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2. Billboard Quota within CityCity of Kalispell Charles A. Harball Office of City Attorney Tel 406,758,7708 City Attorney 312 First Avenue East Fax 406.758.7771 P.O. Box 1997 charball@kalispeil.com Kalispell, MT 59903-1997 MEMORANDUM TO: Mayor Pamela B. Kennedy and Kalispell City Council FROM: Charles Harball, City Attorney Chris Kukulski, City Manager SUBJECT: Billboard Quota within the City of Kalispell MEETING DATE: Workshop, Monday January 12, 2004 BACKGROUND: On February 3, 1992, the Kalispell City Council amended its sign ordinances and instituted a major change in the allowance for billboard advertising within the City. Addressing the concerns of billboards amassing at the intersection of Main and Idaho, the City adopted the ordinance restricting all billboards within. 1500 feet of the intersection and setting the limit at the existing 18 billboards within all other areas in which billboards were allowed in the City. The Ordinance set a two year time period in which all billboards were to be removed from the intersection zone. The specific verbiage used was that the billboards were to be "relocated" within two years. See relevant portion of the ordinance and minutes of the meeting attached. All billboards were removed from the intersection zone within the two year limitation and all appropriate permits were obtained by the billboard companies. Then in the year 2000, Lamar Outdoor Advertising approached the zoning administrator with one of three permits still outstanding for billboards that had been removed but not yet reconstructed elsewhere in a permitted zone. The zoning administrator came to the City Attorney's office seeking an opinion whether or not the billboard could be erected, given more than two years had expired. He was told that the purpose of the ordinance was to give the billboard owners a two year period to remove the sign, but not place a limit on the time period to erect its replacement. Therefore, the sign was erected at the south end of the City on South Highway 93. One of the property owners objected to this immediately and continually communicated with the City Attorney's office about his concern that the permitting of this replacement sign was illegal as per the clear language of the ordinance. Finally, on October S, 2003 the matter was brought before Kalispell Municipal Court for a ruling on the meaning and import of the language within the Ordinance Billboard Memorandum January 7, 2004 Page - 2 1175. The council members who were on the council in 1972 testified, as did the zoning administrator. The judge ruled that the language of the ordinance was clear and unambiguous that the signs removed from the intersection zone should have been replaced elsewhere within permitted zones within 2 years and that the sign that was erected in 2000 should not have been permitted. Lamar Outdoor Advertising obtained the permit in 2000 and did not relocate two more signs that were removed from the intersection. It has stated its claim that if the City does not allow it to erect those signs it removed from the intersection, it will file a claim against the City for the value of those signs. I have attached a statement of Lamar for what it believes the value of those signs to be. RECOMMENDATION: With these facts in mind, the Council must consider and discuss whether it wants to amend its ordinance to allow the original 18 billboards to remain in the City (there are currently 16 billboards in place) or whether it wants to "purchase" the last three billboards through negotiations or litigation. FISCAL EFFECTS: The fiscal effects will vary greatly depending upon the course that Council determines to take. Respectfully submitted, g fi Charles all, City Attorney Chris Kukulski, City Manager Office of City Attorney City of Kalispell 27-24-080: REGULATIONS FOR SPECIFIC CATEGORIES OF SIGNS: G. Billboards: 1. No billboard shall exceed two hundred eighty eight (288) square feet per sign face. 2. No billboard structure shall exceed a maximum height of twenty eight feet (28'). 3. No billboard may be constructed within three hundred feet (300) of any other billboard located on the same side of the road right of way and facing the same traffic flow. Distance shall be measured along the nearest edge of pavement of the road near whose right of way the sign is located. 