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I2. Reso 6296, Central School Ownership TransferCITY OF KALISPELL REPORT TO: Honorable Mayor Johnson and City Council FROM: Jarod Nygren, Interim City Manager SUBJECT: Central School Ownership Transfer DATE: October 20, 2025 201 lsr Avenue East Kalispell, MT 59901 Phone: (406) 758-7700 BACKGROUND: At the July 28 and September 8, 2025, work sessions the Council discussed a request from the Northwest Montana History Museum about their interest in acquiring ownership of the Central School Property. The Northwest Montana History Museum is owned by the City of Kalispell and is located at 124 Second Avenue East. The City has leased the property to the Museum since 1997 under the terms of the attached lease. Following the initial investment by the City of Kalispell in 1997, the lease identifies that the Museum is responsible for the maintenance and repairs of the premises. Following discussions by the Council and Museum, ownership transfer to the Museum would entail the following: 1. The City of Kalispell will sell the Central School property to the Northwest Montana History Museum for a purchase price of $1.00. 2. The green space to the south of the building is included in the transfer with understanding the green space will be maintained by the museum and remain open for public use. 3. Parking spaces will remain under the ownership of the City of Kalispell. 4. The handicap parking space on the north side of the building on City property will remain accessible to the Museum. 5. If the City parking lot on the north side of the building is ever used for purposes other than public parking, the City will work with the Museum on an alternative location of a Handicap parking space that meets ADA requirements. Construction of the ADA parking space will be the responsibility of the Museum. 6. Any loans taken out on the property must be approved by the Council. 7. The property shall revert back to the City if used for any purposes other than the historic museum. 8. Any future additions/and or expansions of the building footprint require Council approval. At the work sessions staff provided the provision within Section 7-8-4201 (3), M.C.A., that would allow the City to transfer the property to the Museum. Provided the Council is interested in transferring ownership of the Central School property to the Museum, staff recommends the property be transferred subject to the aforementioned conditions or amended as necessary. RECOMMENDATION: It is recommended that the Council consider Resolution 6296, a Resolution authorizing the City Manager to execute necessary documents transferring the ownership of Central School to the Northwest Montana History Museum subject to eight conditions. ATTACHMENTS: Resolution 6296 1997 Lease Agreement Museum Letter Requesting Ownership July 28 and September 8 Council minutes RESOLUTION NO. 6296 A RESOLUTION APPROVING THE SALE OF CERTAIN REAL PROPERTY COMMONLY KNOWN AS THE CENTRAL SCHOOL TO THE NORTHWEST MONTANA HISTORY MUSEUM. WHEREAS, the City of Kalispell has leased the Central School, located at 124 Second Avenue East, to the Northwest Montana History Museum since 1997; and WHEREAS, the Northwest Montana History Museum has requested to purchase the Central School for the purpose of applying for grants to maintain, preserve, and improve the structure and enable fundraising; and WHEREAS, per M.C.A. Section 7-8-420](3), if a city or town owns property containing a historically significant building or monument, the city or town may sell or give the property to nonprofit organizations or groups that agree to restore or preserve the property under the conditions that (a) requires the property to be preserved in its present or restored state upon any subsequent transfer, and (b) provides for the reversion of the property to the city or town for noncompliance with conditions attached to the transfer; and WHEREAS, the Northwest Montana History Museum is a nonprofit organization; and WHEREAS, ownership transfer to the Museum would entail the following conditions: 1. The City of Kalispell will sell the Central School property to the Northwest Montana History Museum for a purchase price of $1.00. 2. The green space to the south of the building is included in the transfer with understanding the green space will be maintained by the museum and remain open for public use. 3. Parking spaces will remain under the ownership of the City of Kalispell. 4. The handicap parking space on the north side of the building on City property will remain accessible to the Museum. 5. If the City parking lot on the north side of the building is ever used for purposes other than public parking, the City will work with the Museum on an alternative location of a Handicap parking space that meets ADA requirements. Construction of the ADA parking space will be the responsibility of the Museum. 6. Any loans taken out on the property must be approved by the Council. 7. The property shall revert back to the City if used for any purposes other than the historic museum. 8. Any future additions/and or expansions of the building footprint require Council approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The City Manager is hereby authorized to execute all documents necessary to effectuate the sale of real property commonly known as the Central School Museum to the Northwest Montana History Museum in accordance with conditions. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 20TH DAY OF OCTOBER, 2025. