City Council Agenda

CITY COUNCIL MEETING AGENDA March 1, 2021, at 7:00 p.m. This meeting will occur with Council and staff present in Council Chambers with social distancing in place, as well as via video conferencing. The public can participate via videoconferencing. Register to join the video conference at:. https://us02web.zoom.us/webinar/register/WN_KOQXz-heTq6uK9v9Y31XTQ. Public comment can be also be provided via email to publiccomment@kalispell.com. A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. AGENDA APPROVAL E. CONSENT AGENDA All items listed on the consent agenda will be accepted by one motion. If a council member desires to discuss an item separately, the item can be removed from the consent agenda by motion. 1. Council Minutes – February 16, 2021 2. Award Bid for 2021 Milling and Paving Award a bid for the 2021 milling and paving contract to LHC, Inc. 3. Award Bid for 2021 Asphalt Materials Award bid for the 2021 asphalt materials contract to LHC, Inc. 4. Ordinance 1855 – Second Reading – Parkline Trail Park Designation This ordinance would designate the Parkline Trail as a park and establish appropriate rules and regulations. F. COMMITTEE REPORTS G. PUBLIC COMMENT Persons wishing to address the council are asked to provide public comment via email to publiccomment@kalispell.com or verbally during the video conference. Register at: Page 1 of 3  Kalispell City Council Agenda, March 1, 2021 https://us02web.zoom.us/webinar/register/WN_KOQXz-heTq6uK9v9Y31XTQ. Please provide your name and address for the record. H. REPORTS, RECOMMENDATIONS, AND SUBSEQUENT COUNCIL ACTION Persons wishing to address the council on individual agenda items are asked to provide public comment via email to publiccomment@kalispell.com or verbally during the online meeting. Please provide your name and address for the record. 1. Resolution 6015 - Rockwood Ranch Preliminary Plat Extension This resolution considers extending the preliminary plat for Rockwood Ranch at W. Spring Creek Road and Three Mile Drive for an additional two years. 2. Consideration of Offer to Purchase Old School Station Lot 9 This item considers an offer from Mark and Janie Cantrell to purchase Old School Station Lot 9. 3. Consideration of Offer(s) to Purchase Old School Station 3A This item considers offers from Matterhorn Capital, Clifton Jones, and School District Five for Old Station Lot 3A. I. CITY MANAGER, COUNCIL, AND MAYOR REPORTS (No Action) J. ADJOURNMENT UPCOMING SCHEDULE / FOR YOUR INFORMATION Next Work Session – March 8, 2021, at 7:00 p.m. – Council Chambers Next Regular Meeting – March 15, 2021, at 7:00 p.m. – Council Chambers Watch City Council sessions live on Charter Cable Channel 190 or online at the Meetings on Demand tab at www.kalispell.com. Page 2 of 3 Kalispell City Council Agenda, March 1, 2021 ADMINISTRATIVE CODE Adopted July 1, 1991 Section 2-20 Manner of Addressing Council a. Each person not a Council member shall address the Council, at the time designated in the agenda or as directed by the Council, by stepping to the podium or microphone, giving that person's name and address in an audible tone of voice for the record, and unless further time is granted by the Council, shall limit the address to the Council to three minutes. b. All remarks shall be addressed to the Council as a body and not to any member of the Council or Staff. c. No person, other than the Council and the person having the floor, shall be permitted to enter into any discussion either directly or through a member of the Council, without the permission of the Presiding Officer. d. No question shall be asked of individuals except through the Presiding Officer. PRINCIPLES FOR CIVIL DIALOGUE Adopted by Resolution 5180 on February 5, 2007 ◼ We provide a safe environment where individual perspectives are respected, heard, and acknowledged. ◼ We are responsible for respectful and courteous dialogue and participation. ◼ We respect diverse opinions as a means to find solutions based on common ground. ◼ We encourage and value broad community participation. ◼ We encourage creative approaches to engage in public participation. ◼ We value informed decision-making and take personal responsibility to educate and be educated. ◼ We believe that respectful public dialogue fosters healthy community relationships, understanding, and problem solving. ◼ We acknowledge, consider and respect the natural tensions created by collaboration, change, and transition. ◼ We follow the rules & guidelines established for each meeting. Page 3 of 3  CITY COUNCIL DRAFT MEETING MINUTES TUESDAY, February 16, 2021, at 7:00 p.m. This meeting occurred via video conferencing. Providing public comment was available via email to publiccomment@kalispell.com or verbally during the video conference at: https://us02web.zoom.us/webinar/register/WN_GQV3WJKoQlyXNsnxlM94FA. Video of this meeting linked to