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07/18/97 Daley Field Offering DocumentREDEVELOPMENT SITE AVAILABLE Daley Field Kalispell, Montana Up to 15.6 Acres (681,758 Square Feet) Available Zoned B2 - Highway Commercial Located at Kalispell's South Entrance U.S. Hwy 93 Frontage and Signalized Controlled Access For Information Contact City of Kalispell Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 (406)758-7740 FAX (406)758-7739 or Any Licensed Real Estate Broker you may wish to engage to represent your interest in the transaction.' Redevelopment proposals will be accepted prior to and until 11:00 a.m. Mountain Day Light Time, Thursday, August 14, 1997, by Clerk of Council, Kalispell City Hall, 312 1" Avenue East, Kalispell, Montana. This presentation is not an offer to sell the property described and is, instead, a solicitation of offers to purchase. Any offer to purchase must be accepted and approved by resolution of the City of Kalispell and in accordance with disposition procedures specific in the Montana Urban Renewal Law and by the City of Kalispell. Information provided herein is a summary, subject to error and omission, and without any warranty of accuracy. Prospective purchasers should independently verify any information provided herein. No real estate listing or agency agreement is implied directly or indirectly by reason of this presentation. SUMMARY OF IMPORTANT FACTS Property Identification: The property is commonly known as Daley Field. The parcel is currently in public use as a baseball field adjacent to the Kalispell City Airport, however, it has been rezoned General Business, B-2 Commercial, for sale and private redevelopment. Location: Entering Kalispell, Montana, from the south, the parcel is highly visible, located immediately adjacent to and west of U.S. Hwy 93 South. The parcel has over 1,568 feet of highway frontage. Neighborhood: The subject property and all of the airport property is included within the boundaries of the "KALISPELL CITY" AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN (the "Plan"). The Plan is a comprehensive Urban Renewal Plan adopted by the City Council, Ordinance No. 1242, on July 1, 1996, to implement the Airport Neighborhood Plan adopted in 1993. A map of the Urban Renewal Plan area and adjacent neighborhoods is attached as Exhibit A. Kalispell City Airport, Montana's busiest general aviation airport, is located west of the subject and is the focus of the City's plan to redevelop the area and the airport into a FAA approved general aviation field. The Plan calls for extension of the runway to 4700', fencing, lighting, and other safety improvements. The City Council acts as an Airport Authority to manage the facility and to attract users, provide more general aviation facilities and hangars, and, in general, enhance its use as a publicly owned general aviation field. It is advised by an appointed Airport Advisory Committee. Site Description, Shape and Size: A 681,758 square foot rectangular parcel of land (15.651 acres) commencing at the northwest corner of the Southeast 1 /4 of the Northwest 1 /4 of said Section 20; thence along the easterly line of said aliquot part South 00°01'58" West 148.88 feet to the POINT OF BEGINNING of the parcel being described; thence south 33'06' 10" East 1200.75 feet to the northwesterly line of that parcel described as Tract II in CITY OF KALISPELL REAL ESTATE OFFERING 2 JULY 18, 1997 Document No. 9202116120, records of Flathead County, thence along said northwesterly line of said tract II, North 56'55'16" East 439.83 feet to the southwesterly right-of-way line of U.S. Highway No. 93; thence along said southwesterly right-of-way line, North 33'04' 19" West 1568.07 feet to the southeasterly line of that parcel described in Book 372 Page 172, records of Flathead County, thence along said southeasterly line of said parcel, South 56°52'57" West 300.01 feet to the northeasterly line of that parcel described in Book 507, Page 116, records of Flathead County; thence along said northeasterly line of said parcel, South 33' 1545" East 60.37 feet to the southeasterly line of said parcel; thence along said southeasterly line of said parcel, South 56048'58" West 140.83 feet, thence South 33°06'10" East 306.49 feet to the Point of Beginning, containing 15.651 Acres of land, all as shown on Certificate of Survey No. 12729, which is herewith incorporated and made a part of this legal description. Reserving therefrom a non-exclusive roadway and utility easement, being 30 feet in width, lying northwesterly of and along the most southeasterly line of the above described Parcel 4. Reserving therefrom a non-exclusive roadway and utility easement, being 30 feet in width, lying southeasterly of and along the most northwesterly line of the above described Parcel 4. Record Owner: FEE SIMPLE ESTATE held by THE CITY OF KALISPELL, MONTANA, a body politic. Access and Streets: U.S. Hwy 93 South and a proposed new signalized intersection with 3'd Ave East and at Kelly Road. The Montana Department of Transportation anticipates the contracts for reconstruction of Hwy 93 South as a four lane highway will be awarded in the Spring of 1999 with construction to begin the Summer of 1999. Preliminary plans may be available by late Fall 1997. Visibility & Traffic: This site is highly visible from all access points. Recent traffic counts from the MDT indicate approximately 16,000 ADTs CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 Kj along this stretch of U.S. Hwy 93 South. MDT has estimated an approximate 27,000 ADTs per day within 20 years. Topography: All sites are level or gently sloping and at highway grade. Soils: No subsoil information or investigation has been conducted by the City other than a Phase I Environmental Audit of the subject, a copy of which will be made available to interested redevelopers. Utilities: Sanitary Sewer CITY OF KALISPELL Approximately the southern 2/3 of Daley Field site has the potential for gravity flow to the 12 inch PVC gravity sewer located adjacent to the southwest corner of the site. The remainder of the site could be served with a grinder or effluent pump to the same existing sewer. The extension of the sanitary sewer line from the current man hole (7.5 feet in depth) to the north would require a minimum 8 inch PVC pipe at an approximate cost of $50 lineal foot, plus pump costs. The line should be located on the property with an easement. If a storm drainage retention pond is constructed along the west edge of the property, the sanitary sewer line cannot be located under the pond. Locating the sewer line west of the property on airport land may be possible, but would require approval by the Airport Authority Board. Water A 12 inch water main is located on the west side of Hwy 93 South, immediately adjacent to Daley Field. Development of the property would require the extension of the water main to each of the buildings. Fire hydrants require an 8 inch minimum pipe, and fire sprinkling requirements