2008/05/05 Authority to Enter into Contract to Purchase Fire Place ShopCl*ty
Post office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758 -7000 Fax -
(406) 758 - 7758
REPORT To : Honorable Mayor and City Council
FROM* Fred Leistiko, Airport Manager
James H. Patrick, city Manager
SUBJECT: Council Authorization to Enter into a Purchase contract for the Fire
Place Shop
MEETING DATE: May S, 2008
Background: The City continues to look at purchasing properties needed for the future
airport expansion. one of the properties that has come available is the Fire Place Shop
located on Hwy 93 South. While this is not an immediate need for the airport
expansion, it does provide future access to the airport and 7.6 acres of City owned
property, former City dump. This land has been annexed to the City but is not
currently in the airport TIF.
Staff has negotiated a buy sell agreement on this parcel for $332,000 on a land contract
with the following terms. The closing would be the end of July with ten percent paid at
closing. The owners would become short term. tenants. Forty five percent would be
paid in December 2008 and forty five percent paid for 'n December 2009. The intended
use of this parcel will be for right -of way to the former City dump and future airport.
In the event the City is able to meet its access needs by other means, this property, on
Highway 93 frontage, will retain its value and may be resold.
The Airport engineers have consulted with a geo-tech company to verify that the former
dump can be used for future ramp space, aircraft parking, and/or hangers. Larger and
heavier structures would require pilings or other reinforced foundations at a estimated
cost of $40.00 per square foot. By adding structures and impervious cover to the former
dump limits ground water contamination and provides for a beneficial use to otherwise
useless 7.62 acres of City owned property.
RECOMMENDATION: That Council pass the following motion: "I move to give the
City Councils' authorization to the City Manager and to otherwise ratify the actions of
the City Manager to contractually commit the City of Kalispell to the purchase of the
Fireplace Shop real property located on Highway 93 South in Kalispell on the terms set
forth in the City Manager's Memo to Council dated May 1, 2008."
Respectfully Submitted,
Fre Leistiko
Airport Manager
James .Patrick
City Manager