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04-07-89 Development Comm MinutesCity Development Committee April 7, 1989 7:30 AM Lighterside Restaurant ATTENDING: Chairman Wayne Saverud, Clare Hafferman, Roger Hopkins, Mayor Kennedy, Ed Gallagher, Ross Plambeck, Kevin Calnan and Bob Smith. O'Neil Property - Chairman Saverud gave an up date on the O'Neil property status and stated that Kevin Calnan working as a Realtor on this property has found another interested buyer for the building and so has come back to the committee with a proposal whereby the city could pick up the south three lots for parking at the appraised price of $78,750. the northern lot and building would be rehabed by Mr. Smith for $41,250, and a business would be relocated in that building. The O'Neil family has agreed to give the city and Mr. Smith until May 1st to close. Kevin stated that this is the same parking situation that was discussed a year ago, with three lots furnishing approximately 29 parking spaces. The building will go back on the tax roles. Mr. Smith will have parking behind the building for his business, which will be done in conjunction with the contractors that do the parking lots for the city. Ross stated that Mr. Smith has visited with the Architectural Review Committee and it is his intention to fix up and keep the historic character of the building, though the committee hasn't seen any plans yet, they are enthusiastic about working with him on the 3% loan program. Mr. Smith is anxious to get started just as soon as possible, maybe two or three weeks after closing, as his business depends greatly on the tourist trade. There was discussion of the parking for the building and Ross stated that it is grandfathered under the zoning ordinance requirements as well as having more then enough for the size 40 building, unless it would change to a high use business (restaurant, etc). Clare Hafferman made the motion to present this offer to the council at the April 17th meeting, Roger Hopkins seconded, motion passed. College Agreement - Wayne stated that councilman Furlong had a concern with paragraph five in the agreement between the city and college, and Wayne agrees with this concern. The paragraph reads 'The buyer hereby agrees that it intends to demolish the improvements on the real property described above and, therefore, its purchase of said real property is not based upon any warranty or representation that the improvements on said property are suitable for any particular use. The seller shall remove all of its personal property from the premises upon vacation thereof and may remove such fixtures and improvements from said property as it deems appropriate." The City Attorney seems to feel that legally the city is not committed to demolish, but the committee feels it could be worded differently so it would not confuse anyone should a developer be interested in buying any of the buildings. Clare made the motion recommending the council approve the Mayor signing the agreement with clarification of paragraph five and then present it to council at the meeting Monday, April 17th, Roger seconded, motion passed. There was discussion on the well site and possible fire station site at the new college site. There are minutes from the Board of Adjustment meeting that address this matter which the committee has yet to review and Mayor Kennedy stated he will see the council members will receive a copy of those minutes. Clare brought up the possibility of using the remaining monies in parking commission if the O'Neil property is not purchased to pay off the interest on the bond. Ed stated that that could be done if necessary, however , if council approves the O'Neil property, the monies remaining after purchase could be used for Improvements to the parking lots and if more funds are needed, there is a redevelopment fund line item that can be used also. The bond monies must be used or committed before the next fiscal year, therefore, after the purchase of O'Neil's, the committee will make recommendation to start improvements, either in-house or contracted out, as soon as possible. Griffin Field - Wayne stated there has been interested groups and the committee needs to be briefed on these offers/groups so they can make some decisions. Ed reviewed the offer by the Senior Housing Authority Assoc. Inc. for a 100 unit housing complex. They needed the property before they could raise the money so asked for a years option, they are a non- profit and have the status of tax exempt. Ed was asked to see if there was any other housing that has a 'payment in lieu of agreement. The Federal Housing Authority in Helena has an agreement wherein they make a payment not to exceed 10% of the rent revenue, minus the cost of utilities. This agreement was approved by HUD so that if the city decided to sell to a non-profit organization there should be no problem with a "payment in lieu of taxes". Ed Gallagher reported on a meeting with a real estate development firm out of Boise, Idaho who are very interested in the Glacier Park Co. eleven acres as well as Griffin Field and other properties in that area ( they would like to have 15 acres). When asked by Ed what they wanted to put in that area they responded that it would be something beneficial to the City of Kalispell, not competition, and cannot say right now who or what it will be. There is another developer who offered Glacier Park Co. $3 a sq ft, which is a little under $1.5 million for the eleven acres, with the track in there. The appraisal work on Glacier Park property is being done and is due the middle of April. Glacier Park Co. does not plan on joint venturing like they did on the mall, they will sell outright. Ed stated another inquiry has come in from a construction exchange in Omaha, Nebraska. Ed talked a gentleman who confirmed that his firth is interested in Kalispell, he wasn't at liberty to say who the firm was, he was just taking specs and submitting to other exchanges for bid. He was asking about construction costs in Kalispell, but could not or would not say if it was in our redevelopment area. In talking with Darryl Wilson, Glacier Park Co. rep, he says he has two legitimate developers for the eleven acres. • There was lengthy discussion on the Senior Housing Authority Assoc, offer/request to the city for the one year option. Roger Hopkins (who has been working with the organization) stated this Association needs to have an answer from the city soon as they are ready to, move, having already gotten their non -tax status, etc. They are seeking national foundation help and congressional help and if the Assoc. can say that the city has already participated by allowing them to go in there with non-profit status and a lower purchase price, the city is only going to come out a winner. Ed stated that he agrees it would be beneficial to the city, but in fairness he would like to give a time frame. If the developer is for real, he must come in with a letter of intent sooner or later. The committee agreed that Is a reasonable approach and after more discussion of the offers/requests they asked Ed to write to the Glacier Park Co. and the Mayor to write to the Housing Association, stating that there has been a May 15th deadline set for a decision on a recommendation to the council. There being no further business, meeting adjourned at 9:15 AM. enclosure 9 TO: Community Development Committee FROM: Mayor Ed Kennedy RE: Parking Lot on O'Neil Property DATE: April 7, 1989 I have discussed the possibility of design and construction of the above parking with the Public Works staff. 401 This project can be done in-house without the need for expenditure of funds for design. The City can also do the construction if that fits within the guidelines of intent for bond money. JEK/ms c: BEd Gallagher Glen Neier Public Works •. i.,,... ." 11�,.