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2. West Side Tax Increment DistrictINTER OFFICE MEMORANDUM F ILE COPY DATE: February 2, 1999 TO: Glen Neier, City Attorney FROM: Susan Moyer, PECDD SUBJECT: West Side Tax Increment District As Interim City Manager you received a request for financial assistance from City Service for work they either wish performed or have completed in the expansion of their facility on the west side of town. You asked for my comments on this request, and they are as follows: It is the writer's opinion that the City Council needs to set a policy for the limited funds available in this recently created district. The Public Works Department has strongly recommended to Council that they escrow the $90,000 in current TIF funds, as well as future payments for the next several years, to be used to assist the City with the widening of Median Road project. If this is the council's choosing, then there are no funds available to either make low interest developer loans, abate anticipated taxes or perform developer requested off -site utility work. Coincidentally, the timing is right to establish whether the Council wishes to escrow TIF funds for the exclusive use of utility work in the 93 South Project or whether it wishes to incorporate other activities. 2. In a discussion with Public Works, PW staff indicated their belief that it generally is more economically feasible for the City to perform utility work within the City right of ways as well as this work properly belongs under the control and guidance of the City. Again, a policy decision should be provided guiding City staff as to their role in assisting in off -site utility work such as previously done with TIF assistance around the Kalispell Center Mall and Tidyman's. 3. Finally, the TIF policy (both the original and the revised) does not allow for reimbursement for work already completed. The reimbursement aspect was one of the reasons the Depot Plaza. Project failed to receive funding. 4. Aside from TIF comments, the City Service project points out the need for the City of Kalispell to adopt design standards on a city-wide basis. The need to adopt design standards should be placed on a city council workshop agenda. Cc: Al Thelen, Interim City Manager C:\myfiles\PECDD\TIF January 14, 1999 Mr. Glen Neier Acting City Manager City of Kalispell 312 Is' Ave East Kalispell, Mt. 59901 Dear Mr. Neier: Following is a summary of estimated and incurkfor or on -site improvements related to water and storm runoff mitigation with the Wproject. As discussed with the council, we are requesting TIF fund reimburseese costs along with anticipated expenses for sidewalk, lighting, and highway ri planned for the spring. The anticipated budgetfor these two TIF project 's12. We propose a Developer's Agreement that would reflect the anicipate $2mum increased taxable valuation over a five-year period to cover a c TAX INCREMENT ITEMS: Site Water Mitigation and Storm Sewer Improvements — Actual Costs 11 rolls of filter cloth $ 4,400.00 6,208.12 yards of fill material screened and compacted 45,008.87 Separator tanks, manholes 6,683.50 Labor 8,451.52 Pipe and fittings 3,179.53 Drain rock and compaction 9,219.70 Total $ 76,943.12 P.O. Box 1 • 1645 Hwy. 93 South • Kalispell, Montana 59903-0001 9 (406) 755-4321 . 800-343-3835 . FAX (406) 756-8591 OR Highway Beautification and Pedestrian Improvements -- Estimated 4 light poles $ 9,600.00 Electrical bases and wiring 6,400.00 Hwy 2 sidewalks, curbs and gutters 16,480.00 Seating 500.00 Landscaping, irrigation and grass 15,000.00 Total $ 4'7,980.00 Enclosed are the actual billing invoices for the storm water mitigation. Also, the selected light poles and proposed design for the highway beautification is included along with a rendering of the new building. If you have questions, please call. Sincerely, Ak Ww� Matthew J. Waatti Vice President - Properties Russell Olsen Trucking 2828 Helena Flats Road Kalispell, MT 59901 Phone (406) 752-0051 Fax (406) 257-8889 Federal ID #Ov INVOICEa DATE: s_ OUST. ORDER NO. DATE SHIPPED SHIPPED VIA TERMS SALESMAN F.O.B. OUR ORDER NO. QTY ORDERED ` :,� • B/0`. ; QTY SHIPPED :: '':.. DESCRIPTION UNIT PRICE AMOUNT ' ' 3 y,.2S� 6��i �'+� -�- l l.a . oo• 33.3•br . I . ,. CP o v o o I DO col oa �og�/a d��� � la454 e n't Pdn14q J I lEG� TT-s t . r . Russell Olsen Trucking 2828 Helena Flats Road Kalispell, MT 59901 Phone (406) 752-0051 Fax (406) 257-8889 s i s CUST ORDER NO. DATE: J DATE SHIPPED SHIPPED VIA TERMS QTY ORDERED W0 QTY SHIPPED DESCRIPTION I � .9i .-h - .y »sr. Primp Federal ID # =¢ji,;:�ra` YF{ . INVOICE F� i •; i %j I SALESMAN F.O.B. OUR ORDER N0. }= UNIT PRICE AMOUNT /dZ I 3 3 8171:. t o oZ OO, I oa ?r,.- F. 4�0 BD -fly �D ao I las' d.5 iA ISM > _ 6-00 Op r", a 3 ,�.. . c. %Aank DATE: Russell Olsen Trucking 2828 Helena Flats Road Kalispell, MT 59901 Phone (406) 752-0051 Fax (406) 257-8889 e LtJ J"��=c�71 CUST. ORDER NO. DATE SHIPPED SHIPPED VIA TERMS QTY ORDERED `- . B/0 QTY,,S//HIPPED DESCRIPTION 1 1 V7 1 y 7o 7 ��� 04 At's hBNYp Federal ID # INVOICE SALESMAN F.O.B. OUR ORDER NO. UMT PRICE AMOUNT ` A 18' % AO I alp I i i I %Aank DEC-15-1998 08:28 GLACIER PRECAST P.01 Glacier Pre -Cast Concrete Inc. _ Pat & Wilma Siemens 2721 Hwy. 93 S. - Kalispell, MT 59901 - (406) 752-7163 • FAX 752-7167 - Evening & Weekends (406) 837-517= Pax Transm ttaf To: S - .