2B. Daley Field ProposalSite Facts -
Total Area -
Rosauers Parcel -
North Parcel -
South Parcel -
681,758 sf
15.65 acres
228,711 sf
5.25 acres
132,564 sf
3.04 acres
320,483 sf
7.36 acres
Comparison of the Two Offers -
Gross Price
Commissions
Net Price
Site Area
Price per SF
0
$743,311
228,711 sf
5.25 acres
$3.25 Gross
$3.25 Net
King Mgmt, Inc.
$1,364.000
109,120
$1,254,880
681,758 sf
15.65 acres
$2.00 Gross
$1.84 Net
If the City accepted the Rosauers Offer, and re-offerred the remaining parcels, how much would they need
to receive to achieve breakeven with the initial full -parcel offer?
King Mgmt Offer - Net $1,254,880 Total Parcel Area 681,758 sf
Rosauers Offer 743,311 Rosauers Area 228.711 sf
Net Price Difference $511,569 Remaining Area 453,047 sf
Price/sf Required for Breakeven $1.13 '
Another way of stating this is - Assuming the land being sought for the Rosauers development is worth the $3.25/sf price
being offerred, then King Management is proposing to pay only $1.13/sf for the remaining balance of the site.
08/29/97 Page 1
In our opinion, the remaining North Parcel is worth at least the same $3.25 per sf that Rosauers is offering
in their proposal, while the remaining South Parcel Is not quite as desirable. Based on certain pries
received on the North Parcel, how much would the City need on the remaining South Parcel to achieve
breakeven?
If the City
Received a
$/sf Offer
Of
Equates to
a Total $
Offer Of
Leaves
This Amount
of Total $
to Reach
Breakeven
Which Equals
a Breakeven
$/sf Price on
the South
Parcel of
$2.00
$265,128
$246,441
$0.77
$2.50
$331,410
$180,159
$0.56
$3.00
$397,692
$113,877
$0.36
$3.25
$430,833
$80,736
$0.25
$3.50
$463,974
$47,595
$0.15
$3.75
$497,115
$14,454
$0.05
$4.00
$530,256
($18,687)
$0.00
If the City were to accept the Rosauers Offer, and re -offer the remaining North and South Parcels, how much
more in total proceeds could they reasonably expect to receive?
Total Less: Net
North &
South
Sold at an
Average
$/sf Price of
Proceeds
From
Re -Sale
of North &
South
Price
Difference
of King vs.
Rosauers
Offer
Would
Provide
Increased
Proceeds to
the City of
$1.25
$566,309
$511,569
$54,740
$1.50
$679,571
$511,569
$168,002
$1.75
$792,832
$511,569
$281,263
$1.84
$833,606
$511,569
$322,037
$2.00
$906,094
$511,569
$394,525
$2.25
$1,019,356
$511,569
$507,787
$2.50
$1,132,618
$511,569
$621,049
$2.75
$1,245,879
$511,569
$734,310
$3.00
$1,359,141
$511,569
$847,572
08/29/97 Page 2
If Rosauers were to develop their store as planned, and the balance of the site were developed as set
forth per the King Management proposal, how much greater would the net ad valorem tax base be?
Value of the Rosauers development
Value of King Management "compatible" components -
First Motel
Restaurant on North Parcel
Auto Dealership
Convenience Store/Auto Service
Quick Lube (est.)
Other (est.)
TOTAL POTENTIAL COMBINED TAXABLE VALUE
Less: Value of Full Site King Management Proposal
POTENTIAL EXCESS TAXABLE VALUE
POTENTIAL EXCESS AD VALOREM TAXES -
Market Value Class 4 (est.)
Class 4 Classification
TAXABLE VALUE
Market Value Personal Property (est.)
Class 8 Classification
TAXABLE VALUE
TOTAL MARKET VALUE
Combined Mill Levy 1996
POTENTIAL EXCESS AD VALOREM TAXES
$6, 000, 000
$2,900,000
1,100,000
2,000,000
1,500,000
600,000
300,000 8,400,000
14,400,000
12, 000, 000
$2, 400, 000
$2, 000, 000
3.86%
$77,200
400,000
8.00%
$32,000
$109, 200
52.0252%
556,812 Per Year
08/29/97 Page 3
Thursday, August 14, 1997
Kalispell City Council
City Hall
Kalispell, MT 59901
Dear Council Members:
Included in this package, is a proposal for the development of Daley Field. It is as complete as
time would allow. If our proposal is selected, King Management Inc. will promptly provide any
financial information or references needed to assure the Council of their ability and willingness to
participate in this development.
In brief, our proposal offers $1,364,000 for the purchase of Daley Field, including an 8%
brokerage fee payable to RE/MAX Land & Lake Realty, Inc. We estimate this development will
generate an approximate tax base of $12,000,000 by the year 2000 with additional development
beyond that date. We intend to develop the subject property into a first class commercial center
that we and the City of Kalispell will be proud to have at the south entrance of the city.
If you have any questions or need further information, please contact me. Thank you for your
consideration of our proposal.
Professionally,
-on / d
Gregg Schoh
Buyer's Broker
WOMPA land & lake realty, inc.
Daley Field
Kalispel , Montana
Prol2aLl
This proposal is being presented to the City of Kalispell, Montana, to acquire and develop
that certain parcel of land identified as Daley Field (a six field softball complex),
comprising of approximately 15.6 acres.
King Management, Inc. and other entities would like to make a proposal to the City of
Kalispell, Montana, for the acquisition and development of Daley Field into a
development complex comprising of one to two hotels, 2 to 3 restaurants, a convenience
store, an automotive service facility and an auto retail center. Additional buildings may
be placed on the rear of the property as needed.As is described on the site plan all of the
described uses fit nicely on the subject property allowing good viability of each tenant
and cross access.
Negotiations on the first hotel are in the works. The first hotel will consist of
approximately 80 units to be under construction in 1998, with a completion date in the
same year. All construction will be predicated on the timely completion of a satisfactory
closing of the Purchase and Sale Agreement. Several restaurant companies have
expressed interest in the participation of the site plan. These are full service restaurants
offering family dining, such as, Applebee's or MacKenzie's in Missoula. Please keep in
mind that these two services compliment each other and are looking to be constructed and
opened at the same time. Negotiations with both the hotels and restaurants are predicated
on the successful acquisition of the land. At least one of the restaurants will be
completed at the approximate time as the first hotel (1998).
Projecting in late 1998 and 1999, is the placement of a second restaurant, convenience
store/casino and automotive service facility. Development of these services will come
from the south end of the property, as depicted on the attached site plan. Initial inquiries
of interest of this site plan again are predicated on the tenant placement to the north end
of the property and timely completion of a satisfactory closing of the Purchase and Sale
Agreement.
All interested parties have been looking for property in the area or are already operating
existing facilities in the Kalispell area and are interested in expansion.
Additionally, King Management, Inc. is aware of an interest in establishing a new car
dealership at the south entrance of Kalispell. The south end of the subject property would
be an ideal location for this use.