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk OPTION TO LEASE AGREEMENT This Option to Lease Agreement, made and entered into on 1997, by and between the City of Kalispell, a municipal corporation of the State of Montana, hereinafter referred to as CITY and the Northwest Montana Historical Village and Museum, Inc., a Montana Non -Profit corporation, organized and existing under the laws of the State of Montana, hereinafter NMHVM, WITNESSETH: WHEREAS, The CITY for and in consideration of the sum of One Dollar and other valuable consideration ($1.00 and ovc) paid by the NMHVM, the receipt and sufficiency of which is hereby acknowledged, does grant to the NMHVM the exclusive option to lease the within described premises owned by the CITY and commonly known as the Central School, more particularly described as follows: The East one-half (E '/z), Block 44, Kalispell Original Townsite, together with the building located thereon, for the purpose of operating a museum, together with exclusive concession right and privilege to charge admission, and to sell novelties, gifts, memorabilia, food products, and refreshments, and all other activities incidental to the primary purpose of operating a museum. NOW THEREFORE, the parties hereto agree as follows. The option to lease granted herein is subject to the following terms and conditions: The option to lease the premises hereby granted to the NN4 IVM shall become effective upon the date of execution of this Agreement, and shall be subject to the following terms and conditions: a. This shall terminate one (1) year after execution hereof; unless sooner exercised by NMHVM in the manner hereinafter set forth; b. Any extensions hereof shall be effective only if made in writing by mutual agreement of the NMHVM and the CITY; The CITY must agree to invest the sum, not to exceed, Two Million Five Hundred Thousand Dollars ($2,500,000) for the purpose of designing and reconstructing said premises for use as a museum, and; d. CITY will not expend funds for other than architectural fees, unless and until NMHVM, complies with e, and 1:lwp\nmhvn.wpd December 19, 1997 j jq-1() e. The NMMTM, prior to exercising this Option, can demonstrate to the CITY that it has the requisite financial capability of operating said premises as a museum for a period of two years. For purposes of this Option, NMHVM shall be considered to have met the financial viability requirements of this paragraph if the NMHVM raises, and places in escrow, the sum of Two Hundred and Fifty Thousand Dollars ($250,000) cash, and has said sum available and earmarked only for the purpose of maintenance and operation of the museum. 2. If the NMHVM fails to exercise the option to lease within the time prescribed, this Option shall lapse and the CITY may retain the above stated consideration of One Dollar ($1.00). 3. NMHVM may not sell, transfer, assign or otherwise part with any or all of its rights under this Option Agreement. 4. The Option herein granted shall be exercised in the following manner: a. On or before the termination date above, the NMHVM shall execute the Leasc .^igreement, attached hereto as Exhibit "A", and in the event of such exercise the payment shall be applied to the consideration due from the NMHVM under this Option Agreement, 5. It is further understood and agreed that time is of the essence in this Option Agreement, and that the Option must be exercised on or before the termination date, and if not so exercised, all rights of the NMHVM granted by this Option shall cease, and the CITY may retain the above stated consideration of $1.00 given by NMHVM for this Option. IN WITNESS WHEREOF, the NMHVM and the CITY have caused this Option Agreement to be executed on the day first above written. ATTEST: (i)q c: - Debbie Gifford f Clerk of Council ATTEST: I:iwpinmhvn.wpd July 29, 1997 CITY OF KALISPELL � f Douglas). Rauthe - Mayor NORTHWEST MONTANA HISTORICAL VILLAGE AND MUSEUM, INC. By: Its: STATE OF MONTANA ) ) ss County of Flathead ) On this L,: . day of , 1997, before me, a ]Notary Public in and for the State of Montana, personally app ared Douglas D. Rauthe and Debbie Gifford, known to me to be the Mayor and the Clerk of Council of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such Mayor and Clerk of Council 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 yeax fir1 above written. Notary Public, State of Montana (SEAL Residing at Kalispell, MT ' C— 6 � My Commission Expires: c� 18hr STATE OF MONTANA ) ) ss County of Flathead ) On this Z, N day of — , 1997, before me, a Nptary Public in and for the State of Montana, personally appeared wes3 _ and. known to me to be the �'� and r *c _ of the Northwest Montana Historical Village and Museum, Inc., that executed the within instrument, and acknowledged that such officers subscribed, sealed and delivered said instrument as the free and voluntary act of said corporation, for the uses and purposes therein set forth, and that he was du1_y authorized to execute the same on behalf of said corporation. N, WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year f rst above written. s y No Public, State of Montana Resi ng at Kalispell, MT t, My ommission Expires: f:\wp\i�vn.wpd July 29, 1997 3 iqq-�35G I �-w EXHIBIT "A" LEASE AGREEMENT This Lease made and entered into ;' - I � , 1991 is by and between the CITY OF KALISPELL, a municipal corporation, hereinafter CITY, and the NORTHWEST MONTANA HISTORICAL VILLAGE AND MUSEUM, INC. a Montana Non -Profit Corporation, organized and existing under the laws of the State of Montana, hereinafter NMHVM: WITNESSETH: WHEREAS, The CITY is the owner of certain real property and the improvements situated thereon located in the City of Kalispell, more commonly referred to as the Central School; and The NMHVM is an organization created by citizens for the purpose of establishing and operating a historical museum within the City limits of Kalispell; and WHEREAS, The NMHVM desires to lease from CITY the Central School premises in furtherance of its goal of establishing and operating a museum within the City of Kalispell. NOW, THEREFORE in consideration of the mutual agreements and covenants contained herein the parties hereto agree as follows: The CITY hereby leases to the NMHVM and the NMHVM hereby leases from the CITY that certain real property situated in the City of Kalispell, Flathead County, Montana, more particularly described as follows, to -wit: East 1/2 , Block 44, Kalispell Original Townsite, excluding the parking lot on the North end of said 1/2 block, together with the building situated thereon, commonly known as the Central School. 