2. Notice of Sale - Plaza West Parking LotCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Lynn Moon, Community Development Consultant
For Susan Moyer, Community Development Director
SUBJECT: Plaza West Parking Lot
MEETING DATE: December 18, 2000
BACKGROUND: The City Attorney has prepared a solicitation of offer to purchase the north
half of Lot 15 and all of Lots 16 & 17 (17,500 square feet) referred to as the Plaza West Parking
Lot. The property is located at the west edge of Kalispell's downtown central business district.
The City encourages redevelopment proposals that will take maximum advantage of the parcel's
potential for highest and best use and urban density. The established evaluation criteria includes:
(a) A proposal that incorporates originality, flexibility, and innovation in site planning and
development, including architecture, landscaping and graphic design of the proposed
development.
(b) A proposal that will stabilize and improve property values and prevent blighted areas
and, thus, increase tax revenues.
The offering document establishes a fair market value of $7.42 per square foot or approximately
$130,000. The City will accept the proposal that best meets the established goals and objectives
for the redevelopment site.
Proposals will be accepted until January 9, 2001.
RECOMMENDATION: The City Council approve the notice of sale.
FISCAL, EFFECTS:
Respectively submitted,
None at this time
As suggested by the Council.
Ly Moon
Community Development Consultant
0-"A,XA�k
Chris A. Kukulski
City Manager
Report compiled December 13, 2000
NOTICE OF SALE•
CITY PROPERTY
NOTICE is hereby given that the City of Kalispell will receive
sealed proposals for the purchase and redevelopment of certain real
property owned by the City of Kalispell, as more particularly
described as follows:
North Half of Lot 15 and all of Lots 16 and 17, Block 47,
Kalispell, Flathead County, Montana, according to the
recorded plat thereof, on file and of record in the
office of the Clerk and Recorder, Flathead County,
Montana.
Proposals for purchase and redevelopment of said property
shall be received by the City Clerk of the City of Kalispell until
2:30 P.M. on January 9, 2001, at which time all proposals will be
opened by the City Manager at an open administrative session in the
Council Chambers, City Hall, 312 1st Avenue East, Kalispell,
Montana.
The terms of the sale shall be determined by the City Council
and related to the prospective purchaser with notice from the City
to prospective purchaser that the offer to purchase and redevelop
is acceptable to the City.
The City of Kalispell hereby establishes the fair market value
of said property to be not less than One Hundred and Thirty
Thousand Dollars ($130,000.00). The City will consider all
proposals, subject to the conditions contained in the following
paragraph.
The City, in considering the competing proposals received as
a result of the published notice, shall consider the purchase price
offered by the respective respondents. However, the purchase price
shall not be the sole factor in disposing of the property to the
successful purchaser. The City shall consider such other factors
as: proposal's potential to further the goals and objectives of the
urban renewal plan, background of potential developers, financial
ability of potential developers to perform under the proposal,
benefit to the City in general, and benefit to the urban renewal
area in particular. The decision on disposing of the property will
ultimately be based upon broad evaluation of the proposals
submitted and how the proposals individually serve the public
interest.
Should the successful prospective purchaser fail to purchase
the property, the City reserves the right to consider and sell the
property to another prospective qualified purchaser.
The City Council reserves the right to reject any or all bids
or to waive any technicality or any informality and accept any bid
or proposal which may be deemed best for the interest of the City
of Kalispell.
Any prospective purchaser wishing further information may
obtain same from the Community Development Department, City Hall,
P.O. Box 1997, Kalispell, MT 59903-1997, Tele: 406.758.7740.
Theresa White
City Clerk
Publish: 12/19/00
12/26/00
O1/02/01
'' 111
Kalispell,. •s
Zoned B-4 — Central Business
Located in downtown Kalispell
On 2"d Avenue West, between 1st Street West and 2"d Street West
Commonly known as "Plaza West Parking Lot"
For Information Contact
City of Kalispell
City Manager's Office
P.O. Box 1997
Kalispell, MT 59903-1997
(406) 758-7703
Fax (406) 758-7758
or
City of Kalispell
Community Development Office
P.O. Box 1997
Kalispell, MT 59903-1997
(406) 758-7740
Fax (406) 758-7739
Redevelopment p• • • be p. - r
prior to and 1
Mountain• • Time, January • 2001
by p .