King Management, Inc. does further express interest in offering to special clientele,
access to the Kalispell City AirporL This would include small plane storage with
adjacent office or work space. This idea is proposed because of some of the inquiries we
have received and also because of the limited building height that is allowed along the
west property line. Offering a compliment of services in conjunction with the existing
airport in only prudent looking at the location of the land in relationship to the highway
access and the airport runways.
This proposal is assuming that all correct zoning is in place for the above -mentioned
development, and also that all services — i.e., water, sewer, electric, phone, etc. — are
either on the property or adjoining the property.
King Management, Inc. believes this proposed development fits nicely with the City of
Kalispell and enhances the south entrance to the city. Further development of this quality
and magnitude encourages additional development within the proposed site plan and
surrounding properties further enhancing the City of Kalispell's appeal and projected tax
base.
It is the intent of the Developer to utilize both proposed highway accesses and provide a
cross -easement between the mixed uses within the proposed development. Providing the
cross -easements between the adjacent users will eliminate traffic entering and exiting off
Highway 93 to get to adjacent tenants. As negotiations for space are determined
proposed architectural and landscaping exhibits will be provided to the City of Kalispell
for review. At this time it is too premature to provide these schedules.
Value of Improve -men
At this time, placing a value on the improvements can only be a rough estimate. Based
on provided information, we anticipate the estimated values attached to the following
projects; one single hotel with approximately 80 units to value at 52.9 million including
land and FF&E, a single 5,500 S.F. restaurant to value at $1.1 million including land and
FF&E, and this initial phase of the project will total $4.0 million in 1998. Should efforts
be successful with the convenience store and automotive service facility, we project by
late 1998 or early 1999 the subject proPerVs value will increase by $1.5 million
including land and FF&E. Additionally in 1999 a second family restaurant will be under
construction to be completed late 1999 or first part of 2000. Estimated value will be $1.0
million to include land and FF&E. It is conceivable that within this period or before the
year 2000 a second hotel will be under construction, inm=ing the improvement value by
an additional $2.5 to $3.0 million The automobile dealership, anticipated to be
constructed and in use by the end of 1999, will have an estimated value of $2.0 million
including land, building and FF&E. .
In total, King Management, Inc. estimates the taxable value of improvements, land and
FF&E to exceed an amount of $12 million by the end ofthe year 2000.
Providing a too aggressive development plan may cause the establishment of a bad tenant
mix with in the development parcel and/or poor development judgement by Ring
Management, Inc. The proper development and tenant mix is in the highest and best
interest of the Developer and the City of Kalispell. It is in the City of Kalispell's best
interest to encourage high sales volume development. within its boundaries. All of these
projected uses offer the right tenant mix for the south entrance to Kalispell.
It has been visible from past development in Evergreen, that the City of Kalispell should
be encouraging development within its present boundaries rather than seeing
development take place outside city limits. Placing too high of expectations on the
property may discourage development rather than encourage development.
Offer
King Management, Inc. and assignees would like to offer the City of Kalispell, Montana
One Mullion Three hundred Sixty -Four Thousand Dollars ($1,364,000.00) cash at
closing for that parcel of land known as Daley Fields consisting of approximately 15.6
acres.
Broker Fees
Ring Management, Inc. agrees to agency representation, and broker's or agent's fees will
be paid at the time of closing from the proceeds placed in escrow by the Buyer for the
proposed price of this land. The broker's fees will be paid out of and are included in the
total price offered for Daley Fields.
Exhibit "A" Site Plan
Exhibit "B" Purchase Agreement
Exhibit "C" Legal Description
Exhibit "D" Agency Disclosure Statement
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KELLY ROAD
THIS AGREEMENT is made and entered into as of this 141b day of August 1997 by and
between the City of Kalispell, Montana (hereinafter the "Sellers"), and King Management, Inc.
and/or its assignee, a Montana Corporation with its principle office located at 2540 Phyllis Lane,
Billings, Montana (hereinafter the "Buyer").
WHEREAS, Sellers are the owners of the subject property which is located in the City of
Kalispell, Montana; and
WHEREAS, the Buyer desires to purchase from the Sellers the subject property which is
located in the City of Kalispell, Montana, for construction of various commercial buildings as
outlined in the proposal of which this Purchase Agreement is a part; and
WHEREAS, the Sellers and Buyer desire to set forth their understanding with regard to
the purchase of the land by the Buyer,
NOW, THEREFORE, the parties agree as follows:
1. Sellers agree to sell and Buyer agrees to purchase from Sellers the real estate located
in Kalispell, Montana legally described as follows:
Parcel 4 as shown on COS #12729, Flathead County, Montana. (see Exhibit "C")
(herein sometimes referred to as the "Premises").
2. Purchase Price. The purchase price to be paid by Buyer to Sellers shall be in the
sum of One Million Three Hundred Sixty -Four Thousand Dollars ($1,364,000.00),
which purchase price shall include only the Premises.
3. Payment of the Purchase Price. The purchase price shall be paid by Buyer to
Sellers at the following times and in the following manner:
A The sum of Sixty -Eight Thousand Two Hundred Dollars ($68,200.00) as an
earnest money down payment, put in escrow upon acceptance of this Purchase
Agreement.
B. The balance of the purchase price in the amount of One Million Two Hundred
Ninety -Five Thousand Eight Hundred ($1,295,800.00) shall be due and
payable to the Sellers at closing.
4. Default. In the event of any default hereunder by Buyer which is not cured within a
period of thirty (30) days following notice from Seller to Buyer that such default
exists, Seller's sole remedy shall be to cancel this Agreement and retain all Earnest
Money paid hereunder as liquidated damages for Buyer's breach. Sellers and Buyer
agree that, in the event of breach by Buyer, the damages to Sellers will be incapable
or very difficult of accurate estimation and that there had been a reasonable endeavor
by Sellers and Buyer to fix fair compensation and the Sixty -Eight Thousand Two
Hundred Dollars ($68,200.00) Earnest Money as liquidated damages to Sellers bears
a reasonable relation to probable damages and is not disproportionate to any damages
reasonably to be anticipated. Nothing contained herein shall deprive Buyer of the
remedy of specific performance. The obligations of Buyer are intended to be non -
recourse. Time is of the essence.
If a dispute arises between the parties hereto concerning this Agreement or any
provision thereof or obligation thereunder, then the non -prevailing party shall pay any
and all costs and expenses incurred by the other party in enforcing or establishing its
rights hereunder, including without limitation, court costs and reasonable attorney's
fees and disbursements, which obligations shall survive the delivery of the Deed.
5. Closing Date. Sellers and Buyer mutually agree to close said sale within ten (10)
days of acceptance of offer, unless the parties mutually agree to extend the closing
date.
6. Possession. Possession of the Premises shall be given to Buyer by Sellers at closing.
7. Title Insurance. Sellers agree to provide to Buyer an owner's commitment for title
insurance) on ALTA Form 1990-B) insuring the Premises purchased hereunder for
the sum of One Million Three Hundred Sixty Four Thousand Dollars
($1,364,000.00), insuring good and marketable title to be in the Seller's name;
subject, however, to easements and rights -of -way for utilities, highways and storm
sewers of record. The cost incurred in obtaining the title insurance shall be paid by
the Sellers.
