1. Request for Proposal - Armoryof Ka4rill"SPL-.11
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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