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Exhibit N - Infrastructure Items4�-611./- AJ February 3,1997 Nd wedem ()Ud*W Jim ►roe at KINPAUT-SM !br aw /aoaat-� 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