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1. Ordinance 1380 - Mountain View Plaza PUD - 2nd ReadingCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: Honorable Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT: 2nfl Reading of Ordinance 13 80, Mountain View PUD Agreement MEETING DATE: April 2, 2001 BACK GROUND: During the March 19, City Council meeting the Council unanimously approved the first reading of Ordinance 13 80. There are two items that have been changed in the PUD agreement per the discussion that took place during the last meeting. Both are minor in nature and have been amended to further clarify intent. The first change is on 1.15 Infrastructure page 3 line 6. The words "will be dedicated to the City of Kalispell and" have been removed. Because there are no roads being dedicated to the City we did not want this to confuse the fact that all infrastructure including streets must be built to the City's urban design and construction standard weather the city will ultimately own them or not. The second change was strictly a typo that is in Section3.06 Site Grading B line 2. The removal of"and Pack" was a carry over from the original PUD and should have been deleted. Crosswell Development is responsible for all obligations associated with Site Grading, not Pack. Outside of these two changes the PUD Agreement has not changed from the first reading. On February 20, 2001 the City Council directed the City Manager and City Attorney to draft a Planned Unit Development Agreement (PUD) with Crosswell Development Corporation based on 31 Conditions of Approval. The 31 conditions placed on the Mountain View Plaza development came as a result of a January 9, 2001, Kalispell City -County Planning Board public hearing and input by the City Council and administration. As you may recall, the staff was instructed to ensure future retail expansion could be done within the City of Kalispell with attention to quality infrastructure and aesthetics. Sections 1.15, 3.04, 3.05, 3.06 and 3.07 of the PUD ensure that the infrastructure necessary to service the development meets all City of Kalispell design and construction standards. Sections 2.01 C and 2.01 F secure, through bonds, that infrastructure and improvements necessary for the project will be completed, at the developer's cost, no later than May 5, 2005. The PUD Agreement also ensures quality landscaping, building design and construction materials that are based on a "lodge/chalet" design. Page I of 2 Based on taxable values received by the Department of Revenue on similar stores in Missoula and in our valley, I am estimating the taxable value, at build out, to be $685,000 (Home Depot $220,000; Target $175,000; Grocery Store $100,000 and five smaller pads of Barnes & Noble, Best Buy, Applebees etc. $190,000). Remember that this build out is unlikely to take place immediately. Based on this information, I am estimating that in the first year the development will generate $25,135 and at build out it should generate $78,261 ($685,000 x 114.25 mills). The Mountain View project will further secure Kalispell's place as the valley's business and retail center. We should not forget that a substantial amount of money is removed from this valley by those who choose to drive to Spokane and Missoula in order to shop in some of these same stores. Also remember that we entered into this process with the belief that the retailers included in this development were likely to be approved somewhere within our valley (most likely outside ofthe City in Flathead County). This assumption is amplified by the fact that K-Mart, Wal-Mart, Shopko and Costco have all been allowed to develop outside of Kalispell. It is true that the net effect on jobs and tax revenue will be less than what is developed specifically at Mountain View. There will be a transfer of some jobs and loss in taxable value from other areas within the valley. However, I do believe that there will be an overall net increase of both tax revenue and jobs. It should also be noted that Plum Creek and Jore Corporation, two major employers in our region, are major suppliers of products to Home Depot. I encourage the City Council to approve Ordinance 1380. Once approved, the staff will work hard to ensure the success of the development while making sure that the PUD agreement is strictly adhered to. RECOMMENDATION: The City Council approve the second reading of Ordinance 1380, which is Planned Unit Development Agreement between the City of Kalispell and Crosswell Development LLC. FISCAL EFFECTS: Based on information given by the Department of Revenue I estimate Kalispell's property tax impact not including assessments to be $25,000 in year one and $78,000 at build out. ALTERNATIVES: As suggested by the Council. Respectfully submitted ( '" Chris A. Kukulski City Manager Report compiled March 28, 2001 Page 2 of 2 NO. 1380 AN ORDINANCE APPROVING A PLANNED UNIT DEVELOPMENT ON CERTAIN REAL PROPERTY OWNED BY PACK AND CO., REPEALING ORDINANCE NO. 1324, AND DECLARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. That the Planned Unit Development proposed by CROSSWELL DEVELOPMENT LLC upon the real property described in Exhibit "A", attached hereto, incorporated herein, and thereby made a part hereof, is hereby approved, subject to: A) Development Agreement, dated 1 2001, between CROSSWELL DEVELOPMENT LLC, PACK AND COMPANY, and the CITY OF KALISPELL, Exhibit "B", attached hereto, incorporated herein and thereby made a part hereof. SECTION II. Ordinance No. 1324 ("Domesite") is hereby repealed. SECTION III. This Ordinance shall take effect from and after 30 days of its passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS 2ND DAY OF APRIL, 2001. Wm. E. Boharski Mayor ATTEST: Theresa White City Clerk V:\attsect\wp\pud\crosswell.wpd 1 PLANNED UNIT DEVELOPMENT AGREEMENT FOR MOUNTAIN VIEW PLAZA PARTIES: EFFECTIVE: FINAL Agr.wpd CROSSWELL DEVELOPMENT LLC PACK AND COMPANY CITY OF KALISPELL, MONTANA TABLE OF CONTENTS PARTIES AND PURPOSE . . . . . . . . . . . . . . . . . . . . . . 