02/03/97 Dasen to Gallagher/Haven Field PurchaseF& wuy 3,1997
Mr. Lawnsxe caboa, Di adw
ftnn4 Econc6c it Camunity Davdepnot DqwUned
KaliVd
P.O. Box 1997
Kalispell, Montana 39903-1997
Beet western
MAW 11M
1aot a>R
MW s ar
ter W
We are happy to provide additional mforn a m about our bid for dw punhase and development of die
Haven Field/Lion Park Sum property as requested by Ross Plarnbeck of your office.
As you have indicated, the City of Kalispell is interested in the long -tam reveaue which would be
produced by such a project as much, or mat than, the up -front purchase price. However, we would h1w
to snake two points is response to your quesboas about our bid of $738,700.
1) Our bid price is V 3,700 more than the other bid you reodwi
2) Tberc is no broker fee associated with our bid. Assuming a 6% fee, this is worth same
$44,322.
Addressing questions about the proposed project itself, we expect the final billed out value of the
development and associated improvements to range from $7.8 to S8.5 million. This includes 51.5 million
in improvements related to the remodeling of the City Service warehouse property and remodeling their
current office location into a mini "shopping ceoter" complex. We wit] initiate work to obtain permits as
soon as the bid is accepted. Construction will begin as soon as factors such as weather and
construction/supply contractor scbedules allow.
After submitting our bid Last week, we asked Jackola Engineering to anahze and evaluate the potential
costs associated with the seven items we identified as potential factors m our proposal. After this
evaluation, we are confident that there would be no additional costs to the City of Kalispell relating to
any of these items as identified below:
• Storm Drain Hook -Up — Jackola determined that we can construct a sediment and od
separator tank with some retention capacity on the property and tic into the adstmg storm
drain system at the Outlaw Inn. Our request of the City would be to negotiate with the State
of Montana to allow for our storm drain to be booked into the drainage system associated
with the Hwy 93 construction project. This would not involve any conswctioa cost to the
City of Kalispell and we believe the City would be in a better position to negotiate such an
arrangenient-
Ka well's Conventlo
Best western Hott% are —oeoen0er4N a.rmo"ooraled
0 Weer Llus, Sew LbbmOdker UtMft
..,1. 1, do Cky do adequM. 1.. , ./ ...o vp to do
with i 'll •il .. l .! A..'aA r cc I• • ... • . lift• s'.. - a.. 1 • I • • .. i .WM
B .(i • •::: w (l ,::n1d
tic in '• I1..:. \YII or Cky • I .. i♦ wbkb 111,'II be .lf, ., 1 .•.'. Is
♦i..f Y 1• •n1 11 it ,•. , .f /.•1 Vl tl • L r:V 1 • •I fiftre •! .+- r! 4•--! A r1 .
Resurface 1 Third Street it Frontap In evahAtmg dw condition . Third Stred EAS
along theHavenField property, webelim fi mrt: Mr is not required Y I4is time.
However,l • r fads b000rneavailable to \1 City am die 1Jwe would appreciate ♦ 1'
comidering i4 `.1 .. for reconstructionto r• 1I..L :r1{ +ti. thepwiect.
e Re -survey — The City had advised us as part of the bid submission request process that they
would t r.• thenecessary'' for !', • • L .r to makedier+w'1useof thei IPark Street
towerSpam-
* Clock Tower Height Vida= — Our proposal inchxks an office complex with a clock
ti r exceeds thef height We wmM appreciate the City surf * f{
.•
Neighboring / i Permits you •4•' City Servicewould occupy a major
portion of the office o.:t1 • .. envision for a por6m of this project. / . the moveof their
acrosscorporate offices into the new fhcilit�, they would remodel their existing wwrhouse property
i` from the HavenField development t:• complement ti project. 1 pretirninary
conversations with the City, they are satisfied that dw% can obtain the necessary permits for
the move -
As stated in the bid, we are anxious to begin construction quickh- to meet the needs of prospective tenants.
A large book and video retailer is close to accepting a lease agreement on the 25,000 square -foot retail
space identified on Plan A. In addition, we are initiating discussions with a potential bank tenant.
We appreciate your considering our bid and look forward to working with you.