`�A CeLIZ-4 SNP . Fax Number: 75-5' - Prom: Nurnber.of Pages (including this sheet): / Notes: l 1,00 AU a 4/ OU :560,4,0 r©4,' A�A/ �U 7N/ Af IAIS 415 . s .i JA re efiSeVS CF 9190:50 i -ROM,: PHONE NO. : Dec. 06 1997 03:55PM P2 SAw Mi12111":M F SERVING THE FLATHEAD SINCE 1953 Ready -Mix Concrete•• Asphalt Paving • Site Preparation Excavating • Utilities • Gravel January 14, 1999 Jackola Engineering 317 1st Avenue E. 'Kalispell, MT 59901- A,ttn: Kris Jackola The total cost for'all curbs and sidewalks as per plans on HWY 2 frontage, of Westbrook project. Work to include: Remove and replace blackdirt, Remove and replace sidewalk and curbing. Total Cost: $16,480.00 Note: Price does not include irrigation, electrical, signage, lighting, and plants if any. Si ce ly 1 Jim Lynch January 14, 1999 Mr. Glen Neier Acting City Manager City of Kalispell 312 1 " Ave East Kalispell, Mt. 59901 Dear Mr. Neier: Following is a summary of estimated and incurred costs for on -site improvements related to water and storm runoff mitigation with the WestBrook project. As discussed with the council, we are requesting TIF fund reimbursement for these costs along with anticipated expenses for sidewalk, lighting, and highway right-of-way planned for the spring. The anticipated budget for these two TIF projects is $124,923.12. We propose a Developer's Agreement that would reflect the anicipated $25,000 minimum increased taxable valuation over a five-year period to cover the costs. TAX INCREMENT ITEMS: Site Water Mitigation and Storm Sewer Improvements — Actual Costs 11 rolls of filter cloth $ 4,400.00 6,208.12 yards of fill material screened and compacted 45,008.87 Separator tanks, manholes 6,683.50 Labor 8,451.52 Pipe and fittings 3,179.53 Drain rock and compaction 9,219.70 Total $ 76,943.12 -2- Highway Beautification and Pedestrian Improvements -- Estimated 4 light poles $ 9,600.00 Electrical bases and wiring 6,400.00 Hwy 2 sidewalks, curbs and gutters 16,480.00 Seating 500.00 Landscaping, irrigation and grass 15,000.00 Total $ 47,980.00 Enclosed are the actual billing invoices for the storm water mitigation. Also, the selected light poles and proposed design for the highway beautification is included along with a rendering of the new building. If you have questions, please call. Sincerely, Matthew J. Waatti Vice President - Properties coo I•l CF Y its s tam -� :' fl: $ox 1134 _ _ :Kalispell, MT 59W3 N MEMORANDUM February 5,1999 To: Al Thelen / Interim City Manager From: Jim Hansz, Director of Public Wor Subject: West Side TIF District project ne To follow up on our conversation this morning, there are at least three relatively large Public Works infrastructure projects within this district that should receive consideration for TIF funds. These are: • Meridian Road drainage improvements related to the construction of Meridian Road improvements. Overall City cost estimated for these improvements is $350,000.00. • Zauner's / Hampton Inn drainage diversion improvements are needed to correct flood elevation changes caused by improvements performed without permit and upstream development. Overall cost of these improvements is estimated to be $422,000.00 based on the preliminary design study. Fiscal 99 / 00 budget for the West Side TIF should include the design of these improvements which is presently estimated to be $65,000.00. • Two Mile Drive, from Meridian Road to the district boundary, should be improved to City standards. This is a significant urban collector street. Growth in the area served by this street is steady and may increase in pace if certain larger parcels on Two Mile Drive are annexed to the City. We cannot precisely estimate the cost of improving this road because no design work has been performed. This project should be designed as soon as possible in order to have it ready to go at the same time that the Meridian Road project is constructed. Estimated design cost for this project is $70,000.00. Preliminary construction cost, not including right of way costs, for this project is estimated to be $675,000.00, but this may change upward as the design is developed. • The total estimated cost of these items, including engineering for Zauner's / Hampton Inn and Two Mile Drive, is approximately $1.58 million. These infrastructure improvement needs should be kept in mind as the City Council debates budget priorities for the West Side Tax Increment District. Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 TO: Susan Moyer, Planning, Economic Development FROM: Michael Baker, 2.At-1101, r Parks & Recreat DATE: February 8, 1999 RE: West Side Tax Increment Budget - Fiscal Year 2000 Susan, While reading the local paper, I came across the article on West Side Tax Increment District. The article highlighted potential commitment of funds for projects in the district. The City of Kalispell has two major neighborhood parks located in the district, Greenbriar and Hawthorne. I would like to recommend the use of '-these funds to improve and develop these neighborhood parks. Greenbriar, a relatively new park, has only an irrigation system and grass. I've conducted neighborhood meetings with the residents and would like to recommend playground equipment, benches and tables, and the planting of trees. The residents are willing to participate with the tree purchase and planting. Hawthorne Park is in dire need of resurfacing the tennis and basketball courts. If this is not possible, I will be including these projects in the coming year's capital budget/general fund requests. Below is an estimate of potential expenditure for these park improvements. 