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05. Resolution 4155 - Intent to Sell Property - Diane Hall HouseRESOLUTION NO. 4155 A RESOLUTION OF INTENTION TO SELL CERTAIN PROPERTY OWNED BY THE CITY OF KALISPELL. WHEREAS, the City of Kalispell, a municipal corporation, owns certain real property, to -wit: Lot 5, Block 187, Kalispell Townsite Addition #1, together with a house and garage located upon and appurtenant to said property, and WHEREAS, Section 7-8-4201, Montana Code Annotated, authorizes the City Council to sell, dispose or lease any property belonging to the City upon proper passage of an Ordinance or Resolution passed by two-thirds vote of all members of the City Council, and WHEREAS, the City desires to utilize said real property along with other real property in the area for the purpose of expanding parking associated with Kalispell High School, and WHEREAS, in order to develop said real property as desired, it is necessary to remove the house and garage, and WHEREAS, the property is not held in trust by the City of Kalispell for any specific purpose and therefore does not require an election in order to authorize its sale, and ,,,i WHEREAS, the property is not necessary for the conduct of City J business nor for the preservation of property owned by the City and it is in the best interest of the City and its inhabitants to sell said property, and WHEREAS, at the regularly scheduled meeting of the City Council on the 20th day of June, 1994, it was determined by vote of the City Council that the fair market value for said property was the sum of three thousand dollars ($3,000.00). NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. That it is the intention of the City Council of the City of Kalispell to sell certain property, to - wit: a house and garage located on Lot 5, Block 187, Kalispell Townsite Addition #1. SECTION II. That the City Council of the City of Kalispell hereby establishes the fair market value of said real property to be the sum of three thousand dollars ($3,000.00). 1 SECTION III. That the successful purchaser of the property shall remove said house and garage from the subject real property within thirty ( 30 ) days of the date of sale. SECTION IV. That the City shall receive sealed bid proposals, addressed to the Clerk of Council, for the purchase of property from the City at an open administrative session scheduled on the 5th day of July, 1994. SECTION V. That the terms of sale shall be cash within three (3) days after the notice from the City to the prospective purchaser that the bid for the sale of said property is acceptable to the City. SECTION VI. That prospective purchasers of said property shall, as a condition of bidding said property, submit to the Clerk of Council with its proposal, cash, certified check, or bank money order in the amount of not less than five ( 5 ) percent of the bid amount in earnest money. The earnest money, herein required, shall assure that the prospective purchaser, whose bid is accepted, shall enter into, execute and perform according to his proposal. Should the prospective purchaser fail and refuse to purchase the property, he shall forfeit such earnest money to the City. The earnest money of the unsuccessful purchasers shall be returned. SECTION VII. Should the successful prospective purchaser fail to purchase the property, the City reserves the right to consider and sell said property to the next highest prospective purchaser. SECTION VIII. That the City shall require the successful prospective purchaser to bid at least ninety (90) percent of the established fair market value. SECTION IX. Should the City fail to receive any bids for the property, or should the bids received not be at least ninety (90) percent of the fair market value, the City Council reserves the right to sell said property at private sale in an amount agreeable between the City and the purchaser which shall be in the best interest of the City of Kalispell and its inhabitants. SECTION X. The Clerk of Council and City Attorney are hereby authorized to advertise the sale of said property through legal notice. Legal notices of said sale shall be published at least three times on successive weeks in the Daily Inter Lake. K SECTION XI. The City Council hereby reserves the right to reject any and all proposals, and to deter -mine whether any and all proposals submitted support the public interest. PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL THIS DAY OF 1994. ATTEST: Amy H. Robertson Finance Director 3 Douglas D. Rauthe, Mayor PHONE 406-752-7123 FAX 406-756-9120 MEMBER RDIC June 13, 1994 Mr. Bruce Williams, City Manager City of Kalispell P.O. Box 1997 Kalispell, MT 59903-1997 Dear Mr. Williams: The Valley Bank is again considering a new banking house structure due to the expansion of business resulting in continued growth. We are considering a location on the corner of Main and Third Street currently owned by the City of Kalispell. Therefore, we will appreciate if the City will entertain placing this property for bid. We are still anticipating creating a structure which may cost in the area of $2,000,000.00 to $2,500,000.00. Present plans would indicate we are considering somewhat less square footage, due to the apparent unavailability of the real estate located just north of the City property. Please advise if the City will require any additional information before a decision can be reached regarding a sale of this particular property. Sincerely, J. ' L. Henslyi President AJK: dl cc: The Honorable Doug Rauthe, Mayor Kalispell, MT 59901 cc: Larry Gallagher, Director City of Kalispell Planning, Economic & Community Development Dept. Mr Bruce Williams, City Manager City of Kalispell PO Box 1997 Kalispell, MT 59903-1997 Dear Mr Williams: For the past several years, Valley Bank has considered expansion of its banking facilities in uptown Kalispell. At one time, we