would be based upon specific development proposals as defined in the 1991 Uniform Building Code. REAL ESTATE OFFERING M JULY 18, 1997 Electrical Service 3-Phase, underground electrical power is available at the northerly edge of Daley Field, adjacent to Hwy 93 South. Providing power to new construction will require the developer to provide trenching and conduit per Pacific Power's requirements. Per their current policy on extension of services, Pacific Power will provide and pull the wire to the building site. Telephone Service Telephone lines are located underground on the east side of Hwy 93 South. Extension of services to Daley Field will require PTI to apply for a permit to bore under the highway. PTI will provide the service at no charge and requires 60 to 90 days to schedule and complete the work. Natural Gas In a May 21, 1997 telephone conversation with John Swenson, Service Representative for Montana Power Company, he provided the following preliminary information: Under current line extension policy permitted by the Public Service Commission, Montana Power Company feels in its best estimate that natural gas service can be provided at no cost to the potential users locating on Daley Field. Natural gas is available to the site in the following locations: Westside of Hwy 93 South 2 inch line on the north side of the National Guard Armory (north side of Daley Field) 2 inch line at the Social Rehabilitation Services Building (south side of Daley Field) East side of Hwy 93 South 4 inch line that turns east at 3rd Avenue East. Relocation of pipe is not anticipated with highway reconstruction. CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 BTU demand of the proposed loads will determine if pipe sizing on the west side of highway is adequate or, if because of the size of the load, a boring under the highway to access the gas line on the east side of the highway will be necessary. If a bore under the highway is necessary, MPC will have to obtain the necessary permits from the Montana Department of Highways. MPC needs enough lead time to schedule the work prior to the ground freezing. Minimum lead time is dependent on current work load at the time of the request. A minimum of 30 days is needed to acquire the permit from MDOT. Storm Drain During the reconstruction of Hwy 93 South (Spring '99), MDOT will construct storm drainage for the runoff occurring from curb to curb of the highway. The City anticipates, subject to City Council authorization of additional funds, up - sizing the capacity of the system to accommodate a portion of potential development adjacent to the highway, including but not limited to Daley Field. Plans for storm drainage design should be available by late summer, '97. Several alternatives for storm drainage designs are available for the development of Daley Field. A temporary retention pond could be constructed on an unused portion of the site until the highway is reconstructed. It is not anticipated the new highway storm drainage system will be sized to handle all runoff from adjacent properties. Proper site planning will need to accommodate the majority of the runoff in a permanent detention pond system. Other recent development in the area have taken advantage of the setback zone from the airport and utilized the western edge of their properties for the detention system. Utilities cannot be located under the detention pond. Depending upon timing, developer's may be able to participate in further up -sizing of the storm drain system and recapture costs with a late comers fee. CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 C Highway 93 South Reconstruction MDT anticipates the contracts will be awarded in the Spring 1999. Construction to begin Summer 1999. Preliminary plans may be available by late Fall 1997. Access to Daley Field can be temporary, based upon final highway design. If a traffic signal is needed, a temporary signal may be permitted, subject to MDT approval and costs paid by others. Future permanent traffic signals are anticipated at the realignment of the intersections of 3rd Avenue East and Hwy 93 South, and Kelly Road and Hwy 93 South. Installation of traffic signals will depend upon traffic counts, turning movements, warrants, and MDT's final policy decisions on who pays for the signal. If signals are requested prior to MDT's procedures, the rationale and costs will need to be provided by others. The City's participation will not exceed the $1 10,000 budgeted. Zoning: The site is governed by the .CITY OF KALISPELL Zoning Ordinance, with an effective date of March 19, 1992. A complete copy of the Zoning Ordinance is available from the City's Department of Planning, Economic and Community Development Office. CITY OF KALISPELL The parcel is zoned General Business, B-2. According to Chapter 27.14, B-2 GENERAL BUSINESS, Section 27.14.010 Intent, the B-2 designation is: "A business district to provide areas for those retail sales and service functions and businesses whose operations are typically characterized by outdoor display, storage and/or sale of merchandise, by major repair of motor vehicles, and by outdoor commercial amusement and recreational activities. The district would also serve the general needs of the tourist and traveler." For planning purposes, copies of the appropriate sections of the Kalispell Zoning Ordinance are attached as Exhibit C. These include: Sections - 27.14.020: Permitted Uses; 27.14.030: Uses Which May Be Permitted By Conditional Use Permit; and REAL ESTATE OFFERING 7 JULY 18, 1997 27.14.040 Property Development Standards (pages 26, 27, and 28 of the Kalispell Zoning Ordinance). Note: The City encourages an attractive, aesthetically pleasing signage plan that shall advertise and promote businesses that are being conducted on said property. The sign(s) shall meet all required setback and size requirements as set forth in the Kalispell Sign Ordinance. The display of billboards and/or off - premise signs will be prohibited by deed restriction on all of the land that is the subject of this offering. Parking: Parking requirements are governed by Chapter 27.26 of the Kalispell Zoning Ordinance. Tax Information and Assessment The real estate has been "tax exempt" because the City of Kalispell, its current owner, is a public entity exempt from taxation. Now it is the City's goal to encourage the private redevelopment of the site to its highest and best use, thereby generating substantial ad valorem taxes for the tax increment district and eventually all taxing jurisdictions. In Montana and in Kalispell, both real and personal property are subject to property(ad valorem) taxation, except as provided otherwise. It is anticipated that the subject real estate and improvements and personal property will be classified and taxed as: Section 15-6-134, MCA, 1995: Class four property - description - taxable percentage. (1) Class four property includes: (a) all land, except that specifically included in another class; (b) all improvements except