8. Authorities RequestsAGENDA ITEM 8
A. Authority to Advertise Sale of Haven Field
B. Authority to Allow Temporary Loans from Sewer Fund and Set
Rate
C. Authority to Pay Preliminary Bills
BACKGROUNDJCONSIDERATION: This process is the continuance of the
project approved by the Council at the July 1, 1996 meeting. This
will allow the project to become .an active project and will begin
the transition toward the removal of the fields.
RECOMMENDATION: To move toward the completion of the project as
approved by the Council, all three of these items need to be
authorized by the Council. I recommend the continuance of the
3e
process.
ACTION REQUIRED: A motion is required to approve these items. I
would suggest, for clarification of the record, that each item (A,
B, & C) be approved by a separate MOTION.
1heC11�0lKallvll
Incorporated 1892
Planning, Economic &
Community Development Department
P.O. Box 1997
Kalispell, MT 59903-1997
248 Third Avenue East
(406) 758-7740
(406) 758-7739 (office fax)
(406) 758-7758 (City Hall fax)
MEMU
To: Clarence W. Krepps, City Manager
From: Lawrence Gallagher, PECDD Director
Subject: Request to Proceed with Haven Field Offering - Authority to Advertise
Date: September 9, 1996
This is a request for authority to advertise the sale of City owned property known
as Haven Field. City Attorney Glen Neier has suggested the legal advertisement,
"Notice of Sale of City Property," be placed in the Daily Inter Lake on
September 19, September 26, and October 3, 1996. Redevelopment proposals
from persons interested in purchasing the property and responding to the Offering
Memorandum will be due by the close of business on October 9, 1996. Any
proposals received will be reviewed by staff and a recommendation prepared for
Council consideration at their October 14, 1996, Work Session.
The sale of Haven Field has been discussed and is approved as a project of the
"KALISPELL CITY" AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN. I
recommend that the City Council establish a fair market value of the property
offered to be in a range of not less than $800,000 ($4.48 per square foot) for the
4.1 acre Haven Field parcel, and not more than $892,980 ($5.00 per square foot),
although the City is certainly free to entertain a higher offer for the property. The
City has a June 1995 appraisal of the Haven Field property suggesting a range of
value between $730,513 ($4.09 per square foot) and $797,194 ($4.46 per square
foot). However, the appraiser's suggested range assumed a discount for a
two-year time period for subdivision and sell-off of portions of the property. Based
on preliminary developer inquiries, I do not believe there will be a two-year
absorption period.
Also, I recommend that the Notice of Sale include reference to the City's intention
to include the sale of all or any portion of Lion Park Street, a 22,825 square foot
rectangular parcel of land (.524 acres) located immediately adjacent and south of
Haven Field. Lion Park Street is not a dedicated public street but has been used for
years as ingress and egress to Haven Field and Lion Park and the City owned tourist
information buildings located in Lion Park. The tourist facilities are no longer
manned by the Chamber of Commerce and there appears no reason why the
Clarence W. Krepps, City Manager
Page 2
September 9, 1996
property could not be incorporated into an overall private redevelopment plan for
the entire area. This would net the City of Kalispell and its Airport Tax Increment
District additional land sales proceeds and ad valorem tax revenue and allow private
redevelopers more flexibility in site planning, ingress/egress, landscaping/lighting,
and building/parking location. The additional 22,825 square foot parcel should be
offered at the same price as Parcel 2, the Haven Field parcel, and would generate
additional land sales proceeds of between $102,256 and $114,125.
Besides the price offered for the parcel(s), the City must consider: (i) the overall
impact any redevelopment proposal will have on the highest and best use of the
property and surrounding real estate; (ii) the greatest beneficial economic impact to
the City, (iii) density and type of business, (iv) employment opportunities, and
(v) overall improvement to the City's ad valorem tax base and revenue generated
for the Airport Tax Increment District. Site planning, landscaping, and architectural
design are other considerations the Council may consider as it evaluates how the
redevelopment will enhance the south entrance to Kalispell.
