12/08/97 Gallagher to Krepps/Purchase & Sale Agreementinteroffice
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To: Clarence Krepps, City Manager
From: Lawrence Gallagher, PECDD Director
Subject: Purchase and Sale Agreement and Development Agreement
Daley Field/Rosauers
Date: December 8,1997
This is a brief summary of the telephone conference call with Jerry Hagood and Kevin
Nichols of Kiemle & Hagood, representing Rosauers, regarding the Purchase and Sale
Agreement and the Development Agreement for the Daley Field property. I will just
itemize comments and suggestions in general so that they may be considered by
Glen Meier as he redrafts the documents.
Development Agreement
1. In the seventh Whereas, the reference to Resolution No. 4366 should include a
description or title of the resolution.
2. The definition of "Redevelopment Area" should include specifically the Kalispell City
Airport/Athletic Complex Redevelopment Plan. There is no need to reference the other
two tax increment/redevelopment districts.
3. The definition of "Tax Increment' should read that tax increment means that portion
of real estate taxes paid with respect to the increased taxable valuation of the
Redevelopment Property ("Redevelopment Property" is not defined).
4. The definition of "Tax Increment Financing Plan" means the Tax Increment
Financing provisions incorporated into the Kalispell City Airport/Athletic Complex
Redevelopment Plan for Tax Increment Financing by the City Council and dated July 1,
1996.
5. Section 3.1 Sequencing of Events, CITY should include that the City will depend on
plans and specifications prepared by MDOT. Construction contracts for said lights shall
be let by MDOT in accordance with Montana law and the State will supervise ...
6. Section 3.2 (a) should include: Subject to the approval of the City and in compliance
with the Kalispell City Airport/Athletic Complex Redevelopment Plan.
Clarence Krepps, City Manager
Page 2
December 8,1997
7. In Section 9.1 (e) it refers to Redevelopment Party. Redevelopment Party is not a
defined term.
I understand that Jim Hansz and/or Glen Neier are working on latecomer fee language
for the Development Agreement.
Jerry Hagood asked that we develop a paragraph to hold the Developer harmless
during any occupancy of the property by Kidsport or other recreation uses after the
conveyance anticipated before the end of this month.
In Section 7(L) there should be language stating that there will be an airport influence
zone.
Jerry Hagood had several issues that he wanted to discuss with his attorney, Kit
Querna, regarding their intention to form an investment group for a salelleaseback of
the property. In other words, he wants to make sure that we are aware and we will n
reasonably withold our authorization for them to convey the Developer's rights, equity,
and responsibility to the investment group (LLP or LLC) that will actually own the
property. Their attorney will be suggesting other changes and will communicate them
Is soon as possible.