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2. Second Avenue West Redevelopmentof Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758 REPORT TO: The Honorable Mayor Boharski and City Council FROM: Susan Moyer, Community Development Chris A. Kukulski, City Manager SUBJECT: Second Avenue West Redevelopment/Hampstead Partners MEETING DATE: March 14, 2000 BACKGROUND: Hampstead Partners, Inc. recently acquired 112 units of low and very -low income elderly and small family rental units within the city limits. On Thursday, March 16th, they will present you with their plan to redevelop a three to four block area on Second Avenue West. This plan includes: a 75-unit elderly rental apartment building; a "below market" assisted living unit for low and very -low income seniors; the relocation of the existing non-ADA accessible Senior Center into the first floor of the assisted living complex; and the overall redevelopment of the area with tree scapes, improved sidewalks, a senior mini -park, etc. Dr. Brock and the Rotary established Second Avenue West as the designated walkway for seniors approximately four to five years ago. Sykes, which is the hub of the elderly community, has expressed an interest in doing an exterior facelift to become compatible with the proposed redevelopment. Additionally, Agency on Aging would move its "Meals on Wheels" kitchen facility into the assisted living facility to provide meals to the residents as well as continue their feeding program to elderly and handicapped shut-ins throughout the county. It is further anticipated that new commercial/retail development will be a spin off of this total activity. Consideration is being given to providing a boutique and woodworking shop for the seniors to sell or perform their crafts. Staff believes that Hampstead Partners, Inc. will be asking the City to consider assisting with the redevelopment activities in the following ways: • Narrowing Second Avenue West to two lanes and providing wider sidewalks for better pedestrian traffic. The creation of a tree scape as exists on the east side of the city as well as Main Street and First Avenue West. Perhaps this would expand into a senior mini -park to enhance the senior walkway. Page 1 of 2 • Entering into a partnership wherein the City would apply for HOME and CDBG grants to assist in acquisition costs and/or construction costs. RECOMMENDATION: City Council gives serious consideration to the involvement of the Community Development Department in seeking ways to assist this redevelopment activity to become a reality. City Council commits any funds obtained through purchase of public property back into replacement of such property within the four -block area. FISCAL IMPACT: The City could receive somewhere in the neighborhood of $72,000 in administrative fees if staff applies for and receives HOME and CDBG Housing Grants on behalf of this project. The tax impact, though not known at this time, is anticipated to be significant when the entire redevelopment project is completed. ALTERNATIVES: As suggested by council. Respectfully submitted, Susan Moyer, Community Development T Chris A. Kukulski, City Manager Page 2 of 2