those specifically included in another class. (2) Class four property is taxed as follows: (a) Except as provided in 15-24-1402 or 15-24-1501, property described in subsections (1)(a), (1)(b), and 1(e) is taxed at 3.86% of its market value. Section 15-6-138, MCA, 1995: Class eight property - description - taxable percentage. (1) Class eight property includes: CITY OF KALISPELL REAL ESTATE OFFERING 0 JULY 18, 1997 (h) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section; (3) "Commercial establishment" includes any hotel; motel; office; petroleum marketing station; or service, wholesale, retail, or food handling business. (4) Class eight property is taxed at: (a) 9% of its market value for tax years ending on or before December 31, 1995; (b) 8% of its market value for tax year 1996; 7% of its market value for tax year 1997; (d) 6% of its market value for years beginning after December 31, 1997. The 1997 Legislature altered the tax law and will continue to modify tax policy in the future. The general trend is to reduce the ad valorem tax paid. Tax liability for business property is determined in the following way: Market Value x Classification Rate = Taxable Value Taxable Value x Mill Levy = Property Tax Liability The mill levy is an aggregate of state and local levies imposed annually for the purpose of funding city and county governments, schools, and the university system. The Property Assessment Division of the Montana Department of Revenue is responsible for ensuring that all property in the state is treated equitably. County appraisers (as employees of) and assessors (as agents of) the Montana Department of Revenue are responsible for valuing property. Market Value is based on (1) replacement value, (2) depreciation factors, and (3) selling prices in Kalispell. Thus, to determine the value of commercial property, the appraiser uses two methods of appraisal: the market approach and the cost approach. The market approach compares fair market sales of similar properties (land and improvements) when sold on the open market. The cost approach estimates the cost of material and labor to replace the improvements, less depreciation, if any, for physical deterioration, age, and functional or economic obsolescence. CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 Ire The Montana Department of Revenue has been encouraged by courts, legislators, and property owners to consider income producing capacity when determining the market value of commercial real estate. The state has reappraised commercial properties for 1993 and is currently utilizing data on the income capacity of commercial buildings. It intends to utilize this data for future property reappraisals to aid in determining a commercial property's income approach to market value. City/County/School Mill Levies: The county taxable value is utilized to determine the mill levy level necessary to meet operating budgets for city, county, and public school operations. Once the mill levies are established, the county assessor computes the property taxes, and the county treasurer becomes responsible for billing and collecting property taxes. One mill is 1 /10 of a cent - computed as $1 tax on every $1,000 of taxable value. The rate is determined by comparing the local budget requirement against the taxable value for a particular taxing district. For example, if a school district needs $4 million from property taxes for its budget (and if the total taxable value in the county is $10 million), the mill levy would be determined as follows: $4,000,000 (money needed) $10,000,000 (taxable value) x 1,000 = 400 mills (Mills most often appear as a decimal. Thus, 400 mills would be expressed as .400.) For Class 4 property located within the City of Kalispell, the 1996 Combined Mill Levy for all taxing jurisdictions is:.520252 To estimate the ad valorem tax for a commercial building and land located within the City of Kalispell, use the following example: CITY OF KALISPELL REAL ESTATE OFFERING 10 JULY 18, 1997 Market Value Land Market Value Building 11[$11FAIELTl':. G i Class Four Classification TAXABLE VALUE Market Value of Personal Property Class Eight Classification TAXABLE VALUE TOTAL MARKET VALUE Combined Mill Levy 1996 AD VALOREM TAX DUE 1996 $ 800,000 (market approach) $2,200,000 (cost approach) $3,000,000 x .00386 $ 115,800 $ 200,000 x .08 $ 16,000 $ 131,800 x .520252 $ 68,659 In the example, a new development with a total land and improvement market value of $3 million and $200,000 in market valued personal property would pay $68,569 in total Ad Valorem Tax. Density & Height Considerations: The Kalispell City Council encourages redevelopment proposals that will take maximum advantage of the parcel's potential for highest and best use and urban density redevelopment. It wants to encourage construction of high quality and high value building(s). The subject real estate has not previously been available for redevelopment and has in the past provided both open space and an attractive landscaped entrance to the community; therefore, the City wants to encourage redevelopment that will enhance the south entrance to Kalispell as well as meet other objectives of the Plan. The City does not encourage redevelopment proposals or offers to purchase from developers desiring to purchase the land for speculation or for future unspecified redevelopment phased over a long period of time or to construct only one or a few CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 ill single -story low density buildings. While the City does not have a minimum density development standard or requirements, the Kalispell City Council will carefully evaluate all proposals and how it impacts the site, the surrounding neighborhood, and the City's tax base. Note: The City encourages an attractive, aesthetically pleasing signage plan that shall advertise and promote businesses that are being conducted on said property. The sign(s) shall meet all required setback and size requirements as is set forth in the Kalispell sign Ordinance. The display of billboards and/or off -premise signs will be prohibited by deed restriction on all of the land that is the subject of this offering. Proposals that represent architectural and site planning excellence will be given preference in the selection process. Objectives and purpose for the evaluation include: (a) Originality, flexibility, and innovation in site planning and development, including architecture, landscaping, and graphic design of the proposed development. (b) Protect and enhance the south entrance to.the City and appeal to residents and visitors and, thus, support and stimulate business and industry and promote the desirability of investment and occupancy in business, commercial, and industrial properties. (c) Stabilize and improve property values and prevent blighted areas and, thus, increase tax revenues. Criteria for evaluation of the proposals will be based upon the documents submitted in the proposal. All proposals shall include the