2. The term of this Lease shall be for a term of forty (40) years commencing � 2 - 1-7 , 1997 and ending 1 -- -7 , .. C -), 3. NMI-IVM shall use the Premises only for purposes connected to and consistent with the operation of a public historical museum and related services and programs, including the exclusive concession, right and privilege to charge admission, and sell novelties, gift, memorabilia, food products and refreshments, provided however, that the NMHVM may use the Premises for any other lawful purpose with the CITY' S advanced written consent, which consent shall not be unreasonably withheld. I:Iwpinmhvn.wpd December 19, 1997 4 199121135G I ig1O 4. CITY and NMHVM acknnwledge that the premises will receive- major renovation at CITY's expense, including structural, plumbing, heating and ventilation, air conditioning, electrical, floor and wall covering, general lighting and other renovation and improvements to bring the building on the leased premises to current Kalispell building code requirements suitable for the building's use as a museum and such other purposes as contemplated by Paragraph 3 of this Lease. NMHVM shall be responsible at its expense for such interior improvements as display cabinets, shelving specialized lighting, and other requirements unique to museum purposes. The rent or rents to be paid to the CITY by the NMHVM are in the amounts and on the basis and terms as follows. a. NMHVM shall pay to the CITY as rent for the Premises the sum of ten dollars ($10.00) per year t6r each year during the term of this Lease. The rent shall be payable on or before 3Zw q ,in each year. b. The NMHVM shall be solely responsible for the costs of any and all special facilities, including City special assessments, equipment and materials, and services required by the NMHVM, which by virtue of the NMHVM occupancy of the premises, NMHVM deems necessary for operation and maintenance of the premises as a museum. This however, does not grant to NMHVM the right to make any structural alterations to the building or to the premises in general without the express prior written consent of the CITY, which consent shall not be unreasonably withheld. NMHVM shall be solely responsible for all labor and services and materials necessary for NMHVM's use of premises, exterior building maintenance, grounds maintenance, including snow removal from sidewalks fronting l s` Street East and 2"d Avenue East, and all interior building maintenance including, but not limited to, heating systems, ductwork, electrical systems, conduit, plumbing, sewer, and HVAC. CITY shall assign to NMHVM all its rights under any warranties with respect to the renovation of the building, including any warranties covering roofing, heating systems, ductwork, electrical systems, conduit, plumbing, sewer, and HVAC. d. NMHVM shall keep an accurate account of all monies received through its operation upon the premises, and the CITY shall the right to audit such accounts and any :;,cords pertaining to the accounts in conjunction with the CITY' S normal auditing cycle, and at CITY expense. 6. Except as otherwise permitted by this Lease Agreement, the NMHVM covenants not to do or suffer any demolition, waste or damage, disfigurement or injury to the premises or the building or any part of it, or permit or suffer any overloading of its structural members or floors. I:Iwp\n hvn.wpd July 29, 1997 5 1997 3561 t NMHVM shall permit the authorized representatives of CITY to enter the premises or any part of it at all times during usual business hours after reasonable notice under the circumstances prevailing for the purpose of making reasonable inspections. 7. All portions of the sidewalks and passageways, and all ways of access to public utilities of the premises shall be kept ubstructed by the NMHVM and shall not be used for any purpose other than ingress and egress to and from the premises. The doors, stairways or openings into any place in the structure, including hallways, corridors and passageways shall in no way be obstructed by the NMHVM. 8. Commencing with the date of NMHV1's occupancy of the premises, NMHVM shall indemnify and save harmless the CITY from all losses, costs and expenses (including attorneys' fees) arising out of any liability, claim of liability, for injuries to persons or property sustained or claimed to have been sustained by anyone, by reason of the use or occupancy of the premises, whether such use is authorized or not, or by any act or omission of the NMHVM or any of its officers, agents, employees, patrons, guests or invitees, and NMHVM shall pay for any damage to the property of CITY, or loss or theft of property, &ne or caused by such persons. 