Draft Memo/City Airport Utility NeedsREPORT TO: The Honorable Mayor Pamela B. Kennedy and City Council
James Patrick, City Manager (In Absentia)
FROM: Susan Moyer, Community Development Director
Frank Garner, Interim City Manager
SUBJECT: Update on City Airport Utility Needs
MEETING DATE: October 25, 2004
For Mr. Patrick's information, staff is again calling attention to the fact that the City Council adopted Ordinance
No. 1242 on July 17, 1997, approving the Kalispell City Airport/Athletic Complex Redevelopment Plan as an
Urban Renewal Plan. Goals established by this Plan are as follows:
To minimize hazards to navigation;
To develop the airport in accordance to any airport layout plan;
To increase development opportunities on nearby properties;
To promote compatible land use in and around the airport;
To establish a funding mechanism for airport operations; and
To establish a priority schedule for plan implementation
Regardless of whether or not the airport is upgraded to a Class B-II designation, the need for infrastructure work
such as�runnin utilities, asphalt paving of runway and taxi areas, deferred maintenance, etc. continues to exist
as long as the City owns and operates the airport. The key issue here is that the City of Kalispell is the
property owner and, as such, the developer. The City ultimately is responsible for safety issues at the airport
as well as providing utilities to the hanger developers we currently have contracted with for new construction
Since the advent of a City Airport Manager, the City has one new hanger valued at $125,000 under construction
and T&L Properties ready to sign leases on four additional hangers at an estimated $750,000 value. These
leases equate to an estimated $22,000+ in new property taxes and $15,000 in annual lease payments. It is the
responsibility of the Developer (the City) to provide these leased sites with utilities and amenities that it takes
for the hanger owners to operate.
Phil Porrini of Robert Peccia & Associates has provided the City Airport Manager with a revised estimate of the
"non-refundable" utilities work that needs to be installed in order for the new hanger leases to be signed and
construction to take place. The estimate is $9,050 higher than submitted on August 25, 2004 due to the location
of the four new T&L Properties' hangers. The underground utility costs are now estimated at $145,140. Mr.
Porrini concurs with the local utility companies that it is much more cost effective to lay the utilities at one time
rather than piece meal. Mr. Gary Nyquist of Flathead Electric Coop has stated that FEC would take at least a
year to start the project if the City does not do a single construction project. This, most certainly, would result
in the loss of the T & L Properties' hangers as well as any new inquiries.
Tax Increment funds be utilized to pay for the non -reimbursable items such as utilities, an internal road to
access hanger sites, tie downs and aircraft parking areas. The projected breakdown is as follows:
Underground Utilities $112,590
Engineering and Utility Company Charges $ 32,550
Chain link fence, automatic vehicle gate and access road $ 60,800
Please keep in mind that upon construction of the new hangers the City Airport will start generating annual
revenue in the amount of $37,000. As the Airport/Athletic Complex District sunsets, the money generated
through the above investments will be returned to the School District, the County and the City if it is the
Council's wishes.
As suggested by Council.
Respectfully submitted,
Susan Moyer, Director,
Community Development
Memo Prepared: October 22, 2004
Frank Garner,
Interim City Manager