Hilton Garden Inn PUD AgreementReturn
20OGi92
Theresa White
Kalispell City Clergy C er
o Box 1.997
Kalispell, MT 59903 hcc........ { .. -.k .# w
ORDINANCE NO. 1574
,AN ORDINANCE TO AMEND SECTION 27.02.010., OFFICIAL ZONING MAP, CITY of
KALISPELL ZONING ORDINANCE, ORDINANCE No. , BY ZONING CERTAIN
REAL PROPERTY MORE PARTICULARLY DESCRIBED AS TRACT I OF
CERTIFICATE of SURVEY NO. 1. 5, A. TRACT of LAND, SITUATED, LYING, AND
BEING 1N THE NORTH HALF of THE NORTHWEST QUARTER of SECTION 20,
TOWNSHIP 28 NORTH, RANGE 21 WEST, ,,M,, ,, FLATHEAD COUNTY, MONTANA
(PREVIOUSLY ZONED CITY - , PUBLIC) TO CITY -2 (GENERAL BUSINESS), WITH
A PLANNED UNIT DEVELOPMENT OVERLAY IN ACCORDANCE WITH THE
KALISPELL GROWTH POLICY 2020, AND TO PROVIDE AN EFFECTIVE DATE.
WHEREAS, Kalispell Hotels, LLC., contract purchaser of the property described above, petitioned
the City of Kalispell that the zoning classification attached to the above described
tract of land be zoned f-2, General Business with a Planned Unit Development
overlay on approximately 3.4 acres of land, and
WHEREAS, the property is approximately boo feet south of the intersection of Highway 93 and
8" Street East at 1840 Highway 93 South, Kalispell, Montana, and
WHEREAS, the petition of Kalispell Hotels, LLC was the subject of a. report compiled by the
Kalispell City Planning office, Staff Report KPU -o6-o ., in which the Kalispell
Planning Department a.rtr ent evaluated the petition and recommended that the property as
described above be zoned -2, General Business, with a Planned Unit Development
overlay, and
WHEREAS, the Kalispell City Planning Board .field a Public Hearing oil the matter on April 11,
Zoo a. d recommended that the initial zoning be City B--2, General Business with a.
Planned Unit Development overlay, and
WHEREAS, after considering all the evidence submitted on the proposal to zone the property as
described B-2, General Business with a Planned Unit Development overlay, the City
Council finds such zoning to be consiste t with the Kalispell Growth Policy 2020
and adopts, based upon the criterion set forth in Section 6- 3-60 , M.C. ., and State,
2100(;192N' 6()
Etc. v. Board of County.Commissioners,_ Etc. 5 90 P2d 602, the findings of fact of the
Kalispell Planning Department as set forth in Staff Report No. K I I - -1.
NOW THEREFORE, BE IT ORDAINED Y THE CITY COUNCIL of THE CITY of
KALISPELL, AS FOLLOWS:
SECTION 1. Section 27,02.010, of the Official Zoning; .map of the Kalispell Zoning
Ordinance, (ordinance No. 1_ o) is hereby amended by designating the
property described above as -2, General Business with a Planned Unit
Development overlay on approximately . acre.
SECTION 11. The Planned Unit Development proposed by Kalispell Hotels, LLC upon the
real property described above is hereby approved, subject to the following
conditions.*
1. The development of the site shall be in substantial compliance with the application
submitted, the site plan, materials and other specifications and all public
infrastructure shall be designed and installed i ac
cordance orda ce with the Kalispell Design
n
and Construction Standards as well as any additional conditions associated with the
PUD as approved by the City Council.
2. The developer shall comply with the requirements of the Montana Department of
Transportation in relation to any traffic studies that may be required and obtain any
approach permits and any other necessary permits from. the Montana Department of
Transportation,
. The height of the building shall not exceed 56 feet and in no case shall the height of
the building exceed the applicable maximum. hei ht limit within the airport -affected
area.
. Neon lighting shall be prohibited o signs and the building.
5. Entrance to the casino shall be from inside the hotel/conference center. Entrances for
the casino directly from outside the building are prohibited.
. All outdoor si na ;e advertising; the casino or gaming activities within the Facilities
shall be prohibited.
. The development shall meet all requirements of the Public Works Department t to
protect the City's water wellhead adjacent to the project.,
S. That a development agreement, substantially in the form of that agreement attached
hereto as Exhibit "A", e drafted by the Kalispell City Attorney between the City o
Kalispell and the developer outlining and formalizing the terms, conditions and
provisions of approval. The final plan as approved, together with the conditions and
restrictions imposed, shall constitute the Planned Unit Development (PUD) zoning
for the site.
