Resolution 5976 - Amend Airport Master PlanRESOLUTION NO.5976
A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE KALISPELL CITY
AIRPORT MASTER PLAN THAT IS SUBJECT TO THE LEASE AGREEMENT
BETWEEN THE CITY OF KALISPELL AND THE KALISPELL AIRPORT USERS'
GROUP.
WHEREAS, on December 4, 2017, the City of Kalispell passed Resolution No. 5848, approving
a lease agreement with the Kalispell City Airport Users' Association for the
operation and maintenance of the Kalispell City Airport that included a Master Plan
that identified improvements to the Kalispell City Airport and sources of funds for
the respective improvements; and
WHEREAS, the Kalispell Airport Users' Association has offered amendments to the above
identified Master Plan, attached hereto as Exhibit "A", to include additional
locations for hangar development and associated parking areas; and
WHEREAS, the City Council finds that the offered amendments to the Airport Master Plan are
acceptable and in the best interests of its city residents and visitors.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA, AS FOLLOWS:
SECTION 1. The amendments to the Kalispell City Airport Master Plan, offered by the
Kalispell City Airport Users' Association, attached hereto as Exhibit "A"
and fully incorporated herein by this reference, are hereby approved for
incorporation into the lease agreement between the City and the Kalispell
City Airport Users' Association dated April 6, 2018.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 15TH DAY OF JUNE, 2020.
Mark Johns
Mayor
ATTEST:
Ai e Brunckhorst, CMC
City Clerk
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HANGAR INCLUDED IN KAA MASTER PLAN (2017)
PROPOSED HANGAR LOCATIONS (2020)
VEHICLE PARKING AREA
HANGAR LAYOUT
1"=150'
STIPULATION AND AGREEMENT
THIS STIPULATIONAND AGREEMENT, entered into this day of May 2020 by
and between the City of Kalispell and the Kalispell Airport Association, Inc. and John Talmage,
Montana Diamond Aire, Inc. and RJT Properties, LLC is made for the purposes set forth below:
RECITALS
WHEREAS, on June 12, 2013 all the above -named parties to this Stipulation and Agreement,
except the Kalispell Airport Association, Inc. entered into a Settlement
Agreement in the lawsuit filed in the Eleventh District Court for the State of
Montana under Cause No. DV-04-286(B), attached hereto and incorporated
herein as Exhibit "A"; and
WHEREAS, the seventh point of the settlement agreement is that the City of Kalispell "will not
construct a hangar or other obstruction on the spot presently designated for a 100
x 100 hangar directly in front of Diamond Aire so long as it continues to be used
for aeronautical and/or airport purposes"; and
WHEREAS, on December 4, 2017, the Kalispell City Council, by Resolution No. 5848,
authorized the City Manager to enter into a lease agreement with the Kalispell
Airport Association, Inc., for the use and management of the Kalispell City
Airport; and
WHEREAS, the Kalispell Airport Association, Inc. has requested that the City of Kalispell
approve the construction of a paved parking area on the Kalispell City Airport
that is "directly in front of Diamond Aire" as illustrated in Exhibit `B" attached
hereto and fully incorporated herein, and that could be construed as a violation of
that portion of the parties' settlement agreement as described above; and
WHEREAS, the parties hereto desire to memorialize their stipulation and agreement and
establish the clarification that the construction and use of the vehicle parking
areas as illustrated in Exhibit `B" will not be a violation of their settlement
agreement.
NOW THEREFORE, the parties hereto stipulate and agree to the following terms:
1. None of the vehicle parking areas designated on the schematic drawing attached hereto
and labeled as Exhibit "B" and used as such will impair the businesses of John Talmage,
Montana Diamond Aire, Inc. or RJT Properties, LLC.
STIPULATION AND AGREEMENT — Page 1
2. The Kalispell Airport Association, Inc. and the City of Kalispell agree that as with all
construction and maintenance of the airport infrastructure, the vehicle parking areas shall
be constructed and maintained to reasonably limit disruption to the businesses and
activities of the users and lessees of the airport. This paragraph is not intended to expand
upon the obligations that the City of Kalispell or the Kalispell Airport Association, Inc.
otherwise have toward the users and lessees of the Kalispell City Airport but is rather
intended to acknowledge such obligation.
3. The parties agree that no further consideration from any of the parties is necessary to
effectuate this Stipulation and Agreement as its sole purpose is to express the agreement
of the parties that the proposed use of vehicle parking areas on the portion of the Airport
directly in front of "Diamond Aire" will not violate the above -described Settlement
Agreement of the parties.
4. This Stipulation and Agreement of the parties expresses the entire agreement of the
parties and there are no other agreements, oral or written, that expand upon or limit the
terms written herein.
5. Each of the signatories below assert and declare, under penalty of perjury, to have the
necessary authority to execute this Stipulation and Agreement.
6. This Stipulation and Agreement is effective on the date above -written.
CITY OF KALISPELL KALISPELL AIRP RT ASSOCIATION, INC.
By: B
Dog Vsdell, City Manager
MONTANA DIAMOND AIRE, INC.
John Talmage John age
In his personal capacity
RJT PROPERTIES, LLC
By: w,l
John almage
STIPULATION AND AGREEMENT — Page 2
JOHN TALMAGE, MONTANA DIAMOND
AIRE, INC., and RJT PROPERTIES,
LLC,
Plaintiffs,
vs.
CITY OF KALISPELL, KALISPELL CITY
AIRPORT ADVISORY BOARD and
FRED LEISTIKO,
Defendants.
Cause No. DV-04-286(B)
(Heidi Ulbricht)
SETTLEMENT TERMS
SETTLEMENT AND ASSIGNMENT AGREEMENT TERMS
This following settlement terns are! agreed to by and between John Talmage.
Montana Diamond Aire. Inc.. and RJT Properties, LLC (" Plantiffs') and. pending
ratification within seven days by the City Council. the City of Kalispell, Kalispell City
Airport Advisory Board. and Fred Leistiko ("Defendants''):
1. City to make a cash payment of $130.000 within 30 days funded by Defendants'
insurers.
2. Talmage may remove fence between airport and property;
3. City to waive past'user fees:
4. City to lift deed restriction;
5. City to have right of first refusal to purchase the property;
6. City to give irrevocable. transferable/assignable license to use airport provided
property is used for aeronautical and/or airport purposes;
T Defendants will not construct a hangar or other obstruction on spot presently
designated for 100 x 100 hangar directly in front of Diamond Aire so long it
continues to be used for aeronautical and/or airport purposes;
8. City will allow Diamond Aire sign to be placed by the runway. not to violate
airport usage guidelines and city ordinances:
9. Defendants shall enter into a consent judgment in the amount of $1.5 million in
Plaintiffs' favor and assign them all rights/causes of action against a non -
defending insurer:
10. Plaintiffs will enter into a covenant not to execute the $1.5 million judgment
against Defendants:
11. Defendants will cooperate in future litigation with any insurer;
12. Mutual release of parties and Chartis. Old Republic. and MMIA, including any
and all claims;
13. Plaintiffs may void this agreement if a non -defending insurer agrees to provide a
defense prior to ratification and/or if Defendants' insurers do not timely fund this
settlement;
14. If property is used for non -airport purposes by a subsequent grantee/purchaser; the
City may erect a fence at its expense along the perimeter boundary;
15. Any use following the relocation of the fence, if a fence is relocated (as opposed
to removal of the fence as provided in term #2), will result in no prescriptive
claim and, rather. is a license.
Signed by:
On Ib6 f of Defendants On b haif of PI ' iff
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