03/28/98 SP City Council Minutes1142
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A SPECIAL MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. WEDNESDAY, MARCH 25, 1998, IN THE COUNCIL CHAMBERS AT CITY
HALL IN KALISPELL, MONTANA. MAYOR BILL BOHARSKI PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR,
DUANE LARSON, GARY NYSTUL, RON VAN NATTA, DOUG SCARFF AND CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT.
Mayor Boharski called the meeting to order and led the Pledge of
Allegiance.
KALISPELL DOWNTOWN CENTER AND NATIONAL FLOOD SERVICES BUILDING
PROPERTY OFFERINGS
Larry Gallagher of the Planning, Economic and Community Development
Department gave an overview of the status of the two properties.
He explained the Irwin Davis proposal for the former Flathead
Valley Community College property has been withdrawn, and after
consulting with the City Attorney it has been determined the City
is required to re -offer the parcels for sale. He said staff met
with the Kalispell Development Corporation Advisory Board which has
recommended that the Council re -offer the parcels singly or in
chunks. Gallagher said the Council also has to decide what the
permitted uses will be, since the B-4 zone covers a wide array of
uses. Gallagher said in the past, the Council stated clearly it is
looking for a high density, high value development, in other words
multi -story. He asked if the Council would now consider a single -
story building. He said the KDC Advisory Board recommends $6.65 a
square foot as a low reasonable (price) for the property. He added
the Board also recommends splitting the parcels and recommends a
minimum of a 60-day offering period. Gallagher said what the staff
needs now is a clear definition of how the land is to be offered,
the length of the offering, the minimum price of the offering and
the uses the Council is willing to entertain.
David Irwin of Irwin Davis & Co., Redmond, Washington, told the
Council that Irwin Davis & Co. really tried to adhere to the letter
and spirit of what they wanted to see on the property. He said the
Company, after a year of hard work, came to the conclusion there
was a way to move forward on the project but not adhering to the
Development Agreement they had executed. Irwin said the Company
had no choice but to withdraw from the Agreement. He told the
Council he made several observations over the past year. He said
it is in the best interest to maximize density on a site and that
any future development adhere to parking requirements. Irwin said
it is also important the project has a high level of quality.
Ken Yachechak, 43 Hillcrest Drive, Kalispell, told the Council he
and his partners are prepared to write the City a check, tonight,
for $100,000, as a non-refundable deposit, for the purchase FVCC
site. He said the total would be $419,000 which translates into
$6.65 per square foot. Yachechak said he and his partners; Jeff
Ellingson, Greg Ellingson, Patty Pennington, Roger Jacobson and Jim
Thompson all have a long-term commitment to Kalispell and want to
"drag" Kalispell from the Historical Theme into the 21st Century.
He said he thinks Kalispell needs to be progressive and modern.
Yachechak says they are prepared to build a campus of buildings
surrounded and including parking and open spaces, a mall -type
situation.
Ron Trippet, Fairway Boulevard, said he is a local property owner
and would like to propose a property exchange. He said he owns
some property near the airport which he would like to exchange for
Lots 16 and 17, Block 36. Trippet said the City shouldn't be
looking outside for developers when local people are willing to
develop the area.
Atkinson questioned Neier if the Council could entertain the
proposal that was made tonight.
Neier said since Irwin Davis has withdrawn its proposal the
property has to be re -advertised.
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Atkinson suggested the Council identify what areas would be changed
in the offering, such as the parking, density, quality and design,
and whether the property is going to be offered as part or whole.
Haarr said he felt questions to the developers should come first
and asked Neier to clarify why it wouldn't be possible to act on
the offer that is before the Council tonight.
Neier answered the advertisement was made months ago and any offer
made after that would not be in conformance with the advertisement.
He said the City must make a new offering.
Haarr questioned Yachechak as to whether the proposal he and his
partners made includes all the property that was accepted by Irwin
Davis.
Yachechak said it includes all the property except the National
Flood Services building.
Haarr told the Council that a "bird in the hand is worth a whole
bunch in the bushes" and he feels Yachechak's offer is the first
concrete one the Council has had.
