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Ordinance 1574 - Zoning and PUD - Hilton Garden InnReturn to: ' a Theresa White Kalispell City Clerk / PO Box 1997 Dcl er� DATE � _7 ./_I__Q_p _.,-TIME. Kalispell, MT 59903 PAULA R0 811\.150N FLATHEAD COUNTY MONTANA ORDINANCE NO. 1574 AN ORDINANCE TO AMEND SECTION 27.02.010, OFFICIAL ZONING MAP, CITY OF KALISPELL ZONING ORDINANCE, (ORDINANCE NO. 1460), BY ZONING CERTAIN REAL PROPERTY MORE PARTICULARLY DESCRIBED AS TRACT 1 OF CERTIFICATE OF SURVEY NO.17045, A TRACT OF LAND, SITUATED, LYING, AND BEING IN THE NORTH HALF OF THE NORTHWEST QUARTER OF SECTION 20, TOWNSHIP 28 NORTH, RANGE 21 WEST, P.M.M., FLATHEAD COUNTY, MONTANA (PREVIOUSLY ZONED CITY P-1, PUBLIC) TO CITY B-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 B-2, General Business with a Planned Unit Development overlay on approximately 3.4 acres of land, and WHEREAS, the property is approximately 600 feet south of the intersection of Highway 93 and 1.8th 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 #KPUD-06-01, in which the Kalispell Planning Department evaluated the petition and recommended that the property as described above be zoned B-2, General Business, with a Planned Unit Development overlay, and WHEREAS, the Kalispell City Planning Board held a Public Hearing on the matter on April 11, 2006, and 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 consistent with the Kalispell Growth Policy 2020 and adopts, based upon the criterion set forth in Section 76-3-608, M.C.A., and State, 0()(;V)2 Nq6o Etc. v. Board of County Commissioners, Etc. 590 P2d 602, the findings of fact of the Kalispell Planning Department as set forth in Staff Report No. KPUD-06-1. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. Section 27.02.010, of the Official Zoning Map of the Kalispell Zoning Ordinance, (Ordinance No. 1460) is hereby amended by designating the property described above as B-2, General Business with a Planned Unit Development overlay on approximately 3.4 acres. SECTION II. The Planned Unit Development proposed by Kalispell Hotels, LLC upon the real property described above is hereby approved, subject to the following conditions: 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 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. 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 height limit within the airport -affected area. 4. 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. 6. All outdoor signage advertising the casino or gaming activities within the facilities shall be prohibited. 7. The development shall meet all requirements of the Public Works Department to protect the City's water wellhead adjacent to the project. 8. That a development agreement, substantially in the form of that agreement attached hereto as Exhibit "A", be drafted by the Kalispell City Attorney between the City of 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. 9. 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 event that the project is not completed as agreed upon by the parties, the City of Kalispell shall be entitled to recovery of all tax increment funds expended from either the developer or the letter of credit provider. SECTION III. 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 passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS 15TH DAY OF MAY, 2006. Pamela B. Mayor ATTEST: Theresa White'z-1/ �' �- City Clerk PLANNED UNIT DEVELOPMENT AGREEMENT HILTON GARDEN INN AND CONFERENCE CENTER THIS AGREEMENT made as of they ry ay of May 2006, by Kalispell Hotels, LLC, a Montana Limited Liability Company, of P.O. Box 1068, 741 Lakeside Blvd., Lakeside, MT 59922, hereinafter "KALISPELL HOTELS", and the City of Kalispell, a municipal corporation, of 312 lst Avenue East, Kalispell, Montana 59901, hereinafter CITY; WITNESSETH WHEREAS, KALISPELL HOTELS is the fee owner of certain real property located at 1840 Highway 93 South, Kalispell, 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 20, Township 28 North, Range 21 West, P.M.M., Flathead County, 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 AGREEMENT/HILTON GARDEN INN Page I of 7 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 governing 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. § 1.04 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 VI hereof. § 1.05 Certification Procedure Whenever in this Planned Unit Development Agreement a certificate by the Director of Public Works is required to be given, such certificate shall be given within thirty (30) 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. II. PARCEL DESCRIPTION § 2.01 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 Kalispell'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. III. CONDITIONS OF DEVELOPMENT 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 AGREEMENT/HILTON GARDEN INN Page 2 of 7 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. 