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1. Kalispell Downtown CenterKalispell Development Corporation March 24, 1998 Mayor and City Council City of Kalispell P.O. Box 1997 Kalispell, MT 59903 Dear Mayor Boharski and City Council Members: !48 Third Avenue East • Kalispell, MT 59901 (406) 752-7491 fax: (406) 755-8017 The Kalispell Development Corporation Executive Board Finance Committee met this morning, March 24, 1998, to discuss the Downtown Redevelopment Site (KDC Site). The discussion included the length of time for the offering, the minimum purchase price, and the minimum parcel size. The following recommendations were made: Board Members felt that anything less than a 60 day offering of the property would not allow potential purchasers a reasonable period of time to research and prepare an offer to purchase. A 30-45 day period was discussed but there was no consensus that the shorter term would be in the best interest of the City. After a lengthy discussion regarding purchase price, Board Members felt that a minimum of $6.65 per square foot with no maximum price established would be appropriate. No property in the CBD has been sold under that price in recent years and a sale price at a lesser amount would have a severe impact on the tax base and property values in the core area. In an effort to promote redevelopment of the property, Board Members felt no minimum parcel size should be included in the offering document and, therefore, firms or individuals could submit proposals to purchase one or two lots and construct owner or tenant occupied buildings similar to those already in existence throughout the CBD. KDC members are available to discuss the KDC Site with you at your convenience. Sincerely, Lee Berger, President cc: Clarence Krepps, City Manager KDC Executive Board Members KDC Site National Flood Services Property Summary of Important Facts Summary of Important Facts • Property Identification • Location • Neighborhood • Site Description, Shape and Size • Record Owner • Access and Streets • Visibility & Traffic • Topography • Soils • Utilities • Zoning • Parking I Tax Information and Assessment Parking Program & Financing Considerations Business Improvement District Density & Height Considerations Suggested Sales Price Minimum Requirements of Offers to Purchase • Property Identification • Location • Neighborhood • Record Owner • Access & Traffic • Visibility & Traffic • Utilities • Topography • Soils • Environmental Audits • Asbestos Inspection • Zoning • Parking Tax Information and Assessment Parking Program & Financing Considerations Business Improvement District Density & Height Considerations Suggested Sale Price Minimum Requirements of Offers to Purchase Page 32 - Kalispell Zoning Ordinance CHAPTER 27.16 B-4 CENTRAL BUSINESS Sections: 27.16.010 Intent 27.16.020 Permitted Uses 27.16.030 Uses Which May Be Permitted By Conditional Use Permit 27.16.040 Property Development Standards 27.16.010: Intent. A business district to set apart that portion of the city which forms the center for financial, commercial, governmental, professional and cultural activities. This district is not intended for general application throughout the planning area. 27.16.020: Permitted Uses. (1). Artist studio with incidental sales. (2). Athletic club. (3). Automobile parking, commercial or public. (4). Bakery/deli, wholesale/retail. (5). Banks/savings and loans/finance and loan companies. (6). Barber and beauty services. (7). Bar, tavern, cocktail lounge, clubs. (8). Candy products manufacture, retail on premises. (9). Car wash, automobile detailing shop. (10). Catering establishments. N1). Chemical dependency/substance abuse clinic (outpatient only). (12). Chiropractic clinic. (13). Chu rch/worsh ip/parish/su nday school buildings. (14). Clinics, medical and dental. (15). Coin and/or stamp dealers, lapidaries. (16). College/business/trade/music/dance schools - no student residence. (17). Counseling center for the physically or mentally disabled. (18). Dairy bar/ice cream manufacturing, retail on premises. (19). Day care center (see definition). (20). Denturist. (21). Department stores. (22). Dwellings, multi -family above first story. (23). Food processing/retail on premise - no kill/dress of flesh/fowl. (24). Food store/supermarket, etc. - no slaughtering of flesh/fowl. (25). Food stores, retail/under 3,000 square feet. (26). Fruit/wine bar. (27). Furriers, retail sales and storage. (28). Glazier. (29). Hotel, motel. (30). Insurance office and/or claims centers. (31). Investment firms. (32). Janitor supplies/services/contracting. (33). Jewelry/watch repair and sales. (34). Launderette/dry cleaning, customer self service. (35). Life styling center. (36). Liquor store. (37). Locksmiths or gunsmiths. B-4 Central Business - Page 33 (38). Lodges/fraternal and social organizations, non-profit. (39). Massage parlor. (40). Music education with related performance and limited sales. (41). Newspaper office. (42). Office, professional/governmental. (43). Office equipment, supplies/sales/service. (44). Opticians/optical supplies sales. (45). Parks. (46). Pawn shops (no outside storage/display). (47). Pet shops. (48). Pharmacy. (49). Photographic studios. (50). Plumbing/heating materials, retail/service only. (51). Post office - main distribution center. (52). Post office - satellite or neighborhood. (53). Prepared food delivery facilities. (54). Printing/publishing/reproduction/blueprinting/photo- stating establishments. (55). Produce stand. (56). Real estate sales offices. (57). Recreational area, commercial and non-commercial. (58). Repair/service-office/household equipment. (59). Restaurants. (60). Retail business (see definition). (61). Second hand stores (see definition). (62). Shoe repair. (63). Ski rental shop. (64). Tailors/dressmakers/milliners. (65). Take and bake prepared food facility. (66). Telecommunication companies and/or radio common carriers. (67). Theaters in permanent indoor structures. (68). Title company. (69). Travel agency. (71). Undertaking/mortuaries/funeral homes/parlors. (72). Variety stores. (73). Veterinary clinic, small animals. 