1 I. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . 2 1.01 Agreement . . . . . . . . . . . . . . . . . . . . . . 2 1.02 Building Department . . . . . . . . . . . . . . . . . 2 1.03 City . . . . . . . . . . . . . . . . . . . . . . . . 2 1.04 City Council . . . . . . . . . . . . . . . . . . . . 2 1.05 Developer . . . . . . . . . . . . . . . . . . . . . . 2 1.06 Director of Public Works . . . . . . . . . . . . . . 2 1.07 Easement (s) . . . . . . . . . . . . . . . . . . . . . 2 1.08 Master Site Plan . . . . . . . . . . . . . . . . . . 2 1.09 Area "A„ . . . . . . . . . . . . . . . . . . . . . . 2 1.10 Area "B. . . . . . . . . . . . . . . . . . . . . . . 2 1.11 Phase . . . . . . . . . . . . . . . . . . . . . . . . 2 1.12 Proposed Buildings . . . . . . . . . . . . . . . . . 2 1.13 Subject Property or Subject Area . . . . . . . . . . 2 1.14 Substantial Completion . . . . . . . . . . . . . . . 3 1.15 Infrastructure . . . . . . . . . . . . . . . . . . . 3 II. GENERAL DEVELOPMENT AND USE OF THE SUBJECT PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . 3 2.01 Development Overview . . . . . . . . . . . . . . . . 3 2.02 Hazardous Substances . . . . . . . . . . . . . . . . 6 2.03 Uses . . . . . . . . . . . . . . . . . . . . . . . . 8 2.04 Ownership . . . . . . . . . . . . . . . . . . . . 9 2.05 Relationship to Zoning Ordinance . . . . . . . . . . 9 2.06 Effectiveness . . . . . . . . . . . . . . . . . . . . 9 2.07 Certification Procedure . . . . . . . . . . . . . . . 9 III. SITE CONDITIONS . . . . . . . . . . . . . . . . . . . . 10 3.01 Development . . . . . . . . . . . . . . . . . . . . 10 3.02 Access . . . . . . . . . . . . . . . . . . . . . . 10 3.03 Private Internal Roadways and Sidewalks . . . . . . 11 3.04 Sewer and Water . . . . . . . . . . . . . . . . . . 11 3.05 Storm Water . . . . . . . . . . . . . . . . . . . . 13 3.06 Site Grading . . . . . . . . . . . . . . . . . . . 13 3.07 Fire Suppression . . . . . . . . . . . . . . . . . 14 3.08 Landscaping . . . . . . . . . . . . . . . . . . . . 14 3.09 Off -site Paths . . . . . . . . . . . . . . . . . . 15 3.10 Lighting . . . . . . . . . . . . . . . . . . . . . 15 3.11 Signage . . . . . . . . . . . . . . . . . . . . . . 15 IV. CITY SEWER/WATER CONNECTION FEES . . . . . . . . . . . . 16 4.01 Connection Fee Schedule . . . . . . . . . . . . . . 16 FINAL Agr.wpd V. AMENDMENT OR MODIFICATIONS OF AGREEMENT . 5.01 Amendment or Modification Procedures VI. MISCELLANEOUS . . . 6.01 Severability 6.02 Recordation . 6.03 Entire Agreement 6.04 Integration . . 6.05 Binding Effect 6.06 Substitution of FINAL Agr.wpd Primacy . . . Parties . . . . . HH . . . . . . . 19 . . . . . . . . . 19 . . . . . . . . . 19 . . . . . . . . 20 . . . . . . . . 20 . . . . . . . . 20 . . . . . . . . 21 PLANNED UNIT DEVELOPMENT AGREEMENT PARTIES AND PURPOSE: This Agreement made and entered into this day of 2001 is by and between Crosswell Development LLC, a I with its office and principal place of business located at , hereinafter CROSSWELL DEVELOPMENT LLC; Pack and Company, with its office and principal place of business at 2355 Highway 93 North, Kalispell, Montana, hereinafter PACK; and the City of Kalispell, a municipal corporation, with its office and principal place of business located at 312 1st Avenue East, Kalispell, Montana 59901, hereinafter CITY: W I T N E S S E T H: WHEREAS, Crosswell Development LLC is the contract purchaser and developer of certain real property located in Flathead County, Montana, which is further described in Exhibit "A" attached hereto and hereby made a part hereof, and which hereinafter is referred to as the "Subject Property"; and, WHEREAS, The Subject Property has previously been annexed into the CITY by Resolution Nos. 4476 and 4477; and, WHEREAS, (i) Crosswell Development LLC and PACK desire to have the Subject Property rezoned from the prior DOMESITE PUD to Mountain View Plaza, a Commercial (B-2) Planned Unit Development (PUD), mapped with certain new streets, building locations and accesses from U.S. Highway #93 and West Reserve Drive; (ii) Crosswell Development LLC and PACK, have filed a PUD application which contains (a) Zone Change application, and (b) PUD Narrative with Exhibits; and, WHEREAS, In order to allow the PUD, assure the installation of Infrastructure within the "Subject Property," permit connections to the CITY utility systems, and prescribe the permitted uses within the requested zoning areas, the parties hereto determine it is to be in their best interests to enter into this Planned Unit Development Agreement. FINAL Agr.wpd 1 I. DEFINITIONS 1.01 Agreement shall mean this Planned Unit Development Agreement between Crosswell Development LLC, PACK, and CITY. 1.02 Building Department shall mean the Building Department of the City of Kalispell. 1.03 CITY shall mean the City of Kalispell, Montana. 1.04 City Council shall mean the City Council of the City of Kalispell, Montana. 1.05 Developer shall mean Crosswell Development LLC. 1.06 Director of Public Works shall mean the Director of Public Works of the City of Kalispell, Montana. 1.07 Easement(s) means the Easement(s) described in §3.04 of this Agreement. 1.08 Master Site Plan means the drawing_constituting the_site plan approved for the development of the Subject Property annexed hereto as Exhibit "C". The actual building location and building sizes may vary but the buildings will be located within the general areas as shown on the Master Site Plan. 1.09 Area "A" means that portion of the Subject Property lying North of the Southerly line of the Main Entrance Road on U.S. Highway #93 North, as shown on the Master Site Plan. 1.10 Area "B" means that portion of the Subject Property lying South of the Southerly line of the Main Entrance Road on U.S. Highway #93 North, as shown on the Master Site Plan. 1.11 Phase means a stage of development within a portion of the Subject Property designated in the Master Site Plan. 1.12 Proposed Buildings means the buildings proposed to be built within the "pads" as shown on the Master Site Plan, contemplated to be built in phases. 