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3. Daley FieldDaley Field Offering Document Summary of Important Facts • Property Identification • Location • Neighborhood • Site Description, Shape and Size • Record Owner • Access and Streets • Visibility & Traffic • Topography • Soils • Utilities * Sanitary Sewer * Water • Electrical Service * Telephone Service * Natural Gas * Storm Drain Zoning Tax Information and Assessment Density and Height Considerations Suggested Sales Price Selection - Determination of Fair Value 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 Roger D. Jacobson, MAI Real Estate Appraiser & Consultant Lease Analysis - City Airport Lands 1001 South Main 7/10/95 Kalispell, Montana 59901 4 (406) 752-6000 Fax (406) 752-6001 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 5196, 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 Ieasing 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. Sincerely, J E2oizer D. Jacobsot , MAI D. Atkinson rdj Lease Analysis - City Airport Lands 7/10/95 6 i 1 AERPORT FUND REVENUE PROJECTION BUDGET ACTUAL MANAGER'S FY96/97 FY96/97 FY97/98 Sale of Land $2,011,061 $0 Haven Field $37,000 $699,729 Daley Field $1,360,000 Loan $32,978 $530,000 Due to other funds $268,995 ($32,978) FAA Grant $90,000 Mt. Aeronautics Grant $5,000 Purchase contract $75,000 Total Available $2,280,056 $69,978 $2,726,751 EXPENDITURE PROJECTION CAPITAL IMPROVEMENTS Capitallmprovements $2,280,056 $69,978 $2,630,972 Cash Carry Over $0 $0 $95,779 This budget anticipates several large changes in City operations. The sale of Haven and Daley Fields, the Masterplan completions, the improvements to the new ball field complex and the potential improvements to the airport. Please note that this budget reflects 15.39% increase in costs. CITY OF KALISPELL 100 FUND: AIRPORT TAX INCREMENT 2185... DEPT.000, FUNCTION I Airport Ballfields Traffic Control Debt Service ACTUAL BUDGET MANAGER'S ACCOUNT FY96/97 FY96/97 FY97/98 $0 $1,189,661 $1,537,547 STATEMENT OF FUNCTION: $68,252 $909,995 $945,377 $0 $110,000 $110,000 $1,726 $70,400 $38,048 $69,978 $2,280,056 $2,630,972 This proposed budget is based on a B-1 standard airport and does not include capital improvement costs for the airport. These costs are not included in this budget year because the City will not complete any capital improvements to the airport until after the airport study is completed. The study could take up to 18 months to finish. The costs that are included in this budget are land acquisition costs, planning and surveying costs and the capital improvement costs for the ballfields. These are costs that could realistically be expected to be spent this year. Additional costs for capital improvements to the airport will come out of future budgets. CITY OF KALISPELL 101 FUTURE SIGNALIZED INTERSECTIONS d 9 FUTURE ACCESS 3RD AVENUE EAST APO jP/ / ROADWAY TO BE DISCONTINUED FUTURE SIGNALIZED INTERSECTION / Js \ °-� SUBJECT PROPERTY \ 15.651 ACRES FUTURE SIGNALIZED INTERSECTION SCALE \ 1'=200' / / THE INFORMA11ON CONTAINED HEREON IS OF A GENERAL NATURE AND IS NOT /�Ps INTENDED FOR DESIGN OR CONSTRUCTION PURPOSES. i 12A, 12AA, 12 E013766 FLATHEAD COUNTY 12C E013750 FLATHEAD COUNTY TOTAL ACREAGE SECTION V IMPLEMENTATION OF THE NEIGHBORHOOD PLAN 24.71 2.11 165.4 The following is a summary of (i) the goals, strategies and recommendations of the Kalispell City Airport Neighborhood Plan, (ii) the costs associated with implementation of the PLAN, and (iii) a recommended schedule with priorities for the capital improvements called for in the PLAN. GOALS: • TO MINIMIZE HAZARDS TO NAVIGATION • TO DEVELOP THE AIRPORT IN ACCORDANCE WITH AN AIRPORT LAYOUT PLAN • TO INCREASE DEVELOPMENT OPPORTUNITIES ON NEARBY PROPERTIES • TO PROMOTE COMPATIBLE LAND USES IN AND AROUND THE AIRPORT • TO ESTABLISH FUNDING MECHANISMS FOR AIRPORT OPERATIONS • TO ESTABLISH A PRIORITY SCHEDULE FOR PLAN IMPLEMENTATION Strategy: Cost • Extend runway to the south to obtain length of 4,700 feet, maintaining a 60' width • Extend single taxiway to parallel extended runway • Increase taxiway width to a minimum of 24 feet • Increase load bearing capacity of runway Land acquisition, excavation and pavement: $530,396.00 Strategy: • Remove objects within Runway Protection Zone (RPZ) and purchase private property located within RPZ. Acquire