5. National Flood Property Bid/RecommendationAgenda -November 17, 1997
AGENDA ITEM 5 -RECOMMENDATION FOR NATIONAL FLOOD SERVICES BIDS
BACKGROUNDICONSIDERATION: On October 7' we received bids, in response to our
advertisement, for the National Flood Services property that we now own. The advertisement
allowed bids to be submitted for the building only or the building and two lots used for parking. We
did not allow separate bids for the lots only. We received two valid bids for the property. The bids
submitted were:
A. William Lincoln, President of BL Steakhouse, Inc.- Building Only-$75,000
B. Phil Rygg - Building and out lots-$190,000
The proposals were, as per normal procedure, submitted to the Kalispell Development Corporation,
(the City's advisory board for development items). Their Executive Board and entire Board reviewed
and discussed the proposals. Their'unanitnaus recommendation is to reject the bids that have been
submitted. The reasons discussed were:
A. Neither Proposal submitted increased the density of the core area which is a
major objective of the Downtown Urban Renewal Plan.
B. Neither proposal furthered the general goals of the Urban Renewal Plan.
C. Neither proposal added employment opportunities above those that already
exist.
D. Neither proposal met the previously established appraised and fair market value.
E. Neither proposal increased the taxable valuation of the property.
Agenda -November 17,1997
In addition to the above, it is also their belief that the property will become more valuable as the KDC
site is developed by Irwin Davis in the next few months. This was the same logic that was used for
the lots that are on either side of the new Rosauer's location. You may recall that we intend to re -
offer those lots once the closing and architectural design for Rosauer's is completed and available
for the public review. Those lots will increase in value at that time.
The Irwin Davis Agreement has been signed. I have enclosed the marketing brochure for your
information. The building concept is still similar to that illustrated but will be a three story building.
KDC strongly believes that this development will increase the value of our property. I have also
enclosed a letter of recommendation from the KDC president, Lee Berger.
RECOMMENDATION: I have been in attendance at the meetings of both the Executive Board
and full KDC Board. The Board recommendation was reached without any direction or
recommendation from the City staff. After hearing these discussions, I concur with the KDC
recommendation to reject the proposals and re -offer the property next year after we see the
development of Irwin Davis underway.
ACTION REQUIRED: A MOTION to accept or reject the proposals is needed. If you accept the
bids, you should also give direction to the City Manager and City Attorney to prepare the documents .
for selling the property.
248 Third Avenue East • Kalispell, MT 59901
(ft) 752-7491 fax: (406) 755-8017
November 13, 1997
Kalispell City Council
City Hall
Kalispell, MT 59901
Council Members:
The Kalispell Development Corporation has reviewed the proposals received for the
National Flood property. William Lincoln, President of BL Steakhouse, Inc., submitted an
offer of $75,000 for the National Flood building only. Phil Rygg submitted an offer of
$190,000 for the National Flood building and the two parking lots. Irwin Davis &
Company submitted a letter of interest in the two parking lots.
The proposals were reviewed in line with the objectives the City was hoping to accomplish
with the sale. The purchase price alone was not to be the sole factor in disposing of the
property. Other factors such as the proposal's potential to further the goals and
objectives of the Downtown Urban Renewal Plan andf the benefit to the City and the
Downtown Urban Renewal Area were considered:;- -
Neither of the proposals submitted would increase density or taxable valuation through
redevelopment, add employment opportunities beyond what already exists, nor increase
the appraised fair market value of the subject property or adjacent property. These
objectives of the Downtown Urban Renewal Plan must be considered in evaluating
proposals.
Based upon these considerations, the Kalispell Development Corporation is
recommending a rejection of both offers received.
Sincerely,
Lee E. Berger, President
Kalispell Development Corporation
S
November 4, 1997
Clearance Krepps, Manager
City of Kalispell
Kalispell, MT 59901
Dear Mr. Krepps:
Please accept this letter as an addendum to my offer to purchase Lots 15, 16, and 17 of Block 36
Kalispell, MT dated October 6, 1997.
I hereby extend the deadline for response to November 30, 1997.
Thank you for your cooperation.
7rely
Philip J. Rygg
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"Protecting You is Our Business"
211 South Main Street • P.O. Box 73 • Kalispell, Montana 59903
Phone: 406-752-7000 • Title Department Fax: 406-752-7207 • Escrow Department Fax: 406-257-5663