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09/20/01 Memo/Kukulski/Review of ProposalREPORT TO: FROM: SUBJECT: City p of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 Honorable Mayor and City Council Chris A. Kukulski, City Manager Review of the Wolford Proposal in the Context of the New Growth Policy MEETING DATE: September 20, 2001 BACK GROUND: Attached is a DRAFT Resolution that Charlie Harball developed as a result of a meeting held yesterday afternoon with Bill Astle, Charlie Harball, Tom Jents, Narda Wilson, P.J. Sorenson and myself. The resolution is meant as a guide for the Council to move forward in a clear and defined manner with the Wolford Master Plan Amendment request. The resolution is not etched in stone and can be amended as the Council sees fit. If the Council so chooses, I would place the Resolution on the next regularly scheduled city council meeting (October 1, 2001). RECOMMENDATION: The Council consider the merits of the draft Resolution and move it forward to be placed on the October 1, City Council agenda. FISCAL EFFECTS: ALTERNATIVES: Respectfully submitted, Chris A. Kukulski City Manager None As suggested by the Council. Report compiled September 20, 2001 0-� 0 1#�Rf A RESOLUTION TO DIRECT THE APPLICATION TO AMEND THE CITY/COUNTY MASTER PLAN TO CHANGE THE DESIGNATION ON APPROXIMATELY 144 ACRES OF LAND LOCATED GENERALLY ON THE EAST SIDE OF LASALLE ROAD, NORTH OF EAST RESERVE DRIVE AND WEST OF GRANITE VIEW SUBDIVISION TO THE TRI- CITY PLANNING COMMISSION FOR STUDY AND REPORT TO THE KALISPELL CITY COUNCIL NO LATER THAN OCTOBER 15, 2001. WHEREAS, the Kalispell City -County Master (Comprehensive) Plan was originally adopted by the Kalispell City Council on October 17, 1974 and by the Flathead Board of County Commissioners on October 14, 1974, and WHEREAS, a comprehensive amendment and update to the Kalispell City -County Master (Comprehensive) Plan was adopted by the Kalispell City Council on April 7, 1986 and by the Flathead Board of County Commissioners on February 6, 1986, and WHEREAS, the Montana Legislature, in 1999 determined at Section 36, Ch. 582, L. 1999, that: "A governing body that adopts a master plan pursuant to Title 76, chapter 1, before October 1, 1999, may adopt zoning regulations that are consistent with the master plan pursuant to Title 76, chapter 2, part 2 or 3, until October 1, 2001" and that any changes to the existing master plan (growth policy) may be deemed invalid, if made after October 1, 2001; and WHEREAS, the City of Kalispell submitted a proposed draft of a Growth Policy to Flathead County for its review and discussion on the AAND day of AuGu9'T , 2001; and WHEREAS, Wolford Development Inc. and Stokes and Associates, on the 9th day of July, 2001, made an application to amend the existing Master Plan (Growth Policy)of 1986 by changing the designation on approximately 144 acres of land located generally on the East side of LaSalle Road (U.S. Highway #2), North of East Reserve Drive and West of Granite View Subdivision, described as Assessor's Tracts 7, 7G, 7J, 7F, and 3BA, Section 28, Township 29 North, Range 21 West, P.M.M., Flathead County, Montana, from "Industrial", "Agricultural" and "Residential" to "Commercial" and WHEREAS, on August 14, 2001, the Kalispell City -County Planning Board held a public hearing, after due and proper notice, received public comment upon, and received Flathead County Planning and Zoning Office report #KPA-01-102, which evaluated the proposal based upon the goals and objectives of the Master Plan, the purpose of zoning and current circumstances in the planning jurisdiction, and WHEREAS, at the conclusion of said public hearing and after consideration of the proposed amendment, the Kalispell City County Planning Board, adopted report #KPA-01-102, as the findings of fact and recommended approval of the proposed master plan amendment, and WHEREAS, the professional planning staff of the Tri-City planning commission is charged with the responsibility of providing the City Council of the City of Kalispell with its expert advice on planning matters subject to its evaluation of proposals based upon the goals and objectives of the Master Plan (Growth Policy), the purpose of zoning and current circumstances in the planning jurisdiction; and WHEREAS, the professional planning staff of the Tri-City Planning Commission has not yet had the opportunity to review the application made by Wolford Development Inc. and Stokes and Associates and has therefore made no report to the City Council of the City of Kalispell; and WHEREAS, Resolution No. 4655 made by the City Council in which it was resolved to hold a public hearing and consider the proposed amendment based upon the recommendation of the staff report of the Flathead County Planning and Zoning Office 4KPA-01-102 and the recommendation of the Kalispell City -County Planning Board was premature without the necessary input from its own professional staff at the Tri- City Planning Commission; and WHEREAS, it is apparent that it is the intent of the State Legislature to consider the structure of any Master Plan that pre-existed October 1, 1999, to be ineffective after October 1, 2001, the application made by Wolford Development, Inc. and Stokes and Associates must therefore be considered in light of the goals and objectives of the Master Plan adopted in 1986, but with the apprehension that any such amendment can only impact the future Growth Policy yet to be adopted; and WHEREAS, the application made by Wolford Development Inc. and Stokes and Associates must be addressed by the City Council of the City of Kalispell in a timely fashion after it receives the necessary information to make a fully informed decision on this application NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. That pursuant to the requirements of due diligence the City Council of the City of Kalispell refers the proposed amendment to the Kalispell City -County Master Plan to the Tri- City Planning Commission for its review and study and directs the Commission to provide a staff report to the City Council no later than October 15, 2001. SECTION II. That the Tri-City Planning Commission is directed to consider the application based upon the goals and objectives of the Master Plan of 1986 with the apprehension that any action recommended will impact the Growth Policy yet to be adopted, and also taking into consideration the purpose of zoning and current circumstances in the planning jurisdiction. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 1ST DAY OF OCTOBER, 2001. Wm. E. Boharski Mayor Attest: Theresa White City Clerk (September 19, 2001) Background: Wolford Development has submitted a standard plan map amendment requesting a simple commercial designation to replace other colors on the map. He is requesting approval for a 147-acre site, in the news media and at public meetings he states it is for a 675,000 to 750,000 Sq. ft enclosed mall with approximately 60 — 80 acres of ancillary commercial development. It appears however, that the plan amendment does not specifically tie his request to a mall, a specific site plan or a development proposal. There have been several watershed events in Kalispell's development history. Approximately 10 years ago the city entered into an agreement with the Evergreen Water and Sewer District to allow public sewer to be constructed in Evergreen. The agreement was done in the spirit of addressing a serious water quality issue that had valley wide ramifications. Unfortunately for Kalispell, the agreement did not anticipate nor address the ramifications of public sewer outside of its control. With the advent of sewer the Evergreen area was poised for development, it had a public water system, a public sewer system, a state and a federal highway running down the middle, substantial highway frontage commercial zoning, a lower tax rate and vacant or under developed land available. Sewer had been the missing key. In the past 10 years the vast majority of economic growth has either located or re -located to the Evergreen area or existing development in Kalispell has lost out to new competition in Evergreen. The impact on the new commercial growth in Kalispell and its tax base is significant. With the Wolford Development proposal, the City is again faced with one of the largest single decisions it will have make concerning the future of not just the city of Kalispell, but also the Flathead Valley. This project truly involves the creation of a new commercial center, a new central business district for the Flathead Valley and shifts the "center of gravity" for new development. The economic vitality of the valley will be focused in this immediate area for the next 10 to 20 years. ISSUE 1 It appears as though Wolford has submitted a standard plan map amendment requesting a simple commercial designation to replace other colors on the map. This is apparently the application of record submitted to the County. However, the information presented to the governing bodies and the public is for a mega mall proposal. This appears to be in reality an application for a development proposal for requiring a plan amendment or more appropriately a "neighborhood plan" for a specific development. A simple plan amendment to commercial could leave the City completely out of any further review. The County has already tentatively approved B-2 zone and Wolford has publicly stated he could do an on -site sewage disposal system if the City won't / can't provide public sewer to the site. If this is reviewed as a development plan amendment like what was done with the Valley Dome (Home Depot site) and the Stillwater Resort (Roger Claridge golf resort north of Kalispell) the City would have significant control over the development. Otherwise, the City would have limited or no review again with either the mall development or the ancillary development around the mall. And this development will be significant. ® If Wolford is willing to do a neighborhood plan which involves inviting many more people to the table and significantly more time and effort and many more property owners, there would be some opportunities to plan for the entire area and exert some concepts of orderly growth. Recommendation: If approval of the development is imminent, the City must require approval of the plan amendments as a neighborhood plan in order to continue negotiations with Wolford and to maintain some control over development of the site. Are we concerned about "economic flight" from the city and other areas in the Valley? If flight is significant enough, it could cripple the vitality of major segments of our community including commercial development in the downtown and south of town. Positively it could also open up areas of the community for changes in use and new uses. This would take great effort to see that re -development is done well. This is a difficult issue to quantify. We need to ask if the council is concerned, concerned enough to do further study or concerned enough to stop the project. Frankly, the council needs to get better numbers and / or determine if it is an issue they care about. Recommendation: Ask if the council if it is concerned, concerned enough to do further study or concerned enough to stop the project. ISSUE 3 Is the City willing and able to do the things necessary to incorporate Wolford's project and the neighborhood into the city of Kalispell? It is critical that the Wolford project be annexed into the city of Kalispell. The city needs to have a real presence in the area. Failure to fully annex (not just an annexation district agreement) Wolford's project and have the ability to oversee, guide, serve and annex all surrounding development as it happens next to Wolford's power center will only serve to foster a future dilemma. We will have a well -designed island (Wolford's mall) in a sea of "Evergreen to the airport" strip with businesses on septic systems, private wells, individual accesses and inadequate circulation. These costs, particularly future upgrades to Reserve and US 2 caused by development outside Wolford's site may have to be picked up by the general taxpayer or worse, will continue deteriorate in their ability to function and create a continuously more dangerous traffic situation . Failure to annex now will also ignore the fact that the economic/commercial growth for the next decade will happen in the area of the mall, not in other segments of the city of Kalispell. Kalispell's tax base could and will become stagnant with out these