4. Council Direction on Purchasing Building For Community Development/Building Department}
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-77€ 0 Fax (406)758-7758
REPORT TO: The Honorable Mayor Pamela B. Kennedy and City Council
FROM: Susan Moyer, Community Development Director
Jaynes H. Patrick, City Manager
SUBJECT: Co -location of Building, Planning and Community Development
MEETING DATE: March 28, 2005
BACKGROUND: With the onset of a new Planning Office within the City of Kalispell, there is a
need to consolidate as many of the off -site rental departments as possible to
facilitate a "one -stop" shopping concept as well as generate a more financially
sound cash outlay in rent vs. mortgage payments.
As of April 30, 2005, the Building Department and the Community Development
Department will have been co -located at 248 Third Avenue East for fourteen
years. These departments currently occupy 2,859 sq. ft. (plus 687 sq. ft. of dead
storage space) and pay an annual rent of $28,929.72. The rent is adjusted
annually using the Consumer Price Index. This equates to approximately $410+
per year.
While the Building and Community Development Department have parking
spaces on site for 17 regular spaces+ 1 handicapped, the Tri-City Office receives
2 free spaces one block away as part of their lease and must pay for up to 7
employee parking spaces. Thus, their $14,520 annual lease is increased by an
annual parking rate of $1,800 (an annual total of $16,320).
The City had an appraisal done on the actual office building site as well as the lot
immediately to the north which has a single family rental structure on it. The
appraisal came in at $401,000 for both the office building site ($325,000 vs.
$285,000) and the single family rental site ($125,000 vs. $116,000). Rex Boller's
review appraisals came in at a total of $450,000 — a difference of $49,000.
RECOMMENDATION: Council allow the City Manager and staff to enter into negotiations for purchase
of the two sites and go out for competitive bid for construction costs of new
offices on the west end. of the building. The new addition plus construction of
additional parking spaces on the lot adjacent to the existing office would address
the needs of these three departments for many years to come.
FISCAL IMPACT: The combined annual rents from the three departments equal $46,320.
Acquisition and construction in a twenty-year mortgage would run $75,720
annually at 7-3/4%. This equates to an annual difference of $29,400 in mortgage
vs. rent.
• Advantages are that at the end of 20 years (could be extended to a 30 year
mortgage) the City has an asset and does not incur the CPI inflation factor
