1996/03/19 Kalispell City Airport/Athletic Complex Redevelopment Plan*EPARTMENT OF i
AND CONSEIVATION
MARC RACICOT, GOVERNOR
1625 ELEVENTH AVENUE
STATE C, MONTAf�A
DIRECTOR'S OFFICE (406) 444-2074 PO BOX 201601
TELEFAX NUMBER (406) 444-2684 HELENA, MONTANA 59620-1601
Mar�99, 1996
Douglas Rauthe, Mayor
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
Dear Mayor Rauthe:
Thank you for your proposal regarding the development of a ballfield
complex on the state section located north of Kalispell. We have met with
Larry Gallagher and Dan Johns to discuss the project and the purpose of this
letter is to give a description of the process which needs to take place in
order to further this proposal. The following is a list of the necessary
steps:
We have received your written proposal and will consider this the appli-
cation for the ballfield project. A $25 processing fee will need to be sub-
mitted. The city should provide the department with engineering schematics
for use in our review process as soon as possible. Also, as we have discussed
with Mr. Gallagher, the city should contact the Department of Transportation
(Tom Martin 444-6063) regarding the potential to share the use of a storm
water retention pond planed for construction this summer. The department has
entered into an agreement with the DOT which would allow for this type of use.
The Department will conduct an environmental assessment of the project
which will include public scoping. The City has indicated that staff are
available to assist in this process if necessary.
The Department will determine wither or not to withdraw the subject
property from the current agricultural lease held by Clinton Grosweiller. If
the property is withdrawn from the agricultural lease, the city must compen-
sate Mr. Grosweiller for any improvements made on the property. An arbitra-
tion process is available if the two parties can not reach agreement.
The department would then reclassify the property from an agricultural
use to the "other" use category. A capability inventory will be completed by
the department. The city may need to survey the property to be used for the
ballfields.
Then, pursuant to ARM 26.3.142 the department is required to place the
lease up for competitive bid. The department would advertise this lease for
the purpose of public recreation, specifically a ballfield complex.
The departments constitutional mandate for the management of school
trust lands is to earn full market value for the use of trust lands. This is
normally accomplished on commercial leases by charging 5 - 10 percent of the
appraised value of the property. An estimate would put the annual rental rate
between $40,000 - $80,000 based on property values in the Flathead valley.
However, the department is willing to negotiate the rental rate considering
possible zoning changes which would allow for commercial development on other
portions of the state section and other considerations which may be pertinent
to this case.
We look forward to working with the City of Kalispell to ensure the
success of this project.
Sincer ly
Clive Rooney, Chief
Special Uses
c: Lawrence Gallagher
Bill O'Brien
Jeff Hagener
Jeanne Fairbanks
cll
0 O IJ
Incorporated 1892
Telephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Kalispell, Montana
Al Thelen
Zip 59903-1997
Interim City Manager
City Council
Members:
Gary W. Nystul
MEMO
Ward I
Cliff Collins
Ward I '
To: Mayor and City Council
Norbert F. Donahue
Ward II
From: Al Thelen
Dale Haarr
Ward II
Date: March 22, 1996
Jim Atkinson
Ward III
Re.: The Kalispell City Airport/Athletic Complex Redevelopment
Lauren Granmo
Plan Ward III
Pamela B. Kennedy
Your goals session with Lyle Sumek identified the municipal Ward IV
airport and ballfields as your #1 priority under "Our Agenda M. Duane Larson
With Action" issue for 1996 (see page 93 of the "Leader's Guide" Ward IV
book).
This item relates to the "Kalispell Airport Neighborhood Plan"
prepared and adopted in February, 1993, and to the "Kalispell
City Airport/Athletic Complex Redevelopment Plan Analysis"
presented to you in February of 1996, copies of which you have
been provided.
If you don't have a copy of the aforementioned documents, please
contact Kathy.
I e ( ry 0i aIivli
Incorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
TO: Al Thelen,
City Manager
FROM: Michael Baker, C.L.P.
Director, Parks & Rec
RE: Engineering Services
DATE: March 18, 1996
Al,
rt Layout Plan
I am writing to request engineering services to
develop an airport layout plan for Kalispell City. The FAA
has outlined criteria for funding available to communities,
and in order for us to qualify the initial step is to
develop the airport layout plan (ALP) within FAA
guidelines.
Two engineering firms have been approached for quotes
to complete the ALP: Morrison-Maierle and Robert Peccia &
Associates. Peccia & Associates were low with a quote of
$5,674.00, were Morrison-Maierle was $10,000.00.
We have submitted a grant application with Montana
Aeronautics to fund the ALP study 50/50. The following is
a synopsis of funds and responsibilities:
$ 2,832.00 State/Montana Aeronautics
1,500.00 Pilots Association
1,342.00 City Share
$ 5,674.00 Total
The City Airport budget has a line item for contracted
services, which will cover the City's share.