9. Commencing with the date of NMHVM's occupancy of the premises, NMHVM shall provide the CITY a comprehensive liability insurance policy, including bodily injury and property damage, written by a company approved by the CITY, covering premises, operation and productions in amounts as stipulated below: For any one person:-------- $750,000.00 For any one accident:------ $1,500,000.00 Property Damage:---------- $ 50,000.00 a. In the event the CITY is not named as an additional named insured on NMHVM insurance policies, dice policies shall contain a provision waiving all subrogation rights against the CITY. b. Certified copies of above policy or a certificate evidencing its existence or a binder shall be delivered to the CITY upon occupancy of the building by the NMHVM. In the event a binder is delivered, it shall be replaced with 30 days by a certified copy of the policy. Each copy or certificate shall contain a valid provision or endorsement that the policy may not be canceled, terminated, or modified without giving 30 days' written notice to the CITY. C. A renewal insurance policy shall be delivered to the CITY not less than 30 days prior to a policy's expiration date except for any policy expiring on or after the termination date of this Lease Agreement. I:lwpinmvn.wpd July 29, 1997 I0. CITY shall, at its sole expense, procure and maintain throughout the term of this lease a policy of insurance, insuring against loss to the building leased herein by fire and all other risks of direct physical loss to the building and other improvements comprising a part of the premises. The amount of insurance required shall be not less than the full replacement cost of the building, as determined at the commencement of the lease, and redetermined thereafter every three (3) years. The policy of insurance shall be written with a reputable insurance agency licensed to do business in the State of Montana. If the estimated cost of restoration of the building following an insured loss exceeds fifty percent (50%) of the replacement cost, the CITY shall not be obligated to restore the building. If the estimated cost of restoration of the building following an insured loss is fifty percent (501/o) or less the CITY shall restore the building. 11. In the event any portion w' d e Central School Museum leased to the NMHVM is not vacated at the end of the term of this Lease Agreement, the CITY is authorized to remove from the premises, at the expense of the tenant, all the property of any kind which may be occupying a portion of the museum on which the terra of this Lease Agreement has expired, and the CITY shall not be liable for any damages to or loss of such property sustained either during its removal or storage and the CITY, its agents, employees, and officials, are released from all claims for such loss or damage. Upon termination of this Lease Agreement, the NMHVM will deliver to the CITY the premises in as good condition as they shall be found at the beginning of the term of this Lease Agreement, except for normal wear and tear. 12. It is agreed that all receipts and funds received by the NMHVM in operation of the museum are the property of the NMHVM. 13. The CITY assumes no responsibility for any property placed in the premises, and the CITY is released and discharged from any and all liabilities for any loss, injury or damages to person or property that may be sustained by reason of the occupancy of the premises under this Lease Agreement; and all guards or other protective services desired are the responsibility of the NMHVM. Further, it shall be the sole responsibility of NMH'v M to procure insurance against losses to any museum contents, including but not limited to, fin-nishings and fixtures, equipment, museum display items and artifacts, and any and all other property placed in the premises by the NMHVM, its agents, employees, and representatives. 14. CITY shall have the power and authority to terminate this lease for any of the following reasons: a. Recission by mutual consent of the parties; b. For violations of any of the terms and conditions of this lease; I:lwpVunhvn.wpd July 29, 1997 7 19 9 t %,,;,,5>I I q � 0 C. For using the premises for any purpose other than those authorized by this lease or for any other misuse of the premises. 15. If there is default or violation of any of the covenants or conditions in this Lease Agreement involving the failure of the NMHVM to keep the premises in good condition and repair in accordance with the provision of this Lease Agreement, or to take any action required by the terms of the Lease Agreement, then the CITY shall have the right to, but shall not be required, to make good any default of the NMHVM. Nothing in this Lease Agreement shall imply any duty upon the part of the CITY to do any work which, under any provisions of this Lease Agreement, the NMHVM is required to perform, and the performance of it by the CITY shall not constitute a waiver of NMHVM's default in failing to perform. it. The CITY may, during the progress of any work elected to be performed by it on the premises or the building, enter with contractors, agents, and employees and keep and store upon the premises and in the building or any part of it all necessary materials, tools and equipment. The CITY shall not in any event be liable for any inconvenience, annoyance, disturbance, loss of business or other damage of or to the NMHVM by reason of bringing materials, supplies and equipment into or through the building during the course of work, and the obligations of the NMHVM under this Lease Agreement shall not be a&Fected in any manner whatsoever, provided that the CITY uses reasonable care under the circumstances prevailing to avoid unnecessary inconvenience, annoyance, disturbance, loss of business or other damages of or to the NMHVM. 