1. Greenbriar Park: Playground equipment $8,500.00 Benches, tables and signs 1,000.00 Trees and landscaping 4,500.00 Subtotal $14,000.00 2. Hawthorne Park: Resurface tennis & basketball courts Thank you for consideration of these parks. needed, please feel free to call. MB/dlw 9,500.00 $23,500.00 If further information is INTER OFFICE MEMORANDUM DATE: February 2, 1999 TO: Glen Neier, City Attorney FROM: Susan Moyer, PECDD SUBJECT: West Side Tax Increment District As Interim City Manager you received a request for financial assistance from City Service for work they either wish performed or have completed in the expansion of their facility on the west side of town. You asked for my comments on this request, and they are as follows: It is the writer's opinion that the City Council needs to set a policy for the limited funds available in this recently created district. The Public Works Department has strongly recommended to Council that they escrow the $90,000 in current TIF funds, as well as future payments for the next several years, to be used to assist the City with the widening of Median Road project. If this is the council's choosing, then there are no funds available to either make low interest developer loans, abate anticipated taxes or perform developer requested off -site utility work. Coincidentally, the timing is right to establish whether the Council wishes to escrow TIF funds for the exclusive use of utility work in the 93 South Project or whether it wishes to incorporate other activities. 2. In a discussion with Public Works, PW staff indicated their belief that it generally is more economically feasible for the City to perform utility work within the City right of ways as well as this work properly belongs under the control and guidance of the City. Again, a policy decision should be provided guiding City staff as to their role in assisting in off -site utility work such as previously done with TIF assistance around the Kalispell Center Mall and Tidyman's. 3. Finally, the TIF policy (both the original and the revised) does not allow for reimbursement for work already completed. The reimbursement aspect was one of the reasons the Depot Plaza Project failed to receive funding. 4. Aside from TIF comments, the City Service project points out the need for the City of Kalispell to adopt design standards on a city-wide basis. The need to adopt design standards should be placed on a city council workshop agenda. Cc: Al Thelen, Interim City Manager C:\myfiles\PECDD\TIF January 14, 1999 Mr. Glen Neier Acting City Manager City of Kalispell 312 1"Ave East Kalispell, Mt. 59901 Dear Mr. Neier: Following is a summary of estimated and incurred costs for on -site improvements related to water and storm runoff mitigation with the WestBrook project. As discussed with the council, we are requesting TIF fund reimbursement for these costs along with anticipated expenses for sidewalk, lighting, and highway right-of-way planned for the spring. The anticipated budget for these two TIF projects is $124,923.12. We propose a Developer's Agreement that would reflect the anicipated $25,000 minimum increased taxable valuation over a five-year period to cover the costs. TAX INCREMENT ITEMS: Site Water Mitigation and Storm Sewer Improvements — Actual Costs 11 rolls of filter cloth $ 4,400.00 6,208.12 yards of fill material screened and compacted 45,008.87 Separator tanks, manholes 6,683.50 Labor 8,451.52 Pipe and fittings 3,179.53 Drain rock and compaction 9,219.70 Total $ 76,943.12 P.O. Box 67 — Kalispell, MT 59903-0067 16 Woodland Park Dr. — Kalispell, MT 59901 October 7, 1998 Glen Neier, City Manager Kalispell City Council The City of Kalispell P.O. Drawer 1997 Kalispell, MT 59901 RE: South East Woodland Park, Bank Stabilization, and Boundary Adjustment Dear Glen: (406) 755-2497 Fax: (406) 756-8706 Mike Baker from City Parks and Recreation have been meeting and looking at the South East boundary of Woodland Park and our adjoining property. We have discussed away to stabilize, slope, secure and improve the looks of that area as well as tie our two parcels of land together. To state the facts: 1) The City of Kalispell has a pie shaped piece of property between our two parcels of land as shown on the attached aerial photo (subject area). This is a steep, unmaintained hillside. It is over a thirty percent grade, and is too steep for pedestrian, bike or handicap access. 2) The South West corner of 'Lot 30-30' is a dangerous and unsightly clay bank. The children are digging holes and we are very concerned about cave-ins and their safety. 3) The City of Kalispell is considering accepting Woodland Park Drive from Flathead County. There are encroachments that have shown up on 'Lot 30-30' with Woodland Park Drive 'Right of Way'. 4) We own 'Lot 30-30' and the Anderson Masonry lot, on each side of the 'Subject Area', owned by The City of Kalispell. We would like to offer a "Win -Win" proposal as follows: 1) We would like to tie our two parcels of property together to better arrange our masonry yard, by trading The City of Kalispell for the 'Subject Area' parcel between our property as shown on the attached aerial photo. 2) By providing an easement or trading the South end of our Southernmost 'Lot 30-30', The City of Kalispell would have a fairly level access to the Conrad Complex. 3) With The City of Kalispell and us working together, we could provide enough room along Woodland Park Drive for a bike and pedestrian path. This would provide a great deal of public safety. This will also clean up the 'right of way' boundaries along Woodland Park Drive. October 7, 1998 City of Kalispell Page 2 4) The West boundary of the Anderson Masonry parcel is about midway up the long hill extending from the railroad tracks South to Woodland Park Drive. We would like to use a boundary line adjustment to move this line up to parallel the East edge of the hill. This would allow us to Control erosion, maintain the slope and the trees. 