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.
Daley Field RFP 11
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