following information: (a) A site plan drawn to scale, showing the proposed layout of all structures and other improvements including driveways, pedestrian walks, landscaped areas, fences, walls, off-street parking, and loading areas. The site plan shall indicate the location of entrances and exits and the direction of traffic flow into and out of off-street parking and loading areas, and indicate how exterior lighting, utility service, and drainage will be provided. (b) Architectural drawings or sketches, drawn to scale, including preliminary floor plans, with sufficient detail to permit computation of all site development criteria (i.e., setbacks, lot coverage, off-street parking requirements, building heights). The drawings will show all elevations of the proposed structures CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 12 and other improvements as they will appear upon completion, including all roof mounted equipment, trash storage areas, and utility equipment. (c) Specifications as to type, color, and texture of exterior surfaces of the proposed structures, including signage, graphics, and illumination. The Kalispell City Council and its advisory board, the Kalispell Development Corporation, understands redevelopment incentives, the land write -down process, return on investment, and the difficulty developers may have in securing firm financial commitments and financing for significant commercial projects. Therefore, the City will carefully and promptly evaluate all reasonable developer requests for City participation, to the extent permitted by the Montana Urban Renewal Law. Suggested Sales Price: The Montana Urban Renewal Law in Section 7-15-4262(3) states: "Such real property or interest shall be sold, leased, otherwise transferred, or retained at not less than its fair value for uses in accordance with the urban renewal plan. In determining the fair value of real property for uses in accordance with the urban renewal plan, a municipality shall take into account and give consideration to the uses provided in such plan; the restrictions upon and the covenants, conditions, and obligations assumed by the purchaser or lessee or by the municipality retaining the property; and the objectives of such plan for the prevention of the recurrence of blighted areas." The City Council will establish the fair value for the property based upon the proposals submitted by potential developers of the property, under Section 7-15-4262. The City Council may accept any proposal it deems to be in the public interest and in furtherance of the Montana Urban Renewal Law. Although the City is free to entertain high price offers for the property, its objective is to encourage highest and best use, excellence in design and siting, employment or job creation, and the highest possible market valuation of land and improvements for ad valorem tax purposes. The property will be offered as one parcel in the hopes of attracting a developer who will purchase and develop the entire tract or subdivide for specific redevelopment. However, the City reserves the right to consider proposals for the purchase of not less than a five (5) acre parcel(s) for specific redevelopment. In evaluating all proposals received, the City will consider the net cumulative benefits to enure to the City of Kalispell. Among CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 13 other things considered will be the price offered per square foot, the tax base of land, the value of specified real estate improvements for ad valorem tax purposes, the tax base of personal property, employment opportunities, and finally architectural site planning and design excellence. The seller, the City of Kalispell, is interested in receiving offers for ALL CASH ON CLOSING. Selection - Determination of Fair Value: The City may select the redevelopment proposal and base its final determination of the fair value for the land not only on the purchase price offered but also on criteria discussed in this document, the Goals discussed in the KALISPELL CITY AIRPORT NEIGHBORHOOD PLAN, and the "KALISPELL CITY" AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN (Ordinance No. 1242, attached as Exhibit D). The Kalispell City Council may select the redevelopment proposal that offers fair value for uses in accordance with the Plan and best addresses the goals and objectives of the Plan and offering criteria vs. a redevelopment proposal offering a higher purchase price yet failing to or only minimally addressing offering criteria. Actual sale of any property subject to this solicitation of offers to purchase real estate may only be accomplished in accordance with Section 7-15-4263, Montana Code Annotated. The City will begin legally advertising the property on July 27, 1997, August 3, 1997 and August 10, 1997. Redevelopment proposals will be accepted prior to and until 11:00 a.m. Mountain Day Light Time, Thursday, August 14, 1997, by Clerk of Council, Kalispell City Hall, 312 1st Avenue East, Kalispell, Montana. All proposals will be considered for approval and passage of a resolution authorizing the sale of the property at the meeting of the City Council on Tuesday, September 2, 1997. The selected redeveloper must be willing to execute a Developers Agreement demonstrating both financial and legal ability to complete the proposed redevelopment within the agreed time and for the amount specified in the redevelopment proposal. Section 7-15-4263, MCA, 1995, states as follows: Procedure to dispose of property to private persons. (3) The municipality shall consider all redevelopment or rehabilitation proposals and the financial and legal ability of the persons making such proposals to carry them out. The municipality may accept such proposals as it deems to be in the public interest and in furtherance of the purposes of this part and CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 14 part 43. Thereafter, the municipality may execute, in accordance with the provisions of Section 7-15-4262 and Section 7-15-4264, and deliver contracts, deeds, leases, and other instruments of transfer. The City, in considering competing proposals received as a result of the published notice, shall consider the purchase price offered by the respective respondents. However, the purchase price shall not be the sole factor in disposing of the property to a successful purchaser. The City shall consider such other factors as: proposal's potential to further the goals and objectives of the Urban Renewal Plan, background of potential developers, financial ability of potential developers to perform under the proposal, benefit to the City in general and benefit to the Urban Renewal Area in particular. The decision on disposing of the property will ultimately be based upon a broad evaluation of the proposals submitted and how the proposals individually serve the public interest. After the proposals have been evaluated, the City Council shall be presented with a resolution authorizing the sale of the property