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Staff Report/Zoning & PUDREPORT TO: FROM: SUBJECT MEETING DATE: City of Kalispell Planning Department 17 - 2' Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 751-1850 Fax: (406) 751-1858 Website: kalispellplanning.com Kalispell Mayor and City Council Sean Conrad, Senior Planner Jaynes H. Patrick, City Manager Hilton Garden Inn and Conference Center Zone Change and Planned Unit Development May 1, 2006 BACKGROUND: This is a request for a Zone Change from P-1 (Public) to B-2 (General Business) and Planned Unit Development (PUD) overlay district on a 3.4 acre lot. The requested PUD overlay district would allow a Hilton Garden Inn and Conference Center to exceed the permitted building height of 40 feet in the B-2 (General Business) zoning district and place a casino within the hotel/conference center which is within 300 feet of a City park. Specifically, the owner is requesting the hotel be allowed a maximum height of 56 feet and a casino, approximately 1,540 square feet in size, be permitted within the 117,300 square foot hotel/conference center, which is located within 300 feet of Lions Park. The property is located approximately 600 feet south of the intersection of Highway 93 and 18th Street West, on the west side of the highway. The property address is 1840 Highway 93 South, (the Armory Building), and can be described as Assessors Tract 1B in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. (KPUD-06-01) The planning board held a public hearing at a meeting on April 11, 2006 and after hearing the staff report, testimony from the applicant and other members of the public, the planning board recommended the City Council approve the zone change and PUD request subject to the conditions listed in the staff report. RECOMMENDATION: A motion to approve the first reading of the ordinance for the planned unit development would be in order. FISCAL EFFECTS: Positive impacts once fully developed. ALTERNATIVES: As suggested by the City Council. Hilton Zone Change and PUD April 24, 2006 Page 2 Respectfully subinitte 1 Sears Conrad Senior Planner Report compiled: April 24, 2006 c: Theresa White, Kalispell City Clerk s H. Patrick City Manager ORDINANCE NO. 1574 AN ORDINANCE TO AMEND SECTION 27.02.010, OFFICIAL ZONING MAP, CITY OF KALISPELL ZONING ORDINANCE, (ORDINANCE NO.1460), BY ZONING CERTAIN REAL PROPERTY MORE PARTICULARLY DESCRIBED AS TRACT 1 OF CERTIFICATE OF SURVEY NO.17045, A TRACT OF LAND, SITUATED, LYING, AND BEING IN THE NORTH HALF OF THE NORTHWEST QUARTER OF SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, P.M.M., FLATHEAD COUNTY, MONTANA (PREVIOUSLY ZONED CITY P-1, PUBLIC) TO CITY B-2 (GENERAL BUSINESS), WITH A PLANNED UNIT DEVELOPMENT OVERLAY IN ACCORDANCE WITH THE KALISPELL GROWTH POLICY 2020, AND TO PROVIDE AN EFFECTIVE DATE. WHEREAS, Robert Voelker, contract purchaser of the property described above, petitioned the City of Kalispell that the zoning classification attached to the above described tract of land be zoned B-2, General Business with a Planned Unit Development overlay on approximately 3.4 acres of land, and WHEREAS, the property is approximately 600 feet south of the intersection of Highway 93 and 18th Street East at 1840 Highway 93 South, Kalispell, Montana, and WHEREAS, the petition of Robert Voelker was the subject of a report compiled by the Kalispell City Planning Office, Staff Report #KPUD-06-01, in which the Kalispell Planning Department evaluated the petition and recommended that the property as described above be zoned B-2, General Business, with a Planned Unit Development overlay, and WHEREAS, the Kalispell City Planning Board held a Public Hearing on the matter on April 11, 2006, and recommended that the initial zoning be City B-2, General Business with a Planned Unit Development overlay, and WHEREAS, after considering all the evidence submitted on the proposal to zone the property as described B-2, General Business with a Planned Unit Development overlay, the City Council finds such zoning to be consistent with the Kalispell Growth Policy 2020 and adopts, based upon the criterion set forth in Section 76-3-608, M.C.A., and State, Etc. v. Board of County Commissioners, Etc. 590 P2d 602, the findings of fact of the Kalispell Planning Department as set forth in Staff Report No. KPUD-06-1. NOW THEREFORE, BE 1T ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. Section 27.02.010, of the Official Zoning Map of the Kalispell Zoning Ordinance, (Ordinance No. 1460) is hereby amended by designating the property described above as B-2, General Business with a Planned Unit Development overlay on approximately 3.4 acres. SECTION II. The Planned Unit Development proposed by Robert Voelker upon the real property described above is hereby approved, subject to the following conditions: 1. The development of the site shall be in substantial compliance with the application submitted, the site plan, materials and other specifications and all public infrastructure shall be designed and installed in accordance with the Kalispell Design and Construction Standards as well as any additional conditions associated with the PUD as approved by the City Council. 2. The developer shall comply with the requirements of the Montana Department of Transportation in relation to any traffic studies that may be required and obtain any approach permits and any other necessary permits from the Montana Department of Transportation. .............................. 3. The height of the building shall not exceed 56 feet and in no case shall the height of the building exceed the applicable maximum height limit within the airport -affected area. 4. Neon lighting shall be prohibited on signs and the building. 5. Entrance to the casino shall be from inside the hotel/conference center. Entrances for the casino directly from outside the building are prohibited. 6. The signage advertising the casino shall be prohibited from using the following: a. Any terms such as gaming, gambling, cards, dice, chance, etc. b. Any reference to any associated activity or any symbols or words commonly associated with gaming. c. Any words, terms, figures, artwork, or features intended or designed to attract attention to the fact that a casino is on site. 7. The development shall meet all requirements of the Public Works Department to protect the City's water wellhead adjacent to the project. That a development agreement, substantially in the farm of that agreement attached hereto as Exhibit "A", be drafted by the Kalispell City Attorney between the City of Kalispell and the developer outlining and formalizing the terms, conditions and provisions of approval. The final plan as approved, together with the conditions and restrictions imposed, shall constitute the Planned Unit Development (PUD) zoning for the site. SECTION III. The balance of Section 27.02.010, Official Zoning Map, City of Kalispell Zoning Ordinance not amended hereby shall remain in full force and effect. SECTION IV. This Ordinance shall take effect from and. after 30 days of its passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS I ST DAY OF MAY, 2006. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk PLANNED UNIT DEVELOPMENT AGREEMENT HILTON GARDEN INN AND CONFERENCE CENTER THIS AGREEMENT made as of the day of May 2006, by Gateway Hospitality Group, Inc., an Ohio corporation, of 8920 Canyon Falls Blvd, Twinsburg, OH 44087, hereinafter "GATEWAY", and the City of Kalispell, a municipal corporation, of 312 1 st Avenue East, Kalispell, Montana 59901, hereinafter CITY; WITNESSETH WHEREAS, GATEWAY is the fee owner of certain real property located at 1840 Highway 93 South, Kalispell, Flathead County, Montana, which is further described as follows: Tract 1 of Certificate of Survey No. 17045, a tract of land, situated, lying, and being in the North Half of the Northwest Quarter of Section 20, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana and is hereinafter referred to as "Subject Property"; and WHEREAS, GATEWAY desires to have a Planned Unit Development (PUD) overlay upon the subject property zoned as B-2 General Business that would allow some flexibility in the height of the structure and location of a casino within the 117,300 square foot facility; and WHEREAS, in order to allow the PUD, assure the installation of infrastructure improvements within the "Subject Property", and prescribe the permitted uses therein, the parties hereto determine it to be in their interests to enter into this Development Agreement. I. GENERAL INTRODUCTION § 1.01 General The use and development of the Subject Property shall substantially conform to and comply with the provisions of the PUD Application filed by applicant and. the conditions contained within Kalispell City Resolution No. 5114 approving the sale of the subject property and Ordinance No. PLANNED UNIT DEVELOPMENT AGREEMENTIHILTON GARDEN INN Page 1. of 6 1574 approving the development of the subject property to the Hilton Garden Inn and Conference Center PUD and incorporated fully herein by this reference. § 1.02 Relationship to Zoning Ordinance Except as specifically modified or superseded by this Development Agreement, the laws, rules and regulations of the City of Kalispell governing the use and development of land and buildings, including the City of Kalispell Zoning Ordinance, shall apply to the Subject Property. § 1.03 Drawings The drawings annexed to this Planned Unit Development Agreement are an integral and essential component thereof, and they are incorporated by reference herein. § 1.04 Effectiveness and Cancellation The provisions of this Planned Unit Development Agreement shall become effective immediately and shall terminate contemporaneously with. the Net Proceeds Agreement regarding the Subject Property. This Development Agreement may be modified or amended only as set forth in Article VI hereof. § 1.05 Certification Procedure Whenever in this Planned Unit Development Agreement a certificate by the Director of Public Works is required to be given, such certificate shall be given within thirty (30) days of the receipt of a completed application. Such an application shall be deemed to be complete upon receipt of such drawings and narrative information as are reasonably necessary for the issuance of such certification. II. PARCEL DESCRIPTION § 2.01 The Subject Property, described in the recitals above, shall be developed with the infrastructure improvements as described below. No building permit shall be issued unless and until all improvements specified in this Agreement as well as those infrastructure improvements which may be required by the City of Kalispell's Standards for Design and Construction are either constructed or security provided guaranteeing construction of said improvements for that particular parcel upon which a building permit is requested. III. CONDITIONS OF DEVELOPMENT The development of the site shall be in substantial compliance with the application submitted, the site plan, materials and other specifications and all public infrastructure shall be designed and installed in accordance with the Kalispell Design and Construction PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 2 of 6 Standards as well as any additional conditions associated with the PUD as approved by the city council. 