5) That the City Council appoint a committee to work out the details with us, and bring back a final draft for consideration. Benefits to The City of Kalispell: 1) A dangerous bank would be removed and properly sloped, seeded and landscaped to stop erosion by us. 2) The South East end of Woodland Park would be fenced to control unauthorized entrance to the park by us. 3) To preserve and enhance a beautiful overlook. 4) To add land to the tax rolls. 5) The access to the Conrad Complex would be easily accessible, safe and naturally tied in with the existing trail system plan within Woodland Park. 6) Soils removed in grading the hillside would be available to The City of Kalispell at no charge except for the loading and hauling if the need is there. 7) Survey monuments would be provided by us. 8) The 'Right of Way' encroachments would be resolved together. We believe that, by working together we can accomplish an improvement that is needed on that edge of the park. By adjusting the property boundary's, we could bond our two pieces of property together, which would make our storage and display so much easier. Thank you for your time and consideration, and I hope to hear from you soon. Sincerely, 1 1 Don Anderson Enclosures cc: Glen Neier Mike Baker Bruce Lutz Bud Anderson Jim Hance wp51 \wpark.98 Taco John's of Kalispell 150 N. Main Street Kalispell, Mt., 59901 City of Kalispell 312 1 st. Ave. E Kalipell, Mt., 59901 Attention: Mr. Glen Neier, City Manager Dear Glen: This letter is in response to our conversation of January 7, 1999. I have received a letter from the Hardee's headquarters in Irving, California, verifying that they too, are desireous of abandoning the alley between Taco John's and Hardee's of Kalispell. I am enclosing a copy of this letter dated January 8, 1999. The legal description of the Taco John's property is, Sn Tn Rn=18 28 21. Thank you for your consideration of this matter. Yours Truly, JI/L /ACO JOHN'S OF KALISPELL Laurel Wehr 79 18300 Von Karman Ave. Suite # 910 Irvine, CA 92612 Phone., (949)797-9120 Fax: (949)797-9125 January 8, 1998 Laurel Wehr City of Kalispell Kalispell, MT Dear Laurel, In conjunction with Taco Johns, North Central Food Systems, Inc.(dba Hardee's) would like to express our mutual agreement and support to abandon the alley that runs NorttVSouth between Montana and Highway 2. This is in the block between Idaho and Highway 93. This would be proposed due to the impending highway construction at the intersection of Highway 93 and Highway 2 that will eliminate the north access of this alley_ If you have any questions you may contact John Gillispie at: North Central Food Systems, Inc_ John Gillispie Rocky Mountain Regional Director 2116 Turmaline Court Helena, MT 59601 Telephone # (406) 449-2786 Fax # (406) 449-2665 Sincerely, Robert McIntosh Controller cc. Mohammad lgbal, President Doug ©Tiger, Vice -President Roger D. Jacobson, MAI Real Estate Appraiser & Consultant 1001 South Main Kalispell, Montana 59901 (406) 752-6000 Fax (406) 752-6001 July 14, 1995 The City of Kalispell Attn: Lawrence Gallagher, Director Planning, Economic & Community Development Department P. O. Box 1997 Kalispell, MT 59903-1997 Re: City Owned Site - North of Sanitary Sewer Treatment Plant Dear Mr. Gallagher: Your engagement letter dated June 22, 1995, Item 6, requests a narrative discussion and report of the highest and best use, long term lease considerations, redevelopment potential and/or other uses permitted in an I-1 Zom, for the site located north of the Sanitary Sewer Treatment Plant and specifically identified as Parcel 1 on a Certificate of Survey recently prepared by S. R. Smith, Surveyor. That survey reflects a gross site area of 30.064 acres and net site area of 29.542 acres. The survey does not reflect the location of the runway for the Kalispell City Airport, which crosses the northeast corner of the site, affecting usable site area and restricting building development in a lateral transition zone on a 1:7 plane, beginning 125 feet from the runway centerline. We have examined the site and assembled pertinent data regarding highest and best use, lease and redevelopment potential. Currently the site is improved with soccer fields for public use. As noted, the runway for the city airport cuts across the northeast corner of the site. A few small aircraft are tied down on the site and a large number of various type small trailers are parked in the vicinity fronting Airport Road. The site is to be analyzed with current zoning, which is I-1, Light Industrial. Highest and best use is defined as: "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability."' 1 op. cit. page 149 Implied in this definition is that the determination of highest and best use takes into account the contribution of a specific use to the community and community development goals as well as the benefits of that use to individual property owners. Hence, in certain situations the highest and best use of land may be for parks, greenbelts, preservation, conservation, wildlife habitats, and like. The four basic tests of highest and best use of a property are: 1. Legally Permissible 2. Physically Possible 3. Financially Feasible 4. Maximally Productive Although the four criteria interact and therefore may be considered in concert, for practical purposes legal permissibility and physical possibility are typically tested first to set initial limiting parameters on the highest and best use. The last two criteria concern the possibilities for net positive return and highest possible return. A four part analysis for dealing with these two tests has recently been suggested and will be used in this appraisal:' 1. Land use patterns and recent developments in the area. 2. Supply and demand status considering sales, properties for sale, and occupancies. 