Exhibit N - Infrastructure Items4�-611./- AJ
February 3,1997
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()Ud*W Jim
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KINPAUT-SM
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Mr. I,awreace GalJagmx, Dir+x�or
Planning, Economiw At CanunutAy Developmatt Department
City of Kslispag
P.O. Box 1997
Kalispell, Montana 59903-1997
We are happy to provide additional information about our bid for the purchase and developmaot of fire
Haven Field/Lion Park Street property as requested by Ross Piambeck of your office.
As you have Mcatcd, the City of Kalispell 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'/. fix, this is worth some
$44,322.
Addressing questions about the proposed project itself, we expect the final billed out value of the
development and associated improvements to range from 57.8 to 58.5 million. This includes $1.5 million
in improti ements 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 anal}za and evaluate the potential
cosu 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 sodiment 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 proioct. 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
Kalispell's Convent
Hest Western ►lotus re-deoeroer1tH om ef7 and oo-vw
.z.
• Water Lhus, Sewer Lisa, sed Otber Utilities -- We have boa nwed by Iacboia ,
Engineering and tht City dust adequate watrer, suer, and electrical utilities do exbt up to the
property lino. Therefom there would be no cost to the City. We mould, doomm, aonstrud
the mqui W utility meammaum and book -ups (with n ated &s) to service do prgmcL
• Perimeter Sidewalks ad Street Limos — We have drat some street WO
already east on Lion Park and lEth Streets. Those wall ba when
witb liAft wa will awsuttct oa t6t dev*p aeet p mpa y. As for adewaSts, we wit bold
ag site "walks and tie in to any State at City si&valks which might be 000strncW in
aamctistioo with the Hwy"an uctioa project sad airy klum stroll =mMuctica
• Resurface of Third Street East Frontage -- In evahuting the condition of Third Street Fast
along the Haven Field property, we believe that resurficing is not required at this time.
However, should funds become available to the City o the future, we would appreciate your
considering this spw for row to complemart 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 Paris Street
Spam-
* 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 supporfft this
ram.
• 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 the% can obtain the necessary permits for
the move.
As stated in the bid, we are anxious to begin construction quickh- 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 identifiers on Plan A. In addition, we are initiating discussions with a potential bank tenant.
We appreciate your considering our bid and look forward to woriomg with you.
cc: Ross Plambeek