KalisDell. Montana.
This presentation is an offer to sell the subject property and is a solicitation of proposals to purchase.
The City of Kalispell shall consider all redevelopment proposals and the financial and legal ability and
demonstrated readiness to proceed by all persons making such proposals. The City may select the
redevelopment proposal and base its final determination of the fair value of the subject property not only
on the purchase price offered, but also on the proposed design and aesthetic quality of the project that
meets the City's objectives. Proposals will be accepted until 2:30 p.m. on January 9, 2001, at the office of
the City Clerk located at 312 First Avenue East, P. O. Box 1997, Kalispell, MT 59901.
Staff will review all proposals and make a recommendation to the City Council. The successful proposal
shall be accepted and approved by resolution of the City Council in accordance with disposition
procedures specific to the City of Kalispell.
Information provided herein is a summary, subject to error and omission, and without any warranty of
accuracy. Prospective purchasers should independently verify any information provided herein. No real
estate listing or agency agreement is implied directly or indirectly by reason of this presentation. The City
of Kalispell reserves the right to reject any and all offers and waive informalities.
Property Identification: The property is commonly known as Plaza West Parking Lot, the North
'/2 of Lot 15, all of Lots 16 and 17 of Block 47 of the original townsite of
Kalispell, Flathead County, Montana. The parcel is zoned B-4 Central
Business, for sale and private redevelopment.
Location: Property is an asphalt parking lot, which is comprised of two and one-half
city lots and measuring 125' x 140' (17,500 square feet),It is a level site
that adjoins 2°d Avenue West.
Neighborhood: The subject property is on the west edge of Kalispell's downtown central
business district. The subject property is currently zoned for commercial
uses. Multi -family residential is a permitted use within the zone.
Site Description,
Shape and Size: A 17,500 square foot rectangular parcel of land consisting of an asphalt
parking lot with 52 designated parking spaces.
Record Owner: Fee Simple Estate held by The City of Kalispell, Montana; a body politic.
Access and Streets: The site has 125' of frontage on 2"d Avenue West and is backed up
against an alley.
Visibility & Traffic: This site is highly visible from 2nd Avenue West.
Topography: All sites are level or gently sloping and at highway grade.
Soils: No soils testing or subsoil investigation has been conducted by the City.
Utilities: Sanitary Sewer:
Sanitary sewer is available to the subject property.
Water:
City water is available to subject property; access is on 2"d Avenue West.
Electrical Service:
Electrical Service is available to subject property through Flathead
Electric Cooperative.
Telephone Service:
Telephone lines are located adjacent to subject property. Developer will
be responsible for providing conduit in grade to nearest property line.
Determination of size of conduit is regulated by Century Tel based on
service requirements.
Natural Gas:
Natural gas is available to the subject property. Contact Montana Power
Company for specifications regarding location and associated costs.
Storm Drain:
Proper site planning will need to accommodate the majority of the runoff
either by connecting to existing storm drains or by providing retention on
site.
Zoning: The site is governed by the City of Kalispell Zoning Ordinance, with an
effective date of March 19, 1992. A complete copy of the Zoning
Ordinance is available from the City Building Department.
The parcel is zoned B-4, Central Business. According to Chapter 27.16.
B-4 CENTRAL BUSINESS, Section 27.16.010 Intent, the B-4
designation is: "A business district to set apart that portion of the city
which forms the center for financial, commercial, governmental,
professional and cultural activities". For planning purposes, copies of
selected sections of the Kalispell Zoning Ordinance are attached as
Exhibit A. These include:
Sections 27.16.020: Permitted Uses; 27.16.030: Uses Which May Be
Permitted By Conditional Use Permit; and 27.16.040 Property
Development Standards of the Kalispell Zoning Ordinance.
Signage: The City encourages an attractive, aesthetically pleasing signage plan
that shall advertise and promote businesses that are being conducted on
subject property. The sign(s) shall meet all required setback, size and
other requirements as set forth in the Kalispell Sign Ordinance. The
display of billboards and/or off -premise signs will be prohibited by deed
restriction on all of the land that is the subject of this offering.