two (2) private properties Remove objects within RPZ $180,000.00 $15,000.00 The "Kalispell City" DATE: January 23, 1996 11 Airport/Athletic Complex Redevelopment Plan Analysis Strategy: • Strobe the KGEZ radio towers Strategy: • Install PAPI navigation system • Install new runway and taxiway lighting system • Install perimeter fence TOTAL COST OF IMPROVEMENTS IDENTIFIED IN PLAN: $ 3, 400.00 $271,200.00 $1,000,896.00 The PLAN designates both short 0 to 5 years) and long-term (5 to 15 years) priorities for capital improvements at the Airport. SHORT-TERM PRIORITIES of the PLAN (and the associated costs) are as follows: • Attempt to purchase or gain the closure of the private road located within the threshold surface of Runway 31. $18,081.00 • Fence the perimeter of the designated boundaries of the Airport. $136,200.00 • Purchase or trade for land to permit the extension of Runway 31. $345,396.00 • Install a PAPI navigational system on Runway 13. $15,000.00 • Install strobe lights on the FM towers south of the City. $3,400.00 • Improve the wiring system of the runway lights. (There has been no estimate done for just improving the existing wiring.) $120,000.00 TOTAL SHORT-TERM IMPROVEMENTS (INCL. LIGHTING SYSTEM: $638.077.00 DATE: January 23, 1996 12 LONG-TERM PRIORITIES and their costs: • Pave apron areas in area of FBOs for base and itinerant planes. Cost: Unknown and dependent upon ultimate airport design and need. Asphalt paving currently costs in the neighborhood of $1.50/square foot. • Resurface the runway to comply with the load bearing requirements for planes weighing up to 12,500 pounds. • Relocate or widen taxiways to 24' as necessary to comply with the runway to taxiway separation distances. • Extend the runway 700 + feet to the southeast to extend runway to overall length of 4700' as called for in the PLAN and remove all objects in the protection zone. • Replace the runway lighting system (included in short-term priorities) • Extend a single parallel taxiway along the entire length of the extended runway TOTAL LONG-TERM IMPROVEMENTS (W/O LIGHTING SYSTEM): SECTION VI "AIRPORT OVERLAY ZONE" $55,000.00 $13,000.00 $350,396.00 [$120,000.001 $25,000.00 $443,396.00 The PLAN also discusses the application of zoning regulations, in the form of an "airport overlay zone," as a means of promoting compatible land uses in and around the Airport. The PLAN recommends that this overlay be applied to "private properties situated adjacent to or within the designated boundaries of the Kalispell Airport and to those properties influenced by the proposed transitional or threshold surfaces or by the Runway Protection Zone (RPZ)." According to Section 67-6-201 MCA, the City of Kalispell, because it owns and controls the Airport, can and is obligated to control the airport hazard area even if the hazard area is located outside the City. The City may, by ordinance or resolution duly DATE: January 23, 1996 13 adopted, create a joint airport zoning board. The board shall have the same power to adopt, administer, and enforce airport zoning regulations applicable to the airport hazard area. The statute further states that if in the judgement of the (city), the (county) within which is located an airport hazard area appertaining to that airport has failed to adopt or enforce reasonably adequate airport zoning regulations for such area and if (the county) has refused to join in creating a joint airport zoning board as authorized, and the (city) owning or controlling the airport may itself adopt, administer and enforce airport zoning regulations for the airport hazard area in question. All or a portion of five (5) pieces of private property would have to be purchased to implement the Neighborhood PLAN and protect the interests of the City at the south end of the existing runway. The purchase of these properties would enable the runway to be extended to an overall length of 4700 feet and would accommodate the extension and widening of a parallel taxiway as is called for in the PLAN. Rather than simply purchasing a 200-foot-wide swath of land to accommodate these improvements, it is being recommended that the City purchase all property shown on Exhibit 1 . Not only will this eliminate virtually useless (useless to the current owners) remainder parcels, it will afford the City the opportunity to