4. No billboard may be constructed nearer the road right of way than the applicable building setback requirement for the zone .in which the billboard is located. 5. No billboard shall be constructed along a road which is not a Federal or State highway. 6. Inwrder that the total face area;and number o.f faces of all lawful billboards within the City not be.maeased':beyond,the number of faces;oveut rrzng,on he effective datc hereof, no billboard shall be,constructed without first removing billboards equal in facearea arid number of faces. In order to administer' this provision, the Add-iinistrator shall issue a replacement permit to a ryone who permanentlyrremoves a lawfully existing billboard. The. Administrator shall mte on the replacement.permit the number of faces and face area, and the zoning district in which the `sign was located,`for every sign!face removed.: Replacemerlt'perm t9 may be transferred: No billboards sign construction permit shall be issued without a replacement', permit which corresponds to the number of sign faces to bc.replaced. The: total number of billboard.faces in the City limits shall not.exeeed e ghteen',(18), except that prciperty occupied', by billboards; which is annexed tithe City, after the effective date hereof, shall be subi&t to the provisions of Section 27-24-150 of this Article, and billboards located thereon may remain, but shall not, thercafter,:b.e relocated: 8. Whenever a parcel of land containing any billboard is rezoned, or annexed and zoned, to one of the prohibited zoning classifications, the billboard shall be removed within five (5) years of the rezoning or, in the case of annexation, within five (5) years of the date upon which a City zoning classification is imposed upon the annexed parcel; provided, that any billboards removed pursuant to this subsection may be reinstalled within any of the permitted zones listed in Section 27-24-110 of this Article, in accordance with subsection G6 of this Section. (Ord. 1175, 3-19- 1992) q10)5 435 A REGULAR MEETING CE THE KALISPELL CITY COUNCIL WAS HELD AT 7;00 P.M. MONDAY, FEBRUARY 3, 1992, IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR RAUTHE PRESIDED. ALL COUNCILMEMBERS WERE PRESENT. Mayor Rauthe called the meeting to order and led the Pledge of Allegiance. CONSENT AGENDA Council Minutes -January 21, 1992 Approve Claims per Payables Register Pledged Securities --December 31, 1991 Atkinson moved approval of the consent agenda. The motion was seconded. In the minutes, page 434, the second paragraph was corrected to reflect Kennedy made the motion. Buck and Granmo commended and thanked Finance Director Amy Robertson for the claims list included in the agenda packets. The motion carried with a vote. ADDRESSING THE COUNCIL No one addressed the council. PUBLIC HEARING Proposed Zoning Ordinance Proponents The following spoke in favor of the ordinance: Nick Haren, Kalispell Chamber of Commerce Manager, also read and distributed a membership survey which reflected the following: 44 members would support the proposal; 22 members would oppose the proposal, because they felt it too restrictive and; 6 members would oppose the proposal, because they felt it too lenient; A total of 72 Chamber members .responded to the survey within the allowable time period which constitutes nearly a 14% return. Mayor Rauthe noted he received a letter from Margaret Lekander from Wheaton's in support of the ordinance. He also noted a petition was submitted May 6, 1991, with 50 citizen signatures supporting the proposed ordinance. Jim Thompson, 160 Riverview Dative, supported but felt billboards should be prohibited. Larry McRae, outlaw Inn Manager Jim Vidal, 120 Woodland Drive, recommended placing a mechanism to the ordinance to continue ongoing studies. Bill Gould, 154 Sherry Lane, agreed with Thompson on billboards. Bill Goodman, 738 2nd Avenue East Jim Pannell, Myhre Billboards Attorney Bill Astle, representing Kalispell Regional Hospital, stated that the concern of the hospital in the new health care zone which was formally called the hospital zone is not allowing the hospital to be a use of right in that zone. 437 Williams also referred to the height requirement in the Downtown District. Can page 39-establishes 50 ft. as the maximum height requirement. Larry