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04/09/93 Gallagher/Plat MapsCITY OF KALISPELL Lawrence Gallagher, Director Planning, Economic & Community Development Department April 9, 1993 Mr. S. Joe Stanek Pinnacle Realty S. 9 Washington Suite 701 Spokane, Washington 99204 Dear Joe: 248 Third Avenue East (406) 752-7491 Fax: (406) 752-6639 Enclosed are the plat maps you have requested for the City Airport property and Fairgrounds. The 19+ Acre Airport parcel with 1547' of frontage on Highway 93 could be available for construction as early as this fall depending on what our City Council decides to do with it and the rest of the Airport. To aid in their evaluation of the KALISPELL CITY AIRPORT NEIGHBORHOOD PLAN, the City Manager has asked me to prepare an asset management plan which includes a cash -flow analysis and disposition strategy for surplus property. Once again, my lobbying activities have distracted me from the task; but, with the legislature in its final 15 days, I should be able to finish the work soon and have some preliminary information ready for their consideration before April 19, 1993. There is a possibility the analysis will indicate the need for substantial increases in land and hangar rents, landing and tie -down fees and other sources of income in order to pay for the cost of required capital improvements and airport maintenance. If general aviation balks at the increase in user fees and/or pending litigation related to a multiple fatality crash, charging the City with negligence, goes against the city, the entire airport property could be sold for redevelopment. We would create a tax increment redevelopment district, develop a redevelopment plan and dispose of all of the real estate for private redevelopment. Also, I met with the Flathead County Fair Board last night to discuss the possible acquisition and redevelopment of their 57 Acre holdings at the NE intersection of Highway 2 West (Idaho) and Meridian. If they agree the City would create another tax increment redevelopment district, relocate of the County Fairgrounds to a large (100+Acre) rural tract of land where they could grow and expand operations and offer the current land for redevel- opment. I estimate there is a demand for 15-20 acres of commercial land that could be sold to Shopko, Costco, Fred Meyer, or others seeking locations in Kalispell. The balance of the land would be redeveloped as a multi -family residential or mixed use planned unit develop- ment. The Fair Board has asked me to prepare a proposal for their consideration before the end of the month. They were "philosophically in support of the idea" and asked me to advise potential developers that they were going to consider the alternatives and make a decision ASAP. I told them this probably would be their last chance to sell the entire 57 acres for at least the next five - ten years because there are only a few cash buyers requiring large tracts of land for commercial/retail development. If Wal Mart, Shopko, Costco, Fred Meyer, and Ernst, all locate outside or on the edge of Kalispell, the demand for retail will be satisfied for the foreseeable future. Finally, I want to update you on recent activities of our Kalispell Development Corporation (KDC) Executive Board. The KDC hosted "Which Way Kalispell," a Goal Setting Workshop, on March 30, 1993. Forty -Five of Kalispell's most prominent and diligent community leaders invested five hours conducting what could be considered a "reality check" on where we're heading, or should be. The frustration of dealing with Burlington Northern Railroad and the Equity Supply project were hot topics. Despite, BN's insistence it isn't interested in removing the track "as long as there is a single customer remaining on the track," the KDC rated TRACK RE- MOVAL as the ##3 priority goal to accomplish this year. The others included: 1) Traf- fic/Bypass, 2) Implement Downtown Parking Program, 3) Track Removal, 4) Cooperation between City & County Government, 5) Develop a Theme and specific projects to encourage mixed -use occupancy and higher density in the CBD. I believe this renewed commitment by elected, appointed, and other private sector community leaders will result in collapsing BN's resistance to the idea of track removal and also demand that the public/private partnership mitigate any negative impact on existing rail users. Getting BN out of town will become a major focus. Joe, this may seem like a giant plot to keep the region's major retailers off balance. Perhaps it is. But, I'll reiterate a comment I've made before: ANY RETAIL DEVELOP- ER MAKING A SITE SELECTION OR LOCATION DECISION ABSENT A THOR- OUGH ANALYSIS OF THE PROBABLE IMPACT OF PENDING PUBLIC POLICY DECISIONS FOR MAJOR CAPITAL IMPROVEMENTS AND REDEVELOPMENT PROJECTS AND PENDING TRANSPORTATION CIRCULATION DECISIONS WILL BE INCREASING THEIR RISK OF LOSS. Kalispell, and the Flathead Valley is in a state of transition. More than at any time in its 100 year history, the economy is undergoing a structural change where high paying basic industry jobs are disappearing rapidly and being rep -laced with service industry jobs. The folks escaping California and the Puget Sound Region who don't stop in Spokane are heading this way. The preparation of both the Kalispell Bypass and U.S. Highway 93 Environmental Impact Statements are underway and are being done concurrently by the same consultant. A Bypass route recommendation will be ready for the policy makers in June 1993. The complete and final EIS for Highway 93 from Somers to Whitefish will resolve, once and for Mr. Joe Stanek April 9, 1993 Page 3 all, what kind of a highway will be constructed and how it will impact commercial develop- ment along its route. BN may even decide that it really is in their best interest to pull their track out of Kalispell. Mark Nelson called for a full briefing just before he left Shopko and asked that I contact Rich Evans when there was any progress. I was glad to hear you are still communi- cating with them. Fred Meyer's Don Berry, has expressed an interest in what may be happening with the Fairgrounds. He called me after reading about the possibility in the local newspaper. And, as you already know, your old friend John Hartigan of Northwest -Atlantic Partners, sent a young associate to Kalispell several months ago, who in turn elected to work with a local broker bent on recommending rural acreage in the vicinity of the Glacier International Airport. Wal Mart continues to dig test holes on the Seaman site while sending engineers to county and state agencies asking questions about flood planes, ground water contamination, discharge permits and highway access. So it goes in the quiet little town of Kalispell. I'm as anxious to get the questions resolved as you are. I feel like the proverbial peg legged man trying to stomp out a forest fire. Joe, I'll do my best to keep you informed about our progress on all of the issues which impact commercial development. Please keep me informed about what you hear on the street. While searching for some quotes for a paper I'm working on, I rediscovered a report from my old friend Sanford R. Goodkin. I thought you may enjoy what he observed prior to the First Quarter of 1992. Keep in touch! Sincerel , awr ce Gallagher, Director Encl cures (4)