These items and others will be discussed in detail in the Offering Memorandum
which will be available for discussion and finalized at the Council's September 16,
1996, Work Session. It is delayed in the hopes of gathering more complete
information on how the reconstruction of Hwy 93 and the new T-intersection of
Hwy 93 and Third Avenue East will affect and benefit the project.
Please call for any additional information you may require.
PARCEL 2: A 178,596 square foot rectangular parcel of land (4.100
acres) beginning at the southeast corner of the intersection of
18th Street East and Highway 93 South; thence along said
northeasterly right-of-way line of U.S. Highway 93, South
33'04' 19" East 650.27 feet to the northwesterly right-of-way
line of Lion.Park Street; thence along said northwesterly
right-of-way line of said Lion Park Street, North 63' 12'02"
East 281.20 feet to the southwesterly right-of-way line of
Third Avenue East, thence northwesterly along the curve and
along the southwesterly right-of-way line of Third Avenue
East, through a central angle of 19'24' 19", an arc distance of
471.62 feet to the southerly right-of-way line of Eighteenth
Street East; thence along said southerly line of said
Eighteenth Street East, North 89'52'30" West 390.92 feet to
the Point of Beginning.
LION PARK STREET: A 22,825 square foot rectangular parcel of land (.524 acres)
beginning at the southwest corner of said parcel 2, thence
along said northeasterly right-of-way line of U.S. Highway
93, South 33'04'19" East 85.51' feet to the northwest corner of
said parcel 3, South 63' 12'02" West 255.29 feet to the ,
northeast corner of said parcel 3, northwesterly along the
curve 86.61 feet to the southeasterly corner of said parcel 2,
thence along the southerly line of said parcel 2 to the point of
beginning.
Visibility & Traffic: This site is highly visible from all access points. Recent
traffic counts from Montana Department of Transportation
indicate approximately 16,000 ADT's along this stretch of
Highway 93. Montana Department of Transportation has
estimated an approximate 27,000 ADT's per day within 20
years.
Utilities: The site is served by a City of Kalispell 8" sanitary sewer, a
12" water main. Pacific Power and Light furnishes overhead
electrical service to the site. Montana Power Co. has a 2"
main on 3rd Avenue East that meets Highway 93 and they
have a 4" main on 18th Street. TCI Cablevision of Montana
provides cable TV service. PTI Communications provides
telephone service.
Zug: The site is governed by the Kalispell Zoning Ordinance, with
an effective date of March 19, 1992. A complete copy of the
Zoning Ordinance is available from the City's Department of
Planning, Economic and Community Development office.
All of the property is zoned B-2, General Business:
According to CHAPTER 27.14 B-2 GENERAL BUSINESS
DISTRICT Sec.27.14.010 Intent., the B-2 designation is: "A
business district to provide areas for those retail sales and
service functions and businesses whose operations are
typically characterized by outdoor display, storage and/or sale
of merchandise, by major repair of motor vehicles, and by
outdoor commercial amusement and recreational activities.
This district would also serve the general needs of the tourist
and traveler.
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t 00��Ilvll
Incorporated 1892
,elephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
To: Mayor Rauthe & City Council Members
From: Amy Robertson
Finance Director
Re: Airport Tax Increment temporary funding
Please authorize by motion the use of Sewer funds which are currently invested in STIP
to be loaned to Fund 2185 Airport Tax Increment. These funds would be loaned as
needed to pay up front costs of advertising and appraisals. I am recommending a rate of
6.5% which is I % above the current STIP rate. The Sewer funds are held and invested
per the bond resolutions and are not needed for day to day operations.
Douglas Rauthe
Mayor
Clarence W. Krepps
City Manager
City Council
Members: .
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward 11
Dale Haarr
Ward 11
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV