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09/03/91 City Council Minutes39 397 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M., SEPTEMBER 3, 1991 IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR RAUTHE PRESIDED. ALL COUNCILMEMBERS WERE PRESENT. Mayor Rauthe called the meeting to order and led the Pledge of Allegiance. CONSENT AGENDA Approve Claims per Payables Register Approve Minutes -August 19, 1991 Atkinson moved the consent agenda be approved. The motion was seconded. Williams corrected the claims total to $605,225.58. The motion carried upon vote. ADDRESSING THE COUNCIL No one addressed the council. PUBLIC HEARING Approval of an Urban Renewal Project --The Kalispell_ Market Place Williams explained the purpose of this hearing is to receive public comment concerning the city's intent to designate certain activities in the Downtown Redevelopment Area as a project. Specifically the project would allow the City of Kalispell and Tidyman's to enter into a development agreement with the objective being the development of certain real property owned by Ta:dyman"s between 3rd Avenue East North and Main Street, north of the Burlington Northern railroad tracks. Tidyman's proposes building upon the property a 57,000 square foot grocery store with related improvements. The city proposes to assist in the development by providing infrastructure improvements, which will be of benefit to the city and to the redevelopment area. The city proposes to commit up to $500,000 to public infrastructure improvements out of tax increment funds, and to apply for a $300,000 Economics Development Administration Grant for additional improvements. Larry Gallagher, City of Kalispell Real Estate Counselor, explained a brief history of the proposed project and the purpose of tax increment financing. Proponents Mike Davis, Tidyman's Secretary/Treasurer, concurred with Gallagher's comments. He expressed that Tidyman's has tried to go as far as they can as far answering the needs of the city. Opponents Dave Mumby, Fred Meyer meat cutter, was concerned with the hardship from the loss of jobs and felt there were too many grocery stores in the area already. Bill Wright, 1104 1st Avenue East, was concerned with the travel plan that will affect 1st Avenue East. Mrs. Owen Sowerwine, felt the post office should be built in this area rather than Tidyman's. Janice Skyba, Fred Meyer employee, wanted to know how m4ny local people would be hired and the wages. Cheryl Perrin, Fred Meyer Vice President of Public Affairs, stated Fred Meyer has been in the area for about 30 years and employs 126 people. She had the following concerns: 398 398 1. Is this the best possible use for public money? 2. This will have a direct economic impact on the area and specifically Fred Meyer. 3. There will be a definite traffic impact on the area. Fred Meyer had a consultant do a traffic report of the area and the results were distributed to the council. Perrin reviewed the analysis. Perrin requested a 45 day extension prior to any vote being taken due to the impacts this will have. Shelton Williams, attorney representing Super One Foods and some other local tax paying businesses, felt this project will result in a loss of jobs. The tax increment subsidy involved is unfair. There seem to be a lot of unanswered questions and he would like council to review and delay the decision. Rauthe closed the public hearing. Mike Fraser, Architect Design Group, explained the proposed site plans, including landscaping and parking, sewer, storm drain and traffic. He also addressed the extension of 1st Avenue East to Center Street. There was discussion as to the site configuration. There were 14-15 different possibilities and this was chosen for the maximum utilization and development of that site. Clete Daley, Traffic Engineer, summarized his traffic study of this area. Mike Davis, Tidyman's, reported approximately 120 people would be hired, which 10-15 would be management positions brought from other stores. 