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12/23/99 Wolford/Proposed Regional Mall,J4t,! - 31 ate,. WOLFORD DEVELOPMENT, INC December 23, 1999 Chris Kukulski City Manager C i y of Kalispell 312 First Avenue East Kalispell, MT 59901 Re: Proposed Regional Mall Intersection of Northeast Quadrant of Highway 2 And East Reserve Drive Dear Chris: It was certainly a pleasure for Scott Williamson, Clint Wolford and me to meet you this past Monday December 20, 1999. Also, we appreciate the time you gave us to discuss our proposed project to be located at the northeast quadrant of the intersection of Highway 2 and East Reserve Drive. As I stated during our meeting, Wolford Development, Inc. has been working the Kalispell market since March of 1999 to find a site large enough to accommodate an enclosed regional mall containing approximately 750,000 square feet of retail space. This mail would have four major departrnerit stores, two of which would bernew to the market, and have another 90 specialty retail stores. In addition, we would want to have enough property to accommodate the typical peripheral development that borders a major enclosed regional mall. As I stated during our meeting, we currently have under option approximately 84 acres and would eventually like to have up to 130 acres at a minimum. During our meeting, we discussed the possibility of our annexing to the city and receiving sewer service from the city. As a result of those discussions, you requested we supply you with some estimates of the average daily sewage flow generated by the project. Since returning to Chattanooga, we have spoken to our engineers to obtain some preliminary estimates on sewage flow per day. Based on his calculations, the mall of approximately 750,000 square feet and four major department stores would generate an average daily sewage flow of 80,500 gallons. In addition, the peripheral development Four Squares Business Center • 1200 Mountain Creek Road, Suite 102 • Chattanooga, Tennessee 37405 423.874.0811 • FAX:423.874.0748 surrounding the mall, which is so vitally important to the success of the overall project and should be as strongly supported by the city, would generate an additional average daily sewage flow of 77,050 gallons. This results in a total average daily sewage flow of 157,550 gallons for both developments. Chris, as I stated during our meeting, it would be our preference to be annexed to the city of Kalispell. We feel it is important to the overall success of our development to be a part of the city. However, if it is not possible for us to be annexed at this time, we would be willing to execute an agreement with the city stating we would not protest any future annexation. In return for this agreement, we only ask the city to agree to provide us with the sewage capacity for our total development. In analyzing our proposed development, I feel it is critical to point out that we are not only a retail development, but we arc, also a major employer. Based on my past experience with developments of this size, I would anticipate the mall creating approximately 1400 jobs with an annual payroll of approximately $21,000,000. Furthermore, the peripheral development would add approximately 700 jobs with an annual payroll of approximately $10,500,000. Needless to say, none of these numbers address the additional jobs created during construction of the project. Chris, my company and I are extremely excited about Kalispell and the surrounding trade area. As I stated to you, I have had the real estate representatives of three of the major department stores in Kalispell with me within the last month. They are equally excited about the potential of this project and are anxious to move forward. For that reason, I would like to have a response from the city of Kalispell about my proposal at their earliest convenience. If necessary, I would be more than glad to come to Kalispell to meet with the appropriate city officials. Again, thank you for the time you spent with us. I look forward to receiving your response. Sincerely, Bucky Wolford