Resolution 5427 - Support of Continuing Cooperation & Partnership - DNRC, City & KidsportsM':� DT.YiiliTl l�Ci7►iCi�'y�il
WHEREAS, the Montana State Department of Natural Resources and Conservation [DNRC]
and the City of Kalispell [CITY] are parties to a Lease Agreement, effective May
7, 1997, whereby the City leased approximately 134 acres in the Southeast Quarter
of Section 36, Township 29N, Range 22W, Flathead County, Montana; and
WHEREAS, the Lease Agreement provides that the Leased Property will be used by the CITY
for youth athletic fields and supporting facilities; and
WHEREAS, The CITY and Kidsports, a Montana nonprofit corporation, are parties to a
public/private partnership whereby Kidsports develops athletic fields on the Leased
Property for use by local youth sports organizations; and
WHEREAS, the Leased Property presently contains 30 developed youth athletic fields, parking
lots, five concession stand/restroom buildings, associated improvements, playgrounds,
parks, and a cross country running course; and
WHEREAS, until recently DNRC maintained its Kalispell office on approximately twelve acres of
land located along U.S. Highway 93 near the northeast corner of the Leased
Property; and
WHEREAS, DNRC has relocated its Kalispell office to new facilities located along the west
boundary of Section 36, and its former office site will be available to an interested
party for development; and
WHEREAS, DNRC desires to increase the size of its former Kalispell office location by
adding approximately twelve acres from Leased Property to improve its
marketability to prospective developers; and
WHEREAS, the CITY and Kidsports desire to arrive at an agreement with DNRC that will
perpetuate the existence of the youth sports complex on the Leased Property
on terms that are in the best interest of the CITY and Kidsports and their
respective constituents in exchange for removing a portion of the Leased
Property from the Lease Agreement as described in these Recitals; and
WHEREAS, DNRC and Kidsports have agreed to pursue objectives such as those outlined in
the letters of intent from DNRC and Kidsports dated April 27, 2010 and attached
as Exhibit "A" and Exhibit `B" respectively.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City Manager is hereby authorized to continue to negotiate with
DNRC and Kidsports with the goal to perpetuate the existence of the
youth sports complex on the Leased Property on terms that are in the
best interest of the CITY.
SECTION II. That the City shall treat all development proposals for the subject real
property consistent with its applicable ordinances, rules and regulations.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL THIS
3RD DAY OF MAY, 2010.
Tammi Fisher
Mayor
ATTEST:
Judi Funk
Deputy City Clerk
EXHIBIT "A"
DEPARTMENT OF NATURAL RESOURCES
AND CONSERVATION
BRIAN SCI WEITZER, GOVERNOR
-SIATE OF MONTz NA
DIRECTOR'S OFFICE (406) 444-2074
TELEFAX N JMBER (406) 444-2684
April 27, 2010
The Hon. Mayor Fisher
The Kalispell City Council
c/o Jane Howington, City Manager
City of Kalispell
P.O. Box 1,997
Kalispell, MT 59901
Mr. Dan Johns, President
Kidsports
P. O. Box 1205
Kalispell, MT 59903
RE: Letter of Intent, DNRC/Ballfield Task Force Project
Dear Mayor Fisher, City Councilors, and Chairman Johns:
1625 ELEVENTH AVENUE
PO BOX 201601
HELENA, MONTANA 59620-1601
The purpose of this letter is to verify Department of Natural Resources & Conservation's (DNRC)
commitments to the City of Kalispell and Kidsports concerning the DNRC/Ballfield Task Force
Project.
DNRC recognizes the following project goals:
• Benefit the Common Schools Trust beneficiaries by providing an opportunity for DNRC to
combine its former agency site with additional acreage from the City leasehold to create an
"enhanced parcel," with expanded commercial development opportunities and greater
revenue.
• Achieve more permanency on the larger portion of the City's leased area, through the City
and Kidsports cooperatively releasing a smaller portion of that leased area in support of this
project.
• Arrive at a commonly beneficial site plan for the enhanced parcel through a joint planning
process, with a developer/planner engaging the City of Kalispell, Kidsports, and DNRC,
with the additional intent to maximize predictability to the extent practicable by law for the
enhanced parcel's entitlement and development process.
• Provide a potentially profitable project for the anticipated developer, and offer assurance to
that developer that the three parties are operating in sync toward common goals.