provide the Airport with additional property that could be used for storage and maintenance buildings and/or snow storage. It is also recommended that the property be annexed into the City upon purchase and given a P-1. Public zoning designation. As is indicated on Table 1 (located at the end of this section), the properties in question total approximately 6.44 acres (280,810 sq feet) of land. There are, at this time, five separate property owners involved. Each of the five owners' holdings are described below, as is a description of the City's needs on a property -by -property basis. PRIVATE PARCEL 1 Tract 6D in the SE 1 /4 of the SW 1 /4 of Section 20, Township 28 North, Range 21 West, is owned by Doug and Julia Wise of Kalispell. The total size of Tract 6D is 20 acres. Approximately 1,500 sq feet in the northeast corner of the tract is needed for the runway and taxiway extension. It appears that the property is currently used as cropland. PRIVATE PARCEL 2 Tract 7C and a small portion of Tract 2 in the south %2 of Section 20, Township 28 North, Range 21 West, are owned by Robert Monk of Marion. Together the tracts total approximately 516,000 sq feet in area, of which approximately 14,700 sq feet is DATE: January 23, 1996 14 needed. The parcels are situated immediately south of the existing runway property. They currently function as a segment of a road linking U.S. Hwy 93 to properties west of the runway that do not have highway frontage. It is staff's understanding that the road does not have the required approach permit from the Montana Department of Transportation, and will be closed at the time U.S. Hwy 93 is widened and approved. PRIVATE PARCEL 3 This parcel consists of Tract 500 in its entirety and a small portion of Tract 513 in the SW 1 /4 of the SE 1 /4 of Section 20, Township 28 North, Range 21 West. Encompassing approximately 70,030 of the 208, 650 sq feet owned by Doug and Donna Miller, this parcel lies immediately south of the above -described road. The property is currently used as a depository for a variety of used building materials. That portion of Tract 5B fronting on U.S. Hwy 93 is occupied by a retail boat sales business. PRIVATE PARCEL 4 Private Parcel 4 is the westerly 87,330 sq feet of Tract 5HA in the SW 1 /4 of the SE 1 /4 of Section 20, Township 28 North, Range 21 West. Tract 5HA is owned by R and R Development of Kalispell and is approximately 226,950 sq feet in area. The property is vacant. PRIVATE PARCEL 5 Private Parcel 5 is comprised of the westerly 107,250 sq feet of Tract 5H in the SW 1 /4 of the SE 1 /4 of Section 20, Township 28 North, Range 21 West. Dandi Building Structures, a prefabricated building business, occupies the east % of Tract 5H. The property is owned by Elmer Sieler. DATE: January 23, 1996 15 TABLE 1 KALISPELL CITY AIRPORT Land Acquisition Costs for Runway Extension TRACT OWNER SIZE IN SF SF COST TOTAL COST NEEDED PER SF 2, 7C MONK 516,246 14,700 $1.23 $18,081.00 5B, 5BB MILLER 208,652 70,030 $1.23 $86,136.90 5HA R AND R 226,948 87,330 $1.23 $107,415.90 5H, 5J, SIELER 587,620 107,250 $1.23 $131,917.50 5CEB 6D WISE 871,200 1,500 $1.23 $1,845.00 TOTAL 2,410,666 280,810 $345,396.30 SECTION VII KALISPELL CITY AIRPORT RECREATION ACTIVITIES TO BE DISPLACED AND RECOMMENDATIONS FOR RELOCATION At this time there is a total of sixteen (16) baseball and soccer fields in the vicinity of the Airport. There are six (6) fields used by the Kalispell Youth Softball Association, three (3) Pee Wee baseball fields, one Babe Ruth field and six (6) soccer fields. The 1993 Kalispell City Airport PLAN calls for the elimination of the ballfields and the introduction of more appropriate land uses on those parcels now occupied by the ballfields. Furthermore, the Kalispell City Council has made it clear that they are committed to replacing the ballfields at another location prior to the disposal or redevelopment of the ballfield properties. Three sites have been identified as possible relocation sites for the Airport area baseball, softball, and soccer fields. Each are identified below, with their respective attributes discussed. Option 1: The 620-acre "State Land"- School Section site, located west of U.S. Hwy 93, its easterly boundary, and bordered by Four -Mile Drive on the south, DATE: January 23, 1996 16 Stillwater Road on the west and