Gallagher suggested increasing that height to respond to some development interests regarding the old college properties. He suggested increasing that to 72 ft. Williams suggested the height be 60 ft., as a compromise, that would allow for 5 stories and then the additional space on the roof for the mechanical. There was discussion and there was consensus supporting the 72 ft. Larson spoke in favor of the entire zoning ordinance, was pleased with the process and would like an ongoing evaluation of the ordinance. Williams stated the evaluation would be done yearly at the annual Goal setting Work Shop. Moses agreed with the public .input and spoke against billboards in the city limits. There was discussion. in reference to billboards, Greer agreed with the suggested changes to clarify the ordinance on page 91, Section 27.24.080 7. (f). Page 113 Figure #1 contains typos that will be corrected. Kennedy moved to amend Ordinance 1175, Page 39, Maximum Building Height, read 72 instead of the current 50 ft. and to amend Section 27.24.080 so Sections (f), (g), and (h) read as follows: (f) in order that the total face area and number of faces of all lawful billboards within the City not be increased beyond the number of faces occurring on the effective date of this ordinance, no billboard shall be constructed without first removing billboard(s) equal in face area and number of faces. In order to administer this provision, the Administrator shall issue a replacement permit to anyone who permanently removes a lawfully existing billboard. The Administrator shall note on the replacement permit the number of faces and the face area, and the zoning district in which the sign was located, for every sign face removed. Replacement permits may be transferred. No billboard sign construction permit shall be issued without a re lacement ermit which corresponds to the number of s1 n faces to be replaced. The total number of billboard faces in the city limits of Kalispell shall not exceed 18, except that propert (g) Any billboard, except those subject to annexation as specified in _(f), supra, located within any zoning district in which billboards are prohibited shall be relocated at the billboard owner's expense to a zoning district which permits billboards within five (5) years following the enactment of this Ordinance; provided that billboards located within 1500 feet of the intersection of Main and Idaho streets shall be relocated within twenty-four (24) months following enactment of this Ordinance. 439 439 Department of Social and Rehabilitation Services Larson received a letter from the Missoula District Office Department of Social and Rehabilitation Services announcing there will be a video on the Americana with Disabilities Act shown on February 13, 1992 from 2:00-4:00 p.m. at the Kalispell SRS Conference Room for anyone interested. BUSINESS FROM MANAGER Montana Municipal Insurance Authority Conference Williams gave a report on the 2 day MMIA Conference he recently attended which included a goal setting session and general meeting. EDA Ggant Williams stated the city was notified this date that the City's EDA grant was approved in the amount of $293,000. Burl.incton__Northern Agreement Williams met, with Burlington Northern and there will be a new agreement coming forth. out of Town Williams will be out of town 'Thursday 2/5/92. Executive meeting There will be an executive meeting following this meeting. STAFF REPORTS Next Work Session 2/10/92 7:00 p.m. Next Council meeting 2/18/92 7:00 p.m. Goal Betting Work Shop 2/22/92 8:00 a.m. Nystul will be out of town 2/10-28/92. ADJOURN The meeting adjourned at 9:00 p.m. Dougla4ID. Rauthe, Mayor ATTEST: ;Z�� Amy H. Robertson, Finance Director Debbie Gifford, Clerk of Council Approved February 18, 1992 .parr-07-04 09:37A Lamar Missoula 14067 89170 P.01 . _.:.-..... rrrr P OUTDOOR AC VFRTISING MONTANA Decernbej 7, 2004 Clarks Harbaugh City Attomey P. 0. Box 1977 Kali ,-poll MT 5'i903 RE, Billboard Valuation Dear Mr. liarbaugh, As per the conversation bet.wccn you and Paul Denuchy December 6. 