CENTRALIZED SERVICES CONSERVATION & RESOURCE RESERVED WATER BIGHTS OIL & GAS TRUST LAND MANAGEMENT
DIVISION DIVISION COMPACT COMMISSION DIVISION DIVISION
4406)444-2074 (406)444-6667 (406)444-6841 (406)444-6675 (406) 444--2074
City of Kali spell/Kidsports
April 27, 2010
Page 2
In order to complete the DNRC/Ballfield Task Force project, DN`RC commits to the following:
I
• Submitting the enhanced property for the planning and leasing project phases;
• providing the right to entrance of the enhanced property for project participants;
• administering and directing a two -Request For Proposal (RFP) process (planning and
leasing) for the enhanced site;
• managing the two RFP processes consistent with standard DNRC policies and procedures;
• engaging, the DNRC/Ballfield Task Force members as the Project Coordination Committee
anticipated for the Request for Proposal for Planning, (RFP-P) process;
• securing a commercial appraisal for the enhanced site;
• amending the City's lease to reflect the plan when appropriate;
• if the City (with Kidsports' assistance) proposes to purchase a permanent easement on the
leasehold property in connection with this project, basing the value as residential.-
• if the City (with Kidsports' assistance) proposes to purchase a permanent easement on the
leasehold property in connection with this project, offering a three-year option for that
purchase;
• not diminish the land value or negate the plannin-, and leasing efforts that the parties have
agreed to; and,
• making a reasonable effort to work with the participating parties to develop alternatives to
address unforeseen circumstances.
Recognizing that modifications may be necessary if unanticipated issues arise, DNRC also commits
to administering a RFP-P process wrliereby a successful respondent (planner/developer) will work
with designated representatives of all three parties to define planning alternatives for the site,
analyze options, and eventually select a preferred plan, complete with the related entitlements
application package. DNRC recognizes throughout that effort, that the City will continue to
actively participate to the extent practicable by law in the planning and entitlement process for this
project. DNRC will then administer a second Request for Proposal for Leasing (RFP-.L). The RFP-
L will go out for bid, with the condition that the successful RFP-P respondent ("planner/developer")
will have the right to match the high bid for the RFP-L.
DNRC's commitments are predicated upon the City of Kalispell honoring its commitment in the
Resolution dated May 3, 2010, and Kidsports' Letter of Intent dated April 27, 2010.
We greatly appreciate the collaborative spirit of both the City of Kalispell and Kidsports on this
project.
Sincerely,
vt�
MARY SEXTON, Director
Department of Natural Resources & Conservation
cc: Robert Sandman, NWLO Area Manager
Greg Poncin, KU Unit Manager
Anne Shaw Moran, Chair, DNRC!Ballfield Task Force
DNRC Real Estate Management Bureau
EXHIBIT "B"
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Y./2Lt3IN _ M OM A , ; 0 M it€'. k .. € , ,�.3xz't';�i
April 27, 2010
Mary Sexton, Director
Montana Department of Natural Resources
P. O. Box 201601
Helena, MT 59620-1601
Jane Howington, City Manager
City of Kalispell
P. O. Box 1997
Kalispell, MT 59903
Re: Letter of Intent — DNRC/Ballfield Task Force Project
Dear Ms. Sexton and Ms. Howington:
The purpose of this letter is to set forth Kidsports' commitments to the Montana Department of Natural
Resources ("DNRC") and City of Kalispell ("City") with respect to the project commonly called the
DNRC/Ballfieid Task Force Project ("Project").
Kidsports recognizes that objectives of the Project include the following:
• Benefit the Common Schools Trust beneficiaries by the early conversion of approximately 12
acres of the Kidsports athletic complex to commercial uses which, when added to the real
property previously occupied by DNRC, will accelerate revenues realized by the Trust. The area
to be converted is located south of the previous DNRC site and north of Kidsports' softball
fields.
• Promote development of the area under consideration that will benefit the City and its residents.
• Result in a permanent easement that fosters the permanency of the remainder of the Kidsports
athletic complex.
Provide a commercially profitable project for a developer.
In order to successfully achieve these objectives, Kidsports commits to the following:
April 27, 2010
Page 2
® Participate as a member of a task force that will work cooperatively with DNRC, City and
anticipated developer in design and development of the Project.
• Allow reasonable access to relevant portions of the leased area so long as the access does not
interfere with scheduled uses.
• Agree to DNRC and City amending the lease to release approximately 12 acres of the current
Kidsports site, which will leave approximately 122 acres unaltered_ The release will include all
improvements, infrastructure, design and planning within the area to be released in order to make
those lands available for the Project, as well as foregoing future development of this area. In
consideration of the release of those lands for future development, Kidsports will seek
$850,000.00 compensation from future developers and modification of the future usage
arrangement for the balance of the Kidsports site, but it will not seek compensation from DNRC.
The terms of payment are negotiable.
® Participate as necessary toward achieving a permanent easement or acceptable alternative on the
balance of the Kidsports site, acknowledging that DNRC will accept residential appraised values
and payment over a three year period for a permanent easement.
R Kidsports will not intentionally take any action that diminishes the value of the 12 acres during
this process or obstructs the planning process.
® Work with the parties to develop alternatives that address unforeseen circumstances.
Kidsports recognizes that DNRC intends a two -phases planning/development process and commits to
cooperatively participating in the process. Kidsports appreciates the collaborative spirit of DNRC and
City to achieve these objectives.
Sincerely.
Daniel D. Jahns
President
c. Robert Sandman