per year over the 20 years.
The three development driven departments are co -located at one site for
the convenience of the public.
The location of the consolidated site is approximately 1-1/2 block from
city hall.
ALTERNATIVES: As suggested by Council.
RespectfulW submitted,
SusaMoyer, Director
Community Development
Date Memo Prepared: March 24, 2005
James Patrick
\6ty Manager
LOAN AMORTIZATION CALCULATOR - Acquisition Costs of Existing Two Properties At Highest Ap
ASSUMPTIONS
FIRST PAYMENT DATE 01-Jan-06
PRINCIPAL BORROWED $450,000
TERM IN MONTHS 240
BEGINNING INTEREST RATE 7.0250%
PAYMENT $3,495.60
AMORTIZATION TABLE
PAYMENT
PAYMENT
CURRENT
INTEREST
PRINCIPAL
PRINCIPAL
NUMBER
DATE
RATE
PAYMENT
PORTION
PORTION
BALANCE
1
02-Jul-02
7.03%
$3,495.60
$2,634.38
$861.23
$449,138.77
2
02-Aug-02
7.03%
$3,495,60
$2,629.33
$866.27
$448,272.51
3
02-Sep-02
7.03%
$3,495.60
$2,624.26
$87134
$447,401.17
4
02-Oct-02
7.03%
$3,495.60
$2,619.16
$876A4
$446,524.73
5
02-Nov-02
7.03%
$3,495.60
$2,614.03
$88L57
$445,643.16
6
02-Dec-02
7.03%
$3,495,60
$2,608.87
$886.73
$444,756.42
7
02-Jai-03
7.03%
$3,495.60
$2,603,68
$891.92
$443,864.50
8
02-Feb-03
7.03%
$3,495.60
$2,598,46
$897.14
$442,96736
9
02-Mar-03
7.03%
$3,495.60
$2,593,20
$902.40
$442,064,96
10
02-Apr-03
T03%
$3,495,60
$2,587.92
$907.68
$441,157,28
11
02-May-03
7.03%
$3,495.60
S2,582.61
$912.99
$440,244.29
12
02-Jun-03
7.03%
$3,495.60
$2,577.26
$918.34
$439,325.95
13
02-Jul-03
7.03%
$3,495,60
$2,571.89
$923.71
$438,402.24
14
02-Aug-03
7.03%
$3,495.60
$2,566.48
$929,12
$437,473.11
15
02-,Sep-03
7.03%
$3,495,60
$2,561.04
$934.56
$436,538.55
16
02-Oct-03
7.03%
$3,495.60
$2,555.57
$940,03
$435,598.52
17
02-Nov-03
7.03%
$3,495.60
$2,550.07
$945,53
$434,652.99
18
02-Dec-03
7.03%
$3,495.60
$2,544.53
$951.07
$433,701.92
19
02-Jan-04
7.03%
$3,495,60
$2,538,96
$956.64
$432,745,28
20
02-Feb-04
7.03%
$3,495.60
$2,533.36
$962.24
$431,783.04
21
02-Mar-04
T03%
$3,495.60
$2,52T73
$967.87
$430,815.17
22
02-Apr-04
7.03%
$3,495.60
$2,522.06
$973.54
$429,841.63
23
02 May-04
7.03%
$3,495.60
$2,516.36
$979,24
$428,862.39
24
02-Jun-04
7.03%
S3,495.60
$2,510.63
$984.97
$427,877.42
25
02-Jul-04
7.03%
$3,495.60
$2,504,87
$990.74
$426,886.69
26
02-Aug-04
7.03%
$3.495.60
$2,499.07
$996.54
$425,890.15
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
02-Sep-04
7,03%
$3,495.60
$2,493.23
$1,002.37
$424,887.78
02-Oct-04
7.03%
$3,495.60
$2,487.36
$1,008.24
$423,879.55
02-Nov-04
7.03%
$3,495.60
$2,481.46
$1,014.14
$422,865.41
02-Dec-04
7.03%
S3,495.60
$2,475.52
$1,020.08
$421,845.33
03-Jan-05
7.03%
$3,495.60
$2,469.55
$1,026.05
$420,819,28
03-Feb-05
7.03%
$3,495.60
$2,463.55
$1,032.06
$419,787.23
03-Mar-05
7.03%
$3,495.60
$2,457.50
$1,038.10