considered purchasing the city's parking lot at the corner of Main and Third Street and also the two buildings abutting it to the North. Our architect had developed a plan to construct a new multi -story building that could adequately house our growing institution, while utilizing our existing bank and parking. Our present location, with its Main street exposure and Third Street access, has always been important to us because so many of our customers are located south of Kalispell. Valley Bank's plans were tabled in 1989, primarily due to the cost of land and building assemblage, demolition and site preparation and what we believed to be reluctance on the part of the City of Kalispell to participate in any of the project costs with tax increment incentives. While tax increment incentives exist to encourage growth and expansion in the uptown, for some reason assistance to a bank was perceived as a problem. There were other reasons, including a changing economy and some uncertainty abort growth in the area. During 1990, both buildings north of the parking lot were sold to other business owner/occupants and the cost of assembling land and buildings grew. The Style Shop is considered eligible for listing can the National Register of Historic places because of its facade. Our bank has grown to the point where we must immediately renew our building planning efforts to meet our customer's needs and their increasing demands for services. The Valley Bank is fast approaching 100 million dollars in total assets (without an borrowed funds) with a structure of a community -owned and operated institution whereby all of our operations are centered in Kalispell, (none of the Valley Bank's operations are handled outside and away from the Flathead), we are very possibly the largest Kalispell employer among Kalispell's financial institutions and very likely the largest payroll located in our city center. "these figures inclkide the operation of our computer center, Banker's Services, which now serves three western Montana banks. Mr Williams November 12, 1992 Page 2 We would like to remain part of Uptown Kalispell for historical reasons and because of our sizeable investment in real estate here. We have been part of Uptown Kalispell since 1964. Our drive-in bank is located here and many of our customers own and operate businesses located uptown. Interestingly, our drive-in facility was the first building to be constructed following the formation of Kalispell's Redevelopment Area. However, we cannot afford to ignore the significant costs involved in expanding in Uptown Kalispell, versus building new in another location. Some of our Board members would just as soon move, I would not. Over the past 24 months, your former Director of Planning, Building, Economic and Community Development, and your current real estate counselor Larry Gallagher, have met with me and our architect to explore the possibility of city participation in our project. Mr. Gallagher has recently encouraged me to write you with a specific request for city involvement in our project so that we may proceed to a final determination as soon as possible, perhaps by the end of 1992, on where and how we will physically expand Valley Bank. Based on updated schematic building and site plans prepared by Architects Design Group, Valley Bank would have to (i) -' purchase all of the land (city parking lot, Block'55, lots 8 through 12, 125 x 140 - 17,500 square feet) owned by City of Kalispell at the Northwest corner of Main and Third. Additionally, we would (ii) require the parcel of land abutting it to the north, a building housing a retail bike shop and owned by Joel Schoknecht. Mr. Schokneclit and the Bank have on occasion entered into discussions of price and possible building trades. The Bank would have to (III) demolish the building, (iv) stabilize the Style Shop building and address life health safety codes for emergency exiting requireruents of its upper floor apartments. The project would require (v) excavation, site preparation and off -site utility connections to the construction site. And finally, the project would require the (vi) partial vacation and/or abandonment of approximately 125' of southerly portion of the public alley between Main Street and First Avenue West. Mr Williams November 12, 1992 Page 3 The six specific actions identified above are currently being analyzed to estimate the cost of each item. Sometime during the next 30-45 days, we would appreciate a response from the City of Kalispell as to: 1. The city's ability and willingness to sell the 17,500 square foot parking lot required for the expansion of the bank, and the probable price or range of value. 2. The city's support for the proposed Valley Bank expansion project and a discussion of the availability of tax increment financing to participate in the cost of: Site excavation/preparation, utility connections and or relocation, building demolition, and any other costs which may be eligible or qualify for city tax increment participation. We believe the project cost could be $2,000,000 (land excluded) and the estimated increase to the ad valorem tax base will yield approximately $2,400.000 which includes land, construction costs and architectural fees. Finally, the Bank must determine how it will satisfy the city's parking requirements for the project or participate in the cost of the proposed parking special improvement district. The bank currently owns approximately 85 stalls of parking located at the corner of Third Street West and First Avenue West and north of the Bank which is shared with Glacier Bank. According to our architects interpretation of the city's zoning ordinance we would need 160 stalls based on the current code to satisfy the increased demand imposed by a new building. All of these issues must be addressed and the costs analyzed before we can make our decision. Sincerely, 7. King J.