12/27/00 Neier to Ramlow/South Field Park (with Exhibits)City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758
December 27, 2000
Jim Ramlow
Kaufman, Vidal & Hileman
22 2nd Ave. West
Kalispell, MT 59901
Re: South Field Park
Dear Jim:
This letter will confirm our telephone conversation of December 20,
2000 wherein your requested that I analyze the City files on the
above referenced matter in response to the Kent Saxby of October
11, 2000. I begin the analysis with the commencement of legal
publications in October of 1996.
The City of Kalispell advertised the South Field Park site (Haven
Field) three times commencing in October of 1996. The first
publication required a response on November 19, 1996. (Exhibit
"A"). Clerk notes from the work session of November 25 indicate
the only bid received was non -responsive because the minimum value
required in the advertisement was not met and the bid security
(earnest money) required was not included.
The property was re -advertised for a December 30, 1996 opening.
(Exhibit "B"). Clerk notes from the December 30 work session
indicates no bids were received.
Upon the advice of Dorsey & Whitney, Missoula, the property was re -
advertised for a January 30, 1997 submittal. (Exhibit "C"),I cannot
respond the claim of Dasen that there were irregularities in the
acceptance of the bid. However, the Dasen proposal was accepted at
the February 18, 1997 Council Meeting.
raml ow . wpd -1-
Drafting the Development Agreement took place between February 18,
1997 and May 16, 1997. The City Attorney's office wrote the
Agreement with input from the Community Development Department.
(Exhibit "D"). I don't recall any face to face meetings with Mr.
Dasen or his representatives, or the Crowley Firm. Larry Gallagher
of Community Development negotiated on behalf of the City.
As previously stated, negotiating and drafting the Development with
the Dasen group took place over three months, not six as stated in
Saxby's letter. To my knowledge Dasen was represented during this
period by the Crowley Law Firm and Mary Dyer was handling the
matter. On May 16, 1997, my secretary sent a FAX message to Dyer
enclosing the "final product" of the negotiations. (Exhibit "E").
The message also requested input if any problems were noticed. It
should be noted that as drafted the Agreement listed the parties as
the City of Kalispell and the Outlaw Inn, a Montana Joint Venture,
including Richard A. Dasen and Southgate Mall Associates. The
Council approved the sale of Haven Field on June 16, 1997. (Exhibit
"F"). On July 11, 1997 this office dispatch three executed copies
of the Development Agreement to the Crowley Law Firm. (Exhibit
"G"). Shortly thereafter, although I do not have a phone log of any
conversations, it is my recollection that Dyer stated that the
Development Agreement had been approved by the Dasen group, and in
fact signed by Dasen, and execution by Southgate Mall Associates
was ministerial. The City anticipating execution of the Development
by Dasen and Southgate Mall Associates closed the sale of the
property on or about July 15, 1997. (Exhibit "H") No objections to
any of the provisions of the Development Agreement were received
between May 16, 1997 and July 15, 1997.
A protracted attempt to obtain an executed Agreement followed the
closing. Dyer was absent from the Crowley Firm for a period of
several months after July 15, 1997 for maternity leave. Numerous
phone calls regarding the whereabouts of the Agreement were
evasively returned. Sometime during the late Fall of 1997, Dan
Johns indicated in a telephone conversation indicated that Dasen
had objected to the payment -in -lieu of provision in the Agreement.
I indicated that this was a surprise to the City because throughout
the negotiations, at least, this office had not been appraised of
any objection by the Dasen group to the payment the payment -in -lieu
provision. (Exhibit "I"). During the months December, 1997 and
January, 1998, this office and Crowley entered into discussions
aimed at altering the Agreement eliminating Southgate Mall
Associates as parties and making other changes necessary so that
Richard Dasen would be personally liable for performance. The
ramlow. wpd - 2 -
payment -in -lieu provision however was not eliminated, and to my
recollection elimination of the provision was never considered by
the City. (Exhibit "J").
The more expensive storm drainage system was a necessitated by
site conditions, and not an extraordinary requirement imposed by
the City. Ground water elevations were above the storm water
system resulting in a non-functioning system. Finally after some
discussions with Jackola Engineering, the Public Works Department
essentially washed its hands of the matter by determining the
system to be private and therefore eliminating PWD concerns.
(Exhibits "K" and "L") .
Dasen in the offer to purchase Haven Field on January 30, 1997
indicted that the Dasen group expected assistance from the City
presumably pursuant to the Urban Renewal Law. (Exhibit "M")'
However, in a February 3, 1997 letter Dasen stated that "no
additional costs to the City" would be incurred with regard to
infrastructure items. (Exhibit "N"). To my recollection during the
negotiations this office asked and was informed by Dan Johns that
the Dasen group would not be expecting any tax increment
assistance. Any agreement to provide tax increment assistance
would have be part of the Development Agreement.
This office is suspicious of the claim by Saxby that the
subdivision approval took an inordinately long time. FRDO and
Outlaw Inn representatives met and discussed of the development of
Haven Field in July of 1997. (Exhibit 11011). However, FRDO files
show that an Application for Preliminary Plat Approval was not
made until January 8, 1998. A Pre -Application Meeting took place
on February 17, 1998. (Exhibit "P"). FRDO received a subsequent
Application for Minor Subdivision. Preliminary Plate Approval on May
22, 1998. (Exhibit "Q"). Final Plat Approval was granted by the
City Council on July 20, 1998. Saxby's assertion that plat approval
took 13 months is, demonstrably, incorrect.
Admittedly, Clarence Krepps, City Manager, did authorize the one
year moratorium on the collection of payment -in -lieu under the
Development Agreement. The reasons were obvious. Dasen did not
sign the Development Agreement until February 11, 1998, a month and
eleven days after the payment -in -lieu became effective. Second, the
City did not intend to issue tax increment bonds in 1998, which was
the underlying reason for securing an income stream. In retrospect
the City's interest would have probably best been served by
refusing to sell the property to the Dasen group without an
ramlow.wpd - 3 -
executed Development Agreement or demanding recission of the sale
once Dasen failed to sign the Development Agreement. The City was
not overly sophisticated in dealing with the Dasen group. From my
perspective Dasen's claim of lack of consideration and subsequent
modifications may be made from a legal position. However, the City
did forbear collection of payment -in -lieu from January 1, 1998 to
January 1, 1999 and did not demand recession of the sale. The basis
of the bargain with the Dasen group was the payment of at -least
$124,000 annually. If Dasen did not perform, the consideration for
the City selling the property failed. (Exhibit "R").
The representations made by Saxby that previous City Managers have
indicated the correctness of Dasen's argument is unknown to this
office. Neither Clarence Krepps or Al Thelen to may knowledge ever
demanded any thing but performance from the Dasen group. Mr.
Thelen wanted the payment -in -lieu to be calculated from January 1,
1998. (Exhibit "S"). He certainly did not admit that the City was
dilatory in handing the sale of Haven Field, the Development
Agreement, or in granting approvals necessary for the process.
Finally, I question why Saxby includes Northwest Investment
Partnership, LLP as a real party in interest in the dispute. A
contract exists between Richard A. Dasen and the City of Kalispell.
The City has not consented to a substitution or expansion of the
parties to the Development Agreement and Northwest Investment
Partnership, LLP has no standing in the matter.
I hope that this memo provides you with at least some information
regarding the reason why the City believes Dasen should pay in
accordance with the Development Agreement. Please contact me when
you have had an opportunity to digest the information contained
herein, and we will arrange a meeting with the City to discuss your
review.
Sincerely,
Glen Bier
City Attorney
pc: City Manager
raml ow . wpd - 4 -
NOTICE OF SALE OF
CITY PROPERTY
NOTICE is hereby given that the City of Kalispell will receive
sealed bids for the purchase of certain real property owned by the
City of Kalispell, as more particularly described as follows:
That portion of the Northeast 3f of the Northwest % and
the Northwest % of the Northwest X of Section 20,
Township 28 North, Range 21 West, P.M.M., Flathead
County, Montana, more particularly described as follows:
Commencing at the northeast corner of the Northeast % of
the Northwest % of said Section 20; thence along the
northerly line of said Section 20, North 890 52130" West
1556.90 feet to the northeasterly right-of-way of U.S.
Highway No. 93; thence along said northeasterly right-of-
way line,
South 330 04119" East 71.70 feet to the Point of
Beginning of the parcel being described; thence
continuing along said northeasterly right-of-way line,
South 330 04119" East 650.27 feet to the northwesterly
right-of-way of Lion Park Street; thence along said
northwesterly right-of-way line of said Lion Park Street,
North 630121020 East, 281.20 feet to the southwesterly
right-of-way line of Third Avenue East, said point being
on a 1392.50 foot radius curve concave southwesterly,
having a radial bearing of South 720 27106" West; thence
northwesterly along the curve and along the southwesterly
right-of-way line of Third Avenue East, through a central
angle of 190 24119", on arc distance of 471.62 feet to
the southerly right-of-way line of Eighteenth Street
East; thence along said North 890 52' 30" West 390.92
feet to the Point of Beginning, containing 4.100 Acres of
land, all as shown on Certificate of Survey No. .
Bids shall be received for the purchase of said property by
the City Clerk of Council of the City of Kalispell until 11:00 A.M.
on January 30, 1997. All bids will be opened by the City Manager
at an open administrative session commencing at 11:30 on January
30, 1997, in the Council Chambers, City Hall, Kalispell, Montana.
The terms of the sale shall be cash within ten (10) days after
notice from the City to the prospective purchaser that the bid for
A:\haven.wpd
the sale is acceptable to the City. The prospective purchasers of
said property shall as a condition of bidding said property, submit
to the City Clerk of Council with their proposal, cash, certified
check or bank money order in an amount of not less than five
percent (5%) of the bid amount as earnest money. The earnest money,
herein required, shall assure that the prospective purchaser whose
bid is accepted, shall enter into, execute and perform according to
his proposal. Should the prospective purchaser fail or refuse to
purchase the property and/or perform as set forth in his proposal,
he shall forfeit such earnest money to the City. The earnest money
of unsuccessful prospective purchasers shall be returned.
The City in considering the competing proposals received as a
result of the published notice shall consider the purchase price
offered by the respective respondents. However, the purchase price
shall not be the sole factor in disposing of the property to a
successful purchaser. The City shall consider such other factors
as: proposal's potential to further the goals and objectives of the
urban renewal plan, background of potential developers, financial
ability of potential developers to perform under the proposal,
benefit to the City in general and benefit to the urban renewal
area, in particular. The decision on disposing of the property
will ultimately be based upon a broad evaluation of the proposals.
submitted and how the proposals individually serve the public
interest.
Should the successful prospective purchaser fail to purchase
the property, the City reserves the right to consider and sell
property to another prospective purchaser.
Should the City fail to receive any bids for the property or
should the bids received not be at least the minimum fair market
value established by the City Council, the City reserves the right
to sell the property at private sale at an amount agreeable between
the City and a purchaser which shall be in the best interests of
the City of Kalispell and its inhabitants.
The City Council hereby reserves the right to reject any or
all bids or to waive any technicality or any informality and accept
any bid or proposal which may be deemed best for the interests of
the City of Kalispell.
Any prospective purchaser wishing further information may
obtain same from the Planning, Economic and Community Development
Department, City Hall, P.O. Box 1997, Kalispell, MT 59903
A:\haven.wpd
Al L ad
Clerk of C
Publish: January 9, 1997
January 16, 1997
January 23, 1997
A:\haven.wpd
NOTICE OF SALE OF
CITY PROPERTY
NOTICE is hereby given that the City of Kalispell will receive
sealed bids for the purchase of certain real property owned by the
City of Kalispell, as more particularly described as follows:
That portion of the Northeast } of the Northwest # and
the Northwest } of the Northwest i of Section 20,
Township 28 North, Range 21 West, P.N.M., Flathead
County, Montana, more particularly described as follows:
Commencing at the northeast corner of the Northeast I of
the Northwest } of said Section 20; thence along the
northerly line of said Section 20, North 890 52'30" West
1556.90 feet to the northeasterly right-of-way of U.S.
Highway No. 93; thence along said northeasterly right-of-
way line,
South 33° 04'19" East 71.70 feet to the Point of
Beginning of the parcel being described; thence
continuing along said northeasterly right-of-way line,
South 33° 04'19" East 650.27 feet to the northwesterly
right-of-way of Lion Park Street; thence along said
northwesterly right-of-way line of said Lion Park Street,
North 63°12'02" East, 281.20 feet to the southwesterly
right-of-way line of Third Avenue Eost, said point being
on a 1392.50 foot radius curve concave southwesterly,
having a radial bearing of South 720 27106" West; thence
northwesterly along the curve and along the southwesterly
right-of-way line of Third Avenue East, through a central
angle of 19° 24'19", on arc distance of 471.62 feet to
the southerly right-of-way line of Eighteenth Street
East; thence along said North 89° 52' 30" West 390.92
feet to the Point of Beginning, containing 4.100 Acres of
land, all as shown on Certificate of Survey No.
Bids shall be received for the purchase of said property by
the City Clerk of Council of the City of Kalispell until 11:00 A.M.
on December 30, 1996. All bids will be opened by the City Manager
at an open administrative session commencing at 11:30 on December
30, 1996, in the Council Chambers, City Hail, Kalispell, Montana.
The terms of the sale shall be cash within ten (10) days after
notice from the City to the prospective purchaser that the bid for
the sale is acceptable to the City.• The prospective purchasers of
said property shall as a condition of bidding said property, submit
to the City Clerk of Council with their proposal, cash, certified
check, or bank money order in an amount of not less than five (5)
percent of the bid amount as earnest money. The earnest money,
herein required, shall assure that the prospective purchaser, whose
bid is accepted, shall enter into, execute and perform according to
his bid. Should the prospective purchaser fail or refuse to
purchase the property and/or perform as set forth in his proposal,
A:\haven.wpd
he shall forfeit such earnest money, to the City. The earnest money
of unsuccessful prospective purchasers shall be returned.
The City of Kalispell has established the fair market value
of the property to be in a range of not less than $4.48 per square
foot and not more than $5.00 per square foot. The City shall
require a minimum bid of at least $4.48 per square foot.
The City in considering the competing proposals received as a
result of the published notice shall consider the purchase price
offered by the respective respondents. However, the purchase price
shall not be the sole factor in disposing of the property to a
successful purchaser. The City shall consider such other factors
as: proposal's potential to further the goals and objectives of the
urban renewal plan, background of potential developers, financial
ability of potential developers to perform under the proposal,
benefit to the City in general and benefit to the urban renewal
area, in particular. The decision on disposing of the property
will ultimately be based upon a broad evaluation of the proposals
submitted and how the proposals individually serve the public
interest.
Should the successful prospective purchaser fail to purchase
the property, the City reserves the right to consider and sell
property to another prospective purchaser.
Should the City fail to receive any bids for the property or
should the bids received not be at least the minimum fair market
value established by the City Council, the City reserves the right
to sell the property at private sale at an amount agreeable between
the City and a purchaser which shall be in the best interests of
the City of Kalispell and its inhabitants.
