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5. Underground Utilities - Kalispell Market PlaceiheCll�f Kallsuell Incorporated 1892 Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 To: Bruce Williams, City Manager From: Lawrence Gallagher, PECD Director Subject: Market Place III - Undergrounding Elect Ical ower Date: August 24, 1995 248 Third Avenue East (406) 758-7740 (406) 758-7739 (office fax) (406) 758-7758 (City Hall fax) Attached is an August 23, 1995, MEMO from Ross Plambeck containing background information and a recommendation that the City Council authorize the commitment of up to $40,000 to underground the electrical power to the City's pump house and railroad signal. The expenditure, if approved, will come from tax increment funds budgeted in the FY96 City Budget to encourage the redevelopment of Market Place III. I concur with Mr. Plambeck's recommendation, including the conditions suggested. A copy of the August 17, 1995, letter we received from Chase and Martin is also attached. If the City Council authorizes the use of tax increment funds for this project, we will proceed with documenting the conditions and authorizing PP&L to proceed with the final design and work. Please advise me if you have any suggestions for modification of the recommendation or conditions. EUJ�: n;)tSEwi 0,-PORTUNITY Incorporated 1892 Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 1►T1 Date: August 23, 1995 To: Larry Gallagher, PECD Director From: Ross Plambeck, Redevelopment Manager 248 Third Avenue East (406) 758-7740 (406) 758-7739 (office fax) (406) 758-7758 (City Hall fax) Subject: Undergrounding Electrical Power/Market Place Phase III and Glacier Bank With the construction of the new Glacier Bank drive-thru facility on E. Center Street, the undergrounding of electrical power has become an important issue that needs to be resolved for proper site development now and in the future. The main points are: • The existing power poles provide electricity to the City's well pump and the railroad crossing signal on 1st Ave. East. The pumps use a 3-phase 480 volt service, which is a substantial service drop. According to PP&L, it would cost between $38,000 and $40,000 to go underground for this type of service. Underground service to the bank building is an additional cost Glacier Bank will pay. • The existing power poles (3) are located east of the Loading Dock building and create site design problems for the drive-thru lanes of the bank. Relocation of the poles is an option, but would still cause problems for future redevelopment of the area. • Glacier Bank wants to create a quality drive-thru facility and will underground the utilities to their building. This will establish a precedent for future redevelopment on either side of them. • It is not clear whether the existing power poles are located in an established easement. When BN sold the land to the current owners, no specific mention was made of utility easements. In preliminary discussions with the abutting landowners, Jim Chase and Bill Martin, they have indicated a willingness to grant an easement for the undergrounding of utilities. • Since construction of the bank has not yet started, now is the time to install the conduit to the bank building, the pump house, and the Loading Dock. Service lines could then be pulled to serve the bank and the pump house. Undergrounding power to the Loading Dock at this time is not practical because of specialized bakery equipment in the building. It gets rather complicated on type of service provided (3-phase, 240 volt) and what could be supplied underground. I have spent several hours with the builder, the power company and electrician exploring all options. To change the power supply to the Loading Dock at this time would require new bakery equipment and a major change to the service panel. It appears leaving overhead power to the building is the only practical alternative until the bakery updates its equipment or relocates. rie EWE. riH15iY4 O-PCRTUriITY Page 2 Undergrounding Electrical Power/Market Place Phase III and Glacier Bank August 23, 1995 • Bringing power to the pump house from another location would require installation of several new poles in Depot Park and an overhead drop across Ist Ave. East. It would be just as expensive and more unsightly than relocating the current power pole set-up. • The abutting property owners, Martin and Chase, have agreed to underground the utilities to their property when there is "a total development of the individual lots." Recommendation: Please ask the Council for authorization to commit an amount not to exceed $40,000 to underground the electrical power to the pump house and railroad signal, subject to the following conditions: • The commitments made by Jim Chase and Bill Martin in their August 17, 1995 letter. • Glacier Bank to provide and pay for the undergrounding of utilities to their building. • Installation of conduit to the Loading Dock for future undergrounding of utilities. Cost to be paid by parties other than the City. • The effected property owners will prepare and record a written utility easement for the undergrounding of electrical service prior to the issuance of a building permit to Glacier Bank. r August 17, 1995 Larry Gallagher, Director Planning Economic and Community Development 248 Third Avenue East Kalispell, MT 59901 Dear Larry: In reference to the City's proposal regarding the placement of utilities underground at the Market Place Phase III Subdivision, owners James E. Chase and Darrel R. Martin submit the following counter -proposal: All costs currently estimated at approximately $38,000 to $40,000 will be paid by the City of Kalispell in order to place the utility lines underground which currently service the City well and railroad crossing and thus remove the two existing utilities poles. With the completion of the utilities underground, Messrs. Chase and Martin agree to place any and all utilities underground in the event of any future development of Lots 1 and 3 of Market Place Phase III. This second condition will only be required if there is a total development of the individual lots and does not include any minor remodeling or improvements to the existing properties. Sincerely, J es E. Chase ->g:`� ';'-->, (56