The Montana Aeronautics grant has b n submitted to
Helena, to meet its deadline of M c 2 The Aeronautics
Division is aware that City Council approval is pending and
this matter will be reviewed at the forthcoming workshop.
If additional information is needed, please feel free
to contact me.
MB/dlw
Douglas Rauthe
Mayor
Bruce Williams
City Manager
City Council
Members:
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward 11
Dale Haarr
Ward II
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV
KC A/A - PLAN 25-Mar-96
THE KALISPELL CITY AIRPORT/ATHLETIC COMPLEX
REDEVELOPMENT PLAN -1996
Summary of Financing/Scheduling Alternatives, Draft date: 25-Mar-96
Based on the assumptions contained in THE KALISPELL CITY AIRPORT/ATHLETIC COMPLEX
REDEVELOPMENT PLAN ANALYSIS, dated: January 23, 1996, the following Financing
and Scheduling Alternatives are offered for discussion purposes. The reviewer must consider
the cost estimates in the PLAN preliminary and more than likely low according to a recent
review by an FAA engineer. Also, subsequent to the PLAN's development, the City has
authorized development of an Airport Layout Plan in hopes of including it in FAA's NATIONAL
PLAN OF INTEGRATED AIRPORT SYSTEMS (NPIAS). The Layout Plan will identify additional
FAA requirements for improvements not included in the original cost estimate.
1. THE PROJECT AND BUDGET (PRELIMINARY ESTIMATE)
A SUMMARY OF THE COSTS:
TOTAL COST OF IMPROVEMENTS IN PLAN (p.12) ($1,000,896)
TOTAL COST - 22 FIELD ATHLETIC COMPLEX (827,269)
SIGNALIZTION COST - 3rd AVE.E/U.S. Hwy. 93 (100,000)
TOTAL PROJECT COST ($1,928,165)
Contingency - 10.00% ($192,817)
TOTAL ($2,120,982)
2. HOW DOES THE CITY FUND THE ($2,120,982) COST OF THE PROJECT?
Because the project will take at least 36 months to implement, the City will have to
borrow money, issue warrants, or secure other short term financing. Thus, it must
consider a reasonable debt coverage ratio to be included in a financing assumption.
A coverage ratio of: 25% is considered reasonable, thus, up to ($2,651,227)
may be required to assure adequate funding available for the project even before the
Airport Layout Plan is complete ---possibly triggering additional FAA requirements.
Page 1
KCA/A - PLAN 25-Mar-96
3. SOURCE OF FUNDS
A. YEAR 1 - CREDITS SURPLUS LAND SALE (p.31)
PARCEL # AREA/ACRE SF $/SF SALE PRICE
PARCEL 12 17.028 741,740 $1.70 1,260,957
PARCEL 11 4.1 178,596 $4.20 750,103
0
TOTAL LAND SALE PROCEEDS $2,011,061
B. TAX INCREMENT (EXAMPLE)
NOTE:
Assuming PARCEL 11 is sold this year, it may be possible for the full value of its
private redevelopment to be assessed on the tax roles by January 1, 1998.
Portions of PARCEL 12 will be reflected in 1998 and full value by 1 /1 /1999.
Because of the timing uncertainty and other issues, the following does not
attempt to forecast when the actual Tax Increment would be available for
segregation by the City.
Parcel 11 could accomodate a grocery store, motel, restaurant, or any combination o
uses. Minimally, the City could attract a use similar in value to Tidyman's, valued at
$4,174,823 Total Fair Market Value. A Motel/Restaurant would be worth more.
MARKET VALUE x 0.0386 = TAXABLE VALUE x .498078 = TAX INCREMENT
IMPROVEMENT REAL PERSONAL TOTAL
GROCERY
2,244,000
1,930,823
$4,174,823
TAXABLE X 0.0386
86,618
74,530
$161,148
MILL LEVY 0.498078
43,143
37,122
`' '`'''.`.h„>:,..yv:�•w.,.�
Parcel 12 could accomodate at least $6,000,000 of additional private
redevelopment with a potential tax increment yield of:
RETAIL/MOTEL 4,000,000 2,000,000 $6,000,000
TAXABLE X 0.0386 154,400 77,200 $231,600
MILL LEVY 0.498078 76,903 38,45211 0-1
CONCLUSION: IT IS REASONABLE TO ASSUME THAT OVER THE NEXT FEW
YEARS THE CITY COULD ENCOURAGE THE PRIVATE REDEVELOPMENT OF LAN
GENERATING IN ANNUAL TAX INCREMENT AVAILABLE TO REPAY
MONEY BORROWED TO FINANCE THE PROJECT.
