1. Resolution 4675 - Daley Field - Lot 1City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
The Honorable Mayor Kennedy and City Council
FROM: Susan Mover, Community Development Manager
BACKGROUND:
Daley Field was advertised for redevelopment in July 1997 through a formal Request For Proposal (the
"July 1997 RFP") procedure. The RFP contained the entire site of 15.6 acres (681,758 sq. ft.). Rosauers
responded to the proposal to purchase 525 acres (228,711 sq. ft.) of what became Lot 2, beginning at the
centerline of the new Third Avenue East extensions ("new Private Lane") onto the property and
continuing south until adequate site area was achieved. Rosauers offered a minimum price of $743,311
for the 5.25 acres or $3.25 per sq. ft. for each additional square foot as determined by survey of the final
site configuration.
As a result of the site acquired by Rosauers, Lot 1 was replatted to contain 2.98 acres (129,808 sq. ft.) and
Lot 3 to contain 7,414 acres (303,047 sq. ft.). City Council instructed the City Manager and the
Community Development Department to prepare and advertise Requests for Proposals on Lot 1 in April
1999, June 2000, and again in October 2001 with the intent of generate revenue to be utilized for eligible
activities within this Urban Renewal District. Lot 3 was advertised in October 2001.
All of the RFP packets requested the same submittal criteria and established ranking criteria as had been
done in the July 1997 RFP. The City of Kalispell received two responses to the October 2001 RFP and
neither response contained the submittals as requested in the RFP. One response was from Northwest
Investments Partners, Inc. dba Peak Development and the other response was from Doug Denmark of
Re/Max Realty on behalf of Murcon Development Inc. Again, staff was not able to evaluate the proposals
based on the established ranking criteria. The response to Lot 1 was declined based on the same premises
as identified in Peak Development's offer for Lot 3.
Mae Nan Ellingson of Dorsey & Whitney, Inc. advised city staff that, in their opinion, the city had made
every good faith effort to dispose of Lot 1 within the Request For Proposal process and now could
advertise the site through an "Invitation To Bid" process. This process contained the criteria for:
1. Cash at closing
2. Closing to take place within 90 days of award of Bid
3. Construction to be completed by 2004
The two offering documents meet the first two criteria; however, neither offer stated they would be in a
position to guarantee completion by 2004. Upon review by Charles Harball, Acting City Attorney, staff
has been advised that Council is in a position to determine award of bid based upon the first two criteria.
Whitefish Credit Union is offering $3.54 per square foot for a total purchase price of $459,520.32 and
Peak Development is offering $2.76 per square foot for a total purchase of $358,270.00. Whitefish Credit
Union's offer is $101,250.32 higher than the Peak Development offer and 3N per sq. ft. higher than the
Rosauers offer.
RECOMMENDATION:
The City Council award the sale of Lot 1 to Whitefish Credit Union per Resolution No.467.$;
FISCAL EFFECT:
ALTERNATIVES:
Respectfully submitted,
$459,520.32 will be received into the Airport/Athletic Complex Urban Renewal
District's funding for use on eligible activities by the end of March 2002.
As determined by council.
��,e.�
Susan Moyer, Director
Community Development Department
Date prepared: January 3, 2002
RESOLUTION NO. 4675
A RESOLUTION AUTHORIZING THE SALE OF A PORTION OF THE NORTHWEST
QUARTER OF SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, FLATHEAD
COUNTY, MONTANA KNOWN AS LOT 1, DALEY FIELD SUBDIVISION, TO
WHITEFISH CREDIT UNION, A MONTANA CORPORATION, AND AUTHORIZING THE
CITY MANAGER TO ENTER INTO A PURCHASE AND SALE AGREEMENT WITH
WHITEFISH CREDIT UNION.
WHEREAS, the City of Kalispell, a municipal corporation, owns
certain real property described in Exhibit "A", attached
hereto and thereby made a part hereof, and
WHEREAS, by Ordinance No. 1242 the City Council created the
Kalispell City Airport/Athletic Complex Redevelopment
Plan and approved, as an urban renewal project, the sale
of said property to a developer and further authorized
the City to enter into a Development Agreement with a
developer upon terms and conditions consistent with said
Ordinance, and
WHEREAS, in April, 1999, the City Council authorized the City
Manager to offer said property for sale and redevelopment
in accordance with the Plan, and
WHEREAS, Whitefish Credit Union submitted a proposal for the
purchase of said property and redevelopment of said
property for purposes consistent with Ordinance No. 1242,
and
WHEREAS, the City and Whitefish Credit Union desire to enter into
a Purchase and Sale Agreement consistent with the
proposal submitted by Whitefish Credit Union, and
WHEREAS, the City Council desires to sell said property to
Whitefish Credit Union for redevelopment as specified in
the Purchase and Sale Agreement, and
WHEREAS, said property is not held in trust for a specific purpose
and an election is not necessary to affect its sale, and
WHEREAS, the Purchase and Sale Agreement shall comply in all
respects with Ordinance No. 1242 and said sale will be in
the best interest of the City of Kalispell and its
inhabitants.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION I. That the City Manager is hereby authorized to
enter into negotiations with Whitefish Credit
Union and reduce to writing a Purchase and
Sale Agreement consistent with the Airport/
Athletic Complex Redevelopment Plan, the Daley
Field Offering Document, and the Redevelopment
Proposal of Whitefish Credit Union.
SECTION II. That upon review and approval of the Purchase
and Sale Agreement by the City Council, the
Mayor and City Clerk are hereby authorized to
execute all legal documents necessary to
transfer, by Grant Deed, all the City's right,
title and interest in the property described
as a tract of land in the Northwest Quarter,
Section 20, Township 28 North, Range 21 West,
Flathead County, Montana known as Lot 1, Daley
Field Subdivision, to Whitefish Credit Union,
said sale being contingent on receipt of the
sum of not less than $459,520.32 less any
amounts previously received.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 7TH DAY OF JANUARY, 2002.
Pamela B. Kennedy
Mayor
Attest:
Theresa White
City Clerk
EXHIBIT "A"
The following described land in the City of Kalispell,
Montana, more particularly described as follows:
Lot 1, Daley Field Subdivision, Northwest Quarter,
Section 20, Township 28 North, Range 21 West,
P.M.M., Flathead County, Montana
according to the plat on file in the Clerk and Recorder's
Office, Flathead County, Montana.