02/03/97 Dasen/Additional InformationFebruary 3,1997
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Mr. Lawn = Gallagher, Director
Planning, Economic, do Community Developmcrit Department
City of Kalispell
P.O. Box 1997
Kalispell, Montana 59903-1997
Dear Larry:
We are happy to provide additional information about our bid for the purchase and development of the
Haven Field/Lion Park Street property as requested by Ross Plambeck of your office.
As you have indicated, the City of KalispeH 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% fee, this is worth some
W,322.
Addressing questions about the proposed project itself" we expect the final billed out value of the
development and associated improvements to range from $7.8 to $8.5 million. This includes $1.5 million
in improvements 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 analyze and evaluate the potential
costs 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 sediment 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 project. 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
arrangement.
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• Water Lines, Sewer Lines, and Other Utlities -- We have boon assured by lackols
Engineering and the City that adequate water, sewer, and electrical utilities do exist up to the
property lines. Therefore, then would be no cost to the City. We would, of course, construct
the required utility infrastruchrre and hook-ups (with nbud fees) to service tie project.
• Perimeter Sidewalks and Street Lights — We haft determined that some street
already exist on Lion Park and 18th Streets. These wM be sufficient when coapleinciMed
with lighting we will construct on the develops unit pireperty. As for sidewaikss, we wM build
all site sidewalks and tie in to any State or City sidewalks which might be constructed in
association with the Hwy 93 construction project and any futiure street reconstruction.
• Resurface of Third Street East Frontage — In evaluating the condition of Third Street East
along the Haven Field property, we believe that resurfacing is not required at this time.
However, should funds become available to the City in the future, we would appreciate your
considering this street for reconstruction to complement 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 Park Street
space.
• 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 supporting this
request.
• 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 they can obtain the necessary permits for
the move.
As stated in the bid, we are anxious to begin construction quickly 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 identified on Plan A. In addition, we are initiating discussions with a potential bank tenant.
We appreciate your considering our bid and look forward to working with you.
cc: Ross Plambeck