2(#03, the following is a Wr market value lbr lltc strrtchim lot-atcd on the Heinz properly, I have also included Orc value aftlte two peruuts promised by the city for tlic diszrtantling of the billbrhards downtown. OAC mono -pole billixtiul located on Iiwy. 93 S. ==� $73,000_00 Two Imations yet to be built ==== -- ==-- $1 lfi,CtiN1.t?Q ($5tt,000,00 arch) Total = = S 194,000.00 The aWvc prices ,,ve based on previous Ioc atiomi L,ANLAR Outdoor leas purchased from other billboard c ompanics Imized in Mont umr Please aril if you have fitly questions. Bestre ds. Rod McAlmond Lease Manager, I.AMAR Outdoor/Montana BILUNGS. 315 MAIN ST. BILLINGS, MT 59105 • (406) 252.7181 • FAX 1406) 252,7690 GREAT FALLS; P.(D BOX 1067 - GREAT FALLS, MT 59403 • (406) 453-659 • FAX (406) 453-65Q2 HELENA: P.C.BOX 151 HELEf A, MT 59624 - (406) 442-0387 - FAX (406) 442-0365 MiS50ULA; P.O. BOX 16841 MISSOULA, MT 59808 • (406) 543-6225 - FAX 1406; 728-9170 Chris Neater, President Jan. 7th 2004 To: City of Kalispell 312 1 st ave. East Kalispell, Mt 59901 Attn: Chris Kukulski City Manager Pain Kennedy Mayor P.J. Sorenson Zoning Administer Charlie Harball City Attorney Kalispell City Council We would like to file a formal complaint against the City of Kalispell. As the City is well aware there is a billboard within the city limits that the permit held by Lamar Outdoor Advertising was ordered by the Kalispell Municipal Court Judge to be "Void and at no time had any legal validity", on Oct_ 91h 2003,4see attached court order; I. That has been almost three months ago and the sign with no permit is still there, placed by Lamar Outdoor Advertising. The billboard was installed with an invalid permit that was issued on Feb. 25th 2000 by mistake. The City made a mistake and we ask that the City does what is fair and right by ordering the illegal billboard removed by Feb 2nd 2004. The Municipal Judge has ruled that the permit is voided. Thank you for your prompt attention to this matter. Chris Neater Pres. Don Burton 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Heidi Ulbricht Kalispell Municipal Court Judge Drawer 1997 Kalispell, MT 59903 IN THE MUNICIPAL COURT OF THE CITY OF KALISPELL OF THE STATE OF MONTANA, IN AND FOR THE COUNTY OF FLATHEAD DONALD R. BURTON, Plaintiff, VS. CITY OF KALISPELL, Defendant. Case No.: CV2003-20306-OT FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER This case came for hearing before this Court, sitting without a Jury, on October 8, 2003 Plaintiff was present without counsel and Charles Harball represented the City of Kalispell. Ii this case, the Plaintiff filed a complaint asking the court to revoke a sign permit issued by th{ City of Kalispell granting the relocation of a billboard. From the oral and documentary evidenct introduced by both parties, and the matter having been submitted for decision, the Court nova makes the following findings of fact: FINDINGS OF FACT 1. The original billboard that is the subject of this proceeding was located. within 1,500 feet of Main and Idaho of Kalispell, Montana. 2. March 19, 1992 a zoning ordinance governing billboards within the city limits of Kalispell became effective. The ordinance provided all billboards located within 1,500 feet of the intersection of Main and Idaho streets shall be relocated within twenty-four months. Section 27.24.080(6), K.C.C. The ordinance also provided the FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 city shall issue a replacement permit to anyone who permanently removes a lawfully existing billboard. Section 27.24.080(7), K.C.C. 3. The billboard in question was removed from the location prior to March 19, 1994. 4. On February 23, 2000 Lamar Outdoor Advertising submitted a sign permit application to relocate a billboard on private property located on Highway 93 South within the city limits of Kalispell. 5. On February 25, 2000 the City approved the sign permit. CONCLUSIONS OF LAW 1. The permit issued on February 25, 2000 is held to be void. The plain language the zoning ordinance specifies the sign shall be relocated within twenty-fc months following enactment of the ordinance. Section 27.24.080(6), K.C.C. From the foregoing conclusions of law, the Court makes the following order: IT IS HEREBY ORDERED as follows: 1. The sign permit issued on February 25, 2000 to Lamar Outdoor Advertising is and at no time had any legal validity. Dated this 9th day of October, 2003 Heidi Ulbricht Municipal Court Judge cc: Charles Harball Office of CityAttorney Donald Burton 324 Wild Goose Run Kalispell, MT 59901 FINDINGS OF FACT, CONCLUSIONS OF LAW AND OaDER