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
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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
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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