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3. Gateway Community CenterCharles A. I-larball Office of City Attorney City Attorney 312 First Avenue East P.O. Box 1997 Kalispell, MT 59903-1997 013 -19LANLUNIMP TO: Mayor Pamela B. Kennedy and Kalispell City Council FROM: Charles Harball, City Attorney Myrt Webb, Interim City Manager Tel 406.758.7708 Fax 406.758.7771 charball@kalispell.com SUBJECT: Request by Gateway Community Center Inc. for Utilization of Westside TIF Funds to Assist in Interior Renovation Work of Gateway West Mall Property MEETING DATE: Monday, July 27, 2009 — City Council Work Session BACKGROUND: The Gateway Community Center, Inc. currently has a 10 year lease, with option to extend as well as an option to purchase its space in the old Gateway West Mall. It is applying to utilize a portion of the Westside TIF funds to assist in the project to provide code compliance and interior renovation to its portion of that retail mall. The projected cost of that work is $844,220. These costs would go to pay for such items that are eligible for TIF funding and that will be more fully described by the applicant during its presentation. The Westside TIF District is due to sunset on July 1, 2010. Funds remaining in the City's Westside TIF account and not otherwise committed by agreement will be returned to the appropriate taxing entities at that time. It is the intention of the applicants to have the project under contract and under construction prior to the sunset date. The applicants will be presenting their proposal to the Council at the workshop. The Council may choose at that time, to direct staff to offer a resolution at a future Council meeting that authorizes the City Manager to enter into negotiations for a developer's agreement with the applicants. Respectfully submitted, Charles Harbalf, City Attorney Myrt WA b, Interim City Manager Gateway Community Center, Inc. 1203 Highway 2 West P. O. Box 7217 Kalispell, MT 59904 406 752-7266 Mayor and City Council City of Kalispell July 27, 2009 As you all know, the West Side TIF District will sunset at midnight on June 30, 2010. The intent of creating the TIF District per our long-established TIF Policy was to accomplish infrastructure or rehabilitation within a designated blighted target area. The City of Kalispell has the ability to utilize the existing West Side TIF funding as follows. 1. Sunset the District and rebate to the taxing jurisdictions their proportionate share of TIF taxes on hand. Please remember that any rebate to the local School District, as we understand it, will be returned, per State law, to Helena and not School District 5. 2. The City, may choose to work with a private developer on a low -interest, loan for public facilities type of work as well as grant or loan to a governmental or non-profit entity for rehabilitation/renovation costs for a project(s) within the West Side District benefiting the community and its surrounding areas. The City of Kalispell made a major real estate investment of $3,558,549 in the old Gateway West Mall in order to bring Stream International to town and create over 500 permanent jobs. The development investment consisted of. 1. $2,500,000 loan from the Montana Board of Investments for the city's 2/3 share of the acquisition of the Stream space within the existing mall to provide office space; 2. $500,000 from the United States Community Development Economic Development Fund for the purchase and installation of the necessary backup generator that Stream required; 3. $278,291 for 50150 ownership of land necessary to provide the additional parking need that TeleTech required before committing to leasing up the vacant Stream site. 4. $280,258 to cover the 50150 cost of paving and striping the new parking site. The Gateway Community Center, Inc. is a newly formed non-profit, under the financial auspices of Northwest Montana United Way, Inc. which has entered into a ten year lease with the American Capital Group. Terms of the agreement entered into with ACG on February 1, 2009, call for a 10-year lease of the space, a pre -negotiated ten-year lease renewal, and the option to purchase the building at any time. The remodeled office space facility will be utilized by a variety of human service agencies that serve people of Northwest Montana. It is the firm intent of GCCI to acquire ownership of the entire mall within a 3 to 5 year period. Should fund raising through national non-profit foundations