8. State Lands LetterIncorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
February 20, 1996
Mr. Jeff Hagener
Land Division Administrator
Department of State Lands
State of Montana
Post Office Box 201601
Helena, MT 59620-1601
Re.: Formal Request to Enter Into a Lease Agreement for the
SE1/4, Sec. 36, T29N, R22W, Flathead County, Montana,
Current Lease: Renewal Lease No. 2252, dated 2-28-87
Lessee: Clinton Grosswiler
Dear Mr. Hagener:
The Kalispell City Council hereby notifies you of the
City's desire to enter into a formal lease agreement with the
-- Montana Department of State Lands for the Southeast Quarter,
Section 36, Township 29 North, Range 22 West, Flathead County,
Montana, and reclassify the quarter section from its current
Class 1 and Class 3 designations to Class 4 lands whose
principal value is for uses other than grazing, crop production,
timber production, or watershed protection. We propose that the
lease be for the maximum permitted period of time, which we
understand to be 40 years under the requested classification.
BACKGROUND
The Department of State Lands has leased the East Half of
Section 36 (subject to 9.086 acre right-of-way issued to the
Montana State Forester) to Mr. Clinton Grosswiler, 1975 West
Valley Drive, Kalispell, Montana, pursuant to the terms of an
Agreement dated February 28, 1987. The land is presently used
for agricultural crop production. The City requests permission
to develop the quarter section in order to fulfill a public
demand to accommodate approximately 223,000 annual hours of
youth athletic activities (non -school related) presently
conducted elsewhere throughout the community. Youth baseball,
softball, and soccer activities continue to grow, reflecting the
overall population patterns in Flathead County. Most of these
activities presently occur on land surrounding the Kalispell
City Airport which is designated for alternative development.
Douglas Rauthe
Mayor
Bruce Williams
City Manager
City Council
Members:
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward II
Dale Haarr
Ward II
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV
Mr. Jeff Hagener
February 20, 1996
Page 2
Some of the existing fields fail 1
standards. The 160 acre youth athlet
Southeast Quarter of Section 36 will
and foreseeable, anticipated increases
this development could not be better,
youth athletic fields are destined for
near future.
o meet minimum safety design
is complex proposed for the
accommodate present demands
in those demands. Timing of
since many of the existing
other uses in the relatively
The City Council adopted a Kalispell City Airport Master Plan
in 1995 and is presently in the process of developing options to
implement it. The Plan calls for the redevelopment of the
Kalispell City Airport to assure a safe and secure,general aviation
airport, one consequence of which will be the displacement of many
youth athletic fields. The airport project enjoys the support of
local pilots, fixed base operators, adjacent property owners, local
businesses and representatives of the Montana Aeronautics Division
of the Montana Department of Transportation.
PROPOSAL
Reclassification of the Southeast Quarter of Section 36 to a
Class 4 designation will allow commitment of the substantial
financial resources necessary to develop the youth athletic
complex. It is anticipated that development will occur in phases,
although completing demands for property surrounding the Kalispell
City Airport may require the prompt development of a significant
portion of the 160 acres. That portion of the 160 acres not
converted to youth athletic activities will continue to be used for
agricultural purposes by the present lessee, or any other approved
lessee, in the event Mr. Grosswiler elects to discontinue farming
activities on Section 36.
Due to the strategic location of the site and its importance
to providing youth athletic facilities on a long term basis, this
proposal appears to satisfy the Multiple Use Management concept
defined in Section 71-1-203, MCA. Positive attributes for the site
include its accessability, proximity to municipal services and
utilities, and suitable soils and topography. It is located
immediately west of Flathead Valley Community College and adjacent
to U.S. Highway 93 North, which is scheduled to be reconstructed
and widened this year. Adjacent to the site, the Highway will
consist of five traffic lanes, including four travel lanes and a
center turn lane. A stop light is presently located at the
southeast corner of the site, where Four Mile Drive intersects with
Highway 93. City water is also available at this intersection, and
Kalispell's current budget includes funds to extend a sanitary
sewer line parallel to Highway 93 North to Reserve Drive, which
borders Section 36 on the north.
Mr. Jeff Hagener
February 20, 1996
Page 3
The topography of the 160 acres is generally flat to gently
rolling, and lends itself well to the intended use. The irregular
topography would promote creative site design, allowing effective
separation of uses. The soils appear to be suitable, as the site
has been productively farmed since the early 1900s. There are no
known environmental constraints on the property.