8. Sellers' Representations and Warranties. As a further inducement to Buyer to
enter into this Purchase Agreement and to consummate the transaction contemplated
by this Purchase Agreement, Sellers, and each of them do hereby represent and
warrant to Buyer and agree as follows:
A. Sellers have good and insurable title to the premises and the personal property
and all other property to be transferred hereunder. The title to be granted and
conveyed shall be merchantable, fee simple title, free and clear of all matters
except those exceptions disclosed in the Title commitment„ if approved, or
otherwise waived by Buyer or provided for herein;
B. Sellers have full right, power, and authority and have taken all requisite action
to enter into this Purchase Agreement and to grant, sell, and convey the
premises and the personal property and all other property to be transferred
hereunder to Buyer as provided in this Purchase Agreement and to carry out
its obligation as set forth in this Purchase .Agreement;
C. Sellers have not received notice from any city or other governmental authority
of any violation affecting the premises and the personal property and all other
property to be transferred hereunder except as disclosed in writing to Buyer
prior to the execution of this Purchase Agreement, if any;
D. There are no pending improvement liens or special assessments to be made
against the premises by any governmental authority or third party, except as
otherwise disclosed in writing to Buyer prior to the execution of this Purchase
Agreement;
E. No work has been performed or is in progress by Sellers or at the direction of
Sellers, and no materials have been furnished to the premises or any portion
thereoZ which might give rise to mechanic's, materialman's, construction, or
other liens against the premises;
F. No consent or approval of any person, entity, or government agency or
authority is required with respect to the execution and delivery of this
Purchase Agreement by Sellers and, as of the closing date, no un-obtained
consent or approval will be required with respect to the consummation by
Sellers of the transactions contemplated hereby or the performance by Sellers
of its obligations hereunder,
G. Sellers are not and have never been a "foreign person", as that term is used in
Section 1445 of the Internal Revenue Code of 1954, as amended;
H. Sellers shall not grant, sell, convey, or encumber the Premises and the
personal property and all other property to be transferred hereunder prior to
the closing date;
I. The Premises and the personal property and all other property to be
transferred hereunder are not subject to any leasehold interest and Sellers
further agree that Sellers will not enter into any lease of the Premises and the
personal property and all other property to be transferred hereunder or any
part thereof,
J. There are'no disputes concerning the lines and corners of the Premises, which
lines and corners are clearly marked and there are no encroachments upon the
Premises;
K. There is not indebtedness outstanding and no outstanding or unpaid bills
incurred for labor and material in connection with the Premises, or for the
service of architects, surveyors, or engineers in connection with the Premises;
L. All streets necessary to serve the Premises are being installed and will be
dedicated and accepted for use and maintenance by the closing date by
application to governmental entities and there are no pending street changes
that will materially alter such service to the Premises;
M. There are no taxes, assessments, or liens against the Premises for any present
or past -due taxes or for paving, sidewalk, curbing, sewer, or any other street
or other improvements of any kind, with the exception of real estate taxes
which are not yet due and payable;
N. As of the closing date, there will be no outstanding, pending, or threatened
suits, judgements, executions, bankruptcies, condemnation proceedings,
zoning changes, or any other proceedings pending or on record in any court of
any nature or before or by any governmental or administrative agency which
could in any manner now affect Buyer's title to, possession of or use of the
Premises and the personal property and all other property to be transferred
hereunder, or which could now or hereafter constitute a lien upon the
Premises and the personal property and all other property to be transferred
hereunder or materially or adversely affect or change the Premises and the
personal property and all other property to be transferred hereunder;
O. Sellers are not surety on any bond or indebtedness wherein through the default
thereof a lien against the Premises and the personal property and all other
property to be transferred hereunder would be created without further legal
action;
P. As of the closing date, there will be no recorded or unrecorded liens, security
interests, security agreements, or UCC financing statements against the
Premises and the personal and all other property to be transferred hereunder or
any part thereof; and
Q. The Premises are not subject to any federal, state, or local "Superfund" lien
proceeding, claim, liability, or action, or the threat or likelihood thereof for
the cleanup, removal, or re -mediation of any "hazardous substance" from the
Premises and Sellers have not caused and will not cause, and to the best of
Sellers' knowledge, there never has occurred the release, leak, discharge, spill,
disposal, or emission of any "hazardous substance" as of the date hereof As
used in this Purchase Agreement, "hazardous substance" means any substance
that is toxic, ignitable, reactive, or corrosive and that is regulated by any local
government, the State of Montana, or the United States of America.
"Hazardous substance" includes any and all material or substances that are
defined as "hazardous waste", "extremely hazardous waste", or a "Hazardous
Substance" pursuant to state, federal, or local governmental law including
without limitation, CERCL, SARA, RCR.A, the Clean Water Act, The OSHA
Act, or the Toxic Substance Control Act. "Hazardous -Substance includes,
but is not restricted to asbestos, petroleum products, nuclear fuel or materials,
known carcinogens, urea formaldehyde, foamed -in -place insulation, and
polychlorinated biphenyl (PCBs).
In the event that any of the representations and warranties set forth in this
Paragraph 8 are not true in any material respect as of the closing date or if
Sellers otherwise defaults hereunder, Buyer may terminate this Purchase
Agreement on or at any time prior to the closing date and the Earnest Money
shall be immediately returned to Buyer.
The warranties and representations set forth in this Paragraph 8 shall survive
the closing for the benefit of Buyer. Sellers shall defend, indemnify, and hold
harmless Buyer, and shall reimburse Buyer for, from, and against each and
every demand, claim, loss (including any diminution in value), liability,
damage, fine, penalty, cost, expense (including, without limitation, attorney
fees and consultant and expert fees imposed on or incurred by Buyer) directly
or indirectly relating to, resulting from, or arising out of any material
inaccuracy in any representation or'warranty set forth in this Paragraph 8.
9. Buyer's Representations And Warranties. Buyer represents and warrants as
follows:
A. That the Buyer has the right, power and authority to purchase the
Premises and the personal property subject to the terms and conditions
as provided under this Agreement, and to execute, deliver and perform
its obligations under this Agreement;
B. To the Buyer's actual knowledge,, there exists no action, suit, litigation
or proceeding which would limit the Buyer's ability to purchase the
Premises and the personal property and to perform the terms and
conditions of this Agreement.
10. Closing Documentation.
A At the closing, the Sellers shall deliver to the Buyer, a standard form
ofMontana Warranty Deed conveying title to the Premises; and
B. At the closing, the Sellers shall deliver to the Buyer a Bill of Sale
transferring to the Buyer all of the Sellers' rights, title and interest in
and to the personal property.
11. Operating Expenses, Costs, Charges And Property Taxes. The Sellers shall be
responsible and shall pay for all operating expenses which have accrued or shall
become due prior to the closing date. All operating expenses shall be read and
finalized, if reasonably possible, as of the closing date. All property taxes will be
prorated to date of closing.