$418,749.13
03-Apr-05
7.03%
$3,495.60
$2,451.43
$1,044,17
S417,704.96
03-May-05
7.03%
$3,495.60
$2,445.31
$1,050.29
$416,654.67
03-Jun-05
7.03%
$3,495.60
$2,439.17
$1,056.44
$415,598,23
03-Jul-05
7.03%
$3,495.60
$2,432.98
$1,062.62
$414,535,61
03-Au;-05
7.03%
$3,495.60
$2,426.76
$1,068.84
$413,466.77
03-5ep-05
7.03%
$3,495,60
$2,420.50
$1,075.10
$412,391.68
03-Oct-05
7.03%
$3,495.60
$2,414.21
$1,081.39
$411,31028
03-Nov-05
7.03%
$3,495.60
$2,407.88
$1,087.72
$410,222.56
03-Dec-05
7.03%
$3,495.60
$2,401.51
$1,094.09
$409,128.47
03-Jan-06
7.03%
$3,495.60
$2,395.11
$1,100.49
$408,027.98
03-Feb-06
7.03%
$3,495.60
$2,388.66
$1,106.94
$406,921.04
03-Mar-06
7.03%
$3,495.60
$2,382.18
$1,113.42
$405,807.62
03-Apr-06
7.03%
$3,495.60
$2,375.67
$1,11994
$404,687.69
03-May-06
7,03%
$3,495.60
$2,369.11
$1,126.49
$403,561.19
03-Jun-06
7.03%
$3,495.60
$2,362,51
$1,133.09
$402,428.11
03-Jul-06
7.03%
$3,495.60
$2,355.88
$1,139.72
$401,288.39
03-Aug-06
7.03%
$3,495.60
$2,349.21
$1,146.39
$400,142.00
03-Sep-06
7.03%
$3,495.60
$2,342.50
$1,153.10
$398,988.89
03-Oct-06
7.03%
$3,495.60
$2,335.75
$1,159.85
$397,829.04
03-Nov-06
7,03%
$3,495.60
$2,328.96
$1,166.64
$396,662.39
03-Dec-06
7.03%
$3,495.60
$2,322.13
$1,173.47
$395,488,92
03-Jan-07
7.03%
$3,495.60
$2,315,26
$1,180.34
$394,308.58
03-Feb-07
7,03%
$3,495.60
$2,30835
$1,187.25
$393,121.32
03-Mar-07
7.03%
$3,495.60
$2,301.40
$1,194.20
$391,927.12
03-Apr-07
7.03%
$3,495.60
$2,294.41
$1,201.19
$390,72593
03-May-07
7.03%
$3,495.60
$2,287.37
$1,208.23
$389,517.70
03-Jun-07
7.03%
$3,495.60
$2,28030
$1,215.30
$388,302,40
LOAN AMORTIZATION CALCULATOR - Construction Costs For New Addition & Parking
ASSUMPTIONS
FIRST PAYMENT DATE 01-Jan-06
PRINCIPAL BORROWED $362,500
TERM IN MONTHS 240
BEGINNING INTEREST RATE 7.0250%
PAYMENT $2,815.90
AMORTIZATION TABLE
PAYMENT
PAYMENT
CURRENT
INTEREST
PRINCIPAL
PRINCIPAL
NUMBER
DATE
RATE
PAYMENT
PORTION
PORTION
BALANCE
I
02-Jul-02
7.03%
$2,81590
$2,122.14
$693.77
$361,80623
2
02-Aug-02
7.03%
$2,815.90
$2,118.07
$697.83
$361,108.41
3
02-Sep-02
7.03%
$2,815,90
$2,113.99
$701.91
$360,406.50
4
02-Oct-02
7.03%
$2,815.90
$2,109.88
$706.02
$359,700.47
5
02-Nov-02
7.03%
$2,815.90
$2,105.75
$710.15
$358,990.32
6
02-Dec-02
7.03%
$2,815.90
$2,101.59
$714.31
$358,276.01
7
02-Jan-03
7.03%
$2,815.90
$2,097.41
$718.49
$357,557.51
8
02-Feb-03
7.03%
$2,815.90
$2,093.20
$722.70
$356,834.81
9
02-Mar-03
7.03%
$2,815.90
$2,088.97
$726.93
$356,107.88
10
02-Apr-03
7.03%
$2,815.90
$2,084.71
$731.19
$355,376.70
11
02-May-03
7.03%
$2,81590
$2,080.43
$735.47
$354,641.23
12
02-Jun-03
7.03%
$2,815.90
$2,076.13
$739.77
$353,901.46
13
02-Jul-03
7.03%
$2,815.90
$2,071.80
$744.10
$353,157.36
14
02-Aug-03
7.03%
$2,815.90
