4. Resolution 5101 - Authorizing the Sale of Armory PropertyCity of Kalispell
Charles A. Harball Offlee of City Attorney
City Atto.y 312 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
MEMORANDUM
TO: Mayor Pamela B. Kennedy
and Kalispell City Council
Tel 406.758.7708
Fax 406.758.7771
charball@kalispell.com
FROM: Charles Harball, City Attorney
James H. Patrick, City Manager
SUBJECT: Resolution. No. 510 —Approval of Proposal by Gateway
Hospitality Group and the Sale of the A inory Property
Subject to Conditions
MEETING DATE: Monday, March 20, 2006 — Regular Meeting
BACKGROUND: The City solicited -proposals for the sale of the ,Armory property
and received a proposal from the Gateway Hospitality Group (GHG). At the Council
work session on March 13, 2007 GHG provided a brief summary about its proposal
to purchase the Armory property ty nd construct a hotel and conference center on the
site. GHG is offering the appraisal price for the property and proposes to lease
certain airport property from the City for parking.
RECOMMENDAT ON: If Council agrees with e concept of selling the property
to GHG pursuant o its proposalr it should pass Resolution 5101, app v g the
proposal of GHQ-, and directing City staff to negotiate the details of a developer's
agreement with GHG. The sale would be subject to the due diligence investigation
of GHG and Council approval of the developer's agreement.
FISCAL EFFECTS: Resolution 5101 merely commits the City to go forward and
negotiate in good faithFrith GHQ- for the purchase and use of City property. The
fiscal effects of the sales and developer's agreement i t be discussed when that
matter is brought before the Council,
Respectfully submitted,
Charl6e/Harb.1411, City Attorney
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Jap'�Os H. Patrick, City Meager
RESOLUTION O, 5101
RESOLUTION TO APPROVE THE PROPOSAL OF GATEWAY HOSPITALITY
GROUP [GHGI FOR TAIL PURCHASE AND DEVELOPMENT of THE CITY OWNED
ARMORY SITE AND TO DIRECT THE CITY MANAGER TO NEGOTIATE THE
TERMS of ADEVELOPER'S AGREEMENT ,AND PURCHASE ANDSALES
AGREEMENT WITH G G.
WHEREAS, certain property in the City of Kalispell located at 1840 US Highway 93 South,
commonly known as the .Armory property recently reverted ownership from the
Montana National Guard to the City of Kalispell ; and
WHEREAS, pursuant to MCA 7-8-4201, the City of Kalispell is authorized to dispose of city
owned property; and
WHEREAS, the City of Kalispell so l.eited proposals for the purchase and development of the
city owned Armory property and received a proposal from the Gateway
:hospitality Group GHG] that met the required appraised price and other er'teria
set forth in the request for proposals, and
WHEREAS, the terms of a purchase and sales agreement and a developer's agreement must e
negotiated and agreed upon between the City of Kalispell and G.RG before the
sale may be consummated.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCl:L OF THE CITY OF
KALISP LL AS FOLLOWS:
SECTION I. The City Manager is directed to negotiate a purchase and sales agreement
ent
and a developer's agreement with the Gateway Hospitality Group that is
consistent with the proposal provided and that is in the best interests of the
City of Kalispell and to bring such purchase and sales agreement and
developer's agreement to the City Council for its review and approval
PASSED AND APPROVED Y THE CITY COUNCIL AND SIGNED Y THE MAYOR of
THE CITY OF KALISP LL, THIS 20 DAY OF MARCH 2006.
Pamela B. Kennedy
edy
Mayor
ATTEST:
Theresa White
City Clerk