The City Council hereby reserves the right to reject any or
all bids or to waive any technicality or any informality and accept
any bid or proposal which may be deemed best for the interests of
the City of Kalispell.
Any prospective purchaser
obtain same from the Planning,
Department, City Hall, P.O. Box
Publish: December 8, 1996
December 15, 1996
December 22, 1996
wishing further information may
Economic. and Community Development
1997, Kalispell, MT 59903
ajlj�L� ��-)V, d 0
Clerk of COW
A:thaven.wpd
NOTICE OF SALE OF
CITY PROPERTY
NOTICE is herby given that the City of Kalispell will receive
sealed bids for the purchase of certain real property owned by the
City of Kalispell, as more particularly described as follows:
That portion of the Northeast ;i of the Northwest k and
the Northwest 41 of the Northwest 4 of Section 20,
Township 28 North, Range 21 West, P.M.M., Flathead
County, Montana, more particularly described as follows:
Commencing at the northeast corner of the Northeast 14 of
the Northwest k of said Section 20; thence along the
northerly line of said Section 20, North 890 52'30" West
1556.90 feet to the northeasterly right-of-way of U.S.
Highway No. 93; thence along said northeasterly right -of-_
way line,
South 330 04119" East 71.70 feet to the Point of
Beginning of the parcel being described; thence
continuing along said northeasterly right-of-way line,
South 330 04'19" East 650.27 feet to the northwesterly
right-of-way of Lion Park Street; thence along said
northwesterly right-of-way line of said Lion Park Street,
North 63012'02" East, 281.20 feet to the southwesterly
right-of-way line of Third Avenue East, said point being
on a 1392.50 foot radius curve concave southwesterly,
having a radial bearing of South 720 27'06" West; thence
northwesterly along the curve and along the southwesterly
right-of-way line of Third Avenue East, through a central
angle of 19' 24119", on arc distance of 471.62 feet to
the southerly right-of-way line of Eighteenth Street
East; thence along said North 89' 52' 30" West 390.92
feet to Point of Eeg_n__ing, con'�u-ning 4.i00 Acres of
land, all as shown on Certificate of Survey No.
Bids shall be received For the purchase of said property by
the City Clerk of Council of the City of Kalispell until 11:00 A.M.
cr November 19, 1996. All bids will be opened by the City Manager
at an open administrative session commencing at 11:30 on November
19, 1996, in the Council Chambers, City :fall, Kalispell, Montana.
The terms of the sale shall be cash within ten (10) days after
notice from the City to the prospective purchaser that the bid for
the sale is acceptable to the City. The prospective purchasers of
said property shall as a condition of bidding said property, submit
to the City Clerk of Council with their proposal, cash, certified
check, or bank money order in an amount of not less than five (5)
percent of the bid amount as earnest money. The earnest money,
herein required, shall assure that the prospective purchaser, whose
bid is accepted, shall enter into, execute and perform according to
his bid. Should the prospective purchaser fail or refuse to
purchase the property and/or perform as set forth in his proposal,
he shall forfeit such earnest money to the City. The earnest money
of unsuccessful prospective purchasers shall be returned.
The City of Kalispell has established tn,-fair market value
of the property to be in a range of not less than $4.48 per square
foot and not more than $5.00 per square foot. The City shall
require a minimum bid of at least $4.48 per square foot.
The City in considering the competing proposals received as a
result of the published notice shall consider the purchase price
offered by the respective respondents. However, the purchase price
shall not be the sole factor in disposing of the property to a
successful purchaser. The City shall consider such other factors
as: proposal's potential to further the goals and objectives of the
urban renewal plan, background of potential developers, financial
ability of potential developers to perform under the proposal,
benefit to the City in general and benefit to the urban renewal
area, in particular. The decision on disposing of the property
will ultimately be based upon a broad evaluation of the proposals
submitted and how the proposals individually serve the public
interest.
Should the successful prospective purchaser fail to purchase
the property, the City reserves the right to consider and sell
property to another prospective purchaser.
Should the City fail to receive any bids for the property or
should the bids received not be at least the minimum fair market
value established by the City Council, the City reserves the right
to sell the property at private sale at an amount agreeable between
the City and a purchaser which shall be in the best interests of
the City of Kalispell and its inhabitants.
The City Council hereby reserves the right to reject any or
all bids or to waive any technicality or any informality and accept
any bid or proposal which may be deemed best for the interests of
the City of ualiscell.
any prospective purchaser wishinz further information may
obtain same from the Plarning, Economic and Community Development
Department, City Hall, P.C. Box 1997, Kalispell, MT 59903
Clerk of Council
Publish: October 27, 1996
November 3, 1996
November 10, 1996
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DEVELOPMENT AGREEMENT
This Agreement made as of , 1997, by and between the City of
Kalispell, a municipal corporation, hereinafter CITY, and The Outlaw Inn, a Montana joint
venture comprised of Richard A. Dasen; Richard A. Dasen as Trustee for the Dasen
Children's Trust; and Southgate Mall Associates LLP, a Montana limited liability
partnership, with its principal place of business at 1701 Highway 93 South in Kalispell,
Montana, hereinafter DEVELOPER:
WITNESSETH:
Whereas, the CITY is a general powers city, existing and organized under the
constitution of the State of Montana; and
Whereas, the CITY has elected to exercise the powers of an urban renewal agency,
pursuant to Title 7, Chapter 15, Parts 42 and 43, Montana Code Annotated as amended (the
"Act") and Ordinance No. 1242, as amended adopted by the City Council on
, 1997; and
Whereas, Ordinance No. 1242 adopted the Kalispell City Airport/Athletic Complex
Redevelopment Plan Analysis as the urban renewal plan (the Redevelopment Plan) for the
urban renewal area known as the Kalispell City Airport/Athletic Complex Redevelopment
Area (the Redevelopment Area); and
Whereas, Ordinance No. 1242 states that in order to implement and effectuate the
Redevelopment Plan, it will be necessary for the CITY to take certain actions with reference
to minimizing hazards to navigation, developing the airport in accordance with an airport
layout plan, increasing development opportunities on nearby properties, promoting
compatible land use in and around the airport, establishing a funding mechanism for airport
properties, and establishing a priority schedule for plan implementation; and
Whereas, the Redevelopment Plan, as adopted and implemented, contains a tax
increment financing provision coextensive with the Redevelopment Area; and
Whereas, Ordinance No. 1242 approved as an urban renewal project the sale of Haven
Field, to be located within the Redevelopment Area (the Project), and authorized entering
into a development agreement with a developer in order to accomplish the development of
the Project, upon terms and conditions consistent with the Act, the Redevelopment Plan, and
Ordinance No. 1242; and
Whereas, DEVELOPER submitted a proposal to purchase said Haven Field and
develop said property in accordance with the Redevelopment Plan,
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
obligations set forth in this Agreement, the parties hereto agree as follows:
1Awpiout1aw.wpd Page 1 of 15
ARTICLE 1
Definitions
In this Agreement, unless a different meaning clearly appears from the context:
"Act" means Montana Code Annotated Title 7, Chapter 15, Parts 42 and 43, as
amended.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended or supplemented.
"Assessed Valuation" means the value of real property as determined by the
Department of Revenue in accordance with Montana Code Annotated against which real
property tax is imposed.
"City" means the City of Kalispell, Montana.
"Construction Plans" means the plans, specifications, drawings, and related
documents for the construction work to be performed by the developer on the Project
Property, which (a) shall be at least as detailed as the plans, specifications, drawings and
related documents which are submitted to the building official of the CITY and (b) shall
include at least the following: (1) site plans; (2) foundation plans; (3) basement plans;
(4)elevations on all sides; (5) landscaping plan; (6) grading plan; and (7) utility plan.
"Developer" means The Outlaw Inn, a Montana joint venture comprised of Richard
A. Dasen; Richard A. Dasen as Trustee for the Dasen Children's Trust; and Southgate Mall
:associates LLP, a Montana limited liability partnership.
"Project" means the Project described in Article 2.
"Project Area" means that tract of land bounded by 181 Street West on the North, 3'd
Avenue East on the East, Lions Park Street on the South and U.S. Highway 93 on the West.
"Project Property" means the real property in the Project Area on which the Project
will be constructed, the legal description of which is shown on Exhibit
"Redevelopment Area" means those areas of Kalispell which have been designated
by CITY as blighted and therefore desirable for rehabilitation.
"Redevelopment Plan" means the CITY'S overall plan for promoting rehabilitation
of City areas found to be blighted.
I:\wp\outlaw.wpd Page 2 of 15
"Section" means a Section of this Agreement, unless used in reference to Montana
Code Annotated.
"Site Plans" means the plans submitted by the DEVELOPER showing the Project
Area and the Project which will include all on -site improvements, off -site improvements,
and the infrastructure improvements, dated as of
"State" means the State of Montana.
"Tax Increment" means that portion of the real estate taxes paid with respect to the
Redevelopment Property which is remitted to the CITY as tax increment pursuant to the Tax
Increment Financing provisions of the Montana Urban Renewal Law.
"Tax Increment Financing Plan" means the Tax Increment Financing Plan for Tax
Increment Financing by the City Council and dated
"Time Table" means the schedule of performance dates for certain actions by
DEVELOPER under this Agreement, attached hereto as Schedule and made a part
hereof.
"Unavoidable Delay" means a failure or delay in a parry's performance of its
obligations under this Agreement, or during any cure period specified in this Agreement
which does not entail the mere payment of money, not within the parry's reasonable control,
including but not limited to acts of God, governmental agencies, the other party, strikes,
labor disputes (except disputes which could be resolved by using union labor), fire or other
casualty, or lack of materials, provided that within 10 days after a party impaired by the
delay has knowledge of the delay it shall give the other party notice of the delay and the
estimated length of delay, and shall give the other party notice of the actual delay within 10
days after the cause of the delay has ceased to exist. The parties shall pursue with
reasonable diligence the avoidance and removal of any such delay. Unavoidable delay shall
not extend performance of any obligation unless the notices required in this definition are
given as herein required.
ARTICLE 2
Representations and Warranties
Section 2.1. By CITY. CITY makes the following representations to
DEVELOPER:
(a) The CITY, under the Act and Ordinance No. 1242 has the power and
authority to enter into this Agreement and carry out the obligations hereunder.
(b) The Project is an "urban renewal project" within the meaning of the Act
IAwploutlaw.wpd Page 3 of 15
and has been approved by the City Council in accordance with the terms of the
Act and Ordinance No. 1242.
(c) The Urban Renewal Plan, as approved by Ordinance No. 1242, dins
a provision for tax increment financing for the Redevelopment Area and the
incremental increase in taxes based on the value of ad valorem property within
the area after the 1996 base year shall be collected, segregated by the County
Treasurer, and transferred to the City for the benefit of the Redevelopment
Area.
(d) The CITY has determined that sewer and water utilities necessary to
serve the Project are available within the public rights -of -way adjacent to the
Project Area. The Project Area has adequate access from 18' Street West and
3`d Avenue East and, subject to Montana Department of Transportation
approval, from U.S. Highway 93 South.
(e) The CITY advises that the Redevelopment Area is subject to building
and use restrictions imposed pursuant to the Kalispell Zoning Ordinance,
including, but not limited to, prohibitions on the display of billboards and/or
off -premises signs.
Section 2.2. By DEVELOPER. DEVELOPER represents and warrants that:
(a) DEVELOPER, a Montana joint venture comprised of Richard A.
Dasen; Richard A. Dasen as Trustee for the Dasen Children's Trust; and
Southgate Mall Associates LLP, a Montana limited liability partnership duly
organized under the laws of the State of Montana, licensed to conduct business
in the State of Montana, has the po,.ver to enter into this Agreement, and has
duly authorized the execution, delivery and performance of this Agreement.
(b) DEVELOPER is ready, willing and able to acquire the Redevelopment
Property from the CITY.
(c) DEVELOPER will, subject to unavoidable delays, construct, operate
and maintain on the Project Property a retail and commercial development
described in the Site Plans, together with all related on -site improvements,
including, but not limited to, off-street parking, landscaping, on -site utilities
and any off -site infrastructure improvements necessary to properly serve the
Project Area (the Project). The parties agree that notwithstanding the Site
Plans, the Project is in the formative stages and may change in some respects
during the development process; however, any and all changes shall be subject
to approval by the CITY.
(d) DEVELOPER estimates that the cost of constructing the Project as
1Awp\out1aw.v.pd Page 4 of 15
described in (c) is $6,229,700.00 based on the following estimates:
Description of Project Estimated Cost
Land Acquisition $ 738,700.00
Site Improvements $ 560,000.00
Building Construction $4,590,140.00
Cost of Fixtures, Furniture, Equipment
and Inventory $ 340,860.00
TOTAL $6,229,700.00
(e) DEVELOPER estimates, based upon information available to it and the
projected cost of constructing the Project, that the Assessed Valuation of the
improved real property constituting the Project, inclusive of furniture, fixtures,
equipment, and other taxable personal property will be at least $6,229,700.00.
The parties understand that the actual Assessed Valuation of the
DEVELOPER'S portion -of the Project as determined by the Montana
Department of Revenue may be greater or lesser than the estimate.
(f) DEVELOPER has obtained, or has available to it, sufficient funding to
complete the construction of the Project.
ARTICLE 3
Infrastructure Improvements
CITY and DEVELOPER agree that there are no significant modifications or
upgrading of off -site improvements necessary for construction of the Project. However, if
any modifications or upgrade of off -site improvements are required, DEVELOPER agrees
to construct any such improvements as part of the Project.
ARTICLE 4
Lion Park Street
The CITY shall cause to have re -surveyed the Project Property so as to include the
undedicated and undeeded street commonly known as Lion Park Street. DEVELOPER shall
design appropriate access and parking arrangements to complement and encourage the public
I:1wploudaw.wpd Page 5 of 15
use of Lions Park, and shall grant to the CITY an easement of ingress and egress for the
purpose of maintaining a sewer service to the Lion Park Visitor's Center.
ARTICLE 5
Construction of Project
Section 5.1. Site Plans and Construction Plans. DEVELOPER shall submit
Site Plans and Construction Plans to the CITY prior to obtaining any building permits. Site
Plans shall depict the entire Project Area and shall show the location of the Project, the
Infiastructure Improvements and other items required by this Agreement to be shown therein.
The Construction Plans shall provide for the construction of the Project in conformity with
the Redevelopment Plan, the Site Plans, this Agreement, and all applicable federal, state and
local laws and regulations. The CITY shall approve the Construction Plans in writing it in
the reasonable discretion of the CITY, the Construction Plans: (a)substantially conform to
the Plans and subsequent amendments approved by the CITY; (b) conform to the terms and
conditions of this Agreement; (c) conform to the terms and conditions of the Redevelopment
Plan; (d) conform to all applicable federal, state and local laws, ordinances, rules and
regulations; (e) are adequate to provide for construction of the Project; and (f) no Event of
Default has occurred.