12. Risk of Loss. Until the closing date, Sellers shall bear the risk of loss to the Premises
and to the personal property due to fire or any other casualty. Accordingly, until said
closing occurs Sellers shall keep in full force and effect a policy insuring the
Premises and personal property against loss by all risks insured against under a
standard form of all risk coverage.
13. Zoning. The Sellers represent that the property is properly zoned for all uses outlined
in the proposal of which this Purchase Agreement is a part for the City of Kalispell,
Montana.
14. Highway Entrance. Purchase is subject to satisfactory review by Buyer of any
changes or curb cuts made by review of the highway department.
15. City of Kalispell. Purchase is subject to satisfactory review by Buyer of any changes
made by review of City of Kalispell or other governing agency.
16. Soil Tests. Purchase is subject to satisfactory review by Buyer of soil test.
17. Condition of Property. Sellers will, prior to closing, remove all improvements on
Premises, including but not limited to backstops, bleachers, etc.
18. Representation by Agency. The Buyer agrees to agency representation and is
represented by Gregg Schoh, RE/MAX Land & Lake Realty, Inc.
19. Brokerage Fees. Broker's or agent's fees will be in the amount of 8.00/a of the total
purchase price paid at time of closing from proceeds place in escrow by the Buyer
with full disclosure. Brokerage fees are included in and will be paid out of the total
price offered.
20. Notices. Notices shall be given under this Agreement upon delivery to the addresses
set forth below either by certified mail or by delivery from a nationally -recognized,
overnight delivery service. Notices shall be delivered to the following addresses:
To Sellers: City Clerk of Council
Kalispell City Hall
Kalispell, MT 59901
To Buyer: King Management, Inc.
2540 Phyllis Lane
Billings, MT 59108
MI
Gregg Schoh
RFJMAX Land & Lake Realty, Inc.
7135 Hwy 93 South
Lakeside, MT 59922
21. Binding Effect. This Agreement shall be binding upon the parties hereto, their heirs,
successors and assigns.
Dated the year and date first above written.
EXHIBIT "C"
A 681,758 square foot rectangular parcel of land (15.651
acres) commencing at the northwest corner of the Southeast
1 /4 of the Northwest 1 /4 of said Section 20; thence along the
easterly line of said aliquot part South 00°01'58" West
148.88 feet to the POINT OF BEGINNING of the parcel being
described; thence south 33'06' 10" East 1200.75 feet to the
northwesterly line of that parcel described as Tract II In
Document No. 92021 16120, records of Flathead County,
thence along said northwesterly line of said tract 11, North
56"55' 16" East 439.83 feet to the southwesterly right-of-way
line of U.S. Highway No. 93; thence along said southwesterly
right-of-way line, North 33'04' 19" West 1568.07 feet to the
southeasterly line of that parcel described In Book 372
Page 172, records of Flathead County, thence along said
southeasterly line of said parcel, South 56"52'57" West
300.01 feet to the northeasterly line of that parcel described In
Book 507, Page 116, records of Flathead County; thence along
said northeasterly fine of said parcel, South 33' 15'45" East
60.37 feet to the southeasterly tine of said parcel; thence
along said southeasterly fine of said parcel, South 56"48'58"
West 140.83 feet, thence South 33'06' 10" East 306.49 feet
to the Point of Beginning, containing 15.651 Acres of land, all
as shown on Certificate of Survey No. 12729, which is
herewith incorporated and made a part of this legal description.
Reserving therefrom a non-exclusive roadway and utility
easement, being 30 feet in width, lying northwesterly of and
along the most southeasterly fine of the above described
Parcel 4.
Reserving therefrom a non-exclusive roadway and utility
easement, being 30 feet in width, lying southeasterly of and
along the most northwesterly fine of the above described
Parcel 4.
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Although the buyer agent is pr
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EXHIBIT "D"
A buyer agent is obligated to a seller as follows:
the buyer with respect to
to
(1) to disclose to a seller any adverse material facts that concern the ability of the buyer
to perform on any purchase offer and that are known to the buyer agent;
(2) to deal in good faith with the seller; and
(3) to comply with all applicable federal and state laws, rules, and regulations.
"Adverse material fact" means a fact that should be recognized by a broker as being of
enough significance as to affect a person's decision to enter into a contract to buy or sell
real property and may be a fact that materially affects the buyer's ability or intent to
perform the buyer's obligations under a proposed or existing contract.
Date: A N 2 . /'K 1777
Seller:
NOTICE: The terms appearing in this document, including but not limited to Seller Agent,
Buyer Agent, Dual Agent, Statutory Broker, Sub -Agent and Adverse Material Fact,
are specifically defined in Title 37, Chapter 51 of the Montana Code Annotated and
are not intended to create a relationship or obligations other than as so defined.
s
for
DALEY FIELD
Kalispell, Montana
Presented by:
Rosauers Supermarkets, Inc.
West 1815 Garland Avenue
Spokane, Washington 99209
August 12, 1997
August 11, 1997
Mr. Clarence W. Krepps
City Manager
The City of Kalispell
P.O. Box 1997
Kalispell, MT 59903-1997
Re: Daley Field Redevelopment Opportunity
Dear Mr. Krepps:
Rosauers is pleased to provide the accompanying Offer package on the Daley Field
site. We have been serving the south Kalispell and north lake communities for
nearly 30 years and look forward to many more.
With our existing store's lease expiring soon, and site constraints thereon, we
cannot expand at that location. The timing of your Offering and the potential that
Daley Field presents as a retail location are outstanding. The site provides us an
opportunity to build a 50,000 square foot Rosauers Food and Drug store to take
the place of our existing facility. We have the ability to build an optimal size store
allowing us to provide our full line of services and offer customer selection from
more than 40,000 individual products.
Daley Field offers a unique opportunity for the City of Kalispell to facilitate a full
site community retail center. While we are looking specifically to an approximate
5+ acre site, the site lays out well for many other retail users to join us. We look
forward to working with the City and other interested tenants in fulfilling this
vision. In doing so, we both win.
We look forward to the City's decision to accept our Offer and welcome the
opportunity to work with you towards a quick closing on this parcel.
Sincerely,
Larry D. Geller
President/CEO
LDG/cg
Executive Summary ......................... Page 1
The Offer ................................. Page 2
Tax and Economic Impact .................... Page 4
The Proposed Development ................... Page 6
The Development Team ...................... Page 8
Appendix:
Artist Rendering of Similar Rosauers Grocery Store . Page 11
Preliminary Site Plan ....................... Page 12
Redevelopment Proposal August, 1997
Daley field Page ii
Having served greater Kalispell for nearly 30 years, Rosauers Supermarkets, Inc. is proud to
renew our commitment to providing the south Kalispell and north lake residents with the quality
products and service they have come to expect from us. Our existing lease expires in the year
2000, and due to site constraints, we cannot expand at that location. However, the timing of the
Daley Field offering works well in providing us the opportunity to build a new, larger facility that
will take the place of our existing store.
The Daley Field site offers great potential not only for Rosauers, but for the City, its residents,
and the tourist trade. With Rosauers as the anchor tenant, there is a very real opportunity for the
entire Daley Field site to be developed as a good sized neighborhood retail center. This certainly
would be the highest and best use of the site, maximizing not only property values and related ad
valorem tax revenues, but also bringing many new jobs, providing economic enhancement and
increased vitality to the south Kalispell area, and creating an attractive "gateway" at the City's
south entrance.
