06. United Way UDAG Loan RequestREPORT TO:
FROM:
SUBJECT:
MEETING DATE:
C�of Kalispell
Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 - FAX (406) 758-7758
The Honorable Mayor Boharski and City Council
Susan Moyer, Community Development
Chris A. Kukulski, City Manager
United Way Request for Assistance to Relocate to Appleway Drive as Part of the
Community One -Stop Service Campus Complex
December 6, 1999
BACKGROUND: Appleway Development Company, LLC, a group of local investors, has
succeeded in obtaining site control of 12 acres immediately to the north of
Appleway Drive. This group, along with numerous non-profit service providers,
is intending to create a campus style complex for many of the service providers
located within the City of Kalispell.
It is anticipated that this campus complex will consist of five to six one- and two-
story office buildings, which will house approximately 450 employees. A
conservative estimate of the clientele and/or volunteers annually visiting this one -
stop location is in the neighborhood of 20,000 — people who come from all over
the Flathead Valley. The consolidation of providing these services will enhance
delivery to a wide variety of client populations — providing services from the
cradle to the grave.
Representatives from United Way will be attending the City Council meeting on
December 6, 1999, to ask the council to consider making a $125,000 mortgage
loan to United Way out of UDAG Program Income Funds.
Additionally, United Way is seeking assistance from the City to renovate the
existing residential structure into a suitable commercial building. United Way
volunteers will do all of the actual gutting of interior walls, hanging of new
drywall, painting, etc. A local, master electrician has donated his professional
services to do the necessary wiring. The total renovation costs are anticipated to
be $37,300.
The City has set precedent numerous times in donating UDAG Program Income
or TIF dollars to non -profits. $20,000 (UDAG) was donated to Habitat for
Humanity for materials on two of their homes for low-income families. Northwest
Mental Health received a $28,000 (TIF) donation for their safe house. Flathead
Industries for the Handicapped has received a million dollars in UDAG, TIF and
federal grant assistance over the past 18 years. This assistance has been in the
form of cash contributions to their business expansions efforts, construction of a
new office complex, housing projects, interest subsidy on commercial loans they
have obtained, etc. Samaritan House recently received a $100,000 UDAG
Program Income grant to be utilized in their expansion activity.
RECOMMENDATION: Staff is recommending the council authorize a $125,000 mortgage loan out of
UDAG Program Income at a 6% fixed interest rate with a twenty-year term. This
will keep the UDAG funds recycling, continuing to earn interest over and above
the 5.2% to 5.4% rates currently being paid to the City by the Montana Board of
Investments.
Staff recommends the council agree to donate the actual cost of commercial code
compliance materials and work since this involves public safety. The anticipated
code compliance expenditure will be approximately $28,800. The floor covering
and installation as well as the computer and telephone installation are non -code
compliance issues. Thus, staff recommends that the mortgage amount be
increased by $8,500 to cover the costs of the non-commercial code items.
XAL EFFECTS: The lower interest mortgage loan will recycle the existing UDAG Program
Income dollars as well as generate a higher rate of return then provided through
our investment with the Montana Board of Investments. The UDAG Program
Income fund will actually recapture the requested grant amount through Program
Income derived from the final land sales involved in the First Time Home buyer
Program.
Respectfully submitted,
Susan Moyer,
Community Development
Chris A. Kukulski,
City Manager
Report compiled November 19, 1999
United Way
1020 South Main • P.O. Box 7217 • Kalispell, MT 59904-0217
(406) 752-7266 • Fax (406) 755-7266
December 1, 1999
Mayor William E. Boharski & City Council
P.O. Box 1997
Kalispell, MT 59903
Dear Mayor Boharski & City Council Members:
Please accept this letter as an official request for assistance from the City of Kalispell in relationship
to the Human Services Campus project. This project has been in the discussion phase for over five
years and with developments that have occurred over the last six months, it now appears that this
project can move forward and become a reality.
The United Way has agreed to take a leadership role with the project by being the first agency to
move to the proposed site for the Human Services Campus. There currently is a residential structure
located at 40 Appleway Drive that would meet the needs for an office for the United Way. The United
Way has considered the property for some time and has completed a series of inspections on the
property by a private home inspection company, City of Kalispell building and fire departments, the
City County Public Health Dept, and an architectural firm.
The United Way is requesting assistance from the City of Kalispell in two areas which are outlined
as follows:
a. A loan from UDAG funds to be able to purchase the facility in the amount of $125,000.
b. A grant to cover the costs of converting the facility to meet the necessary codes issues to
bring the residential structure into a commercial status in the amount of $38,218.
A listing of the needed commercial code compliance issues as identified by Craig Kerzman, City
Building Official, and Joseph Magaddino, a local Architect are included with this request.
Please let me know if there are additional pieces of information that you will need to make a
determination regarding this request.
Thank you for your assistance in facilitating this project.