No approval by the CITY of the Construction Plans shall relieve the DEVELOPER
of the obligation to comply with the terms of this Agreement, the terms of the
Redevelopment Plan, applicable federal, state and local laws, ordinances, rules and
regulations, or to properly construct the Project. No approval by the CITY shall constitute
a waiver of an Event of Default. Any disapproval of the Site Plans and Construction Plans
shall set forth the reasons therefore, and shall be made within 30 days after the date of their
receipt by the CITY. If CITY rejects the Site Plans or Construction Plans in whole or in part,
DEVELOPER shall submit new or corrected Site Plans and Construction Plans within 30
days after written notification to DEVELOPER of the rejection. The provisions of this
Section relating to approval, rejection, and re -submission of corrected Site Plans and
Construction Plans shall continue to apply until the Site Plans and Construction Plans have
been approved by the CITY. If the CITY rejects the corrected Site Plans or Construction
Plans, then the DEVELOPER shall have the right to withdraw from this contract and to fully
terminate all of its duties and obligations under this Agreement.
Section 5.2. Construction of the Project.
(a) Subject to unavoidable delays, DEVELOPER will construct the Project
without encroachment onto any other property all in accordance with the Site
Plans, the Construction Plans and the Time Table. DEVELOPER will be
responsible for the supervision of and completion of the on -site improvements
listed on Schedule . Neither party shall exercise any control over the other
regarding their respective areas of work and division of responsibilities
IA,Ap\outlaw.wpd Page 6 of 15
although the parties agree to coordinate their activities to assure maximum
efficiency of the construction process.
(b) All work with respect to the Project shall be in substantial conformity
with the Construction Plans approved by the CITY. DEVELOPER shall
promptly begin and diligently complete all on -site improvements listed on
Schedule . DEVELOPER shall make reports, in such detail and at such
times as may reasonably be requested by the CITY, as to the actual progress
of DEVELOPER with respect to construction of the on -site improvements
listed on Schedule
(c) DEVELOPER shall not interfere with, or construct any improvements
over, any public street or utility easement without the prior written consent of
the CITY. All connections to public utility lines and facilities shall be subject
to approval of the CITY and any private utility company involved. All street
and utility installations, relocations, alterations and restorations shall be made
at DEVELOPER'S expense. DEVELOPER, at its own expense, shall replace
any public facilities or utilities damaged during construction of the Project.
Section 5.3. Certificate of Completion.
(a) Promptly after completion of the Project, in accordance with this
Agreement, DEVELOPER should apply for a Certificate of Completion. It
will be incumbent on DEVELOPER to provide the CITY with a certificate of
substantial completion from DEVELOPER'S architect, and the CITY shall
furnish DEVELOPER with an appropriate Certificate of Completion as
conclusive evidence of satisfaction and termination of the agreements and
covenants of this Agreement (excepting those covenants and restrictions which
expressly survive the filing of the Certificate of Completion, and except those
obligations of the DEVELOPER described in Section hereof which
pertain to the obligations of DEVELOPER to construct the Project).
(b) If the CITY shall refuse or fail to provide a Certificate of Completion,
the CITY shall, within 15 days after the DEVELOPER provides the architect's
certificate referenced in Section 5.3.(a), provide the DEVELOPER with a
written statement specifying in what respect DEVELOPER has failed to
complete the Project in accordance with this Agreement, or is otherwise in
default, and shall specify what measures or acts will be necessary, in the
opinion of the CITY, for DEVELOPER to obtain the Certificate of
Completion.
Section 5.4. Phasing of Completion. Notwithstanding any other term of this
I:\wp\outlaw.wpd Page 7 of 15
Agreement, the pasties specifically agree that the Project can be performed in phases. Thus,
upon completion of a discreet portion of the Project, DEVELOPER may proceed to obtain
a Certificate of Completion for that portion of the Project pursuant to Section 5.3.
Thereafter, the provisions and restrictions of Section 8.2 shall no longer apply to the
completed portion.
Section 5.5. CITY'S RemedYfor Failure to Construct. DEVELOPER
recognizes that the CITY intends to utilize ad valorem tax revenue generated by the Project
to finance public improvements to the Kalispell City Airport and other infrastructure
improvements which will be of public benefit. It is contemplated that the Project property
will generate annual tax revenue to the City of Kalispell in the amount of $124,000.00 upon
completion of the Project, exclusive of city or county special assessments. DEVELOPER,
therefore, covenants to pay to the CITY any difference between the amount of tax actually
generated by the Project Property, including any portion of the Project transferred to another
owner, if permitted as hereafter set forth in Section 8, and the amount contemplated by this
Agreement for a period of ten years commencing January 1, 1998. Payment under the
provisions of this paragraph shall be made directly to the CITY, after certifying the tax
generated by The Project through the City Finance Department.
ARTICLE 6
Defense of Claims, Insurance, Developer's Risk
Section 6.1. Defense of Claims. DEVELOPER shall indemnify and hold harmless
the CITY and their respective officers, employees and agents for any loss, damages and
expenses (including attorney's fees) in connection with any claim or proceeding arising from
damages or injuries received or sustained by any person or property by reason of any actions
or omissions of DEVELOPER or its contractors, agents officers or employees under this
Agreement, other than claims or proceedings arising from any negligent or unlawful acts or
omissions of the CITY or their contractors, agents, officers, or employees. Promptly after
receipt by the CITY of notice of the commencement of any action in respect of which
indemnity may be sought against the DEVELOPER under this Section 6.1., such person will
notify the DEVELOPER in writing of the commencement thereof, and, subject to the
provisions hereinafter stated, the DEVELOPER shall assume the defense of such action
(including the employment of counsel, who shall be counsel satisfactory to the CITY, and
the payment of expenses) insofar as such action shall relate to any alleged liability in respect
of which indemnity may be sought against the DEVELOPER The CITY shall have the right
to employ separate counsel in any such action and to participate in the defense thereof, but
the fees and expenses of such counsel shall not be at the expense of the DEVELOPER unless
the employment of such counsel has been specifically authorized by the DEVELOPER The
omission to notify the DEVELOPER as herein provided %-W not relieve it from any liability
which it may have to any indemnified party pursuant hereto, otherwise than under this
section.
1:\wp\out1aw.wpd Page 8 of 15
Section 6.2. Indemnity Agreement. DEVELOPER shall execute the Indemnity
Agreement and shall cause the Indemnity Agreement to be executed by
and shall deliver the unity Agreement to the CITY
simultaneously with the execution and delivery of this Agreement by the DEVELOPER.
Section 6.3. Insurance.
(a) DEVELOPER will provide the following insurance at the time it
applies for the necessary building permits for the project and will maintain
such insurance at all times during the process of constructing the Project, and
at the request of the CITY will furnish the CITY with copies of and proof of
payment of premiums on the following insurance:
(i) Builder's risk insurance, written on the so-called "Builder's
Risk —Completed Value Basis", in an amount equal to 100% of the
replacement cost of the Project at the date of completion, naming the
CITY as an additional insured, with coverage on the so-called "all
risk", non -reporting form of policy;
(ii) Comprehensive general public liability insurance, including
personal injury liability (with employee exclusion deleted) and
automobile insurance, including owned, non -owned and hired
automobiles, against liability for injuries to persons and/or property
with respect to the Redevelopment Property, in the minimum amount
for each person of $750,000 and S 1,500,000 for each occurrence,
endorsed to show the CITY as an additional insured; and
(ill) Worker's Compensation insurance in compliance with all
statutory requirements.
The policies of insurance required under clauses (i), (ii), and (iii) above shall be in form and
content satisfactory to the CITY and shall be placed with financially sound and reputable
insurers licensed to transact business in the State of Montana. The policies shall contain an
agreement of the insurer to give not less than 30 days adN anted written notice to CITY in the
event of cancellation of such policy or change affecting the coverage.
(b) The provisions herein with respect to insurance of the Project shall
terminate at such time as DEVELOPER has received a Certificate of
Completion under Section 5.3.
ARTICLE 7
IAw&utiaw.wpd Page 9 of IS
Payment of Taxes
Section 7.1. Taxes. DEVELOPER shall pay when due all real estate taxes and
installments of special assessments payable on the Project Property and any other property
the DEVELOPER owns within Flathead County. DEVELOPER further agrees not to
contest the assessed valuation of the Project Property, inclusive of furniture, fixtures,
equipment, and other taxable personal property up to $6.M,700.00 and fuuther not to protest
the taxes on such property for the first 5 years after completion.
Section 7.2. In Lieu of Payment. DEVELOPER further agrees to make the payment
in lieu of taxes contemplated in Section 5.5.
ARTICLE 8
Prohibitions Against Assignment and Transfer
Section 8.1. Transfer of Ownership. Subject to Section 5.4 and the leasing of
space to tenants in completed portions of the Project, the DEVELOPER recognizes that a
transfer of a controlling interest in the DEVELOPER or any other act of transaction resulting
in a significant change in the ownership are of particular concern to the CITY. Prior to
completion of the Project as certified by the CITY, except in the case of the death or
incompetency of the shareholders of DEVELOPER, (a) there shall be no transfer of any
interest of a shareholder in DEVELOPER, (b) nor shall any officer or shareholder suffer any
such transfer to be made, (c) nor shall there be or be suffered to be by DEVELOPER, any
other similarly significant change in the ownership of DEVELOPER or in the relative
distribution thereof, or with respect to the identity of the parties in control of DEVELOPER
or the degree thereof, by any other method or means.
Section 8.2. Transfer of Property and Assiwment. DEVELOPER has not made
and will not make, or suffer to be made, any total or partial sale, assignment, conveyance,
lease, or other transfer, with respect to this Agreement or the Project or Property or any part
thereof or any interest therein, or any contract or agreement to do any of the same, without
the prior written approval of the CITY, which approval shall not be unreasonably withheld
if DEVELOPER has completed the Project. The CITY shall be entitled to require as
conditions to any such approval that: (i) the proposed transferee have the qualifications and
financial responsibility, as reasonably determined by the CITY, necessary and adequate to
fulfill the obligations undertaken in this Agreement by DEVELOPER, (ii) the proposed
transferee, by recordable instrument satisfactory to the CITY shall, for itself and its
successors and assigns, assume all of the obligations of DEVELOPER under this Agreement.
No transfer of, or change with respect to, ownership in the Project Property or any part
thereof, or any interest therein, however consummated or occurring and whether voluntary
to involuntary, shall operate legally or practically, to deprive or limit the CITY of or with
1Awp\oudam-.%pd Page 10 of 15
respect to any rights or remedies or controls provided in or resulting from this Agreement
with respect to the Project Property and the construction of the Project that the CITY would
have had, had there been no such transfer or change. There shall be submitted to the CITY
for review of all legal documents relating to the transfer.
In the absence of specific written agreement by the CITY to the contrary, no such
transfer or approval by the CITY thereof shall be deemed to relieve DEVELOPER, or any
other party bound in any way by this Agreement, or otherwise with respect to the
construction of the Project, from any of its obligations with respect thereto.
Section 8.3. Information as to Ownership of Developer. DEVELOPER will
promptly notify the CITY of any changes in the ownership of DEVELOPER, or with respect
to the identity of the parties in control of DEVELOPER or the degree thereof, of which it has
been notified or otherwise had knowledge. DEVELOPER shall, at such time or times as the
CITY may request, furnish the CITY with a complete statement, subscribed and sworn to by
an officer of the DEVELOPER, setting forth all of the owners of DEVELOPER and the
extent of their respective holdings.
Section 8.4. Termination of Limitations on Transfer. All provisions contained in
this Article 8 with respect to limitations on the ability of the DEVELOPER to transfer the
Project Property or the Project, or any portion thereof shall terminate with respect to the
Project at such time as a Certificate of Completion has been issued by the CITY under
Section 5.3 of this Agreement with respect to the Project. All provisions contained in this
Article 8 with respect to limitations on the DEVELOPER making changes in its ownership
structure shall terminate at such time as a Certificate of Completion has been issued pursuant
to Section 5.3 with respect to all the Project.
ARTICLE 9
Events of Default
Section 9.1. Events of Default. The following shall be "Events of Default" under
this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement (unless the context otherwise provides), any one or more of the following events
which occurs prior to the issuance of the Certificate of Completion by the CITY under
Section 5.3 of this Agreement with respect to the Project and continues for more than 30
days after notice by the CITY to DEVELOPER of such default (and the term "default" shall
mean any event which would with the passage of time or giving of notice, or both, be an
"Event of Default" hereunder:
(a) Failure of DEVELOPER to construct or reconstruct the minimum
improvements as required hereunder.
1:1wp\out1aw.,"pd Page i l of 15
(b) Failure of DEVELOPER to furnish the Site Plans or Construction Plans
as required hereunder.
(c) Failure of DEVELOPER to pay real estate taxes or in lieu of as
required hereunder.
(d) Failure of DEVELOPER to observe and perform any other covenant,
condition, obligation or agreement on its part to be observed or performed
hereunder.
(e) If DEVELOPER shall admit in writing its inability to pay its debts
generally as they become due, or shall file a petition in bankruptcy, or shall
make an assignment for the benefit of its creditors, or shall consent to the
appointment of a receiver of itself or of the whole or any substantial part of the
Redevelopment Party.
(f) If DEVELOPER shall file a petition or answer seeking reorganization
or other arrangement under the federal bankruptcy laws.
(g) If DEVELOPER, on a petition in bankruptcy filed against it, be
adjudicated a bankrupt, or a court of competent jurisdiction shall enter an
order or decree appointing, without the consent of the DEVELOPER, a
receiver of all or substantially all of its property, or approve a petition seeking
reorganization or arrangement under the federal bankruptcy laws, and such
adjudication, order or decree shall not be vacated or set aside or stayed within
60 days from the date of entry thereof.
(h) If DEVELOPER is in default under any Mortgage and fails to cure any
such default within the time period prodded for in the Mortgage.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to
in Section 9.1 occurs, the CITY may take any one or more of the following actions:
(a) Suspend its performance under this Agreement until it receives
assurance from DEVELOPER, deemed adequate by the CITY, that
DEVELOPER will cure its default and continue its performance under this
Agreement.
(b) Terminate all rights of DEVELOPER under this Agreement.
(c) Withhold the Certificate of Completion.
(d) Take whatever action at law or in equity may appear necessary or
IAwploutlaw.wpd Page 12 of 15
desirable to the CITY to enforce performance and observance of any
obligation, agreement, or covenant of the DEVELOPER under this Agreement.
Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or
reserved to the CITY is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under the Agreement or now or hereafter existing at law or in equity or by
statute. No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver hereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient.
In order to entitle the CITY or DEVELOPER to exercise any remedy reserved to it, it shall
not be necessary to give notice, other than such notice as may be required under this
Agreement.
Section 9.4. Waivers. All waivers by the CITY, shall be in writing. If any
provision of this Agreement is breached by either party and thereafter waived by the other
party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE 10
Additional Provisions
Section 10.1. Conflict of Interests; the City Representatives Not Individually Liable.
No member, official, employee, or consultant or employees of the consultants of the CITY
shall have any personal interest, direct or indirect, in this Agreement, nor shall any such
member, official, consultant or the consultant's employees or employee participate in any
decision relating to this Agreement which affects his or her personal interests or the interests
of any corporation, partnership, or association in which he or she is directly or indirectly
interested. No member, official, consultant or the consultant's employees, or employee of
the CITY shall be personally liable to DEVELOPER, or any successor in interest, in the
event of any default or breach by the CITY or for any amount which may become due to
DEVELOPER or successor or on any obligations under the terms of this Agreement.