Parking: Parking requirements are governed by Chapter 27.26 of the Kalispell
Zoning Ordinance.
The real estate has been "tax exempt" because the City of Kalispell, its current owner, is a public entity
exempt from taxation. Now it is the City's goal to encourage the private redevelopment of the site to its
highest and best use, thereby generating substantial ad valorem taxes for all taxing jurisdictions.
In Montana and in Kalispell, both real and personal property are subject to property (ad valorem) taxation,
except as provided otherwise. Property is classified and taxed in accordance with statutes enacted by the
Montana Legislature. Generally, tax liability for business property is determined in the following way:
Market Value x Classification Rate = Taxable Value
Taxable Value x Mill Levy = Property Tax Liability
The mill levy is an aggregate of state and local levies imposed annually for the purpose of funding city
and county governments, schools, and the university system, in accordance with the statutes and
regulations of the Montana Department of Revenue.
One mill is 1110 of a cent — computed as $1 tax on every $1,000 of taxable value. The rate is determined
by comparing the local budget requirement against the taxable value for a particular taxing district.
Density Considerations:
The Kalispell City Council encourages redevelopment proposals that will take maximum advantage of the
parcel's potential for highest and best use and urban density redevelopment. The City encourages
construction of high quality and high value building(s). While the City does not have a minimum density
development standard or requirements, the Kalispell City Council will carefully evaluate all proposals and
how they impact the site, the surrounding neighborhood, and the City's tax base.
Speculative Development:
The City does not encourage redevelopment proposals or offers to purchase from developers desiring to
purchase the land for speculation or for future unspecified redevelopment phased over a long period of
time.
Evaluation Criteria:
Proposals that represent architectural and site planning excellence will be given preference in the
selection process.
Evaluation criteria include but are not limited to:
(a) Originality, flexibility, and innovation in site planning and development, including
architecture, landscaping, and graphic design of the proposed development.
(b) Stabilize and improve property values and prevent blighted areas and, thus, increase tax
revenues.
(c ) Proposed purchase price.
Required Submittals:
Evaluation of the proposals will be based solely upon the documents submitted in the proposal.
All proposals shall include the following information:
(a) A site plan drawn to scale, showing the proposed layout of all structures and other
improvements including driveways, pedestrian walks, landscaped areas, fences, walls,
off-street parking, and loading areas. The site plan shall indicate the location of entrances
and exits, off-street parking and loading areas.
(b) Architectural drawings or sketches, drawn to scale, including preliminary floor plans, with
sufficient detail to permit computation of all site development criteria (i.e., setbacks, lot
coverage, off-street parking requirements, building heights).
(c) General description of proposed uses in the development.
(d) Proposed purchase price.
The successful offerer will be required to complete build out in accordance with approved plans and
specifications referenced in accordance with the Development Agreement. Failure to perform within the
specified time period will result in the assessment of liquidated damages in an amount to be determined
and enumerated in the Development Agreement.
Suggested Sales Price:
The Montana Urban Renewal Law in Section 7-15-4262(3) states:
"Such real property or interest shall be sold, leased, otherwise transferred, or retained at
not less than its fair value for uses in accordance with the urban renewal plan. In
determining the fair value of real property for uses in accordance with the urban renewal
plan, a municipality shall take into account and give consideration to the uses provided in
such plan; the restrictions upon and the covenants, conditions, and obligations assumed
by the purchaser or lessee or by the municipality retaining the property; and the
objectives of such plan for the prevention of the recurrence of blighted areas."
The City Council will establish the fair value for the property based upon information provided by the
Community Development Office. The City Council may accept any proposal it deems to be in the public
interest and in furtherance of the Montana Urban Renewal Law.
Although the City is authorized to entertain high price offers for the property, its objective is to encourage
highest and best use, excellence in design and siting, and the highest possible market valuation of land
and improvements for ad valorem tax purposes.
The seller, the City of Kalispell, is interested in receiving all fair market value offers.