We have reviewed the information package you forwarded to us,
including surface management rules, and find nothing to prohibit
your Department's favorable consideration of this request. We
acknowledge the powers and duties of the Board of Land
Commissioners and the guiding rule that it exercise its powers to
assure that "...lands and funds are held in trust for the support
of education and for the attainment of other worthy objects helpful
to the well-being of the people of this state." We believe this
proposal has merit and will satisfy the missions of the Board.
ECONOMIC FEASIBILITY
Funds for development of the youth athletic complex will be
derived from several sources. First, the Kalispell City Airport
Master Plan includes within its boundaries property located east of
U.S. Highway 93 South which consists of approximately four acres
and is presently used and known as the Haven baseball fields. As
part of the City's Airport Master Plan, these fields are intended
for sale and the funds derived from said sale will be used for
development of the youth athletic complex.
Additionally, a public/private partnership is being created
between the City of Kalispell and the four youth athletic programs
which are being displaced as a result of airport development and
will be relocated to the new site. These organizations will
contribute cash or in kind toward the project's design and
development in an amount yet to be determined by the City and these
organizations. The Haven's ballfield site was appraised in 1995 at
$790,000.00 and, although the exact sales price is unknown, it will
be the net realized dollars from the sale which will be committed
by the City of Kalispell to the project.
The four youth organizations, namely: Kalispell Pee Wee
Baseball, Kalispell Babe Ruth League, Greater Kalispell Youth
Soccer Association, and the Kalispell Youth Softball Association
enjoy favorable reputations throughout the community and provide
youth athletic activities for approximately 4,000 youngsters. The
City is confident of their ability to generate cash and in kind
contributions toward development of the site which will satisfy
their partnership commitment to assist in development of the
complex.
Mr. Jeff Hagener
February 20,1996
Page 4
ECONOMIC PROPOSAL
Presently, the leased land provides revenue to the Montana
Department of State Lands through a crop -sharing arrangement. Our
best estimate is that this site generates approximately $50,000.00
annually for the benefit of this State's public schools. In
consideration for entering into the Master Lease Agreement with the
City of Kalispell for the Southeast Quarter of Section 36, the City
of Kalispell proposes for the first five years of the lease to
compensate the Department at the average compensation realized by
it from this quarter section over the past five calendar years,
plus ten percent (10%). This will allow allocation of available
funds toward development over the near term; thereafter we
anticipate adjustment to the annual lease rental consistent with
adjustment factors customarily used by the Department in similar
situations.
We believe that this economic package fulfills the mandate of
the Board of Land Commissioners, recognizes the interest of the
people of the State of Montana, and perpetuates the beneficial
public use to which the land will be put. This package is not
submitted as a take it or leave it proposal, and the City of
Kalispell remains available to discuss alternatives and refine this
package.
Development of the complex may also be an appropriate
opportunity to use available Resource Development Account funds for
construction of infrastructure. We anticipate exploring this,
possibility with you further as development plans begin taking
shape.
CURRENT LESSEE
The current lessee, Clinton Grosswiler, has been apprised of
the City of Kalispell's objectives and he fully supports the
proposed development of the Southeast Quarter as a youth athletic
complex, plus the continued availability of the land for
agricultural purposes until such time as it is developed by the
city. He concurs with the removal of the Southeast Quarter of
Section 36 from his existing lease and has separately provided
notice of his consent, which accompanies this proposal.
Mr. Jeff Hagener
February 20, 1996
Page 5
CONCLUSION
The City of Kalispell is in rather a unique position. It is
not often that public entities are presented opportunities that
include a "win -win" outcome. Specifically, the Kalispell City
Airport Master Plan will permit the development of a modern,
efficient, and economically desirable general aviation airport on
the City's southern border. At the same time, the sale of land in
the vicinity of the Kalispell City Airport will generate revenue.
which, together with the cash and in kind contributions of affected
youth organizations, will permit development of a state-of-the-art
youth athletic complex at the City's northern boundary, which will
provide facilities for conducting youth athletic activities that
will benefit the entire Flathead Valley. It is our goal to be
favorably positioned to permit design and the beginning of on -site
development activities this spring. Therefore, your prompt
consideration of this request will be greatly appreciated, and we
remain available to work both diligently and earnestly with the
Department of State Lands to accomplish these worthwhile
objectives.
Very truly yours,
Douglas D. Rauthe
Mayor
City of Kalispell
DDR/ksk