12/09/97 Neier/Outlaw Inn Development Agreementof Van a k"M
Incorporated 1892
Office of the City Attorney
Glen Neier, City Attorney
Richard Hickel, Asst. City Attorney
Theresa White, Legal Secretary
December 9, 1997
Dan Johns
Crowley, Haughey, Hanson, Toole & Dietrich
431 First Avenue West
P.O. Box 759
Kalispell, MT 59903 0759
Re: Outlaw Inn Development Agreement
Dear Dan:
Telephone (406)758-7708
P.O. Box 1997
Kalispell MT 59903-1997
Fax (406)758-7758
A few weeks ago I called to inquire into the status of the City's
Development Agreement with Dick Dasen et al. on the Haven Field
development. In our conversation, you indicated at least some of
the principals had objections to § 5.5, wherein the Developer
agreed to pay a payment in lieu of taxes if the Developer failed to
construct the anticipated improvements. The fact that the
Developer was objecting to the "PILT" came as a surprise because
throughout discussions on the Development Agreement, no one raised
any concern regarding this paragraph.
It has been nearly six (6) months since the City and Dasen closed
on the property. I believe it was at the time of closing that Mary
Dyer indicated to me that all parties had accepted the Agreement
and that Dick Dasen had signed. She further indicated that
Southgate Mall's signature on the Agreement was ministerial and the
City could expect an executed agreement within a few days of
closing on or about July 15, 1996.
The fact that we have not received an executed copy of the
Development Agreement is cause for some concern at the City. As
you are aware the City has plans for the funds generated by the
sale of Haven Field. If the Developer does not intend to perform
under the Agreement, and only purchase the property for speculative
purposes, the City may be forced to bring a legal action to
rescind the Agreement and seek return of the property to the City.
The City in entering into the Development Agreement did so in good
faith, without any knowledge of problems. We have been more than
a little patient anticipating a return of the Agreement. Please
respond with a reason for the non-performance.
Since e
Glen eier
City Attorney
pc: City Manager