The Kalispell City Council on Monday put the final Old School Station lot under contract.

The city approved the sale of Lot 4 to Bill Phillips of DCP Kalispell LLC for the full listing price of $293,000.

Lot 4 was subject to a property switch for Lot 15 as part of the arrangement to sell all of the six parcels of land behind Fun Beverage.

The city took ownership of Old School Station from Flathead County in 2015. The council unanimously approved the sale of Lot 4 on Monday in order to complete the half-decade-long process of selling the property to new users.

During the meeting, the council also held a public hearing on a request from Samaritan House to submit an application for a Community Development Block Grant.

The homeless shelter is seeking a $50,000 grant to fund planning and site work in order to add more housing at its 1110 Second St. W. facility.

Only Chris Krager, the executive director of Samaritan House, spoke during the public hearing. Subsequently, the council unanimously approved Samaritan House’s application. Next, it’s headed to the Montana Department of Commerce.

CDBG funds made a second appearance Monday in a conversation about reallocating $525,000 of the city’s grant allotment to the Kalispell Parkline Trail.

The grant is typically given out to small businesses in the city, but since the total budget for installing the downtown trail recently came in more than $3 million over the initial estimated cost of the project, the city is considering reallocating those monies to the trail.

The council voted to hold a public hearing on the proposed funding reallocation on June 7.

In an unusual move, the council on Monday approved a resolution to repeal a previous council’s resolution from 2009.

The current council unanimously supported the removal of a requirement for city nonprofits to provide payment in lieu of taxes (PILT) when they compete directly with local property tax paying entities.

Council members gave many reasons for their decision to end the PILT provision.

Some said it’s too difficult to determine when a nonprofit is directly competing with a private entity. Others felt the requirement exacerbates the difficulty in providing nonprofit service, particularly in regard to housing in the city. All three of the nonprofits that currently use PILT agreements are nonprofits that offer housing services.

“Resolution 5374 was passed really to even the playing field, where the prior council thought that there could be some potential for a nonprofit having an unfair competitive advantage over a for-profit entity,” Mayor Mark Johnson said of the original resolution. “We’re not seeing that with the instances that we’ve seen.”

However, he noted a future council would still retain the ability to put PILT agreements back into place.

The council also gave unanimous support for a 1.3% salary adjustment that affects non-union city staff members, and a use agreement for Rails-to-Trails “Tunnel Vision” project. The agreement outlines Rails-to-Trails’ obligation to install two murals on the multi-use path tunnel under U.S. 93 this summer, and to maintain the new public artwork.

Alisha Shilling with KALICO Art Center, the only public commenter on the use agreement, said the organization received more than 60 applications for the art project, and these were reviewed by a jury of nine community members.

Finally, Mayor Mark Johnson appointed Catharine Hooper Potter to the Tourism Business Improvement District Board and Cara Ryan Lemire to the Urban Renewal Agency.

Reporter Bret Anne Serbin may be reached at 758-4459 or bserbin@dailyinterlake.com