As set forth herein, we want to acquire somewhere between 5 1/4 and 5 3/4 acres of the Daley
Field site, on which we will build a new 50,000 square foot Rosauers Food and Drug Store. We
are offering to pay a fair price, a minimum of $743,311, and will pay all cash at the time of closing.
Our schematic site and store designs are based on providing impetus to a "full site" neighborhood
retail center. We offer to work on a proactive basis with the City and adjoining property owners
in an effort to maximize the site's potential through possible in -line construction and joint use
agreements.
Our construction schedule will coincide with the current timing of the Highway 93 and Third
Avenue projects. While we cannot commit to a formal store design or construction method at
this time, we can assure the City that it will be of first class design, workmanship, and materials.
Both Rosauers and the City should be proud to have it as the centerpiece of this exciting
development.
Redevelopment Proposal August, 1997
Daley Field Page 1
I FEE 19011
Purchaser
A to -be -formed Montana Limited Liability Company, whose initial primary member will be
Rosauers Supermarkets, Inc.
Site
Not less than 5.25 acres (228,711 square feet) and not more than 5.75 acres, beginning at the
centerline of the new Third Avenue East extension ("New Private Lane") onto the property
and continuing south until adequate site area is achieved. The east and west property lines will
be the Highway 93 frontage and airport property line, respectively.
Offer Price
Minimum price of $743,311 for the 5.25 acres, plus $3.25 for each additional square foot as
determined by survey of the final site configuration.
Terms
Payable ALL CASH AT CLOSING, including the $37,166 in Earnest Money paid herewith.
In the event this Offer is not accepted, or the conditions required herein are not met, said
Earnest Money shall be returned to Purchaser. It is the preference of the Purchaser that,
during the pendency of this transaction, the Earnest Money be placed in an interest -bearing
account, with any interest thereon accruing to the benefit of the party entitled to the Earnest
Money.
Redevelopment Proposal August, 1997
Daley Field Page 2
Conditions
Pre -Closing Items
Completion as soon as possible of mutually acceptable Developer Agreement with the City of
Kalispell, specifying all things necessary for us to determine our final development plan,
including, but not limited to, such items as code requirements, utilities (including sanitary and
storm sewer requirements), environmental review, setbacks, stoplight, etc.
Purchaser shall enter into a satisfactory joint use agreement with the property owner to the
north of the our proposed site as it relates to the New Private Lane and its shared access,
maintenance, parking, and other related items.
Other Items
Provided Third Avenue is realigned and the new Third Avenue stoplight is in place (or the
City's assurance that it will be in place by June, 2000), Purchaser will begin construction in the
Fall of 1999, with opening scheduled for June or July of 2000. However, the new stoplight
must be assured to be in place before construction will commence.
At closing, the City will record a "restrictive covenant" on the balance of the Daley Field site
that prohibits the sale, lease, development, and/or operation of any competing grocery store
and/or pharmacy. This restrictive covenant shall expire if Rosauers is not in operation by
January 1, 2001, or one year from the date of completion of the Third Avenue realignment
and new Third Avenue stoplight, whichever is later.
Purchaser shall not be subject to any future assessments for the new Third Avenue realignment
and stoplight, the proposed new stoplight at the south end of the Daley Field site (Kelly
Road), the costs associated with the widening of Highway 93, or any storm sewer costs of the
State or the City.
If the New Private Lane has not been improved prior to the time of the Rosauers
development, Purchaser will agree to pave and curb it as a cost of our development.
Subject to the use and configuration of the development to the immediate south of our site,
Purchaser will allow cross -over ingress and egress for the convenience of each others
customers.
Purchaser will allow the use of our site by the City as a ball field for the 1998 season provided
City will indemnify,, Purchaser from any liability.
Closing Items
Rosauers is prepared to close this transaction within 15 days from the date that the above
Conditions have been resolved in writing between the parties. We recognize the City's desire
to close a transaction as soon as possible and are prepared to work diligently towards this goal.
Redevelopment Proposal August, 1997
Daley Field Page 3
While the proposed development of the Rosauers grocery store takes maximum advantage of
the highest and best use for that specific parcel, the remaining balance of the site should inure
benefit from the "draw" that our development will bring to the location. Other retailers
generally congregate around such anchor tenants, and thus the balance of the site should tend
toward retail as well. This type of higher density retail is a large contributor of income to local
municipalities in many ways. The City of Kalispell will benefit not only from the additional ad
valorem taxes generated directly by such retail development, but the whole south end market
should be re -energized, overall property values should increase, and more jobs will be
produced than would be the case with a lesser development.
As proposed, the subject development will be a substantial contributor of ad valorem taxes for
the tax increment district. We calculate the first year taxes due as being $142,757, as follows:
Market Value - Land
$
800,000
Market Value - Improvements
3,200,000
TOTAL MARKET VALUE
$4,000,000
Class Four Classification
x
.0386
TAXABLE VALUE
$
154,400
Market Value - Personal Property
$2,000,000
Class 8 Classification
x .08
TAXABLE VALUE
$
120,000
TOTAL NIARKET VALUE
$
2741400
Combined Mill Levy 1996
x
.520252
AD VALOREM TAX DUE 1996
$
142,757
Redevelopment Proposal August, 7997
Daley Field Page 4
The new, larger Rosauers store as proposed for the site is expected to employ a total of 95
people, which is 26 more than work at our current store. It is expected that all existing
employees will work at the new store when it opens. With this as the "anchor" development
for the entire Dalev Field site, the City stands to further gain significant net benefit in
employment, both directly and indirectly, as other retailers join us at the site to offer the
products and services needed by the south Kalispell and north lake communities.
Since Rosauers only leases, and does not own their current store location, no commitments
can be made to the future of that location. While it has served Rosauers and its Kalispell
customers well over the past many years, the building is too small to provide the optimum
level of service and products to meet our current customer demands. It is, however, in a very
good location and the building configuration should be attractive to other retailers and
business users. Upon Rosauers' lease expiration, it is very likely that a new tenant, or tenants,
will be found and the building updated and improved to accommodate the new use. Not only
will there be additional new ad valorem taxes generated by this, but there should be additional
employment for the area. In essence, the City stands to win "twice" through the benefits of
our Offer.
Redevelopment Proposal August, 1997
Daley Field Page 5
Rather than consider only our own best interest in site and store design, we have attempted to
create the potential for increased value and economic enhancements for the entire Daley Field
site. We feel south Kalispell is at a critical point in its development future. With a Rosauers
super market as the anchor tenant, there is an opportunity for the development of a contiguous
15.6 acre community retail center. The City is in a good position to take maximum advantage
of the parcel's potential for highest and best use, related ad valorem taxes, new jobs, and
participate in the creation of an attractive property that will enhance the south entrance to the
City.
As designed and further set forth herein, we have set up our store to be the anchor tenant in a
potential "full site" retail development. While we are not in a position to take down any
additional land on a speculative basis, we trust that the City will have the foresight to consider
how best to manage the sale of the remaining site in a way that takes advantage of the
opportunity presented through this Offer.