16. To the extent not prohibited by law, all expenses, including reasonable attorney fees and court costs, incurred by the CITY by reason of any default by the NMHVM (whether or not any proceeding is instituted) or in connection with any action or proceeding affecting this Lease Agreement or premises, shall be paid to the CITY by the NMHVM on demand. Conversely, the NMHVM shall be entitled to similar expenses incurred because of the CITY' S default, without default on the NMHVM's part. 17. All sums advanced by the CITY pursuant to § § 14 and 15 and all necessary incidental expenses, and attorney's fees in connection with the performance of any acts shall be deemed additional rent and shall be promptly payable by the NMHVM, in the respective amounts so advanced by the CITY. This reimbursement shall be made on demand. Conversely, the NMHVM shall be entitled to receive from the CITY prompt payment or reimbursement on any sum due and owing from the CITY to the NMHVM. 18. Any notice which the CITY may desire to give the NMHVM shall be deemed sufficiently given if the notice is in writing and sent by certified mail addressed to the NMHVM, at 8 - IST Street East, Rm 213, P.Q. Box 2293, Kalispell, MT 59903-2293 or at the latest substituted address by the NMHVM in writing to the CITY, or left at such address or delivered to the NMHVM representative at the premises; and the I:lwpl imhvn.wpd July 29, 1997 8 199,23,56 t i q-1(D time of giving of the notice shall be the time when the notice is mailed, Ieft or delivered as proved herein. Any notice from the NMHVM to the CITY shall be validly given if sent by certified mail addressed to CITY MANAGER, P.O. Box 1997, Kalispell, MT 59903-1997, or at such other address and the CITY shall designate by notice to the NMHVM. 19. Time is of the essence in this Lease Agreement. 20. Upon termination of this lease, NMHVM shall peaceably yield up and surrender the possession of the premises to CITY or its agents, or to subsequent lessees or grantees. 21. NMHVM waives all claims against the City for compensation for any loss or damage sustained by reason of any defect, failure, or impairment of the water or sewer system, leading to or on the premises. In the event the premises or any part thereof is damaged by fire or if for any other reason, including failure of utilities or any act of God which, in the judgement of the CITY, renders fulfillment of this Lease Agreement by the CITY impossible, then at the option of the CITY this Lease shall terminate, upon reasonable notice to NMHVM. 22. Traffic control and parking on or near the premises under this Lease Agreement shall be subject to approval of the CITY'S Public Works Department and the Kalispell Parking Commission, 23. NMHVM shall be responsible for arranging any paying for electrical, heating, water, sewer, and any other customary utility charges. 24. This Lease Agreement snail and its terms and conditions shall be binding upon and inure to the benefit of the respective parties their heirs, successors and assigns. IN WITNESS WHEREOF, the CITY and the NMHVM have caused this Lease Agreement to be executed the day and year first above written. ATTEST: AJ 1 gad Debbie Gifford Clerk of Council ATTEST: 1:1wpVunhvn. wpd July 29, 1997 Le CITY OF KALISPELL Dougla§JD. Rauthe - Mayor NORTHWEST MONTANA HISTORICAL VILLAGE AND MUSEUM, INC. By: emu' ✓t:r ..,: _ Its: STATE OF MONTANA ) ) ss County of Flathead ) On this /7 914 day of , 1997, before me, a Notary Public in and for the State of Montana, personally appeared Douglas D. Rauthe and Debbie Gifford, known to me to be the Mayor and the Clerk of Council of the City of Kalispell, a municipality, that executed the within instrument, and acknowledged that such Mayor and Clerk of Council 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 yCa r f rst above written. r Notary Public, State of Montana Residing at Kalispell, MT My Commission Expires: Y/') � Zw STATE OF MONTANA ) ) ss County of Flathead ) On this day of 1997, before me, a Notary Public in and for the State of Montana, personally a peared p Z and known to me to be the and Vile, of the Northwest Montana Historical Village and Museum, Inc., that executed the within instrument, and acknowledged that such officers subscribed, sealed and delivered said instrument as the free and voluntary act of said corporation, for the uses and purposes therein set forth, and that he was duly authorized to execute the same on behalf of said corporation. IN WITNESS V TIEREOF, I have hereunto set my hand and axed my Notarial Sea! the day and year first above written. 1:lwpinmhvn. wpd July 29, 1997 10 I 'Ast GLACIER SANK September 15, 1997 Clarence Krepps City Manager City of Kalispell P4 Box 1997 Kalispell, MT 59903 Dear Mr. Krepps: 14tc) Po Sox 27, Kalispell, MT 59903-0027 Phone: (406) 756-4529 Fax: (406) 7564204 Please be advised that Glacier Bank has on deposit for Northwest Montana Historical Society, in account #01-324574-2, the sum of Two Hundred Fifty Thousand and no1100 Dollars ($250,000.00). Said sum has been received and shall remain upon deposit. Said funds shall only be released upon the direction of the Northwest Montana Historical Village and Museum, Inc. Sincere(�a! Northwest Montana History Museum nwmthistory.org 1406-756-8381 124 Second Ave. East Kalispell, MT 59901 Mr. Douglas Russell Kalispell City Manager Kalispell, Montana 59901 Dear Mr. Russell, May 22, 2025 Thank you for the opportunity to pursue further discussion with the city about our interest in acquiring ownership of the Central School property, at 124 Second Ave. E., in Kalispell. As proud stewards of the iconic 1894 Central School, we consider the structure and site our flagship exhibit. a precious artifact of Kalispell's history. But we also must focus on the. future_ Presently, there are many issues with the building that we as a board are willing to tape on. We will he happy to provide you