2008/04/28 Airport Land Purchases•
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Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406) 758-7000 Fax - (406)
758-7758
REPORT TO: Mayor and City Council
FRONT: Fred Leistiko, Airport Manager
Jaynes H. Patrick, City Manager
SUBJECT: Airport Land Purchases
Meeting Date: April 28, 2008
Background: As Council is aware, the City continues to progress in the development of a plan to
relocate the KGFZ towers. Currently, potential land use acquisitions needed for the airport
expansion is being presented to the City. Staff will take the opportunity to discuss with Council
several of the potential locations and funding.
Additionally, Staff has discussed the potential purchase of the Fire Place Store on Hwy 93 South.
This purchase would provide access to the old City Landfill and could potentially be an access to
a terminal building for the airport.
We also have an opportunity to purchase land north of S&S Campers. The property fronts
Highway 93 S but extends on top of the bluff back to the airport and is required under the current
EIA for the airport expansion.
Mr. Talmage, owner of Diamond Air, has also asked if the City would purchase his property
currently next to the airport.
We continue to encourage dialog with several other property owners with property required for
the airport expansion. There may soon be some opportunities to at least secure options for their
property.
The major question is how to pay for these purchases or options until we can be reimbursed by
the FAA. Each requires that the property be annexed and added to the Airport TIF by modifying
the boundaries. There may be good reason to further include commercial properties along HWY
93 South north of four corners. This would assist property owners improve their properties
and/or be a catalyst for redevelopment along our major entrance into the City.
There are several funding possibilities:
❑ Reimburse or loan the airport land purchase fund from. Airport TIF dollars.
❑ Bond for these purchases knowing the FAA will reimburse the City.
• Leverage our dollars by extending payment through the use of a note or mortgage.
❑ Take an option when possible, for as long as possible.
The FAA has two requests for grant funds currently waiting for action once the towers are
mitigated. The City has non entitlement funds ready to be distributed once the towers are
mitigated. Our focus remains on developing a plan to mitigate the towers without affecting
KCEZ operations.
Respectfully submitted,
Fred Leistiko, Airpo Manager James H. Patrick, City Manager