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04. Request for Proposal - Lot 1 - Daley FieldREDEVELOPMENT SITE AVAILABLE Daley Field Kalispell, Montana Up to 2.98 Acres (129,808 Square Feet) Available Zoned B2 - Highway Commercial Located at Kalispell's South Entrance U.S. Hwy 93 Frontage and Signalized Controlled Access 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 Any Licensed Real Estate Broker you may wish to engage to represent your interest in the transaction.2 Redevelopment proposals will be accepted prior to and until 11:00 a.m. Mountain Day Light Time, Wednesday, June 9, 1999, by Clerk of Council, Kalispell City Hall, 312 1 st Avenue East, Kalispell, Montana. This presentation is not an offer to sell the property described and is, instead, a solicitation of offers to purchase. Any offer to purchase must be accepted and approved by resolution of the City of Kalispell and in accordance with disposition procedures specific in the Montana Urban Renewal Law and by 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. Daley Field RFP Property Identification: The property is commonly known as Lot 1, Daley Field Subdivision, Kalispell, Flathead County, Montana. The parcel is zoned General Business, B-2 Commercial, for sale and private redevelopment. Location: Entering Kalispell, Montana, from the south, the parcel is highly visible, located immediately adjacent to and west of U.S. Hwy 93 South. The parcel has over 250 feet of highway frontage. Neighborhood: The subject property and all of the airport property is included within the boundaries of the "KALISPELL CITY" AIRPORT/ ATHLETIC COMPLEX REDEVELOPMENT PLAN (the"Plan"). The Plan is a comprehensive Urban Renewal Plan adopted by the City Council, Ordinance No. 1242, on July 1,1996, to implement the Airport Neighborhood Plan adopted in 1993. A map of the Urban Renewal Plan area and adjacent neighborhoods is attached as Exhibit A. Kalispell City Airport, Montana's busiest general aviation airport, is located west of the subject and is the focus of the City's plan to redevelop the area and the airport into a FAA approved general aviation field. The airport is subject to a Phase I, Feasibility Study conducted by Morrison-Maierle, Inc. completed January, 1999. The City Council acts as an Airport Authority to manage the facility and to attract users, provide more general aviation facilities and hangars, and, in general, enhance its use as a publicly owned general aviation field. It is advised by an appointed Airport Advisory Committee. Lot 2, Daley Field Subdivision was sold to Rosauers Supermarkets, Inc. in December of 1997. Rosauers expects to commence construction of a 50,000 square foot grocery store in June of 1999 with a completion date of June, 2000. Site Description, Shape and Size: A 121,808 square foot rectangular parcel of land (2.98 acres) consisting of all property lying within the Daley Field Subdivision located in the NW 1/4, Section 20, T28N, R21W, P.M.M., Kalispell, Flathead County, Montana, recorded reception #199735115000, records of Flathead County, Clerk and Recorder. Daley Field RFP 2 Subject to a Reciprocal Easement and Maintenance Agreement, recorded by reception #199736015140, records of the Flathead County, Clerk and Recorder. Reserving therefrom a non-exclusive roadway and utility easement, being 30 feet in width, lying southeasterly of and along the most northwesterly line of the above described Lot 1. Record Owner: FEE SIMPLE ESTATE held by THE CITY OF KALISPELL, MONTANA, a body politic. Access and Streets: U.S. Hwy 93 South and a proposed new signalized intersection with 3rd Ave East and at Kelly Road. The Montana Department of Transportation anticipates the contracts for reconstruction of Hwy 93 South as a four lane highway will be awarded in the Spring of 2000 with construction to begin the Summer of 2000. Visibility & Traffic: This site is highly visible from all access points. Recent traffic counts from the MDT indicate approximately 16,000 ADTs along this stretch of U.S. Hwy 93 South. MDT has estimated an approximate 27,000 ADTs per day within 20 years. Topography: All sites are level or gently sloping and at highway grade. Soils: No subsoil information or investigation has been conducted by the City other than a Phase I Environmental Audit of the subject, a copy of which will be made available to interested redevelopers. Utilities: Sanitary Sewer: Sanitary Sewer to the property shall be accomplished pursuant to the Development Agreement between the City and Rosauers Supermarket, Inc. Said Agreement anticipates that Rosauers will construct a sewer line within an easement on the airport property with a main extension to serve Lot 1. Rosauers shall be reimbursed for the expense on an aliquot part basis. A 12 inch water main is located on the west side of Hwy 93 South, immediately adjacent to Daley Field. Development of the property would require the extension of the water main to each of the buildings. Fire hydrants require an 8 inch minimum pipe, and fire sprinkling requirements would be based upon specific Daley Field RFP 3 development proposals as defined in the 1997 Uniform Building Code. 3-Phase, underground electrical power is available at the northerly edge of Daley Field, adjacent to Hwy 93 South. Providing power to new construction will require the developer to provide trenching and conduit per Flathead Electric Cooperative's requirements. Per their current policy on extension of services, Flathead Electric will provide and pull the wire to the building site. Telephone lines are located underground on the east side of Hwy 93 South. Extension of services to Daley Field will require CenturyTel to apply for a permit to bore under the highway. CenturyTel will provide the service at no charge and requires 60 to 90 days to schedule and complete the work. In a May 21, 1997 telephone conversation with John Swenson, Service Representative for Montana Power Company, he provided the following preliminary information: "Under current line extension policy permitted by the Public Service Commission, Montana Power Company feels in its best estimate that natural gas service can be provided at no cost to the potential users locating on Daley Field." Natural gas is available to the site in the following locations: Westside-of Hwy 93 