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3. Council Minutes - Special Meeting #2 - March 27, 2006. SPECIAL MEETING [21 of THE KALISPELL CITY COUNCIL WAS HELD AT 8: 5 ,M", MON AY, MARCH 2 , 200 , IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL,, MONTANA. MAYOR PAMELA B. KENNE Y PRESIDED. COUNCIL MEMBERS JIM ATKINSoN, KARI GA RIE , BOB HAFFERMAN, BOB HERRON, SANDY KENYON, TINT KLUESNE , . U NE LARSON AN SANK OLSON WERE PRESENT, 7 Also present: City Manager James Patrick, City Attorney Charles Har a 1, City Clerk Theresa White, Public Works Director Jim Hansz, Parks and Recreation Director Mike Baker, Senior Planner Sean Conrad, Airport Manager Fred Leistiko, and .recording Secretary Judi Funk. A., AGENDA APPROVAL Larson moved approval of the Agenda. The motion was seconded. `here was no discussioll. The motion carried unanimously upon vote. PUBLIC COMMENT None. C. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION C I. RESOLUTION 5I0I. —AUTHORIZING NEGOTIATIONS FOR THE SALE OF THE ARMORY PROPERTY (Tabled March 20 Resolution 5 101 authorizes the City Manager to negotiate a purchase and sale agreement, and a developer's agreement., with. the Gateway Hospitality Group for the Armo y property. Herron moved to remove Resolution 5101. from the table. The motion was seconded. The motion to remove carried upon vote with Atkinson, Gabriel, Ha erlr an., Herron, Klesner, Larson., Olson, and Mayor Kennedy voting in favor, and Kenyon voting against. Patrick gave a staff report and answered questions. Hafferman said he is in favor of continuing negotiations, but he will not vote for the final sale unless the casino and height issues are resolved without the use of a P, and a decision is made on the dispensation of the money from the sale and from the taxes once developed. Kenyon commented he is not in favor of negotiations at this time because there are still a lot of questions that need to be answered and 1t has been his experience that once things get .rnov n ;, the Council never back tracks. Kl .esner asked if alternatives other than a PUD will be considered, Kalispell City Council Special Mecting Minutes Armof March 27, 2006 Wage I Patrick answered yes, but emphasized a PIT does not circumvent the law. It's a natter of law that Council put in place in the zoning ordinance to allow for variations. He said the project will probably come forward with a PUD, regardless of the casino, because of the height issues. Patrick said a FU is the legal means for resolving the issues. Herron suggested that an amendment to the casino rule and height restrictions he sent to the planning hoard simultaneously ith this project. Mayor Kennedy said she would like to know the date of the appraisal because she has "heartburn over the price", which does not appear to he at a'fair market rate. Patrick stated the price is right in the middle of ghat surrounding properties have been sold for. Herron commented the developer, at his expense, will have to remove the building and clean up the site. Patrick responded he cannot categorically say that is true. He said there may be some tradeoffs depending on the developer's agreement, which the Council will ultimately approve. Herron said he assumed one of the reasons the price is so low is because the expense of removing the building would he borne by the developer. .mayor Kennedy agreed, stating she feels the demolition and any other costs involved with site preparation should he entirely borne by the developer and she hopes that would be part of the negotiation. Larson and Kluesn r agreed that hose costs need to be addressed in the developer"s agreement. The ]motion carried upon roll call vote with Akin on, Gabriel, Hafferman, Herron', Kl e n lr, Olson, and Mayo- Kennedy voting in favor, and Kenyon and Larson voting against. D, ADJOURN The meeting was adjourned at 9:17 p.m. ATTEST: Theresa '"white City Clerk Pamela B. Kennedy .mayor Kalis ell City CounciI Sped al Meeting Minutes (Armory) March 2, 2006 Page 2