Various City Council Meeting Minutesr,
900
Proponents
Tom Barbieri, Goodale and Barbieri
Mike Abrams, 15751 Rockfield Boulevard, Irvine, California,
expressed interest in purchasing the old FVCC property to build a
50,000 square foot retail center.
Donna Maddux, 201 Park Avenue, Whitefish
Mike Lund, Herberger's, 910 2nd Street West
Gordon Pirrie, Norm's News, 420 Lake Hills Lane
Bill Goodman, 1275 Lower Valley Road
Chuck Mercord, 42 Hilicrest Drive
Bob Riso, Kalispell Chamber of Commerce
Anna Marie Scarlett, 101 Rhodes Draw
Tom Maier, Cavanaugh's
Letters were received from:
Felecia Speck, 670 3rd Avenue West North
Mark Hogan, 641 2nd Avenue East
Rick Goacher, 46 2nd Avenue East
E.H. Gilliland, 5505 Highway 93 South, Somers
Keith Robinson. 501 West Arizona
Richard Riley, Sunnyside Drive
Bonne Germain,
Dorothy McGlenn,
Howard Jacobson, 900 West Reserve
Lois Himsl, 305 4th Avenue East
Maridona Fisher Norick,
Opponents
Jim Thompson, 160 River View Road
Ken Yachechak, 85 Buffalo Hill Drive
Cliff Bennett, Lakeside
Bill Gould, 154 Sherry Lane
Ken Carey, Gateway West Mall
Greg Ellingson, 133 Cardiff
Dale Williams, Whitefish
Jerry Begg, 220 Woodland
Bill Boharski, 1433 5th Avenue West
Howard Hammer, 717 2nd Avenue West
Con Lundgren, 137 Fairway Boulevard
Fred Hammill, 505 7th Avenue West
Jack Fallon, 629 Shadow Lane
Ron Anderson, JC Penneys, clarified the
R.V. Romain, Gateway West Mall, President
Per Storli, 3420 Airport Road
Roger Somerville, 765 Angel Point Road,
Stan Pine, 28 Lakeshore Drive
Mark Guest, 411 Chestnut
store's position
of Merchants Association
Lakeside
A letter was received from Everit Slater, 604 5th Avenue East and
Calvin Newell,.215 Garland Street.
Rauthe closed the public hearing.
1996-97 Budget
F D29nen
None
�AOn�t3
Jerry Begg, 220 Woodland
Rauthe closed the public hearing..
ORDINANCES
The Airport Advisory Committee has revised their budget which
Council received at the last work session.
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The sale of some of the property at the airport and tax increment
funds on development will provide funds to implement the Airport
Master Plan and relocate the ball field currently on airport
property.
Kennedy moved Ordinance 1242, an ordinance approving the Kalispell
City Airport/Athletic Complex Redevelopment Plan analysis for the
City of Kalispell, Montana as an Urban Renewal Plan; authorizing
the manager to implement the plan with the powers contained in the
urban renewal law, and declaring an effective date. The motion was
seconded.
Nystul moved to amend Exhibit
end, "Haven Field is not to be
obtained for a replacement
seconded.
There was discussion.
A by inserting the following at the
sold until sufficient title has been
ball field site". The motion was
The amendment carried unanimously with a vote.
Nystul moved to amend Exhibit A to Ordinance 1242 by inserting
paragraph 2 as follows: "No funds will be spent for improvements or
construction of "ball field" facilities until an interlocal
agreement has been signed and approved by the appropriate parties
who will be using the facility such as: City of Kalispell, Flathead
County, FVCC, School District No. 5, and the respective sport
organizations". The motion was seconded.
There was lengthy discussion.
The amendment failed with Nystul, Donahue, Granmo and Haarr voting
in favor and Kennedy, Larson, Collins, Atkinson and Rauthe voting
against.
Nystul moved to amend Exhibit A of Ordinance 1242 by inserting the
following: "No land west of Highway 93 is to be sold until an
adequate Airport Business Plan has been approved by the City
Council which demonstrates the ability of the Kalispell City
Airport to generate sufficient revenues from all sources to
adequately fund airport operations over the next 20 years". The
motion was seconded.
