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Memo and Work SessionTheCiryof Kallspell Telephone (406) 752-6600 P.O. Box 1997 Kalispell, MT 59903-1997 DATE: November 26, 1991 Incorporated 1892 TO: Bruce Williams, City Manage City Council I FROM: Glen Neier, City Attorn RE: Meeting of November 21(,,_,Y991; r�: Tidyman's On November 21, 1991 Mayor Doug Rauthe, Larry Gallagher, Steve Cervantes, Debbie Gifford and Glen Neier attended a meeting in the Manager's office at City Hall with Sheryl Perrins, V.P. Public Relations/Fred Meyer; Larry Geller, CEO Rosauers; Ron MacIntyre, Super One Foods, Bill Shelby, URM Stores, Inc.; Betsy Braun, Fred Meyer; and Lance Loveall, Williams Law Firm. The meeting was called at the request of Lance Loveall to discuss certain objections to the Development Agreement between the City and Tidyman's. Loveall and his associates base their objections to the Development Agreement because in their opinion the City is giving Tidyman's an unfair competitive advantage by subsidizing the Tidyman's project to the tune of $500,000.00 in infrastructure improvements. Objections were raised on the Tidyman's project because of 1) siting of the grocery store with its back to Fred Meyer, 2) City's representation that the Tidyman's project would create a substantial number of local jobs. City representatives discussed the history of the Tidyman's project and indicated a willingness on the part of the City to participate in assisting meaningful development both within and without the Redevelopment Area. The City also pointed out that the City did not recruit Tidyman's to the detriment of other developers and had in fact made contact with representatives of Fred Meyer who did not respond to City inquiries. Super One Foods indicated that they had at one time secured an agreement with the Glacier Park Co. and alleged that the agreement had "mysteriously" fallen through before it could be executed. Implicit in the claim of Super One is the allegation that the City somehow influenced the Glacier Park Co. to strike a deal with Hawkins/Coles or Tidyman's, thereby injuring Super One. Without concrete evidence of such an arrangement it is probably best to treat the allegation for what it is --an unfounded claim. Finally, it was pointed out by City representatives that the City's involvement with the Tidyman's project provided Douglas Rauthe Mayor Bruce Williams City Manager City Council Members: Gary W. Nystul Ward I Cliff Collins Ward I Barbara Moses Ward II Fred Buck Ward II Jim Atkinson Ward III Lauren Granmo Ward III Pamela B. Kennedy Ward IV M. Duane Larson Ward IV B. Williams, Council Page 2 November 26, 1991 exclusively for installation of public utilities and infrastructure improvements recognized as governmental activity under the law of the State of Montana. Public utilities and infrastructure improvements have been recognized as appropriate activities under the Urban Renewal Law, and unlike land acquisition or other proprietary functions, are generally not subject to the strict scrutiny. Mr. Loveall indicated that the group had continued to pursue the collection of signatures on the referendum petition and perhaps had a sufficient number to force an election on the Development Agreement. He further indicated that no decision had been made on whether to file the additional signatures. Ms. Perrins closed by saying that none of the objectors desired to have veto power over the City's actions. GN/sh COUNCIL WORK SESSION AGENDA November 25, 1991 7:00 p.m. 1. Long & Associates 2. Tom Marvin, Local Government Energy office 3. Rex Boller-Goodale & Barbieri 4. Road crossing -1st Avenue East 5. South Kalispell Sewer 6. Alley Abandonment Request-Tidyman's & lst Interstate 7. Nativity Scene -Depot Park 8. O'Neil Zone change request 9. Sign portion -zoning Ordinance -Table I REX BOLLEK, cpl REAL ESTATE BROKER e FINANCIAL CONSULTANT Mr. Bruce Williams City Manager P. 0. Box 1997 Kalispell, MT 59903 Dear Bruce: I'm sorry about your father's illness meeting with the Mayor and Glen Neir. If proposal to you. 33 - Second Street Fast P.O. Box 937 Kalispell, Montana 59903 406-756-1343 FAX 406-752-8814 November 21, 1991 and that you were unable to attend our agreeable, Glen suggested I write a I would appreciate the opportunity to assist you in determining if the City has compensation due in accordance with the agreement with Goodale and Barbieri and the Kalispell Center Mail. Presently my first approach would be to reach some understanding and clarification on the contract and its terms by reviewing the original contracts and documents presently made available to me by Glen. Secondly, I believe we need to reach an adequate comfort level that the financial numbers