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Exhibit F - Council MinutesA 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 f] _. 1/(o / 9 r7 .9h16 't"F%.I $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. 975 � 31g 973 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 fl C 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. 1 981 0 !S1 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.