Exhibit S - Letter from Thelan{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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