3. Use change after the sale of comparable properties. 4. Site value less demolition cost compared to the value as improved. Legal Permissibility of Use - With zoning in the subject as I-1, Light Industrial, the permitted uses are specified in Chapter 27.18 of the Kalispell Zoning Ordinance, pages 45 through 48. Airplane hangars are specifically noted as permitted uses, together with a large number of uses that could be compatible with existing surrounding uses. The large number of permitted uses is considered non-restrictive for the subject site. Physical Possibility of Use - The large size of the site (30.064 acres gross) offers few if any restrictions on use. The topography is generally level and open. Accessibility is good from Airport Road with access from both the north and south portions of the site which front Airport Road. 2Joe R. Roberts. MAI and Eric Roberts, MAI "A No -Nonsense Approach to Highest and Best Use", page 269, "The Appraisal Journal", April 1993. published by Appraisal Institute. Lease Analysis - City Airport Lands 7/10/95 2 Land Use Patterns and Recent Developments - Industrial development has tended to center in two locations, the LaSalle Industrial Park on Ash Road in the Evergreen area, and the Kalispell Industrial Park located 5 miles south of Kalispell on Highway 93. Limited commercial uses have developed along rural highway locations where accessibility was an important factor, such as for Mergenthaler Transport & Storage on Highway 93. Central city areas with industrial development include the area in the vicinity of South Meridian where Meridian Mini -Storage has located. The two noted industrial park developments have experienced recent sales reflecting per square foot prices between $0.50 and $0.70, depending on the size of the sites which ranged from 1.06 acres to 3.87 acres. The vicinity of Airport Road, with the near but off highway aspects, has experienced limited commercial development in recent years, with most commercial activity taking place north of 18th Street. The areas south and west of the city airport on Airport Road have been actively developing with new residential subdivisions. Supply and Demand - One current listing of a site with I-1 zoning was noted, fronting the City Airport at the southeast end of the runway. That site has transferred several times in recent years as each new owner is apparently speculating somewhat on the potential for appreciation in value. A transaction which just closed involved a 9 acre parcel fronting on Highway 93, (with B-2 zoning) between the highway and the city airport runway. The purchaser is in process of constructing a 24,000 square foot farm and ranch supply store on that site, and plans to develop a portion of the site for other uses. There have been a limited number of available sites near the airport, and an apparent limited corresponding demand, at least until the last few months which noted the 9 acre sale and the current listing. On the Airport Road side of the runway no recent sales or listings were found. Use Chanee After Sale (Comparable Properties) - Use changes have been limited to those from vacant or unimproved land to improved. Site Value vs. Value as Improved - It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. With the subject being vacant and unimproved (except for the airport runway), the value would necessarily be considered as vacant. Conclusion of Highest and Best Use - The subject is concluded to have a highest and best use for potential development with airport related uses, particularly those which would qualify as permitted within the I-1 Zoning. With regard to long term benefits to the owner (City of Kalispell), the potential exists for long term ground leases, preferably to lessee's who would desire to construct improvements which would contribute to the tax base, resulting in tax income as well as lease income from the site. Lease Analysis - City Airport Lands 7/ 10/95 3 Leasing Potential: With regard to leasing potential, we investigated ground leases around the State of Montana as well as parts of Idaho and eastern Washington. The following is a tabulation of findings. IDENTIFICATION $/SQ FT / YEAR RANGE Billings $0.06 to $0.17 Bozeman $0.05 to $0.20 Great Falls $0.035 to $0.05 Helena $0.055 to $0.11 Kalispell $0.065 to $0.10 Missoula $0.075 to $0.13 Sidney $0.04 McCall, Idaho $0.05 Boise, Idaho $0.035 to $0.07 Spokane, Washington $0.10 to $0.117 The Montana locations were surveyed by the Montana Department of Aeronautics in 1994, with data supplied by airport managers. The ranges of lease were reported to deal with "unimproved" and "improved" sites, with improved noted as being served with utilities. The Idaho lease data was obtained from an appraiser in Boise and reflects 1993 data. The Spokane information came from an appraiser in Spokane, and reflects data from 1989 through 1993. Also included in the Spokane information was a schedule noting changes in a 35 year lease beginning 