Reserve Drive on the north. The State Land - School Section site has long been identified as a potential relocation site for the Flathead County Fairgrounds Complex and other public use activities. Because the site is located across the highway from Flathead Valley Community College (FVCC) and is bordered by U.S. Hwy 93 and Stillwater Road (the designated route of the Kalispell By -Pass), and Reserve Street, Kalispell's northernmost east/west urban arterial, it is considered the prime location to consolidate and site the community's outdoor recreation facilities. One -hundred twenty (120) to one hundred sixty (160) acres in the southeast corner of the site would accommodate the community's current and future needs for youth baseball, softball, and soccer fields. The Board of Land Commissioners of the State of Montana (the "Board") has the authority to "direct, control, lease, exchange and sell" school lands such as this which were granted for the support of education. The Board is authorized to lease the land for other than agricultural, grazing, cabin site or mineral production use for up to 40 years. The site is currently classified as agricultural land; that classifica- tion would have to be amended on at least the needed 120-160 acres to accommodate a recreation facility. It is the Board's responsibility to manage state lands under the multiple -use management concept defined in Section 77-1-2030 ), MCA, as the management of all the various resources of the state lands so that: (a) they are utilized in that combination best meeting the needs of the people and the beneficiaries of the trust, making the most judicious use of the land for some or all of those resources or related services over areas large enough to provide sufficient latitude for periodic adjustments in use to conform to changing needs and conditions and realizing that some land may be used for less than all of the resources; and (b) harmonious and coordinated management of the various resources, each with the other, will result without impairment of the productivity of the land, with consideration being given to the relative values of the various resources. The site has numerous positive attributes, including location, accessibility, proximity to municipal services and utilities, suitable soils and topography, and low acquisition costs. Its location west of Flathead Valley Community College (FVCC) and immediately adjacent to U.S. Hwy 93, which is scheduled to be widened and reconstructed in 1996, is of particular significance. U.S. Hwy 93 will be five lanes (four travel lanes with a center turn lane) upon reconstruction which will provide excellent access to the site. Furthermore, both the Four -Mile Drive/U.S. Hwy 93 and the Reserve Drive/U.S. Hwy 93 intersections are signalized and will have right - turn lanes constructed. Improved non -motorized (pedestrian, bicycle) infrastructure is included in the highway reconstruction plans as well. Locating the outdoor DATE: January 23, 1996 17 recreation complex at this location will also be well complemented by the FVCC campus. The City of Kalispell, in a cooperative effort with the college and the Kalispell Tennis Association, has recently constructed an eight -court outdoor tennis facility on the FVCC campus. Additionally, the college is expanding its athletic department, recently adding both men's and women's soccer teams. Abutting the city limits of Kalispell, the site can be easily and economically served by all City utilities. Water is now available at the intersection of U.S. Hwy 93 and Four -Mile Drive, and this year's City budget includes funds to extend sanitary sewer to Reserve Drive. There is also an on -site water well for which the state has water rights for irrigation. A study done for the City by Thomas, Dean and Hoskins in August of 1994 rates the water quality of the artesian aquifer as excellent and indicates that the well has a good production history. The topography of the southeast corner of the site is flat to gently rolling, and lends itself well to the intended use. The irregular topography would promote creative site design, allowing effective separation of uses on -site. The soils, though not tested, appear to be suitable, as the site has been productively farmed since at least 1910. There are no known environmental constraints on the