200GI92 b4�LX�aO
. Upon completion of each phase of the project to which tax increment funds are
rov*ded, the developer shall provide a letter of credit to the City of Kalispell In the
amount of those tax increment funds expended to insure that the project is completed
s agreed upon by the parties to this Agreement. In the evert that the project is .not
completed as agreed upon by the parties, the City of Kalispell hall be entitled to
recovery of all tax increment funds expended from either the developer or the letter
of credit provider -
SECTION 111. The balance of Section 27.02.010, official Zoning Map, City of Kalispell
Zoning ordinance not amended hereby shall remain in full force and effect.
SECTION IV. This ordinance shall take effect from and after 30 days of its p .ssne by
the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED Y THE MAYOR of THE
CITY of KALISPELL, MON DNA, THIS 15TH DAY of MAY, Zoo .
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White w
City Clerk
2006192C�Z44(�
PLANNED UNIT DEVELOPMENT AGREEMENT
HILTON GARDEN INN AND CONFERENCE CENTER
THIS AGREEMENT made as of the CTay of May o , by Kalispell Hotels, LLC, a
Wf
Montana Limited Liability Company, of P.O. Box 1068, 741 Lakeside Blvd.,, Lakeside,, M
22, hereinafter "KALISPELL HOTELS"", and the City of Kalispell, a municipal corporation,
of 31.2 1 st Avenue East, Kalispell, Montana 59901, hereinafter CITY;
WNESSH
WHEREAS, KA.LISPELL HOTELS is the fee owner of certain real property located at. 1840
Highway 93 South, Kalispell, ell, Flathead County, Montana, which is further
described as follows:
Tract I of Certificate of Survey No. 17045, a tract of land, situated, lying,
and being in the North Half of the Northwest Quarter of Section ,
Township 28 North, Range 21 West, P.M.M., Flathead Cott ., Montana
and is hereinafter referred to as "Subject Property"'; and
WHEREAS, KALISPELL HOTELS desires to have a Planned Unit Development (PUD)
overlay upon the subject property zoned as B-2 General Business that would
allow some flexibility in the height of the structure and location of a casino within
the 117,300 square foot facility; and
WHEREAS., in order to allow the PUD, assure the installation of infrastructure Improvements
within the "Subject Property'. and prescribe the permitted uses therein, the parties
hereto determine it to be in their interests to enter into this Development
Agreement.
I. GENERAL INTRODUCTION
§ 1.01 General
The use and development of the Subject Property shall substantially conform to and comply with
the provisions of the PUD Application filed by applicant and the conditions contained within
Kalispell City Resolution No, 5114 approving the sale of the subject property and Ordinance No.
PLANNED UNIT DEVELOPMENT AGREEMIENTMELTON GARDEN INN
Pa �e I of 7
200CIL!)2 OVY'06
1574 approving the development of the subject property to the Hilton Garden Inn and
Conference Center PUD and incorporated fully herein by this reference.
1,02 .relationship to Zoning ordinance
Except as specifically modified or superseded by this Development Agreement, the laws, rules
and regulations of the City of Kalispell goveming the use and development of land and
buildings, including the City of Kalispell Zoning ordinance, shall apply to the Subject Property.
§ 1.03 Drawings
The drawings annexed to this Planned Unit Development Agreement are an integral and essential
component thereof, and they are incorporated by reference herein.
§ 1.44 Effectiveness and Cancellation
The provisions of this Planned Unit Development Agreement shall become effective
immediately and shall terminate contemporaneously with the Net Proceeds Agreement regarding
the Subject ,property, This Development Agreement may be modified or amended only as set
forth in Article yr hereof.
1.05 Certification Procedure
Whenever in this Manned Unit Development Agreement a certificate by the Director of Public
Works is required to be given, such certificate shall be given within thirty 3 days of the receipt
of a completed application. Such an application shall be deemed to be complete upon receipt of
such drawings and narrative information as are reasonably necessary for the issuance of such
certification,
1. PARCEL DESCRIPTION
.01 The Subject Property, described in the recitals above, shall be developed with the
infrastructure improvements as described below.
No building permit shall be issued unless and until all improvements specified in this Agreement
as well as those infrastructure improvements which may be required by the City of Ka spel 's
Standards for Design and Construction are either constructed or security provided guaranteeing
construction of said improvements for that particular parcel upon which a building permit is
requested.