60-70% of the hours worked would be with full time positions, the other would be part time positions. The wage would be the going rate in the area. Tidyman's is 100% employee owned. Larry Gallagher explained with a 45 day delay, the construction would be delayed until next spring. This proposal is asking to provide for an opportunity for those that want to come to Kalispell to locate where it's in the best interest of the community and where the city has infrastructure traffic circulation. Modify Downtown Redevelopment Plan Williams explained the purpose of this hearing is to receive public comment concerning the- city's intent to amend the Kalispell Downtown Redevelopment Plan by streamlining the procedure necessary to effect a plan change or designate a project. Under the current procedure a plan amendment or urban renewal project amendment requires notice of public hearing be given by publication and by mailing notice of such hearing to all persons in the district whose names appear on the County Treasurer's tax roll as owners. Compliance requires that the city mail approximately 1,200 notices. The procedure is both costly and time consuming. State law allows the city to adopt, by plan amendment, a procedure which dispenses with the notice mail provision. The proposed amendment would authorize the city to amend the urban renewal plan or designate a project by notifying all property owners within 150 feet of a proposed project area. Proponents None 399 Opponents Max Lauder, 1138 1st Avenue East, spoke against the change. He felt people should be aware when they would be effected. Janice Skyba, Fred Meyer employee, stated Fred Meyer relies on 3rd Avenue traffic to stop at their store, if that traffic flow is lost, they may be trying to put us out of business. Bill Wright, 1104 1st Avenue East, agreed with Lauder, it is important persons are notified. The public hearing was closed. ORDINANCES & RESOLUTIONS Ordinance 1168--Approval of an Urban Renewal Project --The Kalispell Market Place -1st Reading Moses moved Ordinance 1168, an ordinance relating to the Kalispell Downtown Redevelopment Plan; approving a certain project as urban renewal project and authorizing the negotiation of a development agreement with warehouse Industries, Inc. D/B/A Tidyman's with regard to said urban renewal project. The motion was seconded. Nystul referred to the comment made of the division of the pie of retail establishments. The city has encouraged expansion of the retail market and the utilization of that parcel of land is the ultimate goal. This particular parcel as it relates to the present and long term growth and expansion of the community retail establishment as well as what effect does it have on better utilization of property within the city is the goal. The movement of the infrastructure and the extension of 1st Avenue East, will require further discussion at a later date. Rauthe reminded this is the first reading of this ordinance and the 2nd reading will be at the next council meeting. Larson suggested delaying this decision 30-45 days due to lack of information. Atkinson spoke in favor of the ordinance. He did not like the placement of the Tidyman's building and did not fear a loss of jobs. Williams felt it would be a mistake to delay this decision. Kennedy and Buck spoke in favor of the motion. Kennedy called for the question. With a roll call vote the motion carried unanimously. Ordinance 1169-Modify Downtown_ Redevelopment Plan --1st Reading Moses moved ordinance 1169, an ordinance relating to the Kalispell Downtown Redevelopment Plan; modifying the procedure for modification and amendments thereto. The motion was seconded. On the first page of the ordinance, under the 6th "Whereas", the date should be September 3rd rather than the 5th. There was discussion. Nystul moved to amend Article VI Section A-1, to change 150 feet to 300 feet. The motion was seconded. Upon vote the amendment was defeated with Nystul, Buck, Larson and Granmo voting in favor. 400 Larson spoke against the motion. Upon roll call vote the motion carried with Larson voting against. Ordinance 1170-Flood lain -1st Reading Atkinson moved Ordinance 1170, an ordinance amending Ordinance No. 1101, "The City of Kalispell Floodplain Ordinance" to implement the floodplain and floodway management laws of the State of Montana within the city. Said ordinance provides for establishment of floodplains, floodways and floodway fringe districts within the city and a map designating same; terms used in administration thereof are defined; uses allowed and prohibited are defined, and use permits provided for with criteria of issuance thereof; flood proofing requirements are set out; a floodway administrator is provided for and his duties under the ordinance are established; variances are provided for and a Kalispell Flood Hazard Board of Adjustment established to administer applications for same; violation of said ordinance is made a misdemeanor; to provide for an effective date. The motion was seconded. Williams explained the purpose of this ordinance is to adopt a replacement model floodplain ordinance, which has been submitted by the State Department of Natural