27.16-030: Uses Which May Be Permitted By Conditional Use Permit. (Amended Ordinance No. 1184) (1). Assembly halls/coliseums/stadiums/convention hall facilities. (2). Automobile sales. (3). Automobile rental agency. (4). Automobile repair garages, excluding body shops. (5). Automobile service station (see definition). (6). Bus passenger terminal buildings, transit terminals. (7). Casino. (8). Drive-in banking facility. {g), Electrical distribution station. t10). Hostel, youth. t11). Law enforcement/fire stations. (12). Libraries, museums, and similar cultural facilities. (13). Mini -brewery. (14). Quasi -public buildings, non-profit in character. (15). Railroad rights -of -way. (16). Schools, commercial (see definition). Page 34 - Kalispell Zoning Ordinance (17). Shelter, public or private. (18). Temporary building/structure. (19). Transmission towers and accessory facilities. (20). Water storage facilities. 27.16.040: Property Development Standards. (1). Minimum Lot Area: N/A (2). Minimum Lot Width (FT): N/A (3). Minimum Yards (FT): Front Yard - N/A Side Yard - N/A Side Corner - N/A Rear Yard - N/A (4). Maximum Building Height (FT): 72 (5). Permitted Lot Coverage (%): N/A (6). Off -Street Parking: Refer to Sections 27.26 and 27.27. (7). Maximum Fence Heights (FT): Front - 0 Side - 0 Rear - 0 Mr. Lawrence Gallagher March 16,1998 Director Planning, Economic & Community Development Dept. City of Kalispell 248 3rd Avenue East Kalispell, MT 59903-1997 RE: KALISPELL DOWNTOWN CENTER KALISPELL, MONTANA Dear Larry: Pursuant to Article 4 of the Purchase Agreement -dated November 14, 1997 between the City of Kalispell and h win Davis & Company, LLC, this letter serves as notice of our withdrawal from the Agreement. The contingencies outlined in Article 4 were not satisfied to our satisfaction. We would kindly ask that you return the earnest money deposit, with interest, at your earliest convenience. Very truly yours, David B. Irwin Member Mr. Lawrence Gallagher March 16,1998 Director Planning, Economic & Community Development Dept. City of Kalispell 248 3rd Avenue East Kalispell, MT 59903-1997 RE: KALISPELL DOWNTOWN CENTER KALISPELL, MONTANA Dear Larry: As we discussed in our meeting of March 13th, while we were unable to satisfy ourselves of the feasibility of buying the entire. Downtown Center property at this time, we would he prepared to pursue a purchase of the property necessary to construct a single phase of the project. The following letter will serve to outline the business terms under which Irwin Davis & Company would purchase that property. Buyer: Irwin Davis & Company. LLC, or its assigns Seller: The City of Kalispell Property: The southern 7 feet of Lot 7 and all of Lots 8,9.10,11,12,13 and 14 of Block 36. Kalispell, Mt: and all improvements located on said Lots. Purchase Price: $169.442 cash payable at closing ($6.65 per square foot) Deposit: Upon execution of a Purchase Agreement in a form similar to that previously executed between the City Of Kalispell and Irwin Davis & Company for the KDC property. Buyer shall forward a deposit in the amount of $8,500. The deposit shall be non-refundable and applicable toward the Purchase Price. Redevelopment: Buyer intends to redevelop the property as a multi -story office and retail complex of approximately 15,000 gross square feet. The Buyer will request the City Of Kalispell perform off -site improvements similar to those outlined in a previously executed Development Agreement dated November 14, 1997. Closing: Closing shall occur within 45 days of the execution of a Purchase & Sale Agreement. Should the Buyer not close on the property by such date, then the Deposit shall be forfeited to the Seller. Documentation: Seller shall prepare a Purchase Agreement within 15 days of acceptance of this Letter of Intent. Buyer and Seller shall negotiate in good faith towards a mutually acceptable agreement. Brokerage Fees: Buyer and Seller acknowledge that Woods and Water Realty (Broker) has been the only agent/broker involved in this transaction. The Broker's fees will be paid by the Buyer. Acceptance: The acceptance of the above terms and conditions is not intended to bind either the Seller or Buyer. Only a fully -executed Purchase Agreement will bind the parties. If the Seller is in agreement with the above business terms, please acknowledge below and return one copy of this letter to Buyer by April 1, 1998. We look forward to working with the City of Kalispell toward a successful completion of this project. Very truly yours, IRWIN DAMS & COMPANY. LLC David B.IIrwin Member AGREED AND ACCEPTED: By: Its: Date: Z N I t�« a NFSBLDG 3500 SF • :60 SF BUILDfNG � ■ ■ • :■■■■■■■■■■■ KELLY MAIN STREET FURNITURE 10,500 SF LOT I I I I no I :I •■���������iii�iiiiiiii�iiiiiii) EXPRESSIONS • 14,000 SF LOT r• ��I ,. .. 10 City Owned LOTS 15 & 16 ►7,000• 4 OwnedCity Public Parking (22 spaces) 00 SF LOT En BLOCice. 421000 5 .f t. g.�t. TOTAL CITY OWNED PROPERTY IN BLOCKS 36 & 45 73,581 SF OF LAND UN City Owned _ \ Public Parking (35 spaces) \ LOTS I,2,3&4 \ 7,000 SF LOT K 45 j �C,CJ. Parking rg�o� ALI