1.13 Subject Property or Subject Area means the real property described in Exhibit "A" annexed hereto and made a part hereof. FINAL Agr.wpd `a d 1.14 Substantial Completion shall mean that substantially all of the work to be performed in the development shall have been performed and the Infrastructure constructed in each Phase are usable for their intended purposes, as certified by the Director of Public Works and the Building Department, which certification shall not be unreasonably withheld or delayed. 1.15 Infrastructure means all water, sewer and storm drainage systems that will be dedicated to the public and have been installed in accordance with the Montana Public Works Standard Specifications and the City of Kalispell Standards for Design and Construction. In addition, Infrastructure shall include roads that are designed and constructed in accordance with the Montana Public Works Standard Specifications and the City of Kalispell Standards for Design and Construction. Said Infrastructure shall consist of various public utilities and dedicated streets. Costs for said infrastructure shall be shown on Engineer's Estimate, Infrastructure, Crosswell Development LLC PUD, Hwy 93 North, prepared by Thomas, Dean and Hoskins Engineering, to be attached hereto as Exhibit "D" after approval by the CITY. Notwithstanding any of the foregoing, excluded from these terms are: building construction; parking lot paving; final landscaping in and around the buildings and parking lot (s); lighting; signage; and the service lines to each building. II. GENERAL DEVELOPMENT AND USE OF THE SUBJECT PROPERTY 2.01 Development Overview (A) Subject to the other provisions of this Agreement, any development within or use of the Subject Property occurring after the effective date of this Agreement shall substantially conform to and comply with the provisions of the PUD Application of Crosswell Development LLC, as amended and approved by the FRDO Staff Report #KPUD 00-1 and the City -County Planning Board meeting on January 9, 2001 as amended by the conditions of approval of the PUD as passed by the Kalispell City Council on February 20, 2001, and this Agreement with the documents and drawings annexed hereto. FINAL Agr.wpd 3 (B) Crosswell Development LLC represents, and it is agreed between the parties, that the development of the Subject Property will include the following: (1) Area A when —completed, will include (i) ground preparation and site leveling of Area "A" of the Subject Property, (ii) construction, installation and extension of sewer and water mains to the Subject Property, (iii) construction, installation and extension of sewer and water mains, and storm sewer utilities within Area "A", (iv) final site preparation, streets, installation of necessary parking lots, landscaping, construction of the building improvements and all other improvements shown on the Master Site Plan in Area "A". (2) Area B when completed, will include (i) ground preparation and site leveling of Area "B" of the Subject Property, (ii) construction, installation and extension of sewer and water mains, and storm sewer utilities within Area "B", (iii) final site preparation, streets, installation of necessary parking lots, landscaping, construction of the building improvements and all other improvements shown on the Master Site Plan in Area "B". (3) Nothing is to be construed by the foregoing as to require completion of one Area prior to engaging in work in the other Area nor should be construed as requiring the completion of an Area simply because of the construction of one of the buildings within that Area, except as provided in Subsection (F), below. (C) Notwithstanding paragraph 2.01(B) above, it is anticipated that site preparation and ground leveling of areas currently occupied by batch plant facilities will be delayed during the construction phases described above, for a term, but, it is agreed that removal of the NUPAC asphalt and concrete batch plants, office, associated equipment, maintenance sheds, warehouses and all other related structures will be completed prior to the issuance of a building permit for any structure in any portion of Area "B", however, in any case, prior to May 5, 2005. It is agreed all facilities on the Montana FINAL Agr.wpd 0 Department of Transportation site will be removed prior to the issuance of the first building permit. Should the fee owner of the area or areas stated above be a signatory hereto or their successor, and should they refuse to vacate the premises as stated herein, CITY may bring a legal action to remove them and the improvements to be removed and CITY shall be entitled to attorney fees and all expenses for such action as part of the judgement. (D) Crosswell Development LLC represents, and it is agreed between the parties, that three large buildings proposed for the eastern portion of the site shall not exceed 38 feet in height, with an additional seven foot allowance for the screening of roof mounted equipment and as an architectural facade. (E) The east face of the large buildings shall not be used for advertising, display of corporate logo or colors and shall be treated with the approved list of building materials and with the approved colors, Exhibit "E". (F) Prior to issuance of any building or construction permit, Crosswell Development LLC shall furnish security for the Infrastructure described in § 1.15, supra. Such security shall consist of, at the sole option of Crosswell Development LLC, performance bond(s) issued by a surety company licensed to do business in Montana, irrevocable letter(s) of credit issued by a bank licensed to do business in Montana, or such other security as shall be reasonably acceptable to the CITY, however real property shall not be accepted as security. Such security shall be for the benefit of and enforceable and collectible by the CITY, acting through the City