01/03/97 Neier/Airport AuthoritycllO �jl
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Incorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Douglas Rauthe
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Post Office Box 1997
Mayor
Kalispell, Montana
Zip 59903-1997
Clarence W. Kre pps
City Manager
City Council
Members:
January 3, 1997
Gary W. Nystul
Ward I
TO: Clarence Krepps, City Manager
Cliff Collins
Ward I
FROM: Glen Neier, City Attorne
Norbert F. Donahue
Ward II
RE: Airport Authority--Airport/A tic Complex Redevelopment Plan
pale Haarr
Ward II
At the Council Workshop of December 30, 1996 the Council requested that I make
Jim Atkinson
inquiries with Mae Nan Ellingson of Dorsey and Whitney, regarding the sale of Haven
Ward III
Field through negotiations with a private developer. At approximately 12:30 P.M. on
Lauren Granmo
January 3, I received a call from Mae Nan.
Ward III
I explained to her that the City had advertised the Haven Field for sale on two occasions
Pamela B. Kennedy
Ward IV
and had not received a responsive bid for the property. I indicated the general parameters
M. Duane Larson
of the Advertisement, indicating the City had required earnest money and a minimum
Ward IV
bid of $4.48 per square foot.
In her opinion, the City should again advertise the property for sale, without setting
minimums and without requiring earnest money from prospective developers. She could
not recommend proceeding with private negotiations, when other competing interests
may have had proposals which were not acceptable under the minimums, but might be
viable under a "wide open" offering.
We also discussed a concern that has been expressed as to whether or not the City
could, after creating an Airport Authority, contribute tax increment revenues for
improvements to the airport. In Mae Nan's opinion, once an Authority is created, the
property belongs to the Authority, and that the City could not legally transfer funds to the
Authority for improvements to the Airport.
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