05/01/00 Flowers to Land Board/Issues with MOUCitizens fora Better Flathead
P.O. Box 771 ® Kalispell, MT ® 59903-0771
(406) 756-8993 ® FAX (406) 756-8991 ® e-mail: citizens@digisys.net
May 1, 2000
State Board of Lands Commissioners
Box 201601
Helena, MT 59620-1610
Dear Commission Members,
On behalf of Citizens For A Better Flathead, I would like to request the opportunity to address
the board on the Draft MOU for Section 36, that I understand will be on your agenda on May 15.
Additionally, I would like in this letter to identify some of the issues our organization continues to
have concerns with in the recently revised MOU. We feel that some of these concerns should be most
appropriately addressed by your board in its role as the director of the Department of Natural
Resources and Conservation by adding additional language to the MOU. Your leadership in this
matter is particularly critical given that the DNRC does not have in place a comprehensive plan for the
development and management of transitional lands on urban fringes.
Of concern are still a number of issues that if not addressed now in the MOU process, could
have a detrimental impact on the City of Kalispell and taxpayers. We feel that this board should
strengthen this MOU so that the DNRC and local government can provide citizens clear economic
information with which they can evaluate, comment, and where needed encourage adjustments to
proposed actions on section 36. We would suggest that the following five conditions be added to this
MOU:
5. DNRC will provide the proposed lease/rent formula to be offered for the parcel proposed
for leasing and allow for comment on by the City of Kalispell prior to leasing, request for zoning, plan
amendments, or extension of municipal services,. DNRC recognizes that this information is necessary
for the City to adequately evaluate the economic cost/benefit to the city tax base prior city actions
1 leading to annexation or provision of services for the proposed development.
(Note: condition #5 is needed to allow taxpayers, business owners and the City of Kalispell to
determine if the existing Kalispell business core area can remain viable and not have to unfairly
compete with less than market value rents/leases if proposed for section 36. It is our understanding
that while the state is required to seek full market value for the appraised valuation, the starting point
for a lease/rent is only based on 10 % of the appraised valuation. Additionally the state may hold a _
lease for up to 40 years which could lock in rents at a noncompetitive rate. DNRC actions should not
result in rents that are not competitive with existing private sector rates in Kalispell. Condition #5
should encourage a positive working relationship between the city and the DNRC. This condition only
requests that information that will eventually be made public be provided up -front in the decision
making process.)
6. DNRC will seek to cooperate with local economic development efforts in making trust land
available for commercial activities. DNRC will provide the proposed bid criteria to be used and allow
for comment by the City of Kalispell prior to leasing, request for zoning, plan amendments, or
Every icy Is Important!
o'er
601, MCA, the DNRC recognizes that it is required to both seek the "highest development of state-
owned lands," and to ensure that as a result of the development "the economy of the local community
as well as the state is benefitted as a result of the impact of such development."
(Note: Condition #6 is needed to encourage sound planning and local control. Bidding criteria for
commercial development should include standards to compliment existing economic resources in much
the same way as a timber sale bid has standards or criteria established to protect environmental
resources. Sound planning is premised on the cities' ability to define preferred patterns of growth.
The City of Kalispell may be very supportive of a newly proposed bid for a high-tec business park and
the associated new job creation that it could represent. The city may not be as interested in supporting
a series of "stuff -marts" or "mega -malls" that has the potential to seriously impact the existing tax base
of the city.)
7. before beginning negotiations, all potential lessees will be required to submit evidence of
'their ability to perform satisfactorily the terms of the proposed lease.
(Note: Condition # 7 is necessary to avoid costly expenditure of staff time on speculative proposals.
Additionally the city needs to be assured that its tax liability on the property is secure as its normal
recourse for the recoupment of unpaid taxes through attachment of property is removed by the unique
ownership of improvements by the state. DNRC should recognize the potential needs to include
bonding requirements to secure this tax liability.)
8. reappraisal will be done on a calendar year identical with the Montana Department of
Revenue's appraisal cycle.
(Note: Condition #8 is necessary to ensure that appraisals and associated leases and real and personal
property taxes are established competitive with similar privately owned property. It is our
understanding the DNRC's traditional cycle for reappraisals is ten years while the state appraises on a
more requent basis.)
9. DNRC recognizes and accepts that on department -managed lands, as is the case on
privately -owned lands, financial resources must be invested in lands to produce income (i.e., building
a road in a forest to gain access to timber or digging a well for irrigation of agricultural land). The
DNRC will develop an investment strategy for realizing the income potential of the property and for
ensuring that the income from a parcel will continue.
(Note: Condition # 9 is necessary to ensure that management or enforcement of lease conditions of
these properties does not become an indirect liability on city resources such as the planning office or
economic development office.)
Once again we would urge you to carefully consider inclusion of these proposed six conditions
to the draft MOU now approved by the City of Kalispell and Flathead County. The nature of the
proposed six conditions makes action for their inclusion most appropriate by this board, rather than
the city or county, in the absence of a comprehensive policy on the management of state lands
proposed for commercial development. Please also note that we are in support of the four additional
proposed for commercial development. Please also note that we are in support of the four additional
conditions added by the City of Kalispell to the first draft MOU and now approved by both the city
and county.
Citizens For A Better Flathead has taken and appreciates the opportunity to take an active role
in the public process on the development of a plan for the future use of Section 36. Having said this
however, we look forward to the benefits of broader statewide input to be gained by now submitting
this MOU and development proposal to MEPA review. We appreciate and support the board of land
commissioner's position on the need for MEPA review established at your September meeting and
reflected in the minutes passed at this meeting as follows:
"... Governor Racicot asked if the Department intends to have full scale MEPA analysis of the
entire development not just on the lease by lease basis before it proceeds.
Mr. Rooney said it is the Departments intention to do MEPA analysis on the entirety of the
project which will be conducted before the MOU is signed. He said the plan is to go forward
with the intention that this is the plan for the section and analyze those impacts."
and reflected in the resolution passed as follows:
"Governor Racicot said the motion is to direct the Department to proceed with the preparation
and drafting of an MOU that lays out a broad framework to address the issues of a master
plan, zoning, subdivision review, MEPA, and the simultaneous suspension of any further
movement forward until such time as that MOU has been approved by the local governments
through a public hearing and this board."
Thank you for this opportunity to share these concerns with you. We ask that we be sent a
copy of the agenda for the May 15 meeting and copies of any other material or comments that have
been submitted by others or of those being prepared by the department on this topic.
Sincerely,
Mayre Flowers
Program Director
Citizens For A Better Flathead