take longer, GCCI and its tenants are still covered by the total 20-years of leases. Please be advised that when GCCI is successful in acquiring the site, it will not ask for the property to be released from the city's tax rolls. During the lease period, the property will remain on the tax rolls and be paid by American Capital Group. The Gateway Community Center, Inc. is requesting an investment of $844,220 of TIF funds for code -compliance requirements and interior renovation work to make this project a reality. We believe a stabilized and revitalized mall site will only enhance the value of the share of the property currently owned by the City and the County. The attached Exhibits A and B will define the scope of the project, the immediate financial return to the City, and the overall benefit to the community. Please be assured that any unused portion of the $844,220 will be returned to the City of Kalispell for further use at their discretion. Sincerely, lm� C_ Mark Johnson, President Glacier Community Center, Inc. Sharon Stevens Wulf, cal Agent The United Way of No west Montana The Impact Fees listed below are a sample of what will be paid to the City of Kalispell: United Way and United Way Volunteer Center $ 295 Flathead Food Bank $ 7,110 Agency on Agency (Yet to be finalized) $ 13,189 $ 16,652 It is too early in the project to have even estimated costs for the other agencies relocating into the site. Total Gifts In -Kind donations to the project to date are $90,571. Samples of Gifts In -Kind received for the community center are: • Organ, Keyboard and a small Baby Grand • 2x4's for interior framing • Cabinets • Small Hand Tools • Wainscoting and Shelving Grants received to date: Round Up For Safety (safety improvement equipment) $10,000 already received An additional grant request in process for entrance $10,000 and access Signs as required by the Fire Department $20,000 striping the parking lot for the new handicapped accessibility spaces and other miscellaneous safety needs. As soon as the remaining agencies have their construction work identified, GCCI will apply for non-profit foundation funding or seek a small loan from either a lending institution or Rural Development if the need exists. Recent work by American Capital Group to upgrade the property: • New sidewalks around the building • Roof replacement on the north end • Repaving and striping the west side of the building • Repairing venting areas where MOW will cut through the roof $30,000 Page 1 of 3 TIF Funding is requested for: Change out of 14 toilets within the individual suites. This is $ 4,404 at the specific request of the Building Department Change out, remove and demolish 418 ballasts in the individual $ 12,540 suites for energy conservation as well as functional use. Telephone and computer systems — throughout the common area $67,000 and individual suites. Carpet and Tile: Replacement the throughout the common $269,610 area as well as carpeting in all 15 suites. Includes a 10% contingency if the floors have to be ground to provide a smooth surface. FOOD BANK — $27,330 Electrical $23,000 Automatic Door Opener at Front Door $ 1,500 New Automatic Loading Dock Coiling Door and Hardware $ 1,850 Interior Masonry Repair $ 980 MEELS ON WHEELS: Please note this is for the previous Corral West area which will house the installation of a new kitchen and equipment vented through the roof, staff bathrooms, dining area, and new Thrift Store. The administrative office area and RSVP will be paid for by the county. Slab on Grade Patch $ 2,600 8% Contingency Fee $31,201 Miscellaneous Metal $ 2,000 Wall Insulation & vapor $ 3,965 barriers Frame Walls, Doors & Window $ 28,757 and Reinstall existing folding gates Finish Work includes quarry the $121,483 Floor and base, fiberglass panel In kitchen, sheetrock walls, new suspended ceilings, Hardware floor, cabinets, toilet accessories accessories, etc. Plumbing $ 68,881 Electrical $ 61,975 Mechanical $ 28,601 Page 2 of 3 Superintendent and Tools & $ 16,250 Equipment Demolition and cleanup of $ 5,500 Concrete floors and floor finish Impact Fee $ 13,189 Sub -Total $421,213 10% Contingency $ 42,123 Total Request for Meals on Wheels $463,336 TOTAL TIF ASSISTANCE REQUESTED .......................