2015 Old School Station appraisal work session 10 21 materialscrTYOF # -�. City of Kalispell
Post Office Box 1997 - Kalispell, Montana. 59903
WITelephone: (406) 758-7701 Fax: (406) 758-7758
MONTANA
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Old School Station lot prices and SID payments
Meeting Date: October 26, 2015
BACKGROUND: Earlier this year, the City of Kalispell took ownership of 6 lots in Old
School Station that were delinquent in property tax assessments. By taking ownership, the City
was able to avoid defaulting on the payments of the bonds that were initially issued for the
infrastructure in the Old School Station Development. The bonds funded water, sewer, street,
and utility infrastructure within the development and were set to be paid for with the annual
assessments on the lots in the development.
Following acquisition, the city engaged in an appraisal of all 6 lots that were acquired. A
following appraisal was conducted on 2 selected lots of the 6 to demonstrate the impact of recent
sales and potential variability in the market for these lots.
Attached to this memo is a table identifying the appraised prices. For the second appraisal, the
lots were broken into groups of 4 (smaller lots) and 2 (larger lots) to extrapolate prices based on
percentage differences.
Additionally, listed on the attachment, are options for council to consider in establishing a selling
strategy based on the market price and previous developer agreements and intentions of using
property taxes within the district to pay for the special assessments.
It is recommended that the council discuss the strategy for taking the lots to the market, and
reaffirm the intent to have the SID's covered through future property taxes in the developer
agreements, or in a manner that achieves the same outcome, if this is still the intent.
Additionally, it is requested that Council consider the option of placing 2 of the lots on the direct
market to provide maximum exposure for the parcels.
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