with a list if requested. Nonprofits have access to foundations and other preservation -focused funding sources. Tax-deductible, well-defined capital campaigns attract benefactors. But we are confronted with the reality that we don't own the facility and our tenure here is not ensured. We often do not meet eligibility criteria. Private donors are scarce for capital improvements to leased facilities o«ned by go-,ernments. Ownership of the property will help the museum apply for grants to maintain, preserve, and improve the structure, enable fundraising for a museum -owned permanent asset, and put the nonprofit on a more stable foundation. The minutes of the museum's board of directors formal resolution showing unanimous support for this request, dated May 8, 2025, are attached. Thank you for considering our proposal to accept the property (assessor no. E038913) from the city. We are grateful for the opportunit% and hope that the City of Kalispell will be amenable to this transfer of ownership. Laurie Happ, President of Board of Directors A.J. K' g, Boar tuber Margaret . Davis, ExecutiNe I)irector CITY COUNCIL KCITY(), WORK SESSION MINUTES ALISPELL July 28, 2025, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East Video of this meeting with time stamped minutes can be found at: https://www.kalispell.com/Meetin Vg ideos. A. CALL TO ORDER Mayor Johnson called the meeting to order at 7 p.m. B. ROLL CALL Mayor - Mark Johnson: Present Council Member - Kari Gabriel: Present Council Member - Sandy Carlson: Present Council Member - Sam Nunnally: Present Council Chair - Chad Graham: Absent Council Member - Jed Fisher: Present Council Member - Sid Daoud: Present Council Member - Jessica Dahlman: Present via video conference Council Member - Ryan Hunter: Present Staff present included City Manager Doug Russell, City Clerk Aimee Brunckhorst, Parks and Recreation Director Chad Fincher, and Development Services Director Jarod Nygren. C. DISCUSSION Ownership Request from Northwest Montana History Museum for Central School Property A a City Manager Doug Russell began the staff presentation. 00:03:06 Mayor Johnson asked for a summary of state lax related to the disposition of property. Manager Russell provided state law information. 00:04:35 Councilor Nunnally asked questions related to parking within the adjacent lot. 00:05:05 Council Member Hunter asked questions related to state law and spoke regarding the possibility of risk and potential restrictions. Manager Russell talked further about the options available. 00:07:19 Council Member Hunter asked for further clarification. Page 1 of 5 Kalispell City Council Minutes, July 28, 2025 00:07:50 Council Member Hunter asked about the museum's concerns related to raising funds and whether a lease renewal would affect those concerns. He provided discussion about fund possibilities. 00:10:05 A.J. King, Public Comment King, a Board member for the NW Montana History Museum, spoke regarding Council Member Hunter's questions related to loans. 00:11:18 Council Member Dahlman said she has been in attendance online. 00:11:48 Council Member Daoud provided discussion and said he would like to learn more about the proposal. Mayor Johnson asked to hear from the NW Montana History Museum Board. 00:12:39 AJ. King, Board member for the NW Montana History Museum explained he and other members have ties back to when the building was Central School. He explained their request to take over ownership of the building and listed maintenance issues they are currently facing and needed upgrades. 00:15:35 Council Member Carlson asked about visitation numbers at the Museum and visitation growth. 00:16:01 Margaret Davis, Executive Director of the Museum provided information about visitation, the events they put on, and explained they also rent out the facility. She talked about their needs for a climate -controlled room, and heating and cooling issues. She spoke regarding the donations and membership they have. 00:18:21 Council Member Hunter asked about the prevalence throughout the state for Museum ownership. He then asked about possibilities related to loan default. The Mayor, Council, and Board member King discussed loan scenarios. 00:22:48 A legal opinion was requested on how a loan default scenario would play out. Council Member Hunter provided further discussion. 00:24:25 Council Member Fisher provided discussion related to board succession and planning. 00:25:25 King spoke regarding possible deed provisions related to loans. 00:27:22 Mayor Johnson provided discussion. 00:28:39 Council Member Daoud provided discussion. 00:29:10 Curt Anders, Board member for the NW Montana History Museum talked about the difficulties of getting loans and grants when the Museum does not own the building. 00:30:37 Council Member Nunnally asked questions about future expansion plans. Page 2 of 5 Kalispell City Council Minutes, July 28, 2025 Davis answered questions about expansion and then spoke to what volunteers have accomplished. 00:32:32 Council Member Nunnally asked about what the museum needs and wants for the future are and asked questions about the parking lot and grounds around the museum. He then provided discussion. 00:34:29 Council Member Hunter asked whether there are any barriers to the City serving as a pass through for grants and how a pass -through grant would be managed. 00:36:49 Council Member Hunter asked further questions about loan scenarios. Mayor Johnson and Council Member Hunter provided discussion about possibilities related to loan scenarios. Mayor Johnson asked Council for their direction on this matter. 00:39:59 Council Member Nunnally provided discussion in support of the Museum. 