Manager, and shall be in an initial face amount equal to 125% of the direct estimated cost of the work so secured, as certified by Crosswell Development LLC's licensed professional engineer and the CITY's Director of Public Works. The face amount of the security shall be reduced by Crosswell Development LLC from time to time so as to reduce the amount of security to 125% of the remaining Infrastructure after deducting 125% of the cost of the work completed as determined for the creation of the security and as certified by Crosswell Development LLC's licensed professional engineer and approved by the CITY's Director of Public FINAL Agr.wpd 5 t Works. Determination of the amount of the reduction shall be made within 30 days of receipt by the Public Works Director of said certification. Crosswell Development LLC may request final release of the performance bond upon filing with the Building Department of a Notice of Completion, which will then be reviewed by CITY for final approval. 1) The Infrastructure under § 1.15 shall be substantially completed on or before May 5, 2005. If said Infrastructure is not completed within the time allowed, the Council shall redesignate the undeveloped portion of the Subject Property in accordance with the Kalispell Zoning Ordinance, and shall be entitled to demand and receive within 10 days of the written demand on the party offering the security, the remaining amount of security for Infrastructure under this Agreement. 2) Said Security shall be in effect until at least December 5, 2005. (G) Covenants: Draft Covenants are attached as Exhibit "F". Prior to any subdivision approval or construction of any building, Final Covenants will be completed. These Covenants must be approved by CITY, but CITY may only seek revision of and review the Covenants so as to cause compliance with the conditions of approval of the PUD and not a general review of the Covenants. 2.02 Hazardous Substances Crosswell Development LLC and PACK acknowledge the existence of Phase I and Phase II Environmental Site Assessments, NUPAC Gravel Pit Property, 2355 U.S. Highway 93 North, Kalispell, Montana prepared by NTL Engineering and Geoscience, Inc., Great Falls, Montana, issued August 27, 1999. Said report establishes the existence of diesel fuel contamination in the soil near the underground storage tanks, partially buried above ground storage tanks and other hydrocarbon contaminants. CITY has received these Assessments. (A) Prior to the commencement of construction of Infrastructure within the area depicted as the remediation area on Exhibit "G", attached, and prior to FINAL Agr.wpd 2 N the issuance of a building permit for any building in Area B, Crosswell Development LLC and PACK will submit evidence from the Montana Department of Environmental Quality demonstrating that the Subject Property is free of contamination. 1) In furtherance of the foregoing, PACK and Crosswell Development LLC disclose the following from their Contract to Purchase and Sell: That the closing date for the acquisition of the Subject Property is to occur within 30 days of the execution of this Agreement. With respect to the property which is described as Parcel 1 and Parcel 2, on Exhibit "A", PACK will provide to Crosswell Development LLC a performance bond in the amount of one hundred twenty-five percent (125%) of the estimated cost of remediation to ensure that the remedial environmental cleanup is completed within 60 days of the vacating of the tract by PACK or NUPAC with the understanding that should appropriate environmental authorities require additional time for inspecting and approving the remediation, an additional 120 days may be allowed for completion of the inspection, approvals and any additional remediation. Crosswell Development LLC will, upon request, assign its rights under this bond to CITY. 2) In furtherance of the foregoing, PACK and Crosswell Development LLC disclose the following from their Contract to Purchase and Sell: That with respect to Parcel 3 on Exhibit "A", PACK and the Montana Department of Transportation have determined that should remediation be necessary, the Montana Department of Transportation shall be responsible for completing the same within time frames as set forth in Subsection A, above. B) Should PACK fail to provide the bond as stated above, and should Crosswell Development LLC determine that the costs for remedial action are such that it would make the development of this project not economically feasible, it shall notify CITY in writing and the zoning provided herein and the terms of this agreement shall be terminated. FINAL Agr.wpd 7 2.03 Uses (A) The uses allowed within the PUD shall be those uses generally allowed under the B-2 zoning pursuant to the Kalispell City Zoning Regulations except that casinos, as defined by the Kalispell City Zoning Regulations as they now exist or are later amended, and those other uses which require areas for display of large merchandise such as new and used automobile sales, manufactured home sales, recreational vehicle sales and alike are prohibited. It is understood, however, that this prohibition does not preclude incidental activities in events associated with other authorized uses occurring upon the site. (B) Crosswell Development LLC agrees that building design and construction upon the Subject Property shall conform to the relevant Building Department regulations governing commercial construction. (C) Crosswell Development LLC agrees that the development shall be comprised of buildings with a consistent architectural theme, lodge or chalet, as initially determined by Crosswell Development LLC and similar to that shown on the exhibit to the proposed covenants, said covenants being Exhibit "F", attached hereto. A list of materials and exterior building treatments is attached hereto as Exhibit "E", which list shall be an exclusive list of materials and exterior building treatments to be used within the development. This list shall be included in the Covenants to