1-1-93. Lease Escalation Schedule - Spokane 1-1-93 to 12-31-02 at $0.10/sf/yr 1-1-03 to 12-31-07 at $0.115/sf/yr 1-1-08 to 12-31-12 at $0.13/sf/yr 1-1-13 to 12-31-17 at $0.15/sf/yr 1-1-18 to 12-31-22 at $0.17/sf/yr 1-1-23 to 12-31-27 at $0.195/sf/yr Lease Analysis - City Airport Lands 7/10/95 4 Additional detailed lease data was obtained regarding two leased sites in Missoula. The first is a 16,996 square foot site leased for hangar use, with the lease beginning 5-27-87 and running for 20 years, at $0.075/sf for the first 10 years, $0.10/sf/yr for the next 5 years and $0.13/sf/yr for the last 5 years. The lease date indicates that the $0.075/sf/yr will be in effect until 5/96, changing 6/96 to $0.10/sf/yr. The lessor is the Missoula County Airport Authority and the lessees are R. D. Kembel and T. G. Stevens. A six bay hangar was constructed on the site. The second lease is from Missoula County Airport Authority to Minuteman Aviation, and involves 12.63 acres. The lease began 6-1-88 and runs for 25 years. The lease rate through 6/90 was $0.05/sf/yr, from 7-90 through 6-95 is $0.075/sf/yr, from 7-95 through 6-00 will be $0.10/sf/yr and for the remaining 13 years is $0.13/sf/yr. The lease data in general reflects a fairly narrow range of economic lease potential, with variations apparently due to the location and size of the main airport facility and possibly the size of the site, although the Minuteman Aviation lease involves a large site (12.63 acres) and reflects prices similar to the small leases. The manager at Glacier Park International Airport also stated that the size of the site was not a determining factor in lease rate, with large sites leasing at the same rate as small sites. Lesser demand locations such as Sydney, Montana reflect the lowest prices, with the highest rates in Billings and Bozeman. Glacier International Airport is currently quoting $0.12/sf/yr for new leases. The Kalispell City Airport is not a major airport facility, hence uses such as a Federal Express or UPS facility are not likely. On the other hand the Kalispell City Airport is extremely well located with respect to many businesses on the south edge of Kalispell, and particularly the Outlaw Inn Convention Center. There also appears to be good demand for hangar space and a potential for increasing commercial/industrial demand in the vicinity of the City Airport with pending redevelopment of the ballfield areas on the east side of the runway and the current development of one large site with a 24,000 square foot farm and ranch supply store. It is our opinion thus that land leases in the vicinity of the Kalispell City Airport should fall within the $0.075 to $0.10/sf/yr range, depending on the nature of the individual lease arrangement. The subject site does include one area with substantial frontage on Airport Road, where a large number of trailers are currently displayed "for sale". That area is considered superior to the general hangar development area, with potential for lease rates in the upper portion of the noted range, perhaps as high as the $0.17 to $0.20/sf/yr noted in the Billings and Bozeman areas. The potential for leasing to someone for construction other than that which would be related to the city airport was examined. Assuming a ground lease at the lower end of the proposed range, $0.075/sf/yr, a one acre parcel would have a lease amount of 43,560 X $0.075 or $3,267/yr. At a 10% capitalization rate this would suggest a site value of $32,670. This would compare with a 1.06 acre industrial site sale at $32,500. The implication is that there is little if any incentive to a lessee to lease rather than purchase, unless he could invest the capital at a return of more than 10%. In addition an owner would have the benefits of any increase in value with Lease Analysis - City Airport Lands 7/10/95 5 the ownership, whereas on the lease he would likely be faced with increased lease payment in later years. The potential for leasing other than for airport related uses thus appears minimal. It is recommended that an overall plan be developed for the available area, identifying various potential usable sites for hangars and related uses. Reproductions of available maps and surveys which identify the subject area are attached. tL Lz-� oger D. acobs , MAI hn . Atkinson rdj Lease Analysis - City Airport Lands 7/10/95 6 3AB I+ �7E L K S'r 1' O 1 A _ lf.A i ON 2 r BA a. B, pi NATIONAL D GUARD I ARMORY 10 to fft �— - --- -- _-- — BC B A 7 52 TOF TOE i I( J KElty 3AA ;A 2A ll2AAED x - 2AAD 709 70t I T 0 O \ \ 2AA8 TEM 7EOA ia 2A C �• 2 d I `\ 7a0�C TAB \ \ \ \ ' .\ 7448 1 2f \ tc I 7tp _ c 38A ( ,. / 2FA /'.� 2 \ E0 4 1 t �BA4 .�399 l i 2 J A \ I(I 2 J Ics% -- - -- — - - . - 7J8 SA 68 i CERTIFICATE OF SURVEY SW1 /4 NW1 /4 & NW1 /4 SW1 /4, Sec 20, T28N R21 V FLA THEAD COUNTY, MON TANA 1317.27' N89 46'16 "W f� stel' 1265.46' Parcel 1 W Centerline o N 30.064 Acres G45s N o = 24 47'08' N89 59 28 £ . " R = 100 00' e 278.13' 29. 542 Acres Net $hh L=4J.16' Ii Q p o '18690/.�1S00 Cain .b Q0� w��2 " ^ "-SBa°tt/2• -per in 517.BJ' a 1\ N J on'oo17.8J' .I51 L?�, �eb,� '\` ansst� N r. \ c0 t , s N 0) O r—d 5/8 2 i� '� OIL � � rn p ✓✓ reoi .dn N O \ u G� b 99 N p iiwe.d ero N p POT 5saia0 tl 934'41 "W n R/IY 4a0a• - r 277 44' e S� R = J15.00' rn L - 234.67' oa A42'41'07 ,r Q n 6�• R = J00.00' R = 615.00' POT ve..o O 4aaO' z r �� ©�\\ L - 223.50' L = 116.42' R/weaoo' - O p = ?009'46'" I ` R = 285.00' /f L - 212.J2' R = 600.00' 80.00, L - 211.14' �ry ry Q- _ N R - 60.00' R - 585 00' ZOO' o, L - 81.67' L = 205.87' N a- 78.10'S5- s7 75 00 SEC 19 �$BC ?.0 = 112.81' O 1.18t�2''39f 333.8T O (j°;s �. as eewrdar me _ _ - �eaao 65 4 sou' -�— --=---------- 1224.20' 3 g N89'40'03"W SW Corner m: ^ Pow of BEGINNING SWl/4 NW114 IH." PARCEL 2 Parcel 2 Section 20 �og; 7- Found 21 diam. z `''° p' � a, m 26. 