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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 M AS E `o- 30_-ROAD- ------ Et--� V � I 1 Ul CD �d a, 65 I. S � Q � 36 U7 tl_J 1 Y E/iSE14EN t 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. iI a.. J Y R ,n •n ifa �`� Y � ! Sat iio.moos .orrcr--."_--�------------------- 0 SHIM AN VI I / I `� tt g� 1 �{ i °^ yaps► r ► r �9 ., 6u� tTi \ W J cj t VS a s� U 11 J XKMDON Ads =am wcaru .ra .rtr tftKgig Js� al) V ^ i8R .• N SiIi. SJG .rtf's►r r.rcraws, 0 10 °j All i,v rct mots • Lti1S� ~ 1lR.�iw 47i1( �, 0O1 a.ec.�aoos x -f h i �r /P Ii rc o. ,.f .. r Although the buyer agent is pr you as specified below. 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 Awl J ft C!- tYr y, W � •1 f r ', 40 } ��,,�s t 3�_• r..r 7,_ 4 to •. ,, !'A� t. 4} ;n'rJ ° ''i .: < ,,,.,lL ♦,' ,r+,.au-�,�_ �� +�y � ,p� � �4 ; t � ,� r xk i 1>..,�, Y,,C Sri wF �tS 'r'y .+• - � ':J ,k.d3 t�,M•i'�E aP fie:. , t ` .. ., �►�.• �. .L I r L ,:.� � All" ���L.a��,- .+� �� a 2 1L"k 4 P f. i .r � I M 1 3 N3 H 0 S nL S83vsoH IPL O, x 1- *j ul 0O 0 0 J. I ----------- ------------------- - 0 <C 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. m N L. of m n zG) r tn D m DZ r —I X cr d 3 O 7 Qom. G 3 M Q ci W y -Oi Ort O N O N c to O rt D `C. x NOS O •) IQ n N -Oi� = n C D) D=1 .�_+, N 03 -01 (D y-� CD CL (p M (D N 17 C1 N CO 3 = CD 6 0�' K C O 0' CDM • o. o W *U N !A N fOD 'O O �/ rt o n to ;0 fA 0 y C y O. <- y 0 0 Q �..^ C• s tr N CD CD c CL N T CD N m 1 B CD (D O 'a'• CD n '. O 0 O O ' � n N Q,O N ua CL C N N 0. CD NCa O m NO aM N �m (D � (D N W_ a a a (D `O" `G 'G mmm N CD N " V/ N• !�Nv N p OO COO C? 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