There was more discussion.
The amendment carried with Collins, Nystul, Granmo Haarr and
Donahue voting in favor and Kennedy, Larson, Atkinson and Rauthe
voting against.
The twice amended motion carried upon roll call vote with Haarr,
Kennedy, Larson, Nystul, Atkinson, Collins, Donahue and Rauthe
voting in favor and Granmo voting against.
ordinance 1243 Creating an Urban Renewal
Thelen explained that several of
Plan -Downtown
the members
-1st Reading
of the Council
have
submitted reservations about the
$12,500,000
proposed bond
issue
for projects within the Downtown Urban Renewal
Area. Comments
have
ranged from financing none of
the projects
to elimination of
several and a cutback in the size
of some. Specific
concerns
that
have been expressed include:
A. A desire to return tax values to the taxing districts by 2002
when the initial bond issue is scheduled to be retired.
B. A desire to return some of or all of the tax valuation in the
downtown increment district to the taxing district as soon as
possible.
C. A desire to reduce the size and amortization schedule of the
proposed $12,500,000 20 year issue.
A
930
HEAR THE PUBLIC
Northwest Montana Historical society
Delores Swanberg, 154 Caroline Point Road, Lakeside, was concerned
about others having priority over the Historical Society's request
for a museum at Central School.
Green Acres
Sally Delby, 1740 Woodland Avenue, expressed concerns about the
proposed annexation.
Mollie Glendening, 1749 Woodland Avenue, was concerned over the I
zoning changes if annexed.
.,,Hagen Field Sale
'-The following encouraged the sale of Haven Field;
Gib Bissell, 76 Stafford Street, Airport Advisory Board President
Dave Dachs, 335 Summit Ridge Drive
Rich DeJana 422 Summit Circle
Ed Trippet, 1135 lot Avenue West
Don Judge, AFL CIO State Representative, encouraged the support of
organized labor.
Ordinance 1247-Repeal Ordinance 1243. An ordinance ,-elating o the
modification of the Kalispell. Mdntana Urban Renewal Plan (The
JJrban Renewal Plan) to anprove_certain projects as urban renewal
pr9jects. 2nd Reading
,-`his is the continuance of the approval process that has been an
:•ngoing discussion for several months. The 2nd reading is the
ontinuance of action taken at the August 19, 1996 meeting.
i,';ennedy moved Ordinance 1247, an ordinance to repeal 1243, an
ordinance relating to the modification of the Kalispell, Montana
Urban Renewal Plan.
The motion carried upon roll call vote with Collins, Donahue,
Granmo, Haarr, Kennedy, Larson, Nystul, Atkinson and Rauthe voting
in favor.
Resolutign 4292-Change Order -Teton Terrace
The Teton Terrace project includes infrastructure improvements. We
are currently in this phase of the project. A memo was submitted
concerning the change order from the Consulting Engineer.
The Consulting Engineer and the City Staff have reviewed the need
for these changes. Due to the desire to consolidate the electrical
work into one common trench that will create less trenching and
less disruption of the finish grade as well as give the City the
control of water service by placement of a new gate valve, all of
the reviewers recommend approval of this change order. The
increase in costs is based upon the unit bid prices. The original
price of $191,525.76 will increase by $6,298 to a new contract
price of $197,823.76.
Larson moved Resolution 4292, a resolution to alter and amend the
plans and specifications of contract with Sandon Construction
Company on the Teton Terrace Project. The motion was seconded.
With a roll call vote the motion carried with Collins, Donahue,
Granmo, Haarr, Kennedy, Larson, Nystul, Atkinson and Rauthe voting
in favor.
Resolutian_4293-Syth BUl ness Park PrelLminapy Plat
The Planning Staff and the Planning Board have recommended the
approval of the proposed preliminary plat with 12 amended
conditions.
Nystul moved Resolution 4293, a resolution approving the
preliminary plat of the Syth Business Park, Flathead County,
Montana. The motion was seconded.
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The motion carried upon roll call vote with Collins, Donahue,
Granmo, Haarr, Kennedy, Larson, Nystul, Atkinson and Rauthe voting
in favor.