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 height limit within the airport -affected area. 4. 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. 6. All outdoor signage advertising the casino or gaming activities within the facilities shall be prohibited. 7. The development shall meet all requirements of the Public Works Department to protect the City's water wellhead adjacent to the project. 8. 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 event that the project is not completed as agreed upon by the parties, the City of 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: 1. Demolition of the existing structures on the subject property; and 2. 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 NO/100THS ($890,000) DOLLARS. PLANNED UNIT DEVELOPMENT AGREEMENT/HELTON GARDEN INN Page 3 of 7 The CITY shall enter into a long-term leasehold agreement with KALISPELL HOTELS to provide such additional parking area to KALISPELL HOTELS as may be required by 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 Taxes. It is contemplated that the completed Hilton 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 NO/100 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 subject to verification, and in accordance with the following: 1. For tax year, 2008, a copy of the tax bill for the tax year, 2008 shall be delivered to the City finance office on or before November 15, 2008. 2. 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 N0/100 DOLLARS ($260,000.00) and invoice the Developer for the difference. 3. 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 be due and payable, from the Developer, on or before May 31, 2009. 4. For tax year 2009, a copy of the tax bill for the respective tax year shall be delivered to the City finance office on or before November 15. 5. The City finance office shall 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 NO/100 DOLLARS ($260,000.00) and invoice the Developer for the difference. 6. Half of the payment for said amount calculated shall be 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 31, 2010. PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 4 of 7 In tax years when the tax liability, less special assessments, equals or exceeds the sum of $260,000.00, no payment -in -lieu shall be due from the Developer, however, no credit shall be given for subsequent tax years. VI. AMENDMENT OR MODIFICATIONS OF DEVELOPMENT AGREEMENT § 6.01 This Development Agreement may be amended or modified only, by application of the owner, in accordance with the procedures set forth herein. § 6.02 Application for amendment or modification may be made only to the City Council of Kalispell. VII. CONSTRUCTION PERMITTING § 7.01 General Requirements I. No building permit in respect to the building in any structure shall be issued by the Building Department until the Director of Public Works 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. II. For purposes of this Section, the "Security" required shall be in an amount equal to 125% of the developer's Licensed Engineer's estimate of the cost of constructing said improvements. VIII. 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. § 8.02 Severability 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 be of full force and effect. § 8.03 Recordation This Agreement shall be recorded along with the Memorandum of Net Proceeds Agreement with respect to the subject property. PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 5 of 7 § 8.04 Entire Agreement - Primacy 2oa(;JL52 0&0 This Agreement constitutes the entire agreement between the parties and may only be amended as set 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. Voelker, Managing Member OF KALISPELL Ja4es H. Patrick, City Manager PLANNED UNIT DEVELOPMENT AGREEMENT/HILTON GARDEN INN Page 6 of 7 STATE OF MONTANA ) County of Flathead ):ss 20061922 (0 On this to day of May 2006, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Robert Voelker, in his capacity as Managing Member of KALISPELL HOTELS, LLC, that executed the foregoing instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first j],p�' I �t p Iwritten. itl�i h 11I6 ri V 3 S Notary Publi , State of Montana Residing at ) A \e ' \\ �bi2; d10N My Commission Expires S1�(' STATE OF MONTANA ):ss County of Flathead ) On this � za day of May 2006, before me, a Notary Public in and for the State of Montana, personally appeared JAMES 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 duly authorized to execute the same on behalf of said municipality. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal, the day and year first above written. Notary Public, Rbate of Montana S A L - Residing at My Commission Expires S iO P M�©��P�`�� PLANNED UNIT DEVELOPMENT AGREEMENT/1-III-TON GARDEN INN Page 7 of 7