00:41:28 Council Member Carlson spoke regarding her experiences at the Museum and in support of the Museum. 00:42:19 Council Member Fisher provided discussion in support of this item. 00:42:35 Council Member Daoud provided discussion in support of this item. 00:42:51 Council Member Hunter provided discussion in support but would like a legal opinion prior to a decision. 00:44:43 City Manager Russell talked about the parking lot and the green space next to the museum. 00:46:05 Mayor Johnson summarized the Councils direction. City Manager Russell talked about next steps and questions to be answered for Council. 2. Kidsports Complex Naming Request 4� City Manager Russell provided the staff report on this matter. 00:49:21 Mayor Johnson asked about lease details and history related to Kidsports. Manager Russell provided lease history. 00:51:01 Roy Beekman, Public Comment Beekman of 241 Commons Way provided an overview of previous statements made to Council on this item and explained the support he has heard from community members since then. He talked about the legacy made by Dan Johns at the complex. Page 3 of 5 Kalispell City Council Minutes, July 28, 2025 00:55:19 Mayor Johnson provided discussion in favor of this item and the importance of preserving history. He talked about working with Dan in the past. 00:58:58 Council Member Carlson talked about hearing Dan Johns presenting to Rotary several times a year and provided discussion in favor of this item. 00:59:36 Council Member Nunnally provided discussion in favor of this item and then asked what the fiscal impact would be to making the change. 01:00:47 Council Member Hunter provided discussion in favor of this item. 01:01:17 Council Member Fisher provided discussion in favor of this item but cautioned Council to develop a policy related to changing park or amenity names. He referred to a policy developed by Flathead County. 01:06:09 Council Member Daoud provided discussion in favor of this item. 01:06:59 Council Member Gabriel provided discussion in favor of this item. 01:07:54 City Manager Russell asked for guidance on the name. 01:08:13 Justin Sliter, Public Comment Sliter, President of Kidsports talked about Dan Johns and said that the Kidsports Board would like to have a say in the naming of the Kalispell Youth Athletic Complex. 01:10:04 Council Member Daoud asked that the Board deliberate on the name they would like to use. 01:10:30 Beekman explained that since this is a collaboration between Kidsports and the City he would suggest Dan Johns Kalispell Youth Athletic Complex. 01:11:44 Council Member Hunter provided discussion about the naming of the facility. D. PUBLIC COMMENT Mayor Johnson opened public comment. Melanie Golie, Public Comment Golie of St. Matthews Catholic School referred to a letter sent to Council requesting that the City recognize teacher, Sister Judy Lund and explained why they would like the City to honor and thank her. A celebration will take place after Labor Day. Mayor Johnson said he would be in touch. E. CITY MANAGER, COUNCIL, AND MAYOR REPORTS City Manager Russell provided the following report: Staff will begin working on the two items tonight to move them forward. Staff will begin working on a naming policy. Page 4 of 5 Kalispell City Council Minutes, July 28, 2025 01:20:16 Council Member Fisher explained he has received three calls today about speeding and truck traffic on South Woodland Drive. City Manager Russell talked about sharing that information with the Police Department. 01:22:18 Council Member Daoud talked about passing the Conrad Mansion at dusk and seeing a deer utilize the crosswalk. F. ADJOURNMENT Mayor Johnson adjourned the meeting at 8:22 p.m. Ai ee Brunckhorst, City Clerk Minutes approved on August 18, 2025 UPCOMING SCHEDULE Next Regular Meeting — August 4, 2025, at 7:00 p.m. — Council Chambers Next Work Session — August 11, 2025, at 7:00 p.m. — Council Chambers PARTICIPATION Watch council sessions live with the agenda and supporting documents or later with documents and time stamped minutes at: https://www.kalispell.com/MeetingVideos or live or later on YouTube at: www.kalispell.com/YouTube. The City does not discriminate on the basis of disability in its programs, services, activities, and employment practices. Auxiliary aids are available. For questions about disability accommodation please contact the City Clerk at 406-758-7756. Page 5 of 5 CITY COUNCIL KCIT ( WORK SESSION MINUTES ALISPELL September 8, 2025, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East Video of this meeting with time stamped minutes can be found at: https://www.kalispell.com/Meetin Vg ideos. A. CALL TO ORDER Mayor Johnson called the meeting to order at 7 p.m. B. ROLL CALL Mayor - Mark Johnson: Present Council Member - Kari Gabriel: Present via video conference Council Member - Sandy Carlson: Present Council Member - Sam Nunnally: Present Council Chair - Chad Graham: Present Council Member - Jed Fisher: Absent Council Member - Sid Daoud: Present Council Member - Jessica Dahlman: Present via video conference Council Member - Ryan Hunter: Present Staff present included Interim City Manager and Development Services Director Jarod Nygren, City Attorney Johnna Preble, City Clerk Aimee Brunckhorst, Assistant Fire Chief Ken Whitehair, Parks and Recreation Director Chad Fincher, and Police Chief Jordan Venezio. C. DISCUSSION Ownership Request from Northwest Montana History Museum for Central School PropeM W a 07:00:46 PM (00:01:30) Interim City Manager Nygren presented the staff report. 00:06:03 Mark Johnson asked questions about the historic nature of the building. 00:06:31 Nygren answered questions. 00:07:17 Mark Johnson asked further questions about potential restrictions. 