time-stamped minutes can be found at: https://www.kalispell.com/480/Meeting-Videos. A. CALL TO ORDER Mayor Johnson called the meeting to order at 7 p.m. B. ROLL CALL Mayor - Mark Johnson: Present in Council Chambers Council Member - Kari Gabriel: Present via video conferencing Council Member - Sandy Carlson: Present via video conferencing Council Member - Sam Nunnally: Present via video conferencing Council Member - Chad Graham: Present via video conferencing Council Member - Kyle Waterman: Present via video conferencing Council Member - Ryan Hunter: Present via video conferencing Council Member - Tim Kluesner: Present via video conferencing Council Member - Sid Daoud: Present via video conferencing Staff present in the City Hall Council Chambers included City Manager Doug Russell, City Attorney Charles Harball, City Clerk Aimee Brunckhorst, Development Services Director Jarod Nygren, Senior Planner P.J. Sorensen, Public Works Director Susie Turner, and Parks and Recreation Director Chad Fincher. C. PLEDGE OF ALLEGIANCE D. AGENDA APPROVAL Motion and Vote to approve the agenda as submitted. Council Member - Sam Nunnally: Motion Council Member - Kyle Waterman: 2nd Mayor - Mark Johnson: Approve Council Member - Kari Gabriel: Approve Council Member - Sandy Carlson: Approve Council Member - Sam Nunnally: Approve Page 1 of 6  Kalispell City Council Minutes, February 16, 2021 Council Member - Chad Graham: Approve Council Member - Kyle Waterman: Approve Council Member - Ryan Hunter: Approve Council Member - Tim Kluesner: Approve Council Member - Sid Daoud: Approve The motion passed unanimously on voice vote. E. CONSENT AGENDA All items listed on the consent agenda will be accepted by one motion. If a council member desires to discuss an item separately, the item can be removed from the consent agenda by motion. 1. Council Minutes – February 1, 2021 2. Award Bid for Street Department Dump Truck Cab and Chassis Award a bid from Istate Truck Center in the amount of $104,978 for a new dump truck cab and chassis for the Street Division. 3. Reject Bid for a Wastewater Treatment Plant Sludge Truck Chassis Reject a bid received from Montana Peterbilt for a sludge truck cab and chassis. 4. Sprint Spectrum LP Lease Renewal Agreement to utilize the Buffalo Hill Water Tower Consider renewing a lease agreement with Sprint Spectrum LP. 5. Ordinance 1854 – Second Reading - Edge Zoning This ordinance would zone property located at 2015 and 2105 Third Avenue East B-2 (General Business). Public Comment Mayor Johnson opened public comment on the consent agenda. Seeing none, he closed public comment. 00:02:42 Motion and Vote to approve the consent agenda as submitted. Council Member - Kari Gabriel: Motion Council Member - Kyle Waterman: 2nd Mayor - Mark Johnson: Approve Council Member - Kari Gabriel: Approve Council Member - Sandy Carlson: Approve Council Member - Sam Nunnally: Approve Council Member - Chad Graham: Approve Council Member - Kyle Waterman: Approve Council Member - Ryan Hunter: Approve Council Member - Tim Kluesner: Approve Council Member - Sid Daoud: Approve The motion passed unanimously on roll call vote. Page 2 of 6  Kalispell City Council Minutes, February 16, 2021 F. COMMITTEE REPORTS – None. G. PUBLIC COMMENT Mayor Johnson opened general public comment. Seeing none he closed public comment. Public comment received for this meeting recently to publiccomment@kalispell.com can be found at: https://time.ci.kalispell.mt.us/WebLink/Browse.aspx?id=140144&dbid=0&repo=Kalispell. H. REPORTS, RECOMMENDATIONS, AND SUBSEQUENT COUNCIL ACTION Persons wishing to address the council on individual agenda items are asked to provide public comment via email to publiccomment@kalispell.com or verbally during the online meeting. Please provide your name and address for the record. 1. Ordinance 1853 – Second Reading – Accessory Dwelling Units Continued This item considers amending and adding a new section to the Kalispell Zoning Ordinance to add provisions for accessory dwelling units within certain zones. 09:04:29 AM (00:04:37) Motion and Vote to remove Ordinance 1853 from the table. Council Member – Sid Daoud: Motion Council Member – Ryan Hunter: 2nd Council Member - Sid Daoud: Motion Council Member - Ryan Hunter: 2nd Mayor - Mark Johnson: Disapprove Council Member - Kari Gabriel: Approve Council Member - Sandy Carlson: Disapprove Council Member - Sam Nunnally: Disapprove Council Member - Chad Graham: Disapprove Council Member - Kyle Waterman: Approve Council Member - Ryan Hunter: Approve Council Member - Tim Kluesner: Disapprove Council Member - Sid Daoud: Approve The motion failed 4-5 with Councilors Gabriel, Waterman, Hunter, and Daoud in favor and Councilors Carlson, Nunnally, Graham, Kluesner and Mayor Johnson opposed. 