$844,220 The Gateway West Mall is defunct as a retail center, and the only two private sector lessees are North West Health Insurance and Midas Muffler. The renovation of the empty retail shops into office space will provide viable and affordable rental space to non -profits and governmental offices resulting in the mall continuing to remain on the tax rolls and be occupied. Page 3 of 3 Project Concept: • To develop a one -stop human services campus utilizing the Community Center model where clients will be able to access and receive a variety of services. • To assist agencies in their efforts to collaborate as well as provide a more seamless service delivery system. • To recruit additional volunteers and funding while creating visibility for many services that are currently located in small, non -accessible sites throughout the community. • To provide a central location for activities for people of all ages and economic status that will include health education, arts and crafts, and entertainment as well as inter - generational activities. First wave of agencies anticipated to occupy space by the end of summer: Flathead Food Bank United Way and United Way Volunteer Center Montana Conservation Corps Violence Free Crisis Line Boys and Girls Club of America Boys Scouts and Girl Scouts Summit Independent Living RSVP Meals on Wheels AOA Thrift Store Gateway Community Center, Inc. Board of Directors: Mark Johnson, President — Assistant General Manager of Flathead Electric Carol Nelson, Vice President — Owner of Nelson Designs Kent Jones, Treasurer — Director of Finance Plum Creek Susan Moyer, Secretary — Retiree Mike Pence — Flathead County Administra5tor Barb Bennett — Real Estate Appraiser Sherry Stevens Wulf — Fiscal Agent United Way Gateway Community Center Leadership Committee This committee consists of a representative from each unit that has responsibility for the day-to-day operations of the center. The committee will submit monthly reports to GCCI on the operations, scheduling of events, etc. Page 1 of 2 Lease Information: • GCCI has leased 55,000 at the mall site which does not include The Annex. GCCI also has first right of refusal on The New West Health area and Midas Muffler should they become available. Flathead County's Agency on Aging would be leasing the former Corral West site directly from ACG at such time as they would move to the site. • Leases to the individual non -profits will be held under the master lease to Gateway Community Center, Inc. and their leases will be customized to meet the needs of the individual agencies and their clients. Agencies may not sublease any section of their unit. • Agencies coming to the facility will not be charged rent for their first two months to assist in facilitating costs for moving to the Center. • No Common Area Charges (CAM) for building maintenance will be charged for the first three years of the individual lease agreements. A negotiated agreement exists between GCCI and ACG for cam charges following the three-year period. • At the time the facility is purchased by GCCI the rent structure for all non-profit agencies will decrease. The agencies will then be assessed a proportionate fee that will be put into the common building fund to pay for building costs, repairs, and replacement items. • All agencies will be able to share the common area space, the United Way conference rooms, food court, and public rest rooms at no additional cost. The Leadership Committee will present to the GCCI Board a quarterly schedule of all activities and programs that will be conducted within the common area. Page 2 of 2 Logan Esch, P. O. Box 2943 Kalispell Mt 59903 I represent a group of students who are concerned with the road side cut at Foy's lake. This is an area where Kalispell goes to recreate, and is a great resource; with the exception of a roadside cut on the east shore of the lake. This cut is dangerous, and harmful to the environment, and the group of students that 1 represent is seeking a solution. When it rains, large amounts of sediment erode off this slope. This problem has been compounded by the placement of a culvert in the ditch at the bottom of the slope that runs underneath the road and dumps into the lake. With even a token amount of rain, sediments run down the slope and out the culvert, collecting car oil and other pollutants from the ditch that people park in at the base of the lake. A large plume of sediment is visible in water. This sediment by itself would be harmful to fish and swimmers, but this problem is compounded by people using the ditch as a parking area. Years of erosion have exposed large rocks on the face of the slope. These rocks pose a