Addendum to North Side Water Wgll Engineering Contract
This project contract dates back to April, 1994. The contract fees
were negotiated for engineering services only through the test well
and report phase. Final design and construction management phases
were left for future negotiations. The project will be built on
the college property. The City now has approval from the College
President to drill the new wells during Christmas break and into
the next semester. Public Works has negotiated a contract for the
completion of this well project.
Collins moved Council approve the contract with the new fees. The
motion was seconded.
The motion carried with a vote.
Authority too Advertise Sale ofHaven Field
'This process is the continuance of the project approved by the
Council at the July 1, 1996 meeting. This will -allow the project
to become an active project and will begin the transition toward
the removal of the fields.
Kennedy moved the Council authorize Staff to advertise the sale of
Haven Field. The motion was seconded.
There was discussion.
Larson, Collins, Kennedy spoke in favor of the motion.
Donahue moved to continue the motion until October 7, 1996. The
motion was seconded.
The motion failed with Granmo, Haarr and Donahue voting in favor
and Kennedy, Collins, Larson, Atkinson, Nystul and Rauthe voting
against.
Kennedy called for the question.
With a vote the motion carried with Granmo voting against.
agthorjty to Allow Temporary Loans from Sewer Fund and Set Rate
Kennedy moved to authorize temporary loans from the sewer fund and
set the rate at 6 1/28 as recommended by Amy Robertson. The motion
was seconded.
The motion carried with a vote.
Authority tg Pay Preliminary Bills
Kennedy moved to pay the preliminary bills with the loaned sewer
fund money. The motion was seconded.
There was discussion.
Upon vote the motion carried.
FOR YOUR INFORMATION
Parks Director Baker reported on the vandalism at Woodland Park
over the weekend.
Next Work Session September 16, 1996 7:00 p.m.
Next Regular Meeting September 23, 1996 7:00 p.m.
ADJOURN
The meeting was adjourned at 8:40 p.m.
Douglas DU Rauthe, Mayor
ATTE Q, " TX_�1 1 /� OZ C/ 7 '�
Debbie Gifford,
Clerk of Council AMroved Sentenber 23, 1996
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The indication is that the other 16 spaces would be the full
responsibility of the Tennis Club to provide. However, there is no
place to provide them from unless they go to the Medical Arts for
.an additional joint use Agreement.
The Medical Arts is an extremely busy parking lot. This raises the
same concerns with the ability to provide sufficient parking as we
have been trying to address with them this entire process.
Nystul moved to amend the previous motion reflect the new text. I
The motion was seconded.
The amendment carried unanimously.
Collins and Larson spoke in favor.
There was discussion.
Nystul moved to strike the 2nd sentence from Condition 3. The
motion was seconded.
The amendment carried with a vote.
Atkinson spoke against the amended motion.
There was lengthy discussion.
The amended motion carried upon vote.
Buffalo gill Golf Course Feq_ Request ,
The Golf Course is requesting an increase in fees for next season.
The present lease requires approval from the Council for increases.
Council may approve the request as submitted or Council may defer
the approval until the new lease is negotiated. A deferral would
cause the Association problems in terms of membership notification
and the January 31 discount dates since many of the memberships
would need to be renewed prior to the end of the tax year.
Krepps recommended to proceed with the approval of this request.
The association is aware of the concern of the lease negotiations.
Mr. Dunfee is responding as well and as rapidly as possible to his
committee's directions. The City will continue with the
negotiations for the new lease.
Larson moved Council approve the request from the Kalispell Golf
Association'to increase the green fees for the 84 as requested.
The motion was .seconded.
There was discussion.
Kennedy spoke in favor and Atkinson spoke against.
With a vote the motion carried with Atkinson voting against.
Haven 'Field/Athl`etic complex -offering Memor nd +m
Atkinson moved to proceed with the publication and the process for
the offering of the sale of Haven Field and Lions Park Street. The
motion was seconded.
The motion carried unanimously with a vote.
gggolution 4296-Encourage Voter Participation Regarding the Bond
issue on the Ab12lied ' och ology and Learning Center
Atkinson moved Resolution 4296, a resolution to encourage voter
participation regarding the bond issue on the applied technology
and learning center. The motion was seconded.