and authorizing the City Manager to execute a deed to the property. The resolution when passed by the City Council takes effect immediately. Developers desiring to avail themselves of City participation in a proposed development should be aware that additional public hearings and action by the Council may be required prior to or after the purchase. An urban renewal project involving an amendment to the Plan requires, under Section 7-15-4213, MCA, that the City submit, by resolution, a proposed Urban Renewal Project Plan to the City -County Planning Board for their review. The City -County Planning Board has sixty (60) days in which to receive comment on the proposed plan and make a recommendation to the City. Once a recommendation is received, or after sixty (60) days if no action has been taken, the City schedules a public hearing on the plan after public notice. The City notices the resolution by publication in the Daily Inter Lake and by mailing of notice to all property owners in the Airport Neighborhood Plan area. Publication and mailing must be accomplished in a window between not less than ten (10) nor more than thirty (30) days prior to the hearing. However, the City does not anticipate the need for more public hearings. After the public hearing, the City Council shall be presented with an ordinance amending the Urban Renewal Plan to accommodate the project and its particulars. Under normal procedure, the Council has two readings of the ordinance, at least twelve (12) days apart, and the ordinance becomes effective thirty (30) days after its final passage. CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 15 This synopsis of the requirements of the Urban Renewal Law is not intended to be an in- depth analysis of the procedures, but an outline of the basis requirements. Any developer desiring to present a proposal should retain legal counsel to evaluate the developer's position in the process. ENDNOTES: 1. Representation by a Licensed Real Estate Broker: The City of Kalispell (seller) is represented by its employees in any real estate offering, negotiation, or transaction. In the event the buyer is interested in making an offer to purchase the property, it may employ its own agent to review the transaction, represent it, and the buyer should pay its agent's fee. The basis of the fee is a matter between the buyer (redeveloper) and its agent. Buyers are encouraged to consider the advantages of engaging a Licensed Real Estate Broker to act as their exclusive agent, providing professional representation and legally negotiating for their interests in areas of: price, special conditions, dates of possession/project completion, participation in off -site development costs, or generally representing the interest and objectives of the Buyer. Agency representation must be disclosed in writing by both the buyer and agent. If the buyer's agent's fee is to be paid at the time of closing from proceeds placed in escrow by the buyer, such information must be disclosed and included in the buyer's Offer to Purchase. THE BUYER MAY ELECT TO PROCEED WITHOUT REPRESENTATION. CITY OF KALISPELL REAL ESTATE OFFERING JULY 18, 1997 16 FUTUREF SIGNALIZED INTER` CTIONS d q C FUTURE ACCESS 3RD AVENUE EAST FL�j i i ROADWAY TO BE DISC❑NTINUED FUTURE SIGNALIZED INTERSECTION o Aso SUBJECT PROPERTY \ 15.651 ACRES FUTURE SIGNALIZED INTERSECTION SCALE �(p0 1'=200' THE INFORMATION CONTAINED HEREON IS OF A GENERAL NATURE AND IS NOT �Ps INTENDED FOR DESIGN OR CONSTRUCTION PURPOSES. / �o tk SITE PLAN AND EXISTING UTILITIES � w �p d \ G \ 9 APPROX. M,H. DEPTH 7,5' APPROX. M.H. DEPTH 5,5' 6 ,O °N SUBJECT PROPERTY 15.651 ACRES \'L� \ PREX. M.H. DEPTH 5.5' SCALE \ O 1"=200' THE INFORMATION CONTAINED HEREON IS OF A GENERAL NATURE AND IS NOT INTENDED FOR DESIGN OR CONSTRUCTION PURPOSES. s I E HYDRANT APPROX, M.H, DEPTH 7.5' 12' PV � GR AV I� � SEWER POWER, PHONE GAS UTILITIES FUTURE ACCESS 3RD AVENUE EAST R❑ADWAY T❑ BE DISC❑NTINUED 1 i\\ SUBJECT P� PROPERTY 15.651 ACRES SCALE i"=200' THE INFORMATION CONTAINED HEREON IS OF A GENERAL NATURE AND IS NOT INTENDED FOR DESIGN OR CONSTRUCTION PURPOSES. \\`ma. J i• � r t c 000 \ 'y 'f 0. Z��5 :8y .683r9Z/— ✓°•ram 4�— .,.��.w,r.00ac i� 3.9910.00N ,W � •.•� :� 3yy' //' + n '� � 6o;JI xo / is j5ti �` ti^ '�' 1`I If� �/•� ;� �\ M h �/ :g: � a, ,.' � �50� 3.CLOGOON �• be' , !.rSO:u i t .>Ztf JZ'if .Z6Zf .CCB96, CN �+ m � r ✓ +��.. Y h yy9 V d{� _ 3 \ g 4: < fl OF x , , C r o �r, � L , ii,RZ'6>S M,1Z,i0.005�r ♦` ` 2 1 � � '�' � H AIL: SJ arY - ,' 01' • r V \ � nn n I41 .�f Q6L .;11.,r6C9i/Y ti , ic M „OQt0.G0 N t. !i J.9G'Sf_' .ecrr .tract' 1 !'� L. 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Op. .•we a _.._ � �r«�� u'°'p ,y e, }y m M VApA r 7°f] T007.. a r -Ii E_r f��IIj1�A �r,Y ..-: ° .�r u"R it a_t�w .�iv _...-��• 1 � Yf014 'L. �I D I i 7oa: i�� ,a: urm. ,a r 8'i4t S' tr17A,e13 A . .. . ..'. r ccr.r •� 7 170J it _�:a31Y0 5 20 y I WA i - �yy..,��y 1�gMy�j�► a - � sm20 R-4. 2l12X � x 2f 29 WK i 2%A t�y�`. 2' y j TM f z 2A 2EW_2rAo 21 21FA 5m 2,D err e® 2 REBSAG-10 WA we L7 erg ,reA R— EXHIBIT A page ;a • staiisi;eij zoning orainance CHAPTER 27.14 B-2 GENERAL BUSINESS Sections: 27.14.010 Intent 27.14.020 Permitted Uses 27.14.030 Uses Which May Be Permitted By Conditional Use Permit 27.14.040 Property Development Standards 27.14.010: Intent. A business district to provide areas for those retail sales and service functions and businesses whose operations are typically characterized by outdoor display, storage and/or said of merchandise, by major repair of motor vehicles, `and by outdoor commercial amusement and recreational activities. This district would also serve the general needs of the tourist and traveler. This district depends on the proximity to major streets and arterials. This district should be located in business corridors or in islands. 27.14.020: Permitted Uses. (1). Appliance distributors, wholesaletrepair. M. Athletic club. 0). Automobile parking, commercial or public. (4). Automobile sales. (5). Automobile rental agency. (6). Automobile repair garages, excluding body shops. (7). Automobile service station (see definition). (8). Bakery/dell, wholesale and retail, less than 1,500 square feet manufacturing area. (9). Barber and beauty services. (10). Bar, .tavern, cocktail. lounge, clubs and associated commercial enterprise. (11). Boat sales, new and used. (12). Building materials, storagetsale including lumber yards. M M. Bus passenger terminal buildings, transit terminals. (14). Car wash, automobile detailing shop. (15). catering establishments.' (16). Church/worship/parish/sunday school buildings. (17). Dairy bar/ice cream manufacturing, retail on premise. (18). Electrical sales and contracting companies. (19). Food processing/retail on premises -no killing or dressing of flesh or fowl. (20). rood store/supermarket, etc. - no slaughtering of flesh/fowl. (21). Food stores, retail/under 3,000 square feet. (22). Garden supplies, retail sales. (23). Glazier. (24). Heating, ventilating, air conditioning (HVAC)/sheet metal shop, sales/service. (25). Hotel, motel. (26). Janitor supplies/services/contracting. (27). Launderette/dry cleaning, customer self-service. (28). Laundries/dry cleaning plants. EXHIBIT C (29). Liquor store. (30). Locksmiths or gunsmiths. (31). Lube station. t321. Manufactured home sales lot (33). Massage parlor. (34). Motorcycle sales/repair. (35). Music education with related performance and limited sales. 