serious threat to those who use the highway below, especially considering the number of people who use the ditch at the bottom of the slope to park in. If one of these rocks were to strike a vehicle or person, the damage would likely be fatal. In order to halt these threats, a complete reclamation of the slope is needed. A comparable slope in British Columbia was reclaimed using compost, hydro seeding, and straw. If similar steps were taken, the same feat could be performed here and prevent all of the problems previously enumerated. We are currently in a dialog with the Montana department of transportation regarding such reclamation and would like a resolution of support for this project from this council if the reclamation is within the financial constraints of the MDT. Thank you. Council Notes: July 27, 2009 Steve Eckels; 619 Second Ave. West; 257-6878 Re: Preservation of Historic Soundscapes/Kalispell City Airport/Private Flight Training/Environmental Impact Assessment Contacts: Mark Baumler of the Montana State Historical Society: 406-444-7717 Dave Stelling in the Airports Office of the FAA in Helena: 406-449-5271 ext 28 Dan Norderude of Robert Peccia and Associates. 406-447-5000 ® FAA Brochure: Although I am not an aviator, the FAA, in lieu of monitoring staff or equipment, encourages the participation of citizens in monitoring aircraft. I would like to present a copy of a brochure I received from the FAA entitled "Help FAA Identify Unauthorized Low -Flying Aircraft". Copies are available from the FAA office in Helena at 406-449-5270. • Reminder: According to Dave Stelling in the Airports Office of the FAA in Helena, the 2002 "Environmental Assessment" for the Kalispell City Airport is several years out of date, and by law will need to be reviewed before any expansion can take place. Part of that review includes a public hearing with interested citizen's groups. I would like to formally request notification of such a hearing 30 days in advance and that the hearing take place in the evening, after working hours. • Changes Since 2002/Historical Information: In 2008 Kalispell applied and successfully obtained a "Preserve America" Grant to survey and expand our historic districts. Impact on historical districts is part of any environmental assessment and Mark Baumer of the Montana Historical Society historical preservation office has expressed interest in the updating of the Environmental Impact statement. I have attached a map of our historical districts for your reference. ® Human Responses to Noise: I have also attached two pages from the FAA Airports Desk Reference for Environmental Impact statements. The manual (P6) requires the participation of citizen's groups who are concerned about noise. The manual (P20) also outlines human responses to noise and they include: sleep disturbance, speech interference, school learning, and psychological responses. • Independence of Environmental Assessment: The now expired Environmental Impact statement of 2002 was created by Robert Peccia Associates of Helena. The FAA requires that the EA be created by an independent entity. Since Robert Peccia may bid for the construction phase of the project, I would ask the council to consider to what degree their EA is unbiased and independent. Sincerely, Steve Eckels Help FAA ldenp'.� Unauthon`zed- LOA- FLY11:NG AIRCRAFT� �Y DO YOUR PAWf,. REPORT LOW -FLYING AIRCRAFT Your help is needed in preventing unauthorized low -flying aircraft Do your part, report such flying to the FAA. For more information, you can write to the Federal Aviation _ Administration, General Aviation and Commercial Division, Operations Branch,AFS-820, 800 Independence Ave., SW, fj Washington DC 20591.The telephone number is 202-267-82 12. U.S. Department of Transportation Federal Aviation Administration U.S. Department of Transportation Federal Aviation Administration 800 Independence Ave., S.W Washington, DC 20591 Official Business Penalty for Private Use $300 y' •N d O U •«- �+ O N 5 a) .� u " C- L m O a) C1 L = y w C �.v o E EL aK 41 Qo�do OO oL-N '- 0 m O Q C U -. x u O N m t •c—y O vCi" ,_U O, U :3 4L+ a —. p .0 Vi >. 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C au H y d u 3; a� O L - a u L L s 0 I- c a) L O L y O cd .Lp E ,� ; c -_ c" � O .n c � L � N c c E a `+9 ar Dy= c v .O T- N O `- c y E O w O .O •o s>' co o= m a E z QQ� m c w 0 .O EF ° E= d >, cL OE La)om p asO C a u O 3 0 E p c ° L L c L j N LL o c v c E ab0, v 6- cd o n cco m E cD +' 'L z a c w ° E ca ed Q LL L L O a) 7 E to Q 'O ° d ° a7 y ° 45 — a+ w a) O a) N al 0 W w a " V L y c L 3 s y E }, v c L Lu _� v E o •c LL� CF N c f m_ v O acd0 0 O y = c p O ° �! -moo `O > _ `O .