11. CONDITIONS F DEVELOPMENT
l . The development of the site shall be in substantial compliance with the application
submitted, the site plan, materials and other specifications and all public infrastructure shall
be designed and installed In accordance with the Kalispell Design and Construction
PLANNED UNIT DEVELOPMENT AGREEMENTMELTON GARDEN INN
Page
42' 0 0 6 19 2 D3q(o()
Standards as well as any additional conditions associated with the PUD as approved by the
city council.
2. The developer shall comply with the requirements ents of the Montana Department of
Transportation in relation to any traffic studies that may be required and obtain any
approach permits and any other necessary permits from the Montana Department of
Transportation..
3. The height of the building shall not exceed 56 feet and in no case shall the height of the
building exceed the applicable maximum m height limit within the airport -affected area.
. Neon lighting shall be prohibited on signs and the building.
5. Entrance to the casino shall be from inside the hotel conference center. Entrances for the
casino directly from outside the building are prohibited.
. All outdoor signa e advertising the casino or gaming activities within the facilities shall be
prohibited.
. The development shall meet all requirements of the Public Works Department to protect the
City's water wellhead adjacent to the project.
. Upon completion of each phase of the project to which tax increment funds are provided, the
developer shall provide a letter of credit to the City of Kalispell in the amount of those tax
increment funds expended to insure that the project is completed as agreed upon by the
parties to this Agreement. In the evert that the project is not completed as agreed upon by
the parties, the City f Kalispell shall be entitled to recovery of all tax increment funds
expended from either the developer or the letter of credit provider.
Iv. OBLIGATIONS of CITY
The CITY agrees that in consideration of the terms set forth above., the execution of a Net
Proceeds Agreement with KALISPELL HOTELS (attached hereto) and for the general economic
benefits to be derived by the CITY and its citizens, including the additional tax base to be
realized, the redevelopment of the subject property, which has been determined to be in a
blighted area, and its usage as a conference center, which is desired and beneficial to the local
economy, the CITY shall contribute funds in the following priority order:
L Demolition of the existing structures on the subject property; and
. Remediation of the site as required by Montana Department of Environmental Quality;
and
3. Development of the public infrastructure on the subject property.
The contribution of the City shall not exceed the total sum of EIGHT HUNDRED NINETY
THOUSAND AND N 00 HS $ 90,000 DOLLARS.
PLANNED UNIT DEVELOPMENT AG.REEMEN IHILON GLEN INN
Page 3 of 7
200G1'Q2bWb0
The CITY shall enter into a long-term leasehold agreement with KALISPELL HOTELS t
provide such additional parking area to KALISPEL �, HOTELS as may e required y the CITY
and not available on the Subject Property. This parking area shall be adjacent to the Subject
Property and located on CITY owned City Airport property. The specific terms of the lease
agreement shall be negotiated between the parties, however the length of the term shall be of
such length as required for KALISPELL HOTELS to finance the project and the annual per
square foot lease payment shall be equal to or greater than such payments made by other parties
leasing City Airport property.
V. TAXES AND PAYMENT IN LIEU OF TAXES
Payment in Lieu of„Faxes. It is contemplated that the completed Fulton Garden Inn and
Conference Center Project [Project Property] will generate annual tax revenue to the CITY in the
amount of approximately TWO HUNDRED SIXTY THOUSAND AND N oo DOLLARS
($260,000.00)upon completion of the Project, exclusive of city or county special assessments.
Developer, therefore, covenants to pay the City any difference between the amount of tax
actually generated by the Project Property, including any portion of the Project transferred to
another owner, and the amount contemplated by this Agreement for a period of TWO 2 years
commencing with tax payment due November 30, 2008. Payment under the provisions of this
paragraph shall be made directly to the City, after certifying the tax generated by the Project
Property through the City finance department ent subject to verification, and in accordance with the
following:
1. For tax year, Zoo, a copy of the tax hill for the tax year, 2008 shall be delivered to the
City finance office on or before November 15, Zoo .
. The City finance office shall calculate the difference between the tax bill for the 2008 tax
year, exclusive of special assessments, and the sum of TWO HUNDRED AND SIXTY
THOUSAND AND No l.00 DOLLARS $2 o, o.00 and invoice the Developer for the
difference.