The new Rosauers Food and Drug Store proposed for the Daley Field site will be very similar
and resemble the existing Rosauers super stores in Missoula, Lewiston, and Spokane. All of
these stores offer our customers excellent service and product selection at competitive prices in
a clean, contemporary store environment.
Our new store will be approximately 50,000 square feet in size, which is about 38% larger
than our current store in Kalispell. It will feature a number of departments:
The Deli/Bistro will be larger than most and offer a wide selection of hot and cold
foods prepared in the store for take-out or consumption in a large dining area.
The Bakery will offer a tempting selection of products made from scratch. We will also
sell locally produced specialty products such as bagels and European crusty breads.
Redevelopment Proposal August, 1997
n ,t_., c;,J.J
• Our Meat Department will offer USDA Choice meats and the best of seafood, both at
our Self -Service and Service Meat counters.
• Rosauers' Produce Departments are recognized for excellence of quality, selection,
service, and price.
• The Pharmacy will continue to provide professional counseling with every
prescription.
• Our Grocery and General Merchandise Departments offer an amazing variety of
products. There will be approximately 40,000 different products in the store to choose
from.
• Rosauers was among the first supermarkets in the nation to ally themselves with
boutique tenants such as banks, video rentals, espresso bars, etc. We will seek quality
tenants to provide such extra services to our Kalispell customers.
Some of the major areas of construction, and description of what will be provided within our
store, are as follows:
• The building exteriors will be of contemporary style, similar to the enclosed architectural
rendering of another Rosauers store. Because of the site configuration, the store will
need two "fronts," one towards Highway 93 and the other to the north. There will
likely be two entrances to the store, both emphasizing the northeast corner.
• Exterior walls will be one of three systems, depending on local market availabilities and
seasonal factors:
✓ Sand -textured stucco on a light metal system.
✓ Tilt -up concrete with a smooth finish.
✓ Broken -faced concrete masonry.
• It is anticipated the exterior color will be off-white, with an accent banding. Metal
roofing and wall copings will also be an accent color, probably a "brick red" color as used
in many Rosauers locations.
• Building signage will be similar to that on our existing Kalispell store.
• Building illumination will be limited to pathways and/or landscape lighting and
entrances. Parking lot lighting will be contemporary pole -mounted metal halide
fixtures.
• The roof system will consist of a mechanically attached, non -reflective EPDM
membrane on metal decking with steel bar joists and truss girders.
Redevelopment Proposal August, 1997
Dalev Field
The proposed development will involve three entities:
Rosauers Supermarkets, Inc. - Rosauers will lease the property pursuant to a long term lease
from the ownership entity, a to -be -formed Limited Liability Company ("LLC"). The
minimum lease term will be 20 years, with extension options available beyond the minimum
term. Rosauers will fixture the store, provide inventory, maintain the premises, and operate
the 50,000 square foot facility.
Kiemle & Hagood Company - Kiemle & Hagood will manage the development of the
property, and arrange and sponsor the investment group which will develop and own the
property through the LLC.
Ownership LLC - This entity will acquire the Daley Field land from the City, and enter into a
long-term development and lease agreement with Rosauers for the improved property.
Initially, Rosauers will be the primary LLC member. However, as we prepare for
construction, a number of individual investors will replace Rosauers as the.LLC members.
The same parties and a similar structured relationship was recently used to develop a like -sized
Rosauers store in Lewiston, Idaho. Based on the mutual success of that project, Kiemle &
Hagood Company has become the developer of choice for Rosauers. Both parties look
forward to continuing their successful track record with the new store in Kalispell.
Rosauers Supermarkets, Inc. is a regional supermarket chain, headquartered in Spokane, with
18 stores located in Washington, Oregon, Idaho, and Montana. We operate supermarkets
under three different banners - Rosauers Food and Drug (14 stores - conventional), Super 1
Foods (2 stores - warehouse hybrid), and Huckleberry's Fresh Markets ( 2 stores - natural
foods). We have been providing service to the Kalispell market for 30 years, having opened
our store there in September of 1967.
Redevelopment Proposal August, 1997
Daley Field Page 8
The company was founded and incorporated in 1949 by Mert Rosauer. We are proud to be
among the top three supermarkets, in terms of market share, in each of the markets where we
do business. Our principal competitors are the national chains, namely Safeway and
Alberstons. We employ approximately 1,600 full- and part-time employees throughout our
system.
In July, 1990, Rosauers management and an employee stock ownership plan (ESOP)
purchased 15 stores from URM, a grocery wholesaler, for $25.5 million in a stock transaction.
(URM had previously purchased the stores from Mert Rosauer.) Since then, the company has
built one new store, and acquired two new stores, to bring the total number of stores under
ownership to 18.
Thirty three members of Rosauers management own common stock in the company
representing 17% of the outstanding shares. The ESOP owns the remaining 83%. All
employees took an average 10% reduction in their wages over the repayment term of the
initial acquisition loan. We are proud to report that all wages have recently returned to local
market rates as the original loan was repaid in full on March 31, 1997.
Our conventional and warehouse stores range in size from 30,000 to 60,000 square feet, and
average 45,000 square feet. Approximately 65% of our store area is devoted to sales area, with
the balance used for inventory storage and mechanical needs. These stores offer a full line of
groceries, meats, produce, dairy, general merchandise, delicatessens, scratch bakeries, and
pharmacies. All but two of these stores have a full service pharmacy, five have a full service
restaurant, seven have an in-store bank, and many have contract post offices and espresso bars.
The two natural foods stores have all of the same departments but feature organic produce and
grocery products, hormone -free meats, and health and beauty products made from natural
ingredients without animal testing.
All of our stores are modern, well maintained, and carry more variety and higher quality
merchandise than the competition. All stores have ATM's and also accept credit or debit cards
through our checkstands. Half of the stores are open 24 hours a day, while the others are open
from 6 am to midnight, seven days a week. Each is equipped with electronic scanning registers
which communicate daily with the company's IBM AS400 computer.
Kiemle & Hagood Company, also located in Spokane, is one of the Inland Northwest's
leading full service commercial real estate companies, specializing in the management, leasing,
selling, counseling, and development of commercial, multi -family, and industrial properties.
The company's corporate staff of 55 professionals includes CPMs, CCIMs, CPAs, an SIOR,
and a highly efficient and talented support staff. At present, they manage in excess of two
million square feet of commercial, office, and industrial properties and over 2,600 apartment
units in the greater Spokane area. In addition, they have continuously been a sale volume
leader within their market area.
In 1993, Kiemle & Hagood Company developed a new store for Rosauers in Lewiston,
Idaho. The successful relationship created by that venture resulted in Kiemle & Hagood
Redevelopment Proposal August, 1997
Daley Field Page 9
becoming Rosauers preferred developer for their stores. The subject transaction will be
structured along the same lines as the Lewiston project.
Other recognizable developments completed by Kiemle & Hagood Company include Itron
Corporation's World Headquarters, Deaconess Medical Buildings No. I and 2, North
Spokane Financial Center, CXT Paver Plant, and Northpointe Medical Park.
