Memo/Moyer/Request for ProposalCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758
REPORT TO:
FRC IM:
SUBJECT:
MEETING DATE:
BACKGROUND:
The Honorable Mayor Pamela B. Kennedy and City Council
Susan Moyer, Community Development Director
James H. Patrick, City Manager
The Armory Request for Proposal
March 13, 2006
Five parties picked up or had mailed to them copies of the Request for Proposal
for development of the above referenced site.
y Ponderosa Hotel. & Management - Prescott, Arizona
Gateway Hospitality Group, Twinsburg, Ohio
y Brian Purdy, Army Navy Surplus - Columbia Falls/Whitefish
Peak Development - Kalispell
Jeff Wilson - a local realtor
Gateway Hospitality Group was the only firm/individual to respond to the
proposal and their submittal was reviewed and ranked by a committee of five. In
many ways the maximum points available were not obtainable unless the
developer had site control and already had contracted for engineering services.
The questions did, however, provide a very good insight as to what the i_rnpact of
the project would be. The average ranking by the committee was 28 out of 36
possible points.
The offering price is $1,216,000 (as specified in the RFP) with an additional 16C
per square foot lease needed for parking. The proposal is for a complex
approximately $18,250,000 in value which has been approved by Hilton .reflecting
1.48 rooms, a conference center of 8,000 sq. ft., a 175-seat Blue Canyon restaurant
and a 2,000 sq. ft. casino.
RECOMMENDATION: It is recommended that the City Council authorize the sale of the Armory site to
Gateway Hospitality Group for acquisition and development as outlined in the
Response to the Proposal. It is further recommended that the proceeds from the
sale be placed into escrow until the council determines its wish for the use of the
sale proceeds.
FISCAL IMPACT: Based on the current trill levy, the estimated new tax base to be generated will be
in the neighborhood of $371,289 per annum. The developer currently has an
active option on a liquor license and has committed to between 112 and 1.21.
employees who will be eligible for a benefit package (some of which begins as
soon as ninety days after employment).
As suggested by Council.
Respectfully submitted,
Susan Moyer, DirectoVnt
Community Develop
Date Memo Prepared. March 8, 2006
James H. Patrick
City Manager