The Kalispell City Council may select the redevelopment proposal that offers fair value for uses in
accordance with the Plan and best addresses the goals and objectives of the Plan and offering criteria vs.
a redevelopment proposal offering a higher purchase price yet failing to or only minimally addressing
offering criteria.
Actual sale of any property subject to this solicitation of proposals to purchase real estate may only be
accomplished in accordance with Section 7-15-4263, Montana Code Annotated. The City will begin
legally advertising the property on (insert publication dates) Redevelopment proposals will be accepted
prior to and until 2:30 p.m. on January 9, 2001, by the City Clerk, Kalispell City Hall, 312 1st Avenue
East, P.O. Box 1997, Kalispell, Montana. All responsive proposals shall be reviewed and considered by
the City Council. A resolution authorizing the sale of the property to the selected redeveloper will be
conducted at the meeting of the City Council on January 22, 2001. The selected redeveloper shall be
required to execute a Developers Agreement demonstrating both financial and legal ability to complete
the proposed redevelopment within the agreed time and for the amount specified in the redevelopment
proposal.
Section 7-15-4263, MCA, 1995, states as follows:
Procedure to dispose of property to private persons:
The municipality shall consider all redevelopment or rehabilitation proposals and the
financial and legal ability of the persons making such proposals to carry them out. The
municipality may accept such proposals as it deems to be in the public interest and in
furtherance of the purposes of this part and part 43. Thereafter, the municipality may
execute, in accordance with the provisions of Section 7-15-4262 and Section 7-15-4264,
and deliver contracts, deeds, leases, and other instruments of transfer.
The City, in considering competing proposals received as a result of the published notice, shall consider
the purchase price offered by the respective respondents. However, the purchase price shall not be the
sole factor in disposing of the property to the selected redeveloper. The City shall consider such other
factors as: proposal's potential to further the goals and objectives of the Urban Renewal Plan, background
of potential developers, financial ability of potential developers to perform under the proposal, benefit to
the City in general and benefit to the Urban Renewal Area in particular. The decision on disposing of the
property will ultimately be based upon a broad evaluation of the proposals submitted and how the
proposals individually serve the public interest.
After the proposals have been evaluated and a redevelopment proposal has been selected, the City
Council shall be presented with a resolution authorizing the sale of the property and authorizing the City
Manager to execute a deed to the property. The resolution when passed by the City Council takes effect
immediately.
Developers desiring to avail themselves of City participation in a proposed development within an Urban
Renewal District should be aware that additional public hearings and action by the Council may be
required prior to or after the purchase. Any modifications to the Urban Renewal Project Plan shall be
subject to compliance with section 7-15-4221 MCA.
For the information of prospective proposers the City has attached hereto the following
documents as Exhibits:
a. Sections 27.16.020, 27.16.030, and 27.16.040, Kalispell Zoning Ordinance,
b. Map of the area.
Entire copies of documents mentioned above are available at the Office of the City Clerk,
City Hall, City of Kalispell, P.O. Box 1997, Kalispell, MT 59903-1997 or by calling (406)
758-7756.
The City of Kalispell (seller) is represented by its employees in any real estate offering,
negotiation, or transaction. In the event the buyer is interested in making an offer to purchase the
property, it may employ its own agent to review the transaction, represent it, and the buyer should
pay its agent's fee. The basis of the fee is a matter between the buyer (redeveloper) and its
agent.
THE BUYER MAY ELECT TO PROCEED WITHOUT REPRESENTATION.
1A OME e
Sections:
27.16.010 Intent
27.16.020 Permitted Uses
27.16.030 Uses Which May Be Permitted By Conditional Use Permit
27.16.040 Property Development Standards
27.16.010: Intent. A business district to set apart that portion of the city which forms the
center for financial, commercial, governmental, professional and cultural
activities. This district is not intended for general application throughout the
planning area.
(1). Artist studio with incidental sales.
(2). Athletic club.
(3). Automobile parking, commercial or public.
(4). Bakery/deli, wholesale/retail.
(5). Banks/savings and loans/finance and loan companies.
(6). Barber and beauty services.
(7). Bar, tavern, cocktail lounge, clubs.
(8). Candy products manufacture, retail on premises.