measures. ® The City of Kalispell needs to serve the mall and the surrounding area with Kalispell sewer and water, (not Evergreen and not on -site). We need to pequire a comprehensive traffic study. MDT will require a traffic study for the mall and require Wolford to participate in the recommendations. The Study will not address future development outside of the immediate mall impacts and outside of Wolford's control. We need to evaluate not just street and traffic impacts associated with the Wolford project but look at the greater area as commercial development will occur outside of the Wolford property: East and West Reserve upgrades, a local circulation system, traffic control features. side street development. .The developer will take care of impacts if we are on top of him. ® No one really addresses the incremental development around the mall development. What will it be and what will the resultant impacts be? ® We need to provide Kalispell Police Service. Will this be the new hang out for the Evergreen and Kalispell kids? ® We need to negotiate with the Evergreen Fire Department to provide fire service. ® Kalispell Parks needs to be prepared to expand their services. Recommendation: Require the developer to provide an analysis of what it will take to provide City sewer, water, streets, pedestrian access, fire and police and other services to this area to serve the development and the significant surrounding area. ISSUE 4 We need to be prepared to immediately and quickly annex the Evergreen commercial area and begin the process of annexing others area of Evergreen as well so that the Wolford Mall is not just an City island three miles distant from the city. The city of Kalispell will either grow and prosper or have its commercial stamina continually drained away. It is easier and cheaper for business to locate to Evergreen. It has been the norm for the last 10 years since the advent of sewer. Wolford's mall will not be the only area growing. Business will go where it is easiest and quickest, just outside of Wolford's control. Recommendation: Begin researching the feasibility of annexing portions of Evergreen. Prepare timetable, service provision issues, legal steps, etc. ISSUE 5 The City cannot be intimidated by Wolford's statement that the mall will happen with or without the City. This is simply not true. Wolford truly needs public sewer. He will get it from whoever, including Evergreen, which proves to be very expensive to hook up to. Or Kalispell, which could actually be cheaper. His options of moving just north are not real at this time. He does not have the land amassed, a railroad boarders one side of the highway, and ground water is just as problematic north as it is here. He needs sewer to sell development sites at decent density to all his potential buyers — motels, restaurants, banks, etc.and the tentants primary concern will be Location. Recommendation: Be prepared to call Wolford's bluff. The city's future is important. We can't operate with a threat over our heads. Does the valley need a mega mall? It is consist with the vision for future growth in the Valley? Can the Valley support a mega mall? Is the timing right for this kind of development. This is a difficult issue to assess. We are facing commercial pressure, how much is the unknown. Wolford has done his research, he is confidant he will be successful. We do not fully know what the impacts will be on rest of Valley and Kalispell. This is closely related to issue 2 above. The mall and the area around the mall has the potential to absorb / attract any new future growth to this area rather than other areas in the Valley. Recommendation: These are philosophical questions for which there are no easy answers. Providing the public to meaningfully participate in answering these questions is an important part of the review process. If the Wolford Mall proceeds, it may be appropriate to review our downtown re -development goals in light of the fact of such a significant economic shift. Unfortunately, with the June 2002 deadline for the Downtown Urban Renewal District looming up we may not be able to adequately react as ramifications to the downtown will occur over an extended period of time. The Kalispell Center Mall can be assumed to loose its primary anchors; all other viable mall stores will also be assumed to relocate. The existing downtown mall could remain empty for a considerable period of time as the Ernst building has. The mall is already for sale; realistically a change in use of the mall may be a significant consideration. This will also be the case faced by the larger remaining commercial actors in the downtown core area. Downtown could transition to cultural center, a performing arts center, a convention center or other theme could be a consideration. However, this transition would take time and considerable investment without the benefit of the tax increment financing. Recommendation: Consider and review the re -development issues. Are all activities still viable in light of the potential shift of retail/commercial activity or should there be a shift in the focus of downtown Kalispell. If the Wolford Mall proceeds, there will be significant ancillary development around the perimeter of the mall and beyond. Development pressures will radiate beyond the mall property and will be outside of the current Kalispell planning jurisdiction. Approval of the mall proposal and annexation of the property would place the city limits of Kalispell at the northernmost edge of the current planning jurisdiction boundaries. Extension of City sewer to this area will foster new requests for development primarily to the north and to the east. The City may or may not be in a position to service new development. There will also be increased development pressures along Hwy 2 that will extend between the mall out to Glacier International Airport. The City will need to have some influence and authority as to the type and timing of development within this "sphere of influence" beyond the mall boundaries. Recommendation: Consideration should be given to revising the Kalispell planning jurisdiction boundaries particularly to the north of the mall site to enable the City to maintain some influence over the type of development that would occur.