2. Ordinance 1855 – First Reading – Kalispell Parkline Trail Designation as a Park This ordinance would designate the Parkline Trail as a park and establish appropriate rules and regulations. City Manager Russell provided an overview on this item. Public Comment Mayor Johnson opened public comment. Seeing none, he closed public comment. 00:07:42 Page 3 of 6  Kalispell City Council Minutes, February 16, 2021 Motion to approve Ordinance 1855, an ordinance establishing a city park named “Kalispell Parkline” within those boundaries of the property acquired from the Burlington Northern Santa Fe Railway in 2020, establishing the rules and regulations of the park, amending the use of alcohol in all city parks, declaring an effective date and authorizing the City Attorney to codify the same. Council Member – Kyle Waterman: Motion Council Member - Sam Nunnally: 2nd 00:08:13 Councilor Waterman provided discussion on the motion. 00:08:53 Councilor Graham provided discussion on the motion. 00:10:01 Councilor Kluesner provided discussion on the motion. 00:10:56 City Manager Russell spoke to the years that have been spent making this project a reality. 00:11:39 Mayor Johnson provided discussion on the motion. 00:13:03 Vote on the motion. Council Member - Kyle Waterman: Motion Council Member - Sam Nunnally: 2nd Mayor - Mark Johnson: Approve Council Member - Kari Gabriel: Approve Council Member - Sandy Carlson: Approve Council Member - Sam Nunnally: Approve Council Member - Chad Graham: Approve Council Member - Kyle Waterman: Approve Council Member - Ryan Hunter: Approve Council Member - Tim Kluesner: Approve Council Member - Sid Daoud: Approve The motion passed unanimously on roll call vote. I. CITY MANAGER, COUNCIL, AND MAYOR REPORTS (No Action) City Manager Doug Russell provided the following report: • Mr. Russell reported back to Councilor Graham that the webpage has been updated to provide additional clarity regarding where the public can access live meeting videos. • A vote on the updated fire code is coming before council at the next regular meeting. This item was discussed at a work session over a year ago, but staff was waiting for the state to adopt those fire codes first. The state still has not, but the city does not wish to wait any longer to move forward with adoption. • Council communication policies will be under discussion during the February 22, 2021 work session. Page 4 of 6  Kalispell City Council Minutes, February 16, 2021 00:14:49 Councilor Hunter requested that Council Members that had voted in favor of Ordinance 1853 at first reading explain why they voted against removing the item from the table tonight. Councilor Hunter stated he felt it was premature for the Governor to remove the mask mandate explaining why he feels that way. He requested a work session on a city-wide mask mandate and explained why. 00:18:40 Mayor Johnson asked Council Members for their desire for a work session on a city- wide mask mandate. Council members Gabriel, Carlson, and Waterman were also in favor of a work session. City Manager Russell suggested that the Council wait to see the outcome of the meeting of the Flathead City-County Board of Health during their meeting on February 18, 2021, and then discuss at the February 22, 2021 work session whether they want to add this item as an agenda item for discussion on another upcoming work session. 00:21:10 Mayor Johnson said he would like to hear from the Health Board on this before the Council discusses. He then spoke regarding the Governor’s recommendations to take individual responsibility for their health and wear masks as they see fit. 00:21:56 Councilor Daoud asked a point of inquiry about the tabled item (Ordinance 1853), asking where the motion is and what the options are moving forward. 00:22:28 Mayor Johnson spoke to the practices of the past related to tabled motions and maintaining consistency with past council practices. Mayor Johnson explained that since the item did not come off the table, the Ordinance is dead and would need to be picked up as a new issue going forward. 00:24:30 City Attorney Harball explained that this item could come back up as a new Ordinance if Council so directed staff to bring it forward again. 00:25:03 Councilor Daoud asked that the accessory dwelling unit item be brought back up again at the next convenient work session. 00:25:25 Mayor Johnson asked Council for their views on another work session for this item. Councilor Waterman, Daoud, Hunter and Gabriel were in favor of another work session. 00:25:43 Councilor Kluesner asked that this item not be brought forward again until the Council was in council chambers in person. Councilor Carlson and Councilor Graham would also like this brought forward if in person. 00:26:40 Mayor Johnson spoke to the need for another work session to discuss the numerous amendments that had been brought forth previously. 