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12. Airport Appraisalsi 1 Incorporated 1892 Telephone (406) 758-7700 Douglas Rauthe FAX (406) 758-7758 Mayor Post Office Box 1997 Zip 59903-1997 Bruce Williams City Manager City Council Members: Gary W. Nystul Ward I MEMORANDUM Cliff Collins Ward I Date: May 8, 1995 Barbara Moses Ward 11 From: Lawrence Gallagher, Director Dale Haarr Ward II To: Bruce Williams, City Manager Jim Atkinson Subject: Kalispell City Airport - Appraisal recommendation Ward III Lauren Granmo Ward III I have reviewed the proposals you have received from Wa dlIV .Kennedy Kelley Appraisal and Roger D. Jacobson, MAI. I suggest that you recommend that the City Council engage Roger D. Jacobson, M. Duane Larson MAI, to perform the work authorizing the Package Discount of Wardle $10,400 for all of the work described in his proposal. First, let me outline the reasons for my recommendation and provide comment on -each element of the proposal(s) beginning with Kelley's. KELLEY Conflict: Because Kelley is a pilot, small airplane owner and investor/promoter/originator in Flathead Lake Sky Ranch and has rented hangar/tie-down space at the Kalispell City Airport, he may be less objective than Jacobson. Jacobson has not disclosed any conflicts; but then neither did Kelley. Past Work of a Similar Nature: (See Kelley's description of Past Work -appraisals; specifically, items 1, 2, and 4.) Kelley appraised the City's airport (Courtyard Apartments) property in 1988, the Buffalo Head Subdivision in 1990, and the Big Sky Fly and Tackle/Legacy Cafe property in 1991. All of the appraisals are available for review should any of the City Council members care to examine his work. Price: Mr. Kelley quoted $10,000 for five appraisals and elected not to discuss the highest and best use, long term lease considerations, redevelopment potential and/or other uses permitted in an I-1 zone or to offer a price for said work as called for in the solicitation of proposals. Mr. Bruce Williams Airport Appraisal Memorandum Page 2 Time: Mr. Kelley offers a delivery date "within 60 days of receiving the order". JACOBSON Conflict: Mr. Jacobson states: "The appraisers have no conflict of interest nor any potential conflict of interest as a user, renter, investor, or in any other way with any area airport." Past Work of a Similar Nature: Page 1 of Jacobson's April 17, 1995 proposal outlines several recent appraisal assignments of similar property. In my opinion, he demonstrates superior experience in providing the work the City has called for. His appraisal of the Fairgrounds, Highway 93 right-of-way and airport area commercial projects should give him an adequate understanding of the market and comparables. We have samples of his work in the office should any of the City Council members want to review his work product. Price: Jacobson has offered a Package Discount of $10,400 for all of the work requested by the City. This price includes the highest and best use narrative and redevelopment alternatives called for on the City's industrial parcel located off Airport Road. Time: A start date with two weeks notice and completion within one month of that date. RECOMMENDATION Based on a review of both proposals and the presentation, qualifications, and timing, I recommend that you request City Council authorization to enter into a contract for professional services to engage Roger D. Jacobson, MAI, to perform all of the work specified in your RFQ/RFP as outlined by you and included in Mr. Jacobson's April 17, 1995 response. Also, I recommend that we meet with Mr. Jacobson to conduct a pre -appraisal conference to discuss the City's expectations and timing or phasing of the appraisal/highest and best use analysis. I will be available at tonight's meeting to respond to any questions you or the Council may have regarding my recommen- dation.