D/2. Resolution 4602 - Resolution Creating SID 343City 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: Sunny View Lane and Heritage Way SID
MEETING DATE: March 5, 2001
BACKGROUND: On February 20, 2001 the City Council opened a public hearing for the creation of
SID 343. SID 343 is for improvements to Sunny View Lane and the extension of Heritage Way. At the
request of the property owners involved and myself, the public hearing was extended to March 5. Therefore,
we need to re -open the public hearing, allowing interested parties to be heard on the record.
Since the February 20 meeting, I have been working with the property owners affected in an effort to reduce
the SID assessment. I believe we have come up with an arrangement that is acceptable to the majority of
the property owners involved. In total, SID 343 is estimated to cost $1,798,603. Of the roughly $1.8
million, the hospital, the Summit and the Orthopedic Clinic are responsible for $1,679,495 (the hospital
owns the Summit and the Orthopedic Clinic agreed to an SID as a condition of their construction last year).
The balance of $119,108 is shared between the remaining five parcels involved in the SID. I am proposing
that the City pay for the cost of installing the four inches of asphalt from the Conway Drive/Sunny View
Drive connector west to US-93. The cost of this investment is estimated at $37,333. This contribution by
the City reduces the four assessments along Sunny View by approximately 40%. As a result of this
contribution, the hospital has agreed to pay 40% of the assessment to Lot 1 of Heritage Place (Wel Care
Senior Assisted Living). This ensures that everyone outside of the hospital, the Summit and the Orthopedic
Clinic are being treated equally. In exchange for the hospital's contribution toward the Wel Care facility,
I am recommending we contribute S10,420 toward the storm drain improvements along Sunny View. This
keeps us out of assisting with the construction of a new street (a precedence we do not want to set).
The City, however, is setting a precedence with the asphalt contribution. To my knowledge, we have never
participated in an SID of this type. That being said, I don't believe that this causes any problems for the
City. If any existing neighborhood, located on a collector street that services a high percentage of the overall
community, is willing to pay the SID cost associated with reconstructing their street to the City's urban
standard, we would work with that neighborhood in covering the asphalt cost.
Page 1 of 2
RECOMMENDATION: The City Council approve the attached Resolution establishing SID 343.
FISCAL EFFECTS: The total cost of the project is estimated at $1,798,603. The City is responsible
for the asphalt costs associated with the west end of Sunny View Drive, plus an additional $10,420, for a
total estimate of $47,753. This will be funded by reducing the list of streets scheduled for an overlay and
chip seal.
ALTERNATIVES: As suggested by the Council.
Respectfully �Asubmitted,
G�
C,
Chris A. Kukulski
City Manager
Report compiled March 2, 2001
Page 2 of 2
RESOLUTION NO.6-9-
RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO.
343; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING
CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS
THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF
SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S
SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND
BE IT RESOLVED by the City Council of the City of Kalispell (the "City"), Montana,
as follows:
Section 1. Passage of Resolution of Intention. This Council, on January 22, 2001,
adopted Resolution No. 4596 (the "Resolution of Intention"), pursuant to which this Council
declared its intention to create a special improvement district, designated as Special Improvement
District No. 343 of the City, under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and
42, as amended, for the purpose of financing costs of certain local improvements described
generally therein (the "Improvements") and paying costs incidental thereto, including costs
associated with the sale and the security of special improvement district bonds drawn on the
District (the "Bonds"), the creation and administration of the District, the funding of a deposit to
the City's Special Improvement District Revolving Fund, and the establishment of a reserve
account securing the Bonds in the District fund.
Section 2. Notice and Public Hearing. Notice of passage of the Resolution of Intention
was duly published and mailed in all respects in accordance with law, and on February 20, 2001,
this Council conducted a public hearing on the creation of the District and the making of the
Improvements. The meeting of this Council at which this resolution was adopted is the first
regular meeting of the Council following the expiration of the period ended 15 days after the first
date of publication of the notice of passage of the Resolution of Intention (the "Protest Period").
Section 3. Protests. Within the Protest Period, (i) protests were filed with the
City Clerk and not withdrawn by the owners of property in the District subject to the frontage
method of assessment for the cost of Surface Improvements (as defined in the Resolution of
Intention) for _% of the total costs of the Surface Improvements; and (ii) protests
were filed with the City Clerk and not withdrawn by the owners of property in the District subject
to the actual area method of assessment for the cost of Grading and Utility Improvements (as
defined in the Resolution of Intention) for % of the total costs of the Grading and Utility
Improvements.
Section 4. Creation of the District: Insufficiency of Protests. The District is hereby
created on the terms and conditions set forth in, and otherwise in accordance with, the Resolution
of Intention and this Resolution. The protests against the creation of the District or the making of
the Improvements filed during the Protest Period, if any, are hereby found to be insufficient. The
findings and determinations made in the Resolution of Intention are hereby ratified and
confirmed.
PASSED AND ADOPTED by the City Council of the City of Kalispell, Montana, this
20th day of February, 2001.
Attest:
City Clerk
-2-
Mayor
MAR 0 5 2001
�o¢E) aresEJ'{cJt&azc
March 5, 2001
Ms. Theresa White
City Clerk
City of Kalispell
312 First Avenue East
Kalispell, MT 59901
Dear Ms. White:
This letter is official notification that Northwest Healthcare and Kalispell Regional
Medical Center will remove its objection to the formation of SID No. 343, as stated
February 16,2001.
Northwest Healthcare and Kalispell Regional Medical Center will support the formation
of SID No. 343 to improve and build Sunnyview Lane and Windward Way as described
in Resolution No. 4596.
Sincerely,
�j'.r.�c-nab✓ �,D
Velinda Stevens
President/CEO
c: Chris Kukulski, City Manager
310 Sunr"ew lane • Kalispell, Montana 59901 •406.751.8991
RECEIVED
KALISPELL MEDICAL ARTS, L.L.C.
210 Sunnyview Lane
Kalispell, MT 599o1
March 5, 2001
Chris Kukulski, City Manager
City of Kalispell
Kalispell, MT 59901
Dear Chris
I would take a moment to say thank you for your efforts on our behalf.
We agree with you and the City Counsel that Sunnyview Lane needs to be improved needing a
widened street, side walks and curbs on both sides of the street and underground utilities. We
differ in agreement on how this should be funded, that the improvements should not be the
responsibility of the adjacent land owners but responsibility of the City and its tax payers to fund
an improvement that they all use, access to medical care at Kalispell Regional Medical Center.
I think that the situation with one property owner, Mrs. Evenson, is particularly difficult. An 81
year old widowed woman living on a Social Security Pension in a home built 50 years ago, the
only residence on Sunnyview Lane being forced through the SID to pay in addition to her
present taxes $17,766.00 for a road that she does not even access seems unfair and truly is
taxation without representation. It would be nice for the City to make a further exception to her
in how this assessment is to be made.
Be that as it may, Kalispell Medical Arts does accept the offer by the City to reduce our
assessment on Lot #6 to $8,719.00 and Lot #8 to $21,426.00 and will structure payments per
the SID documents.
Mr. Steve Wilson, owner of the Spruce Park Apartments agrees also to accept your offer for
participation.
Chris, we wish you and the City well with their project.
Thank you.
Cordially,
i
Van Kirke elson, MD/for Kalispell Medical Arts, LLC
VKN/ak