. ,half of the payment for said amount calculated shall be due and payable, from the
Developer, on or before December 15, 2008. The second half of the payment for said
amount calculated shall he due and payable, from the Developer, on or before May 31,
Zoo,
. For tax year Zoo, a copy of the tax bill for the respective tax year shall he delivered to
the City finance office on or before November 15.
. The City finance office s alt calculate the difference between the tax bill for the
respective tax year, exclusive of special assessments, and the sum of TWO HUNDRED
AND SIXTY THOUSAND AND N 1.00 DOLLARS $2 , o .00 and invoice the
Developer for the difference.
Half of the payment for said amount calculated shall he due and payable, from the
Developer, on or before December 15, 2009. The second half of the payment for said
amount calculated shall be due and payable, from the Developer, on or before May 3 1,
2010.
PLANNED UNIT DEVELOPIMENT AGREEMENT[HILTON GARDEN INN
Page 4 of 7
200G.1,92. D0(4
In tax years when the tax liability, less special assessments, equals or exceeds the sum of
$2 o,000.00, no payment -in -lieu shall be due from. the Developer, er, however, no credit shall be
given for subsequent tax years.
VI. AMENDMIENT OR MODIFICATIONS of
DEVELOPMENT AGI ESN
6.01 This Development Agreement may be amended or modified only, by application of the
owner, in accordance with the procedures set forth herein.
.02 Application for amendment or modification may be made only to the City Council of
Kalispell.
V11. CONSTRUCTION PERMITTING
§ 7.01 General Requirements
1. No building permit i n respect to the building in any structure shall be issued by the Building
Department until the Director of Public Worts has certified to the Building Department that
the infrastructure improvements as required herein substantially conform to the Site
Condition requirements contained in this Agreement and that said improvements have been
constructed or security guaranteeing the construction has been received by the City.
11. For purposes of this Section, the"Security"" required sail be in an amount equal to 125 o
the developer's Licensed Engineer's estimate of the cost of constructing said improvements.
V111. MISCELLANEOUS
8.01 Effective Date
This Agreement shall be effective immediately and shall remain in full force and effect
until the expiration of the Net Proceeds Sale Agreement.
.02 Severa ility
In the event that any provisions of this Agreement shall be deemed, decreed, adjudged or
determined to be invalid or unlawful by a court of competent jurisdiction, such provision
shall be severable and the remainder of this Agreement shall continue to he of full force
and effect.
.03 Recordation
This Agreement shall he recorded along with the Memorandum of Net Proceeds
A reeme t with respect to the subject property.
PLANNED UNIT DEVELOPMENT , ►.GREMENTIHE TON GARDEN INN
Page 5 of 7
§ $.04 Enure Agreement -Primacy 20o(;152 bwbo
This Agreement constitutes the entire agreement between the parties acid may only be
amended as sot forth herein.
8.05 Binding Effect
This Agreement shall be binding upon and inure to the benefit of the respective parties
heirs, successors and assigns.
Dated this � � + day of May, 2006.
KAISER--HCffES
o t Welker, :� *ng Member
CITY'OF KALISPELL
1a�s H. Patrick City Manager
PLANNED UNIT DEVELOPMENT AGREEMIENTMILTON GLEN INN
'age
STATE OF MONTANA }
):SS 2oot;192 OU0
County of Flathead )
On thisLe day of May Zoo , before r e, the undersigned, a Notary Public for the State
of Montana, personally appeared Robert Voelker, in his capacity as Managing Member of
KALISPELL HOTELS, C, that executed the foregoing instrument, and acknowledged to nee
that he executed the same.
N WITNESS WHEREOF,, I have hereunto set nay hand and affixed my Notarial Seal the
day and year in this certificate first a, ,writ
ten.
I
'V6V�
F
STATE of MoN NA
):3S
County of Flathead
Notary Publi9. of Montana
Residing at 4AAa !\
My Commission Expires ._��
On this ! _ day of May 2006, before me, a Notary Public in and for the State of
Montana, personally appeared J MES H. PATRICK, known to me to be the City Manager of the
City of Kalispell, a municipality, that executed the within instrument, and acknowledged that
such City Manager subscribed, sealed and delivered said instrument as the free and voluntary act
of said municipality, for the uses and purposes therein set forth, and that he was dray authorized
to execute the sane on behalf of said municipality.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed nay Notarial ,deal,
the day and year first above written.
TA _
Notary Public tc of Montana
_
-�
Residing at
•
My Commission Expires
s } R � r$ b�
- 0 F--
PLANNED UNIT V E IMET AGREEMENTMILTON GARDEN INN
Page 7 of 7