Major management properties include Washington Mutual Financial Center, US Bank
Building, Paulsen Buildings, North 9 Post Building, the Sacred Heart Medical Center
Buildings, Holy Family Medical Building, and the Episcopal Diocese housing projects
throughout the area.
Major lease/sale projects include the Itron Headquarters, Seafirst Bank Credit Card Facility,
the Spokane Boeing site, SAFECO Insurance site, the Flour Mill, US Bank Building (twice),
and the Washington Mutual Financial Center.
Redevelopment Proposal August, 7997
Daley Field Pacie 10
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11
MEMO
Date: August 26, 1997 DRAFT
To: Larry Gallagher, PECDD Director
From: Diana Harrison, Zoning Administrator
RE: Zoning Analysis of Daley Field Proposals
Your memo of August 20, 1997, asks me to look at the planning and zoning issues of each of the two
proposals for the Daley Field site. In the following paragraphs I have attempted to address each of the
proposals and each of the separate uses proposed. I have identified the parking, landscaping and setback
issues as best I could with the information provided.
Proposal by King Management for the Daley Field Site
The proposal by King Management Inc. to develop the Daley Field site consists of nine (9) separate uses.
It appears from the site plan, that the intent is to subdivide the property into nine (9) separate parcels of
land, and to provide cross easement agreements for access. The B-2, General Business zoning district has
a minimum lot area requirement of 7000 square feet, with a 70' minimum lot width requirement. Although
the site plan that has been submitted does not show any property dimensions, it appears that all of the
parcels would meet these minimum requirements. The B-2 zoning district has setback requirements as
follows: Front Yard - 20 ft., Side Yard - 5 ft.; Rear Yard - 20 ft.; & Side Corner - 15 ft. It is my
understanding, that the developer was aware of the required setbacks when preparing the site plan.
It is the intent of the B-2, General Business zoning 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.
The following are the proposed uses on the Daley Field site by King Management, Inc.:
A.) Auto Dealership - Automobile sales are a permitted use within the B-2 zoning district. The required
parking is one (1) space per 1,500 square feet of gross floor area plus one (1) space per employee on the
largest shift.
B.) Airport or Automotive Service Business - This is a permitted use in the B-2 zoning district. An
automotive "body shop" is not included under this use, and is not permitted in the B-2 zone. This use
requires one (1) parking space per 400 square feet of gross floor area plus one (1) space per employee on
the largest work shift.
C.) Hangars and/or Office/ Retail Space - Hangars are not a permitted use in the B-2 zone. The
developer would have to apply for a "text amendment" to the zoning ordinance to make "hangars" a
permitted use in the B-2 zoning district. A text amendment would require a hearing in front of the Planning
Board and an ultimate decision by the Kalispell City Council. Although the FAA is not generally
supportive of "through the fence operations", it would ultimately be the decision of the Airport Authority
whether or not to allow access to the runway from the Daley Field site. If a decision was made by the
Airport Authority to allow this, the FAA would most likely place some strict controls on the access. The
FAA would encourage the Airport Authority to have a written agreement with the owners of the hangars,
that they pay their share of operation and maintenance costs for airport facilities. It has been the intent of
the City and the Airport Advisory Committee to fence the entire perimeter of the airport.
Office space and retail space have different parking requirements, and it is based on the type of use and the
size of the building. Parking requirements would have to be determined once there is a firm proposal from
the applicant.
D.) Convenience Store/Gas Station/Casino - A convenience store is a permitted use in the B-2 zone, as
long as it is under 3,000 square feet. The gas station would be considered an accessory use to the
convenience store. Parking requirements for a convenience store are one (1) space per 100 square feet of
gross floor area. A casino is a conditionally permitted use in the B-2 zone. Generally an establishment is
not considered a casino when the premise contains no live card games, has less than six (6) gambling
machines, and the gambling devices are clearly incidental to the primary use of the establishment.
E.) Quick Lube - This is a permitted use in the B-2 zone. Required parking is three (3) spaces per service
bay.
F.) Restaurant / Pizza Parlor / Diner - The site plan shows these as three (3) separate uses on three (3)
separate parcels. Each of these is a permitted use in the B-2 zone. If the restaurants are less than 4,000
square feet in floor area, they require one (1) space per 100 square feet of gross floor area.
G.) Hotel - This is a permitted use in the B-2 zone. Hotel parking requirements are one (1) parking space
per sleeping room plus one (1) per each two (2) employees.
It is my understanding that the developer plans on submitting a new site plan that will show the proposed
parking layout and the size of the proposed structures. This site plan should also incorporate the proposed
landscaping of the parking areas. The zoning ordinance requires that a minimum of five percent (5%) of
the total parking area shall be landscaped. The current site plan does not show any landscaping of the
parking areas, but does show a 20' green strip along the Highway 93 boundary, which is especially
encouraged along the roadway.
One other item that needs to be addressed, is the height of the proposed buildings. With the Kalispell City
Airport being located adjacent to this property, there are height restrictions in place so that the buildings do
not encroach into the transitional zone of the airport. From the rear property Iine (West property line) there
is a 7:1 height transition zone. This means that for every T the building is away from the property line, it
can go up 1' in height. The Kalispell Public Works Department will survey this property and determine
elevations, so that we can determine the maximum elevation for a structure.
At this time, it is difficult to determine whether this project meets all of the requirements of the Kalispell
Zoning Ordinance. I am hopeful, that the revised site plan will be drawn to scale and provide new and
additional information so that it can be determined what the parking, landscaping, and building height
requirements will be for this project.
Proposal by Rosauers Supermarkets, Inc, for the Daley Field Site
The proposal by Rosauers Supermarkets, Inc. to develop the Daley Field site is to construct a new 50,000
square foot supermarket to take the place of their existing Kalispell facility. According to their proposal,
they will only purchase a portion of the site, leaving two (2) parcels available for future sale. Although they
do not show cross easements on the site plan, they have agreed in their proposal to provide easement
agreements to buyers of the remaining two parcels. The parcel they would like to purchase greatly exceeds
the lot size requirements of the B-2, General Business zoning district. According to the site plan that was
submitted by Rosauers, they are located 20' back from the rear (West) property line, which is the required
zoning setback.
Although the site plan does not indicate the height of the building, they were aware of the restrictions that
the airport transitional zone placed on the building. The 7:1 transition zone begins at the rear (West)
property line, and it has been determined that a 20' building could be built at that setback line. If the
elevation is higher at that point than it is at the runway centerline, they may possibly have to do some
excavating so that they do not exceed the height limitations. Once the Kalispell Public Works Department
determines the elevations for the property, we can determine the maximum building elevation at the 20'
setback line.
The intent of the B-2, General. Business zoning district is 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 o f the tourist and
traveler.
The following is the proposed use on the Daley Field site by Rosauers Supermarkets, Inc.:
A.) Supermarket - This is a permitted use in the B-2 zoning district. The required parking is one (1)
space per 200 square feet of gross floor area
The site plan that was submitted by Rosauers shows that there will be 265 parking stalls. The zoning
ordinance requires a minimum of 250 parking spaces, so they are exceeding that minimum requirement by
15 spaces. Although the percentage of landscaping is not calculated on the site plan, it appears that they
meet and/or exceed the 5% landscaping requirement of the zoning ordinance.
