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Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 FAX (406) 758-7758
August 2, 2000
Richard Dasen
1701 Highway #93 South
Kalispell, MT 59901
Re: Southfield Park Development Agreement
Dear Mr. Dasen:
This letter will memorialize meetings we have had concerning the
above referenced matter over the past three weeks.
As we discussed, the Development Agreement, dated February 11,
1998, between the City of Kalispell and Richard A. Dasen,
Developer, obligates the Developer to pay, to the City, the
difference between the taxes actually billed on the Southfield Park
development and the contemplated tax revenue of $124,000,
commencing with the 1999 tax year (Section 5.5., Development
Agreement). For tax year 1999 Southfield Park was billed $25,745
in real estate tax. Under the Agreement, the Developer is
obligated to pay to the City the sum of $98,255, a sum which I
understand you acknowledged owing during our conversations. To
date, payment of the shortfall has not been made, which is a
default under the Agreement. Tax bills for tax year 2000 have not
been sent out, but the City does not anticipate any significant
change in real estate taxes billed or the additional amount due
under the Development Agreement for the 2000 tax year.
The City has made commitments and has incurred liabilities in
contemplation of your performance under the Development Agreement.
During our meeting, you did not deny owing the money, but rather
requested some accommodation in scheduling past due payments. In
the hope of settling the matter in a mutually agreeable manner, I
offer the following as a compromise, bearing in mind that this
offer is subject to Council approval:
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Richard Dasen
August 2, 2000
Page 2
1. Amend the Development Agreement to extend terms for
payment of the amount past due for the 1999 tax year.
2. In consideration of the City's agreement not to declare
default, you as Developer under the Agreement would pay
to the City, at the time of signing the Amendment, the
sum of $70,513, which represents obligations incurred by
the City in contemplation of your payment.
3. The balance of the amount for the 1999 tax year, $27,742
would be due on or before December 15, 2000.
4. The amount payable under Section 5.5 of the Development
Agreement for tax year 2000 would be calculated upon
receipt of your tax bill for the year and payable in two
equal installments, one being due December 15, 2000 and
the second May 15, 2001, without interest.
5. Subsequent payments under Section 5.5 of the Development
Agreement would be payable on December 15 of the tax year
for which the liability is incurred. Interest on unpaid
amounts due for subsequent years would bear interest at
a default rate of 10% per annum, from the time due until
paid.
Please respond to my proposal within ten days. This office, as well
as the City Council, is desirous of settling the matter without
resorting to litigation.
Sincerely,
Chris Kukulski
City Manager
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