Neier said the property has to be offered three times in the
newspaper for three succeeding weeks so the Council is looking at
opening bids around mid -May.
Haarr moved to re -advertise the property exactly as it was put
forth before, as one piece, and that the acceptance date be at the
earliest possible time. The motion was seconded.
There was discussion.
Donahue asked if the rights of Irwin Davis & Co. in the property is
transferrable to Yachechak and his partners without having to
advertise it.
David Irwin said he doesn't think it can legally be done and would
defer the question to the attorney.
Neier agreed, saying the property has to be re -advertised.
Krepps expressed concern that the Council is negotiating with
Yachechak and asked the Council to focus on the actual process by
getting proposals and making a decision the way it was intended.
Nystul asked for a clarification of the motion as to what the time
table is.
Haarr answered the intent is the earliest time table possible, not
later than 45 days from today.
Nystul also asked what the motion intends as to permitted uses.
Haarr said his intent is uses that are allowed under the existing
zone.
Gallagher said if the Council opens up the property to all
permitted and conditional uses under the B-4 zone, it opens it up
to a whole different group of developers.
Haarr said, as clarification, the original offering should not be
changed and a simple duplication would be in order.
Gallagher said the original offering did not include the National
Flood Services building.
Boharski, yielding the chair to Nystul, moved to amend the motion
to allow the property to be sold in any portions or parcels in any
combination thereof. The motion was seconded by Larson.
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There was discussion.
Larson, Haarr and Scarff all spoke in favor of offering the
property as one total piece.
The amended motion failed with Boharski, Donahue and Nystul voting
in favor and Atkinson, Graves, Haarr, Larson, Scarff and Van Natta I
voting against.
Boharski resumed the chair.
Haarr moved, if the second agrees, to clarify the main motion by
stating the KDC property should be offered as one piece, which was
originally done, and the National Flood Service Building and lots
15 and 16 being offered separately. Larson agreed.
There was discussion.
Atkinson moved to reconsider Boharskils amendment to the motion.
The motion was seconded by Donahue.
The motion failed with Atkinson, Donahue, Nystul and Boharski
voting in favor and Graves, Haarr, Larson, Scarff and Van Natta
voting against.
Boharski, yielding the chair to Nystul, moved to amend the main
motion by offering the NFS building and Lots 15 & 16, another
offering, half of Block 36, lots 1, 2, 3, 4 and 13, 14, and a third
offering, Lots 13, 14, 15, 16, Block 36. The motion was seconded by
Atkinson.
There was discussion.
Van Natta expressed concern the latest amendment could mean the
parking would be given up for the NFS building.
Haarr stated the City can't allow the property to get all broken
up.
Boharski moved to clarify his motion, if the second agrees, by
making two offerings, with Lots 13, 14, and Lots 1, 2, 3 and 4,
Block 45 being one offering, the NFS Lots 15, 16 are offered as an
option and half block of 36, Lots 13, 14, 15, 16, Lots 1, 2, 3 and
4 minus 1 & 2 and the NFS building be offered with 1 & 2. Atkinson
agreed.
There was discussion.
Van Natta said he felt the Council should require that Lots 1 & 2
be converted to a parking lot at the purchaser's expense.
Krepps said that kind of requirement can be discussed after
proposals are received.
The amendment passed unanimously.
There was further discussion with Atkinson expressing concern about
the offering being only 45 days, which he felt limited bidders.
Yachechak requested the Council move as quickly as possible because
the construction window is not that long.
The original motion, as follows per Neier, passed unanimously:
The City shall advertise the property as four separate
offerings:
1) Lots 1 through 12, Block 36, Lots 13 and 14, Block 36,
and Lots 1 through 4, Block 45
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2) NFS and Lots 15 and 16, Block 36;
3) NFS and
Lots 1
and
2, Block 36;
4) Lots 1
through
12
and Lots 13 through 16, Block 36 and
Lots 1
through
4,
Block 45 with bids being opened as
quickly
as the
law
allows.
