06/10/98 Gallagher/Rosauers' Sanitary Sewer Drain(123)456-7890 P. 001
07/20/98 15:53 STATION
interoffice
M E M O R A N D U M
To: Glen Neier, Interim City Manager
From: Lawrence Gallagher, PECDD Director
Subject: Rosauers' Sanitary Sewer and Storm Drain Installation by the City of
Kalispell and May 22, 1998, Letter from KIEMLE & HAGOOD
COMPANY
Date: June 10, 1998
When 1 returned to the office on the afternoon of June 1, 1998, 1 reviewed a May
22, 1998, letter farm Gerald L. Hagood, President of Kiemle & Hagood Company.
Mr. Hagood will continue to represent the owner/developer of the site and had also
expressed interest in at least one of the remaining parcels held by the City. A copy
of Mr. Hagood's letter is attached.
As you recommended, I have obtained detailed preliminary cost estimates for the
City to install the Sanitary Sewer and Storm Water Retention System for all three
lots as a project to be undertaken and paid for by the City of Kalispell. The City
could elect to do the work in-house or contract it out. Upon completion of the
installation at the City's expense, the City would assess Lot 2, the Rosauers' lot,
for its pro rats reimbursement of the cost of providing the infrastructure.
1 have included the amount estimated by Public Works in the PECDD budget
request for the Kalispell City Airport/Youth Athletic Complex Project budget for FY
1999 and also estimated the revenue recapture of Rosauers' pro rats share of the
cost. The anticipated cost of the City installing the traffic signal at the new
intersection of 31d Avenue East and Hwy 93 South is also in the budget and, in my
opinion, Rosauers has every right to expect that the signal at Kelly Road will be
installed sooner rather than later because we told them the City's plans were to
offer Lots 1 and 3 for sale this year.
Mr. Hagood's letter did not mention the cost of providing the Lot 1 and Lot 2
access road from Hwy 93 South to the westerly edge of Lots 1 and 2. Half of the
cost of this internal access road was to be born by Lot 1 which it appears will
remain unsold and undeveloped by the time the road and utilities are needed by
Rosauers. They can build the road and assess the City its pro rata share of the
cost attributable to Lot 1 to the City.
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07/20/98 15:54 STATION
Glen Neier, Interim City Manager
Page 2
Jane 8, 1999
(123) 456-7890 ....................P....002..
Mr. Hagood has requested a response from the City before duly 21, 1998, if the
City of Kalispell intends to develop the plans for the sewer main (and storm water
retention system) or if Rosauers should anticipate having to complete the plans.
Please let me know how and what you want me to respond.
Without the sale of lots 1 and 2 of Daley Field (10.394 acres = 452,763 sq feet
of land) at a minimum value in excess of the price paid by Rosauers (more than
$ 1,472,000), there is no money or source of revenue to pay for the improvements
specified in the agreement with Rosauers or for other capital and safety
improvements to the Kalispell City Airport, nor is there any money available for
land acquisition. Should the City elect to continue postponing offering the sale of
the real estate it will have to borrow from other City reserves or on the public
market to meet its financial obligations of the Rosauers transaction. I am also
concerned about the saleability or absorption of almost %2 million square feet of B-2
highway commercial property at a reasonably high price if there are hundreds of
acres of now 8-2 zoned property available along Highway 93 North at Reserve
Street.
Please let me know how you want me to proceed on these issues.