1995/05/08 Airport Appraisalsi 1
Incorporated 1892
Telephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Zip 59903-1997
Bruce Williams
City Manager
City Council
Members:
Gary W. Nystul
Ward I
MEMORANDUM Cliff Collins
Ward I
Date: May 8, 1995 Barbara Moses
Ward 11
From: Lawrence Gallagher, Director Dale Haarr
Ward II
To: Bruce Williams, City Manager Jim Atkinson
Subject: Kalispell City Airport - Appraisal recommendation Ward III
Lauren Granmo
Ward III
I have reviewed the proposals you have received from Wa dlIV .Kennedy
Kelley Appraisal and Roger D. Jacobson, MAI. I suggest that
you recommend that the City Council engage Roger D. Jacobson, M. Duane Larson
MAI, to perform the work authorizing the Package Discount of Wardle
$10,400 for all of the work described in his proposal.
First, let me outline the reasons for my
recommendation and provide comment on -each element of the
proposal(s) beginning with Kelley's.
KELLEY Conflict: Because Kelley is a pilot, small airplane
owner and investor/promoter/originator in Flathead Lake Sky
Ranch and has rented hangar/tie-down space at the Kalispell
City Airport, he may be less objective than Jacobson.
Jacobson has not disclosed any conflicts; but then neither did
Kelley.
Past Work of a Similar Nature: (See Kelley's
description of Past Work -appraisals; specifically, items 1, 2,
and 4.) Kelley appraised the City's airport (Courtyard
Apartments) property in 1988, the Buffalo Head Subdivision in
1990, and the Big Sky Fly and Tackle/Legacy Cafe property in
1991. All of the appraisals are available for review should
any of the City Council members care to examine his work.
Price: Mr. Kelley quoted $10,000 for five
appraisals and elected not to discuss the highest and best
use, long term lease considerations, redevelopment potential
and/or other uses permitted in an I-1 zone or to offer a price
for said work as called for in the solicitation of proposals.
Mr. Bruce Williams
Airport Appraisal Memorandum
Page 2
Time: Mr. Kelley offers a delivery date "within 60 days of
receiving the order".
JACOBSON Conflict: Mr. Jacobson states: "The appraisers have no
conflict of interest nor any potential conflict of interest as a
user, renter, investor, or in any other way with any area airport."
Past Work of a Similar Nature: Page 1 of Jacobson's
April 17, 1995 proposal outlines several recent appraisal
assignments of similar property. In my opinion, he demonstrates
superior experience in providing the work the City has called for.
His appraisal of the Fairgrounds, Highway 93 right-of-way and
airport area commercial projects should give him an adequate
understanding of the market and comparables. We have samples of
his work in the office should any of the City Council members want
to review his work product.
Price: Jacobson has offered a Package Discount of
$10,400 for all of the work requested by the City. This price
includes the highest and best use narrative and redevelopment
alternatives called for on the City's industrial parcel located off
Airport Road.
Time: A start date with two weeks notice and completion
within one month of that date.
RECOMMENDATION
Based on a review of both proposals and the presentation,
qualifications, and timing, I recommend that you request City
Council authorization to enter into a contract for professional
services to engage Roger D. Jacobson, MAI, to perform all of the
work specified in your RFQ/RFP as outlined by you and included in
Mr. Jacobson's April 17, 1995 response.
Also, I recommend that we meet with Mr. Jacobson to
conduct a pre -appraisal conference to discuss the City's
expectations and timing or phasing of the appraisal/highest and
best use analysis.
I will be available at tonight's meeting to respond to
any questions you or the Council may have regarding my recommen-
dation.