Resolution 5166 - Equity Supply Development Agreement Satisfaction - West Coast Hospitality GroupRESOLUTION NO, 5166
A RESOLUTION TO DETERMINE THAT THE OBLIGATIONS OF WEST COAST
HOSPITALITY GROUP, SUCCESSORS IN INTEREST TO BARBIERI INVESTMENT
COMPANY, INC. AND THE KALISPELL CENTER LIMITED PARTNERSHIP UNDER.
THE TERMS OF ITS DEVELOPMENT AGREEMENT WITH THE CITY OF
KALISPELL DATED THE 21ST DAY OF JULY, 1997 HAVE BEEN FULFILLED.
WHEREAS, on the 21 st day of July, 1997, the City of Kalispell entered into a development
agreement with Equity Supply Company [Equity], .Barbieri Investment Company,
Inc. [Barbieri] and Kalispell Center Limited Partnership [Kalispell Center Mall
for the redevelopment of blighted property owned by Equity adjacent to and north
of the Kalispell Center Mall property, owned by Barbieri and Kalispell Center
Mall and for the development of improvements to that property; and
WHEREAS, as an integral term of the development agreement and for the purpose set forth
above and to thereby increase the tax base for that property, the City of Kalispell
loaned $890,000 to Barbieri and Kalispell Center Mall, said obligation to be
satisfied upon repayment of the loan according to the terms of the note or upon
the tax assessed value of the total property increasing by the sum of $6,600,000,
the assessment deemed necessary to generate the tax revenue equivalent to the
outstanding principal of the note; and
WHEREAS, subsequent to execution of the development agreement and unanticipated by the
parties to the contract, the State of Montana altered its method of property
valuations resulting in an overall decrease in Kalispell Center Mall property
assessed value by $1,200,000 between the years of 1996 and 2005. However,
over the same period of time the tax revenues from the overall property have
increased from the annual bill of $353,296 paid in 1996 to $467,993 paid in 2005;
and
WHEREAS, West Coast Hospitality Group, successors in interest to Barbieri and Kalispell
Center Mall are current in payments on the note, and pursuant to the agreement,
the blight on the Equity property has been abated; and
WHEREAS, West Coast Hospitality Group also recently invested $6,116,981 in improvements
to the Red Lion Hotel, an additional $644,600 on other site improvements, and
$1,100,000 in the Heritage Bank Project, all located upon the Kalispell Center
Mall property. It is anticipated that this investment in the site will increase the
annual tax revenues an additional $113,000; and
WHEREAS, West Coast Hospitality Group has further offered to gift the Equity property for
development of a performing arts center as further anchor to the Kalispell
downtown core; and
WHEREAS, West Coast Hospitality Group has met the intent of the agreement by making the
required payments on the note, abating the specific blight identified on the Equity
property, investing capital in the redevelopment of the downtown Kalispell core,
and increasing the tax revenues to the local governments to meet or exceed the
remaining principal of the outstanding note.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALIS P E LL AS FOLLOWS
SECTION I. The City Council hereby finds that based upon the evidence set forth in
the recitals above it concludes that West Coast Hospitality Group has met
the terms of the development agreement dated July 21, 1997 and has
particularly met the investment requirements of the agreement to increase
tax revenues to the local government bodies so as to offset the principal
balance of the outstanding loan amount owed to the City of Kalispell and
the note is therefore determined to be fully paid.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR. OF
THE CITY OF KALISPELL, THIS 4TH DAY OF DECEMBER, 2006.
f
Pamela B. Kenned
Mayor
ATTEST:
Theresa White
City Clerk