00:07:35 Council Member Nunnally asked questions about the parking being referred to in the report. 00:08:15 Council Member Hunter provided discussion about restrictions related to the historic nature of the building. He then asked questions related to loan ratio restrictions. Page 1 of 4 Kalispell City Council Minutes, September 8, 2025 00:09:25 Council Member Hunter provided discussion wanting a loan to value restriction. 00:09:57 Council Member Daoud asked questions about the value of the property and provided discussion related to restrictions insuring it stays a museum and historic restrictions. 00:11:18 A.J. King, Public Comment Board member A.J. King with the NW Montana History Museum said they would like to ensure that the handicapped entrance and parking is maintained on the north side. He then spoke regarding the loan to value restrictions and further loan details he believes should be considered. Staff asked for direction regarding restrictions and said they will bring this item forward in the future as an action item. 2. Third Party Ambulance Billing � a Interim City Manager Nygren presented the staff report and introduced new Assistant Fire Chief Ken Whitehair. 00:19:23 Council Member Graham asked about transition expectations. Assistant Fire Chief Ken Whitehair answered questions. 00:19:58 Council Member Daoud asked about costs. Interim City Manager Nygren answered questions. 00:21:39 Council Member Daoud asked further questions about the cost of this service. 00:22:08 Council Member Hunter provided discussion about possible ethical considerations. Interim City Manager Nygren answered questions. 00:23:57 Assistant Fire Chief Whitehair explained what staff would be responsible for and what the third -party company would be responsible for. Mayor Johnson provided discussion in favor of moving forward with this item. 00:25:57 Interim Manager Nygren provided further information. 00:26:32 Council Member Nunnally provided discussion. 00:26:45 Council Member Daoud asked questions about the billing process. 00:27:13 Council Member Hunter continued questions about the billing process. 00:28:12 Council Member Carlson asked about insurance claim filing. Page 2 of 4 Kalispell City Council Minutes, September 8, 2025 00:28:48 Several Council Members provided discussion in favor of moving forward. 3. City Manager Recruitment 0 a 07:28:53 PM (00:29:37) Human Resources Director Denise Michel presented the staff report. 00:31:02 Council Member Daoud provided discussion that he believes that this position should live in the City. 00:31:40 Council Member Hunter provided discussion related to providing a grace period to come into the City. He would be in favor of the salary range provided. 00:32:31 Council Member Graham provided discussion related to residency. 00:33:28 Council Member Carlson provided discussion related to residency and considerations of timing constraints. She would like to see the same considerations provided 00:34:38 Council Member Nunnally provided discussion related to city resident requirements decreasing the size of the pool. 00:36:05 Council Member Daoud provided discussion in favor of residency requirements but would be in favor of a grace period. 00:38:06 Council Member Nunnally and Daoud provided further discussion about residency requirements. 00:39:13 Council Member Gabriel provided discussion on residency requirements. 00:41:08 Council Member Hunter continued discussion regarding residency requirements. 00:41:50 Mark Johnson provided discussion regarding residency requirements. 00:45:45 Council Member Hunter provided discussion regarding residency requirements. 00:46:32 Council Member Carlson provided further discussion regarding residency requirements. 00:47:17 Council Member Daoud provided further discussion regarding residency requirements. Mayor Johnson provided further discussion regarding residency requirements. Council majority confirmed they would prefer residency but are open to negotiating city residency and are comfortable with the salary range provided. A PUBLIC COMMENT Mayor Johnson opened public comment. Seeing none, he closed public comment. Written public comment received can be viewed at www.Kalispell.com/publiccomment. Page 3 of 4 Kalispell City Council Minutes, September 8, 2025 E. CITY MANAGER, COUNCIL, AND MAYOR REPORTS Interim City Manager Nygren provided the following report: • Staff will continue to work with the NW MT History Museum to put together an ownership transfer plan for a future meeting. • The ambulance billing item will be on the next agenda and will include the proposal which should answer any further questions. 00:51:11 Mayor Johnson spoke regarding his residency. He then talked about an invitation he received from an Eagle Scout for this Saturday at Lone Pine State Park. 00:52:25 Council Member Carlson spoke to the recent death of Dan Johns and offered condolences to his family and friends. F. ADJOURNMENT 00:52:46 Mayor Johnson adjourned the meeting at 7:52 p.m. R \ 1 1892 Brunckhorst, City Clerk Minutes approved on ©C.`ft/Dj2Y Zo ZS UPCOMING SCHEDULE Next Regular Meeting — September 15, 2025, at 7:00 p.m. — Council Chambers Next Work Session — September 22, 2025, at 7:00 p.m. — Council Chambers PARTICIPATION Watch council sessions live with the agenda and supporting documents or later with documents and time stamped minutes at: https://www.kalispell.com/MeetinaVideos or live or later on YouTube at: www.kalispell.com/YouTube. The City does not discriminate on the basis of disability in its programs, services, activities, and employment practices. Auxiliary aids are available. For questions about disability accommodation please contact the City Clerk at 406-758-7756. Page 4 of 4