property. Option 2: The 40-acre Cemetery Road Site, located approximately '/2 mile south of the current city limits between Airport Road and U.S. Hwy 93, was purchased by the City in the early 1980s for use as a sludge injection compost site. With the construction of the City's new wastewater treatment plant in the early 1990s, the need for this sewage composting site was eliminated. An attempt was made by the City to lease the site to the Kalispell Pee Wee Baseball Association but, because the site was originally purchased with a 75% EPA match, the City cannot use the property for anything other than a sewage injection field until the EPA is reimbursed. The City is obligated to reimburse the EPA 75% of the current fair market value of the property. The property has been appraised at $85,000.00. In addition to a substantial initial expense for the land (the EPA reimbursement), the Cemetery Road site has other limitations as well. Foremost is the size of the site, just 40 acres. The immediate needs of Pee Wee and Babe Ruth baseball could probably be met at this location, but there would be no surplus land for future expansion, and no accommodations for either girls softball or youth soccer. The location of the property is also less than ideal. Located south of town, it is not easily accessible from most of the community, particularly for pedestrians and bicyclists. The widening and reconstruction of U.S. Hwy 93 may improve access to the site, but it is still a great distance from many parts of the community. At this time, the site is not served by either municipal water or sewer service. The nearest municipal utilities are approximately 1.5 miles from the site on Airport DATE: January 23, 1996 18 Road. Bringing sewer and water to the site, or drilling a water well and providing an on -site septic system, will add substantially to the cost of developing this site. On the positive side, the site is physically well suited for the intended use. It is relatively flat and there are no known environmental constraints. An analysis of soils done in 1993 indicated that no threats to human health existed, and the property's potential use for outdoor sports was not affected. Option 3: The Lincoln Site is a third potential site for the relocation of the ballfields, and is located in the Evergreen area, south of Conrad Drive. The property, approximately 100 acres in size, is apparently being made available by the owner under certain (yet to be identified) conditions. Little is known about this property, but it is the City's understanding that the owner is interested in seeing the ballfield complex located here in conjunction with a complementary private project. RELOCATION COSTS A private consultant familiar with the project and area costs for a single -site baseball, softball, and soccer complex of sufficient size to not only meet today's needs, but to accommodate future growth of the three sports as well, helped in the preparation of the following cost estimate. The estimate does not include land costs but it is assumed that a minimum of 120 acres is needed and may be leased from the State instead of purchased. It is also assumed that each of the three sports will continue their respective historic growth rates - 10% annually. The City Parks and Recreation Department has documented that today, there are over 2,600 individuals participating in youth soccer, girls softball, and Pee Wee and Babe Ruth baseball. That number will exceed 2,900 next year. The professionally prepared cost estimate outlined below is based on a need for a total of 22 fields - 2 Babe Ruth, 8 Pee Wee, 6 softball, and 6 soccer at a single site. (1) BABE RUTH - 2 FIELDS General site work and seeding $26,136.00 Irrigation $ 9,147.60 Fencing $ 8,100.00 Bleachers $ 4,000.00 Backstops $ 7,000.00 SUBTOTAL: $ 54,383.60 DATE: January 23, 1996 19 (2) PEE WEE - 8 FIELDS General site work and seeding $76,665.60 Irrigation $26,832.96 Fencing $ 32,400.00 Bleachers $16,000.00 Backstops $28,000.00 SUBTOTAL: $179,898.56 (3) SOFTBALL - 6 FIELDS General site work and seeding $33,976.80 Irrigation $1 1,891 .88 Fencing $24,300.00 Bleachers $12,000.00 Backstops $21,000.00 SUBTOTAL: $103,168.68 (4) SOCCER - 6 FIELDS General site work and seeding $ 97,200.00 Irrigation $ 34,020.00 Fencing $ 22,500.00 Bleachers $ 12,000.00 Goals and