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03/22/00 Rauthe/Wolford MallDarlene Jump Rauthe 687 Scenic Drive Kalispell, MT 59901 March 22, 2000 Mayor Boharski City Manager Kukulski City Council of Kalispell P.O.1997 Kalispell, MT 59903 Dear Mayor Boharski, Manager Kukulski, and Council members: My family and I own the land which is the preferred site for the proposed 750,000 sq. ft. mall north of Reserve Drive on LaSalle. We have been advised by Mr. Wolford that the construction of this facility requires that "the City of Kalispell" furnish sewer services. We also have been recently advised that while the City of Kalispell acknowledges the current sewer facility has sufficient capacity to service this development, the City through its manager and various members of the City Council are urging Mr. Wolford and his company to abandon the purchase of my family's property and relocate this mall and its surrounding development to properties suggested by the City. My family, or most of us, have lived many years in the Flathead Valley. While my deceased husband's trucking business is located outside the city, we have employed many city residents in that operation. We have utilized city businesses for supplies and services. We have shopped within the City of Kalispell. Several of our family members have lived and live within the city limits of Kalispell. In short, we have looked to the City of Kalispell as the economic center in which we have spent our monies. We find it somewhat shocking that the City of Kalispell would now "turn against us," interfere with our sale, and attempt to sell properties determined by the City to be appropriate, all to our detriment. It is likewise shocking to us that the City of Kalispell through its elected officials, none of whom are experts in the world of mall development, now seek to impose their viewpoint as to the location of a mall of this scope and size on Mr. Wolford, a known national expert in mall development. My deceased husband, John Jump, purchased this property many years ago. Since the acquisition of that property, to the best of my knowledge, most major developers looking at developing any sort of commercial enterprise of any size have contacted us, have attempted to acquire these same properties, and have advised that for a development of this scope these properties constitute the ##1 site in the north Flathead Valley. My family and I have opted not to sell properties to other developers as none of the proposals made to us (and we have had multiple proposals) have been from developers with the financial capacity, know how, and proven track record of Wolford Development. Our family is upset that city officials or at least some of them feel they are more qualified to determine where a regional mall should go. The many developers attempting to buy our site have done substantial market studies. The market has dictated where this mall is desirable. We would urge the City Council to accept that determination by the experts, let market forces drive the site selection, and approve this mall. In the Daily Inter Lake of March 17 we noted that even though the properties are outside the city limits and thus, in the same position as our property, the City is now urging a business development on state lands located north of the City and west of Highway 93. We find it shocking that the City would propose this type of development when it has a first-class development on the table seeking approval. In addition, the development you are announcing for a business development outside the city limits will require the contribution of City monies for support. I can assure you, Mr. Wolford does not ask for City monies for his project. I originally understood that the land subject to this mall development could be annexed to the City, even though it is not contiguous to already annexed land. it was and is my understanding that annexation has been done in other areas not contiguous to the City. I have recently been advised that annexing non-contiguous land may not be legally appropriate or may be subject to attack. I do not understand all of the details of the laws and regulations pertaining to annexation. I am advised, however, that Mr. Wolford has agreed to waive any objection to annexation. I also understand that even if the land on which this mall is proposed is not annexed to the City, Mr. Woldford may be amenable to paying fees to the City in consideration of the supply of sewer services exactly as if he were in fact annexed. Not only would this constitute substantial income to the City, but would give to the City a larger base for future tax assessments in the event improvements are needed in the overall sewer system. It is readily apparent from my conversations with people involved or knowledgeable about matters affecting this decision, to include Mr. Wolford and various residents of Evergreen, that one, if not the major issue behind the City's conduct to date in their review of Mr. Woldford's proposal is the underlying animosity between Evergreen and the City of Kalispell. My family and I submit this should not be a factor in your decision. The north Flathead Valley is a single commercial area. As indicated, my family uses and looks to Kalispell as the economic center. While you have expressed token concern about the effect that this mall may have on the Kalispell City Mall and to downtown Kalispell, these concerns are obviously not real. You have urged Mr. Woldford to acquire properties for the development of this mall north of Kalispell, south of Kalispell and probably west of Kalispell. Were there to be a mall of this size and scope in any one of the areas you have been suggesting, the impact on the city mall and downtown Kalispell would be exactly the same. Your actions appear to be solely political. We are very offended that you would act in this fashion to the detriment of a family which has lived, worked, and spent our money in this area for many years. We urge you to put aside your very personal political concerns and grant to Mr. Wolford the utilization of sewer services in accord with his application. Sincerely, Darlene Jump Rauthe