be filed upon the development. (D) Crosswell Development LLC shall provide CITY with a fire station pad. The pad shall be a minimum of two acres in size with not more than one percent grade change throughout the pad. The ratio of length to the width of the proposed pad site shall not exceed 2:1 without prior consultation with and agreement of CITY. Utilities shall be extended to the pad so that it is ready for future development by the CITY. Crosswell Development LLC shall, at the time of granting the pad, provide easements for access with such access, including, if Crosswell Development LLC so decides, in Crosswell Development LLC`s sole discretion, fee interest subject to easements in favor of Crosswell Development LLC in all or a portion FINAL Agr.wpd [] t of the necessary access. Should such fee interest be granted, it shall not be considered part of the pad but shall be considered additional land granted to CITY. This provision is not to be considered an extraction but was rather negotiated and added to the conditions of approval as part of Crosswell Development LLC's desire to participate in and provide for the future needs of CITY. 2.04 Ownership Crosswell Development LLC represents, and it is agreed between the parties, that the Property and buildings constructed thereon may be conveyed, with ownership transferred by Crosswell Development LLC. It is anticipated that ownership of a portion of the property may remain in Crosswell Development LLC, which will enter into leases with the occupants of the buildings constructed thereon. This provision is specifically subject to Section 6.06, below. 2.05 Relationship to Zoning Ordinance Except as specifically modified or superseded by this Agreement and attached drawings, the PUD Application of Crosswell Development LLC, as amended and approved in the FRDO Staff Report #KPUD 00-1, and the City -County Planning Board meeting on January 9, 2001 as amended by the conditions of approval provided by the Kalispell City Council on February 20, 2001, the laws, rules, and regulations of the City of Kalispell governing the use and development of land and buildings, including the Kalispell Zoning Ordinance as it now exists or as amended, shall apply to the Subject Property. 2.06 Effectiveness The provisions of this Agreement shall become effective simultaneously with the approval of the PUD Ordinance. 2.07 Certification Procedure Whenever under this Development Agreement a certificate by the Director of Public Works is required to be given, such certificate shall be given after the receipt of a completed application therefor and approved by the Director. Such an application shall be deemed completed upon receipt of such drawings and narrative information as are reasonably necessary FINAL Agr.wpd FE for the issuance of such certificate, which certification shall not be unreasonably withheld or delayed. III. SITE CONDITIONS 3.01 Development The Subject Property shall be developed with the Infrastructure as described in this Agreement and Exhibit "D" to the Agreement. 3.02 Access (A) Primary access to the Subject Property shall be via one Main Entry, designated on the Master Site Plan, on U.S. Highway #93 North and one North Entry, designated on the Site Plan, on West Reserve Drive. Secondary access shall be as determined appropriate by the Montana Department of Transportation and the City of Kalispell under § 3.02 (B) . (B) Crosswell Development LLC agrees that it shall, at its own expense, have a comprehensive traffic impact study completed, which will identify all expected traffic impacts and will provide proposals for mitigation. (1) Following completion of the comprehensive study, Crosswell Development LLC will obtain all necessary access permits from the Montana Department of Transportation and/or Flathead County Road Department and CITY prior to use. (2) Crosswell Development LLC agrees to pay for all necessary traffic turn lanes, traffic signals, and other regulatory signs and signals directly pertaining to ingress and egress to and from U.S. Highway #93 and West Reserve Drive, as required by the comprehensive traffic study. (C) All primary and secondary entrances shall be completed to CITY standards prior to occupancy permits being issued for any site utilizing said entrances for access. FINAL Agr.wpd 10 (D) Emergency fire, ambulance, police and public vehicle access shall be at all times available through said primary and secondary access without impediment. (E) The proposed northernmost access along Highway 93 near Ole's Country Store shall not be built unless the aforesaid traffic study establishes it is necessary to improve safety and traffic. 3.03 Private Internal Roadways and Sidewalks (A) Crosswell Development LLC acknowledges that the development of the Subject Property includes development, at Crosswell Development LLC's expense, of internal roadways providing access to the lots within the PUD. (B) Crosswell Development LLC agrees that the interior roadways within the PUD shall be constructed to CITY standards with curb, gutter, and sidewalks on at least one side of the roadways, except that sidewalks shall be on both sides of the Main Entrance of US Highway 93, in accordance with the proposed Site drawings and applicable City Standards for Design and Construction for local and collector streets. (C) Crosswell Development LLC agrees that they will maintain all internal streets, boulevards, and sidewalks as private with unrestricted public access. (1) Sidewalks shall be provided as shown on the Master Site Plan. 3.04 Sewer and Water (A) Sanitary sewer service to the Subject Area shall be accomplished via extension from the existing main at its current terminus near the Flathead Valley Community College (FVCC). Said sanitary sewer service shall be extended to the furthest boundary of the Subject Property, in accordance with the CITY Extension of Services policy. (B) Water service to the Subject Property shall be provided by means of an extension of an existing CITY -owned 12 inch diameter water main from its present terminus near FINAL Agr.wpd 11 I FVCC on the East side of U.S. Highway 93. This extended main shall be looped to provide dual direction of supply to the Subject Property in the event that this extended water main is temporarily out of service for repairs or maintenance. Said looping is to be accomplished by further extension of the aforesaid water main across U.S. Highway 93 to the West side and from there South to a point of connection with the nearest existing CITY owned water main of the same size, or such other point of connection as may be authorized by the CITY. Water mains extended to serve facilities within the Subject Property shall be looped in similar fashion to ensure the ability to supply water service in the event a water main is temporarily out of service for maintenance or repair. (C) If a well is used on the premises it shall not in any way be connected to the CITY water supply system. (D) All sanitary sewer and water utilities shall be designed and installed in dedicated easements as shown on Exhibit "D" and in accordance with the City of Kalispell's Standards for Design and Construction. (E) All Utility Infrastructure located within the Subject Property shall be dedicated to the public upon completion. (F) Crosswell Development LLC agrees to obtain all necessary easements for the extension of water and sewer to the Subject Property. In addition, Crosswell Development LLC will grant to CITY any and all easements necessary for CITY to perform maintenance of water and sewer lines installed pursuant to this Agreement. (G) In the event that CITY requires installation of water and/or sewer lines larger than those required to service the current needs of Crosswell Development LLC as determined by hydraulic modeling tests, then CITY shall pay only those costs associated with the increased utility main sizing or extension. (H) In no event shall this Agreement be construed as to require CITY to complete installation of Infrastructure and other improvements on the Subject Property, or on any FINAL Agr.wpd 12 portion thereof, during any phase of development of the Subject Property. (I) Following completion of installation of the sewer and water lines on the Subject Property by Crosswell Development LLC, it is agreed that the said utility lines shall be dedicated to CITY, and shall at that time be maintained by CITY in accordance with CITY maintenance policy and standards. However, service lines to individual buildings on site shall remain under private ownership and shall be privately maintained. (J) Should CITY choose not to participate in the _additional costs as provided in Subsection G, above, and still requires an up -sizing as described therein, Crosswell Development LLC, shall be entitled to a Developer's Extension Agreement as provided in Section 4.01 (C), below. 3.05 Storm Water (A) Storm Water retention, drainage, and disposal shall be handled in accordance with regulations of the CITY and the Montana Department of Environmental Quality, and such other City, State and Federal "storm water requirements" as are in existence and made applicable to the property at the time of the construction of any improvement. (B) Storm Water will not be retained, treated or discharged off -site. 3.06 Site Grading (A) Site Grading of the Subject Property shall be subject to the City's Emission Control Plan and Standards for Design and Construction. (B) Prior to commencement of site grading, Crosswell Development LLC agree to obtain an Air Quality Construction and Demolition Permit from the Director of Public Works, and to comply with the terms and conditions of said Permit during construction, including hauling of material to and from the site. FINAL Agr.wpd 0991 , (C) A site grading plan shall be submitted to the Director of Public Works for review and approval prior to the commencement of any grading work. 3.07 Fire Suppression (A) Prior to the Building Department issuing any permit for any foundation or building within the PUD, the Fire Chief for CITY must certify that Crosswell Development LLC has supplied a fire site access plan for the Subject Property and an engineered internal fire suppression system for the buildings to be constructed on the Subject Property, which will be in accordance with the Uniform Fire Code and will be acceptable to the Fire Chief. (B) Crosswell Development LLC agrees to install hydrants and water mains in accordance with City of Kalispell Standards and to obtain approval thereof prior to construction from the City of Kalispell Fire Chief. 3.08 Landscaping (A) Prior to commencing construction on the Infrastructure, the parties shall prepare a plan which shall be attached as an addendum hereto which shall address grading, revegetation, irrigation and maintenance of the undeveloped areas so as to create a weed free, dust free area until such time as the undeveloped area is developed. (B) Trees will be placed within the parking lots at a rate of 1 tree per every 14 parking spaces as stated in the application. Street trees will be placed at 40 foot intervals along both sides of the internal roadways except where they immediately abut a parking lot island or planter or abut building fronts. Street trees are to be a minimum of 2 1/4 inch caliper at planting. (C) Landscaping along Highway 93 and West Reserve Drive will include street trees placed at 50 foot intervals which are a minimum of 2 1/4 inch caliper at planting and will include a hedge or shrub at a minimum height of three feet between the parking lots and roadways. This shall comply with site obstruction standards. FINAL Agr.wpd 14 (D) A landscape pod will be placed at the end of each parking aisle and parking medians which will include a minimum of one tree at a minimum caliper of 2 1/4 inch planting in addition to other shrubs and greenery. (E) The overall landscape plan shall be coordinated with the Kalispell Parks and Recreation Director as to the exact size and location of the plantings and the species lists. This plan shall be attached as an addendum upon approval of Crosswell Development LLC and the Parks Director. (F) Landscaped areas within the site shall be as proposed in the application which includes landscaping, walkways and gazebos. (G) All refuse areas shall be screened from public view. (H) Retaining walls in excess of 4 feet in height will be avoided as much as possible with the preference being the implementation of landscape terracing to make transition in areas with steepest grades. 