used in the formula are accurate and that the calculation or formula is correctly applied. Depending on the degree of cooperation and reliability of Goodale and Barbieri's Independent Certified Public Accountants, LeMaster & Daniels, this could possibly be done very easily by phone and mail. However, this task may entail a visit to the CPA's in Spokane which would be the most expensive on my part. I would envision this being the third step or approach. My professional fees are billed at $55.00 per hour plus out of pocket costs and expenses. I would anticipate my professional fees to be in the area of approximately $1,500.00 to $2,000.00 plus expenses. Depending on cooperation received, the availibility and reliability of documentation my fees could be less, and in any event, I would consult with you prior to exceeding this amount. Mr. Bruce Williams This appears to be an interesting and challenging project and I look forward to the opportunity to be of assistance. Please contact me if you have any questions or comments. Sincerely, Rex Boller, CPA Consultant cc: Glen Neier V / City Attorney Telephone (406) 751-6600 incorporated 1892 Douglas Routhe P.O. Box 1997 Mayor Kalispell, MT 59903-1997 Bruce Williams City Manager November 18 1991 > Cum Council Members: P. A. Barclay Gary y W. Nystul Word I Assistant Manager Engineering 48 Second Avenue Cliff Collins Ward I Havre, MT 59501 Barbara Moses Ward II Re: Road Crossing - 1st Avenue East Fred Buck Dear Mr. Barclay: Word If Jim Atkinson Reference is made to your letter of November 11, 1991. Word III toLxcn Gronmo The City of Kalispell is ready to proceed with an agreement with the Burlington Northern Word III Railroad on the referenced road crossing at lst Avenue East. As I explained in my Pomelo B. Kennedy previous letter, time is critical. This street and street crossing must be finished prior to Ward Iv the retail store located between lst Ave. East & 3rd Ave. East, north of the track, is M. Duane tars«, opened. Please have all documents prepared to complete this agreement as quickly as `Nord Iv possible to avoid any delay in completing this crossing. Ve rul yours, I Robert H. Babb, L.S., P.E. Director of Public Works/City Engineer f' Iffilm pc: Bruce Williams, City Manager Bob Smith (Tidyman's) BURLINGTON NORTHERN RAILROAD mbco ENGINEERING DEPARTMENT Robert H. Babb L.S., P.E. Director of Public Works/City Engineer P.O. Box 1997 Kalispell, Montana 59903-1997 Dear Mr. Babb: Re: Road Crossing - 1st Avenue East Reference is made to your letter of November 6, 1991. P.A. Barclay Asst. Mgr. Engineering 48 Second Avenue Havre, MT 59501 406-265-0223 November 11, 1991 The estimate you received was for a 60 foot crossing (back of sidewalk to back of sidewalk), using rubber crossing material and cantilever flashing light signals. We did not estimate crossing gates. They would have been more expensive. The time frame of May 1, 1992, may be out of reason. Signals have lead time of six to eight months after all agreements are signed and authority to purchase is received. Crossing material about 120 days after the agreements. Attached please find two applications. One each for sewer and water lines. They must be completed, signed and returned. As for your statement indicating the railroad would be abandoning and removing trackage in the next two or three years or even making a decision within the next 60 to 90 days is premature. We indicated in our meeting at Kalispell that we would be more than willing to work with you on the development of your community but our customer's well being is our first concern. We will not remove the trackage unless all customers are relocated or have their business needs taken care of in a manner which is acceptable to them. Please feel free to contact me with any questions regarding this project. Sincerely, P. A. Barclay Asst. Mgr. Engineering cc: Mr. R. P. Olson T e Gly oi Kalispell (406) 752-6600 P.O. Box 1997 Kalispell, MT 59903-1997 November 6, 1991 Patrick A. Barclay Division Engineer - Montana Division Burlington Northern Railroad 235 Main Street Havre, MT 59501 Incorporated 1892 Re: Road Crossing - lst Avv. East, Kalispell, Montana Bear Mr. Barclay: Thank you for the letter confirming an installation price of $105,000 for the referenced track crossing for our new road extension. Since no details were provided as to what this price would cover nor the time frame in which the work would be accomplished, I felt this letter was necessary. First; there is a need to have a clear understanding of the crossing requirements. The city is planning on connecting the northern and southern sections of the existing 1st Ave. East. This connection will be a roadbed of 50 feet back of curb to back of