Section 10.2. Equal Employment Opportunity. DEVELOPER, for itself and its
successors and assigns, agrees that during the construction of the minimum improvements
it will comply with any applicable affirmative action and non-discrimination laws or
regulations.
Section 10.3. Restrictions on Use. DEVELOPER agrees for itself, and its successors
and assigns, and every successor in interest to the Project Property, or any part thereof, that
1Awplout1aw.wpd Page 13 of 15
DEVELOPER, and such successors and assigns, shall devote the Project Properly to, and
only to and in accordance with, the uses specified in the Redevelopment Plan and this
Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national
origin in the sale, lease, or rental or in the use of occupancy of the Redevelopment Property
or any improvements erected or to be erected thereon, or any part thereof.
Section 10.4. Titles of Articles and Sections. Any titles of the several parts,
Articles, and Sections of this Agreement are inserted for convenience of reference only and
shall be disregarded in construing or interpreting any of its provisions.
Section 10.5. Notices and Demands. Except as otherwise expressly provided in
this Agreement, a notice, demand, or other communication under this Agreement by either
party to the other shall be sufficiently given or delivered if it is dispatched by registered or
certified mail, postage prepaid, return receipt requested, or delivered personally; and
(a) in the case of the DEVELOPER, addressed to or delivered personally
to DEVELOPER,
(b) in the case of the CITY, addressed or delivered personally to the City
Manager, City of Kalispell, PO Box 1997, Kalispell, Montana 59903-1997, or
at such other address with respect to either such party as that party may, from
time to time, designate in writing and forward to the other as provided in this
Section.
Section 10.6. Counterparts. This Agreement is executed in any number of
counterparts, each of which shall constitute one and the same instrument.
I:\wploutlaw.wpd Page 14 of 15
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as the date first above written.
Approved as to form:
City Attorney
I:\wp\outlaw-.«pd Page 15 of 15
CITY OF KALISPELL
By
City Manager
By
Finance Director
OUTLAW INN, a Montana Joint
Venture, etc.
By
Richard A. Dasen
SOUTHGATE MALL ASSOCIATES
A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 700
P.M. MOMDJIY, JANUARY 6, 1997,IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, XOMTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIlt COLLINS, NORBERT DONAHUE, LAtUREN
GRAM40o DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE RREPPS YERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Haarr moved to approve the agenda. The motion was seconded.
The motion carried upon vote.
CONSENT AGENDA APPROVAL
A. Council Minutes -Regular Meeting -December 15, 1996
H. Approval of Claims per Payables Register-$ 4 13, 022. 80
C. Appointments
Board of Adjustment Appointment November 1996
Conrad Mansion Board Appointment December 1996
City -County Planning Board (2 City) December 1996
Kalispell Parking Commission December 1996
Street Tree Commission (3) December 1996
Collins moved to approve the consent agenda. The motion was
seconded.
Rauthe recommended the following.
Board of Adjustments -Isabelle Mattson
Conrad Mansion Board Re -Appointment -Korb Donahue
City -County Planning Board -Walter Bahr and Jean Johnson
No recommendation for the member -at -large
Kalispell Parking Commission -Margaret Lekander
Street Tree Commission -Steven Perrone
No recommendation for the other 2 Street Tree positions
Upon vote the motion carried.
HARING THE PUBLIC
SCe it ic Byways
Claire Strickler, 192 Larch Lane, Columbia Falls, Scenic
Preservation Commission, offered to answer any questions about the
resolution for Scenic Byways.
Sale of Hayanf f eld
David Thornquist, 132 Troutbeck Rise, Lakeside, Woods and Water
Realty, regarding the Haven Field bid, encouraged the Council to
expedite the process for discussions about the sale of Haven Field
as his client is still very interested and on a strict time line.
72 hour Parking Lieit
Kennedy read a letter from Wanda Poor, regarding the 72-hour
parking limit, and then requested it be addressed at the next work
session.
Resolutlon 4303 Woodland Court Changg order
Mike Fraser, Thomas Dean and Hoskins, explained that Exhibit A, a
change order on behalf of A-1 Paving, was to cover additional
materials, as provided for by the contract, and utility work which
had not been included in the A-1 Paving contract but was included
in the overall budget for the project.
Atkinson moved Resolution 4303, a resolution to alter and amend the
contract with A-1 Paving on the Woodland Court Project, MT Home
M94-SG300117/NT-CDBG-94HR-06. The notion was seconded.
1
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$66
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Grano, Haarr, Kennedy, Larson, Nystul and Rauthe voting
In favor.
City Attorney Neier submitted a memo after receiving his answers
from Mae Ilan Ellingson, Bond Counsel, concerning both the sale of
Haven Field and the Airport Authority. Krepps recommended Council
authorize the third advertising of the offering for Haven Field and
to reconsider the Airport Authority transition. If the City
creates the Authority, the City will not have the capability to
finance the airport improvements by TIP funding.
He felt the City would complete all projects, through TIP, and upon
completion of these improvements, the City would then turn the
airport over to a Commission/Authority at that time.
There was discussion.
Atkinson moved to authorize the re -advertisement of Haven field
without setting minimums, but requiring 53 earnest money from
prospective developers. The notion was seconded.
There was more discussion.
The motion carried unanimously.
Hystul moved the City attorney and manager prepare a draft of a
resolution to create a commission for the next work session as well
as a recommendation on proceeding for a grant from Montana
Aeronautics for fencing or whatever the Advisory Board feels is our
most pressing need. The motion was seconded.
Donahue and Haarr spoke in favor of the motion. I
The notion carried unanimously.
Reggl slon 4309-Intent to. Create West' Side urban Renewal TIF
Dist ict
The City has been working with a developer for the past several
months in determining the potential development and redevelopment
of the Gateway Nall area. The developer is Westfield Properties,
Inc. and the Woodbury Corporation as a joint developer. Both of
these firms are headquartered in Salt Lake City and are very
active, well established, and have a good reputation for their
developments.
A letter was received from Mr. Richard Mendenhall, Manager of
woodmen Properties, that outlines their interest, history, and
proposal. The letter includes the estimated investment could
result in a market value increase to approximately $22,000,000 on
property which is currently assessed at $7,857,378. This
investment should generate a labor force estimated at 900 to 1,000
to support the improvements.
The Council, by a Resolution of Intent, needs to establish an urban
renewal district in the western portion of the City. Staff
submitted a sap that basically follows the Neighborhood Plan as
their recommendation. Timing is very important for the developer.
This developer must enter into irrevocable agreements to complete
purchase of some of the property within this area by January 31,
1997. The developer requests that the Resolution be completed no
later than January 13.
Rrepps expressed it would continue the goal to strengthen the City
tax base, to assist in retainage of existing jobs, to enhance the
potential to increase jobs, and he recommended that Council
expedite the approval for an urban renewal area that will include
the area requested by the developer.
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7100
P.K. MONDAY, FEBRUARY 3, 1997, IN THE COUNCIL CRAMSERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR DOUG RAUrdZ PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN
GRANNO, DALE HAARR, PAN KENNEDY, DUANE LARSON, GARY RSTUL, CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPpB MERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
® Allegiance.
AGENDA APPROVAL
Haarr moved to approve the agenda. The notion was seconded.
Resolution 4307 was tabled to this meeting but will allow it to die
and address at a later time with a new number.
Krspps requested the deletion of Item E.
The motion carried upon vote.
CONSZW AGENDA APPROVAL
A. Council Minutes -Regular Meeting -January 21, 1997
B. Approval of Claims per Payables Register-$217,576.46
C. Authority to Request for Proposals -Hwy 93 South -Water and
Sewer Extensions
D. Authority to Begin the Selling Process for Daley Field
E. Did ftord Generator
F. Authority for Spring Creek/Meridian Road Drainage Study
Contract
0. Greenacres Refund Requests
R. Proclamation -Famine Weekend -February 7-9, 1997
Mayor Rauthe proclaimed February 7-9th as Famine Weekend.
Collins moved to approve the consent agenda. The notion was
seconded.
There was discussion about several claims.
Nystul expressed reservations about Item D.
Upon vote the motion carried with Nystul voting against.
HEARING THE PUBLIC
Sale of Haven Field
Dan Johns, 216 North Riding Road, encouraged Council to pursue one
of the offers for the sale of Haven Field.
Sale2f QaleY Fields
Jim Lynch, 430 Lake Hills Lane, Airport Advisory Board, spoke on
behalf of the board in favor of the sale of the Daley Fields.
Ventral School Museum
Delores Swanberg, 154 Point Caroline Road, Northwest Montana
Historical Society, thanked the Council for their support and gave
an update.
Atkinson moved to approve the final plat for Teton Terrace. The
motion was seconded.
The motion carried with a vote.
977 a2I51�7
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977
4. Eliminated the City responsibility for capital improvement
obligations in the event the lease is terminated.
5. Maintained reporting requirements for improveseats less the
$25,000 and the approach of the Council for iaproveuents
beyond $25,000.
S. Added City's ability to audit the financial records of RGA at
the City's cost.
7. Added City's ability to increase liability insurance
requirements if State raises maxismus liability statutes.
9. Continued current fire insurance as City's responsibility.
9. Deleted five year dispute resolution clauses. Disputes will
be settled through negotiation when/if they arise.
This is not the bottom line that was desired by the City or the
KGA.
Krepps felt this draft lease was equitable for both parties. Upon
review of the KGA income stream, the existing lease proposals, the
revenue trend, and the need for improvements at Buffalo Hill, this
is the type of lease that protects the City, increases the revenue
stream, allows KGA to be profitable, allows us to share in the good
years, protects both parties' long term goals; encourages
improvements to the course to increase playability, increase
clientele for the Golf Course, and expand exposure for the
community.
The RGA lease committee has reviewed the lease and has agreed to
these terms. This will require a vote of the public at the general
election in November, 1997 to formally ratify the lease agreement.
Larson moved the Council ratify the newly negotiated lease between
the City of Kalispell and the KGA. The motion was seconded.
Larson, Rauthe and Kennedy spoke in favor.
The motion carried with a vote with Atkinson voting against.
Two bids were received and opened on January 301" as follows:
Regency Inn $725,000 $37,000
Outlaw Inn $738,700 $37,000
Both developers will be prepared to have answers for any unanswered
questions and specific language what they will do and when they
will do it, agreeing to minimum valuations, and minimum tax
payments or in lieu of payments.
The bids will be evaluated by Council at the next work session to
determine which proposal to accept.
Rrepps encouraged Council to let him know of any questions so they
can be answered at the next work session.
3 on 3 Basketball -close Streets
Parks Director Mike Baker, received a request from Russ Linnell to
close a portion of I" Avenue West, and 1" Street West to stage a
3 on 3 Basketball Tournament sponsored by the Chamber of Commerce
and the Downtown merchants May 30 through June i.
Linnell answered questions.
BSO
She Planning Board recommended denial of the request along with the
FRDO office and the Planning, Economic and Community Development
Director. He asked when this issue comes before the City Council
that he be given the opportunity to have his planners present his
case to the Council.
Scott Hanson, Outlaw Inn employee, 4051 3rd Avenue West, spoke in
support of the Outlaw Inn offer for Haven Field.
PUBLIC HEARING
Abandon 'A' Street Knoll's Addition
Proponents
hone
Qppgnents
None
Rauthe closed the public hearing.
Resolution 4315-Abandon 'A' Street In Knoll's Addition
Kennedy moved Resolution 4315, a resolution to abandon and
discontinue the dedicated public street known as 'A Street' running
along the north side of Lot 9, Block 5, Knoll's Addition,
Kalispell, Montana. The motion was seconded.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Granso, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor.
given Field offer
Two bids were received and opened on January 30, 1997 as followss
Regency Inn $725,000 $37,000
Outlaw Inn $738,700 $37,000
See attached Comparative Analysis of Haven Field Purchase
Proposals.
Haarr moved to direct the city manager and staff to proceed with
compiling a development agreement that will lock down construction
schedules and that agreement be reached in a maximum of 30 days
with the Outlaw Inn. The motion was seconded.
Rystul-The offer submitted by the Outlaw Inn and their time frame
clearly is the better financial revenue stream for the City of
Kalispell. I think that this is a good start of a new addition to
the south entrance to the City and I think that the other proposal
clearly would be nice but in the interest of the economic
conditions we are experiencing that the probabilities are not there
that the second phase of their project would come on line in a
sufficiently current time frame to allow us to maximize the use of
the proceeds from the property so I think the Outlaw is clearly the
overall favorite project.
Donahue -I'm in favor of this sale and to,the Outlaw if we sell it
to anybody, I think we should sell it to them, they have been good
citizens of the community, they have paid their own way, they have
done an outstanding job of being good citizens that draw citizens
to Kalispell, however, having said that I don't think that I can
agree at this point, but it won't affect my vote. I don't think I
can agree at this point with the comments of the city manager
relative to what will be done after this is done and that it will
lock down the revenue streams for bonding purposes for funding
ballfield improvements. I don't think that we have ever discussed
what is going to be the total amount that the City is going to
expend in the ballfields.
1
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I don't think we have ever come to a conclusion on that, but the
estimated cost has been produced and that cost is about 21 times
what the original estimate was upon which we based our original
approval of that project and the sale of this property is not going
to be nearly enough to handle the ballfields. Before we commit
ourselves to a bonding procedure I think that this thing has to go
back to the Council for discussion with that in mind. I as not
prepared to give my imprimatur to the bonding intention of this but
I do vote in favor of the sale to the Outlaw.
Aauthe-I guess I cannot let the record and with that comment
because this Council has discussed the strategy of the sale of
Haven Field going toward the development of the alternate ballfield
sites and the sale of Daley Field going toward the improvements on
the airport. That has been the subject of probably dozens of hours
of discussion and so I would like the record to show that we have
Indeed given direction to staff and this implication was carried
forward by Council not by staff, that Haven Field would be the
source of revenue for moving the fields and developing a new site.
Donahue -I'm referring to this work. that was given to us back in
January of last year entitled the Kalispell City Airport Athletic
Complex Redevelopment Plan and Analysis. In that it does not say
anything at all about bonding to finance the ballfields. It says
In there that the estimated price of the sale of Haven Field will
be roughly $850,000 and then it goes on to say the expense of
Improving Haven Field will be approximately $850,000 but nothing
further was said about financing anything over and above that. We
have not made that decision that I know of in a Council meeting.
Now, it may be that we should go quite a ways further, but we
haven't discussed that the estimates of the costs come in, as I
recall, a million nine hundred some odd thousand. Which is about
21 times what we originally were told we were going to realize for
the sale of Haven Field. I'm in favor of selling Haven Field but
I don't know yet if we have committed to how much money we want to
spend on the ballfields. We may spend a lot and we say spend a
little, but it is going to be a burden on the City if we spend a
lot more than we are going to be getting from Haven Field. And
that is what I would like this Council to make up it's mind as to
what it is going to do. We have probably talked about it from time
to time but we never made an actual decision. So maybe the time
has come to look at Plan B, I don't know. I think we should talk
about that. That is the only thing that would temper my vote on
this measure tonight. I can refer you to this, if you want to pick
it up and read it, it is there, in black and white.
