Loading...
5. Kalispell Downtown Center Request/IrwinAgenda -August 18, 1997 AGENDA ITEM 5 - KALISPELL DOWNTOWN CENTER REQUEST-IRWIN REQUEST BACKGROUND/CONSIDERATION: Enclosed is a memorandum I received from David Irwin, the developer interested in the KDC site. This is the group that has been in discussion with the development staff and me over the past few months. This is a very general outline of the proposal to purchase and develop the downtown site. They (developers) intend to present the concept to you at this meeting. Larry Gallagher and I believe we should not go further with this project until you see the concept and give us further direction. F To answer a question that I am sure will be brought up - the City staff did not initiate the City lease portion of the proposal nor have we encouraged this approach. We do believe we need to analyze their proposal based upon the full presentation they now have. We have not seen this current rendition of the project nor have we received a proposal for this site. You will see the formal offer to purchase the property at the same time the staff sees it. RECOMMENDATION: Without knowing the development proposal, economic and actual improvements, we have not been able to analyze the value, pay backs, strengths, or shortcomings of the proposed project. Although the KDC Board will begin review of the proposal Agenda -August 18, 1997 on the morning of August 18", we will not be ready to make any recommendations at this meeting. As an opportunity to work with a development team for improvements for this site (that has been sitting for a length of time), I would recommend we formally receive the offer to purchase the property, direct the staff to analyze the proposal, negotiate with the developer, and allow staff sufficient time to respond with a full review of the proposal. I suggest no later than the September 15ei Council Meeting for review and poziUble approval of the offer (depending upon our analysis). ACTION REQUIRED: A NOTION directing staff to review the proposal with a recommendation to the Council no later than September 15rh. Any comments you may have at this meeting will be helpful in our analysis of the proposal. Aug 11 97 08:19a P.2 TO: CLARENCE W. KREPPS AUGUST 10, 1997 FM: DAVID IRWIN RE: KALISPEi _ DOYMTOWN CENTER Per Larry Gallagher's request, I have provided a brief description of the project for inclusion in your City Council agenda package. On Monday, August 18th, we will present the project in greater detail and submit a formal offer to purchase the property. Since April of this year, a group of real estate professionals and investors has been evaluating the potential of developing the property currently owned by the City, known as Kalispell Downtown Center. The result . of their efforts is Kalispell Center, a master plan to develop the property for approximately 63,000 square feet of office and retail space. Kalispell Center will be developed in three phases. The first phase will involve renovation of the existing National Flood Building and construction of a 13,000-square foot building at the northwest corner of East First Street and let Avenue East. The second phase will include another new 13,000-square foot building at the southwest corner of Center Street and 1st Avenue East. The final phase will consist of a 30,000-square foot building to be built at the northeast corner of Main Street and East First Street. On -grade parking for the project will be provided between the buildings and at the exissting parking lot at the southwest corner of East First Street and 1st Avenue East. A parking variance will be required to allow the inclusion of existing on -street parking adjoining the property into the project's parking count. The project will not require the vacation of any public right-of-way or the acquisition of any additional property beyond what the City has already purchased. Given the size of the project, and the tenant commitment necessary to ensure its success, the developers will be requesting a commitment from the City to lease approximately 6,000. 7,500 square feet as part of the first phase of the project. to addition to "kicking off" this project, we believe the leasing of space by the City will also solve some of its many problems involving space needs. Closing on the entire property and construction commencement of the first phase will occur in approximately March of 1998, with occupancy of the first phase coming later that year. Subsequent phases would be developed based on market demand, although we believe the entire project would be completed in the next 3-4 years. At this point, the project team consists of the following: David Irwin and Mark Davis of Redmond, WA. will serve as development managers and point of contact for the project. David Thornquist of Woods & Water Really will serve as local broker/representative. Klemie & Hagood Company of Spokane, WA will market the project outside of the Kalispell area and may also provkje for the property management of the project upon completion. indlvidu21S at Kiemie & Hagood working on this project include Tom Oulgly, Mac Whiteford, and Tom Aug 11 97 08:20a p.3 Carstarphen. Bernardo Wills, Architects of Spokane, WA will be the project architect. Gary Bemardo is the principal Involved. Kiemle & Hagood Company is also working with investment clients who would be passive investors and not involved in the day-to-day operations of the project. Some of those noted above would also be equity participants in the project. The project team believes that they have gone as far as they can with the deve oprnent of the project Concept without more formal feedback and input from the City. To that and, we wHl be presenting the results of our efforts next week and lock forward to the involvement of the City Council in seeing the project to its conclusion.