3.09 Off -site Paths Crosswell Development LLC agrees to install a pedestrian walkway as indicated on Exhibit "C" to provide for a continuous and connected system with the existing walkways along Highway 93 and West Reserve Drive, including a sidewalk. 3.10 Lighting (A) Crosswell Development LLC shall submit a lighting plan to CITY which utilizes standard lighting fixtures with downward projected lighting in compliance with the Zoning Ordinance. (B) The lighting plan shall be reviewed and approved by the CITY. 3.11 Signage The maximum signage to be used will be calculated as provided in this section. FINAL Agr.wpd 15 (A) Wall Signs: The amount of square footage for wall signs allowed on buildings shall be calculated at 1.5 sq. ft. for each frontage foot —of any single side of the particular building as determined by Crosswell Development LLC. (B) Ground Signs: Two ground signs shall be permitted, one foot from the property line fronting U.S. Highway 93. Each sign will have a maximum height of five feet. One of the signs shall not exceed 90 square feet per side and the other shall not exceed 60 square feet per side. (C) Entrance Signs: An entrance sign shall be allowed at a minimum of 40 feet from the property line fronting U.S. Highway 93 at a maximum height of 22 feet. This sign shall not exceed 158 square feet per side. An entrance sign will be allowed at a minimum of 30 feet from the property line fronting West Reserve Drive. This sign will have a maximum height of eighteen feet and will not exceed 117 square feet per side. (D) All other signage will conform to CITY Ordinances. IV. CITY SEWER/WATER CONNECTION FEES 4.01 Connection Fee Schedule (A) Connection fees for connection to the CITY Water and Sewer Utility, based upon Resolution No. 4287 and Resolution No. 4288, will be determined in accordance with City Standards and fee schedules for connection fees, —in effect at the time of the application for a building permit. (B) Crosswell Development LLC, or its successors and assigns which own the property at the time of applying for a Building Permit, shall pay the connection fees associated with the utility connections at the time of obtaining the Building Permit for each structure. This provision is to assure that the fees are paid at the time of applying for a Building Permit and is not to be construed as to prohibit Crosswell Development LLC from requiring reimbursement or advance payment of the cost from any potential tenant or purchaser. FINAL Agr.wpd 16 (C) Crosswell Development LLC may be entitled to reimbursement of a portion of the costs of installation and extension of water and sewer utilities from future users who connect to extended water and sewer facilities. If Crosswell Development LLC anticipates the need for reimbursement of cost, Crosswell Development LLC's engineer shall prepare a preliminary design and report that details the proposed facilities and the estimated proposed reimbursable costs and will submit said design and report to the CITY for review and concurrence. Costs shall be recovered through a developer's extension agreement and will be subject to the following conditions. FINAL Agr.wpd 1) No reimbursement will be allowed for any costs associated with meeting the utility requirements for development of the Subject Property. These costs shall be determined by Crosswell Development LLC's engineer and shall be submitted for review and concurrence by the Director of Public Works. Said costs shall be the actual costs of construction, inclusive of engineering and inspection costs, and shall be submitted as specified within thirty (30) days of substantial completion of the work. 2) No reimbursement will be allowed for any costs of extension of water and sewer facilities, or increases in size thereof, for which the CITY has agreed to provide reimbursement as described elsewhere in this agreement. 3) Costs associated with extensions of water and sewer facilities to future users shall be determined by Crosswell Development LLC's engineer and shall be provided to the Director of Public Works for review and concurrence that said costs are appropriate for reimbursement. Said costs shall be the actual costs of construction, inclusive of engineering and inspection costs, and shall be submitted as specified within thirty (30) days of substantial completion of the work. 4) A developer's extension agreement shall be prepared by Crosswell Development LLC's engineer and 17 submitted to the Director of Public Works for review and concurrence. The agreement shall identify the costs to be reimbursed, the properties benefitted by the extended utilities, and the proportionate cost to be reimbursed by each benefitted property upon connection to the extended utilities. The agreement shall identify the recommended method for apportioning reimbursable costs between the benefitted properties. Said method shall be the same for all properties. The term of this agreement shall not exceed a period of seven (7) years. 5) Upon concurrence, the Director of Public Works shall submit the proposed developer's extension agreement to the Kalispell City Council for approval. 