Rauthe-Precluding anything that has been said since then?
Donahue -It hasn't been amended.
Kennedy -I would agree with Councilman Donahue that we probably have
not had an actual motion saying that we will be offering bonds in
order to get the project on line however this Council has in many,
many, many public hearings and at many times in long discussions,
talked about the ballfield, talked about the movement of all of the
ballfields to a new facility, talked about and know full well that
the sale of Haven Field was not going to pay for those
improvements. It has been the underlying intent of this Council
during all of our discussions to the best of sly knowledge that we
would be funding the improvements for the ballfield and have been
shown that it is close to a two million dollar facility.
This bond analysis that we have before us this evening shows that
it can come really close in line with the sale of the Haven Field
to the Outlaw Inn over a period of time by the sale of bonds that
the Tax Increment District that we created there, will be able to
fund this improvement. That tax increment district was included
to, include Haven Field so that we could include the ballfield in
this. It was done intentionally by this Council.
` 982
982
Yea, it Will come back before this Council and costs back before
this Council when we go to bond sale. It always does. All of
these issues will continue to come back before the Council. This
IS the first in the process. Sell Haven, get some money, then
let's go forward from that point. I also, at this point would like
to urge the City of Kalispell, our city staff to go forward with
this as quickly as we can, signing of that lease for the State.
lands property. I would also hope that we would go forward
innediately with preparing our engineer, that has been working on ,
the project, to prepare the construction documents. If we do not
get an engineer working on those construction documents for this
season, we will miss the 1997 season. We are already going to have
one of the fields for ball playing not utilised this season and if
we don't get going with this we will not have it on board for next
year for the ball players either. And what we guaranteed than, we
told them one year without the Haven Field, and I'a afraid if we
don't get going, and take the length of time that this Council has
taken, we will miss this season, so please let's move forward,
let's show good faith we have given to this community and to all
the people who have worked so hard on it and let's get those
construction documents done and the lease signed. At this point
could someone update us from staff where we are with signing that
lease?
Rauthe-We have a motion to enter into negotiations and that is
really what we should be continuing our discussion on, we can
revisit that after the vote.
Kennedy -very good, as long as we will hit it.
Collins -I have a little question with regard to the clarification
of the wording of the motion. Your wording might of stopped short.
On the other hand maybe it will work. I can understand if it
stopped short because you become faced with the possibility of
having so many things in a notion. Most of our notions are usually
not that long. But your motion as I understood it was to direct
the city manager and staff to proceed with compiling a development
agreement and then you specified with the Outlaw Inn and then you
mentioned the 30 day maximum time frame. we all have in front of
us wording here, notes from the city manager, and we have an
understanding of what else is involved in that motion but after
Donahue mentioned what he did, your motion does not indeed and
infers in my mind, if I understand it alright, but it indeed does
not spell out construction schedules, legal minimum tax payment
etc. with regard to bond payment wording. Can we just infer that
is in there?
Rauthe-fide need to move to amend unless you want to insert it and
have the second agree with that?
Haarr-That is fine to insert the terminology.
Mystul (the second) agreed.
Rauthe-So basically quoting the recommended motion -to direct the
city manager and staff to proceed with compiling a development
agreement that will lock down construction schedules and a legal
minimum tax payment that will insure a revenue stream that can '
support bond payments based upon the projection submitted in their
offering documents suggested requiring a 30 day maximum time frame
for reaching such an agreement and to accept the offer with the
Outlaw Inn.
Collins spoke in favor of the motion and thanked the individuals
who submitted offers.
The motion carried unanimously with a vote.
1
1023
1033
Since the last conversations and actions pertaining to the Gateway
Kest urban Renewal Area, we have a change in ownership of National
Flood Services and a change in direction of the ownership. The new
President and CEO, Curtis Lund submitted a letter explaining their
goals, time frame, options, and their desire to sell the building
Immediately. Several meetings have been held with Mr. Lund. He is
willing to commit to a relocation within the Kalispell City Limits
If the City purchases his building as originally planned.
The original goal was to retain National Flood Services within the
City. That goal can still be achieved at the same price as agreed
upon before. The down side to moving ahead with this purchase is
It has no positive impact on the Mendenhall project. Staff still
and will continue to work with Mr. Mendenhall.
To enable the City to retain the current 70 jobs plus gain
approximately 150-180, Krepps recommended to purchase the National
Flood Services building.
Kennedy proved to direct staff to complete the purchase transaction
for National Flood Services, $330,000 purchase price plus verified
moving costs not to exceed $30,000. The motion was seconded.
There was discussion.
Kennedy, Larson and Granmo spoke in favor of the motion and Donahue
spoke against.
The motion carried with a vote and Donahue voted against.
maven Field agreement T
Krepps reported there would be no formal action as the discussion
remains in the hands of the attorneys.
TIMM eck acguisition
The funding for this acquisition will come from the airport TIP
funds. The purchase of the property will allow the City to further
control the airport area property. Krepps recommended the City
complete this purchase:
A. if the City is proceeding with the airport improvements;
and
B. if the City believes that Daley Fields will be sold.
If Council is not certain to proceed with these issues, the
purchase should be delayed.
Kennedy moved to direct city staff to enter into a purchase
agreement with Lois Timmreck in the amount of $100,000 with $25,000
being the down payment and $75,000 being financed at 6.5% over 5
years with annual payments to begin on January 1, 1998. The motion
was seconded.
Kennedy spoke in favor of the motion.
There was discussion.
Donahue moved to amend to include in the contract a clause that
does not require any pre -payment penalty should we desire to sell
this property. The motion was seconded.
Nystul suggested a no prohibition of assignment on the contract.
There was more discussion.
Donahue withdrew the amendment with approval of the second.
The motion carried unanimously with a vote.
1040
This agreement guarantees the City a maximum payment of $124,000
per year for the next 10 years. This payment is in lieu of the
taxes that would be generated by the originally proposed
Improvements for this site. When the bids were evaluated, the site
improvements were a major factor in the staff recommendation for
consideration of the outlaw's proposal. This agreement, in Krepps
opinion, does not meet the spirit or intent of the RFP that was
compiled by the staff and approved by the Council. It does give
the "tax/revenue" anticipated but does not "guarantee" the
Improvements and/or potential new jobs that were presented.
The agreement does, by requiring the payment of $124,000 annually
(Section 5.5) for 10 years, will give Mr. Dasen incentive to
perform by constructing improvements that will reduce this out-of-
pocket expense.
Krepps expressed he reluctantly recommended the approval of this
agreement and sale. The contract is not what was desired or
Intended, but dependent upon this item as a key step in the
development and financing of the ballfield complex and more
indirectly the potential airport improvements. Without the sale of
the field, the City cannot proceed to the sale of Daley Field. The
City is currently on hold with the Engineers for the ballfield
complex until this item is approved. After approval the City will
begin review of the proposed engineering contract for the complex,
complete the lease agreement, and begin the Daley Field offering.
Larson moved Resolution 4339, a resolution authorizing the sale of
portion of the NE 1/4 of the NW 1/4 and the NW 1/4, Section 20,
T26N, R21W, Flathead County, Montana (more particularly described
in Exhibit 'A') to the Outlaw Inn, a Montana joint venture and
authorizing the city manager to enter into a development agreement
with the Outlaw Inn, a Montana joint venture. The motion was
seconded.
There was discussion with Donahue speaking against.
With a roll call vote the motion carried with Haarr, Kennedy,
Larson, Nystul, Atkinson, Collins, Granmo and Rauthe voting in
favor and Donahue voting against.
Resolution 4335-Buffalo Commons Phase I -Preliminary Plat
The report from FRDO was submitted for the approval of the
Preliminary Plat of the Buffalo Commons Phase I Subdivision. This
request was recommended for approval, subject to ten conditions, by
an unanimous vote of the City/County Planning Board.
Krepps recommended approval of the Preliminary Plat with the ten
conditions set in the planning documents.
Kennedy moved Resolution 4335, a resolution approving the
preliminary plat of Buffalo Commons Phase I, Flathead County,
Montana. The motion was seconded.
There was discussion.
With a roll call vote the motion carried with .Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor.
Resolution 4336-Lantis Subdivis 'on-Prel imi nary Plat
Since the Lantis Subdivision Preliminary Plat is fewer than a six
lot subdivision, the Planning Board does not act upon this request.
The Council is the only agency of approval for this process.
Larson moved Resolution 4336, a resolution approving the
preliminary plat of the Lantis Subdivision, Flathead County,
Montana. The motion was seconded.
July 11, 1997
Mary Dyer
Crowley Law Firm
431 18t Avenue West
Kalispell, MT 59901
Re: Outlaw Inn/Daley Field
Dear Ms. Dyer:
Please find enclosed three execution copies of the Development
Agreement between the City and Outlaw Inn. I have also enclosed
a copy of the corrected deed and the preliminary title report.
Please the documents and get back to me if you have any
questions.
I will deliver an executed Deed to Citizen's Title on Monday or
Tuesday, prior to closing.
Thank you for your assistance.
Sincerely,
Glen Neier
City Attorney
A. Settlement Statement U.S.DUrban epar>rrgilofHousi
Citizen's Title & Escrow Co. and ir
0W W. 2502-0265
S. Type of Loan
1. ❑ FHA 2. ❑ FmHA 3. [ " •xtv. Units.
4. ❑ vA 5. ❑ Conv. Its.
0. Fie Number
CT - 5 0 0 9 0
7. Loan Nwnber
I. Mort w Murano Cam Nund w
JF
C. We: This form is finished to give you a statement of actual settlement costs. Amounts paid to and by the ssloment agam we
shown. items marked '(p.o.c.)' were paid outside the dosirtg; they are shown here for infonnattoonal purposes wW we riot
Included in the totals.
D. Nwrr and Addn m d Somvvw
Richard A. Dasen, Sr.
E. Nsmf and Address of War
The City of Kalispell
F. Nwn and Addrms of Lwdw
a-Pwp'"yLOcamn
Kalispell, Montana 59901
Flathead County, Montana
20-28-21 NW NE 8A
Rsetsam"'Aqwd Citizen's Title & Escrow Co, Inc
TIN-81-0380003
plow ofsawwwo
Box 1310 704 South Main
Kalispell, Montana 59901
LsemwnwdDo*
7/15/97
J. Summary of Borrower's Transaction
K. Summary of Seller's Transaction
100. Gross Amount Due From Borrower
400. Gross Amount Due To Seller
101. Contract sales Erice
7 3 8, 7 0 0. 0 0
401. Contract sales price
7 3 8, 7 0 0. 0 0
102- Personal properly
402. Personal properly
103. Settlement charges to borrower (line 1400) '
12.0 0
403.
104.
404.
105.
405.
Adjustments for Items paid by seller in advance
Adjustments for Items paid by seller In advance
106_City/town taxes to
406. City/town taxes to
107. County taxes to
407. County taxes to
108_ Assessments to
408. Assessments to
109.
409.
110.
410.
11i.
411.
112.
412.
120. Gross Amount Due From Borrower
7 3 8 , 712 . 0 0
420. Gross Amount Due To Seller
738,700.00
200. Amounts Paid By Or In Behalf Of Borrower
500. Reductions In Amount Due To Seller
201. Deposit or earnest money
37,000.00
501. Excess deposit (see instructions)
37, 000.00
202. Principal amount of new ban(s)
502. Settlement charges to seller (line 1400)
1,971.00
203. Existing loan(s) taken subject to
503. EAstin loan(s) taken subject to
204_
504. Payoff of first mortgage loan
205.
505. Payoff of second mortgage loan
206.
506.
207.
507.
208.
508.
209.
509.
Adjustments for items un aid by seller
Adjustments for Items unpaid by seller
210. Cat/town taxes to
510. Cat/town taxes to
211. County taxes to
511. County taxes to
212. Assessments to
512. Assessments to
213.
513.
214.
514.
215.
515.
216.
516.
217.
517.
218.
518.
219.
519.
220. Total Paid By/For Borrower
37,000.00
520. Total Reduction Amount Due Seller
38,971.00
300. Cash At Settlement From/To Borrower
600. Cash At Settlement To/From Seiler
301. Gross amount due from borrower (line 120)
738,712.00
601. Gross amount due to seller (line 420)
738,700.00
302. Less amounts paid by/for borrower (line 220)
( 37,000.00
602. Less reductions in amt. due seller (line 520)
3 8 , 9 71.0 0
303. Cash El From ❑ To Borrower
7 01, 712 . 0 0
603. Cash EITo ❑From Seller
699,729.00
SUBSTIT'JTE FORM 1099 SELLER STATEMENT: The information contained in Blocks E, G, H and I, lines
401 (or, if line 401 is asterisked, lines 403 and 404), 406, 407 and 408-412 (applicable part of
buyer's real estate tax reportable to the IRS) is important tax information and is being
furnished to the Internal Revenue Service. If you are required to file a return, a negligence
penalty or other sanction will be imposed on you if this item is required to be reported
and s t it has not been reported.
The Cit 1
_. c and Dasen, Sr. By•
G IER,ITY ATTORNEY
Prew;,„s E 5 O.,_r'e:F� r.Hb, UA A SYS --VS.'..,. Pc.SPA,H@ 4'1,;5.2 HJCI RE, .
DCMJC�_ ., _ PCS e, 7-S2 :-
L SettiemM Chares
700. Total Sales/Broker's Commission based on price $ @ %=
Paid From
Borrower's
Funds at
Settlement
Paid From
Seller's
Funds at
Settlement
Division of Commission line 700 as follows:
701. $ to
702. $ to
703. Commission paid at Settlement
704.
800. items Payable to Connection With Loan
SDI. Loan Or' "nation Fee %
OO2. Loan Discount %
803. Appraisal Fee to
804. Credit Report to
805. Lender's Inspection Fee to
806. Mortgage Insurance Application Fee to
807. Assumption Fee to
808.
809.
810.
811.
900. Items Required By Lender To Be Paid In Advance
901. Interest from to @ $ /da
902 Mortgage Insurance Premium for months to
903. Hazard Insurance Premium for yearslo
904. Flood Insurance Premium for yearsto
905.
1000. Reserves Deposited With Lender
1001. Hazard insurance months @ $ per month
1002. Mortgage insurance months @ $ per month
1003. City property taxes months @ $ per month
1004. County property taxes months @ $ per month
1005. Annual Assessments months @ $ per month
1006. Flood Insurance months @ $ per month
1007. months @ $ per month
1008. months @ $ per month
1009. months @ $ per month
1010. months Co-) $ per month
1100. Title Charges
1101. Settlement or closing fee to Citizen's Title & Escrow Co, Inc 100.00P.C.C. (b)
100.00
1102. Abstract or title search to
1103. Title examination to
1104_ Title insurance binder to
11055. Document preparation to
1106. Notary fees to
1107. Attorne 's fees to
(includes above item numbers: j
1108. Title insurance to Citizen's Title & Escrow Co, Inc
1,871.00
(includes above item numbers:
1109. Lender's coverage $
1110.Owner's coverage $ 1,871.00 for $738, 700.00
t11t_ '
1112
1113.