Sincerely,
Sherry Stevenj Wulf
Executive Director
cc: Susan Moyer, Community Development
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The following items relate to the December 1, 1999 letter from Joseph Magaddino
Architect:
Item 1:
Make front door accessible and install handicap ramps:
Front Doors 2 @ 247
.494.00
Demo & materials
400.00
Ramp 3' below grade stem walls
2,940.00
Concrete ramp surface
450.00
Railing
1,680.00
New railing for stoop
1,680.00
Excavation
840.00
Backfill & materials
650.00
Subtotal
9,134.00
Item 2:
Patch ceiling & pipe penetrations
150.00
Item 3:
Install handrails in facility
100.00
Remove header
175.00
Close off space under stairs in basement
50.00
Item 4:
Re -sheet rock upstairs
2,500.00
Item 5:
Bathroom Remodel For Accessibility
Remove tub & patch
550.00
Install fan
200.00
Install light
150.00
New toilet
270.00
New sink
300.00
Mirror
50.00
Remove plumbing
200.00
Item 6: Removal of Fireplace on Main Floor
Line chimney 1,250.00
Item 7: Installation of Second Code complying basement exit:
Excavate
240.00
Cut concrete wall
650.00
Door, frame, install, trim
397.00
Concrete Wall
840.00
Steps
1,800.00
Railings
480.00
Slab work
220.00
Drain
250.00
Item 8:
Item 9:
Item 10:
Heat in slab
Removal of northeast covered exit structure
and installation of new structure
Remove structure
Excavate
Tubes
Build Structure
Install door & material
Railing
Architect fees
Paint & counter tops
Item 11: Electrical upgrade
Item 12: Flooring - Bathroom Accessibility
Item 13: Flooring - Balance of Facility
Item 14: Installation of phone/computer lines
Total:
1,100.00
200.00
150.00
300.00
2,050.00
450.00
400.00
750.00
1,350.00
3,500.00
2,181.69
4,030.05
1,800.00
38,217.74
JOSEPH MAGADDINO
ARCHITECT
Delores Partnership LLC
178 E. Blanchard Lake Rd.
Whitefish, Mt. 59937
Dec. 1,1999
P.C.
I have reviewed the Old Carer House on Apple Way in Kalispell for code related issues that may have
to be address as part of the upgrade and modification of the building from a residential to a commercial
use. The issues include, but due to the nature of remodels, may not be limited to the following items:
1) The main level of the building shall be made accessible to the handicapped by the replacement
of all doors with a Y-0" x 6-8" door. The front door shall be provided with hardware and threshold
complying with handicapped standards. In addition, the main entrance shall be provided with a 44" wide
ramp complying with Section 1003.3.4 of the Uniform Building Code, and as shown on Fig. # 1. The ramp
shall be constructed of concrete with a maximum slope of 1 in 12. The 6" wide concrete side walls shall
extend from the ramp surface down to footings Y-0" below finished grade. The ramp shall be provided
with a steel pipe handrail on each side.
2) The existing floor structure has been found to meet the floor loading requirements of 50 p.s.f. for
an office occupancy. All floor/ceiling structures shall be protected by a continuous fire resistive
membrane at the ceiling of 5/8" gypsum or plaster. The foundation, roof structure, seismic and horizontal
shear analysis have not been done as part of this review.
3) The interior stairs leading to the upper and basement levels shall be equipped with a handrail on
one side. Minimum headroom clearances of 6-8" shall be provided at each stair. Due to the fact that these
stairs can not be totally remodeled to meet code requirements they shall be posted as being for
"Employees Only". The area under stairs shall be closed off or protected with 5/8" gypsum directly
applied to the ceilings, walls and soffits.
4) Due to the fact that buildings location relative to the property line is greater than 20 feet, the
exterior and interior walls are not required to be of a one hour fire rated construction throughout, but the
existing combustible wall, surfaces found in some locations within the building, do not meet the
maximum flame spread rating of class -1 as required for type "B" occupancy. Therefor these existing
combustible finishes shall be replace or covered with 5/8" gypsum board.
P.O. BOX 1151 BIGFORK, MONTANA 59911
8 NECMED NEm
406-B37-1220
5) Remodel the existing toilet room area to create one toilet room conforming with handicap area
and fixture standards. The toilet room shall be provided with ventilation and lighting as required in
Section 1202 of 1997 Uniform Building Code. Finish the floor with vinyl flooring and the walls with
a smooth cleanable painted surface as per Section 2902 of the Uniform Building Code.
6) The existing fireplace shall be removed and the furnace flue shall be relined to comply -with gas
fired furnace requirements.
7) The basement shall be provided with a second code complying exit located in the south east
corner of the basement, as indicated by figure #1. The exit shall consist of a T-0" x 6'-8" insulated steel
door leading to an exterior 44" wide concrete stair complying with Section 1003.3.3 of the Uniform
Building Code. Provide the stair with steel pipe handrail on each side. The stair well shall be constructed
of concrete in conjunction with the handicap ramp. Provide a drain at the lower landing and extend drain
pipe to the existing sump pump. Verify the capacity of the existing pump to handle this additional load .
and upgrade if necessary. Provide a ice and snow melt loop from the boiler to this exterior drain.
8) The northeast covered exit structure shall be replaced with a covered wood deck and stairs, post
and beam roof structure, and an asphalt roof to match the existing. The deck and roof shall be supported
on concrete tubes and footings bearing on native soil a minium of 3'-0" below finished grade. Provide
a 3'-0" x 6-8" exit door with hardware and thresholds complying with handicap standards. Provide wood
stair complying with Section 1003.3.3 of the Uniform Building Code. Provide the stair with handrail on
each side.
9) Provide exit lights at interior stair landings, at main level and basement exterior doors and at
living room/kitchen door. Provide emergency lights at all levels. .
Sincerely,
Joseph Magaddino - Architect
IN KIND CONTRIBUTIONS TO THE UNITED WAY PROJECT
1. 50% donation of house inspection 250.00
2. Architect fees to date 600.00
3. Rent assistance from Flathead County 6,000.00
4. Developers time to date 2,200.00
Total: 9,050.00
Other Anticipated Inkind Donations
1.
Real estate fee
3,600.00
2.
Painting
2,500.00
3.
Electrical
1,500.00
4.
Building & construction
6,500.00
5.
Architect fees
750.00
6.
Excavation & concrete
1,500.00
Total:
16,350.00
Total Anticipated In Kind To Project:
25,400.00**
** This figure could be much higher based on how much technical trade skills will be donated
that we have inquired about at this time.
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