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02/24/06 Voelker/Official ResponseWG-- GA FEWAY HOSPITALITY GROUP February 24, 2006 Ms. Susan Moyer Director Community Development 248 Third Avenue East P.O. Box 1997 Kalispell, MT. 59903-1997 RE: Request for Proposal Armory Site Dear Susan, On behalf of Gateway Hospitality Group, please accept this letter as our official response to the City of Kalispell RFP to develop the Armory site. We are very excited to be a part of your community and loop forward to your favorable response to our proposal. Gateway Hospitality Group is a leading hotel management company for the development of Hilton Garden Inns with conference centers and our signature restaurant Blue Canyon and Casino. Since our inception in 2001, we have designed, developed and managed 8 properties with this concept. Our most current project in Missoula, MT includes the opening of a 146 room hotel on February 2, 2006, conference center opening March 28, and the restaurant and casino opening April 11. Our company is known for high quality product, food, service, and community involvement. We would be honored to bring the Hilton Garden Inn brand to the City Of Kalispell. Hilton is the premier industry name for combining group and association business to a destination city. The brand has received the distinguished J. D. Powers Award for excellence as the best hotel in its class for four years running. We are confident that our plan to develop the hotel, conference center, restaurant and casino on the Armory site will be the signature development as the gateway to the city. We have submitted to you our proposed layout of the complex which has been approved by Hilton and currently reflects their recommended changes in the site development. Our plans include the site layout, as well as, elevations reflecting 148 rooms, a conference center of 8,000 sq. ft., a 175 seat Blue Canyon restaurant and a 2,000 sq. ft. Casino. We have contacted a Civil engineer to confirm the height limitations and have under contract the purchase of a liquor license. We have submitted under separate cover our complete 8920 Canyon Falls Blvd., Ste 125 * Twinsburg, Ohio 44087 (T) 330-405-9800 * (F) 330-405-9898 pro forma showing the economic impact of this development as well as the employment of approximately 121 employees. Therefore, we would like to submit a request to purchase the 3.44 acres for $1,216,000 and enter into a lease agreement for the 62,500 square feet under the $ .16 cents per square foot calculation. We are excited to be a part of your beautiful city and with your approval are prepared to move forward in an expeditious manner. With the cities cooperation, we would expect to be under construction no later than June 1, 2006. Sincerely, Robert Voelker CEO PS We are Sending VIA Federal Express two sets of update colored renderings of the complex. 8920 Canyon Falls Blvd., Ste 125 * Twinsburg, Ohio 44087 (T) 330-405-9800 * (F) 330-405-9898