1200. Government Recording and Transfer Charges
1201 _ Recording fees: Deed $ 12.00 ; Mortgage $ ; Releases $
12.00
1202. City/county tax/stamps: Deed $ ; Mortgage $
1203. State taxist : Deed $ ; Mortgage $
1204. Miscellaneous Recording Fees
1205. Miscellaneous Recording Fees
1300. Additional Settlement Charges
1301. Survey to
1302. Pest Inspection to
1303.
1304.
1305.
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K)
12.00
1,971.00
I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and
belief, it is a true and accurate statement of all receipts and disbursements made on my account
or by the in this t etion I further certify that I have received a copy of HUD-1 Settlement
��asen, r. The Cit a s ell
By:
GL ,
To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is a true and
accurate account of the funds which were received and have been or will be disbursed by the
undersigned as part of the settlement of this transaction.
Settlement Agent Date July 15, 1997
WARNING: it is a crime to knowingly make false statements to the United States on this or any
other similar form. Penalties upon conviction can include a fine or imprisonment. For details
see: Title 18 U.S. Code Section 1001 and Section 1010.
Inha!(s) _ CT 50090 FIRST DATA SYSTEMS, INC. _=n.�, REV. ;3 86,
,v., 1,nn.; , ..,.
The City of '
Incorporated 1892
Office of the City Attorney
Telephone (406)758-7708
Glen Neier, City Attorney P.O. Box 1997
Richard Hickel, Asst. City Attorney Kalispell MT 59903-1997
Theresa White, Legal Secretary Fax (406)758-7758
December 9, 1997
Dan Johns
Crowley, Haughey, Hanson, Toole & Dietrich
431 First Avenue West
P.O. Box 759
Kalispell, MT 59903=0759
Re: Outlaw Inn Development Agreement
Dear Dan:
A few weeks ago I called to inquire into the status of the City's
Development Agreement with Dick Dasen et al. on the Haven Field
development. In our conversation, you indicated at least some of
the principals had objections to § 5.5, wherein the Developer
agreed to pay a payment in lieu of taxes if the Developer failed to
construct the anticipated improvements. The fact that the
Developer was objecting to the "PILT" came as a surprise because
throughout discussions on the Development Agreement, no one raised
any concern regarding this paragraph.
It has been nearly six (6) months since the City and Dasen closed
on the property. I believe it was at the time of closing that Mary
Dyer indicated to me that all parties had accepted the Agreement
and that Dick Dasen had signed. She further indicated that
Southgate Mall's signature on the Agreement was ministerial and the
City could expect an executed agreement within a few days of
closing on or about July 15, 1996.
The fact that we have not received an executed copy of the
Development Agreement is cause for some concern at the City. As
you are aware the City has plans for the funds generated by the
sale of Haven Field. If the Developer does not intend to perform
under the Agreement, and only purchase the property for speculative
purposes, the City may be forced to bring a legal action to
rescind the Agreement and seek return of the property to the City.
The City in entering into the Development Agreement did so in good
faith, without any knowledge of problems. We have been more than
a little patient anticipating a return of the Agreement. Please
respond with a reason for the non-performance.
Since e ,
Glen eier
City Attorney
pc: City Manager
may,
-vtA
July 7,1998
Mr. Thor Jackola
Jackola. Engineering
317 First Avenue East
Kalispell, MT
59903
Reference: Southfield Park subdivision
Dear Mr. Jackola:
I want to follow up on our discussions of June 20h regarding the storm drainage design you have
proposed for Southfield Park. As Dick Amerman and I mentioned, we are very concerned that
the design as submitted will not function as intended because of the very high ground water
conditions of the area In general, drain trenches are a frequent source of disappointment because
their proper operation depends on so many variables; soil percolation rates, ambient ground
water changes, overall size, rainfall intensities and changes in the originally assumed
development plan must all be carefully managed to ensure functionality of the system. To date
we have not received any further information from you regarding the items we discussed. So
there is no misunderstanding let me review our concerns one more time.
With respect to Southfield Park, the information you have provided clearly indicates that the
present ground water elevation is well above the pipe and as a result the pipe will act as a
collector of ground water rather than as a conduit for water to drain away. The system as
designed will, in the opinion of this Department, be immediately non-functional. In order to
work, a drain trench needs to have the drain pipe above the water table most of the time in order
to provide the hydraulic gradient necessary to permit water flow into the surrounding permeable
soil strata. As presently designed, we believe the system will flood above the surface throughout
the developed portions of the project until sufficient head is achieved to permit proper flow into
the water table. This assumes the capacity of the trench and pipe work are correctly sized for the
anticipated storm intensity, which we are unable to determine from the data you have submitted.
In addition, the submitted plan does not provide any elevation data to show the relationships of
surrounding features to the proposed improvements. The relief pipe connecting to the City
system is assumed to be properly located and sized but this is not verifiable. Further, the City's
Extension of Services Plan stipulates that storm discharge from a development is limited in rate
and quantity to the amount resulting from pre -development conditions. Excess amounts are to be
dealt with onsite by the developer. I have enclosed a copy of this requirement for your
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7700 - FAX (406) 758-7758
information. This design requirement is frequently difficult to accommodate hence our concern
that the proposed solution for Southfield Park be carefully designed and constructed so as to
ensure proper operation for the owners, and to avoid situations where the City may be called
upon in the future to assist in correcting a problem. The intense thunderstorm of this past
weekend and the many local flooding problems it generated should caution all of us to be
extremely prudent in each aspect of storm drainage design.
Your reference to the possibility of a future connection to a new storm drain, part of the US 93
improvements, may be feasible provided the improvements are installed as anticipated. But, you
should be aware that the design of these facilities is based on the existing runoff conditions. The
requirement for onsite retention of flows in excess of predevelopment quantities will remain. In
any event, these improvements would not be available for use for at least two years or more.
Other items of this development, the access points, roadway improvements, water and sewer
extensions appear to be satisfactory and are as we previously discussed.
From our discussions we understood that you would revise the storm drainage design for
Southfield Park to provide a higher margin of operating safety, and to relocate the drain pipe
above the water table to give it the best chance of working without problems. To date we have
received no new information that reflects the changes we discussed. We are ready to work with
you to resolve these concerns and look forward to receiving your latest plans.
James C. Hansz, P.E.
Director of Public W rks / C ty Engineer
cc: City Attorney / Interim City Manager,
s
July 16, 1998
Mr. Thor Jackola
Jackola Engineering
317 First Avenue East
Kalispell, MT
59903
Reference: Southfield Park subdivision
Dear W. Jackola:
Plans dated July 7, 1998 for Southfield Park project have been reviewed by this office.
Waters em improvements: The improvements shown on the plans are satisfactory and
approved by this office subject to the review and approval of the Department of Environmental
Quality. They will connect to existing City facilities of adequate capacity.
Sewer system improvements: The improvements shown on the plans are satisfactory and
approved by this office subject to the review and approval of the Department of Environmental
Quality. They will connect to existing City facilities of adequate capacity.
Roadway improvements and approaches to existing streets: The improvements and approaches
as shown on the plans are satisfactory and are as previously discussed and agreed upon.
Storm drainage facilities: Supplemental information you have provided for the storm drainage
system has not fully convinced the City staff that this design will reliably function as intended.
We believe the high ground water in the project area is a serious impediment to the flow of storm
water from this system into the surrounding soil strata. While the submitted calculations suggest
that percolation rates at some points may be adequate under certain conditions, and the redesign
you have made does increase the apparent margin of safety for the system, we are not, at this
point, completely persuaded that the system will function for the owner in a reliable way under
adverse conditions. However, this is essentially a private system. Therefore, this office does not
object to the installation as designed.
We share your desire that these facilities operate as intended and that the owner does not
experience any future problems that cause regret at having installed this system. The City, while
not specifically endorsing this design, will join you in closely monitoring its performance in
Post Office Box 1997 • Kalispell, Montana 59903-1997
Telephone (406) 758-7700 • FAX (406) 758-7758
order to establish a sound basis for considering similar proposals in the future. For the interim,
we recommend you continue to investigate the marketplace for alternatives to this design that
may provide the superior performance needed in difficult design situations such as those
encountered in the project area. We look forward to working with you to identify alternatives
that may offer superior performance and competitive installation costs.
d
ncerely,mes C. Hansz, P.E.
Director of Public Works / City Engineer
cc: City Attorney / Interim City Manager
MASTER PLAN EXEMPTION
CERTIFICATION OF THE AVAILABILITY OF MUNICIPAL SERVICES
In accordance with ARM 16.16.603, the following information is
provided to the Department of Health and Environmental Sciences for
their consideration of the subdivision:
1. Name of Subdivision Southfield Park
r
Location of Subdivision: (See attached location map)
NW,NEI NW } Section 20 Township_ 2SN_ Range 91w
2. Name and Address of Applicant: '
Richard A Dagpn� Sr
400 West Valley Dr.
Kalispell, MT 59901
3... Name _and Addressaof Individuals) or. Firm to .Receive Correspondence: *
yTacrlcol a FnQ� na�ri n� !G Are, 1 1 3A ^aVa 1Sppe1l-, -.M
.59903-1 134
pl ai 11 ar :TT•e1.TLd.t',oJ3SL;? �'= t 'Rnx R77 �' xa1 ; zrs��Mm �,aa03- �
4. A copy of the preliminary plat is attached.
x final plat
5. Number -of parcels in this subdivision: S
6. This property is within a B — 2 zone.
A copy of the zoning ordinance is attached.
7. The City of Kalispell hereby certifies that adequate municipal
facilities are available (or will be within one year) to provide
the following services to the subdivision:
Water Supply Yes x No
Sewage Disposal Yes x No
Solid Waste Disposal Yes x No
TIFICATIO�THE AVAILABILITY 0
0 2
8. Method of financing extension of water and/or sewer mains:
- A water main already exists in the right-of-way adjacent
to this subdivision. No extension of a water main is
required. The property owner will bear the -cost of water
service line installation.
` x A water main extension is required. The cost of the
extension will be financed by . developer
A sewer main already exists in the right-of-way adjacent
to this subdivision. No extension of a sewer main is required.
The property owner will bear the cost of sewer service line
installation.
x A sewer line extension is required. The cost of the extension
will be financed by dnPl on�r
9. Date
10. Car
2e
L trATMENT OF ENVIRONN"�NTAL QUALITY
PERMUTING AND COMPLIANCE DIVISION
M"c RAQCo1; covnNOR
ffilILVA
(400444-3090 May 26, 1998
FAX (406)444-1374
JACKOLA ENGINEERING INC
BOX 1134
KALISPELL MT 59903-1134
RE: Southfield Park
Flathead County
E.Q.#98-2579
Dear Mr. Jackola:
METCALF BUILD
1520 E SIXTH �
po Box 200
HELENA, MONTANA SM"
This is to certify that the infonrnation and fees received by the Department of Environmental Quality relate
to this subdivision are in compliance with the Sanitation in Subdivisions Act, Title 76, Chapter 4, MCA 199
and the administrative rules, ARM Tide 17, Chapter 36, Sub -Chapters 1, 3, & 6. Under 76-4-111 (3), MCj
this subdivision is not subject to The Sanitation in Subdivisions Act, and can be filed with the county clef
and recorder.
Since this subdivision is in a master planned area, and has fulfilled the requirements of the ' master, pla
exclusion, the -plat can be filed. Please note, however, the requirements. of the Public Water Supply Act,Titl
e .
75, Chapter 6, MCA. No construction of water supply or sewage disposal facilities can commence until th
Department has approved plans for those facilities submitted under Title 75, Chapter 6, and ARM Title 1
Chapter 38, Sub -Chapter 4. .
Plans and specifications must be submitted when extensions of any system of water supply, water distributior
sewer, wastewater or sewage treatment or disposal is proposed. Construction prior to approval is prohibitea
and is subject to the penalty prescribed in the Public Water Supply Act, Title 75, Chapter 6, Section 113
MCA.
Where these plans have received approval from DEQ no further review is necessary. Where they have no
received approval it is necessary to obtain approval prior to any construction.
Sincerely,
J/1 4,
Mary P&der
Water Quality Specialist
Subdivision Section
Water Protection Bureau
cc: Engineer, City of Kalispell
file AN EOUAL OPPORTUNITY EMPLOYER'
January 30, 1997
Best Western
Outlaw Inn
1701 KOWM 93 S
Kali$W. Mr SOM
Naa 7a6-000
City Clerk of Council
Fax (4%) 75& N"
For Rom vaaaa cap
City of Kalispell
i-NO-237-7446
Kalispell, Montana 59901
This is to present an offer of $738,700 to the City of Kalispell for the purchase of the Haven
Field property (Parcel 2) and Lion Park Street. A certified check for $37,000 is enclosed as
earnest money to be applied to the purchase.
Enclosed are three preliminary site plan options with a rendering of the office complex and floor
plan. The project will include one or two office buildings on Third Avenue East and
professional/retail facilities on the Hwy 93 frontage.
Third Ave. East Frontage — We have an occupant who is committed to purchasing the
office facilities (either a one or two building complex) fronting on Third Ave. East.
Hwy 93 South Frontage — We've been approached by serious prospective tenants who
wish to occupy Hwy 93 frontage sites as shown on the attached drawings. If our bid is
accepted we will be able to continue negotiating for the occupancy of these facilities.
This bid is submitted and our purpose development of the property is dependent upon the
follo,xine items and matters:
• The City of Kalispell will provide a storm drain hookup.
• The City of Kalispell will install water lines, sewer lines, and other utilities to the Haven
Field property.
• The City of Kalispell will construct off -site improvements such as perimeter sidewalks
and street lights.
• The City of Kalispell will resurface Third Street East frontage.
• The City of Kalispell will proceed with the resurvey of the property to utilize all of the
available space on Lion Park Street.. The purchaser will work with the City to design
appropriate access and parking arrangements to complement and encourage public use of
the park.
• The City of Kalispell will support our efforts to move through the permit process quickly
and assist in obtaining a height variance on the 45-foot clock tower portion of the office
complex.
• Pending submission of renovation and modification design pertaining to neighboring
properties, permitting will be issued to one of the prospective office complex occupants.
Kalispell's Convention Cente
Proposal to Purchase Haven FieldlLion Park Street Property — Page 2
Landscaping and layout of this project will provide a pleasing entrance into Kalispell and
enhance the area with quality office buildings, professional/retail establishments, parking, and
landscaping that complement each other and the adjoining Lion Park.
If this proposal is accepted, our intent is to move forward with construction quickly to meet the
needs of prospective occupants. We are excited about the potential benefits this project will
provide to both of us.
4�-611./- AJ
February 3,1997
Nd wedem
()Ud*W Jim
►roe at
KINPAUT-SM
!br aw
/aoaat-�
Mr. I,awreace GalJagmx, Dir+x�or
Planning, Economiw At CanunutAy Developmatt Department
City of Kslispag
P.O. Box 1997
Kalispell, Montana 59903-1997
We are happy to provide additional information about our bid for the purchase and developmaot of fire
Haven Field/Lion Park Street property as requested by Ross Piambeck of your office.
