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?