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3. Valley Bank Land ExchangeValley Bank — City of Kalispell Exchange — Parking Issues Constraints Valley Bank needs to retain 15 parking spaces for its employees and customers. The City needs to acquire more parking spaces and cannot afford to lose any parking spaces during, or after the exchange. Hidden Issues That Should be Addressed Valley Bank will give eight lots on First Avenue West to the City in exchange for five lots on Main Street. We can probably agree that the value of the Main Street lots are greater than the value of the First Avenue West lots. Lack of sales makes accurate appraisal difficult. �► An informal market valuation sets the value of the First Avenue West property at approximately 2/3 of the Main Street property ($10/sq.ft compared to $15/sq.ft). This would seem to make the exchange (8 lots for S lots) fair. While the City seems to be gaining three lots in the exchange, the requirement by Valley Bank of 15 parking spaces takes up two of these lots (8 parking spaces per lot). After the construction is completed and Valley Bank receives the use of 15 parking spaces, the City should still net an additional parking spaces. The City is losing the tax base income of three lots. � After Valley Bank has invested in the facility on Main Street (new construction on higher value property), the City will likely see a net increase on its tax base. Challenges During the period that Valley Bank is constructing the new facility on Main Street and demolishing its old facility on First Avenue west, the parking spaces in the main street parking lot will be lost to the City. Does Valley Bank have the excess parking capacity on its private property to replace those lost parking spaces to the City for this interim period? If the spaces are available, in theory, does this provide for adequate staging for construction? If the parking spaces are not available, will Valley Bank and the City be able to share equally in the temporary loss of parking? After Valley Bank has constructed and moved into its new facility on Main Street and the old facility is demolished and a new parking lot is constructed on First Avenue West, Valley Bank needs 15 parking spaces adjacent to its new Main Street facility. Will the City have adequate space to provide this to Valley Bank on its new First Avenue West parking site, without losing parking? Will Valley Bank be willing to pay for these parking spaces?