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08/08/05 Patrick/Armory Property Letter of Intentk City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7000 Fax - (406)758-7758 August 8, 2005 Gateway Hospitality Group 8920 Canyon Falls Blvd. Suite 125 Twinsburg, OH 44087 RE: Kalispell South US HWY 93 Property Letter of Intent Dear Mr. Welker, The City of Kalispell needs a conference and convention center and we would like to work with you and your organization in locating a Hilton Franchise Hotel and convention center on Highway 93 South. A portion of the property you need is owned by the City, known as the "Armory" and, potentially, a lot south of this parcel for a total of approximately 6.5 acres. The City has requested an appraisal of this property. That appraisal is scheduled to be completed by mid -September. The City needs to have the appraisal completed prior to finalizing negotiations and presenting a final purchase agreement to City Council for their consideration and approval. The City does have the ability to use Tax Increment Funds for site preparation and provide some assistance in land acquisition. The motivation for this assistance is the removal of unwanted buildings, increasing the tax base, and the construction of a convention center. Thank you for your continued interest in this project. The City of Kalispell looks forward to working with you on this project. If you have further questions please do not hesitate to contact me at (406) 758-7703 or e-mail at: inatricknkalispell.com. Sincerely, 4ames H. Patrick City Manager