South 2 inch line on the north side of the National Guard Armory (north side of Daley Field) 2 inch line at the Social Rehabilitation Services Building (south side of Daley Field) East side of Hwv 93 South 4 inch line that turns east at 3rd Avenue East. Relocation of pipe is not anticipated with highway reconstruction. BTU demand of the proposed loads will determine if pipe sizing on the west side of highway is adequate or, if because of the Daley Field RFP 4 size of the load, a boring under the highway to access the gasline on the east side of the highway will be necessary. If a bore under the highway is necessary, MPC will have to obtain the necessary permits from the Montana Department of Highways. MPC needs enough lead time to schedule the work prior to the ground freezing. Minimum lead time is dependent on current work load at the time of the request. A minimum of 30 days is needed to acquire the permit from MDOT. During the reconstruction of Hwy 93 South (Spring 2000), MDOT will construct storm drainage for the runoff occurring from curb to curb of the highway. The City anticipates, subject to City Council authorization of additional funds, up -sizing the capacity of the system to accommodate a portion of potential development adjacent to the highway, including but not limited to Daley Field. Plans for storm drainage are available for consideration at this time. It is not anticipated the new highway storm drainage system will be sized to handle all runoff from adjacent properties. Again, the Development Agreement with Rosauers obligates the City to grant an easement on airport property for the storage and treatment of storm water runoff. Proper site planning will need to accommodate the majority of the runoff in a permanent detention pond system. Utilities cannot be located under the detention pond. ;•11:- .WN09111 MDT anticipates the contracts will be awarded in the Spring 2000, with construction to begin Summer 2000. Access to Daley Field can be temporary, based upon final highway design. If a traffic signal is needed, a temporary signal may be permitted, subject to MDT approval and costs paid by City. Future permanent traffic signals are anticipated at the realignment of the intersections of 3rd Avenue East and Hwy 93 South, and Kelly Road and Hwy 93 South. Installation of a traffic signal at the 3`d Avenue East intersection will be accomplished with the Rosauers building or US #93 construction, whichever occurs first. Installation of the Kelly Road signal will depend upon traffic counts, turning movements, and warrants. 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's Daley Field RFP 5 Department of Planning, Economic and Community Development Office. The parcel is zoned General Business, B-2. According to Chapter 27.14. B-2 GENERAL BUSINESS, Section 27.14.010 Intent, the B-2 designation is: "A business district to provide areas for those retail sales and service functions and businesses whose operations are typically characterized by outdoor display, storage and/or sale of merchandise, by major repair of motor vehicles, and by outdoor commercial amusement and recreational activities. The district would also serve the general needs of the tourist and traveler." For planning purposes, copies of the appropriate sections of the Kalispell Zoning Ordinance are attached as Exhibit B. These include: Sections 27.14.020: Permitted Uses; 27.14.030: Uses Which May Be Permitted By Conditional Use Permit; and 27.14.040 Property Development Standards of the Kalispell Zoning Ordinance. Note: The City encourages an attractive, aesthetically pleasing signage plan that shall advertise and promote businesses that are being conducted on said property. The sign(s) shall meet all required setback and size 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. Tax Information and Assessment 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 the tax increment district and eventually 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: Daley Field RFP 6 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 1 /10 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 & Height 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. It wants to encourage construction of high quality and high value building(s). The subject real estate has not previously been available for redevelopment and has in the past provided both open space and an attractive landscaped entrance to the community; therefore, the City wants to encourage redevelopment that will enhance the south entrance to Kalispell as well as meet other objectives of the Plan. 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 or to construct only one or a few single -story low density buildings. While the City does not have a minimum density development standard or requirements, the Kalispell City Council will carefully evaluate all proposals and how it impacts the site, the surrounding neighborhood, and the City's tax base. Proposals that represent architectural and site planning excellence will be given preference in the selection process. Objectives and purpose for the evaluation include: (a) Originality, flexibility, and innovation in site planning and development, including architecture, landscaping, and graphic design of the proposed development. (b) Protect and enhance the south entrance to the City and appeal to residents and visitors and, thus, support and stimulate business and industry and promote the desirability of investment and occupancy in business, commercial, and industrial properties. (c) Stabilize and improve property values and prevent blighted areas and, thus, increase tax revenues. Daley Field RFP 7 Criteria for evaluation of the proposals will be based 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 and the direction of traffic flow into and out of off-street parking and loading areas, and indicate how exterior lighting, utility service, and drainage will be provided. (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). The drawings will show all elevations of the proposed structures and other improvements as they will appear upon completion, including all roof mounted equipment, trash storage areas, and utility equipment. (c) Specifications as to type, color, and texture of exterior surfaces of the proposed structures, including signage, graphics, and illumination. The Kalispell City Council understands redevelopment incentives, the land write -down process, return on investment, and the difficulty developers may have in securing firm financial commitments and financing for significant commercial projects. Therefore, the City will carefully and promptly evaluate all reasonable developer requests for City participation, to the extent permitted by the Montana Urban Renewal Law. 