6) Future extensions by the CITY of utility facilities covered by this PUD agreement shall not be subject to the cost reimbursement outlined in this section. V. AMENDMENT OR MODIFICATIONS OF 5.01 Amendment or Modification Procedures This Development Agreement may be amended or modified only by application of Crosswell Development LLC, in accordance with the procedures set forth herein. Applications for amendment or modification may be made to the City of Kalispell Site Review Committee. (A) Modifications of this agreement and the attachments hereto which are deemed by said Site Review Committee to be minor modifications shall require only the consent of the Site Review Committee and shall not require the consent of the City Council or any other public agency. Said minor modifications shall include, but are not limited to, adjustments in size, location and orientation of specific building pads or other facilities and amenities, provided that said minor modifications do not alter the total developed area or number of pads or amenities as shown on the Master Site Plan. FINAL Agr.wpd m s (B) All amendments and modifications of this Agreement, other than minor modifications, shall require the approval of the City Council. (C) All applications for modifications or amendments of the Agreement shall be filed with the Site Review Committee and the Site Review Committee shall promptly, within 10 days, determine whether the modifications are major or minor. (D) The Site Review Committee shall make its determinations with respect to any application for minor modifications subject to this Section within 15 days after it determines the application to be subject to said minor modification. (E) If the amendment or modification requested is of such a nature as to require approval of the City Council, the Site Review Committee shall refer the matter to the City Council within fifteen (15) days after it determines the matter to require Council review. (F) Crosswell Development LLC may appeal the decision of the Site Review Committee to the City Manager or City Council, who may affirm, reverse or modify the Site Review Committee decision. VI. MISCELLANEOUS 6.01 Severability In the event that any provisions of this Agreement shall be deemed, decreed, adjudged or determined to be invalid or unlawful by a court of competent jurisdiction, such provision shall be severable and the remainder of this Agreement shall continue to be of full force and effect. 6.02 Recordation This Agreement shall be recorded in the Office of the Flathead County Clerk and Recorder. FINAL Agr.wpd 19 �• i a 6.03 Entire Agreement — Primacy This Agreement and the attachments, exhibits, plans, and reports referenced herein constitute the entire Agreement between the parties and may only be amended as set forth herein. In the event during the term of this Agreement, there is a variance between the provisions of this Agreement and any drawing or document submitted prior to execution of this Agreement, this Agreement shall take precedence. 6.04 Integration This Agreement, together with any attached exhibits and any addenda or amendments signed by the parties, integrates all negotiations and previous agreements between the parties and supercedes any other written or oral agreements or representations between the parties. This Agreement can be modified only in writing, signed by all parties hereto. Not withstanding the forgoing or anything else contained in this Agreement, the Sale and Purchase Agreement between PACK and Crosswell Development LLC, dated September 18, 2000 and as amended on December 26, 2000, and the provisions thereof shall remain in full force and effect. 6.05 Binding Effect This Agreement shall be binding upon and inure to the benefit of the respective parties, heirs, successors and assigns. FINAL Agr.wpd 20 6.06 Substitution of Parties Parties acknowledge that Crosswell Development LLC is in the process of forming a Montana legal entity. Upon completion of that action, the entity shall sign a document assuming all of the obligations and rights of Crosswell Development LLC. Upon delivery of that document to the CITY and the recording of an executed copy thereof, that entity shall be substituted in full for Crosswell Development LLC in this Agreement. Dated this _ day of CROSSWELL DEVELOPMENT LLC Its: CITY OF KALISPELL By: Its: STATE OF MONTANA ) ) ss. County of Flathead ) 2001. PACK AND COMPANY Its: Attest: By: Its: On this day of 1 2001, before me the undersigned, a Notary Public for the State of Montana, personally appeared known to me to be the authorized representative for Crosswell Development LLC, the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same on behalf of the said entity. Notary Public for the State of Montana Residing at My Commission Expires FINAL Agr.wpd 2 1 STATE OF MONTANA ) ) ss. County of Flathead ) On this day of 1 2001, before me the undersigned, a Notary Public for the State of Montana, personally appeared known to me to be the authorized representative for PACK AND COMPANY, the person whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed the same on behalf of the said entity. Notary Public for the State of Montana Residing at My Commission Expires STATE OF MONTANA ) ) ss. County of Flathead ) On this day of , 2001, before me the undersigned, a Notary Public for the State of Montana, personally appeared known to me to be the for the CITY of Kalispell, and the for the CITY of Kalispell, the persons whose names are subscribed to the foregoing instrument and acknowledged to me that he/she executed the same on behalf of the CITY of Kalispell. FINAL Agr.wpd Notary Public for the State of Montana Residing at My Commission Expires 22 INDEX OF EXHIBITS Exhibit A: Title commitment or title insurance report containing the legal description of the premises. Exhibit B: PUD Application of Crosswell Development; FRDO Staff Report #KPUD 00-1; Report of the City -County Planning Board based upon its meeting on January 9, 2001; and the Conditions of Approval of the PUD as passed by the Kalispell City Council on February 20, 2001. Exhibit C: Master Site Plan. Exhibit D: Description of Infrastructure and the costs for bonding purposes. Exhibit E: List of materials and exterior building treatments. Exhibit F: Draft Covenants. Exhibit G: Remediation Area. FINAL Agr.wpd 10*1