Page 2
KCA/A - PLAN 25-Mar-96
4. SUMMARY:
TOTAL PLAN/PROJECT COST OF IMPLEMENTATION
TOTAL AVAILABLE FROM SALE OF SURPLUS LAND
INTEREST ON MONEY BORROWED FOR 2 YEARS 5.50%
GAP - BORROWED FUNDS REQUIRED (Includes Funded Reserve)
ANNUAL TAX INCREMENT AVAILABLE 1998 AND BEYOND $195,619
TAX INCREMENT SEGREGATED FOR FOUR YEARS OR UNTIL DEBT PAID
(1998 - 2002)
PROJECT FUND BALANCE 2002
($2,651,227)
$2,011,061
($70,400)
($710,566)
$782,477
The information presented above is for discussion purposes only to illustrate how the financing plan
presented in the KALSIPELL CITY AIRPORT/ATHLETIC COMPLEX REDEVELOPMENT PLAN
ANALYSIS will provide the money required to implement the plan. Between now and the required
Public Hearing, City Council recommendations may be incorporated into the Plan, the Airport Layou
Plan will be completed and private redeveloper interest can be confirmed. Also, negotiations with
State Lands (DNRC) will result in more accurate relocation cost estimates.
Page 3
Kalispell City Airport/Athletic Complex
Redevelopment Plan Summary
Project Area:
• The Project area is bounded generally by Twelfth Street West to the north, U.S.
Hwy 93 and Third Ave East to the east, Cemetery Road to the south, and
Ashley Creek to the west. For purposes of this Redevelopment Plan, City
owned land lying adjacent to U.S. Hwy 93 and occupied by the Haven Ballfields
and Lion's Park is considered to be a part of the Airport property.
• The Project includes 13 publicly owned parcels for a total of 152.828 acres.
• The Project includes 44 privately owned parcels for a total of 165.4 acres.
Neighborhood Goals:
• To minimize hazards to navigation
• To develop the airport in accordance with an airport layout plan
• To increase development opportunities on nearby properties
• To promote compatible land uses in and around the airport
• To establish funding mechanisms for airport operations
• To establish a priority schedule for plan implementation
Summary of the Costs of the Redevelopment Project:
TOTAL COST OF IMPROVEMENTS IDENTIFIED IN PLAN $1,000,896.00
• Extend runway to the south to obtain length of
4,700 feet, maintaining a 60' width; Extend single
taxiway to parallel extended runway; Increase taxiway
width to a minimum of 24 feet; Increase load bearing
capacity of runway. Land acquisition, excavation
and pavement. $ 530,396.00
• Remove objects within Runway Protection Zone (RPZ)
and purchase private property located within RPZ.
Acquire two private properties $ 180,000.00
Remove objects within RPZ $ 15,000.00
• Strobe the KGEZ radio towers $ 3,400.00
• Install PAP[ navigation system; Install new
runway and taxiway lighting system; Install
perimeter fence. $ 271,200.00
TOTAL COST FOR 22 FIELD COMPLEX $ 827,269.00
(See page 20 of the Plan. This figure does not include land
costs but it is assumedthat a minimum of 120 acres is needed
and may be leased from the State instead of purchased.)
SIGNALIZATION COST (Third Ave East & U.S. Hwy 93S) $100,000.00
TOTAL PROJECT COST $1,928,165.00
Contingency - 10% 192,816.50
TOTAL COST $2,120,981.50
Financing Alternatives: (See attached sheet)
Definition of Blighted Area: (Part 42, Sec. 7-15-4206, MCA)
"Blighted Area" shall mean an area which is conducive to ill health, transmission of
disease, infant mortality, juvenile delinquency, and crime; substantially impairs or
arrests the sound growth of the city or its environs; retards the provision of housing
accommodations; or constitutes an economic or social liability and/or is detrimental
or constitutes a menace to the public health, safety, welfare, and morals in its
present condition and use, by reason of:
(a) the substantial physical dilapidation; deterioration; defective construction,
material, and arrangement; and/or age obsolescence of buildings or improvements,
whether residential or nonresidential;
(c) inappropriate or mixed uses of land or buildings;
(e) defective or inadequate street layout;
(f) faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
(h) unsanitary or unsafe conditions;
(i) deterioration of site;
(j) diversity of ownership;
(m) improper subdivision or obsolete platting;
(n) the existence of conditions which endanger life or property by fire or other
causes; or
(o) any combination of such factors.
Council Actions Required to Implement Plan:
• Adoption of Resolution of Intention to Adopt the Kalispell City Airport/
Athletic Complex Redevelopment Plan (Urban Renewal Plan)
• Legal Notifications
• Public Hearings
• Master Plan Amendments
• Adoption of Urban Renewal Plan
• Create Airport Authority
2