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 the proposals submitted by potential developers of the property, under Section 7-15-4262. 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 free to entertain high price offers for the property, its objective is to encourage highest and best use, excellence in design and siting, employment or job creation, Daley Field RFP 8 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 offers for ALL CASH ON CLOSING. Selection -- Determination of Fair Value: For purposes of establishing a minimum offer the City Council has determined that the Fair Market Value of the property is $ 4.00 per square foot, approximately $519,000 for the 2.98 acre parcel. The City may select the redevelopment proposal and base its final determination of the fair value for the land not only on the purchase price offered but also on criteria discussed in this document, the Goals discussed in the KALISPELL CITY AIRPORT NEIGHBORHOOD PLAN, and the "KALISPELL CITY" AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN (Ordinance No. 1242, attached as Exhibit C). 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 offers 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 , and Redevelopment proposals will be accepted prior to and until 11:00 a.m. Mountain Day Light Time, Wednesday, June 9, 1999, by Clerk of Council, Kalispell City Hall, 312 1st Avenue East, Kalispell, Montana. All proposals will be considered for approval and passage of a resolution authorizing the sale of the property at the meeting of the City Council on Monday, June 21, 1999. The selected redeveloper must be willing 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. (3) 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. Daley Field RFP 9 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 a 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 a broad evaluation of the proposals submitted and how the proposals individually serve the public interest. After the proposals have been evaluated, 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 should be aware that additional public hearings and action by the Council may be required prior to or after the purchase. An urban renewal project involving an amendment to the Plan requires, under Section 7-15-4213, MCA, that the City submit, by resolution, a proposed Urban Renewal Project Plan to the City -County Planning Board for their review. The City -County Planning Board has sixty (60) days in which to receive comment on the proposed plan and make a recommendation to the City. Once a recommendation is received, or after sixty (60) days if no action has been taken, the City schedules a public hearing on the plan after public notice. The City notices the resolution by publication in the Daily Inter Lake and by mailing of notice to all property owners in the Airport Neighborhood Plan area. Publication and mailing must be accomplished in a window between not less than ten (10) nor more than thirty (30) days prior to the hearing. However, the City does not anticipate the need for more public hearings. After the public hearing, the City Council shall be presented with an ordinance amending the Urban Renewal Plan to accommodate the project and its particulars. Under normal procedure, the Council has two readings of the ordinance, at least twelve (12) days apart, and the ordinance becomes effective thirty (30) days after its final passage. This synopsis of the requirements of the Urban Renewal Law is not intended to be an in-depth analysis of the procedures, but an outline of the basis requirements. Any developer desiring to present a proposal should retain legal counsel to evaluate the developer's position in the process. Although the City has not in past considered any proposals involving a ground lease on the urban renewal property, the City in this case may consider such a proposal. However, a proposal for a lease of the property would, in addition to the matters discussed above, be required to contain a covenant that the City would not be subordinate to any mortgage or other financing arrangement. In addition, the City would require ease payments to be approximately 10% of the value of the property. Daley Field RFP 10 ENDNOTES: For the information of prospective proposers the City has attached hereto the following documents: a. Reciprocal Easement and Maintenance Agreement between the City and Rosauers Supermarkets Inc. dated 24 December, 1997, Exhibit D. b. Articles 3 & 4, Development Agreement between Rosauers Supermarkets Inc. and the City concerning their respective obligations, Exhibit E. C. Plat of Lots 1, 2, and 3, Daley Field Subdivision showing future access road from V Avenue East relocation, Exhibit F. d. Report of Tetra Tech, Phase I, Environmental Assessment, Exhibit G. e. Entire copies of documents mentioned above are available at Office of City Clerk, City Hall, City of Kalispell, P.O. Box 1997, Kalispell, MT 59903-1997 or by calling (406) 758-7756. 2. Representation by a Licensed Real Estate Broker: 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. Buyers are encouraged to consider the advantages of engaging a Licensed Real Estate Broker to act as their exclusive agent, providing professional representation and legally negotiating for their interests in areas of: price, special conditions, dates of possession/project completion, participation in off -site development costs, or generally representing the interest and objectives of the Buyer. Agency representation must be disclosed in writing by both the buyer and agent. If the buyer's agent's fee is to be paid at the time of closing from proceeds placed in escrow by the buyer, such information must be disclosed and included in the buyer's Offer to Purchase. THE BUYER MAY ELECT TO PROCEED WITHOUT REPRESENTATION. 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