City seeks state loan to buy bank building

The Daily Inter Lake

The city of Kalispell aims to borrow $1.1 million from a state fund to buy the Wells Fargo building to use as a place to consolidate several scattered departments.

The City Council on Tuesday voted 7-2 to request the loan from the Montana Board of Investments. It had already decided to buy the building at an earlier meeting.

The city wants to move its planning, parks and recreation, and community development departments - currently scattered in various leased offices - into one building, probably next summer.

That move also will free up space at City Hall for the cramped police department.

Wells Fargo plans to move to a new building near U.S. 93 and West Reserve Drive. City officials said Wells Fargo had the downtown building appraised with a private offer of $1.4 million to buy it, opting instead to sell to the city.

City Manager Jim Patrick said repaying the 10-year, $1.1 million loan is expected to cost $1.355 million after interest is factored in.

After buying the building, the city expects to pay up to $800,000 in moving and remodeling costs. Kalispell has about half of that on hand and plans to borrow the rest as needed, city officials said.

Right now, the city pays about $63,500 a year to lease slightly more than 7,000 square feet of office space outside of City Hall.

The Wells Fargo building has about 20,000 square feet of potential office space.

Council members Bob Hafferman and Tim Kluesner opposed the loan request, contending that the city did not sufficiently analyze the costs and that the purchase process was not sufficiently transparent to the public.

Other council members said the costs were thoroughly analyzed and that the city will benefit from having more office space in fewer locations.

"It's the reason you buy a house instead a renting a house. Eventually, the payments will end," council member Hank Olson said.