2. The developer shall comply with the requirements of the Montana Department of Transportation in relation to any traffic studies that may be required and obtain any approach permits and any other necessary permits from the Montana Department of Transportation. 3. The height of the building shall not exceed 56 feet and in no case shall the height of the building exceed the applicable maximum height limit within the airport -affected area. 4. Neon lighting shall be prohibited on signs and the building. 5. Entrance to the casino shall be from inside the hotel/conference center. Entrances for the casino directly from. outside the building are prohibited. 6. The signage advertising the casino shall be prohibited from using the following: • Any terms such as gaming, gambling, cards, dice, chance, etc. • Any reference to any associated activity or any symbols or words commonly associated. with gaming. • Any words, terms, figures, artwork, or features intended or designed to attract attention to the fact that a casino is on site. 7. The development shall meet all requirements of the Public Works Department to protect the City's water wellhead adjacent to the project. IV. OBLIGATIONS OF CITY The CITY agrees that in consideration of the terms set forth above, the execution of a Net Proceeds Agreement with GATEWAY (attached hereto) and. for the general economic benefits to be derived by the CITY and its citizens, including the additional tax base to be realized, the redevelopment of the subject property, which has been determined to be in a blighted area, and its usage as a conference center, which is desired and beneficial to the local economy, the CITY shall contribute funds for the following: 1. Demolition of the existing structures on the subject property; and 2. Development of the public infrastructure on the subject property, or on the adjacent City Airport property to be leased, which could include parking lot and landscaping development; and 3. Facade or other improvements to the City pump house adjacent to the subject property. The contribution of the City shall not exceed the total sum of EIGHT HUNDRED NINETY THOUSAND AND NO/ 100THS ($890,000) DOLLARS. The CITY shall enter into a long-term leasehold agreement with GATEWAY to provide such additional parking area to GATEWAY as may be required by the CITY and not available on the PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 3 of 6 Subject Property. This harking area shall be adjacent to the Subject Property and located on CITY owned City Airport property. The specific terms of the lease agreement shall be negotiated between the parties, however the length of the term shall be of such length as required for GATEWAY to finance the project and the annual per square foot lease payment shall be equal to or greater than such payments made by other parties leasing City Airport property. V. AMENDMENT OR MODIFICATIONS OF DEVELOPMENT AGREEMENT § 5.01 This Development Agreement may be amended or modified only, by application of the owner, in accordance with the procedures set forth herein. § 5.02 Application for amendment or modification may be made to the City of Kalispell Site Review Committee. § 5.03 Modifications of this Development Agreement which are determined by the Site Review Committee to be minor modifications shall require only the consent of the Site Review Committee, and shall not require the consent or approval of the City Council or any other public agency. All amendments and modifications to this Development Agreement other than minor modifications shall require the approval of the City Council of the City of Kalispell. § 5.04 All applications for modification or amendment of this Development Agreement shall be filed with the Site Review Committee and. the Site Review Committee shall promptly determine whether the modification is minor or major. § 5.05 The Site Review Committee shall make its determination with respect to any application for a minor modification subject to this Section within fifteen (15) days after it determines the application to be subject to said minor modification. § 5.06 If the amendment or modification requested is of such a nature as to require approval of the City Council, the Site Review Committee small refer the matter to the City Council within fifteen (15) days after it determines the matter requires Council review. § 5.07 The owner may appeal any decision of the Site Review Committee to the City Council, who may affirm, reverse or modify the Site Review Committee decision. VI. CONSTRUCTION PERMITTING § 6.01 General Requirements I. No building permit in respect to the building in any structure shall be issued by the Building Department until the Director of Public Works has certified to the Building Department that the infrastructure improvements as required herein substantially conform. to the Site Condition requirements contained in this Agreement and that said improvements have been constructed or security guaranteeing the construction has been received by the City. PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 4 of 6 II. For purposes of this Section, the "Security" required shall be in an amount equal to 125% of the developer's Licensed Engineer's estimate of the cost of constructing said improvements. VIZ MISCELLANEOUS § 7.01 Effective Date This Agreement shall be effective immediately and shall remain in full force and effect until the expiration of the Net Proceeds Sale Agreement. § 7.02 Severability In the event that any provisions of this Agreement shall be deemed, decreed, adjudged or determined to be invalid or unlawful by a court of competent jurisdiction, such provision shall be severable and the remainder of this Agreement shall continue to be of full force and effect. § 7.03 Recordation This Agreement shall be recorded along with the Memorandum of Net Proceeds Agreement with respect to the subject property. § 7.04 Entire Agreement - Primacy This Agreement constitutes the entire agreement between the parties and may only be amended as set forth herein. § 7.05 Binding Effect This Agreement shall be binding upon and inure to the benefit of the respective parties heirs, successors and assigns. Dated this day of May, 2006. GATEWAY HOSPITALITY GROUP by: Robert Voelker, President CITY OF KALISPELL by: James H. Patrick, City Manager PLANNED UNIT DEVELOPMENT AGREEMENTIHILTON GARDEN INN Page 5 of 6 STATE OF MONTANA ) ):ss County of Flathead ) On this day of May 2006, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Robert Voelker, in his capacity as President of GATEWAY HOSPITALITY GROUP, INC., that executed the foregoing instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first above written.. Notary Public, State of Montana Residing at My Commission Expires STATE OF MONTANA ) ):ss County of Flathead ) On this day of May 2006, before me, a Notary Public in and for the State of Montana, personally appeared JAMES H. PATRICK, known to me to be the City Manager of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. 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 Residing at My Commission Expires PLANNED UNIT DEVELOPMENT AGREEMENTMILTON GARDEN INN Page 6 of 6 NET PROCEEDS AGREEMENT This Net Proceeds Agreement (the "Agreement") is entered into this day of May, 2006 by and between GATEWAY HOSPITALITY GROUP, INC., [hereinafter referred to as "Owner"] of 8920 Canyon Fails Blvd, Twinsburg, OH 44087, and the CITY OF KALISPELL, a municipal corporation of Flathead County, Montana, [hereinafter referred to as the "City"] of P.O. Box 1997, Kalispell, MT 59903-1997. WITNESSETH. WHEREAS, Owner and City are parties to a Planned Unit Development Agreement dated May 2006 providing for the construction of a 117,300 square foot Hilton Garden Inn and Conference Center (the "Facility") on the real property described on Exhibit "A" (the "Subject Property"); and WHEREAS, pursuant to a Sale and Purchase Agreement dated May , 2006, Owner has acquired by purchase from the City, title to the Subject Property and all rights and appurtenances pertaining thereto; and WHEREAS, as additional consideration for the sale of the Subject Property by the City to Owner, the Sale and Purchase Agreement provides that Owner shall assign and convey the Net Proceeds Interest (as hereinafter defined) to the City. NOW, THEREFORE, in consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the parties hereto agree as follows: Section 1 Definitions. All capitalized terms, not otherwise defined herein, shall have the meanings given to them in the Planned Unit Development Agreement. For the purposes of this Agreement, the following terms shall have the meanings set forth below: (a) "Appraised Value" in the case of an Exchange shall mean the fair market value of the Subject Property as appraised in accordance with Section 3 of this Agreement. (b) "Base Investment" shall mean the sum of (i) Owner's Invested Capital, and (ii) the principal portion of all Permanent Indebtedness. (c) "Capital Expense Reserve" shall mean that portion of the proceeds of a Refinancing deposited in a bank account in the name of Owner as a reserve for Capital Expenses required by the lender in a Refinancing. (d) "Capital Expense" shall mean costs which can't be fully expensed in the year paid under generally accepted accounting principles consistently applied, and fully deducted in such year from trade or business income under the Internal Revenue Code of 1986, as amended. NET PROCEEDS AGREEMENT Page 1 of 11 (e) "Exchange" shall mean a transaction in which the consideration, in whole or in part, to Owner for its transfer or conveyance of the Property is the transfer or conveyance to Owner of an interest in real property (the `Exchange Property"). (f) "Indebtedness" shall mean any indebtedness secured by a lien on the Property for the purpose of providing interim or permanent financing for the project, and any outstanding equipment loans. (g) "Owner's Invested Capital" shall mean that amount set forth in venture agreement(s) between the Owner and the investor or investors providing the equity portion of the Financing, to be entered into at the Closing providing for the investment of such equity capital. (h) "Owner's Project Loans" shall mean any of Owner's invested Capital booked as a loan. (i) "Interest on Owner's Project Loans" shall mean a sum equal to eleven percent (11%) per annum, cumulative, but not compounded. (j) "Net Proceeds of a Sale" shall mean gross proceeds from a Sale of the Facility, less (i) the payment of Transaction Costs, (ii) repayment of the principal balance of all Indebtedness encumbering the Facility and accrued interest thereon, (iii) return of Owner's Unrecovered Invested Capital; (iv) repayment of the principal