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01/22/01 City Council Minutes1722 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JANUARY 22, 2001, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. COUNCIL PRESIDENT DUANE LARSON PRESIDED. COUNCIL MEMBERS JIM ATKINSON, DON COUNSELL, DALE HAARR, RANDY KENYON, FRED LEISTIKO, DOUG SCARFF, RON VAN NATTA AND CITY MANAGER CHRIS KUKULSKI AND CITY ATTORNEY GLEN NEIER WERE PRESENT. MAYOR WILLIAM E. BOHARSKI WAS ABSENT. President Larson announced that Mayor Boharski is quite ill and in the hospital. He asked everyone for their support and prayers. Larson called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved approval of the Agenda. The motion was seconded by Scarff. There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes - Regular Meeting January 8, 2001 2. Approval of Claims per Payables Register - $146,256.74 3. Pledged Securities as of December 31, 2000 Scarff moved approval of the Consent Agenda. The motion was seconded by Atkinson. There was no discussion. The motion carried unanimously upon vote. HEAR THE PUBLIC Mayre Flowers, Citizens for a Better Flathead, referring to a recent lawsuit concerning a proposed high tech park on School Section 36, stated CFBF has always been in support of the tech park, but wants to make sure the State complies with the MEPA law. She said it was only because the State "reneged on its agreement to complete the MEPA process", that CFBF took the matter to Court. Flowers said she has tried to work with the State over the last six months, to no avail, and now the Judge has ruled in favor of CFBF. She said she plans to continue taking an active role in this project and suggested the Council get the public involved. RESOLUTION 4596 - RESOLUTION OF INTENT - SUNNYVIEW SID A Special Improvement District is proposed for major improvements to Sunnyview Lane, which is the primary community access route to Kalispell Regional Medical Center and adjacent to medical professional offices. Extending Heritage Way is also included in the SID. Kukulski explained the original plan was to reconstruct Sunnyview Lane just near the hospital with Northwest Health Care paying the entire amount. He said the staff determined, and he agrees, that it would be better for everyone if the entire length of Sunnyview Lane was reconstructed, along with the extension of Heritage Way. Kukulski said in order to fund the larger project, an SID in the amount of $1,798,603.00 was deemed necessary. Kalispell City Council Minutes January 22, 2001 1723 Leistiko moved Resolution 4596, a resolution relating to Special Improvement District No. 343; declaring it to be the intention of the City Council to create the district for the purpose of undertaking certain local improvements and financing the costs thereof and incidental thereto through the issuance of special improvement district bonds secured by the City's special improvement district revolving fund. The motion was seconded by Van Natta. There was discussion. Atkinson expressed concern for the private property owners who own property in that area and the impact it will have on their pocket books. He said he's also concerned with the connection from Sunnyview Lane to Conway Drive, stating it will be located on private property and there's nothing to prevent it from being closed in the future. Atkinson said despite those concerns, he feels the project will be done well and is thankful that streets will be built in the hospital area according to city standards. The motion carried unanimously upon roll call vote. Kukulski explained the next three agenda items are all related. He said Hampstead is planning to spend approximately 3.8 million dollars in the redevelopment of 2nd Avenue West. Kukulski said the first item of business is to sell the Plaza West Parking Lot. He said proposals were requested with Hampstead Partners providing the only response, which is to develop a 40-unit, low income, elderly apartment building on the site. He further explained that Hampstead has agreed to purchase the property for $140,0000 with funds obtained through HOME and CDBG grants. As consideration for the City transferring title to the property prior to the approval of the grants, Hampstead will give the City a note bearing interest at a rate of six percent due and payable on May 1, 2002. Kukulski said if Hampstead does not obtain the required funds, they can demand the City repurchase the property in exchange for cancellation of the note. He noted the Plaza West sale is the first step in a 3.8 million dollar redevelopment project planned by Hampstead and will provide convenient, affordable housing for senior citizens. Kukulski stated the second item of business is the purchase of the Keno Inn, which will eventually become replacement parking once the Plaza West site is developed. He said the final item to consider is a loan to Hampstead Partners in the amount of $340,000 at six percent interest for purchasing and rehabilitating Montana Motor Sports. PLAZA WEST PARKING LOT SALE In December, the City requested proposals for the development of the Plaza West Parking Lot. Only one proposal was received. Hampstead Partners, Inc. would like to purchase the property for $140,000 in order to build a 40-unit, low-income elderly apartment building. Leistiko moved the Council authorize and direct the City Manager to execute the Purchase Agreement and the Option Agreement with Hampstead Partners, and to do all necessary acts for consummation of the sale of the North 1/2 of Lot 15, and all of Lots 16 & 17, Block 47, Kalispell. The motion was seconded by Scarff. There was discussion. Kalispell City Council Minutes January 22, 2001 Page 2 of 5 1724 Scarff inquired as to the fiscal effects to the taxpayers. Kukulski said the proposed independent living facility will remain on the tax rolls once it's constructed and the property should generate roughly