(9). Car wash, automobile detailing shop.
(10). Catering establishments.
(11). Chemical dependency/substance abuse clinic (outpatient only).
(12). Chiropractic clinic.
(13). Church/worship/parish/Sunday school buildings.
(14). Clinics, medical and dental.
(15). Coin and/or stamp dealers, lapidaries.
(16). College/business/trade/music/dance schools - no student residence.
(17). Counseling center for the physically or mentally disabled.
(18). Dairy bar/ice cream manufacturing, retail on premises.
(19). Day care center (see definition).
(20). Denturist.
(21). Department stores.
(22). Dwellings, single family, duplexes and multi -family.
(23). Dwellings, multi -family above first story.
(24). Food processing/retail on premise - no kill/dress of flesh/fowl.
(25). Food store/supermarket, etc. - no slaughtering of flesh/fowl.
(26). Food stores, retail/under 3,000 square feet.
(27). Fruit/wine bar.
(28). Furriers, retail sales and storage.
(29). Glazier.
(30). Hotel, motel.
(31). Insurance office and/or claims centers.
(32). Investment firms.
(33). Janitor supplies/services/contracting.
(34). Jewelry/watch repair and sales.
(35). Launderette/dry cleaning, customer self service.
(36). Life styling center.
(37). Liquor store.
(38). Locksmiths or gunsmiths.
(39). Lodges/fraternal and social organizations, non-profit.
(40). Massage parlor.
(41). Music education with related performance and limited sales.
(42). Newspaper office.
(43). Office, professional/governmental.
(44). Office equipment, supplies/sales/service.
(45). Opticians/optical supplies sales.
(46). Parks.
(47). Pawn shops (no outside storage/display).
(48). Pet shops.
(49). Pharmacy.
(50). Photographic studios.
(51). Plumbing/heating materials, retail/service only.
(52). Post office - main distribution center.
(53). Post office - satellite or neighborhood.
(54). Prepared food delivery facilities.
(55). Printing/publishing/reproduction/blueprinting/photo-stating
establishments.
(56). Produce stand.
(57). Real estate sales offices.
(58). Recreational area, commercial and non-commercial.
(59). Repair/service-office/household equipment.
(60). Restaurants.
(61). Retail business (see definition).
(62). Second hand stores (see definition).
(63). Shoe repair.
(64). Ski rental shop.
(65). Tailors/dressmakers/milliners.
(66). Take and bake prepared food facility.
(67). Telecommunication companies and/or radio common carriers.
(68). Theaters in permanent indoor structures.
(69). Title company.
27.16.030:
27.16.040:
(70). Travel agency.
(71). Undertaking/mortuaries/funeral homes/parlors.
(72). Variety stores.
(73). Veterinary clinic, small animals.
Uses Which May Be Permitted By Conditional Use Permit.
(1). Assembly halls/coliseums/stadiums/convention hall facilities.
(2). Automobile sales.
(3). Automobile rental agency.
(4). Automobile repair garages, excluding body shops.
(5). Automobile service station (see definition).
(6). Bus passenger terminal buildings, transit terminals.
(7). Casino.
(8). Drive-in banking facility.
(9). Electrical distribution station.
(10). Hostel, youth.
(11). Law enforcement/fire stations.
(12). Libraries, museums, and similar cultural facilities.
(13). Mini -brewery.
(14). Quasi -public buildings, non-profit in character..
(15). Railroad rights -of -way.
(16). Schools, commercial (see definition).
(17). Shelter, public or private.
(18). Temporary building/structure.
(19). Transmission towers and accessory facilities.
(20). Water storage facilities.
Property Development Standards.
(1).
Minimum Lot Area: N/A
(2).
Minimum Lot Width (FT): N/A
(3).
Minimum Yards (FT):
Front Yard - N/A
Side Yard - N/A
Side Corner - N/A
Rear Yard - N/A
(4). Maximum Building Height (FT): 72
(5). Permitted Lot Coverage (%): N/A
(6). Off -Street Parking: Refer to Sections 27.26 and 27.27.
(7). Maximum Fence Heights (FT):
Front - 0
Side -0
Rear - 0
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