Resources for consideration. The ordinance is not much different from the present floodplain ordinance, some of the changes include: considerable rearranging of its content, public notification when an application is made for a floodplain development permit and language concerning the replacement of mobile homes. The State of Montana has taken the position the ordinance must be adopted or risk suspension from the National Flood Insurance Program. The motion carried with a roll call vote. BUSINESS FROM MAYOR & COUNCIL Proclamation -Chamber of Commerce Week Rauthe proclaimed September 9-1 as Chamber of Commerce Week and read the proclamation. General Discussion -Correspondence Montana Department of Transport tion A letter was sent to Governor Stephens requesting he make the final decision regarding the design of Hwy 93. The same day the letter was mailed, a letter was received from John Rothwell, Director of Highways, expressing the reluctance to proceed without the acceptance of the Kalispell City Council. After discussion it was decided to wait until next Monday to see if a reply will be received from Governor Stephens. Unified Rate Recently council was addressed by a local businessman concerning PTI Communications Rate Restructuring Proposal. The Public Service Commission required as part of their next year's full rate case, PTI must include a proposal for a unified base rate. Kennedy moved the mayor be authorized to send letters of Kalispell's support and requesting support from Montana Office of Consumer Counsel, Public Service Commission and PTI Communications for a unified base rate. The motion was seconded. With a vote the motion carried. Montana Department of Fish, Wildlife & Parks Kennedy moved the mayor be authorized to sign the letter in regards to the State Land and Water Conservation Fund requesting continued support. The motion was seconded. 1 r LJ 401 401 Upon vote the motion carried. Ashley Business Park Meeting 9/4/91 9:00 a.m. Meeting re: Ashley Business Park Flathead County Air -Pollution Control Program Larson reminded council of the public hearing on 9/24/91, and Joe Russell will be at the next council work shop and explain the contents of this program. BUSINESS FROM MANAGER Chip Seal BidAwardRecommendation Williams explained two bids were received from the chip seal bid. Pack & Company bid $62,000 and A-1 Paving bid $75,940. Both bids were responsive and he recommended the bid be awarded to Pack & Company in the amount of $62,000. The budget for this project was $65,242. Buck moved the chip seal bid be awarded to Pack & Company in the amount of $62,000. The motion was seconded. Kennedy abstained from discussion and vote due to conflict of interest. Upon vote the motion carried. Manager Proposal regarding--FRDO Williams involved himself in an attempt to keep David Greer, Senior Planner on staff at the Flathead Regional Development Office on a half time basis. Mr. Greer has resigned his full time position with FRDO effective September 2, 1991. The City/County Administrative Board agreed to allow both David and the newest employee at FRDO to job share a full time position exclusively for the benefit of the City/County Planning Commission provided that the City contributes an additional $5,000 to allow the FRDO agency enough money to employ another Senior Planner who would work on projects for the other participating jurisdictions, which were previously handled by Mr. Greer and the newest employee, Lisa Rice. He expressed his concern about maintaining continuity with respect to the city`s present planning efforts and losing Mr. Greer at this point would set us back on many of these projects 3 to 6 months. He recommended that council authorize the additional $5,000 contribution to FRDO allowing for the job share concept. Kennedy moved the city manager be authorized to expend an additional $5,000 to FRDO so as to maintain Greer and Rice as planners for the City of Kalispell. The motion was seconded. The motion carried unanimously upon vote. Lawrence Park Reclamation Project -Seek Bids Williams requested authority to seek bids for the Lawrence Park Reclamation Project. Buck moved the city manager be authorized to seek bids for the Lawrence Park Reclamation Project. The motion was seconded. The motion carried upon vote. 402 STAFF REPORTS Next Council Work Session-9/9/91-7:00 p.m. -.Manager Evaluation Next City Council meeting-9/16/91-7:00 p.m. ADJOURN The meeting was adjourned at 10:30 " DouglasID. Rauthe, Mayor ATTEST: % Amy H. Robertson, Finance Director Debbie Gifford, Clerk of Council Approved September 16, 1991 1 11