04/11/00 Greer to Kukulski/Suggestions to DraftAPR-11-00 THU 08:20 DNRO¢UWLO FAX NO. 751228q P,02
To: Chris Kukulski
Of: City of Kalispell
Fax: 758-7771
Pages: 1, including this cover sheet.
Date: April 11, 2000
As discussed in. last nights work session with the council, we would like to Ar the following
suggestions on the MOU draft prepared by the city:
Eliminate the "whereas" paragraph pertaining to reference of city input into the
lease selection process. As pointed out in the meeting, this language may appear
to "taint" the fairness of the competitive bidding process. i
Eliminate the "whereas" statement that references compliance with all city
standards. This requirement is a "given" for all property annexed into the city. If
for some reason property is not annexed, we will coordinate project design
between city and county regulations but as currently written, the statement is too
broad and open to various interpretations and unknowns.
Please call me if you have any other questions.
From the desk of...
David Greer
NRC
751-2240
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APR-11-00 THU 08 : 20 DNRC ° "'10 FAX NO. 75122 P. 03
CHAPTER 4 - SPECIAL, LEASE PROPOSAL FORMAT
4.1 Transmittal Letter, Bid Deposit, Application Fee
The request for information is for the purpose of selecting a proposal and ne4otiating a lease, and
the SLP is not considered a binding agreement. I
Each application shall include a letter of transmittal which:
Lists the complete name and address of the proposer or
2. Lists the name, address, and business telephone number of an
representative who can be contacted by DNRC concerning the
3. Includes a statement that DNRC has the option to accept the pr1osal within 90 days
of completion of the MEPA process.
4. Includes the notarized signature of the individual authorized to b�nd the proposer. If
the applicant is a corporation, the application must include a copy of the corporate
resolution authorizing the officer or agent to bind the corporation. Applications
signed by an attorney -in -fact must include a copy of their power of attorney to bind
the principal. If the applicant is a governmental agency, the signature must be that of
a person (or persons) legally authorized to execute documents on behalf of the
governing body. Proof of authority to bind the governing body shall be included.
5. A non-refundable $25.00 lease application fee.
6. A bid deposit in the amount of 10% of the (your) total annual bid amount per lot, in
the form of a cashier's check or money order. If you are bidding on more than one
lot and your proposal is chosen for more than one lot, you will have the option to
indicate your prefered lot. Your bid deposit will be returned for the/those lot(s). The
lot will then be offered to the next highest bidder at the highest bid amount received.
Thereafter, if the successful proposer refuses award of the lease; the bid deposit
shall be forfeited. (Minimum annual bid is $.33 per square foot x square foot of
each lot).
4.2 Statement of Intent and Need
The proposer must set forth the following information in its application:
1. Evidence that the SLP is an economically viable prospect.
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4.3 Statement of Qualifications Training Experience, and Education
Each proposer shall list and describe the general partner, manager, or principal employees who
will directly oversee the operation and maintenance of the SLP, The application shall include a
statement of qualifications for each such individual involved in the operation and maintenance of
the SLP. Each statement of qualifications must discuss the person's training, experience, or
education which relates to the SLP. When the proposer proposes that separate legal entities will
possess combined management, fiscal, or legal responsibilities, the application shall describe the
legal relationship between the entities.
Where the proposer has prior experience in a project similar to that proposed in its proposal, the
proposer should describe the prior project, its present status, and the profitability of the prior
project. The proposer may list the names, addresses, and telephone numbers of references who
have knowledge of the prior project and the proposer's involvement in the prior project.
4.4 Financial Ahfltty
The proposal shall include the proposer's Dun and Bradstreet report if applicable; current
accounting balance sheet; and an income statement which discloses the proposer's assets, indebt-
edness, equity, commitments for financing, or other facts which affect the proposer's financial
ability to construct, operate, and maintain its SLP. Past bankruptcy or loan defaults must also be
disclosed. The proposer may include letters of reference or commitments for financing that it has
received from financial institutions. DNRC reserves the right to perform credit checks of all
proposers.
4.5 Construction and Operation
The proposer should describe in detail conceptual plans of the following.
1. The activities to be conducted upon the state tract;
2. The number, type, location, and estimated cost of proposed improvements to the
state tract;
3. The anticipated schedule and plan for construction of the improvements on the state
tract;
4. How the construction and operation of the SLP will impact surrounding lands and
community services; and
5. Term of lease --minimum 25 years up to a maximum of 25 yearn
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APR-11-00 THU 08:22 MC "'JLO FAX NO. 75122"" P, 05
4.6 Compensation Paid to State
The minimum annual rental for each lot is $.33 per square foot. The applicant may offer to pay
an additional rental amount in a variety of forms, including but not limited to:
l . A percentage of the annual gross revenue as reported on the applicant's federal
income tax return;
2. Additional rental in a fixed amount;
A fee for each user of the tract;
4. Rental based upon economic indices prepared by the U.S. CommLzce Department,
typically known as a Consumer Price Indicator.
The annual rental will be determined by DNRC prior to the grant of the leaselto the lessee.
DNRC reserves the right to review the rental at periodic intervals and renego late with the lessee
the rental to be paid for the lease. The final period of review and method of rntal review or
reappraisal will be negotiated with the successful lessee.
Include a summary of projected income, costs, and earnings for the first five years of the
operation of the SLP along with a discussion of the economic assumptions upon which the
projections are based. The summary must include an analysis of the annual minimum cash flow
requirements for the applicant to break even.
4.7 Structures a -ad Landscaping (Conceptual)
All proposed structures, landscaping and other improvements to the property must conform to
community standards and building codes. Proposals must be planned with adequate access,
drainage and storm water run-off retention/detention so as to meet any jurisdictional authority's
requirements. The successful applicant may be asked to provide proof of acceptance of plans as
to this requirement prior to beginning any construction.
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4.8 Conflicts of Interest
Pursuant to §77-1-113, MCA, it is unlawful for members of the State Board of Land
Commissioners and officers and employees of the Montana Department of Natural Resources
and Conservation to purchase or lease, directly or indirectly, any lands of the State. Applicants
shall disclose whether such a member, officer or employee:
1. Has assisted the applicant as counsel, consultant, representative, or agent at any time;
or
2. Has a financial interest in the Special Lease Proposal; or,
3. Has solicited or accepted employment with the applicant; or,
4. Has engaged in any financial transaction for private purposes with the applicant.
Failure to disclose any of the above -described facts where they have occurred shall result in
cancellation of the special lease if awarded to the applicant.
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