219 A cres Gross AIOOH all uminuinu m cop � '`:.., Nu N .�, Q ~� 25.694 A cres Net I anrvrrzo N �'posy' 19y Approximate centerline` ��r±���n ��' Zs �'•� .?*b9 j of Ashley Crook Lyl.J� R1W 8000. ►� z Q Found controlling section comer as noted -L 1\ Found 5/8" diam. rebor with 1 1/4' diam '�• yellow plastic cop morked. "SAI11N 4740S" Q Found 5/8" dom. steel pin N ¢j :o. �• y r` _ u O b P�J y b Found 518 ■ Found monument a$ noted 2 ^^i I !r, o' rebor wj ; I N f �-i. `�O i cop mkd Found fence comer per CS 5041 `� s 0 39 •54285" o O Found 2 1/1" X JO' aluminum monument per CS 5041 ^ N z o Q Set 5/8" diam. rebor with 1 1/4' diam. ry N ^ m S$�`'s }• yellow plastic cop marked. 'SAI11N 474OS"N6S7 r. O• Rec Record measurement per CS 7667, see v rtiea 4,o 1 S8715'36µ, CS 12140 for all other record measurement N 9:J%J/y, 108.9I" 0.83' °�i [sens'so-w Basis of Bearing: Solar Observation r%es'-Rxl N h Found 5/8' rebor 3 p per CS 7667 �Z. L GRAPHIC SCALE _2_°O y9Fnd 5/8" rebor 7 9 per CS 7667 z�-® o ioa xoo O -"'Q.00 -� 43, t inch = 200 ft e �A:l (jr Lrrv; — �— S893675'E (589'30'58"£-Rec) / i7 LJe a i %i Y S:� 1317.46' (1J78.24'-Rec) 1131 South Main =�= P. O. Box 7323 S TV 1 14 S Ty 4 ' ^ � 1316 5O' Kalispell, MT 59903 nil— _./ . r-, r• \ .� r -+ -.... � Q, I-1 Light'Industrial CHAF>-rF= < ER-11-7 - 1 a I -- 1 1_ I GHT I MnUSTF< I At_ I Sections : II i� 27.18.010 Intent it 27.18.020 Permitted Uses I� 27.18.030 Uses Which May Be Permitted By Conditional Use II IPermit i 27.18.040 Property Development Standards I 27.18.010: Intent. An industrial district to provide areas for light industrial uses that typically do not create objectionable characteristics (such as dirt, noise, glare, heat, odor, smoke, etc.) which extend beyond the lot lines. Such light industrial uses would include light manufacturing, processing, fabrication and assembling of products or materials, warehousino and storage and transporation facilities. This district is also intended to accommodate various adult -type uses that may otherwise infringe or negatively influence the residential or commercial character of other Zonino districts. 27.18.020: Permitted Uses. (1). Alcohol/alcoholic beveraoe. manufacture. (2). Alcohol beverage, distribution. (3). Appliance distributors, wholesale/repair. (4). Art foundry, metal sculpture, molding and casting. (5). Assembly of machines and appliances. (6). Auction house - excluding livestock/animal/fowl. (7). Automobile. assembly and manufacture. (8). Automobile parking, commercial or public. (9). Automobile repair garages, excluding body shops. (10). Automobile service station (see definition). (11). Bakeries or baking plants. (12). Bedding/carpet/upholstery, -- manufacturing, cleaning, renovating. (13). Boat building/repair. (14). Boat sales, new and used. (15). Book bindery. (16) . Bottling wort::s/soft drinks. (17). Buildino materials, storaae/sate includino lumber yards. (18). Bus repair and storage. (19) . Cabinet shop. (20) . Candy products manufacture, wholesale. (21). Car wash, automobile detailing shop. (22). Clothing manufacture. (23). Cold storaae plants. (24). Concrete products/paving materials/mixing plants. (25). Contractor's plants/storage yards. (26). Uairy bar/ice cream manufacturing, retail on premises. ROGER D. JACOBSON, MAI I-1 Light Inaustrial (77). Tire recapping and retreading. (78). Trailer sales areas. (79) . Trucl-.: rentals. sinale axle. less (SO) . Upholstery shop. (81). Warehousina. (32). Waste paper/rags collection and (83). Well drilling business. (84). Well pump sales and service. (315). Woodworking shops, mill work. 27 .1 S .020 : Uses Which Conditional Use Permit. than 20 ,100# gvw. . bating. May Be Permitted By (1). Airports, hangers, and landing fields. (2). Auction yards. livestock. (3). Auto wrecking/junk yards (see definition). (4) . Bar, tavern. cocl::tail lounge. clubs. (5). Bulk: storage of liquified propane and similar flammables. (6). Canvas/burlap products manufacturing, sales, and storage. (7). China manufacture. (8). Electrical distribution station. (9). Electric light/power generating station. (10). Emery cloth/sandpaper manufacturing. (11). Enameling, japaning, lacquering, plating, galvanizing of metal. (12). Excelsior/fiber manufacture. (13). Explosives, ammunition, fireworks, gunpowder manufacturing. (14). Extractive industries. (15). Feed/seed processing and cleaning. (16). Flour mill. (17). Fuel oil, gas, petroleum products bull:: storage and sales. (18). Furniture manufacture. (19). Gasoline storage (comply with fire code). (20). Glass or class products manufacture. (c^1). Grain elevators. (22). Heliports. (23). Hosiery manufacture. (24). Industrv/lioht manufacturina - no smoke. fumes. odor. dust. (25). Insulation material manufacture and sales. (26). Landfill. sanitary disposal. (27). Law enforcement/fire stations. (22). Libraries. museums, and similar cultural facilities. (29). Machine tool manufacture. (3o). Monument manufacture and stone cuttino and sales. (31). Pottery, porcelain and china manufacture. (32). Railroad freight yards/terminals/classification yards. (33). Railroad rights -of -way. (34). Recyclina center. (35). Rifle range, indoor. (36). Rock crushers. (37). Rodenticide, insecticide, pesticide mixing plants. (38). Schools. commercial (see definition). (39). Sexually oriented business. (40). Sewaae treatment plant. ROGER D. JACOBSON, MAI City of Kaiispell �onino Ordinance (27). Dairy products processing/bottling/distribution. (23). Electrical appliance, manufacture and assembly. (29). Electrical sales and contracting companies. (30). Farm implement sales and service. (31). Farm machinery assembly, repair and sales. (32). Feed and seed. farm supply. (33) . Fertilizer;" bulk sales. (34). Food bank. (35). Food products manufacturing, storage, processing, and packaging. (36). Frozen food lockers. (37). Furriers, retail sales and storage. (38). Garden supplies. retail sales. (35). Gases, liquified petroleum in portable metal cyiinders, storage and sales. (40) . Hangers (airplane). (41) . Hatcheries. fish. (42). Heating, ventilation, air conditioning (HVAC)/sheet metal shop, sales and service. (43). Heavy equipment sales and service. (44). Ice manufacture. storaoe and sales. (45). Janitor supplies/services/contracting. (46). Jewelry and clock manufacture. (47). Laboratories, commercial or industrial research and testing. (48). Laundries/dry cleaning plants. (49). Light assembly of small gadgets/widgets. (50). Locksmiths or gunsmiths. (51). Machine shops. (52). Manufactured home sales lot. (53). Mini -brewery. (54). Mini-storaa_e. (55). Motorcycle sales and repair. (56). Musical instrument manufacture. (57). Optical/scientific instrument manufacturing. (58). Paint and body shops. (5'i) . Parks. (60). Pharmaceutical products, manufacturing, processing, packaging, storaa_e. (61). Plumbing and heating materials, retail and service only. (62). Plumbing shop and yard. (63). Prefabricated building materials, assembly and manufacture. (64). Printing, publishing, reproduction. blueprintingt and photostating establishments. (65). Public utility storage yards and associated offices. (66). Radiator repair. (67). Rag, bag, and carpet cleaning establishments. (63). Rental service stores and yards. (69). Repair/service of industrial equipment or machinery. (70). Repair/service of office and household equipment. (71). Second hand stores (see definition). (72) . Shoe manufacture. (73). Sign manufacture, painting and maintenance. (74). Storaae warehouses, yards - no distribution or sale on premises. (75) . Taxidermist. (76). Tire dealer, alignment center. ROGER D. JACOBSON, MAI Citv of Kalispell 7onina urainance (41). Temporary building/structure. (42). Textile machinery manufacture. (43). Textile manufacture. (44). Tile manufacturina. (45). Transmission towers and accessory (46). Truck: terminal/repair/haulina and (47). Veterinary clinic, large animals. (48). Water treatment plants. (49). Water storage facilities. facilities. storaae yards. 27.18.040: Property Development Standards. (1). Minimum Lot Area: 7000 square feet (2). Minimum Lot Width (FT): 70 (3). Minimum Yards (FT): Front Yard - 20 Side Yard - 10 Fear Yard - 20 Side Corner - 20 (4). Maximum Building Height (FT): 40 (5). Permitted Lot Coveraae (%): N/A (6). Off -Street Parking: Refer to Sections (7). Maximum Fence Heio_hts (FT): Front - 10 Side - 10 Rear - 10 27.26 and 27.27. ROGER D. JACOBSON. MAI 09-Sep-93 KALISPELL CITY AIRPORT - NEIGHBORHOOD PLAN REAL ESTATE ANALYSIS FOR: CITY OF KALISPELL DATE: May 27, 1993 TRACT GEO CODE OWNER SIZE VALUE IMPORVEMENTS NOTES I or PIN Land/AC Land Improvement Type Class Size/SF 1 3968-20-2-08-01 CITY OF KSP 23.05 0 851 41300 HANGAR D 2754 Mountain West Helicopters 1010 1004058 27500 HANGAR D 2818 Bill Simmons 1022 53500 HANGAR D 5824 Jay Bilimeyer 1037 63800 HANGAR S 4800 Eagle Aviation -t038 13700 HANGAR D 1780 Potts 6 Heckel 5B&BB 396&20-3-03-01 Doug MEW 5.07 17275 16100 BDY.SHO D 7500 Stan's Body Shop SHA 3988.20 3-03-03 R&R Dewl.Co 5.21 19M Unimproved SCEB 3988.20.3.03.05 SH,SJ (3) Parcels Elmer Sislsr 13.51 39775 79225 S.F.Res. 1032 Residence 2,FC 3968.203-01-38 Robert Monk 10.9 928M Unimproved 2AD 3988.203-01.0t Robert Monk 0.37 8925 Unimproved 2AC 3966-203-01-03 McGIervVMcnk 1.44 34090 Unimproved 2ACA/ 20-3-01.02 Wiggin 3 2K (2) Parcels Torgersan 1.44 34090 494400 OFFICE D 12894 State Offices/Lease 2C,7AAC 3966-203-01-15 Clark Haley 2.48 37200 Unimproved 7CD (3) Parcels! 2E 3988-20301-40 Wm. Russell 0.81 23114 14400 Unimproved 2D 3968-203-01-43 Torgersc Paullin 1.58 16200 Unimproved 2G 3968-20-3-01-37 TrsetEStevens 1.87 38281 Unimproved 7,AAB/ 3968-203-01-22 ,Plymouth 1.19 64033 81600 SHOP S 7000 7CC (2) Parcels 7AAD 3968-20-"1-2D Ctrk Haley 0.38 380 Unimp.'non-buildable user 7CEB 3966-2030131 Victoria Buxton 0.32 25727 1839M Mixed D 7338 Retail/Warehouse/Hangar 7CEA 3968-20-3-0133 Gr.NorthemRR 0.34 14024 33400 Bldg. D 3072 7CF 3968-20-3-0134 NcLPaaficRR 1.29 58192 Unimproved 7GC 3966-20.3-0135 BIN Timberland 4.57 88828 Unimproved 2A 3966-20.2-08-05 City of Kalispell 23.31 64275 Airport3Ball Fields 3AB 3966-20-2-08-03 L Stocktall 1 37227 238000 Mixed D 22651 Hangar,Shop,Otfce 6D 3968-203-04-01 Doug Ware 20 13415 251311 RES.GAR D 2348 Residence b Garage 2F 39W203-02-01 McG Ie-&Torgerson 4.87 24010 269W Shop D 3200 2FA 3966-203-02-02 LSohiegel 2.33 18980 409M Shop/Add D 3360 Shop 3 Addition 2JA 3968-203.02.03 Hugh LoWen 1 13000 328M Shop/Whs D 2400 21 3W&20-3-02.05 Michael Bdia 1.18 13480 Unimproved 2JB 3966-203-02-07 Michael Bdia 1.01 13030 Unimproved 2B,7CB 3968-203-01-60 BN Timberlands Inc. 8.36 35080 Unimproved 21,7AA 3966-20.3-01-10 JohnR.Dittman/Monk 8.64 79220 Unimproved-Ag.Est 3 3966.204-04-09 City of Kalispell 27 91000 AGRLEST 90,547 Sub -Total 174.18 $2,011,954 S1,820,SW (Total Sq.Ft) 7,587,281 Page 2