As you have Mcatcd, the City of Kalispell is interested in the long-term revenue which would be
produced by such a project as much, or more than, the up -front purchase price. However, we would like
to make two points in response to your questions about our bid of $738,700.
1) Our bid price is $13,700 more than the other bid you received.
2) There is no broker fee associated with our bid Assuming a 6'/. fix, this is worth some
$44,322.
Addressing questions about the proposed project itself, we expect the final billed out value of the
development and associated improvements to range from 57.8 to 58.5 million. This includes $1.5 million
in improti ements related to the remodeling of the City Service warehouse property and remodeling their
current office location into a mini "shopping center" complex. We will initiate work to obtain permits as
soon as the bid is accepted. Construction will begin as soon as factors such as weather and
construction/supply contractor schedules allow.
After submitting our bid last week, we asked Jackola Engineering to anal}za and evaluate the potential
cosu associated with the seven items we identified as potential factors in our proposal. After this
evaluation, we are confident that there would be no additional costs to the City of Kalispell relating to
any of these items as identified below:
Storm Drain Hook -Up — Jackola determined that we can construct a sodiment and oil
separator tank with some retention capacity on the property and tie into the existing storm
drain system at the Outlaw Inn. Our request of the City would be to negotiate with the State
of Montana to allow for our storm drain to be hooked into the drainage system associated
with the Hwy 93 construction proioct. This would not involve any construction cost to the
City of Kalispell and we believe the City would be in a better position to negotiate such an
Kalispell's Convent
Hest Western ►lotus re-deoeroer1tH om ef7 and oo-vw
.z.
• Water Lhus, Sewer Lisa, sed Otber Utilities -- We have boa nwed by Iacboia ,
Engineering and tht City dust adequate watrer, suer, and electrical utilities do exbt up to the
property lino. Therefom there would be no cost to the City. We mould, doomm, aonstrud
the mqui W utility meammaum and book -ups (with n ated &s) to service do prgmcL
• Perimeter Sidewalks ad Street Limos — We have drat some street WO
already east on Lion Park and lEth Streets. Those wall ba when
witb liAft wa will awsuttct oa t6t dev*p aeet p mpa y. As for adewaSts, we wit bold
ag site "walks and tie in to any State at City si&valks which might be 000strncW in
aamctistioo with the Hwy"an uctioa project sad airy klum stroll =mMuctica
• Resurface of Third Street East Frontage -- In evahuting the condition of Third Street Fast
along the Haven Field property, we believe that resurficing is not required at this time.
However, should funds become available to the City o the future, we would appreciate your
considering this spw for row to complemart the project.
• Re -survey — The City had advised us as part of the bid submission request process that they
would do the necessary re -survey for any bidder to make the best use of the Lion Paris Street
Spam-
* Clock Tower Height Variance — Our proposal includes an office complex with a clock
tower which exceeds the 254 height limit. We would appreciate the City supporfft this
ram.
• Neighboring Property Permits — As you know, City Service would occupy a major
portion of the office complex we envision for a portion of this project. With the move of their
corporate offices into the new facility, they would remodel their existing warehouse property
across the street from the Haven Field development to complement the project. In preliminary
conversations with the City, they are satisfied that the% can obtain the necessary permits for
the move.
As stated in the bid, we are anxious to begin construction quickh- to meet the needs of prospective tenants.
A large book and video retailer is close to accepting a lease agreement on the 25,000 square -foot retail
space identifiers on Plan A. In addition, we are initiating discussions with a potential bank tenant.
We appreciate your considering our bid and look forward to woriomg with you.
cc: Ross Plambeek
SITE DEVELOPMENT REVIEW COMMITTEE SUMMARY
Thursday, P* 10,1"7
10:00 a.m. - PECDO Conference Room
ATTENDING:
Ad Clark, Police Chief Ross Plambeck, Chairman
Larry Gallagher, PECDD Director Ted Waggener, Hire Chief
Jim Hansz, Public Works Director John Wilson, Assistant City Engineer
Diana Harrison, Zoning Administrator Narda Wilson, FRDO
Craig Kerzman, Building Official Debbie Woodham, PECDD Secretary
The committee reviewed, discussed, and recommended the following:
1. Subdivision of Haven Field. Diana and Narda met with Outlaw Inn representatives
regarding subdivision of Haven Field. Under the Development Agreement, no portion of the
property can be sold until the entire parcel is developed. If subdivision is requested,
conditions and covenants can be required for cross -easements, architectural compatibility, and
common landscape themes to help facilitate the individual development.
2. Glacier Tennis Facility. A meeting with City staff and Glacier Tennis Facility
representatives has been scheduled for Friday, July 11, 1997. The purpose of the meeting is
to discuss the conditions of the CUP and whether the current plans meet the requirements set
forth in the CUP. The SDRC discussed Condition No. 9 which states: "That the building
should be constructed with an exterior finish similar to that of the Summit Complex and there
shall be adequate landscaping along Windward Way and Sunnyview Drive." SDRC members
agreed that the proposed plans do not meet requirements in Condition No. 9 which states that
the exterior finish of the building be similar to that of the Summit. Ross will prepare a Memo
to Clarence with the SDRC's recommendation.
3. Closure of 2"d Ave W.N. from Montana Street to the Railroad Tracks. In the
Development Agreement between the Kalispell Center limited Partnership and Equity Supply,
it calls for the abandonment of 2"d Ave W.N. from Montana Street to the railroad tracks. The
City has received a request to close, abandon and vacate this portion of 2"d Ave W.N. with the
understanding the City will maintain any and all necessary utility easements. Public Works
requires a 20' easement over any existing water, sewer, or storm drain, line. When a street is
abandoned it goes to the owners on both sides of the street. Equity owns all of the property
on both sides of this section of 2"d Ave W.N.
4. Buffalo Stage - Phase Ill. The CUP for Buffalo Stage includes a requirements that Bruyer
Way be relocated when Phase Ill is started so that access to the lots that run along Whitefish
Stage Road will be off of Bruyer Way. Narda has received a request from Tom Sands that the
road plan be left the way it is with access to these lots directly off of Whitefish Stage Road.
Condition #17 of the Preliminary Plat, dated May 13, 1992, states "That Bruyer Way be
extended eastward to follow the easterly lines of lots 78-82 and lots 127-129. This roadway
Site Development Review Committee Summary
July 100, 1997
Page Two
alignment is necessary to.facilitate the efficient platting (in the future) of the narrow strip of
land adjoining Whitefish Stage Road. This requirement is intended to prevent the need for
driveway approaches onto the county road from that narrow piece of property." .This request
will come before the County Commissioners on July 28, 1997. Narda will recommend to the
County Commissioners that they allow for a temporary permit for driveway access onto
Whitefish Stage Road until Buffalo Stage Phase III is developed and Bruyer Way is
constructed. She will also recommend that the developer put in dry sewer and provide 30'
assess easement along the west boundary of the lots along Whitefish Stage Road.
S. Distribution of Signed Documents. Committee members stated that they are still not
receiving signed copies of documents from the City Council. Applicants are also not being
sent copies of approved requests.
SITE DEVELOPMENT REVIEW COMMITTEE SUMMARY
Thursday, Septmitw 1111967
10:00 a.m. - PECDD Conference Room
I1wi1:[1 1ZleT
Larry Gallagher, PECDD Director Ross Plambeck. Chairman
Paul Hahn, Poke Department Ted Waggener, Fire Chief
Jim Hansz, Public Works Director John Wfson, Assistant City Engineer
Diana Harrison, toning Administrator Narda Wilson, FRDO
Craig Kerzman, Building Official Debbie Woodham, PECDD Secretary
The committee reviewed, discussed, and recommended the following:
1. Zone Change - Meridian & 2 Mlle. The property is located on the northwest comer of
Meridian and 2 Mile Drive. The North Meridian Neighborhood Plan designates the east 2/3
of this property as B1 and the western 1/3 as high density residential. The zone change
request is for the eastern 2/3 of the property to change it from B1 to B3. It was suggested
that parking be limited only to the area being rezoned and sidewalks be put in along
Glenwood and 2 Mile. When plans are submitted for development of the property, they must
include engineered drainage plans.
2. Whitefish Stage Professional Park - Phase i Final Plat Final plat cannot be approved
until the following have been -completed: The parking lot and driveway must be up to final
grade ready for paving for emergency access vehicles and the fire hydrants must be installed
as the buildings will not be sprinkled. There must be a 10' reservation of ROW for future
expansion of Whitefish Stage Road.
3. Buffalo Stage Phase I - Preliminary Plat 12 lots originally designated for townhouse
units are being replatted for single family homes. RA1 zoning requires 60' minimum lot
widths. Lots 15, 16, 17 and 18 don't meet this minimum. Developer has submitted a
variance request. Committee members would be supportive of the variance request. In the
final plat, it must affirm that the utility easements are firmly in effect.
4. Tire Rama - i' Ave East & Hwy 93 South. The owner of the Tire Rama property
located at I" Ave East and Hwy 93 South has submitted a preliminary plat for a two lot
subdivision of the property. The property is zoned B2 which requires a 60' minimum lot
width. The subdivision only gives a 20' wide lot on 1" Ave East. The committee reviewed the
request and determined there were no physical constraints and were going to look at a
favorable interpretation of the zoning ordinance to permit the subdivision. Fire access is o.k.
An extension on the utilities may be required. A road and utility easement onto 1st Ave East
will be required.
5. Haven Field Development The developer for Haven Field has brought in new site
plans. It shows a bldg with 28,700 sq ft of retail with an additional potential of 12,000 sq ft of
office space to be located on the second floor. There are two other buildings shown on the
site plans. These plans are completely different from the plans submitted with the offer to
purchase Haven Field by the Outlaw Inn. The plans need to show access points on the east
side of 3rd Ave East and the realignment of 181' Street East. Elevations must be shown. The
plans also need to show the design of the reconstruction of Hwy 93 South. The developer
Site Development Review Committee Summary
September 11, 1997
Page Two
should contact Forsgren & Associates or John Wilson regarding the reconst action plans.
There needs to be more landscaping and berming buffer between the street and the parking
area. ti appears there is adequate parking for the amount of sq footage stated on the plans.
6. Hwy 93 South Reconstruction Update. City staff attended a meeting with MDOT on
Monday, September 8,1997, regarding the Hwy 93 South reconstructions. MDOT told the
City that they would have to pay for the signalized intersection at and Ave East and Hwy 93
South. The cost to the city wail be approximately $80,000. MDOT will provide underground
electrical connections and other infrastructure required for the traffic signal. A discussion
was also held regarding the bike path running along Hwy 93 South. The plans are calling for
a bike path on one side of the road and a sidewalk on the other side down to 4 Comers.
From 4 Comers to Ashley Creek there will be a striped bike path section on the side of the
highway.
7. Daley Field Proposals. The Kalispell Development Corporation and staff are making a
recommendation to the City Council to accept the proposal submitted by Rosauers
Supermarkets Inc. for the Daley Field site. Their offer is for approximately 5-1/2 acres. The
remaining parcels north and south of the Rosauers site will be sold either together or
separately as two individual parcels.
8. City Service Center. The developer has applied for a building permit for Phase ll. The
site plans submitted are not the ones approved with the CUP. The approved plans showed
curbing and driveways along and Ave East as well as a landscaping bled. 15 parking spaces
are required on the CUP. The canopy on the north side must be extended over the sidewalk
to the curb. Parking spaces that conflict with the canopy must be relocated.
9. Northwest Drywall. John Wilson researched USC standards and found that Northwest
Drywall is not required to install a backflow preventer in every dry system. They do need to
repair OS&Y values on the fire system. The fire system must meet standard tests.
SITE DEVELOPMENT REVIEW COMMITTEE SUMMARY
Thursday, February 18, IM
10:00 a.m. - PECDD Conference Room
ATTENDING:
Clarence Krepps, City Manager Ross Plambedc, Chairman
Larry Gallagher, PECDD Director Ted Waggoner, Fire Chief
Jim Hansz, Public Works Director Narda Wilson, FRDO
Diana Harrison, Zoning Administrator Debbie Woodham, PECDD Secretary
Craig Kerzman, Building Official
The committee reviewed, discussed, and recommended the following:
1. Proposed Barber Shop - Td Ave West between Wheaton'9 and the Hearing Aid
Shop. A barber shop has been proposed for the 25' lot between Wheaton's and the Hearing
Aid Shop on 1" Ave West. The property is in a B4 zone which has no setback requirements.
It is located in the Downtown Parking District. Parking requirements are 1 space per 400 sq
ft of gross floor area. The proposed building would be 1560 sq ft with an apartment above.
A total of 6 parking spaces would be required. The 25' lot proposed for the barber shop is
not large enough to meet the parking requirements. The owners of Wheaton's and the
Hearing Aid Shop are willing to grant a cross -easement agreement for parking on their
property to the rear (west) of their businesses. Since Wheaton's and the Hearing Aid Shop
were existing businesses when the Downtown Parking District was established, they are
exempt from parking requirements. However, committee members are not sure whether
businesses in the Downtown Parking District are permitted to give away or allow someone
else to use the parking they do have when they themselves do not meet the parking
requirements. Glen will be asked to give an opinion. Diana will let the proposed owner know
that the committee is waiting for an opinion from Glen. She will also give him information
regarding requesting a variance.
2. Site Review Procedures. A discussion was held regarding Clarence's Memo to the City
Council regarding Site Review Procedures. All complete plans received by the City by
10:00 a.m. on Monday morning will be presented at the Site Review Meeting that week.
There is also an option for developers to schedule a pre -development meeting or attend the
Site Review Meeting when their project is discussed. Committee members agreed that it
would be helpful to have an informational letter prepared to send out and give to developers
and contractors who are submitting plans for review. Diana will prepare a checklist for plans
to be presented to the Site Review Committee.
3. Daley Field Utilities. As a follow up to the discussion at the last Site Review Meeting
regarding the City installing the utilities on Daley Field, Committee members agreed it was
important to have written confirmation of Rosauer's position on the utilities. Larry will speak
with Jerry Hagood. Lary was reminded to tell Mr. Hagood that if Rosauer's decides to install
the utilities, they must pay Davis Bacon wages.
Site Development Review Committee Summary
Two
February 19, 1998
4. Haven Field Subdivision. Narda has had a pre -application meeting with a
representative for Mr. Dasen, the developer of Haven Field, regarding subdividing the Haven
Field property. Issues to be addressed in the subdivision include water and sewer, storm
drainage, approach permit from MDOT, cross easement agreements for ac om for Lot 2
which doesn't have direct access, parking, location of fire hydrants, sidewalks, traffic, etc.
Payment -in -lieu of tax information must be included in deeds resulting from the subdivision.
A discussion was also held regarding the Development Agreement between the City and
Mr. Dasen regarding subdividing and transfer of ownership.
S. Cardinal True Value - W. Center Street As a follow-up to the discussion held last
week regarding Cardinal True Value, committee members felt it was important to let
Mr. Hansen, the owner of Cardinal True Value, know that he has the option of an
administrative appeal on the Building Department's interpretation of the Building Code. Craig
will provide Clarence with a copy of the Board of Appeals procedure. Clarence will include
this information in his response to Mr. Haarr's inquiry on behalf of Mr. Hansen.
