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3. Resolution 4769 - Kalispell Chamber of Commerce Sublease RequestCity of Kalispell Charles A. Harbau Office of City Attorney City Attorney 312 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 TO: FROM: SUBJECT: MEETING DATE: MEMORANDUM Mayor Pamela B. Kennedy and Kalispell City Council Charles Harball, City Attorney Chris Kukulski, City Manager Chamber of Commerce Sublease Tuesday, January 21, 2003 Tel 406.758.7708 Fax 406.758.7771 charball@kalispefl.com BACKGROUND: The Kalispell Area Chamber of Commerce is seeking approval from the City of Kalispell to assign a portion of their lease in the Depot Building. The language of the original lease with the Chamber dated July 1, 1981 and extended July 1, 2001 contains a clause that allows the Chamber to assign (sublet) a portion of the lease with the written consent of the City, which "will not be unreasonably withheld." The purpose and reason for the request is to concentrate resources, as much as possible, within the Depot Building to provide a single point of contact for existing businesses seeking certain assistance. Attached to this memo is a letter from Joe Unterriener, President of the Chamber, a Resolution of the Chamber and the CEDS for Flathead County, all of which clearly outlines the case for this request. RECOMMENDATION: Approve the sublease of the Depot Building within the terms of the current lease that meet the design and intent to create and centrally located business assistance center. FISCAL EFFECTS: None, given there are no longer any City offices within the Depot Building. Respectfully submitted, oy�� 0 n - k �2" Charles Harball, City Attorney Chris Kukulski, City Manager RESOLUTION NO. 4769 A RESOLUTION APPROVING THE REQUEST OF THE KALISPELL AREA CHAMBER OF COMMERCE TO SUBLET A PORTION OF THE DEPOT BUILDING WITHIN THE TERMS OF THE LEASE AGREEMENT. WHEREAS, The City of Kalispell owns the Depot Building located in Depot Park, Kalispell and entered into a lease agreement with the Kalispell Chamber of Commerce [hereinafter "the Chamber"] on July 1, 1981 and extended such agreement on July 1, 2001 to the date of June 30, 2011; and WHEREAS, The terms of the lease agreement permits the Chamber to sublease a portion of the building within the terns of the lease with the written approval of the City, which approval will not be unreasonably withheld; and WHEREAS, The Chamber is requesting approval from the City to sublease a portion of the Depot Building to business assistance entities in order to provide a single point of contact for existing businesses to access workforce training and development information, start-up and expansion financing information, economic and community data and research, and business plan assistance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The City Council of the City of Kalispell hereby gives approval to the Kalispell Area Chamber of Commerce to enter into a sublease, within the terms of its Depot Building Lease Agreement with the City, with those entities offering economic and business development services in order to provide a centrally located business assistance center at the Depot Building. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 21st DAY OF JANUARY, 2003. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk Depot Building sublease Resolution.doc 0 va'isr=" Area Chamber of Commerce RESOLUTION Request For Sub -lease Approval from the City of Kalispell Whereas, the Draft Kalispell Growth Policy proposes that civic leaders "work with business and industrial associations to promote and coordinate business and industry expansion in accordance with the growth policy". And, it further encourages leaders to "work with economic development organizations to further growth policy goals and policies and to encourage countywide coordination of their efforts", and; Whereas, the Flathead County Comprehensive Economic Development Strategy has set the goal to "develop a centrally located business assistance center where many resources, through both individual and coordinated efforts, provide conveniently located services that will attract, assist, and enable the maximum growth and success for our area businesses", and; Whereas, the lease agreement between the Kalispell Chamber of Commerce and the City of Kalispell permits the Chamber to sub -lease the Depot Building for uses: compatible with chamber of commerce functions and that such approval shall not be unreasonably withheld, and; Whereas, the Chamber has been designated as the economic development agency to represent the City under the Certified Communities program of the Montana Department of Commerce since 1986, and; Whereas, the Chamber has also been designated as the non-profit tourism promotion agency to represent the City for administration of Accommodation Tax funds since 1988, and; Whereas, the City has previously granted sub -lease approval in the Depot Building to the United Way and the Flathead Convention and Visitors Bureau; Therefore, the Board of Directors for the Kalispell Area Chamber of Commerce requests that the City grant sub -lease approval for the staff of related non-profit and governmental organizations such as the Montana Department of Commerce and the Flathead Workforce Center to occupy space on the second floor of the Depot Building. Unanimously approved by the Board of Directors on Decenr ber 17, 2002. H. terreiner, President 41 Area Chamber of Commerce IS Depot Park • Kalispell, MT 59901 (406) 758-2800 • Fax (406) 758-2805 • Email: chamber@digisys.nec • www.kalispelichamber.com Ja�apouagZ I3IF €� :OQ r s7aallUa�b� £• aaaammo33o.m9we43 u2dsilag 8 a `g 011 a�ae� saw ill o 1I a x 0— 0010 z © co G o© O ®O © O P e 02 N C S w i Rt @1@1B13° z° j1 C o 1 I I© 1 I_J J L_ 17 7 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) FLATHEAD COUNTY MONTANA YEAR 2002 BUSINESS ASSISTANCE Analysis of Local Conditions Business Assistance — Assistance provided to existing or start-up businesses, through information, technical assistance, networking and financing. Information resources are numerous but are decentralized, in some cases are under -funded, and in many cases are not being effectively publicized to best advantage. There is no business incubator or business information center. The business community is unaware of many of the available resources. Technical assistance resources such as legal, accounting, government procurement and human resources are fully developed and available. However, there appears to be a significant lack of affordable, effective marketing and economic research assistance. Networking, defined as advocacy and mentorship programs, exist but are not considered to be well known or well utilized. There is apparently no formal program currently available. Financing, in the conventional sense of commercial banking, credit unions, savings and loans, along with related governmental agency programs are numerous but are often approached by under -capitalized start-up businesses and are unable to provide financing. The venture capital / angel network resource communities are not well publicized or well utilized, and so are less available and less helpful to qualifying businesses. Overall Vision We envision a highly effective "business support network" where all related assistance organizations, through the co-ordination of energy and resources, provide Northwest Montana's new and existing businesses with maximum exposure to and valuable benefit from the available resources. Goals To accomplish this vision we suggest that the community consider adopting the following goals: V • Develop a centrally located business assistance center where many resources, through both individual and co -coordinated efforts, provide conveniently located services that will attract, assist and enable the maximum growth and success for our area businesses. • Research, develop and provide accurate, up-to-date, highly useful information on the sources of available technical marketing assistance. • Research, develop and provide accurate highly useful information on the sources of available start-up financing by venture capital or angel network groups. • Perform a comprehensive review and evaluation of existing mentorship programs and assist in the overall publicity and recruitment ofinentors and mentees. • Obtain formal declarations of financial and moral support from appropriate governmental and private entities, for the efforts of this business support network, in order to maximize the effectiveness of the existing and desired resources. 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