00:28:34 Councilor Waterman spoke regarding the details and clarifications within the Governor’s rescinding of the mask mandate including encouragement of wearing masks and Page 5 of 6  Kalispell City Council Minutes, February 16, 2021 taking responsibility. The details also included the ability of jurisdictions and businesses to require masks. 00:30:31 Mayor Johnson spoke further regarding the Governor’s orders and the Center for Disease Control’s recommendations. He urged everyone to stay home when feeling ill and get tested for COVID. 00:32:44 Councilor Carlson asked about in person meetings. 00:32:55 City Manager Russell spoke to the challenges of in person meetings and the quarantine process that is still in place. Mayor Johnson spoke regarding his recent experiences with quarantining. He provided discussion regarding how council meetings could take place with Council Members in person. 00:35:29 Mr. Russell stated that if Council would like to move forward with in person meetings, Mr. Russell would recommend social distancing council along the length of the dais with staff socially distanced at tables in the middle of the room. The public could then still participate online. Staff will coordinate and determine if a solution can be found to make that work for the next meeting. J. ADJOURNMENT Mayor Johnson adjourned the meeting at 7:37 p.m. ________________________________________ Aimee Brunckhorst, CMC City Clerk Minutes approved on, 2021 UPCOMING SCHEDULE / FOR YOUR INFORMATION City Offices Closed – February 15, 2021 – Presidents’ Day Next Work Session – February 22, 2021, at 7:00 p.m. – Council Chambers Next Regular Meeting – March 1, 2021, at 7:00 p.m. – Council Chambers Watch City Council sessions live on Charter Cable Channel 190 or online at the Meetings on Demand tab at www.kalispell.com. Page 6 of 6  MEMORANDUM To: Doug Russell, City Manager Cc: Susie Turner, PE – Public Works Director From: Patrick Jentz, PE Engineer 2 Re: 2021 Milling and Paving Meeting Date: March 1, 2021 BACKGROUND: The project primarily consists of furnishing materials, labor, and equipment required to mill city streets, taper mill city streets, reconstruct city streets, or mill and overlay city streets. Projects are located throughout the incorporated limits of the City of Kalispell and work is completed on an as needed basis with the issuance of work orders. BIDDING RESULTS: Bids were received and opened on February 17, 2021 at 1:15 pm. Two responsive bids were received and are summarized below. Bid LHC, Inc Knife River Item Description Unit Item Unit Price Unit Price 1 Mobilization/Demobilize LS $3,500.00 $8,700.00 2 Construction Traffic Control Blk $500 $1,500 3 Milling (With City Haul) Per 1” SY $0.80 $3.00 4 Milling (Without City Haul per 1”) SY $1.60 $3.80 5 Tapered Milling (With City Haul) SY $0.80 $3.60 6 Tapered Milling (without City Haul) per 1” depth SY $1.60 $4.60 7 Pre-level Paving Ton $78.00 $145.00 8 Asphalt Concrete Pavement per 1” depth SY $4.30 $8.00 9 Utility Adjustment EA $50.00 $790.00 10 Roadway Removal and Reconstruction SY $60.00 $120.00 11 Plunge Cut (With City Haul) LF $26.00 $40.00 12 Plunge Cut (Without City Haul) LF $28.00 $50.00 ACTION REQUESTED: Motion to award the 2021 Milling and Paving contract to LHC, Inc. FISCAL EFFECTS: Material orders for this contract are budgeted and will be funded through the following sources: 1. Special Street Maintenance Fund: “Pavement Repairs – Pavement Maintenance” line item # 2500-421-430244-354. 2. Gas Tax Fund: “Overlay and Chip Seals” line item #2420-421-430240-368 ALTERNATIVES: As suggested and approved by the City Council ATTACHMENTS: 2021 Milling and Paving Bid Tabulations 201 1st Avenue E Phone (406)758-7720 PO BOX 1997 Public Works Department Fax (406)758-7831 Kalispell, MT 59903 www.kalispell.com  MEMORANDUM To: Doug Russell, City Manager Cc: Susie Turner, PE – Public Works Director From: Patrick Jentz, PE –Engineer 2 Re: 2021 Asphalt Material Meeting Date: March 1, 2021 BACKGROUND: This bid includes furnishing plant mix asphalt materials to supply the City of Kalispell for scheduled street maintenance and improvement projects. Projects can range from small utility patches requiring less than two tons of asphalt to mill and overlay projects requiring several hundred tons. BIDING RESULTS: Bids were received and opened on February 18, 2021 at 1:15 pm. Two responsive bids were received and are summarized below. Bid Unit Price Item Description Unit LHC Inc. Knife River 1 Asphalt Hot Mix (2 to 5 tons) Ton $61.00 $100.00 2 Asphalt Hot Mix (more than 2 tons) Ton $53.00 $86.00 3 Asphalt Disposal Ton $0.00 $.01 REQUESTED ACTION: Motion to award the 2021 Asphalt Materials Contract to LHC, Inc. FISCAL EFFECTS: Material orders for this contract are budgeted and will be funded through the following sources: 1. Special Street Maintenance Fund: “Pavement Repairs – Pavement Maintenance” line item #2500-421-430244-354 2. Gas Tax Fund: “Asphalt” line item #2420-421-430240-472 ALTERNATIVES: As suggested and approved by the City Council. ATTACHMENTS: 2021 Asphalt Material Bid Tabulations 201 1st Avenue E Phone (406)758-7720 PO BOX 1997 Public Works Department Fax (406)758-7831 Kalispell, MT 59903 www.kalispell.com  Development Services 201 1st Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/planning REPORT TO: Doug Russell, City Manager FROM: Jarod Nygren, Development Services Director SUBJECT: Ordinance 1855 – Second Reading of Kalispell Parkline Designation as a Park and Establishing Rules and Regulations MEETING DATE: March 1, 2021 BACKGROUND: As part of the Core Area redevelopment the City has acquired the rail right-of- way through town to be developed as a linear park (Kalispell Parkline). The Kalispell Parkline project will be going out to bid this winter with construction starting later this spring/summer 2021. Accordingly, as the land is going to be used as a City park and will be maintained and operated by the City under the Parks and Recreation Department, rules and regulations need to be amended. Staff has drafted an ordinance that would establish the rules and regulations of the Kalispell Parkline with the intended use in mind. The ordinance includes language that would officially designate the corridor a City park with general language similar to other City park regulations. Unlike other parks it would be open 24-hours for the traveling public on the improved trail. The Kalispell City Council, at their meeting on February 16, 2021, approved the first reading of Ordinance 1855 unanimously. Recommendation: It is recommended that the Kalispell City Council approve the second reading of Ordinance 1855, an ordinance establishing a City park named the Kalispell Parkline within those boundaries of the property acquired from the Burlington Northern Santa Fe Railway in 2020, establishing and establishing rules and regulations of the park, amending the use of alcohol in all city parks, declaring an effective date and authorizing the City Attorney to codify the same. Attachment: Ordinance 1855  ORDINANCE NO. 1855 AN ORDINANCE ESTABLISHING A CITY PARK NAMED “KALISPELL PARKLINE” WITHIN THOSE BOUNDARIES OF THE PROPERTY ACQUIRED FROM THE BURLINGTON NORTHERN SANTA FE RAILWAY IN 2020, ESTABLISHING THE RULES AND REGULATIONS OF THE PARK, AMENDING THE USE OF ALCOHOL IN ALL CITY PARKS, DECLARING AN EFFECTIVE DATE AND AUTHORIZING THE CITY ATTORNEY TO CODIFY THE SAME. WHEREAS, on September 30, 2020, the City entered into a railbanking agreement with Burlington Northern Santa Fe Railway [BNSF] in which the City acquired a corridor of real property on November 5, 2020, described fully in Exhibit “A”, attached hereto and fully incorporated herein, previously used by BNSF for its rail line, for the new purposes of developing and utilizing a linear park for recreation and trail use for non-motorized passage; and WHEREAS, the City Council finds that it is fitting to recognize and remember the significant historic influences of the rail use in this corridor that bisects the City and therefore determines that the park should be named the “Kalispell Parkline”; and WHEREAS, the City Council finds that the purposes of the Kalispell Parkline are unique from the other Kalispell city parks primarily because of the transportation aspect through various mixed land uses of the city such that the rules and regulations of the Kalispell Parkline should vary in some respects from those applied to the other parks; and WHEREAS, the City Council finds that in order to encourage a vibrant use of the trail within the park, the hours of permissible use should be extended so that residences, food and beverage services and such other commercial uses serving residents and guests situated along the trail may be best utilized and enjoyed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The real property legally described in Exhibit “A”, attached hereto, shall be known, and designated with the name, “Kalispell Parkline”, to be maintained and operated by the City under the Department of Parks and Recreation. SECTION 2. KMC 19-20 entitled Parks; Indecent Conduct; Drinking, shall be amended as set forth in Exhibit “B”. SECTION 3. The City Attorney is hereby authorized and directed to codify this Ordinance. SECTION 4. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 1ST DAY OF MARCH, 2021. ____________________________________ Mark Johnson Mayor ATTEST: _______________________________ Aimee Brunckhorst, CMC City Clerk  Exhibit “A” Property LAND IN SECTIONS 7, 8, AND 18 OF TOWNSHIP 28 NORTH, RANGE 21 WEST, AND SECTION 13 OF TOWNSHIP 28 NORTH, RANGE 22 WEST, P.M. MONTANA, CITY OF KALISPELL, FLATHEAD COUNTY, MONTANA, MORE PARTICULARLY DESCRIBED AS: PARCELS A, B, C, D, E, F, G, H, I, J, AND K, ACCORDING TO CERTIFICATE OF SURVEY #21492, FILED JULY 10, 2020 AS DOCUMENT #202000019163, RECORDS OF FLATHEAD COUNTY, MONTANA.  