06). Newspaper office. (37). Nursery, landscape materials. 38). Office, professlonai/govennmental. (39). Parks. (40). Pawn shops (no outside storage/display). (41). Plumbing/heating materials, retaiUservice only. (42). Plumbing shop and yard. (43). Post office - main distribution- center. (44). Post office - satellite or neighborhood. (45). Prepared food delivery facilities. (46). Printing/pub/reproCluction/blueprinting/photostating establishment (47). Produce stand. (48). Radiator repair. (49). Real estate sales offices. (50). Recreational area, commercial and non-commercial (see definition). (51). Rental service stores and yards. (52). Repair/service-office)household equipment (53). Restaurants. (54). Retail business (see definition). (55). Riding academy and stables. 56). RV sates. (57). Second hand stores (see definition). (58). Shoe repair. (59). Ski rental shop. (60). Small engine sales, service and repair (lawn mowers, saws). (61). Take and bake prepared food facility. (62). Taxidermist (63). Telecommunication companies and/or radio common carriers. (64). Theaters in permanent indoor structure. (65). Tire dealer, alignment center. (66). Trailer sales areas. (67). Travel agency. (68). Truck rentals, single axle, less than 20,100 pounds gvw. (69). Upholstery shop. (7O). Veterinary clinic, small animals. 27.14.030: Uses Which May Be Permitted By Conditional use Permit t1). Amusement park or zoo and similar out-of-doors activities. (2). Apartments, Accessory. (Amended ordinance No. 1195J (3). Assembly halls/coliseums/stadlumslconvention hall facilities. (4). Campground/RV Park. (5). Casino. (6). Community residential facilities for eight or fewer persons. (Ordinance No.1209) M. Drive-in theaters. (8). Electrical distribution station. (9). Fish sales stand, temporary. (10). Golf courses. Page yg • KaU517®fe A %Z"""g v1 ­ Qj'" (11). Golf driving range/putting course. (12). Hangars (aircraft) when abutting/contiguous to an airport (13). Heliports. (14). Hostel, youth. (15). Law enforcement1fire stations. (16), Libraries, museums, and similar cultural facilities. (17). Mobile restauranVvendor facilities. (18). -Quasi-public buildings, non-profit In character. (19). Railroad rights -of -way. t20). Recycling center. i21). Restaurants, as an incidental use. (22). Rifle range, indoor. (23). Schools, commercial (see definition). (24). Shelter, public or private. (25). Temporary building/structure. (26). Transmission towers and accessory facilities. (27). Water storage facilities. 27.14.040: Property Development Standards. (1). Minimum Lot Area: 7000 square feet (2). Minimum Lot Width (Fr): 70 (3). Minimum Yards (Fn: Front Yard - 20 Side Yard - 5 Rear Yard - 20 Side Comer -15 (Amended ordinance No. mom (4). Maximum Building Height (FT): 35 (5). Permitted Lot Coverage (%): N/A (6). Off -Street Parking: Refer to Sections 27.26 and 27.27 Cn. Maximum Fence Heights (Fn: Front - 0 Side - 6.5 Rear - 6.5 ORDINANCE NO. 1242 AN ORDINANCE APPROVING THE KALISPELL CITY AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN ANALYSIS FOR THE CITY OF KALISPELL, MONTANA AS AN URBAN RENEWAL PLAN; AUTHORIZING THE MANAGER TO IMPLEMENT THE PLAN WITH THE POWERS CONTAINED IN THE URBAN RENEWAL LAW, AND DECLARING AN EFFECTIVE DATE. WHEREAS, under the provisions of the Montana Urban Renewal Law, the City Council of the City of Kalispell, Montana, did adopt Resolution No. 4256 finding that 1) blighting conditions exist within the area of the Kalispell City Airport Neighborhood Plan, and 2) that rehabilitation, redevelopment or a combination thereof, within the area is necessary in the interest of public health, safety and morals or welfare of the residents of the City of Kalispell, and WHEREAS, the City Council of the City of Kalispell acting in its capacity as the Urban Renewal Agency has directed that an urban renewal plan for the blighted areas be developed in accordance with the Montana Urban Renewal Law; and WHEREAS, the City Council of the City of Kalispell, Montana (herein Agency) has caused to be made detailed studies of the land uses, ownership, building conditions, demographics, transportation and safety within the Neighborhood Plan area and determined that said factors contribute to blighted conditions under S 7-15-4206, MCA, and are detrimental and a menace to the safety, health and welfare of the inhabitants and users of the area, and WHEREAS, the Agency has been fully apprised and is aware of the factors and conditions, and WHEREAS, there has been prepared an Urban Renewal Plan for the project, known as the Kalispell City Airport/Athletic Complex Redevelopment Plan Analysis (hereinafter Analysis) which has been reviewed by the Airport Advisory Board, an official advisory group; and WHEREAS, in accordance with Title 7, Chapter 15, Part 42, Montana Code Annotated, the City/County Planning Board is the duly designated and acting official planning body for the City and has submitted to the Agency its input and recommendations with respect to the Analysis and has certified that the Analysis conforms to the general plan for the locality and the Agency has duly considered the input, recommendations and certification of the Planning Board, and 1 EXHIBIT D WHEREAS, the Analysis has been referred to the Agency for review and approval. The Analysis consists of textual matter inclusive of supporting material and maps and is attached hereto as Exhibit 'A" and by this reference made a part hereof, and WHEREAS, the Analysis for the project area requires, among other things: a. minimizing hazards to navigation, b. developing the airport in accordance -with an airport layout plan, C. increasing development opportunities on nearby properties, d. promoting compatible land use in and around the airport, e. establishing a funding mechanism for airport properties, and f. establishing a priority schedule for plan implementation. WHEREAS, the Agency is aware that a market exists in the area for commercial development consistent with the Analysis, and WHEREAS, the City will comply with Federal and State laws governing the relocation of person(s) displaced as result of implementation of the Analysis, and WHEREAS, the members of the Agency have general knowledge of the conditions prevailing in the project area and the availability of property for the relocation of families, businesses and recreational property that may be displaced by implementation of the Analysis, and have determined that a relocation program is both workable and feasible for the needs of the project area, and WHEREAS, the Agency is cognizant of the conditions that are endorsed in the undertaking and carrying out of the Analysis including those prohibiting discrimination under the Montana Human Rights Act, and WHEREAS, in accordance with the $ 7-15-4215, MCA, the Agency did hold a Public Hearing on June 17, 1996 after due and proper notice, both by mail and publication, of same. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. That the Kalispell City_ Airport/Athletic Complex Redevelopment Plan Analysis for the City of Kalispell, Montana contained in Exhibit '-A' hereof, having been duly reviewed F4 and considered, is hereby approved and the City Clerk of Council is hereby directed to file said copy of the Analysis with the minutes of this meeting and in the Ordinance Book. Said ordinance is to be posted as required by law and copies made available to the public upon request. SECTION II. That it is hereby found and determined that the project area of said Analysis is blighted and qualifies as an eligible project under the Montana Urban Renewal Law. SECTION III. That it is hereby found and determined that the objectives of the Analysis cannot be achieved except through more extensive rehabilitation of the project area. SECTION IV. That it is hereby found and determined that the Analysis for the project area conforms to the Kalispell City -County Master Plan or parts thereof adopted for the City of Kalispell - planning area. SECTION V. That it is hereby found and determined that a sound and adequate financial program exists in the Analysis for financing the projects contained therein. SECTION VI. That the redevelopment of the Analysis area is necessary for the proper development of the community. SECTION VII. That it is hereby found and determined that the Analysis for the area will afford maximum opportunities consistent with the sound needs of the locality as a whole for the renewal of the area by private enterprise. SECTION VIII. That it is hereby found and determined that the Analysis for the area gives due consideration to the providing for adequate .park and recreational areas and facilities as may be desirable for the neighborhood improvement with special consideration for the health, safety and welfare of children using _facilities within the vicinity of the Analysis area. 3 SECTION IX. That a workable and feasible plan exists therein for making available adequate housing for person(s) who may be displaced by the projects. SECTION X. That in order to implement and facilitate the effectuation of the Analysis, hereby approved, it is found and determined that certain official actions must be taken by the Agency with reference among other things to minimizing hazards to navigation, developing the airport in accordance with an airport layout plan, increasing private development on nearby properties, promoting compatible land uses in and around the airport, establishing funding mechanisms for airport operations, and establishing a priority schedule for plan implementation: a) Pledging its cooperation in carrying out the Analysis; b) Directing the various officials, departments, boards and agencies of the locality having administrative responsibility in the premises likewise to cooperate to such end and to exercise the respective functions and powers in a manner consistent with the Analysis; and c) Standing ready to consider and take appropriate action upon acceptable proposals and measures designated to effectuate the Analysis. SECTION XI. The City Council of the City of Kalispell, Montana does authorize the Manager to implement the Analysis with the powers set forth in Title 7, Chapter 15, Parts 42 & 43, MCA, and to seek financial assistance as it may become available from the Federal or State Government or such other sources as may be determined appropriate by the City Council. SECTION XII. This Ordinance will take effect from and after 30 days of its passage by the City Council. 4 FINALLY PASSED AND APPROV�FD BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL, THIS I" DAY OF�y_ 1996. Attest: Debbie G*f14C- city CleCouncil 5 Dougla D. Rauthe - Mayor DALEY BALLFIELD PHASE I SITE ASSESSMENT FOR THE CITY OF KALISPELL, PLANNING, ECONOMIC, AND COMMUNITY DEVELOPMENT DEPARTMENT BY TETRA TECH INC. October 1996 TABLE OF CONTENTS 1.0 Introduction 2.0 Methods 3.0 Site History and Description 4.0 Results 4.1 Record's Search 4.2 Site Reconnaissance 5.0 Conclusions 6.0 Recommendations 7.0 Disclaimer LIST OF FIGURES Figure 1 - Site Location Map 1 1 2 2 2 7 7 7 8 3 Figure 2 - State CERCLIS Sites Location Map 5 7. Flathead County Disaster and Emergency Services. Results of the Record's Search are discussed in Section 4.1. The site reconnaissance consisted of a walk over of Parcel q in which observations were made as to evidence or sources of hazardous wastes or petroleum products on site. Results of the site reconnaissance are discussed in Section 4.2. 3.0 SITE HISTORY AND DESCRIPTION Parcel 6 has always been an undeveloped parcel of land. It was originally sold to the City of Kalispell in 1928. The site is located on the west side of Highway 93 South, south of the Montana National Guard Station, east of the Kalispell airport in Kalispell, Montana (Figure 1). The property, covering 17 acres, consists of five ballfields, a restroom, and a parking lot. A 1937 Soil Conservation Service aerial photograph indicated this area was a hayfield. To the east, the property is bounded by Highway 93 South. To the east of Highway 93 South is a commercial building and a city park. To the south, the property is bounded by a state government building. To the west, the property is bounded by the Kalispell airport and to the west of airport is the Kalispell sewage treatment plant. To the north, the property is bounded by the Montana National Guard Station. North of the National Guard Station is the Kalispell Elks Club. 4.0 RESULTS 4.1 RECORD'S SEARCH As previously stated, a variety of federal, state and local records were reviewed, and individuals interviewed in relation to the site. Results of the record's search are: 1. Federal National Priorities List (NPLI Federal NPL sites are generally known as Superfund Sites. There are no Federal NPL sites in Kalispell. 2. State CERCLIS List State CERCLIS sites are similar to NPL sites. They have been defined as sites which contain hazardous wastes or materials and have either not been ranked for the NPL status 2 7tTetra Tech Inc. Helena, MT Project: Parcel 4 Date:10/96 Scale: Unknown Drawing: Location Map Figure Number: I File #: Kalis I r Site of Fi9Ure Page 3 Investigation or their ranking does not qualify for NPL status. There are ten State CERCLIS sites in Kalispell. Of the ten, only two sites are within one mile of the site (Figure 2). The two state sites are: 1. Kalispell Landfill- Willow Glen Road 2. Kalispell Landfill- Cemetery Road Investigations at these sites have indicated that contamination of ground water is low and does not pose significant threat to public health. The ground -water flow direction at the Cemetery Road Landfill is to the south southeast. Potential impacts to the subject property from the CERCLIS sites are therefore minimal. 