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1. Request for Proposal - Armoryof Ka4rill"SPL-.11 „ M1 Posy Office Box 1997 - Kalispell, Montana W 7 - 7 -0 Fax (406)758-7758 REPORT TO: R. M: SUBJECT: MEETING DATE. BACKGROUND: The Honorable Mayor Pamela B. Kennedy and City Council. Susan Moyer, Community Development Director James . Patrick, City Manager The Armory Request for Proposal March :1 , 2006 Five parties picked up or had mailed to them copies of the Request for Proposal for development of the above referenced site. Ponderosa Hotel. & Management - Prescott, Arizona Gatewav Hospitality Group, Twinsburg, Ohio 'Brian Purdy, army Navy Surplus - Columbia Fall s Whitef is . Peak Development - Kalispell Jeff Wilson - a local realfor Gateway .hospitality Group was the only fi.rm/indiv i dual. to respond to the proposal and their submittal was reviewed and ranked by a committee of five. In many ways the maximum points available were not obtainable unless the developer had site control and already had contracted for engineering services. The questions did, however, provide a very good insight as to what the -krn pact of the project would be. The average ranking by the committee was 28 out of 36 passible points. The offering price is $ .,216,000 as specified in the R with an add ona] .1 per square foot lease .seeded for parking. The proposal is for a complex approximately }250, 00 in value which. has been approved by Hilton reflecting 148 rooms, a conference center of 8,000 q. ft., a l 5-seat Blue Canyon restaurant and a 21,000 sq. ft. casino. .1-1'�� r' . r­� I& W'r ar'"We- � xs� S. �s'r !\ � T ". � -1 .. f . rt '""' t ; i J 1. f.#_ _ y E' s.I— A ' 4 , Ut. � �� � . 1 I° . .� is recomme e u .at me r ty o nci m ri. w sate 1 W . r � r Sit it) Gateway Hospitality Group for acquisition and development as o tf in d r n the Response to the Proposal. It is further recommended that the proceeds -from the sale be placed into escrow -until the council determines its wish for the -use of the sale proceeds. FISCAL IMPACT: Based on the current mill leery, the estimated new tax base to be generated will be in the neighborhood of $371,289 per annum. The developer currently has a active option on a liquor license and has committed to between 112 and ..21. employees who will be eligible for a benefit package (some of which begins as soon as ninety days after employment.). ALTERNATIVES: Respectfully submitted, s suggested by Council. f Susan Moyer, Director Community .Develop nt Date Me.r.mo Pre red: March 8, 2006 4 v James H. Patrick City Manager GA'T`EWAY I305PITAI.,I'i"Y GROUP February 24, 200 Ms. Say Moyer Director Community Development 248 Third .avenue East P.O. Box 1997 Kalispell, MT. 59903-1997 RIE: Request for Proposal dory Site Dear Susan., On behalf of Gateway Hospitality Group, please accept this letter as our official response to the City of Kalispell RFP to develop the dory site. We are very excited to be a part of your community and look forward to your fa-vorable response to our proposal. Gateway Hospitality Group is a leading Motel management company y for the development ent of Hilton Garden Inns with conference centers and our signature restaurant Blue Canyon. and Casino. Since our inception in 2001, we have designed, developed and managed properties with this concept. our most current project in Missoula, MT includes the opening g of a 146 room hotel on February 2, 200, conference center opening March 28, and the restaurant and casino opening 1 11.. Our company is known for high quality product, food, service, and community involvement. We would be honored to being the Hilton Garden Inn brand to the City of Kalispell. Hilton is the premier industry name for combining group and association business to a destination city. The brand has received the distinguished. J. D. Powers Award for excellence as the best hotel in its class for four years running. We are confident that our plan to develop the hotel, conference center, restaurant and casino on the dory site will be the signature development as the gateway to the city. We have submitted to you our proposed layout of the complex which has been approved by Hilton and currently reflects their recommended changes in the site development. Our plans include the site layout, as well as, elevations reflecting 148 rooms, a conference center of 8,000 s . `t., a. 175 seat Blue Canyon restaurant and a. 2,000 s . t. Casino. We have contacted a Civil engineer to confirm the height limitations and have under contract the purchase of a liquor license. We have submitted under separate cover our complete 8920 Canyon. Falls Blvd., Ste 12Twinsburg, Ohio 44087 pro form showing the economic impact of this development ent as well as the employment rat f approximately 121 employees. Therefore, we would like to submit a request to purchase the 3.44 acres for $1,216,000 and enter into a lease agreement for the 62,500 square feet under the $ .16 cents per square foot calculation. We are excited to be a part of your beautiful city and with your approval are prepared to rove forward in are expeditious r armer. With the cities cooperation, we would expect to be under construction no later than June 1, 2006. Sincerely, Robert Voelker CEO PS We are Sending VIA Federal Express two sets of update colored renderings of the complex. 8920 Canyon Falls Blvd., Ste 125 *Twinsburg, Ohio 44087 (T) 330-405-9800 * (F) 330-405-9898