There was discussion.
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JANUARY 6, 1997,.IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN
GRANMO, DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE 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 16, 1996
B. Approval of Claims per Payables Register-$413,022.80
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-Norb 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.
HEARING THE PUBLIC
Claire Strickler, 192 Larch Lane, Columbia Falls, Scenic
Preservation Commission, offered to answer any questions about the
resolution for Scenic Byways.
" Salt of Haven Field
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.
u Hour Parking Limit
Kennedy read a letter from Wanda Poor, regarding the 72-hour
parking limit, and then requested it be addressed at the next work
session.
Resolution 4303 Wood1!2nd Court Change 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/MT-CDBG-94HR-06. The motion was seconded.
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With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy,. Larson, Nystul and Rauthe voting
in favor.
Resolution4308-Create Airport authority/Haven meld Sore
City Attorney Neier submitted a memo after receiving his answers
from Mae Nan 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 TIF funding.
He felt the City would complete all projects, through TIF, 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 5% earnest money from
prospective developers. The motion was seconded.
There was more discussion.
The motion carried unanimously.
Nystul 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.
The motion carried unanimously.
Resolution 4309-Intent to. Create Wegt' Side Urban Renewal TIF
District
The City has been working with a developer for the past several
months in determining the potential development and redevelopment
of the Gateway Mall 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 map 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.
Krepps 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 7:00
P.M. MONDAY, FEBRUARY 3, 1991, IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN
GRANMO, DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
I
Allegiance.
AGENDA APPROVAL
Haarr moved to approve the agenda. The motion 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.
Krepps requested the deletion of Item E.
The motion carried upon vote.
CONSENT 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. Bid Award Gettera"r
F. Authority for Spring Creek/Meridian Road Drainage Study
Contract
G. Greenacres Refund Requests
H. Proclamation -Famine Weekend -February 7-9, 1997
Mayor Rauthe proclaimed February 7-9th as Famine Weekend.
Collins moved to approve the consent agenda. The motion 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.
Sale Qj Daley 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.
Central School Museum
Delores Swanberg, 154 Point Caroline Road, Northwest Montana
Historical Society, thanked the Council for their support and gave
an update.
Teton on Terrace Final Plat
Atkinson moved to approve the final plat for Teton Terrace. The
motion was seconded.
The motion carried with a vote.
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4. Eliminated the City responsibility for capital improvement
obligations in the event the lease is terminated.
5. Maintained reporting requirements for improvements less the
$25,000 and the approach of the Council for improvements
beyond $25,000.
6. Added City's ability to audit the financial records of KGA at
the City's cost.
7. Added City's ability to increase liability insurance
requirements if State raises maximum liability statutes.
8. 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 KGA 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.
Haven Field Offer "
Two bids were received and opened on January 30t° 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.
Krepps 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 1" 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 1.
Linnell answered questions.
977 ;' 3197
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980
The 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.
Haven Field Sale
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
None
Opponents
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, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor.
Haven Fiel!1 Offers
Two bids were received and opened on January 30, 1997 as follows:
Purchase Price Earnest Money
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.
Nystul-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.
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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 am not
prepared to give my imprimatur to the bonding intention of this but
I do vote in favor of the sale to the Outlaw.
Rauthe-I guess I cannot let the record end 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 may 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 my knowledge that we
would be funding the improvements for the ballfield and have been
shown that it i's 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.
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Yes, it will.come back before this Council and come 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
immediately with preparing our engineer, that has been working on e
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 utilized 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 them, we
told them one year without the Haven Field, and I'm 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 motion. Most of our motions 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-We 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.
Nystul (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.
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1023
Since the last conversations and actions pertaining to the Gateway
West 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 moved 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.
Haven Field
-Agreement
Krepps reported there would be no formal action as the discussion
remains in the hands of the attorneys.
Timmrach Acquisition
The funding for this acquisition will come from the airport TIF
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.
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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,
T28N, 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.
esolUtion 4336-Lantis Subdivision -Preliminary 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.