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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.