� c c O AIRPORTS P,R REFERENCE 4. PERMITS, CERTIFICATES, AND APPROVALS. No permits, certificates, or approvals are needed. 5. ENVIRONMENTAL COMPLIANCE PROCEDURES — ENVIRONMENTAL ANALYSIS. a. Required consultation. As needed, the responsible FAA official should ensure consultation with the entities noted below occurs. An appendix to the environmental document should include proof of that coordination. (1) Federal or state agencies, Federally -recognized tribes or Native Hawaiian organizations that have expressed noise concerns; (2) local governments having jurisdiction over land uses and having concerns about project -related noise. (3) aviation entities (e.g., airport users, pilots, owners of on -airport businesses, etc.) who have expressed concerns about noise due to project -related changes in airport operations or flight procedures; (4) citizen groups having an interest in aircraft noise issues and who have expressed concerns about airport development (see Community Involvement Manual, FAA- AEE-90-03, August 1990, if needed); or (5) the National Park Service (NPS), U.S. Fish and Wildlife Service (FWS), and the Bureau of Land Management (BLM), as needed, to coordinate the issue of project -related noise over resources these agencies manage. 6. DETERMINING IMPACTS. The responsible FAA official needs to consider how airport actions may change future operations and the levels of aircraft noise affecting communities in areas surrounding the airport. The official must also consider noise from non -aviation sources for purposes of cumulative impacts analyses. Those noise sources include, but are not limited to, project -related construction activities and/or surface transportation, other projects in the area. To determine surface transportation impacts, the Federal Highway Administration's (FHWA) Procedures for Abatement of Highway Traffic Noise and Construction Noise (23 CFR Part 772) or a method a state transportation agency recommends may be used. a. Aircraft noise. FAA has established a standard process to evaluate aircraft noise impacts. The responsible FAA official must use that process to assess an airport action meeting one of the criterion in section 3.b.(1)-(3) of this chapter. This process includes noise models, land use compatibility, noise impact thresholds, and supplemental noise analysis. The following sections discuss those issues. b. Noise screening models. FAA has identified the following two noise screening models to help determine if a detailed noise analysis using the Integrated Noise Model Chap. 17 Page 6 ►9 0 V HIM TABLE 17.1 Suggested Metrics to Determine or Describe Noise Impacts. This table is intended to guide analysts who evaluate a project's noise effects. In addition to DNL, the table provides information on other metrics that may further disclose and explain those effects. POSSIBLE HUMAN CORRESPONDING CORRESPONDING TIME AIRCRAFT THE NUMBER OF RESPONSE AVERAGE, SINGLE EVENT HEARD ABOVE A EVENTS THAT WILL CUMULATIVE METRIC PARTICULAR OCCUR ABOVE NOISE METRIC NOISE LEVEL PARTICULAR NOISE METRIC Community annoyance DNL -Average Day- *Lmax— Maximum Time Above - *NX— Numbers of — How people Night Sound Level. Sound Level. Typically, 60 or events specified at psychologically respond 65 dB. Above each sound level. to a given noise. these levels, noise would *Leq - Equivalent *SEL - Single interfere with Sound Level. Exposure Level. normal conversational levels. Sleep disturbance - *Nighttime Leq *SEL- (Federal Sound levels causing (10:00 p.m. - 7:00 Interagency sleep arousal. a.m.= typical Committee on sleeping hours) Aviation Noise (FICAN), 1997, uses SEL to predict the percentage of people an SEL would awaken. Speech interference - *Leq daytime (7:00 *Lmax or SEL Intruding noise levels a.m. to 10:00 p.m. that may mask normal = typical activity conversational speech hours) levels and reduces listener understanding. School learning —Noise *School hour Leq *SEL used to level and that could (vary) determine the adversely affect interior noise level classroom activities. reduction (NLR). This information is used The minimum to determine the level *Leq - 45 dB standard is 5 dB of noise level reduction interior sound level SEL. SEL is favored needed to reduce or goal. for analytical Chap. 17 •, r