04. Kalispell Center MallAgenda -July 21, 1997
AGENDA ITEM 4 - KALISPELL CENTER MALL AGREEMENT
BACKGROUND/CONSIDERATION: Since our discussion at the budget
workshop, we have continued to negotiate with Barbieri's for the
Center Mall Expansion. We have had tremendous success in
persuading them to change their position and thought process. we
have a "fair" deal for all three parties and we are currently
reducing this to a written agreement. A comparison of the major
deal points follows:
City's Original Barbieri's Original Current Agreed
Position Position Position
Contractual Cash
Flow Participation (No longer a
$300,000 $ 0 partner) Not an issue
UDAG Loan Interest
Differential (No longer a.
$400,000 $0 loan agreement) Not an issue
20% Participation
in Refinancing (No loan proceeds
$1,847,746 $0 from Refinancing) Not an issue
Proceeds from $0 $89,100 agreed
Sale of Street City to abandon- to be deleted
$89,100 vacate -allow R.O.W. from City share
to revert to paid to Equity-
Barbieri's at Barbieri's will
no cost. pay Equity the
per foot value.
UDAG Loan to be UDAG Loan to be UDAG Loan to be
Paid 100% Paid 100% Paid 100%
Approx. $2.6 million Approx. $2.6 million Approx. $2.6
million within
30 months
City's Original
Position
City budget to
purchase improvements
and demolish
$1.6 million
Crosswalk not
included.
Barbieri's will
purchase land
from Equity.
Barbieri's will
construct $6.134
million improvements.
Improvements must be
completed within 24
months.
All fees, regulations
must be paid/followed
by Barbieri's.
Barbieris shall not
appeal tax for ten
years (above new value
of improvements).
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.134 million.
Agenda -July 21, 1997
Barbieri's Original
Position
City must purchase
improvements and
demolish
$1.6 million
Crosswalk not
included.
Barbieri's will
purchase land
from Equity.
Barbieri's will
construct $6.134
million improvements.
Improvements must be
completed within 36
months.
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.134 million.
Current Agreed
Position
City will purchase
improvements from
Equity. City will
not be involved in
demolition
$890,900
Crosswalk & 3rd Ave.
West agreed to be
included in agreement.
Barbieri's will
purchase land
from Equity.
Barbieri's will
construct $6.6
million improvements.
Improvements must be
completed within 30
months.
All fees, City regula-
tions must be paid/
followed by Barbieri's.
Barbieri's shall not
appeal tax for ten
years.
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.6 million.
City's Original
Position
If Barbieri's do not
complete the $6.134
million of improve-
ments within 24
months. They must
pay the differential
to City - 6 years.
Barbieri's Original
Position
If Barbieri's do not
complete the $6.134
million of improve-
ments within 36
months. They must
pay the differential
to City - 25 years.
Agenda -July 21, 1997
Current Agreed
Position
If Barbieri's do not
complete the $6.6
million of improve-
ments within 30
months. They must
pay the differential
to City - 12 years.