nets (1 pair/field) $ 9,000.00 SUBTOTAL: $174,720.00 (5) OTHER IMPROVEMENTS Paved Parking - 350 spaces $141,750.00 Other site work $ 23,348.16 Utilities $ 50,000.00 Restroom and concession buildings $100,000.00 SUBTOTAL: $315.098.16 TOTAL FOR 22 FIELD COMPLEX $827,269.00 DATE: January 23, 1996 20 SECTION VI11 CONSTRUCTION AND SIGNALIZATION OF U.S. HWY 93 AND 3RD AVE EAST INTERSECTION In order to enhance the accessibility, marketability, value, and utility of the City - owned 17.028 acre Parcel 12, it will be necessary to construct and signalize a new intersection where Third Ave East meets U.S. Hwy 93. Discussions with the Montana Department of Transportation indicate that the site will have a single point of access and that the parcels► will be served by a frontage road located within the U.S. Hwy 93 right-of-way. The improved intersection will also represent an overall benefit to the City as it will eliminate a dangerous acute -angle intersection and enable the City to consider reconfiguring Parcel 11, possibly increasing the usable area, ingress and egress, and thus, the price paid and taxable valuation of land and improvements. Estimated cost of new signal is $100,000. SECTION IX FINANCING ALTERNATIVES HOW TO FINANCE THE REDEVELOPMENT OF KALISPELL CITY AIRPORT AND THE RELOCATION OF THE BALLFIELDS The preceding description of the Goals and Strategies of the PLAN and the implementation actions either required or suggested for Kalispell City Council consideration, demonstrate the complex and comprehensive nature of the project. A comprehensive approach to solving the Airport's problems was recommended by TAP in 1979 and was either ignored or abandoned because of lack of support and commitment to finance and implement the recommendations. The cost of implementing them today is far greater than in 1979 and the demand has never been greater. The preliminary estimates of the cost of implementation discussed in this document are based on the best information available. Land values were established after review of 1995 real estate appraisals conducted by Roger D. Jacobson, MAI. The cost of paving, fencing, lighting, equipment, and the relocation of recreation fields is based on estimates furnished by the City's Public Works and Parks & Recreation Departments and Sitescape Associates. The Montana Department of Transporta- tion's Aeronautics Division also assisted with cost estimates and income projections. Unit costs are based on actual bids for similar work performed in the Kalispell area during the 1995 construction season. DATE: January 23, 1996 21 A SUMMARY OF THE COSTS: TOTAL COST OF IMPROVEMENTS IDENTIFIED IN PLAN (see p. 12) $1,000,896.00 TOTAL FOR 22 FIELD COMPLEX (see p. 20) $827,269.00 SIGNALIZATION COST $100,000.00 TOTAL PROJECT COST Contingency - 10% TOTAL $1,928,165.00 192,816.50 $2,120,981.50 This section will discuss several financing alternatives the Kalispell City Council may consider and employ to implement the recommendations contained in this document. Financing alternatives include: local government, state, regional, federal, and private. It is possible, and more than likely, it will prove necessary to employ several of the alternatives discussed here by encouraging the formation of a public/private partnership of federal, state, and local public and private interests --- all working together to accomplish the goals of the PLAN. The old notion that the federal or state government is going to bail the older cities, and their airports, out of all of their difficulties is a delusion. This is not to say that the federal government should be eliminated as a possible source for financing the solutions to Kalispell's revitalization problems but the advice offered in this section is that self-help rather than aid from the outside should be the emphasis of any redevelopment plan. The premise that local financing tools ought to be considered first is important if this PLAN is to be implemented. Thus, local, state, regional, and federal financing is presented in that order because it is logical and reflects the way things usually happen and the pragmatism of experienced planners. Private financing is discussed last not because it is least important, but because it needs to be emphasized as the final determinant of success. No matter how good a plan appears in print, the true test of its worth will be the level of private financial commitment leveraged. Leverage is a term that will be used throughout this section. Leverage is defined as "the use of supplementary non -equity capital" (as senior securities or borrowed money to increase the returns on equity; also, the resultant economic advantage). The objective of this section is in part to suggest ways in which limited public monies may be leveraged into substantial private investment... private investment DATE: January 23, 1996 22 which will result in jobs, an improved and expanded tax base, a safe airport, improved recreation opportunities and a more livable city. As ecologist -philosopher Garret Hardin's quotable phrase states, "You can never do just one thing." So it is in developing the full range and use of financing tools available to the City of Kalispell as it considers implementing this Plan. Don't be content to do just one thing, learn to use financing tools in combination to accomplish goals. There are examples in Montana where five different sources of financing, involving federal, state, local, regional, and private funds were used to put one project together. Be willing to be daring and innovative, develop the skillful use and understanding of how financing techniques can make things happen. Just as there is no one best plan, there is no "one best" financing tool. Use this section as you would a cookbook where ingredients are listed which will satisfy certain needs, but there are no recipes. That part is left to the discretion and individual needs and appetites of the Kalispell City Airport public/private partnership. Bon appetite! LOCAL GOVERNMENT FINANCING OPTIONS Before the details of local government financing tools can be discussed, it must be determined who will administer and implement the PLAN. On the fifth day of June 1995, the City of Kalispell approved RESOLUTION NO. 4210, A RESOLUTION OF THE CITY COUNCIL TO EXERCISE ALL POWERS GRANTED UNDER THE "AIRPORT AUTHORITIES ACT" (TITLE 67, CHAPTER 11, MONTANA CODE ANNOTATED) FOR THE PURPOSE OF OPERATING, MAINTAINING AND EXPANDING THE KALISPELL CITY AIRPORT AND TO CREATE AN AIRPORT ADVISORY BOARD. Section V of Resolution 4210 (a copy is attached as Exhibit 2), resolves "that on or before July 1, 1996, the City Council shall create a municipal airport authority with all the authority granted to municipal airport authorities under Title 67, Chapter 11, Parts 1, 2, and 3, Montana Code Annotated." Therefore, it is assumed the KALISPELL CITY AIRPORT NEIGHBORHOOD PLAN will be implemented and administered by the Airport Authority. NOT the Kalispell City Council. What does Chapter 11, AIRPORT AUTHORITIES, Part 1, Organization and General Provisions (cited as the "Airport Authorities Act"), Montana Code Annotated, authorize? (A copy of Chapter 11 is attached as Exhibit 3.) The City of Kalispell may: 1. create a public body, corporate and politic, to be known as a municipal airport authority... which shall be authorized to exercise its functions... DATE: January 23, 1996 23 March 23, 1998 • Budget items: Seal coat runway, advertise for bids Part time on -site airport manager, adopt job description and advertise • Action to develop strategy for revenue enhancement from current and new airport users • Action to determine need for additional land acquisition Wor easements with estimated cost, to accommodate runway extension, RPZ's, and object free areas anticipating ultimate BII dimensions • Prepare to solicit and grant hangar leases, as soon as lateral setback can be determined by Master Plan Engineers Board would appreciate receiving courtesy copies of Authority minutes and actions. o o 00 - - Centerline U. S. Highway No. 93 o 00 1568.07' " o Basis of Bearings per C. of S. iv'o. 12729 00 N33'04'19VY 733.90' 330' 314.17' �. �- 520.00' 703.90' 254.1 T 30' ' 30490.00' =' I 30' I • °� t I I � O \� j �, I j � Z3 G �► N ^3 L \ Z v ,m G s _ O I 30' �30.3V,ye,�� r c` V � I ,.� 60.37' h I Ln 11 v n S33'15'45"E j n o aj z i w. to I amp o �� j 4b, z LO n�i Ln j ^y Q 1 30' `� 703.96' 466.79' 128.29' 94.99' i 30' 30' 733.96' 520.00' -- 'r �"'- 253.28'---�"�---- "� 1507.24' S33'06'10"E PL A T OF DA L E Y FIEL D SUBDI V1,31 L oco ted in the -NW 114 Of Section 20, T28N R21 W P. M. M. CITY OF KA L I SPEL L, FLATHEAD THEA �� D COUNTY, MON TANA /