$2,067.44
$748.46
$352,40&90
15
02-Sep-03
7.03%
$2,815.90
$2,063.06
$752,84
$351,656.06
16
02-Oct-03
7.03%
$2,815.90
$2,058.65
$757.25
$350,898.81
17
02-Nov- 03
T03%
$2,815.90
$2,054.22
$761.68
$350,137.13
18
02-Dec-03
7.03%
$2,81590
$2,049.76
$766.14
S349,37099
19
02-Jan-04
7.03%
$2,815.90
$2,045,28
$770.63
$348,600.36
20
02-Feb-04
7.03%
$2,815.90
$2,040,76
$775.14
$347,825.23
21
02-Mar-04
7.03%
$2,815.90
$2,036.23
$779.67
$347,045,55
22
02-Apr-04
7.03%
$2,815.90
$2,031.66
$784.24
$346,261.31
23
02-May-04
7.03%
$2,81590
$2,027,07
$788.83
$345,472.48
24
02-Jun-04
7.03%
$2,815.90
S2,022.45
$793.45
$344,679.04
25
02-Jul-04
7.03%
$2,815.90
$2,017.81
$798.09
$343,880.94
26
02-Aug-04
7.03%
$2,815.90
$2,013.14
$802.76
S343,078.18
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
02-Sep-04
7.03%
$2,815.90
$2,008.44
$807.46
$342,270,72
02-Oct-04
7.03%
$2,815.90
$2,003.71
$812,19
$341,458.52
02-Nov-04
7.03%
$2,815.90
$1,998.96
$816.95
$340,641.58
02-Dec-04
7.03%
$2,81590
$1,994.17
$821.73
$339,819.85
03-Jan-05
7.03%
$2,815.90
$1,989.36
$826.54
$338,993.31
03-Feb-05
7.03%
$2,815.90
$1,984.52
$831.39
$338,161.93
03-Mar-05
7.03%
$2,815.90
$1,979.66
$836.24
$337,325.69
03-Apr-05
7.03%
$2,815.90
$1,974,76
$841.14
$336,484.55
03-May-05
7.03%
$2,81590
$1,969.84
$846.06
$335,638.48
03-Jun-05
7.03%
$2,815.90
$1,964,88
$851.02
$334,787.47
03-Jul-05
7.03%
$2,815.90
$1,959.90
$856.00
$333,931.47
03-Aug-05
7.03%
$2,815.90
$1,954.89
$861.01
$333,070.46
03-Sep-05
7.03%
$2,815.90
$1,949.85
$866,05
$332,204.41
03-Oct-05
7.03%
$2,815.90
$1,944.78
$871,12
$331,333.28
03-Nov-05
7.03%
$2,815.90
$1,939.68
$876.22
$330,457.06
03-Dec-05
7.03%
$2,815.90
$1,934.55
$881.35
$329,575.71
03-Jan-06
7.03%
$2,815.90
$1,929.39
$886.51
$328,689.20
03-Feb-06
7.03%
$2,815,90
$1,924.20
$891.70
$327,797.50
03-Mar-06
7.03%
$2,815.90
$1,918.98
$896.92
$326,900.58
03-Apr-06
7.03%
$2,815.90
$1,913.73
$902.17
$325,998.41
03-May-06
7.03%
$2,815.90
$1,908.45
$907.45
$325,090.96
03-Jun-06
7.03%
$2,815.90
$1,903,14
$912.76
$324,178.20
03-Jul-06
7.03%
$2,81590
$1,897.79
$918.11
$323,260.09
03-Aug-06
7.03%
$2,815.90
$1,892.42
$923.48
$322,336.61
03-Sep-06
7.03%
$2,815,90
$1,887.01
$928.89
$321,407.72
03-Oct-06
7.03%
$2,815.90
$1,881,57
$934.33
$320,473,39
03-Nov-06
7.03%
$2,81590
$1,876.10
$939.80
$319,533.60
03-Dec-06
7.03%
$2,815.90
$1,870.60
$945,30
$318,588.30
03-Jan-07
7.03%
$2,815.90
$1,865.07
$950.83
$317,637.47
03-Feb-07
7.03%
$2,81590
$1,859.50
$956A0
$316,681.07
03-Mar-07
7.03%
$2,815.90
$1,853.90
$962,00
$315,719.07
03-Apr-07
7.03%
$2,815,90
$1,848.27
$967.63
$314,751.44
03-May-07
7.03%
$2,815.90
$1,842.61
$973.29
$313,778.15
03-Jun-07
7.03%
$2,81590
$1,836.91
$978,99
$312,799.16