Exhibit “B” 19-20 Parks; Prohibited Conduct, Alcoholic Beverages. A. Prohibited Conduct: No threatening, abusive, or disorderly conduct or behavior or breach of the public peace that is defined as a criminal offense pursuant to MCA Title 45 shall be allowed in or upon any park or public grounds. B. Alcohol Use: Except under the auspices of a special public event permit, no person shall take into or upon any park, nor into or upon any public grounds, any alcoholic beverages, either for consumption, or for sale to others in such park or public grounds, nor shall any person give away or in any way dispose of any alcoholic beverages in or upon any park or public grounds. C. Removal of Person: Any intoxicated or disorderly person or any person doing an act injurious to the park or public place in which he or she then is or who is in the act of violating any rules or regulations of the City, may be removed from such park or public place by any police officer of the City. D. Hours: All City parks, except the Kalispell Parkline, shall be posted as open at 6:00 a.m. every day and closed at 11:00 p.m. every day. The Kalispell Parkline Park shall be posted as open at 6:00 a.m. every day and closed at 2:00 a.m. every day, except for the purposes of travel upon the improved trail surface which shall remain open unless closed for maintenance or emergency purposes. Otherwise, it shall be unlawful for any person to remain in any City park during the time when it is closed. ....  Development Services Department 201 1st Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/planning REPORT TO: Doug Russell, City Manager FROM: PJ Sorensen, Senior Planner SUBJECT: Rockwood Ranch – Request for Preliminary Plat Extension MEETING DATE: March 1, 2020 BACKGROUND: This is a request by Ren Xinwu to extend the Major Preliminary Plat approval for Rockwood Ranch for two years. The preliminary plat for the subdivision was approved May 7, 2018, with Resolution 5870. Condition No. 4 of the preliminary plat states that “the preliminary plat shall be valid for a period of three years from the date of approval,” which is in accordance with Section 28.2.06(E)(7) of the Kalispell Subdivision Regulations. Accordingly, the expiration date for Rockwood Ranch is May 7, 2021. Rockwood Ranch is located at West Spring Creek Road and Three Mile Drive, more particularly described as Tract 1 of COS 20588 in the Northwest Quarter of Section 11, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The reason for the request is that the property is under contract and scheduled to close in April 2021, with the new owners planning to develop the property. The subdivision regulations provide for a two year extension under Section 28.2.07(D)(7), which allows for an owner to submit a request at least 30 days prior to the expiration date documenting the existence of an unusual hardship, which was shown as part of the request. RECOMMENDATION: It is recommended that the City Council approve Resolution 6015, a resolution approving a two-year extension to the preliminary plat of Rockwood Ranch, described as Tract 1 of COS 20588 in the northwest quarter of section 11, township 28 north, range 22 west, P.M.M., Flathead County, Montana. FISCAL EFFECTS: Positive impacts if approved. ALTERNATIVES: Deny the request. Report compiled: February 17, 2021 Attachments: Resolution 6015 Letter from Property owner (2/16/21) c: Aimee Brunckhorst, Kalispell City Clerk  RESOLUTION NO. 6015 A RESOLUTION APPROVING A TWO-YEAR EXTENSION TO THE PRELIMINARY PLAT OF ROCKWOOD RANCH, DESCRIBED AS TRACT 1 OF COS 20588 IN THE NORTHWEST QUARTER OF SECTION 11, TOWNSHIP 28 NORTH, RANGE 22 WEST, P.M.M., FLATHEAD COUNTY, MONTANA. WHEREAS, the City Council of the City of Kalispell granted preliminary plat approval for Rockwood Ranch on May 7, 2018; and WHEREAS, the owner, Ren Xinwu, has requested a two-year extension to the preliminary plat of Rockwood Ranch due to sale and closing of the property which is scheduled for April, 2021; and WHEREAS, good cause exists for the request for extension by Ren Xinwu and it is in the best interests of the city that the extension be given. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION 1. That the application of Ren Xinwu for a two-year extension of the preliminary plat of Rockwood Ranch, Kalispell, Flathead County, Montana is hereby approved. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 1ST DAY OF MARCH, 2021. _____________________________________ Mark Johnson Mayor ATTEST: ________________________ Aimee Brunckhorst, CMC City Clerk dotloop signature verification: dtlp.us/7I11-EJMt-YSwR P.J. Sorensen Senior Planner City of Kalispell 201 1st Ave East Kalispell MT 59901 Dear P.J. Kalispell City Council and Planning Board, My name is Ren Xinwu, I am the owner of the Rockwood Ranch at W Spring Creek Rd and Three Mile Drive, Kalispell MT. Legal Description: S11, T28 N, R22 W, ACRES 90.87, COS 20588-1, TR 4A IN NW4 This property is Preliminarily Approved by the City of Kalispell; Resolution #5869 and Resolution #5870 both approved May 7, 2018. Ordinance 1808 Passed and approved May 21, 2018. My request to the City of Kalispell is to be granted a 12 month Extension, to the existing Preliminary Plat approval for the Rockwood Ranch Subdivision. Currently I have this property under contract and scheduled to close on April 15, 2021. These buyers/developers will need time to get organized, prior to breaking ground, and they have requested we ask and receive this extension prior to closing on this contract. Previously I had this property sold and scheduled to close on February 5th 2021, to other investors, but due to personal reasons, and Covid restraints, one of their major investors for the project, chose not to continue. I believe the development of Rockwood Ranch will be a great benefit to the City of Kalispell for more housing and revenue, to the newer developments in the same vicinity, and it will give opportunity to a few more businesses here in Kalispell. I hope that you will strongly consider my request for an extension. I greatly appreciate your time! Sincerely, Xinwu Ren dotloop verified 02/16/21 4:07 PM MST SCJ9-9NNN-TAKS-TK9B Ren Xinwu 100 Deer Run Rd Kalispell Mt. 59901  Development Services 201 1st Avenue East- Kalispell, Montana 5991 Phone (406) 758-7940 Report To: Doug Russell, City Manager From: Jarod Nygren, Development Services Director Subject: Old School Station, Lot 9 Offer to Purchase Meeting Date: March 1, 2021 BACKGROUND: On April 5, 2015, by means of Resolution 5710, the City Council elected to take assignment from Flathead County of its tax lien on six parcels of Old School Station by paying the past due taxes and assessments. On April 20, 2015, City Council passed Resolution 5712 in which Council stated its intention to retain and sell the properties and to set the concluding date and time of the period of redemption for May 4, 2015, at 7 pm. By Resolution 5717 on May 4, 2015, Council determined to retain and sell all interests in the Old School Station lots under its ownership. The six properties were appraised by Clark Real Estate Appraisal in 2015 to establish listing prices for each lot. In April 2017, the City of Kalispell listed the properties for sale through Flathead Valley Brokers at the appraised values with the potential off-set of reduced Special Improvement District bond payments as calculated for each individual lot. On January 25, 2021, the City received a backup offer in first position for the purchase of Lot 9 as the lot was under a buy-sell at that time with Matterhorn Capital. On February 18, 2021, Matterhorn Capital terminated its buy-sell for Lot 9 making it possible to move the Cantrell offer into primary position. The buy-sell agreement is at full listing price with reductions predicated on a signed Developer’s Agreement wherein the buyer agrees to complete new construction on the site within 18 months of sale. The Developer’s Agreement will also include provisions to reimburse the purchaser for the payment of the specials which come due annually. The purchaser will only be eligible for reimbursement provided the use meets the terms and conditions of the applicable Tax Increment Finance District. RECOMMENDATION: Make a motion to proceed with the Cantrell offer to purchase Old School Station Lot 9 as presented. FISCAL EFFECTS: For Lot 9 the City will receive the purchase price of $228,420 with $5,000.00 in Earnest Money. Pursuant to the terms of a Developer’s Agreement, tax increment will be applied to reimbursement of SID payments if the purchaser completes planned capital improvements to the property within 18 months of closing. Additionally, the purchase price will be reduced by $32,435.64 to $195,984.36 if the purchaser completes planned capital improvements to the property within 18 months of closing. ALTERNATIVES: Decline offer and/or identify different terms for buy-sell agreement. ATTACHMENTS: Map of Old School Station Buy-Sell for Lot 9 at Old School Station SOLD  Development Services 201 1st Avenue East- Kalispell, Montana 5991 Phone (406) 758-7940 Report To: Doug Russell, City Manager From: Jarod Nygren, Development Services Director Subject: Old School Station, Lot 3A Offer(s) to Purchase Meeting Date: March 1, 2021 BACKGROUND: On April 5, 2015, by means of Resolution 5710, the City Council elected to take assignment from Flathead County of its tax lien on six parcels of Old School Station by paying the past due taxes and assessments. On April 20, 2015, City Council passed Resolution 5712 in which Council stated its intention to retain and sell the properties and to set the concluding date and time of the period of redemption for May 4, 2015, at 7 pm. By Resolution 5717 on May 4, 2015, Council determined to retain and sell all interests