03/14/00 Kukulski/Retail Development in KalispellMarch 14, 2000
Mr. Tom Barbieri
G & B Real Estate Services
201 West North River Drive
Suite 100
Spokane, WA 99201
RE: Retail Development in Kalispell
Dear Mr. Barbieri:
I would like to make you aware of an ongoing concern which is taking place in Kalispell. Where
is the retail core of Flathead Valley going to be in the future? Currently, Kalispell Center Mall
functions as this core, however, several big box retailers have already located northeast of town
along US - 2.
The City of Kalispell has been approached by a reputable mall developer who has approximately 135
acres under option in the Evergreen area. This developer appears to have built a strong working
relationship with several retail mall anchors including two that currently anchor the Center Mall.
It is my understanding that this is only one of roughly four developers who are actively courting mall
anchors (Herberger's, JC-Penny's, Sears, etc.) in an effort to construct a 750,000 square foot indoor
mall. The City is extremely concerned about the potential relocation of this core retail area.
Therefore, we would like to encourage you to work with the City in your efforts to meet the needs
of these retailers.
I have spoken with David Peterson on two occasions regarding this issue. I appreciate David's time
and efforts, but am concerned about the company's illusive nature in dealing with the City. I respect
the confidential nature of your business and do not wish to interfere. However, if the City Council
becomes convinced that a new mall is inevitable, I believe they will support the project provided that
it is within the city limits. Currently, the Council is being swayed into believing that a new mall
within Kalispell is the only way to retain its role as the business center of Flathead Valley.
The City has made many mistakes over the past several decades by assuming that it would always
remain the business and retail center of the Valley. Because of these mistakes, the City is not
prepared to stand back and watch further development take place without the City's involvement.
The bottom line is, if we (City Council and staff) become convinced that neither the Kalispell Center
Mall nor other propertied within the current core area can properly accommodate the retail interest
in the Valley, we will support the development of a new mall so long as it is either already within
the city limits or can be annexed into the city.
I know that your company has historically not had a very good relationship with the City. We have
unrelated issues that may continue to cause tension between the two parties. However, I am prepared
to set those differences aside as this issue is of utmost concern to the City. I sincerely believe that
we have an opportunity to expand the retail core of Kalispell which will benefit both yourselves and
the City if we work together.
Please call me immediately upon receiving this letter so that we may set up a time to get together and
further discuss this issue. I would be happy to come to Spokane at your earliest convenience if that
would help speed up this process. I cannot overstate the City's concern regarding this issue.
Sincerely,
Chris A. Kukulski Bill Boharski
City Manager Mayor
cc: David Peterson
City Council