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12. Resolution 4732 - Montana Motor Sports40 11 City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 TO: Mayor Pamela B. Kennedy and Kalispell City Council FROM: Susan Moyer, Community Development Director Chris A. Kukulski, City Manager SUBJECT: Montana Motor Sports — Potential Parking Lot Replacement MEETING DATE: July 15, 2002 BACKGROUND: Hampstead Partners, Inc. purchased the old Plaza West Parking Lot from the City of Kalispell as a construction site for the new 40-units of elderly housing. In order to meet the setback, parking and other site requirements, Hampstead Partners found it necessary to acquire an additional 11,452.4 square feet. This was accomplished through the purchase of the Montana Motor Sports site, which lies immediately adjacent to the senior housing site. The partnership secured a $340,000 TIF loan from the City to acquire the Montana Motor Sports site. Hampstead Partners had both the Plaza West and Montana Motor sites surveyed and a new plat was filed that incorporated the additional square footage needed for the senior housing project and left the Montana Motor Sports building redefined with a smaller square footage. Additionally, under the terms of the Tax Credit Financing Program with Montana Board of Housing, Hampstead Partners has given the City of Kalispell a permanent easement on the Montana Motor Sport site of 825 sq. ft. of "mini -park" area on the corner of Second Avenue West and Second Street West. The value of this amenity is $13,670. The Plaza West parking lot has historically operated at near capacity. At the time the Plaza West Parking lot was being considered for sale, city staff assured the Parking Commission that the 55 spaces that would be lost as a result of the sale would be replaced as near as possible through the development of the old Keno Inn site. It has been determined, however, that the Keno Inn site will only provide 25 parking spaces of which 4 are given in a permanent easement for new commercial/residential development to the seller. The most viable option to create replacement parking would be for the City to purchase the re - platted Montana Motor Sports building from Hampstead Partners, demolish the structures and construct approximately 28 parking spaces. In discussions with Hampstead Partners, the partnership has agreed it would be willing to sell the Montana Motor Sports site (8,977.8 sq .ft.) for $148,762, which equates to the same dollar per square foot price that they originally paid. Staff is recommending that City Council approve Resolution No. 4732 to the purchase price of $148,762 which would be deducted from the repayment of the $358,052 remaining on the $360400 loan to Hampstead Partners, Inc. The acquisition and demolition for this site accomplishes two Urban Renewal goals: • The elimination of blight and blighting factors. • The replacement of lost parking spaces and revenues for the Parking Commission. FISCAL EFFECTS: After deducting the $148,762 acquisition Montana Motor Sports site, the City will Hampstead Partners from their retired debt. ALTERNATIVES: As suggested by council. S san Moyer, Community Development irector Memo Prepared: July 3, 2002 cost for the remaining 8,977.8 square feet of the be receiving $210,473 in Program Income from CamJ-X"- Chris A. Kukulski, City Manager RESOLUTION NO. 4732 A RESOLUTION RELATING TO THE ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE DOWNTOWN URBAN RENEWAL AREA, DESCRIBED IN EXHIBIT "A" FROM HAMPSTEAD PARTNERS, INC. AND IDENTIFYING THE INTEREST TO BE ACQUIRED. WHEREAS, the City of Kalispell, by Ordinance No. 1065 passed on November 14, 1985, designated the acquiring and construction of off street parking facilities as a "Project" to be pursued within the Downtown Urban Renewal Area, and WHEREAS, on February 21, 2001, Hampstead Partners, Inc. purchased the old Plaza West parking lot site for the purpose of constructing approximately 40 low income, senior apartments on the site, and WHEREAS, Hampstead Partners, Inc. also purchased the Montana Motor Sports site for needed setback, parking and other site requirements for the project, and WHEREAS, the Kalispell Parking Commission has a deficiency of 28 parking spaces pursuant to a previous understanding with the City, which can be recaptured by using that portion of the Montana Motor Sports property not being used by Hampstead Partners, and WHEREAS, Hampstead Partners has offered to sell the remaining Montana Motor Sports property back to the City at the same price per square foot it originally paid ($148,762), and WHEREAS, the purchase price should be deducted from the repayment of $358,052 remaining on the original $360,400 loan to Hampstead Partners, Inc. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. That the City repurchase the remaining Montana Motor Sports property from Hampstead Partners, Inc. for the amount of One Hundred Forty-eight Thousand Seven Hundred Sixty-two Dollars ($148,762) to replace parking spaces. SECTION II. That the City Manager is authorized and directed to purchase from Hampstead Partners, Inc. that certain real property described in Exhibit "A" for the sum of One Hundred Forty- eight Thousand, Seven Hundred Sixty-two Dollars ($148,762), said amount to be deducted from the original loan amount to Hampstead Partners of $306,400. SECTION III. That the City Attorney is authorized and directed to prepare any documents necessary to effect this Resolution and the City Manager is authorized and directed to accept and properly record on behalf of the City of Kalispell the deed to said property. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 15TH DAY OF JULY, 2002. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk EXHIBIT A LEGAL DESCRIPTION Lots A and B of Amended Subdivision Plat of Lots 13 and 14 of Block 47 of KALISPELL, MONTANA, according to the map or plat thereof on file and of record in the office of the Clerk and Recorder of Flathead County, Montana EXCEPTING A PORTION DESCRIBED AS FOLLOWS: Starting at the southwest corner of Lot A of Amended Subdivision Plat of Lots 13 and 14 of Block 47 of KALISPELL, MONTANA, and proceeding in a northerly direction along the westerly line of said Lot A for a distance of 25 feet, then proceeding in an easterly direction on a line parallel to the southerly line of said Lot A for a distance of 33 feet, then proceeding in a southerly direction on a line parallel to the westerly line of said Lot A for a distance of 25 feet, then proceeding in a westerly direction along the southerly line of said Lot A for a distance of 33 feet to the point of beginning.