3. State RCRA TSD Facilities List TSD Facilities are transport and disposal facilities which handle RCRA defined wastes. There are no RCRA TSD Facilities in Kalispell. 4, State RCRA Generators List While Kalispell has numerous RCRA waste generators, no RCRA waste generators adjoin or are located at the property. 5 Federal ERN's List The ERNS List is the Emergency Response Notification List which is recorded by the EPA. The list contains all reported spills and leaks in the United States since 1975. The list was reviewed for all reported incidents in Kalispell. Since 1982 ten spills or releases have been reported in the Kalispell area. None of the reports were for the property. The closest reported spills or releases were at the State CERCLIS sites which as previously mentioned, do not appear to pose a threat to the property. 6. State Landfill or Solid Waste Disposal List No licensed landfills exist within one half -mile of the site. Review of the Hazardous .19 W&CI 41,111a 29538 r-7 WILLOW GLEN LANDFILL 2909 U7 7 r.TT. e i. ''S . • \ • •'� `• .•' -`e (ice ` P-1 V. Ire % b A wa. (Kalilu SITE City Ikirrt V. rt ON 29 .i 32 20 CEMETERY LANDFILL sm Trailer rr— - Park W'Il ,CAI ` 1 ,V IL i 4L I a, Binsg­<w797 v\, R!d,)o. TtTetra Tech Inc. : Helena, MT LEGEND 1.--Kalisr)ell (--emetery Landfill Willow(- -lien Landf ill Project: Parcel '4 Date: 10/96 Scale _'-100u Drawing: CERC L15 SITES ) I (v A 1 01' 1 1 IAP Figure Number: I File *- Kalisp2 Waste Complaint Program file did show that an unlicensed dump site existed within one mile of the site. 7. Leaking UST's List Two sites with leaking UST's were identified from the state leaking UST list within one half mile of the property. The two sites are: City Service - 1645 Highway 93 South - Facility ID# 15-02014. On June 17, 1992 a Phase I Site Assessment was conducted at this site to determine the source of gasoline discovered in the storm sewer system. The source appeared to be from a surface spill. Ground -water at this site is contaminated, although it does not pose a threat to Parcel q The site owner/operator is currently required to analyze the ground -water two times a year. No remedial activity has taken place at the site. 2. Main Stop - 1319 South Main - Facility ID# 15-09820. The gasoline leak associated with this site was discovered on April 29, 1995. Approximately 4,000 gallons of unleaded plus gasoline leaked from an aboveground storage tank. The site is currently under going a Remedial Investigation. The leaking UST list which was reviewed has not been updated since May 1996. There may be additional leak sites that have been discovered in the mean time. Most tanks in the area would be located to the north of Parcel q along Highway 93 South and the business district. The investigation at City Service suggests that contamination north of the site flows crossgradient to Parcel q in a southwestern direction indicating that contamination from this area would not present a threat to the property. 8. Reeistered UST List The only registered UST adjoining the property is north at the Department of Military Affairs. One tank is presently registered at the site. One 1000 gallon gasoline tank. This tank was removed on November 16, 1991. 0 In addition to the above referenced lists, Tetra Tech also contacted the following: Flathead County Disaster and Emergency Services: No incident reports are on file with the county regarding Parcel 4 2. Joe Russell - Flathead County Health Department: The gasoline spill located near the City Service gasoline station in 1992 was the only incident that Mr. Russell had on record near Parcel q 4.2 SITE RECONNAISSANCE Tetra Tech personnel performed a site reconnaissance of the Property on October 8, 1996. The reconnaissance determined that the property is a recreational facility (Figure 1). The site has five ballfields and a restroom building. A road exists on the north edge of the property. This road accesses Highway 93 South and is an easement to the airport. The site reconnaissance did not reveal any items of concern. 5.0 CONCLUSIONS The site is an undeveloped property which consists of recreational ballfields. The site is located adjacent to mostly service oriented commercial businesses. A site reconnaissance found no items of concern. The record's review revealed a variety of State CERCLIS sites, RCRA generators, Leaking UST's and Registered UST's within a half mile radius of the Property. Of these sites, only Montana National Guard adjoins the Property. No environmental concerns have been detected at the site. As for the other sources of contamination, not adjoining the property, it appears that ground- water contamination at UST and CERCLIS sites is generally flowing cross gradient or away from the Parcel reducing any threat of impacts. In summary, it appears that: 1. Potential impacts to the site from off -site contaminant sources is minimal. 2. No on site contamination was identified. 6.0 RECOMMENDATIONS Based on the results of the Phase I Site Assessment, the following recommendation is proposed. The City of Kalispell may have their own recommendations based on internal policy. 1. Sell the property with a stipulation that the buyer will accept environmental liabilities relating to the site if they become apparent at a later date. 7 7.0 DISCLAIMER This report was compiled based partially on information supplied to Tetra Tech Inc. from outside sources and other information that is in the public domain. The conclusions and recommendations herein are based solely on the information Tetra Tech obtained in compiling the report. Documentation for the statements made in the report is on file at Tetra Tech's Helena, Montana office. Tetra Tech makes no warranty as to the accuracy of statements made by others that may be contained in the report, nor are any other warranties or guarantees, expressed or implied, included or intended by the report except that it has been prepared in accordance with the current generally accepted practices and standards consistent with the level of care and skill exercised under similar circumstances by other professional consultants or firms performing the same or similar services. Since the facts forming the basis for the report are subject to professional interpretation, differing conclusions could be reached. Tetra Tech does not assume responsibility for the discovery and elimination of hazards which could possibly cause accidents, injuries or damage. Compliance with submitted recommendations or suggestions does not assure elimination of hazards or the fulfillment of clients' obligations under local, state or federal laws or any modifications or changes to such laws. None of the work performed hereunder shall constitute or be represented as a legal opinion of any kind or nature, but shall be a representation of findings of fact from records examined. Prepared by: Reviewed by: �� rc N.