State starts process for Section 36 residential pod

The largest remaining tract of undeveloped residential land inside Kalispell's city limits is up for grabs.

The 140-acre site is located at the intesection of Four Mile Drive and Stillwater Road, immediately west of the KidSport ballfield complex and just south of where the new high school will be built. It's part of the Section 36 school trust property, which runs from Four Mile to West Reserve Drive and from Stillwater to U.S. 93.

The Department of Natural Resources and Conservation recently issued a request for qualifications seeking experienced real estate firms who'd like to help develop the property.

The agency, which manages school trust lands across the state, wants a partner for a mixed-use residential project that would substantially increase revenue to the trust. According to an information packet included with the request, the state is looking for companies that can "implement innovative mixed-use concepts that are generous with landscaping and design amenities, promote creative architecture … and that deviate from commonplace design."

"We're expecting this to be something other than a suburban residential neighborhood spread across the whole 140 acres," said Steve Lorch, the DNRC's lead planner on this project. "There might be some multi-family housing, townhomes, or professional offices. It's not intended to all be single-family homes."

The types of uses and design philosophy that will govern this project are outlined in a planned unit development agreement and neighborhood plan that were approved for the entire Section 36 area several years ago.

The documents spell out where various "pods" of commercial, office and residential development will be allowed. They also discuss timing, architectural standards, property taxes and other issues.

The Lowe's/Spring Prairie Center retail center was the first project built after the documents were put in place. A 60-acre site near the west corner of Section 36 has also been promised to School District 5 for the new high school, and the U.S. 93 bypass will cut through the middle of the property.

Now, the state is ready to start work on the residential pod.

"We've had a number of people express interest in this site over the years," Lorch said. "I'm hoping we'll get a good response."

Unlike most previous state lands projects - in which the property was simply leased to developers, who then captured any profits from the subsequent build-out - Lorch said the DNRC wants to remain an active partner this time around, so it can realize a higher return.

"The state would prefer to retain ownership and lease the land," he said. That might not be possible for the entire 140 acres - for example, single-family home lots would probably have to be sold outright - but it should be an option for the multi-family housing and office development.

The deadline for responding to the request for qualifications is April 11.

All qualified applicants will then be invited to submit a more detailed proposal discussing how the project site would be leased, sold, developed, marketed and managed. These proposals will be ranked according to set criteria.

"We'll allow about three months for those proposals," Lorch said. "Right now, we anticipate identifying the highest-ranked applicant and beginning negotiations with them by Aug. 1."

Information packets regarding the project can be obtained at the DNRC office at 2250 U.S. 93 north of Kalispell, or by calling 751-2274.