05/02/96 Fairbanks/Coordinate ScheduleDEPARTMENT OF NATURAL RESOURCES
AND CONSERVATION
2705 Spurgin Road, Missoula, MT 59801
(406) 542-4300 1�',�iY 3 10-0c
MARC RACICOT
GOVERNOR
- STATE OF MONTANA
-DIRECTOR'S OFFICE (406) 444-2074
TELEFAX (406) 444-2694
May 2, 1996
581.94
Lawrence Gallagher, Director
Planning, Economic & Economic Community Development
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903-1997
Dear Larry:
Enclosed is a copy of the letter from Clive Rooney to Mayor Rauthe. This letter again outlines the process
and tasks to be accomplished by the state and city for the proposed lease.
I would like to coordinate a time to schedule a public meeting for the proposed project. Please let me know
which of the following dates meet with your schedule: June 3, 4 or 5, 1996.
At this time I would like to address lease rates and fees. Market value for residential uses, when
competitively bid for state leases, generate a 10% rate of return to the trust. Commercial leases typically
exceed 10%. The city has requested the Department consider alternatives to offering the 160 acres of state
property for bid that would generate a fair market return to the trust. To justify offering the 160 acres of
state property for bid, by limiting the scope of the request for proposals for a baseball complex at a 5% rate
of return, the Department will consider this proposal in exchange for zoning changes on the north portion of
the state section as shown on Exhibit A. Additionally, the State will consider further reducing the rate of
return proportionately to the added value the zoning changes will increase the market value of the property.
The appraisal assignment would include this analysis. The results of the analysis in the appraisal will be
used to determine values gained in consideration of alternative lease rates.
Timing of the zoning changes and the completion of the appraisal are critical to processing the lease
proposal. I would be available May 6 or May 10 to meet with you to discuss the process and timetable.
Please let me know if these dates agree with your schedule. I can be reached in Missoula at
(406) 542-4346.
I look forward to working with you on this project.
Sincerely,
JE NNE FAIRBANKS �""�
West Side Supervisor
Special Uses Management Bureau
Trust Land Management Division
JF:kmk
Enclosure
cc: Mayor Rauthe
Clive Rooney
Jeff Hagener
Bill O'Brien
Bill Wright