curb. Immediately behind each curb will be a 5 foot wide sidewalk. This will necessitate a total of 60 feet of crossing material for this one track spur. Second; this crossing must be fully in place by May 1, 1992. This will allow the city's contractor 10 days to complete the street paving before our deadline is reached. Third; the city will need permits to place two (2) casings under the tracks. These casings would be to accommodate a 15" water line and a 36" storm sewer line. The city would like to have these bores completed prior to April 3, 1992. Please send me all of the required information and agreements necessary to facilitate these bores. Fourth; the type of warning devices have not been finalized. The existing road crossing on Main Street (U.S. Hwy 93) is about 350 feet west of this proposed crossing and has flashing warning lights only. The traffic volume on Main Street is presently estimated by this office to be three times more than will exist on this proposed crossing. To require a cross arm protection device at this new crossing seems to be an unreasonable demand by the railroad. The city will be fully satisfied with flashing warning lights protection at this crossing which should amount to a savings of city taxpayer's money. Fifth; there have been substantial discussions in regard to removal of this track within Douglas Roulhe Maya Brute Williams Cily Managci City Council Members: Gaiy W. Nysid Waid I Cliff Collins Waid I Boibaia Moses Wad R Pied Buck Wadu Jim Atkinson Word III tauten Gianmo Waid III Pamela B. Kennedy Word N M. Dwane bison Ward N a two or three year time frame. It is my understanding that a decision by the railroad is expected within the next sixty to ninety days as to whether this track will be abandoned or not. As you surely realize, if a fully rubberized crossing is installed now and the tracks are abandoned, that both the railroad and the city will be subject to criticism for the "overkill" and expense. I would hope that a "temporary" wood crossing would be installed if the tracks are going to be abandoned. As you can see by the length of this letter, several concerns exist and need to be resolved between the Burlington Northern Railroad and the City of Kalispell within the next month to accomplish the proposed crossing in the most expeditious and economical manner. I would entertain a "face to face" meeting with you should you feel that this would be beneficial to resolve these concerns. I will be anxiously awaiting your response to this letter and confirming of these outstanding item. Very t lly yours, Robert H. Babb, L.S., P.E. Director of Public Works/City Engineer PC: Bruce Williams, City Manager Bob Smith (Tidyman's Representative) - BURLINGTON NORTHERN RAILROAD ENGINEERING DEPARTMENT Mr. Robert Babb City Engineer P.O. Box 1997 Kalispell, Montana 59903-1997 Dear Mr. Babb: Per our phone conversation on Thursday, October 24, 1991. P.A. Barclay Asst. Mgr. Engineering 48 Second Avenue Havre, MT 59501 406-265-0223 October 28, 1991 The estimate for a rubber crossing with cantilever crossing signals at 1st Avenue East is $105,000. This estimate is good for 45 days and then will have to be refigured. Any questions please call. Sincerely, f /y/ P. A. Barclay Asst. Mgr. Engineering November 18, 1991 Mr. Bruce Williams City Manager City of Kalispell PO Box 1997 Kalispell, MT 59903-1997 RE: Vacation of Alley Dear Mr. Williams: We are, by this letter, petitioning the City of Kalispell to abandon and vacate the dedicated Public Alley in Block 24, Kalispell, Montana between Montana Street and Warehouse Industries, Inc. property to the south. Tidyman's/Warehouse Foods, Inc. and First Interstate Bank of Montana are the owners of more than 51% of the properties adjoining this requested vacation. Sincerely, 11AZ0,11, s�c i yman I s are ouse Foo s, Inc. STATE OF WASHINGTON COUNTY OF,�Ka Certificate of Notary ss On this 1%'`-b day of (1,3-j . , 1991, the a Notary Pub .iT c for the State or Washington, appeared -cruL.. � 01" , known to me person whose name is signed--f-o the attached representing Tidyman's/Warehouse Foods, acknowledged to me that they executed the same. 4 PUBLIC ®�59�•.pCT. 03.59�' STATE OF MONTANA COUNTY OF Flathead ) Notary Public Washington Residinq at.. Certificate of Notary ss undersigned personally to be the letter and Inc. and On this 22nd day of November , 1991, the undersigned a Notary Public for the StaEe--o-f Montana, personally appeared Robert T. Gerhardt , known to me to be the person wFiose name is signed o the attached letter and representing First Interstate Bank of Montana and acknowledged to me that they executed the same. 4N a y Public o e State o M ntana Residing at Kalispell, MT My Commission Expires 7/24/94