08. Resolution 5427 - DNRC - Kidsports LeaseCity of Kalispell
Post Office Box 1997 -Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
TO: Mayor Tamrni Fisher and Kalispell City Council
FROM: Jane Howington, City Manager
SUBJECT: DNRC -- Kidsports Lease
MEETING DATE: May 3, 2010
BACKGROUND: The City has been working with DNRC and Kidsports for over two years
to develop a mechanism that would secure future lease resources for the Kidsports facility to
remain at its present location. This effort has led to a collaborative redevelopment proposal for
the old DNRC facility, plus additional acreage currently leased through the City to Kidsports.
The project coordinating committee is in the process of developing an invitation for proposals
from design entities for potential redevelopment options. A second request for proposals would
then be developed as a result of an accepted design and the continued collaboration of the project
coordination committee which would seek interested development proposals.
The purpose of this resolution is to provide legislative support for this project as well as support
for city staff to continue their participation with the project and as members of the project
coordination committee.
RECOMMENDATION: Council approves the resolution of support.
FISCAL IMPACT: Neutral.
Respectfully submitted,
Jane Howington
City Manager
A RESOLUTION IN SUPPORT OF THE CONTINUING COOPERATION AND
PARTNERSHIP OF THE CITY OF KALISPELL [CITY] WITH KIDSPORTS AND THE
MONTANA STATE DEPARTMENT OF NATURAL RESOURCES AND
CONSERVATION [DNRC] IN THE FUTURE TREATMENT AND USES OF THE 134
ACRES OF PROPERTY IN SECTION 36 CURRENTLY LEASED BY THE CITY
FROM DNRC AND UTILIZED BY KIDSPORTS.
WHEREAS, the Montana State Department of Natural Resources and Conservation [DNRC]
and the City of Kalispell [CITY] are parties to a Lease Agreement, effective May
71 1997, whereby the City leased approximately 134 acres in the Southeast Quarter
of Section 36, Township 29N, Range 22w, Flathead County, Montana; and
WHEREAS, the Lease Agreement provides that the Leased Property will be used by the CITY
for youth athletic fields and supporting facilities; and
WHEREAS, The CITY and Kidsports, a Montana nonprofit corporation, are parties to a
public/private partnership whereby Kidsports develops athletic fields on the Leased
Property for use by local youth sports organizations; and
WHEREAS, the Leased Property presently contains 30 developed youth athletic fields, parking
lots, five concession standlrestroorn buildings, associated improvements, playgrounds,
parks, and a cross country running course; and
WHEREAS, until recently DNRC maintained its Kalispell office on approximately twelve acres of
land located along U.S. Highway 93 near the northeast corner of the Leased
Property; and
WHEREAS, DNRC has relocated its Kalispell office to new facilities located along the west
boundary of Section 36, and its former office site will be available to an interested
party for development; and
WHEREAS, DNRC desires to increase the size of its former Kalispell office location by
adding approximately twelve acres from. Leased Property to improve its
marketability to prospective developers; and
WHEREAS, the CITY and Kidsports desire to arrive at an agreement with DNRC that will
perpetuate the existence of the youth sports complex on the Leased Property
on terms that are in the best interest of the CITY and Kidsports and their
respective constituents in exchange for removing a portion of the Leased
Property from the Lease Agreement as described in these Recitals; and
WHEREAS, DNRC and Kidsports have agreed to pursue objectives such as those outlined in
the letters of intent from DNRC and Kidsports dated April 27, 2010 and attached
as Exhibit "A" and Exhibit `sB" respectively.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
IALISPELL AS FOLLOWS:
SECTION I. That the City Manager is hereby authorized to continue to negotiate with
DNR.0 and Kidsports with the goal to perpetuate the existence of the
youth sports complex on the Leased Property on tenns that are in the
best interest of the City.
SECTION II. That the City shall treat all development proposals for the subject real
property consistent with its applicable ordinances, rules and regulations.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL THIS
3 RD DAY OF MAY, 2010.
Tammi Fisher
Mayor
ATTEST:
Theresa white
City Clerk
EXHIBIT bbA77
DEPARTMENT OF NATURAL RESOURCES
AND CONSERVATION
B IAN SCHWEITZER, GOVERNOR
1625 ELEVENTH AVENUE
ST,A1 E OF
-----
MO.NT�-' NA . . . . .. ... .......
I[--\
DIRECTOR'S OFFICE (406) 444-2074
PO BOX 2al.601
TELtFAX NUMBER 006) 444-2684
HELENA,'► ONTANAL 59620-1601
.pn.l � 71 2010
The Hon. Mayor. Fisher
The Kalispell City Council
Flo Jane Ho i ngton, City Manager
City of Kalispell
P.0. Boy. 1,997
Kalispell, M f 59901
Mr. Dan Johns, President.
Kidsports
P. o. Box 1.205
Kali spell.,, MT 59903
RE: Letter of Intent, DN-R/Ballfield Task Force Project
Dear Mayor Fisher, City Councilors, and Chairman Johns:
The purpose of this letter is to verifv Department of Natural Resources &Conservation's (DNIR-C)
commitments to the City of Kalispell and Kidsports concemin.g the DNRC/Ball field Task Force
Project.
DNR.0 recognizes the following project goals-.
Benefit the Common Schools Trust beneficiaries by providing an oppo-rtunity for DNRC to
combine its former agency site with additional acreage from the City leaschold to create an
"enhanced parcel,, with expanded cornnicrcial development opportunities and greater
revenue.
* achieve more permanency on the larger portion of the ity's leased area, through the City
and Kidsports cooperatively releasing a smaller portion of that leased area in support of th.i s
prof ect.
Arrive at a commonly beneficial site plan .for the enhanced parcel through a joint planning
process, with a developer/planer engaging the City of Kalispell, Kidsports, and. DNRC,
with the additional intent to maximize predictability to the extent practicable by law for the
enhanced parcel's entitlement and development process,
+� Provide a potentially profitable project :l'or the anticipated developer, and offer assurance to
that developer that the three parties are operating in s�mc toward common goals.
CENTRALIZED SERVICES CONSERVATION' & RESOURCERESERVED WATER RIGHTS OIL & GAS TRUST LAND MANAGEMENT
DIVISION DIVISION COMPACT COMMISSION DIVISION DIVISION
4406) 444-2074 (406) 444-6667 (4.06) 444--€ 841 406) 444- 6 i 5 (406) 444-207/ 4
City of Kali sp ell/Kl' .sports
April 2.7, 2010
Pace 2
In order to complete the DNRC/Ballfield Task. Force project, D\i-IRC commits to the following:
0 Submitting the enhanced property for the planning and leasing proiect phases-,
a providing the nght to entrance of the enhanced property :for project pafticipants,
* admInIstering and dire tiny a two -Request For Proposal (RFP) process (planning and
.leasing) for the enhanced site,,
0 managing the two RFP processes consistent with standard DNRC policies and, procedures,
engagIng the DNRC/Ballfield Task Force members as the PrQject Coordination Committee
anticipated for the Request for Proposal for Planning (RFP-P) process;
Z) 1)
o securing a commercial appraisal for the enhanced site,
amend-Ing the 0-ty's lease to reflect the plan when appropriate;
if the City (with Kidsports' assistance) proposes to purchase a pem-ianent easement on the
leasehold property in connection with. this project, basIng the value as residential,-,
if the City (with Kidsports' assistance) proposes to purchase a permanent easement on the
leasehold property in connection with this project, offering a three-year option for that
purchase;
not diminish the land value or negate the plannina and leasincr efforts that the parties have.
agreed to; and,
making a reasonable. effort to work with the participating parties to develop altematives to
address unforeseen circumstances.
Recou ',zng that, modifications may be necessary if unanti-6pated issues arise, DNRC also commits
I I
to admInisten'ng a RFP-P process whereby a successful respondent (planner/dev l€ per will work
with designated -representatives of all. three parties to define planning altematifires for the site,
analoptions-, and eventually select a preferred plan, complete With the related entitletnents
application package. DNRC recognizes throughout that effort, that the City will conanue to
actively garb ate to the extent practicable by lave in the planning and entitlement process for this
project. DNRC with then administer a second Request for Proposal .for Leasing (UP-L). The RF*P-
L will go out for bid, with. the condition that the successful RFC`-P respondent ("planner/developer")
will have the right to match the hIgh bid for the RFP-La
DNRC's commitments are predicated upon the City, of Kalispell honoring fts commilm.ent in the
Resolution dated May 3, 2010, and Kidsports' Letter of Intent dated April. 27, 201-0.
We greatly appreciate the collaborative spirit of both tile City of Kalispell and Kidsports on this
prat.
Sincerely,
M,,,kRY SEXTONT, Director
Department of Natural Resources & Conservation
CC" Robert Sandman, WTO ATCa Manager
Greg Ponein, KU Unit Mankgrer
Anne Shaw Moran, Chair, DN'RO'Bal I field Task Force
DNS. ...cal Estate Mannoement Bureau
C,
Y
3Re 4d .. ? L,. 't a.r'.i r;-. n C.2 ir.. £' "S i`v S„ .Y5ti y .�5 i 'Yti �np%.r ,i,3 ;:.�..'n� b ..� � i I-��i r. a.3i.r ��:;'��7'"�ti. ,
April 27, 2010
Mary Sexton, Director
Montana Department of Natural Resources
P. 0. Box 201601
Helena,, MT 5 9620- 160 1.
Jane Howington, City Manager
City of Kalispell
P. 0. Box 1997
Kalispell, MT 59903
Rev. Letter of intent — DNR.C/B allfield Task Force Project
Dear Ms. Sexton and Ms. Howington:
The purpose of this letter is to set forth Kidsports` commitments to the Montana Department of Natural
Resources ("DNRC") and City of Kalispell ("'City"') with respect to the project commonly called the
DNRC/Ballfield Task Force Project (".Project").
Kidsports recognizes that objectives of the Project include the following:
0 Benefit the Common Schools Trust beneficiaries by the early conversion of approximately 12
acres of the Kidsports athletic complex to commercial uses which, when added to the real.
property previously occupied by DNRC, will accelerate revenues realized by the Trust. The area
to be converted is located south of the previous DNRC site and north ofKidsports' softball
f elds.
0 Promote development of the area under consideration that will benefit the City and its residents,
0 Result in a permanent easement that Fosters the permanency of the remainder of the Kidsports
athletic complex.
0 Provide a commercially profitable project for a developer.
n order to successfully achieve these objectives, Kidsports commits to the following:
990
April 217, 2010
Page 2
Participate as a member of a task force that will work cooperatively with DNRC, City and
anticipated developer in design and development of the Project,
Allow reasonable access to relevant portions of the leased area so long as the access does not
interfere with scheduled uses.
Agree to DNRC and City amending the lease to release approximately 12 acres of the current
Kidsports site, -which will leave approximately 122 acres unaltered. The release will include all
improvements, infrastructure, design and planning within the area to be released in order to make
those lands available for the Project, as well as foregoing future development of this area. In
consideration of the release of those lands for future development, Kidsports will seek
$850,000.00 compensation from future developers and modification of the future usage
arrangement for the balance of the Kidsports site, but it will not seek compensation from DNRC.
The terms of payment are negotiable.
Rani c i pate as necessary toward achieving a permanent casement or acceptable alternative on the
balance of the Kidsports site, acknowledging that DNRC will accept residential appraised values
and payment oveer a three 'year period for a permanent easement.
Kidsports will not intentionally take any action that diminishes the value of the 12 acres during
this process or obstructs the planning process.
Fork with the parties to develop alternatives that address unforeseen circumstances.
Kidsports recognizes that DNRC intends a two -phases planning/development process and commits to
cooperatively participating in the process. Kidsports appreciates the collaborative spirit of DNRC and
City to achievcA these objectives.
Sincerely,
f
r
Daniel D, J6' ' s
President
c. Robert Sandman