balance of Owner's Project Loans and accrued interest thereon, and (v) payment of the Return on base investment. (k) "Net Proceeds of a Refinancing" shall mean gross proceeds from a Refinancing of the Facility, less (i) the payment of Transaction Costs, (ii) repayment of the principal balance of the Indebtedness being refinanced and accrued interest thereon, (iii) any amounts required by the new lender to establish a Capital Expenditure Reserve, (iv) return. of Owner's Unrecovered Invested Capital, (v) repayment of the principal balance of Owner's Project Loans and accrued interest thereon, and (vi) payment of the Return on Base Investment. (1) "Net Proceeds of an Exchange" shall mean the gross proceeds from the Exchange, based on the Appraised Value of the Property, less (i) the payment of Transaction Costs, (ii) repayment of the principal balance of all indebtedness Encumbering the Facility and accrued interest thereon, (iii) return of Owner's Unrecovered Invested Capital, (iv) repayment of the principal balance of Owner's Project Loans and accrued interest thereon, and (v) payment of the Return on Base Investment. (m) "Net Proceeds Interest" shall mean a ten percent (10%) interest in the Net Proceeds of a Sale, Refinancing, or Exchange. NET PROCEEDS AGREEMENT Page 2 of 11 (n) "Permanent Indebtedness' shall mean any indebtedness secured by lien on the Property for the purpose of providing Permanent Financing for the Facility. (o) "Refinancing" shall mean repayment in full of the Indebtedness encumbering the Facility with the proceeds of another loan, regardless of whether repayment of such loan is secured by a lien on the Facility. (p) "Return on Base Investment" shall mean a sum equal to a thirteen percent (13%) per annum, cumulative, but not compounded, return on Owner's Invested Capital and the principal portion of all Permanent Indebtedness. (q) "Sale" shall mean the sale, transfer, assignment, conveyance, or other disposition of all or any portion of the Facility or any interest therein, including but not limited to (i) the sale, transfer, assignment or conveyance of more than fifty percent (50%) of the partnership or other ownership interests of Owner; (ii) a taking pursuant to an eminent domain proceeding or a conveyance in lieu thereof and (iii) a master or ground lease. (r) "Transaction Costs" shall mean the reasonable, usual and, customary costs of Owner directly associated with the closing of any Sale, Refinancing or Exchange and actually paid in cash by Owner to persons other than Owner, including by way of example, points, refinancing or commitment fees, brokerage fees to bona fide third party brokers, surveying charges, environmental reports, recording fees, title insurance premiums, and attorneys' fees, provided that no costs shall be included as Transaction Costs which represent sums paid to affiliates of Owner unless such fees are no higher than prevailing fees for similar services in the area where the Facility is located. (s) "Unrecovered Invested Capital" shall mean Owner's Invested Capital, less all payments received by Owner that, according to accepted accounting procedures are treated as a return of capital. Section 2. Net Proceeds Interest. Owner hereby assigns, conveys, and transfers the Net Proceeds Interest to the City and agrees to pay or cause to be paid to the City upon consummation of a Sale, Exchange, or Refinancing, cash or other good funds in an amount equal to the product obtained by multiplying the Net Proceeds by the Net Proceeds Interest. Section 3. Exchanges. If Owner should enter into an exchange agreement, which provides that the Property will be exchanged for Exchange Property, Owner shall pay the City, at closing, the Net Proceeds Interest, based on the Appraised Value of the Property, and this Agreement shall terminate. The Appraised Value of the Property shall be determined by agreement of the parties within fifteen (15) days after the City receives notice of the proposed Exchange. If the parties are unable to reach agreement, then each shall designate an MAT appraiser familiar with Facility properties in the area of the Property within ten (10) days, and the two appraisers shall pick a third appraiser within five (5) days of their appointment. The three appraisers shall determine the appraised Value of the Property as of the date of closing of the Exchange, and shall notify the NET PROCEEDS AGREEMENT Page 3 of 1.1 parties in writing of their determination. The parties shall bear equally the costs and fees of the three appraisers. Section 4. No Guarantees. The City and Owner acknowledge and agree that (a) Owner does not warrant or guarantee that there will be any Net Proceeds of any kind with respect to the Property and (b) the City has no right to receive any particular sums of money hereunder, but only such amounts, if any, as may become payable by virtue of the provisions of Section 2 hereinabove. Section S. Rights in Property. The City does not have, and nothing herein contained shall be construed to grant or to vest in the City, title in or to the Facility nor does the City have any right to approve or disapprove or participate in any decision with respect to any aspect of the ownership, management, financing, leasing, Sale, Refinancing or other disposition of the Facility. Section 6. Covenants of Owner. Owner represents, warrants, covenants and undertakes that during the term of this Agreement, Owner will (a) observe and perform each and every provision of any deed of trust which relates to the Property and will promptly notify the City if Owner receives a notice of default or a notice which gives Owner an opportunity to cure a default under or pursuant to such deed of trust, and Owner agrees to cure any default under such deed of trust within the time periods required therein; (b) allow the City, at City's election and in its discretion, to cure any default under any Permanent Indebtedness, or other debt secured by a lien on the Property (provided the City shall have no obligation to do so) and any advances made by the City to cure any default shall bear interest from the date of such advance at the highest rate permitted by applicable law and shall be repayable to the City on demand by the City; (c) not take any action that would cause the Facility to decrease in value, or fail to take any action that would prevent the Facility from decreasing in value; (d) give the City written notice of a proposed Sale, Refinancing, Exchange or other disposition of the Facility at least thirty (30) days prior to the consummation of the respective transaction, which notice shall include a copy of the executed contract of Sale or Exchange (in the event of a Sale or Exchange of the Property) or a copy of the commitment (in the event of a Refinancing); (e) give the City notice that eminent domain proceedings have been commenced. or the threat of eminent domain proceedings has been asserted within five (5) days after Owner has been notified thereof; and (f) maintain insurance upon and relating to the Facility insuring against loss by fire and such other hazards and casualties and contingencies as are normally and usually covered by extended coverage policies in effect in Flathead County, Montana, such policy to be on a replacement cost basis in an amount not less than that necessary to NET PROCEEDS AGREEMENT Page 4 of 11 comply with any co-insurance percentage stipulated in the policy but not less than one hundred percent (100%) of the insurable value (based upon replacement cost) of the Facility. Section 7. Assignment. The City may assign or encumber its rights under this Agreement without the prior written consent of Owner. Section 8. No Partnership Indemnity. Nothing contained in this Agreement is intended. nor shall it be construed, to create a partnership or joint venture between the parties hereto or to render either of the parties liable or responsible for the debts or obligations of the other, including, but not limited to, interest, taxes, losses or any other liability. Owner shall indemnify and hold the City harmless from and against any and all liabilities and obligations incurred in connection with the Facility. Section 9. Default. Upon any default by Owner hereunder, in addition to any other remedies which the City may have at law or in equity, the City shall have the right to bring suit for specific performance against Owner. Section 10. Notices. All notices or other communications required or desired to be given with respect to this Agreement shall be in writing and shall be delivered by hand or by courier service, sent by registered or certified mail, return receipt requested, bearing adequate postage, or sent by nationally recognized overnight delivery service, or sent by facsimile, and properly addressed as provided below. Each notice given by mail shall be deemed to be given by the sender when received or refused by the party intended to receive such notice; each notice delivered by hand or by courier service shall he deemed to have been given, and received when actually received by the party intended to receive such notice or when such party refuses to accept delivery of such notice; each notice given by overnight delivery service shall be deemed to have been given and received on the next business day following deposit thereof with the overnight delivery company; and. each notice given by facsimile shall be deemed to have been given and received upon transmission, provided confirmation of receipt is received back by the sending facsimile prior to 5:00 pm local time at the sending location, or on the next business day if after 5:00 p.m. local time at the sending location. Upon a change of address by either party, such party shall give written notice of such change to the other parties in accordance with the foregoing. Inability to deliver because of changed address or status of which no notice was given shall be deemed to be receipt of the notice sent, effective as of the date such notice would otherwise have been received. To the City: City of Kalispell City Manager P.O. Box 1997 Kalispell, MT 59903 FAX: (406) 758-7758 To Owner: Gateway Hospitality Group Bob Voelker 8920 Canyon Falls Blvd Suite # 125 Twinsburg, OH 44087 FAX (330) 405-9898 NET PROCEEDS AGREEMENT Page 5 of 11 Section 11. Governing Law and Venue. The laws of the State of Montana and the United States of America shall govern the validity, enforcement and interpretation of this Agreement. The obligations of the parties are performable and venue for any legal action arising out of this Agreement shall lie in Flathead County, Montana. Section 12. Integration, Modification and Waiver. This Agreement constitutes the complete and final expression of the agreement of the parties relating to the subject matter hereof, and supersedes all previous contracts, agreements and understandings of the parties, either oral or written, relating to such subject matter. This Agreement cannot be modified, nor any of the terms hereof waived, except by an instrument in writing (referencing specifically to this Agreement) executed by the party against whom enforcement of the Modification or waiver is sought. Section 13. Counterpart Execution. This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument. Section 14. Construction. The headings, which have been used throughout this Agreement, have been inserted for convenience of reference only and do not constitute matter to be construed in interpreting this Agreement. Words of any gender used in this Agreement shall be held and construed to include the plural and vice versa, unless the context requires otherwise. The words "herein", "hereof, hereunder" and other similar compounds of the word "here", when used in this Agreement shall refer to the entire Agreement and not any particular provision or section. If the last day of any time period stated herein shall fall on a Saturday, Sunday or legal holiday, then the duration of such time period shall be extended so that it shall end on the next succeeding day which is not a Saturday, Sunday or legal holiday. Section 15. Invalid Provisions. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall he held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby. Section 16. Memorandum of Net Proceeds Agreement. Upon the request of either party, both parties shall execute a Memorandum of Net Proceeds Agreement in the form attached hereto as Exhibit B (the "Memorandum") which shall be filed in the Office of Clerk and Recorder for Flathead County, Montana. NET PROCEEDS AGREEMENT Page 6 of 11 EXECUTED on the date first above written. OWNER GATEWAY HOSPITALITY GROUP, INC. Bob Voelker, President CITY OF KALISPELL James H. Patrick, City Manager NET PROCEEDS AGREEMENT Page 7 of 11 STATE OF MONTANA ) ):ss County of Flathead ) On this day of May, 2006, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Robert Voelker, in his capacity as President of GATEWAY HOSPITALITY GROUP, INC., that executed the foregoing instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand. and affixed my Notarial Seal the day and year in this certificate first above written. Notary Public, State of Montana Residing at My Commission Expires STATE OF MONTANA ) ): ss County of Flathead } On this day of May 2006, before me, a Notary Public in and for the State of Montana, personally appeared JAMES H. PATRICK., known to me to be the City Manager of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. 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 Residing at My Commission Expires NET PROCEEDS AGREEMENT Page 8 of 11 EXHIBIT "A" Tract 1 of Certificate of Survey No. 17045, a tract of land, situated, lying, and being in the North Half of the Northwest Quarter of Section 20, Township 28 North, Range 21 West, P.M..M., Flathead County, Montana. NET PROCEEDS AGREEMENT Page 9 of 11 EXHIBIT "B" MEMORANDUM OF NET PROCEEDS AGREEMENT A Net Proceeds Agreement was entered into on the day of May 2006 by and between GATEWAY HOSPITALITY GROUP, INC., of 8920 Canyon Falls Blvd, Twinsburg, OH 44087, and the CITY OF KALISPELL, a municipal corporation of Flathead County, Montana, of P.O. Box 1997, Kalispell, MT 59903-1997. Said Agreement affects the rights of the parties upon the sale, refinancing or exchange the following described real property: Tract 1 of Certificate of Survey No. 17045, a tract of land, situated, lying, and being in the North Half of the Northwest Quarter of Section 20, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana. A copy of said Agreement may be obtained from either of the parties at the addresses set forth above. EXECUTED on the date first above written. OWNER GATEWAY HOSPITALITY GROUP, INC. Bob Voelker, President CITY OF KALISPELL James H. Patrick, City Manager NET PROCEEDS AGREEMENT Page 10 of 11 STATE OF MONTANA ) ):35 County of Flathead ) On this day of May 2006, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Robert Voelker, in his capacity as President of GATEWAY HOSPITALITY GROUP, INC., that executed the foregoing instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first above written. Notary Public, State of Montana Residing at My Commission Expires STATE OF MONTANA ) ):ss County of Flathead ) On this day of May 2006, before me, a rotary Public in and for the State of Montana, personally appeared JAMES H. PATRICK, .known to me to be the City Manager of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act of said municipality, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said municipality. 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 Residing at My Commission Expires NET PROCEEDS AGREEMENT Page 1.1 of 11 City of Kalispell Planning Department 17 - 2na Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 75.1-1850 Fax: (406) 751-1858 Website: kalispellplanning.com April 24, 2006 James H. Patrick, City Manager City of Kalispell P.O. Box 1997 Kalispell, MT 59903 Re: Hilton Garden Inn and Conference Center Zone Change and Planned Unit Development Dear Jim: The Kalispell City Planning Board met on April 11, 2006 and held a public hearing to consider a request for a Zone Change from P-1 (Public) to B-2 (General Business) and Planned Unit Development (PUD) overlay district on a 3.4 acre lot. The requested PUD overlay district would allow a Hilton Garden Inn and Conference Center to exceed the permitted building height of 40 feet in the B-2 (General Business) zoning district and place a casino within the hotel/conference center which is within 300 feet of a City park. Specifically, the owner is requesting the hotel be allowed a maximum height of 56 feet and a casino, approximately 1,540 square feet in size, be permitted within the 117,300 square foot hotel/conference center, which is located within 300 feet of Lions Park. The property is located approximately 600 feet south of the intersection of Highway 93 and 18th Street West, on the west side of the highway. The property address is 1840 Highway 93 South, (the Armory Building), and can be described as Assessors Tract 113 in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. (KPUD-06-01) Sean Conrad, with the Kalispell Planning Department, presented staff report KPUD- 06-1 evaluating the proposal. Elevation drawings and floor plans of the proposed hotel/conference center were included in the presentation. During the public hearing the applicant, Bob Voelker, spoke in favor of the proposal. Three others spoke in favor of the project including the Director of the Kalispell Chamber of Commerce. All three felt that having a Hilton on the south end of the City would be an asset and a welcome addition. Hilton Zone Change and PUD April 24, 2006 Page 2 The planning board discussed the proposal and the testimony. After discussion of the issues raised in the staff report the planning board voted unanimously to recommend approval of the requested zone change and PUD. Please schedule this matter for the May 1, 2006 regular City Council meeting. You may contact this board or Sean Conrad at the Kalispell Planning Department if you have any questions regarding this matter. Sincerely Kalispell City Planning Board r George Taylor President GT/sc 1 Attachments: Exhibit A - PUD Conditions of Approval Staff report KPUD-06-1 and application materials Minutes from the 4/ 11 /06 planning board meeting c w/ Att: Theresa White, Kalispell City Clerk c w/o Att: Robert Voelker, 8920 Canyon Falls Blvd., Twinsburg, 4H 44087 EXHIBIT A HILTON GARDEN INN AND CONFERENCE CENTER KALISPELL CITY PLANNING BOARD APRIL 11, 2006 The Kalispell City Planning Board held a public hearing on this matter at the regular meeting of the planning board of April 11, 2006. The following conditions are recommended for the planned unit development: 1. That the development of the site shall be in substantial compliance with the application submitted, the site plan, materials and other specifications as well as any additional conditions associated with the PUD as approved by the city council. (Kalispell Subdivision Regulations, Appendix C - Final Plat) 2. Prior to issuance of a building permit the developer shall obtain an approach permit and any other necessary permits from the Montana Department of Transportation. 3. The height of the building shall not exceed 56 feet and in no case shall the height of the building exceed the applicable maximum height limit within the airport affected area. 4. Neon lighting shall be prohibited on signs and the building. 5. Entrance to the casino shall be from inside the hotel/conference center. Entrances for the casino directly from outside the building are prohibited. 6. The signage advertising the casino shall be prohibited from using the following: • Any terms such as gaming, gambling, cards, dice, chance, etc. • Any reference to any associated activity or any symbols or words commonly associated with gaming. • Any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site. 7. That a development agreement be drafted by the Kalispell City Attorney between the City of Kalispell and the developer outlining and formalizing the terms, conditions and provisions of approval. The final plan as approved, together with the conditions and restrictions imposed, shall constitute the Planned Unit Development (PUD) zoning for the site. Sc HILTON GARDEN INN AND CONFERENCE CENTER ZONE CHANGE AND PLANNED UNIT DEVELOPMENT KALISPELL PLANNING OFFICE STAFF REPORT #KPUD-06-1 APRIL 24, 2006 A report to the Kalispell City Planning Board and the Kalispell City Council regarding a request for a Zone Change and Planned Unit Development (PUD) overlay on property zoned P- I (Public). A public hearing has been scheduled before the Kalispell City Planning Board for April 11, 2006 beginning at 7:00 PM in the Kalispell City Council Chambers. The planning board will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION: Last year the City decided to sell the 3.4 acne Armory site located along Highway 93. An appraisal of the property put the property value at approximately 1.2 million dollars. Upon opening the bidding for the property the City received one bid for the amount of the appraised value from Robert Voelker. Mr. Voelker is pursing the possibility of constructing a Hilton Garden Inn and Conference Center on the Armory site. A. Petitioner: Robert Voelker 8920 Canyon Falls Blvd Twinsburg, OH 44087 B. Nature of the Request: A request by Robert Voelker for a Zone Change from P-1 (Public) to B-2 (General Business) and Planned Unit Development (PUD) overlay district on a 3.4 acre lot. The requested PUD overlay district would allow a Hilton Garden Inn and Conference Center to exceed the permitted building height of 40 feet in the B-2 (General Business) zoning district and place a casino within the hotel/conference center which is within 300 feet of a City park. Specifically, the owner is requesting the hotel be allowed a maximum height of 56 feet and a casino, approximately 1,540 square feet in size, be permitted within the 117,300 square foot hotel/conference center, which is located within 300 feet of Lions Park. C. Location and Legal Description