1997/04/21 Timmreck AcquisitionAgenda -April 21, 1997
AGENDA ITEM 8 - TIMMRECK ACQUISITION
BACKGROUND/CONSIDERATION: I have enclosed a memo from Larry
Gallagher outlining this issue. The funding for this acquisition.
will come from the airport TIF funds. If our discussion of the
Daley Fields is positive and a "go" for the sale of the property,
we could complete this purchase that has been pending for two
years. The purchase of the property will allow us to further
control the airport area property.
RECOMMENDATION: I recommend that we complete this purchase:
A. if we believe we are proceeding with the airport
improvements; and
B. if we believe that Daley Fields will be sold.
If we are not certain that we can proceed with these issues, we
should further delay the purchase of this property.
ACTION REQUIRED: A MOTION to purchase this property will be needed
(if we are able to complete the documents prior to the meeting).
1 1
e I� l� 011
Incorporated 1892
Planning, Economic &
Community Development Department
P.O. Box 1997
Kalispell, MT 59903-1997
248 Third Avenue East
(406) 758-7740
(406) 758-7739 (office fax)
(406) 758-7758 (City Hall fax)
To: Clarence W. Krepps, City Manager
From: Lawrence Gallagher, PECDD Director �.
Subject: Early Acquisition of Lois Timmreck Real Est to - Identified in County
Records as Tract 8, Section 18, T28N,R21 W, and also as Parcel "C"of
Survey #1 1395; a 1.478 acre, rectangular, vacant parcel of land on the
northwestern corner of Airport Road and 18th Street West, Kalispell,
Montana (Plat map attached)
Date: April 4, 1997
Lois Timmreck, owner of the real property described above, has offered to sell her
property to the City of Kalispell for One Hundred Thousand Dollars ($100,000.00)
on an installment sale contract. The offer and terms were offered through her
attorney Arlene Anderson Knote in the attached letter dated March 17, 1997. 1
recommend that the City accept the offer to sell and suggest that the City Council
consider approval of a resolution authorizing the purchase of the property. Please
place this item on the City Council Meeting Agenda for consideration.
The City has adopted Ordinance #1242 approving the Kalispell City Airport/Athletic
Complex Redevelopment Plan. An objective of the Plan is to ensure that, to the
extend feasible, the Kalispell City Airport will meet FAA guidelines for safety
reasons. The Timmreck property is located in the designated "Runway Protection
Zone" (RPZ) at the north end of the runway. The provisions of the RPZ are not
only to preclude obstructions potentially hazardous to aircraft, but also to control
building construction as a protection from nuisance and hazard to people on the
ground. Guidelines were developed recommending that clear zones be kept free of
structures and any development which would create a place of public assembly.
Both the Neighborhood Plan and Urban Renewal Plan for the area contemplated
purchasing the Timmreck property for the RPZ.
The subject property was appraised by Roger D. Jacobson, MAI, and John D.
Atkinson, Associate Appraiser. As of June 21, 1995, it is their opinion that the
EW�I 110l6iIWi
QPPCRTUNFY
Clarence W. Krepps, City Manager
Page 2
April 4, 1997
"fair market value" of fee simple property rights as defined in the appraisal is
$100,000.00. A copy of the appraisal was delivered to Mrs. Timmreck and her
attorney for their review and comment.
Two months ago, I called the City's appraiser and asked his opinion as to changes
in market value over the past year. He advised me that market conditions had not
changed dramatically, however, a new appraisal of the property may "indicate a
slight increase in the estimate of "fair market value." After conveying this
information to Ms. Timmreck and her attorney, and discussing the delay of
obtaining a new appraisal, it was suggested there were possible tax advantages of
considering an immediate offer to sell at the 1995 appraised value on an installment
sale.
Please let me know if you would like additional information to aid you or the City
Council in their consideration of this request.
Atch 2
Y:
1. Plat Map - Parcel "C" of Survey #1 1395
2. Letter from Arlene Anderson Knote, March 17, 1997
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ADDITION
Arfene Anderson Knote Attorney At Law
Post Once Box 2683
1795 Highway 2 West Phone: (406) 892-5331
Columbia Falls, MT 59912 Fax: (406) 892-5337
March 17, 1997
Lawrence Gallagher, Director
Planning, Economic & Community
Development Department
P.O. Box 1997
Kalispell, MT 59903-1997
Re: Timmreck Property, Airport Road at 18th Street
Dear Mr. Gallagher,
Per our conversation of March 17, 1997, I am writing to relay terms to which Lois
Timmreck has said she would agree for an installment sale of her property near the city airport to
the city of Kalispell. Lois offers a $100,000 sale price with $25,000 down and $75,000 financed
at 6.50% interest over five years with annual payments beginning January 1, 1998.
We believe this to be a fair offer given Lois' willingness at this time to accept the 1995
appraisal value of $100,000 and the current Applicable Federal Rate at which Lois will be taxed,
whether or not she receives it, namely 6.38%.
We hope to hear from you soon regarding this offer.
Sincerely,
Arlene Anderson Knote
Lois Timmreck
836 East Washington