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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 { x ............... { 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