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Council to vote on casino, lot purchases

Matt Hudson | Hagadone News Network | UPDATED 9 years, 7 months AGO
by Matt Hudson
| April 5, 2015 9:00 PM

After a break on the fifth week of March, the Kalispell City Council has a full agenda for tonight’s meeting.

The item that could get the most discussion is the final approval of a Town Pump gas station at the corner of West Reserve Drive and U.S. 93. It’s a 4-acre parcel next to Eisinger Motors and the former site of The River Church.

Eureka Town Pump Inc. would manage the facility, which is proposed as a gas station, convenience store and casino. There has been pushback on the inclusion of a casino at previous Planning Board and City Council meetings.

At the March 16 council meeting, three people spoke against the casino. They voiced concern over the addictive nature of gambling. One woman went so far as to say it would increase drug, alcohol and prostitution activity in the area.

Another concern was the perceived precedent it would set in the north Kalispell commercial area. This would be the first casino to be built at that end of town.

Part of the permit includes a condition that prohibits signs that advertise gambling.

On Friday, the city’s planning department had received around 100 signatures on a petition against the casino. Department head Tom Jentz said the petition would be submitted to council members for review.

The council will vote on three items related to Town Pump’s proposal: a conditional use permit, a zoning change for commercial use and annexation into the city. The plot is currently county land.

ANOTHER ITEM ON the council’s agenda involves Old School Station, a south-side area originally developed for technology and industrial use. The city annexed the area in 2006 and issued $4.5 million in bonds to create a special improvement district.

The economy turned down in the following years, and the majority of lots in the district have since fallen deeply into debt. Though the property is privately owned, the city would be ultimately responsible in the event of default due to the bonds it issued.

Now facing a $285,000 debt payment without the money to cover it, city officials have hatched a plan for Old School Station. It involves the purchase of the six of the most delinquent parcels with $1.2 million from the general fund reserve.

The city would then square the debt and look to sell the parcels. Officials are in a position to do this because the city manages the various accounts related to the district, including the debt service fund. According to the plan, the city could then sell the lots without debt attached and replenish the general fund upon the sale.

Council members and city staff discussed the plan at length during an early March work session. There were questions about whether or not a city should acquire and sell real estate, but most indicated that this was the most viable option.

According to the latest memo from City Manager Doug Russell, the city would face coverage of future special assessment payments if it didn’t purchase the lots. That would come in at around $1.85 million and the lots would still carry substantial debt. If the city acquires the lots and cannot sell them, it would be an estimated cost of $1.91 million in a worst-case scenario.

Other items on the council’s agenda:

q A resolution to approve municipal sewer service for Phase 2 of Trumbull Creek Crossing, a subdivision in north Evergreen that would be annexed into Kalispell. Due to its location, the sewer service would run through Evergreen’s sewer district. The council must consider the added sewage load according to a limit agreement in place. The plan would follow Phase 1, which is city property with municipal sewer service.

q A resolution of intent for the Spring Prairie Phase 4 development. This is for a proposed 28-acre commercial development in the corner of Old Reserve Drive and U.S. 93 between Costco and Kidsports. This wouldn’t be final approval of the project but will set a public hearing date on an amendment to the area’s growth policy. The amendment would allow the parcel to be used for commercial purposes.


Reporter Matt Hudson may be reached at 758-4459 or by email at mhudson@dailyinterlake.com.

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