Boharski said to simplify
the
minutes for the record, the "meat" of
the minutes should be what the motions were, which motions failed
and which motions
passed.
DALEY FIRM PROPERTY OFFERING
Gallagher explained to the Council that the City has been
proceeding with the airport plan with the understanding that all
three lots of Daley Field would be sold. He said the Council sold
Lot 2 to Rosauers at a cost of $3.25 per square foot with the
understanding that Lots 1 and 3 would be offered for sale this
summer for private retail development. Gallagher said at this
point the City has approximately 1.45 million dollars in the bank
from the sale of the Haven Field property and the Rosauers
property. He added this year's budget includes 1.5 to 1.6 million
dollars for capitol improvements to the Kalispell airport which
includes land acquisition, fencing and lighting to bring the
airport up to minimum B-1 standards which would make it a safe,
general aviation field. Gallagher said the City will need
additional money to cover the costs and the only way the City can
come up with the additional capitol is from the sale of the
remaining lots of Daley Field. He said the City staff, the Airport
Advisory Board and the KDC Board are all recommending the property
be sold and not leased.
Krepps said if the Council decides to lease the property, a
financial consultant will have to be hired to set up the lease
properly.
Airport Advisory Board member Gib Bissell said some lease revenue
is necessary for the survival of the Airport. He said the 20-year
marketing plan for the Airport was based strictly on the soccer
fields and Airport Road property, not the property fronting Highway
93. Bissell added the only way the Airport is going to work is to
get a lump sum right now, whether or not the City receives some FAA
funding. He said if it's possible to raise the 1.7 million dollars
needed for the Airport and lease the remainder of Daley Field, than
the City has the best of both worlds, but he added he doesn't think
that can be done.
Haarr said the Council needs a scenario, for example if the City
gets the FAA funding what will that pay for, and what the City
needs if it doesn't get the funding. He said the City may be
acting prematurely if it sells the land.
Gallagher said in the Urban Renewal Plan the City pledged to make
the Airport a B-1 general aviation field. He said to do that
several things are needed; fencing, lighting, extension of runway
and acquisition of clear zones. Gallagher said even if the City
receives FAA funding it cannot be used for land acquisition. He
said the City needs all the cash the Council can raise.
Atkinson moved to instruct City Staff to offer Daley Field Lots 1
and 3 for sale. The motion was seconded by van Natta.
There was discussion
Graves said if the City adds sewer and water to the lots than the
estimated selling price of $3.25 a square foot should be
considerably higher.
Gallagher answered he believes $3.25 is the worst the City can do.
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Boharski said he is concerned that if the Council offers the
property for sale, and then the FAA comes in with the money and the
Council changes it mind, how will that look to the public.
Gallagher responded the offering could be made for a prolonged
period of time and the Council would still retain the right to
reject any and all proposals for any reason.
Nystul said he would like to read the information presented tonight
before making a decision.
Haarr agreed, saying he wants to see an update and parallel
scenario before making a decision. He said he feels the Council is
dealing with outdated figures.
Krepps said all those type of questions are in the Facilities Plan,
for example land acquisition, towers, moving of towers, etc. He
said at this point we don't know what those are going to be.
Krepps suggested the Council offer the property and try to make the
timing as close to receipt of the Phase I Airport Master Plan as
possible. He said the City extend the offering five or six months
and then, when the figures are available, make the decision.
Airport Advisory Board member Art Thompson told the Council it is
"time for action, not procrastination."
Van Natta said he felt the Council should go ahead and offer the
property for sale.
Donahue said he hates to see the City sell the property when it may
not be necessary.
Donahue moved the matter be tabled until the April 6 meeting. The
motion was seconded by Nystul.
The motion carried with Donahue, Graves, Haarr, Nystul, Scarf and
Boharski voting in favor, and Atkinson, Larson and Van Natta voting
against.
Atkinson moved to adjourn. The motion was seconded.
ADJOURN
The meeting was adjourned at 10:40 p.m.
Wm.E .5Ohar5ki .
Wm. E. Boharski, Mayor
ATTEST:
Theresa white
Clerk of Council
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