It appears from the site plan that has been submitted by Rosauers, that the project meets most, if not all of
the zoning ordinance requirements. I would ask that Rosaurs submit elevation drawings of the building, so
that I can determine whether it meets the airport transitional zone requirements. I would also ask that they
calculate the percentage of landscaping of their entire parking area.
(Kalispell Parks Dept. & Public Works Comments to be Incorporated)
Date: August 26, 1997
To: Larry Gallagher, PECDD Director
From: Ross Plambeck, Redevelopment Manager
RE: Daley Field/Analysis of Proposals
Submittal Requirements & Selection Criteria
Your memo of August 20, 1997, asks me to "comment on the overall site planning and aesthetic
considerations" of the two proposals. The DALEY FIELD OFFERING DOCUMENT identifies
specific criteria for evaluating "Proposals that represent architectural and site planning
excellence will be given preference in the selection process. " The document defines the
objectives and purpose for the evaluation as follows:
(a) Originality, flexibility, and innovation in site planning and development,
including architecture, landscaping, and graphic design of the proposed
development:
(b) Protect -and enhance the south entrance to the city and appeal to residents and
visitors and thus support and stimulate business and industry and promote the
desirability of investment and occupancy in business, commercial and industrial
properties
(c) Stabilize and improve property values and prevent blighted areas and, thus,
increase tax revenues
Criteria for evaluation of the proposals will be based upon the documents submitted in
the proposal and shall include the following information:
(a) A site plan drawn to scale, showing the proposed layout of all structures and other
improvements including driveways, pedestrian walks, landscaped areas, fences,
walls, off-street parking, and loading areas. The site plan shall indicate the
location of entrances and exits and the direction of traffic flow into and out of off-
street parking and loading areas, and indicate how exterior lighting, utility service,
and drainage will be provided.
(b) Architectural drawings or sketches, drawn to scale, including preliminary floor
Page 2
Daley Field/Analysis of Proposals
August 26, 1997
plans, with sufficient detail to permit computation of all site development criteria
(i.e. setbacks, lot coverage, off-street parking requirements, building heights). The
drawings will show all elevations of the proposed structures and other
improvements as they will appear upon completion, including all roof mounted
equipment, trash storage areas, and utility equipment.
(c) Specifications as to type, color, and texture of exterior surfaces of the proposed
structures, including signage, graphics, and illumination.
U.S. Hvvy 93 & the South Entrance to the City of Kalispell
The sale of both Haven and Daley Fields provide the opportunity to create quality development
to enhance the south corridor of the City. Both Offering Documents include selection criteria
based on design excellence. The south corridor is experiencing redevelopment and
improvements that are enhancing the aesthetics of the area. The Haven Field development
proposal accepted by the City includes architectural renderings and site plans showing a quality
development of office and retail uses. Good site planning and landscaping will enhance and
complement the major remodeling that has occurred at City Service South and The Gable's
Office Building (formerly Ace Powell Gallery). The widening of U.S. Hwy 93 South will also
bring visual improvements to the corridor with new landscaping, curb & gutter, controlled access
and sidewalk/bikepaths.
The Daley Field Proposals
Two proposals were submitted. The Rosauers Supermarket Proposal is for a 5+ acre
development for a single, stand alone 50,000 sq.ft. store, and a proposal from King Management
is for a 15+ acre motel/retail/restaurant development of various sizes and types. As proposed, the
two developments are quite different from each other. The following table attempts to define the
physical differences between them:
Proposal
King Management, Inc.
Rosauers, Inc.
Total Acres
15.65 acres
5-1/4 to 5-3/4 acres
Total Sq.Ft. of New
Development
80 unit motel, 5,500 sf restaurant,
the remainder is not identified
50,000 sf supermarket
Start of
Construction
Phased: July, 1998 to 2001 +
To coincide with Hwy 93 South
reconstruction: Spring `99 or later
Page 3
Daley Field/Analysis of Proposals
August 26, 1997
Proposal f King Management, Inc. I Rosauers, Inc.
Site Plan
Ingress/Egress
Architectural
Elevations
Conditions of Sale
Very preliminary schematic not
drawn to scale. No details on
parking or landscaping.
A north -south road in the middle
of the development will provide
interior access connecting with the
Hwy 93 intersections at Kelly
Road and 3'd Ave. East
None submitted. Based on
conversations with Broker Rep,
each development would be
utilizing their own generic identity
of strip commercial design.
Access to City Airport with small
plane storage and work area.
Agreement discusses no additional
assessments. However, the
property will be assessed for storm
water and street maintenance.
(Items 8D & 8M) '
Agreement states all zoning issues
resolved. However, the casino
may require a CUP and airplane
hangars are not permitted in the B-
2 zone. (Item 8N)
Preliminary schematic drawn to
scale indicating number of parking
spaces, circulation and areas of
landscaping.
A proposed new private road
extending to the west of the
realigned and signalized 3`d Ave.
East and Hwy 93 intersection will
provide access to the northerly
pads. The southerly part of the
parcel would be accessed from the
Kelley Rd. signalized intersection.
A perspective rendering indicates
a typical new style Rosauers with
architectural features on the
storefront only. The rendering
does not seem to coincide with the
site plan configuration.
Joint -use agreement of the new
private road with the developer of
the north property.
Stoplight at 3rd Ave. East must be
installed prior to construction.
No assessments for stoplight at 3'
Ave East nor Kelley Road.
No assessments for Hwy 93
improvements or storm drainage.
Restrictive covenants prohibiting
any other "competing" food/drug
stores on remainder of Daley Field
Page 4
Daley Field/Analysis of Proposals
August 26, 1997
Conclusions
Both proposals bring new added value to the old ballfield site. Both take advantage of the
planned intersections at 3' Ave. East and Kelley Road for ingress and egress. Both appear to use
standardized strip commercial design for building architecture and site planning.
Nearly a million visitors to the Flathead pass through this primary approach to the City, the
north -end of the Valley and Glacier Park. First impressions are important to the economic well
being of a community. The desires to stop, shop, eat, and stay are a combination of many factors
that include the right mix of uses, ease of access, adequate parking, and visual appeal. The
aesthetic quality of a project is the blending of good site planning, architectural excellence,
attractive signing, pedestrian access, and superior landscaping.
The City and the developers have a unique opportunity to construct a quality project on 15 acres
served by existing utilities and adjacent to a new, five lane highway with signalized intersections.
The current proposals do not take advantage of using architectural design and materials that
capturing the character of the Flathead Valley. The proposals do offer the same style of site
planning and building design you can find anywhere else in strip commercial design.
The City identified its desire for excellence and uniqueness of design in the Offering Document.
Neither proposal offers anything that distinguishes itself from each other, nor from anyplace else.
Both proposals should- look at the many award winning shopping center designs that have been
built in other communities to encourage them to do the same for Kalispell.
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