. They receive opportunities for others that do business and luxury amenities, scratch -made food and play in our city center. craft cocktails, and superior service all in a casual, sophisticated, and approachable hospitality environment. This effective mix of contemporary and traditional will appeal to locals and travelers of all demographics. Adding parking and increasing property value is paralleled by a revenue inflow to the downtown TIF district that is critically needed. We anticipate the annual tax revenue generated by our project will amount to over We will improve walkability and the visual $516K allocated to the TIF. Additionally, if our impact on the sidewalk surrounding this building, too. By adding trees and vegetation, we will expertly infuse nature into the urban setting. Despite allowing dining to transcend the building facade, we are able to do so without impeding on foot traffic. Our design expands sidewalks and creates a vibrant feel in downtown, sparking engagement between the building, its users, and passersby. Parking has been a longtime point of contention for visitors to downtown Kalispell Knowing that our hotel will increase traffic community banks can commit to the parking structure and allow their surface parking lots to be redeveloped as other tax -generating properties, we'll see the catalyst that is the city's creation of the 3rd and Main RFP really gain momentum. The financial implications of this project go beyond tax revenue. As travel and tourism increases in Kalispell due to the added attractions at The Charles Hotel, the local economy can only benefit. Hotel guests, tourists, and regional residents will be LEVEL OF RETURN & BENEFIT TO THE CITY 33 attracted to the new downtown amenities our underutilized space in the west elevation of Main Buffalo Block project creates. They will reserve rooms, shop in retail spaces, and dine in our bar and restaurant. While they visit, these benefits will inevitably translate to other downtown and Flathead Valley businesses. Our guests will likely desire expanded business hours and community activities, and they will seek outdoor recreation, shopping, dining, and other opportunities to influence the Kalispell economy. The spaces we plan to shape in this historic district will also create jobs for local residents. Hotel support staff and service industry professionals will be critical to the continued operation of the hotel, retail stores, and the bar and restaurant we envision for this property. We have listed the short-term and long-term jobs created in attachment B. Additionally, we feel that a building and business like this in Kalispell helps other businesses thrive. It supports local restaurants and retail and begins to address key factors needed to bring more vibrancy to downtown Kalispell. This development will not only impact the downtown core district, it will transform the Kalispell community. Our hope is to add a relevant building and businesses to the downtown skyline that is otherwise an Street. By investing in infrastructure, hospitality, and retail, we create a catalyst for future growth and improvement. Our project begins to reshape the downtown area, making it an even more attractive destination for tourists and business travelers who are already captivated by the allure of Northwest Montana scenery and activities. 34 THE CHARLES HOTEL CITY ASSISTANCE � A project of this magnitude is a significant investment and we have worked in advance of team selection for this public RFP to secure financing from private investors. It would be appreciated if the city would consider possibly offsetting impact fees for the hotel development by utilizing TIF funds. When we study the desire to address parking for this project, it initially appears to be financially unviable. However, when considering how the hotel improvement at 3rd and Main and transfer of the land to private hands augments the downtown TIF district, the potential to bond against future TIF monies to offset the cost impact of the parking structure resolves a significant component of the financial puzzle. Hopefully, the City of Kalispell agrees that there is a benefit to the public by expanding public parking infrastructure in addition to what impact fees accomplish for our police, fire, water, storm, and sewer services. r 3. l LEVEL OF RETURN & BENEFIT TO THE CITY 35 THANK YOU bond partners cco� COMPASS