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1. Ordinance 1380 - Mountain View Plaza PUD - 1st Readings City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: FROM: SUBJECT: Honorable Mayor and City Council Chris A. Kukulski, City Manager Ordinance 1380, Mountain View Plaza PUD Agreement MEETING DATE: March 19, 2001 BACKGROUND: 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. Included in the attached PUD are each of the 31 conditions with the exception of conditions #5 and #30. You will find each of the conditions within the following sections of the agreements: Condition # PUD Agreement Section #1 & #2 2.01 A Condition # PUD Agreement Section #3 2.02 #20 2.01 E #4 1.15; 3.04; 3.05; 3.06 #21 3.10 #5 Not legally advisable #22 3.11 #6 3.07 #23 2.03 D #7 3.06 #24 2.03 A #8 3.04 D #25 2.01 D #9 3.02 B #26 3.08 G #10 3.02 E #27 2.01 G #11, 12, 13, 14, & 15 3.08 #28 2.01 F #16 3.03 #29 2.01 C #17 3.08 F #30 Completed prior to #18 3.08 H drafting the PUD #19 2.03 C #31 The PUD Agreement Page 1 of 2 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. 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 Bames & 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 of the 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 attached Ordinance 1380, which is a 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 sub7u,�L C� A, Chris A. Kukulski City Manager Report compiled March 14, 2001 Page 2 of 2 NO. 1380 AN ORDINANCE APPROVING A PLANNED UNIT DEVELOPMENT ON CERTAIN REAL PROPERTY OWNED BY PACK AND CO. 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 , 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. 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. 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