forty six thousand dollars in taxes per year. Atkinson stated he will abstain from the next three agenda items because he works for the Agency on Aging, which is involved with the project. Mayre Flowers, CFBF, spoke in support of the project and suggested hat any monies returned on the development be earmarked for the streetscape project. The motion carried unanimously upon vote with Atkinson abstaining, RESOLUTION 4597 - ACQUISITION.OF THE KENO INN Due to the sale of the Plaza West Parking Lot, the City needs to acquire replacement parking. The owners of the Keno Inn property, Mike and Mary McFarland, have agreed to sell the City approximately 234 lots in Block 54 for a future parking lot. Scarff moved Resolution 4597, a resolution relating to the acquisition of certain real property within the downtown urban renewal area, described in Exhibit "A" from Michael T. McFarland and Mary L. McFarland, establishing a fair market value, and identifying the interest to be acquired. The motion was seconded by Counsell. Larson commented the City would purchase the property for $208,500. There was no discussion. The motion carried unanimously upon roll call vote with Atkinson abstaining. HAMPSTEAD PARTNERS LOAN In conjunction with a three-phase redevelopment plan for downtown Kalispell, Hampstead Partners is requesting a $340,000 redevelopment loan at 6% interest to acquire and renovate property currently housing Montana Motor Sports and an adjacent building. Van Natta moved the Council authorize the City Manager and Finance Director to make a loan to Hampstead Partners, Inc. in the amount of $340,000 for the purpose of purchasing and rehabilitating Montana Motor Sports. The motion was seconded by Leistiko. There was discussion. Counsell asked why TIF funds are being used instead of UDAG monies. Susan Moyer, Community Development Director, said the 2nd Avenue West redevelopment project proposed by Hampstead epitomizes the philosophy behind TIF funds. She said the project plans for urban density in -fill, removing blighted structures and generating a new tax base. Moyer noted TIF dollars can only be used within a TIF district, whereas UDAG monies can be used anywhere within the City. The motion carried unanimously upon vote with Atkinson abstaining. FINAL PLAT - RANCHVIEW SUBDIVISION This is a request for final approval of Ranchview Subdivision, a ten -lot residential subdivision located on the west side of Kalispell City Council Minutes January 22, 2001 Page 3 of 5 1725 Grandview Drive just south of Commons Way in the north part of Kalispell. Haarr moved approval of the final plat for Ranchview Subdivision. The motion was seconded by Scarff. There was discussion. The motion carried unanimously upon vote. RESOLUTION 4598 - RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD OF INVESTMENT LOAN PROGRAM The City has received approval for Board of Investment loans for the purchase of an Aerial Forestry Lift Truck for the Parks and Recreation Department and a Mulch Master Leaf Machine for the Public Works Department. Atkinson moved approval of Resolution 4598, a resolution authorizing participation in the Board of Investments of the State of Montana Annual Adjustable Rate Tender Option Municipal Finance Consolidation Act Bonds (Intercap Revolving Program), approving the form and terms of the loan agreement and authorizing the execution and delivery of documents related thereto. The motion was seconded by Counsell. There was no discussion. The motion carried unanimously upon roll call vote. ORDINANCE 1379 - SALARY ORDINANCE AMENDMENT - 1ST READING The Kalispell Municipal Judge has not had a salary increase since January of 1997. Judge Heidi Ulbricht has requested the current salary of $40,000 be raised to $48,000 beginning January 1, 2002. Van Natta moved first reading of Ordinance 1379, an ordinance amending Ordinance No. 1353, fixing the limits of the salary and compensation for the City Officials, Supervisors, and Employees pursuant to Title 7, Chapter 4, Part 42, M.C.A., commencing on the dates indicated herein, and repealing all other ordinances in conflict therewith. The motion was seconded by Counsell. There was discussion. Haarr said when City Court was changed to Municipal Court, the Council agreed to a dramatic increase in salary, despite the fact that the duties are primarily the same. He said adding another 20 percent increase is excessive and he will vote against the motion. Larson commented the salary increase will not take effect until 2002, which will make it four years since the salary was adjusted. The motion carried upon roll call vote with Haarr voting against. MAYOR/COUNCIL/CITY MANAGER'S REPORT Kukulski said expectations are high that the industrial park planned for School Section 36 will become a reality now that the lawsuit is settled, and he hopes everyone can work together to make the project a reality. Atkinson agreed, stating Venue Tech and Binocs, a local company, will have to move out of the area if this tech park doesn't happen. He said it's in the best interest of everyone in the community to see that this tech park becomes a reality. Kalispell City Council Minutes January 22, 2001 Page 4 of 5 1726 Kukulski said Columbia Falls Aluminum Company has announced it will shut down the rest of its pot lines. Van Natta explained CFAC will shut down and sell the company's quota of electricity, which will provide enough profit to allow them to pay their employees for the rest of the year. He said it's unfortunate that deregulation has forced companies to make these kind of decisions. Kukulski added the effects of deregulation will also show up in the City's budget with the higher electric rates. ADJOURN The meeting was adjourned at 8:20 p.m. Boharski M. Duane Larson Ma7cjr .Council President ATTEST: ;2�L— 'Ti-!(eresa White City Clerk Approved February 5, 2001 1 1 Kalispell City Council Minutes January 22, 2001 Page 5 of 5