in the Old School Station lots under its ownership. The six properties were appraised by Clark Real Estate Appraisal in 2015 to establish listing prices for each lot. In April 2017, the City of Kalispell listed the properties for sale through Flathead Valley Brokers at the appraised values with the potential off-set of reduced Special Improvement District bond payments as calculated for each individual lot. Lot 3A is listed for $409,658.00. The City has received three buy-sell offers to purchase Lot 3A as follows: 1) On January 18, 2021, the City received a buy-sell from Matterhorn Capital. Matterhorn previously had a buy-sell on Lot 3A and Lots 8 and 9. Unfortunately, their plans did not come to fruition as quickly as they had hoped but have submitted another offer with similar terms as their previous offer. The buy-sell is a full price offer of $409,658.00 with $5,000.00 in earnest money and is contingent upon the contract award of a request for lease proposal. The buy-sell agreement includes reductions predicated on a signed Developer’s Agreement wherein the buyer agrees to complete new construction on the site within 18 months of sale. The Developer’s Agreement will also include provisions to reimburse the purchaser for the payment of the specials which come due annually. The purchaser will only be eligible for reimbursement provided the use meets the terms and conditions of the applicable Tax Increment Finance District. 2) On February 24, 2021, the City received a buy-sell from Clifton Jones. The buy sell is an above asking price offer at $420,000.00 with $10,000.00 in earnest money. The buy-sell agreement includes reductions predicated on a signed Developer’s Agreement wherein the buyer agrees to complete new construction on the site within 18 months of sale. The Developer’s Agreement will also include provisions to reimburse the purchaser for the payment of the specials which come due annually. The purchaser will only be eligible for reimbursement provided the use meets the terms and conditions of the applicable Tax Increment Finance District.  3) On February 24, 2021, the City received a buy-sell from School District 5. The buy-sell is above the asking price at $430,000.00 with $2,000.00 in earnest money. It should be noted that the School District can only pay appraised value of the property and the offer is contingent upon a new appraisal where the City would split the cost with the School District. The offer is also contingent upon voter and school board approval of the purchase of the property. If the School District were chosen there would not be any provisions for price reduction or payments of SID since the property would be tax-exempt. Although tax- exempt the Growth Policy has goals that would support this choice: Chapter 2 Growth Policy Administration – “Continue to find ways to share equipment and other resources to increase efficiency of local government operations.” The Council should be aware that the School District does have the ability under state statutes to exempt itself from City zoning codes. There should be a discussion whether a counteroffer should include provisions that the School District cannot exempt itself from City zoning codes in order to help maintain the integrity of the development. RECOMMENDATION: It is recommended that Council accept the buy/sell offers based on the highest purchase price and back up offers in descending value and authorize the City Manager to proceed with actions necessary to complete these agreements under the same development terms as done with previous agreements for lots sold by the City of Kalispell in the Old School Station development. FISCAL EFFECTS: For offer 1 the City would receive the purchase price of $409,658.00. Pursuant to the terms of a Developers Agreement, tax increment would be applied to reimbursement of SID payments if the purchaser completes planned capital improvements to the property. Additionally, the purchase price would be reduced by $60,219.73 to $349,438.27 if the purchaser completes planned capital improvements to the property within 18 months of closing. For offer 2 the City would receive the purchase price of $420,000.00. Pursuant to the terms of a Developers Agreement, tax increment would be applied to reimbursement of SID payments if the purchaser completes planned capital improvements to the property. Additionally, the purchase price would be reduced by $59,640.00 to $360,360.00 if the purchaser completes planned capital improvements to the property within 18 months of closing. For offer 3 the City would receive the appraised purchase price (offer is submitted at $430,000.00). No additional incentives would be provided as the School District is a tax-exempt entity. ALTERNATIVES: Decline offer and/or identify different terms for buy-sell agreement. ATTACHMENTS: Map of Old School Station Buy-Sell Offer (s) for Lot 3A SOLD