January3, IM
Mr. Tom Jentz
FRDO
723 5* Ave. E. Room 414
Kalispell, Mt. 59901
Re: Request for waiver of Preliminary Plat Requirement on Haven Field
Dear Tom.
We respectfully request waiver of the Preliminary Plat Requirement on the Haven Field Subdivision.
We thank you for your consideration.
S ly, "7
or . J�c� JJackola Engineering Co.
Owners Reijatese[tt�tive.
Cc. Outlaw Inn/City Service
Mailing Address: P.O. Box 1134, Kalispell. MT 59903 Location: 317 ist Avenue East phone 1406) 7553208 fax (4061 7553218
RECORD OF PRE -APPLICATION MEETING
I liVzfjhj:it•l[•:21 g$" :VA 4�•
• • • • ! 0 • • • • 0 • 0 • • • 0 • • • • • • a • 0 • • 0 • 0 • • • • 0 0 0 • • • 0 • •
DAY & DATE TIME / -*
SURVEYOR/ENGINEER
SUBDIVIDER/APPLICANT .L'L6L &A&S._
SUBDIVISION NAME,y`_ .
LOCATION
LEGAL DESCRIPTION B/�U B� _ _ ZD • 2
Tfo:i OF DE
OTHER PERSONS PRESENT!, i
i - /
ITEMS FOR DISCUSSION
2.
3.
4.
General Subdivision Process
Proposed Land Use & Zoning
Review of proposed Plat & Site Plan:
a. Number of Lots S
b. Size of Lots
C. Location of Easements
d. water/sewer system
e. Topography & Storm Drainage
f. Tract & Lot Boundaries
g.Ingress & Egress
h. Park & Open Space
I. Existing Structures/Improvements
J. Proposed Structures/improvement5
k. Environmental Assessment Required?
Conformity to Comprehensive Plan
COMMENTS
`I
5. if Master Plan is Required
6. Design & Improvement Standards') 5 • %G
GENERAL COMMENTS �!.!• 9It�1 .1�2 G.ist� �lllwaf
iJ�
H \FRD0IFRDOMF0RM5'PRE-APP.FRM 5120i96
APPLICATION FOR SUBDIVISION PRELIMINARY PLAT APPROVAL -
This application shall be submitted, along with all Information required by the applicable 9ubdivtaioo lteguladona and thei
Montana, Subdividoo end platting Act, and the appropriate fee to: ,
Flathead Regional Development ORb0. 723 PUth Avenue Hut, Room 414
Kallape8, Monte SMI - Telephone (406) 756-3760
'iJHDIVI&LONNAMW Haven Field Subdivision .
outlaw Inn/Dick Dasen
755-6864
Name
Natal
Phone
1701 Highway 93 S., Kalispell, MT
�zi pcoae 5990�1'
'SRSON(1� AUIMOILMED to represent the eubdivislon and to wborn all corseapoodenoo is to be aeon - • .
Jackola Engineering Co.
pb,ne •755-320-8
P.O. ' Box 1 134
state
dGe•lZipt^ode Kalispell., MT rqq
'8Ci3I�TICAIJPAOFE88IONAL PARTICIPANTS (8 urvvyor/Dwignc/Enginoc• ate.);
2qa2w&Addrew Jackola Engineering Co., Box
1134, Kalispell, MT 59903
Namo&.Add. City Service, Inc./Matt Waatti, Box 1, Kalispell, MT 59904
Name & Addr
MOAI.�DESCtIP•ITON OF PROPERTY:
Survey # 1 2
C..ount] Kalispell/Flathead
Tr.A No(.)
8&.. t
Addrera Hi hwa 93 South
-a). Parcel 2
1/4 NE1 4NE1 4 & N
Socdl :2 Q Tovrnab1p i R
Range 21
ENERAL DusCRIPTION of PROPOSED 6UIiDIvISION: The
Old Haven Field
umber of Lots or Rental Spaoes 5 To W Acreage in Subdivision 4 • E -f
OW Aormao in Lou Miniinurn Bins of Lots or Spasm
otal Acreage in StrwU or Ronde Mw d—u rn Slzo of Lots or Bpnoes
Total Aoreycgo in Parke, Open Spaoc and/or Common Area
ROPOSED USES) AND NUMBER OP ASSOCIATED LOTS/SPACUS:
.nale Faaolly Townhouse
'uptex Moblk Homo Park
tultl-Famlly: Rcorewttonal Vchicle Park
partment Commerolwl 5
beruwd Unit Developeneeot Industrial
ondorninlum Ott a
PPLIC.'}.3LEZONINGDESIC3NATION&DLS TUCT B-2 City
STIMATE OF MARKET VALUE BEFORE IMPROVEMENTS
APROVEME rM TO DE PROVIDED:
oadin Qrnvd__paved X Club X Qultar X Sid—,a1ke Alloys Otber
'star System: Individual MuWplo Us Neigbborbood X Pubuo Othcr
=wcr Systmn: Individual MulUpk User Nclghborbood X PubUo Otb w
tharUlMUcs: X Cablow X Telephone X Elodric x Qae x Olber
�lld Waatm Homo PSok-up C,rn lrwi gtongo X Oentrad Hauler Owner Haul
{all Delivery: CentrslX_ Individual SO,O I Dlnriot: 45
ire Protcctlan: Hydrants Tenk.cr Roohwrgo PIrc Dlstriot: Kalispell
Storm drainage connected to City/Highway upgrades
iOPOSEDBROSION/SEDIMENTATIONCONTROL municipal storm drains
i
0
VARLAmse: ARB ANY VARTAmms Rawwrov? u so. Place am plete the wormation below.
(yeahio)
SEPCTiON/RBOUTATION OF REGULATIONS cmeATTNO HARDmim
EMPLAIN THE HARDSHIP THAT WOULD Be CREATED WTTH STRICT COMPLiAIVC33 OF
RZOULATIONB:
PROPOSED ALTMNATrMM TO STRICT COMPLIANCE WITH ABOVE REOULA7IONS3
PLEASE A148"M THE FOLLAWD40 QUBSTIONS IN THE SPACES PROVIDED BELOW:
1. WEl the granting of the v:rlarwe be detrimmW to the pubtle health, salbty or general vrolfve or Injurious to
other a4krining properUosT
2. Will the vardanoe cruse a .ubstwntlal Incense in public eo.t.t
3. Rill the varlanoe affool, in any manner, the p—Won, of any adopted toning rogulatdons or Master Plan?
4. Arc tbero special olmn,n.taa>ooa related to the pby.le.d o1mmotari.tlom of the silo (topograpby, rbapo, *to.) that
creme tin hardshipT
3. FVhwi Kh— oo ndltion. are coigne to W. prepvty that crcaiti the :used for a—Lanool
LIST' OP TSATSRIAI.S SIJDNM- III] WITH 'MIB APPLICATIONt
r4 e.
b, f.
C. B
d, h.
I b r'eby om-tify under penalty or perjury arxi tDe laws of the state of Montana that Lbo lnlorra AUon .uomtticd Demin, on aL
otter submitted forma, do—ruants, plan. or any other information ntbrnitt.ed as part of this appiloadon, to be true, oompiote, !
arsd accurate to tha best of my krsaostodgo. Should any information or mprescntatlon rubmltt.ed in oonrxxtion with this
appUawtlon be untrue, I understand that any approval ba.cd thereon mny be re.oinded, and other appropriate action taken. j
The ■Igninm of thL appUmdon rignffIcs approval for PA-L).O. staff to be pre nt on the property for routine monitoring and
inspection durin the approval and devetopmmt pr000ss.
APPLICATION FOR KINOR SUBDIVINON PRELDIINAR7 PLAT APPROVAL
This application shall be submitted, along with all information required by the applicable
Subdivision Regulations and the Montana Subdivision and Platting Act, and the
appropriate fee to:
Flathead Regional Development Of9ee, 723 Fifth Avenue East, Room 414
Kalispell, Montana 59901 - Phone: (406)758-5980 Fa= (406)758-5781
Minor Subdivision...................................................... $250 +
(5 or fewer lots)
Condominiums.......................................................... $250
(5 or fewer lots - land is not subdivided
Mobile Home Parks & Campgrounds ........................... $250 +
(5 or fewer spaces - land is not subdivided)
Amended Preliminary Plat .......................................... $200
SUBDIVISION NAME:
OWNERS) OF RECORD:
10/lot
10/unit
10/space
Name Richard A_ Dasen., Rr Phone. 752-8490
Mailing City/State &
Address: 400 West Valley Dr. Zip Kalispell
TECffifICAL/PROFESSIONAL PARTICIPANTS (Surveyor/'Designer/Engineer, etc):
APPLICATION MATERIAL
Name &
Name &
Name &
4
LEGAL DICRIPTION OF PROPERTY:
F. R. D. 0.
City/County Kali spPl F Flathead
Street Address Highway 93 South
Assessor's Tract No.(s) Survey 412140 Lot No.(s) Parcel 2
NW 1/ 4 Section 20 Township 2 8 N Range 21 w
GENERAL DESCRIPTION OF SUBDIVISION: old Haven ball f i e ld s
Number of Lots or Rental Spaces 5 Total Acreage in Subdivision 4.41 +/-
Total Acreage in Lots Minimum Size of Lots or Spaces 0.65+/-
Total Acreage in Streets or Roads Maximum Size of Lots or Spaces 1 . 18+/-
Total Acreage in Parks, Open Spaces and/or Common Areas 0
PLEASE ANSWER THE FOLLOWING QUESTIONS IN THE SPACES PROVIDED
BELOW:
1. Will the granting of the variance be detrimental to the public health, safety or
general welfare or injurious to other adjoining properties?
2. Will the variance cause a substantial increase in public costs?
3. Will the variance affect, in any manner, the provisions of any adopted zoning
regulations or Master Plan?
4. Are there special circumstances related to the physical characteristics of the
site (topographv, shape, etc.) that create the hardship?
S. What other conditions are unique to this property that create the need for a
variance?
ki
Agenda -February 18, 1997
AGENDA ITEM 5 - HAVEN FIELD OFFERS (PLEASE NOTE CORRECTED COPY OF
BOND ANALYSIS)
BACKGROUND/CONSIDERATION: Upon review and analysis of the two bids
received frov the Regency Inn and Outlaw Inn, it seems to be clear,
for the City's current goals, the Outlaw Inn has the best offer.
RECOMMENDATION: Based upon our immediate goals to provide funding
for the youth complex, I recommend approval of the Outlaw Inn
proposal. The total proceeds differential ranges from $281,000 to
$390,000 between the two offers (depends upon the length of bond -
10 to 20 years).
ACTION REQUIRED: A MOTION to direct the City Manager/Staff to
proceed with compiling a development agreement that will "lock -
down" construction schedules and a "legal" minimum tax payment that
will insure us of a revenue stream that can support bond payments.
based upon the projections submitted in their offering documents.
I would suggest a 30 day maximum time frame for reaching such an
agreement. This should assist us in getting "serious" discussion
under way. Of course, the final approval will be completed by a
Council resolution.
{A�a t s It
March 10, 1999 -
Matthew J. Naatti
City Service
PO Box 1
Kalispell MT 59903
Dear Mr. Waatti:
Reference is made to your hand -delivered letter of March 8,
1999 regarding a request for TIF funds in the amount of $121,870.67
to be used for right-of-way improvements' and beautification for
your Southfield Park project. These funds would have to come from
the Airport Athletic Complex Urban Renewal Increment Fund.
In reviewing our files, and specifically our Development
Agreement dated February 11, 1998 between the City and Richard
Dasen, I found that Section 5.5 of this agreement states
-Developer... (rest of Section attached.)
The Subdivision Improvement Agreement dated July 7, 1998,
which includes an irrevocable Standby Letter -Of -Credit, guarantees
improvements to Southfield Park totaling $219,000 to be completed
no later than June 15, 1999. It appears to me that some of the
items listed in your March 8th letter might be duplicates of the
items included in the list with the Letter -Of -Credit. Do you have
some plans that reflect the location of each of the improvements
specified in the summary of your March 8th letter?
Post Office Box 1997 • Kalispell, Montana 59903-1997
The Developers Agreement for the purchase of the land for the
Southfield Park project requires an annual payment to the City
beginning on January 11 1999, if the tax payments to the County do
not meet the $124,000 set forth in Section 5.5 of the Developers
Agreement. Can you indicate your plan -to most this obligation?
The City of Kalispell will need the additional information
outlined in this letter before we can respond to your request to
consider TIF funding for beautification, sidewalk and paving
improvements to your South Park project.
Please contact my office if we can assist you with your
request.
Sincerely,
Al Thelen
Interim City Manager
cc: Glen Neier
Jim Hansz
Susan Moyer
Section S.S. C1TY'S Re edv for Failure to Consttt. DEVELOPER
nmpizes that the CITY intends to utilize ad valorem tax revenue generated by the Project
to finance public improvements to the Kalispell City Airport and other infrastructure
improvements which will be of public benefit. It is contemplated that the Project property
will generate annual tax revenue to the City of Kalispell in the amount of $124,000.00 upon
completion of the Project, exclusive of city or county special assessments. DEVELOPER,
therefore, covenants to pay to the CITY any difference between the amount of tax actually
generated by the Project Property, including any potion of the Project transferred to another
owner, if permitted as hereafter set forth in Section 5.4 and Section 8, and the mount
contemplated by this Agreement for a period of ten years commencing January 1, 1999.
Payment under the provisions of this paragraph shall be made directly to the CITY, after
certifying the tax generated by The Project through the City Finance Department.
ARTICLE 6
Defense of Claims: Insurance: Developer's Risk
Section 6.1. Defense of Claims. DEVELOPER shall indemnify and hold harmless
the CITY and their respective officers, employees and agents for any loss, damages and
expenses (including attorney's fees) in connection with any claim or proceeding arising from
damages or injuries received or sustained by any person or property by reason of any actions
or omissions of DEVELOPER or its contractors, agents officers or employees under this
Agreement, other than claims or proceedings arising from any negligent or unlawful acts or
omissions of the CITY or their contractors, agents, officers, or employees. Promptly after
receipt by the CITY of notice of the commencement of any action in respect of which
indemnity may be sought against the DEVELOPER under this Section 6. L, the CITY will
notify the DEVELOPER in writing of the commencement thereof, and, subject to the
provisions hereinafter stated, the DEVELOPER shall assume the defense of such action
(including the employment of counsel, who shall be counsel satisfactory to the CITY, and
the payment of expenses) insofar as such action shall relate to any alleged liability in respect
of which indemnity may be sought against the DEVELOPER_ The CITY shall have the right
to employ separate counsel in any such action and to participate in the defense thereof; but
the fees and expenses of such counsel shall not be at the expense of the DEVELOPER unless
the employment of such counsel has been specifically authorized by the DEVELOPER The
omission to notify the DEVELOPER as herein provided will not relieve it from any liability
which it may have to any indemnified party pursuant hereto, ' otherwise than under this
section.
Section 6.2. Insurance.
(a) DEVELOPER will provide the following insurance at the time it
applies for the necessary building permits for the project and will maintain
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