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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.