of Property: The property is located approximately 600 feet south of the intersection of Highway 93 and 18th Street East, on the west side of the highway. The property address is 1840 Highway 93 South, (the Armory Building), and can be described as Assessors Tract 1B in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. (KPUD-06- 01) D. Existing Land Use and Zoning: The site is currently developed with the Armory building and associated parking. A small well house is located in the northeast corner of the property. The project proposal seeks to change the zoning on the property from P-1 to B-2 (General Business). In addition to the zone change the applicant is also requesting a Planned Unit Development (PUD) overlay district on the property to allow for minor deviations within the B-2 zoning district. I E. Adjacent Land Uses and Zoning: North: City Airport, City P-1 zoning South: Vacant lot, City B-2 zoning East: Highway 33/Lions Park and Business Center, B-2 zoning West: City Airport, City P-1 zoning F. General Land Use Character: The general land use character of this area is highway commercial businesses including grocery stores, gas stations, fast food restaurants, motels, casinos and professional offices. G. Utilities and Public Services: Sewer: City of Kalispell Water: City of Kalispell Refuse: City of Kalispell or Evergreen Disposal Inc. Electricity: Flathead Electric Cooperative Telephone: CenturyTel Schools: School District #5 Fire: Kalispell Fire Department Police: City of Kalispell H. Relation to the Kalispell Growth Policy: The 3.4 acre project site is located along a commercial corridor on the south end of the City. Chapter 4, Goal 2, in the Growth Policy states that new commercial development should occur in areas where public water and sewer are available. There are existing water and sewer lines located within the highway right-of-way adjacent to the project site. EVALUATION OF PROPOSED ZONE CHANGE FROM P-1 JPUBLIC)._...TO.....B..-2.-(GENERAL COMMERCIAL The statutory basis for reviewing a zone change is set forth by 76-2-205, M.C.A. and the Kalispell Zoning Ordinance. Findings of fact for the zone change request are discussed relative to the itemized criteria described by 76-2-203, M.C.A and Section 27.30.020, Kalispell Zoning Ordinance. 1. Does the requested zone comply with the Master Plan? The Kalispell Growth Policy map designates this property as Public as the City currently owns the property and the current zoning district of P-1 reflects the public land use designation. The City is in the process of selling the property in order for further development of the property to take place. Existing commercial land use designations are located to the north, south and east of the project site. These areas also have existing B-2 (General Commercial) zoning. The requested zone change to B-2 would comply with surrounding land use designations as shown on the Growth Policy map as well as surrounding zoning districts. 2. Is the requested zone designed to lessen congestion in the streets? Section 27.14.010 of the Kalispell Zoning Ordinance states that the B-2 district depends on the proximity to major streets and arterials and that the B-2 district 2 should be located in business corridors or in islands. The location of the project site is situated in the middle of a business corridor along Highway 93 South. The B-2 zoning district permits a wide range of uses including but not limited to hotels, restaurants, auto sales and auto repair, and supermarkets among other uses. The majority of uses permitted or conditionally permitted within the B-2 zoning district are automobile intensive. With Highway 93 providing access to the project site, congestion in the surrounding streets will be lessened as the highway would be capable of adequately serving additional traffic generated within a business zoning district. 3. Will the requested zone secure safety from fire, panic, and other dangers? Adequate access and public facilities are available to the site in the case of an emergency. There are no features related to the property which would compromise the safety of the public provided new construction is built in compliance with the building codes adopted by the City which relate to fire and building safety. All municipal services including police and fire protection (including hydrants), water and sewer service are available to the site. 4. Will the requested zone promote the health and general welfare? The requested zoning classification will promote the health and general welfare by restricting land uses to those that would be compatible with the adjoining properties. 5. Will the requested zone rovide for ade uate light and air? Setback, height, and coverage standards for development occurring on this site are established in the Kalispell Zoning Ordinance to insure adequate light and air is provided. 6. Will the requested zone prevent the overcrowding of land? The minimum lot size for the proposed B-2 zoning on this property is 7,000 square feet. The potential development associated with this property would be limited only by the development standards associated with the B-2 zoning district that relate to lot coverage and the types of uses permitted under the zoning. The proposed commercial development in this area is appropriate because of its location and the availability of urban services. The rezoning of this land would not create an overcrowding of land. 7. Will the requested zone avoid undue concentration of eo le? As stated above, the potential development associated with this property would be limited only by the development standards associated with the B-2 zoning district that relate to lot coverage and the types of uses permitted under the zoning. The B-2 also sets a maximum height limit of 60 feet provided a conditional use permit is issued. Given the land use restrictions in the proposed B-2 zoning district as well as parking, landscaping and setback requirements, the rezoning of this land would not create an undue concentration of people. 3 8. Will the re uested zone facilitate the adequate provision of trans ortation water, sewerage, schools arks and other public requirements? All public services and facilities are currently available or can be provided to the property. Development should be encouraged in areas where these services are available. 9. Does the requested zone give consideration to the articular suitability of the property for particular uses? The proposed B-2 zoning designation for this property is consistent with the surrounding zoning and land uses in the area and gives due consideration of the suitability of this property for the permitted and conditional uses in the district. The property is level throughout with no environmental constraints such as steep slopes, high ground water, streams or wetlands. The project site is also adjacent to Highway 93 on the east and the City airport on the west. Given the adjacent land uses, a commercial zoning district would be appropriate for this site. 10. Does the requested zone give reasonable consideration to the character of the district? The general character of this area is highway commercial businesses including grocery stores, gas stations, fast food restaurants, motels, casinos and professional offices. The proposed B-2 zoning permits the types of uses that make up the character of this area. Therefore, with the zone change, future development will be consistent with the character of the area. 11. Will the ro osed zone conserve the value of buildings? Values of the buildings in the area will be conserved because the proposed B-2 zoning will promote compatible uses on this property with other properties in the area. 12. Will the requested zone encourage the most Appropriate use of the land throughout the municipality? This rezoning request is in compliance with the Kalispell Growth Policy with regard to the location and expansion of commercial areas. The proximity to other commercially zoned properties and access to the highway system make commercial development an appropriate use of this property. EVALUATION OF THE PLANNED UNIT (DEVELOPMENT PROPOSAL: Project Narrative: The proposed Hilton Garden Inn and Conference Center is a 146 room hotel with a conference center, restaurant and casino. The overall square footage for the hotel/conference center is 117,300 square feet. The hotel would comprise of four floors with the first floor a total of 57,678 square feet. Located on the first floor would be an 8,500 square foot ballroom capable of accommodating 565 people. Surrounding the ballroom is a 6,475 square foot pre -function area capable of accommodating 431 people. There will also be 23 rooms for guests, a Blue Canyon Restaurant with a seating area of approximately 4,600 square feet and an adjoining casino, approximately 1,540 4 square feet. The second, third and fourth floors would each be 19,874 square feet in size and accommodate 41 rooms on each floor. Situated on the 3.4 acre project site is one of the City's water wells and well house. During the City's site review committee meeting concerns with additional development on the site and the potential for contamination of the water supply were brought up. Planning staff contacted the Department of Environmental Quality for state requirements pertaining to setbacks from City wells. The Department informed planning staff that a 100-foot isolation zone is required around all wells, public or private. Within this zone the City will need to maintain an easement to allow oversight of what can and cannot go within the isolation zone. The Department stated that buildings and parking lots may come within the isolation zone however sewer lines, connecting from the sewer main along the highway right-of-way, to the building will need to be located outside of the isolation zone. If the City intends to sell the property to Mr. Voelker the 100-foot isolation zone should be included as an easement on the property. Elevations of the proposed hotel/conference center indicate a maximum height of approximately 56 feet. The proposed B-2 zoning district permits building heights of up to 40 feet with a 60 foot maximum building height provided a conditional use permit is first secured. The applicant is requesting that the building be allowed to exceed the permitted 40 foot height within the proposed B-2 zoning district. The hotel/ conference center elevations indicate the requested building height over 40 feet is needed in order to accommodate the proposed fourth floor and architectural features along the roofline. The site is adjacent to the Kalispell City Airport, creating a potential issue with regards to building height and the proximity to the airport. The developer has hired a consultant to evaluate the height limitations within the airport affected zone and has located the building and modified the height in order to comply with the airport affected zone with regard to height limits. A 1,540 square foot casino is proposed on the southern end of the building adjacent to the Blue Canyon Restaurant. The casino would have the maximum allowable machines, 20, and gambling tables, two, under a liquor license. The floor plans for the hotel/conference center indicate access to the casino would be from either the Blue Canyon Restaurant or the vestibule/waiting area for the Blue Canyon Restaurant. Should the proposed B-2 zoning district be approved, section 27.14.030(5) of the Kalispell Zoning Ordinance requires a minimum 300 foot buffer for casinos from churches, schools, parks, residential zones, and other casinos as measured from property line to property line. Lions Park, a City owned and maintained park, is approximately 160 feet to the east of the proposed hotel/conference center property. The proposed PUD overlay district seeks to allow the height of the hotel/conference center to exceed the permitted 40 foot building height and allow a casino within the hotel/conference center which is closer than the required 300 feet from a park. Criteria for the Creation of a Planned Unit Development JPEJDJ District The following information and evaluation criteria are from Section 27.21.020(2), of the Kalispell Zoning Ordinance. The intent of the planned unit development provisions are to provide a zoning district classification which allows some flexibility in the zoning 5 regulations and the mixing of uses which is balanced with the goal of preserving and enhancing the integrity of the neighborhood and the environmental values of an area. Review of Application Based Upon PUT? Evaluation Criteria: The zoning regulations provide that the planning board shall review the PUD application and plan based on the following criteria: 1. The extent to which the plan departs from zoning and subdivision regulations otherwise applicable to the subject property, including, but not limited to, density, bulk and use, and the reasons why such departures are or are not deemed to be in the public interest; The planned unit development does not deviate from the zoning with regard to use, but deviates from the zoning with regard to height and buffer distance of casinos from parks. Hotels, restaurants, conference centers and casinos are anticipated uses in the proposed B-2 zoning district. The proposed building height of 56 feet is not prohibited but requires a conditional use permit in order to construct a building over 40 feet but less than 60 feet. The proposed casino is within 300 feet of a park located east of the subject property across Highway 93. Section 27.14.030(5) requires casinos to be a minimum of 300 feet from parks as measured from property line to property line. Therefore, the property lines of the park and property of the proposed casino location are approximately 160 feet apart. The proposed building height and casino location are deemed to be in the public's interest as they will help to accommodate a hotel/conference center proposed for the site. The City of Kalispell currently has a limited number of hotel/conference center buildings with the capacity to accommodate large conventions, 500 people or more. Approving the PUD request would expand the City's ability to host large conferences and in turn bring in more potential business for the surrounding commercial area and the City in general. The nature and extent of the common open space in the planned development project, the reliability of the proposals for maintenance and conservation of the common open space and the adequacy or inadequacy of the amount and function of the open space in terms of the land use, densities and dwelling types proposed in the plan; The extent of the common open space element is met by the perimeter landscaping along Highway 93 and landscaping shown on both the northern and southern property boundaries. The landscaping will be required to meet the minimum amount under the zoning ordinance as well as the Kalispell tree ordinance for number and size of trees. No other common open space element is required. 3. The manner in which said plan does or does not make adequate provision for public services, provide adequate control over vehicular traffic and further the amenities of light or air, recreation and visual enjoyment; The project site is located along Highway 93 South in a commercial corridor. Public 0 services including water, sewer and fire hydrants are adjacent to the project site. Vehicular traffic would be controlled by four access points along the highway into the hotel/conference center site. Prior to issuance of a building permit the developer would be required to obtain an approach permit from the Montana Department of Transportation. The proposed parking lot serving the hotel/conference center will be required to meet the on -site demand for parking for the size and various uses of the building. A cursory review of the proposed number of parking spaces to serve the project would be met by the number of parking spaces shown on the site plan. The amenities of light and air are addressed through the development standards of the proposed B-2 zoning district that deal with lot size, setbacks, building height and the types of uses allowed within the zoning district. If the PUD overlay district is approved the proposed height of the hotel/ conference center will not impact the ability for light and air to reach surrounding buildings. Due to the size of the proposed hotel/conference center and the relatively small size of the project site, 3.4 acres, it is necessary to allow the height of the hotel/conference center to exceed the permitted height of 40 feet. With a proposed maximum height of 56 feet, architectural design as well as complimentary landscaping will be important components for the site to fit and present well to adjacent properties and the highway. Surrounding buildings do not exceed the 40 foot height limit with Rosauers grocery store, located south of the project site, at a maximum height of 35 feet and the Forum building located east of the site at a maximum height of 38 feet. As of March 6, 2006, building permits for commercial structures must be reviewed and approved by the Kalispell Architectural Review Committee. The Committee reviews commercial projects with their conformity to the Kalispell Architectural Design Standards. These standards address parking, lighting, landscaping, signage and site design. The Architectural Design Standards also have a section specific to highway entrance corridors, which this site is within. In addition, pursuant to section. 27.35.090 of the Kalispell Zoning Ordinance, the Architectural Review Committee shall submit a recommendation for all applications requesting additional building heights requiring a conditional use permit. The requested building height of 56 feet would fall under this provision and the project has been reviewed by the Architectural Review Committee at their April 11 th meeting. The Committee recommended approval of the requested height. 7 The Forum building, seen in the background, is directly across Highway 93 from the. hotel/ conference center site. The Forum building is one of the taller buildings in the area. It includes three stories with a maximum height of 38 feet. The casino, at 1,540 square feet in size, makes up about 1% of the overall hotel/conference center complex. The developer would like to provide a casino on -site in order to amortize the cost of the all beverage liquor license. The casino is proposed on the south end of the hotel/conference center complex. View of Highway 93 looking north. The existing Armory Buildings can be seen in the background on the left. Lions Park is located on the right in the vicinity of the trees. Lions Park is located east of the project site across Highway 93. The Kalispell Zoning Ordinance requires casinos to be a minimum of 300 feet from parks as measured from property line to property line. The property lines of the park and property of the proposed casino location are approximately 160 feet apart. The proposed casino site is not within 300 feet of any other park, school, church, residential zone or other casino. The proposed casino and park are divided by a five lane highway. The highway in this case provides a clearly defined buffer between the two uses in that patrons of the casino are unlikely to cross the highway and linger at the park site. However, to further mitigate any impacts the casino may have on the park, the Planning Department is recommending that outside entrances to the casino be prohibited. The developer has stated in his project narrative that the casino will be free of exterior neon, the Planning Department would recommend limiting the potential signage of the casino even further. 0 This would include prohibiting the sign associated with the casino from using the following: • Any terms such as ganging, gambling, cards, dice, chance, etc. • Any reference to any associated activity or any symbols or words commonly associated with gaming. • Any words, terms, figures, art work, or features untended or designed to attract attention to the fact that a casino is on site. The original site plan submitted to the planning department showed separate entrance and exists for the casino from the adjoining parking lot to the east and through the Blue Canyon Restaurant. The site plan has since been revised after the planning department mailed out the staff report and recommendations to the Planning Board. The revised site plan has eliminated the separate outside entrance to the casino and confined the entrances to the casino to inside the hotel/conference center. Planning staff is still recommending the City Council consider including a condition restricting entrance to the casino from inside the hotel/conference center. With the above sign and entrance restrictions in place, the proposed casino will be fairly innocuous with respect to the overall hotel/conference center complex. 4. The relationship, beneficial or adverse, of the planned development project upon the neighborhood in which it is proposed to be established; Redevelopment of the existing Armory building into a commercial development would benefit the community as a whole and the immediate neighborhood by filling a need within the City for a large hotel/conference center. The greatest adverse impacts to the neighborhood would be related to increased traffic from the site. The site plan shows four approaches onto Highway 93. In order to use the approaches the developer will need to obtain permits from the Montana Department of Transportation. As part of the approach permit process the developer will need to provide information to the Department regarding the scope of the proposed project and estimated number of vehicle trips. The Department of Transportation may require additional mitigation measures along Highway 93 in order to adequately accommodate the traffic generated by the hotel/conference center facility. S. In the case of a plan which proposes development over a period of years, the sufficiency of the terms and conditions proposed to protect and maintain the integrity of the plan which finding shall be made only after consultation with the city attorney; The developer would like to start construction in May of this year in order to have an opening date of May 2007. 6. Conformity with all applicable provisions of this chapter. No other specific deviations from the Kalispell Zoning Ordinance can be identified based upon the information submitted with the application other than those addressed in the beginning of this report. 91 RECOMMENDATION The staff recommends that the Kalispell City Planning Board and Zoning Commission adopt staff report KPUD-06-1 as findings of fact and recommend to the Kalispell City Council the B-2 zoning district and PUD be approved subject to the following conditions: That the development of the site shall be in substantial compliance with the application submitted, the site plan., materials and other specifications as well as any additional conditions associated with the PUD as approved by the city council. (Kalispell Subdivision Regulations, Appendix C - Final Plat) 2. Prior to issuance of a building permit the developer shall obtain an approach permit and any other necessary permits from the Montana Department of Transportation. 3. The height of the building shall not exceed 56 feet and in no case shall the height of the building exceed the applicable maximum height limit within the airport affected area. 4. Neon lighting shall be prohibited on signs and the building. 5. Entrance to the casino shall be from inside the hotel/conference center. Entrances for the casino directly from outside the building are prohibited. 6. The signage advertising the casino shall be prohibited from using the following: • Any terms such as gaming, gambling, cards, dice, chance, etc. • Any reference to any associated activity or any symbols or words commonly associated with gaming. • Any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site. 7. That a development agreement be drafted by the Kalispell City Attorney between the City of Kalispell and the developer outlining and formalizing the terms, conditions and provisions of approval. The final plan as approved, together with the conditions and restrictions imposed, shall constitute the Planned Unit Development (PUD) zoning for the site. 10 go 3AB 3'AA 3 A m 5 —2 5—5 5— 5-147-- 0 -1 5— A c 5-18 5—' 5S 5Z 5XEA 5-27 VICINITY MAP SCALE 1 400' GATEWAY HOSPITALITY GROUP HILTON GARDEN INN & CONVENTION CENTER, A PLANNED UNIT DEVELOPMENT ON 3.4 ACRES THAT WOULD INCLUDE A 146 ROOM HOTEL, CONVENTION CENTER, RESTAURANT AND CASINO PWT DATE 3/1/06 FILE# KPUD-06-01 H:\gis\sAe\kpud06-0l.dwg ........................ Proposed site of Hilton Inn Existing casinos Parks & other public openspace Existing residential use Church, school or other community facility All other - airport, commercial, vacant, etc. feet 0 300 Ow 900 March 22, 20€36 Clay of Kalispell Planning Department 17 - 2.1 Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 751-1850 Fax: (406) 751-1858 APPLICATION FOR PLANNED UNIT DEVELOPMENT (PUD) PROJECT NAME L7Z yl 4 1(Vgl! �sfr> sQPl E T" /' ��t'<� 1. NAME OF APPLICANT: 2. MAIL ADDRESS: �12 3. CITY/STATE/ZIP:PHONE::%�'-��53 NAME AND ADDRESS OF OWNER IF DIFFERENT THAN APPLICANT: 4. NAME: 5. MAIL ADDRESS: 6. CITY/STATE/ZIP: PHONE: 7. TECHNICAL ASSISTANCE: S. MAIL ADDRESS: 9. CITY/STATE/ZIP: PHONE: — If there are dz-=-K Check One: Initial PUD proposal Amendment to an existing PUD A. B. C. ral during the review process, please list those. Property Address: " C • 5. -& W4i ,.4 Total Area of Property: _ j ` L7T % • B, Le al description including section, township & i The present zoning of the above property is: t4,f 1NMN30 DNINNVId 113dSliV E. Please provide the following information in a narrative format with supporting drawings or other format as needed: a. An overall description of the goals and objectives for the development of the project. b. In cases where the development will be executed in increments, a schedule showing the time within phase will be completed. e. The extent to which the plan departs from zoning and subdivision regulations including but not limited to density, setbacks and use, and the reasons why such departures are or are not deemed to be in the public interest; d. The nature and extent of the common open space in the project and the provisions for maintenance and conservation of the common open space; and the adequacy of the amount and function of the open space in terms of the land use, densities and dwelling types proposed in the plan; C. The manner in which services will be provided such as water, sewer, storm water management, schools, roads, traffic management, pedestrian access, recreational facilities and other applicable services and utilities. L The relationship, beneficial or adverse, of the planned development project upon the neighborhood in which it is proposed to be established g. How the plan provides reasonable consideration to the character of the neighborhood and the peculiar suitability of the property for the proposed use. h. Where there are more intensive uses or incompatible uses planned within the project or on the project boundaries, how with the impacts of those uses be mitigated. i. How the development plan will further the goals, policies and objectives of the Kalispell Growth Policy. j. Include site plans, drawings and schematics with supporting narratives where needed that includes the following information: (1 Total acreage and present zoning classifications; (2). Zoning classification of all adjoining properties; Q). Density in dwelling units per gross acre; Location., size height and number of stories for buildings and uses proposed for buildings; (5). Layout and dimensions of streets, parking areas, pedestrian walkways and surfacing; 2 �(6) Vehicle, emergency and pedestrian access, traffic circulation and control; 1Location, size, height, color and materials of signs; Location and height of fencing and/or screening; 9 Location and type of landscaping; Location and type of open space and common areas; Proposed maintenance of common areas and open space; Property boundary locations and setback lines 3 Special design standards, materials and / or colors; (14). Proposed schedule of completions and phasing of the development, if applicable; ). Covenants, conditions and restrictions; (l6 Any other information that may be deemed relevant and Q3 appropriate to allow for adequate review. If the PUD involves the division of land for the purpose of conveyance, a preliminary plat shall be prepared in accordance with the requirements of the subdivision regulations. Please note that the approved final plan, together with the conditions and restrictions imposed, shall constitute the zoning for the district. No building permit shall be issued for any structure within the district unless such structure conforms to the provisions of the approved plan.. The signing of this application signifies that the aforementioned information is true and correct and grants ap oval for Kalispell Planning staff to be present on the property for.xctutine monit in and inspection during review process. 1 ?` (�pplicant ignature) (EYa.te) 3 KALISPELL CONVENTION CENTER AND :ENTERTAINMENT CAMPUS 2/03/06 Gateway Hospitality Group is a cutting edge developer and hotel management company specializing in campuses with conference center facilities attached to a brand name hotel and entertainment venues. We currently have 7 operating hotels. We have designed and built the properties to meet the convention needs of communities with our most recent development being the Missoula Convention Center in Missoula, MT. Gateway Hospitality Group has evaluated the Kalispell market and the potential need for a conference center to attract and handle association conventions, conferences and social events. We have determined that the market can support this venture providing that the appropriate entertainment venues can be incorporated. This will provide an overall destination experience for the conventioneer and business traveler. Foremost to the success of the convention center site is the location of the facility. After evaluating numerous sites in the area, we believe the best site for the Kalispell convention site is the current Armory site on HYW 93 S. This site has great presence to HYW 93, the regional airport and the commercial growth of new business on the south end of Kalispell. Further, this location will best serve the conventioneers with over flow accommodations at the existing hotels in the downtown market. We further believe that it is advantageous to be located close to downtown so conventioneers can enjoy the charm of the community and support the local businesses. The brand name of the hotel is key to the driving business for the convention center. Hilton is the best brand name in the industry for convention business with 10 national sales offices throughout the US. The success of a conference center is not only attracting the state association market but also the national association market. The hotel and conference center cannot be a success unless the conventioneer has entertainment venues at its door step. Key to the convention market is a signature restaurant. GHG has developed in Cleveland, OH and now Missoula, MT, the highly recognized Blue Canyon Restaurant featuring a lodge style atmosphere with creative American cuisine. This style restaurant will enhance the conventioneers experience and will be a demand generator for the hotel and conference center. As a further enhancement to the campus and the overall entertainment of the conventioneer is a casino. This is one venue that offers the guest an opportunity to experience night entertainment without leaving the campus. Our casino, as designed in Missoula, will be a non smoking upscale venue that will be attractive to the conventioneer and in a class of its own. Bringing together all these elements- hotel, restaurant, conference center and casino will provide a synergy of experiences that enhance the profitability of the hotel. The development will consist of approximately 124,000 sq. ft. of which 2,000 sq. ft. will comprise the casino. The casino's understated appearance, free of exterior neon, will not distract from the charm of the community. Our design of the facility is done in good taste and style. With the cost of an all beverage liquor license in Montana, the casino is a necessary venue in order to amortize the cost of license. It is not feasible to build a conference center that must offer full service liquor without a casino operation. We are excited to begin construction in May with the venues proposed so we can start serving the community by May 2007. Submitted ker Gateway Hospitality Group City of Kalispell Planning Department 17 - 2 d Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 751-1850 Fax: (406) 751-1858 Website: kalispellplanning.eom MEMORANDUM TO: Kalispell City Staff Other Interested Parties FROM: Sean Conrad, Senior Planne RE: March 3011, Site Review Committee meeting DATE: March 