4. Parking CommissionKalispell Parking Commission
P.O.Box 105
Kalispell, Montana 59903-0105
(406) 755-5305
February 17, 1999
Memorandum
To: Theresa White, Clerk of the City Council
Re: City Council Work Session Agenda, February 22, 1999
Theresa,
The Kalispell Parking Commission wishes to discuss the following topics with the -Mayor,
City Council, and City Manager:
I. Current status of the TPT property. Legal description: Lots 3, 4, 5, 6, 7, 8 and the
north 20 feet of Lot 9 of Block 76, Kalispell Original Townsite.
II. Current status of the Northwestern Telephone/James, Burks, Gwiazdon properties.
Legal description: Lots 1, 2, 3, 4, and the north 23 feet of Lot 5 of Block 37, Kalispell
Original Townsite.
III. The Kalispell Parking Commission is considering the privatization of the operations of
on -street and off-street parking in downtown Kalispell. We have had presentations by
managers from Diamond Parking, Spokane, Washington and Ampco System Parking,
Seattle, Washington. We would appreciate feedback on this situation and advice on the
next steps to be taken should the commission decide to pursue the idea.
?ThaAy,
Kalispell
n Harper, irector
Parking Commission
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Office of the City Attorney
Glen Neier, City Attorney
Richard Rickel, Ant. City Attorney
February 2, 1999
TO: Mayor and City Council
FROM: Glen Neier, City Attorne
RE: Parking Lot Apprais
P.O. Box 1997
Kalispell MT 59903-1997
Telephone: (406) 758-7708
Fax (406) 758-7771
The Kalispell Parking Commission has requested that the City utilize
funds accruing within the urban renewal area to purchase Lots-7, 8
and ttre N 20' of Lot 9; and Lots 3, 4, 5, 6, Block 76, for use as a
parking lot. Specifically, the property under consideration occupies
the area between the old Wards Automotive building and the Devonshire
Motel.
The Parking Commission recommended purchasing the property based upon
an appraisal by Rex Boller. Rex valued unimproved Lots 7, 8 and the
N 20' of Block 76 at $85,000. Lots 3, 4, 5, and 6, Block 76, which
are occupied by buildings, were valued at $195,000.
This office retained the services of Roger Jacobson, MAI to do a "due
diligence' examination of the Boller appraisal. I have attached
hereto a copy of Mr. Jacobson's analysis for your examination.
A review of the Jacobson re -appraisal shows that the vacant land,
based upon comparable sales information, may have been slightly
overvalued in the neighborhood of $6,600. In so far as the purchase
price of any property is what a willing seller would demand for
property and a willing purchaser would agree to pay, the discrepancy
between the two appraisals does not appear to be material.
On the other hand, Jacobson's analysis of the occupied property -based
income approach indicated a substantial overvaluation of the
property. This office prepared a spread sheet using Boller's formula
and Jacobson's figures. The formula indicates a valuation of
$107,774, a little more than 14 of the Boller appraisal. I have
verified my analysis with Mr. Jacobson and he concurred with my
formula.
Based upon the foregoing, the Council may wish to instruct the
Parking Commission that the price quoted for purchase of the "TPT"
property is beyond what the City feels is a legitimate asking price.
If a more reasonable price cannot be negotiated, this office would
recommend that the City decline to purchase the property.
H:\att\xp\jacobsonappraisal.wpd
Ianuary 22, 1999
Glen Neier, City Attorney
City of Kalispelt
3121= Ave EAS
Kalispell, MT 59901
In accordancewith your 'si ,; w for nreview ♦. theappraisalreport♦'1 h
Properties byRexBona,
dated
e•November t 99 have i li l a e an '" .. # inspection
1' properties, reviewed the noted appraisal ai.t completed demiBed mport regarding ►r
!>t t 'J. Following the aconsisting of pages, (3:Cerdficadoo required by It
Uniform l l... ,.i of Professional
.ro fe • i..•.AppraisalPractice, i't of it:..'.reportbeing reviewed and
my qualifications.
Thank you for the opportunity to serve you.
w• .. , t ' Will
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Ana"Is of R. Jacobson's "Due Dtitgence" Examination
Average of Two Properties Rent 3.385
Estimated Gross tncorne 18564
Vacancy Rate 928.2
Total 17635.8
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...#a - 1.6,1 i 1'
Capitalized Value 107774.3