2. Montana Motor Sports - Potential Parking LotCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
TO: Mayor Pamela B. Kennedy and Kalispell City Council
FROM: Susan Moyer, Community Development Director
Chris A. Kukulski, City Manager
SUBJECT: Montana Motor Sports — Potential Parking Lot
MEETING DATE: July 8, 2002 — Council Workshop
BACKGROUND:
Hampstead Partners, Inc. purchased the old Plaza West Parking Lot from the City of
Kalispell as a construction site for the new 40-units of elderly housing. hi order to meet
the setback, parking and other site requirements, Hampstead Partners found it necessary
to acquire an additional 11,452.4 square feet. This was accomplished through the
purchase of the Montana Motor Sports site, which lies immediately adjacent to the senior
housing site. The partnership secured a $340,000 TIF loan from the City to acquire the
Montana Motor Sports site. Hampstead Partners had both the Plaza West and Montana
Motor sites surveyed and a new plat was filed that incorporated the additional square
footage needed for the senior housing project and left the Montana Motor Sports building
redefined with a smaller square footage.
Additionally, under the terms of the Tax Credit Financing Program with Montana Board of
Housing, Hampstead Partners has given the City of Kalispell a permanent easement on the
Montana Motor Sport site of 825 sq. ft. of "mini -park" area on the corner of Second Avenue
West and Second Street West. The value of this amenity is $13,670.
The Plaza West parking lot has historically operated at near capacity. At the time the Plaza West
Parking lot was being considered for sale, city staff assured the Parking Commission that the 55
spaces that would be lost as a result of the sale would be replaced as near as possible through the
development of the old Keno Inn site. It has been determined, however, that the Keno Inn site
will only provide 25 parking spaces of which 4 are given in a permanent easement for new
commercial/residential development to the seller.
The most viable option to create replacement parking would be for the City to purchase the re -
platted Montana Motor Sports building from Hampstead Partners, demolish the structures and
construct approximately 28 parking spaces.
In discussions with Hampstead Partners, the partnership has agreed it would be willing to sell the
Montana Motor Sports site (8,977.8 sq .ft.) for $148,762, which equates to the same dollar per
square foot price that they originally paid.
Staff is recommending that City Council approve the purchase price of $148,762 which would
be deducted from the repayment of the $338,529 remaining on the $340,000 loan to Hampstead
Partners, Inc. The acquisition and demolition for this site accomplishes two Urban Renewal
goals:
• The elimination of blight and blighting factors.
• The replacement of lost parking spaces and revenues for the Parking Commission.
FISCAL EFFECTS:
After deducting the $148,762 acquisition
Montana Motor Sports site, the City will
Hampstead Partners from their retired debt.
ALTERNATIVES:
As suggested by council.
Susah Moyer,
Community I
Memo Prepared: July 3, 2002
cost for the remaining 8,977.8 square feet of the
be receiving $189,767 in Program Income from
Chris A. Kukulski,
City Manager