28, 2006 The following Zone Change and Planned Unit Development (PUD) will go before the Site Development Review Committee in the Kalispell Building Department on March 30th. A request by Robert Voelker for a Zone Change from P-1 (Public) to B-2 (General Business) and Planned Unit Development (PUD) overlay district on a 3.4 acre lot. The requested PUD overlay district would allow a Hilton Garden Inn and Conference Center to exceed the maximum building height of 40 feet in the B-2 (General Business) zoning district and place a casino within the hotel/conference center which is within 300 feet of a City park. Specifically, the owner is requesting the hotel be allowed a maximum height of 56 feet and a casino, approximately 1,500 square feet in size, be permitted within. the 117,000 square foot hotel/conference center, which is located within 300 feet of Lions Park. The property is located at 1840 Highway 93 South and can be described as Assessors Tract 113 in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. (KPUD-06-01) If you need additional information regarding this project please call me. The proposed Zone Change and PUD has been scheduled for the April 11th City Planning Board meeting. Any comments on the proposal should be in to the Planning Department by April 3. Thank you for taking the time to review and comment. c: w/attachments: F. Ray Ruffatto, Fire Dept. Mike Baker, Parks and Rec James Patrick, City Manager P.J. Sorensen, Zoning Administrator Roger Krauss, Police Dept. Frank Castles, City Engineer Jim Hansz, Public Works Director Mark Crowley, Construction Manager Sandy Wheeler, Community Redevelopment Susan Moyer, Community Development Director Craig Kerzrnan, Chief Building Inspector Charles Harball, City Attorney CERTIFICATION APPLICANT: HILTON GARDEN INN & CONFERENCE CENTER iXW4—#VWW5W 1 0 # I I, the undersigned certify that I did this date mail via Certified Marl a copy of the attached notice to the following list of landowners adjoining the property lines of the property that is requesting a planned unit development. 4z Date • -3/ c S-T-R: 2G-28-21 Lot/Tracts# 1B Property Owner/Mail Address: Robert Welker 8920 Canyon, Falls Blvd Twinsburg, OH 44087 Joe Guilbault P.O. Box 1068 Lakeside, MT 59922-1068 AND ATTACHED LIST Robert Voelker Joe Guilbault 2004 Elsene & Jerry King Rev Tr 8920 Canyon Falls Blvd. P.O. Box 1068 165 River View Drive Twinsburg, OH 44087 Lakeside, MT 59922-1068 Kalispell, MT 59901 Whitefish Credit Union P.O. Box 35 Whitefish, MT 59937-0035 National Guard Armory Ad% USPFO for Montana P.O. Box 4789 Helena, MT 59604 Gilbert 8. Susan Bissell Meyers Family Trust 1830 Highway 93 South Kalispell, MT 59901 City Clerk City of Kalispell P.O. Drawer 1997 Kalispell, MT 59903-1997 City of Kalispell Planning Department 17 - 2" Street East, Suite 211, Kalispell, Montana 59901 Telephone: (406) 751-1850 Fax: (406) 751-1858 Website: kalispellplanning.com You are being sent this notice because you are a property owner within 150 feet of the proposed project noted below and will be most directly affected by its development. You have an opportunity to present your comments and concerns at the meeting noted below. You may contact this office for additional information. NOTICE OF PUBLIC HEARING KALISPELL CITY PLANNING BOARD AND ZONING COMMISSION April 11, 2006 The regular meeting of the Kalispell City Planning Board and Zoning Commission is scheduled for Tuesday, April 11, 2006 beginning at 7:00 PM in the Kalispell City Council Chambers, Kalispell City Hall, 312 First Avenue East, Kalispell. The planning board will hold a public hearing and take public comments on the following agenda items. The Board will make a recommendation to the Kalispell City Council who will take final action. A request by Central Bible Church for a Conditional Use Permit for the Hope Pregnancy Center located at 940 lst Ave. East. The property is zoned R-4 (Two Family Residential) and although the Hope Pregnancy Center has been operating for a number of years a conditional use permit was never issued to allow the Center to operate in R-4 zoning district. The Central Bible Church is requesting the conditional use permit to bring the Hope Pregnancy Center into compliance with the zoning district. The Center provides counseling services during normal business hours for pregnant women. The property is legally described as Lots 9, 10, 11 and 12 of Block 125, Kalispell Original Townsite, located with Section 17, Township 28 North, Range 21 West, PMM Flathead County Montana. (KCU-06-03) 2. A request by Robert Voelker for a Zane Change from P-1 (Public) to B-2 (General Business) and Planned Unit Development (PUD) overlay district on a 3.4 acre lot. The requested PUD overlay district would allow a Hilton Garden Inn and Conference Center to exceed the maximum building height of 40 feet in the B-2 (General Business) zoning district and place a casino within the hotel/conference center which is within 300 feet of a City park. Specifically, the owner is requesting the hotel be allowed a maximum height of 56 feet and a casino, approximately 1,500 square feet in size, be permitted within the 117,000 square foot hotel/conference center, which is located within 300 feet of Lions Park. The property is located at 1840 Highway 93 South and can be described as Assessors Tract 1B in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. (KPUD-06-011 3. A request by the City of Kalispell to amend Sections 27.14.030(5), 27.15.030(3), 27.16.030(8), 27.17.030(4) and 27.18.030(7) of the Kalispell Zoning Ordinance. The amendment is intended to review the 300 foot setback for casinos from churches, schools, parks, residential zones, and other casinos. The current text requires the 300 foot setback for casinos from churches, schools, parks, residential zones, and other casinos as measured from property line to property line. The City is considering amending the zoning code to maintain the requirement for a conditional use permit but either decrease or eliminate the 300 foot setback requirement. (KZ A-06-02) Documents pertaining to the agenda items are on file for public inspection at the Kalispell Planning Department, 17 Second Street East, Suite 211, Kalispell, MT 59901, and are available for public review during regular office hours. Interested persons are encouraged to attend the hearing and make their views and concerns known to the Board. Written comments may be submitted to the Kalispell Planning Department at the above address, prior to the date of the hearing, or you may contact Sean Conrad, Senior Planner at (406) 751-1850 or e-mail him at sconradakalislLell.com for additional information. No. 10382 NOTICE OF PUBLIC HEARING KALISPELL CITY PLANNING', BOARD AND ZONING COMMISSION April 11. 2006 The regular meeting of the Kalispell City Plan- ning Board and Zoning Commission is sched- uled for Tuesday, April 11, 2006 beginning at 7:00 PM in the Kalispell City Council Chambers. Kalispell City Hall, 312 First Avenue East, Ka- lispell. The planning board wilt hold a public hearing and take public comments on the follow- ing agenda items. The Board will make a rec- ommendation to the Ka- lispell City Council who will take final action. 1 . A request by Cen- tral Bible Church for a Conditional Use Permit for the Hope Pregnancy Center located at 940 1st Ave. East. The prop- erty is zoned R-4 (Two Family Residential) and although the Hope Pregnancy Center has been operating for a number of years a con- ditional use ,permit was never issued to allow the Center to operate in R-4 zoning district. The Central Bible Church is requesting the condi- tional use permit to bring the Hope Preg- nancv Center into com- pliance with the zoning district. The Center pro- vides counseling serv- ices during normal busi- ness hours for pregnant women. The property is legally described as Lots 9, 10, 11 and 12 of Block 125, Kalispell Original Townsite, locat- ed with Section 17, Township 28 North, Range 21 West, PMM Flathead County Monta- na. (KCU-06-03) 2. A request by Robert Voeiker for a Zone Change from P-1 (Pub- lic) to neral Businesand Pl ) anned Unit Development (PUD) overlay district on a 3.4 acre lot, The re- quested PUD overlay district would allow a Hilton Garden inn and Conference Center to exceed the maximum building height of 40 feet in the B-2 (Generaf Business) zoning district and place a casino with- in the hoteliconfarence center which is within 300 feet of a City park, specifically, the owner s requestinn the h3_el be allowed :, heigrt 5 'ae, and s 1,500 square feet in size, be permitted within the 117,000 square foot hotel/conference center, which is located within 300 feet of lions Park, The property is located at 1840 Highway 93 South and can be de- scribed as Assessors Tract 18 in Section 20, Township 28 North, Range 22 West, P.M.M., Flathead Coun- ty, Montana. (KPUD- 06-01) 3. A request by the City of Kalispell to amend Sections 27.14.030(5) 27.15.030(3), 27.16.030(8), 27.17.030(4) and 27A 8.030(7) of the Ka- lispell Zoning Ordi- nance. The amendment is intended to review the 300 foot setback for ca- sinos from churches, schools, parks, residen- tial zones, and other ca- sinos. The current text requires the 300 foot setback for casinos from churches, schools, parks, residential zones, and other casinos as measured from property line to property line. The City is considering amending the zoning code to maintain the re- quirement for a condE- tional use permit but ei- ther decrease or elimi- nate the 300 foot set- back requirement. (KZTA-06-02) Documents pertaining to the agenda items are on file for public inspec- tion at the Kalispell Planning Department, 17 Second Street East, Suite 211, Kalispell, MT 59901, and are availa- ble for public review during regular office hours. STATE OF MONTANA FLATHEAD COUNTY AFFIDAVIT OF PUBLICATION CHRISTINE SCHULDHEISS BEING DULY SWORN, DEPOSES AIND SAYS: THAT SIDE IS THE LEGAL CLERK OF THE DAILY INTER LAKE A DAILY NEWSPAPER OF GENERAL CIRCULATION, PRINTED AND PUBLISHED IN THE CITY OF KALISPELL, IN THE COUNTY OF FLATHEAD, STATE OF 1VONTANA, AND THAT NO. jt)jft_ LEGAL ADVERTISMENT WAS PRINTED AND PUBLISHED IN THE REGULAR AND ENTIRE ISSUE OF SAID PAPER, AND IN EACH AND EVERY COPY THEREOF ON THE DATES OF AND THE RATE CHARGED FOR THE ABOVE PRINTING DOES NOT EXCEED THE MINIMUM GOING RATE CHARGED TO ANY OTHER ADVERTISER FOR THE SAME PUBLICATION, SET IN THE SAME SIZE TYPE AND PUBLISHED FOR THE SAME NUMBER OF INSERTIONS. Interested persons are Subscribed and sworn to encouraged to attend Before me this Wlf Zq t b the hearing and make their views and con- cerns known to the Board. Written com- ments may be submit- ted to the Kalispell Plan- ning Department at the above address, prior to the date of the hearing, or you may contact Sean Conrad, Senior Notary Public f©r the State of Montana Planner at (406) 751- 1850 or a -mail him at Residing in Kalispell sconrad@kalispell.com My Co=ission expires 9/11/09 for additional informa- tion. Isi Sean Conrad Sean Conrad Senior Planner March 26. 2006.