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1. City Service RequestCity Service September 23, 1998 Mr. Glen Neier and Members of the Council City of Kalispell P.O. Box 1197 Kalispell, MT 59901 Dear Mr. Neier: This is to update our request for Westside Tax Increment District funds to improve our property at West Idaho and Meridian Road. Our remodel project includes removing our industrial oil packaging plant and constructing a commercial complex called "Westbrook Square." The complete project will add some 23,900 square feet of retail space plus a potential 7,200 square foot building for TireRama. The development plan for the project is attached. In addition, we plan to remodel the area recently vacated by Western Auto into a Food Court to include major -brand, franchised fast-food operations. Since we last wrote you, we have been talking with Don Lewis about the purchase of his saw shop and building next to us on Meridian Road. Don is interested and we anticipate such a buy-out arrangement to cost approximately $200,000. The purchase of the saw shop building would enable us to construct a building for TireRama north of our station as part of the Westbrook complex. We would demolish the saw shop building as well as our existing warehouses to accommodate the new TireRama building. Because of the Meridian Road reconstruction project, it also appears we will have to reconfigure our fuel islands on the east end of our property at a cost of some $100,000. Here is an updated summary of building valuation and demolition costs: Moving packaging plant $125,000 Removing/demolishing two warehouses 227,500 Removing/demolishing saw shop building 147,500 Total demolition $500,000 We are interested in working with the City on tax increment funds to cover the costs of this demolition. P,O, Box 1 • 1645 Hwy. 93 South • Kalispell, Montana 59903-0001 • (406) 755-4321 . 800-343-3835 9 FAX (406) 756-8591 -2- In addition, we estimate the following expenses will be required before construction of the buildings can begin: Fill, Paving, Walks, Curbs $ 241,562 Concrete 54,500 Storn Drainage & Utilities 22,500 Island relocation 200,000 Sewer and Water Tap 11,317 Signage 12,680 Landscape 16,000 Electrical Work 24,530 Paint Striping 3,000 Total $ 586,089 Would 3% money be available for us to fund these expenses? To provide proper access to our project, we plan to construct an access road along the north boundary of our project joining Meridian Road with Kinshella Ave. We are talking with adjoining property owners to determine their interest in sharing the road. The Begg Trust managed by Jerry Begg, is interested in constructing a car wash at a total cost of some $300,000. He would also be interested in obtaining assistance on his project in the form of tax increment dollars or 3% financing. We are moving forward quickly with our Westbrook project, and would appreciate hearing from you soon. Sincerely, M&4'-� VJMW Matthew J. Waatti Vice President - Properties