DNRC/DEQ Co-location Project

LEED Certified - 1st MT State-Owned Building LEED certified
LEED NC v2.2
Kalispell, Montana


Ø  Project Description
o    Construct new office facilities in Kalispell to replace the existing Northwestern Land Office (NWLO) and Kalispell Unit Office (KU) complex, currently owned by the State, as well as offices leased by Department of Natural Resources & Conservation (DNRC) Water Resources Division (WRD), Flathead Basin Commission (FBC), and Department of Environmental Quality (DEQ).  The site selected for this construction is located within the Professional Office Campus designated by a Planned Unit Development (PUD) on State Trust Land in Kalispell (refer to aerial photo).  NWLO’s and KU’s current facilities are on the same Section, but on land designated as commercial property.
o    Co-locate NWLO, KU, WRD, FBC, and DEQ into one State-owned complex.
o    Compensate the Trust beneficiaries for land value by transferring the permanent easement from the existing facilities to the new site.
o    Market the site now occupied by the NWLO as a commercial lease to generate greater return to the Trust beneficiaries (estimated at $8-$10/ sq. ft.).
o    Locate the new facilities adjacent to the new USDA Forest Service, Flathead Forest Supervisor and Talley Lake Ranger District office complex currently being constructed on the same campus.  The Forest Service facility includes the Flathead Interagency Dispatch Center, which dispatches most of NWLO’s wildland firefighting resources.

Ø  Why Construct New Facilities and Consolidate?
o    Construction results in positive internal rate of return to the Trust beneficiaries of at least 1.68%.
o    The office complex relocation eliminates the need to compensate the Trust beneficiaries for an 11.04 acre commercial remnant that exists at the current site.
o    Consolidation will improve public access and customer service.
o     New facilities will accommodate space concerns for existing programs (DNRC operations are not expanding), address facility deterioration, ADA concerns, improve energy efficiency, and provide for natural resource assistance in a centralized location for Montana citizens.  The existing facilities were constructed in 1957 and 1976.
o    Operating & Maintenance costs are expected to decrease approximately $25,000 annually.
o    Improve coordination and communication between State Government and the USDA Forest Service.
o    Improve the sharing of resources including motor pool, capital equipment, and administrative support resources.
o    Realize a significant savings in current lease payments (including operating & maintenance costs) for DEQ and WRD.

Ø  Impact on Existing Facilities:
o    Existing NWLO facilities will be vacated (likely leased or sold) and the current property will be leased at a significantly greater value for Trust beneficiaries.
o    Leased facilities will be vacated.

Ø  Problems being addressed:
o    Current facility deficiencies
§  ADA compliance
§  Facility deterioration
§  Energy use
o    Fiscal responsibility for the Trust beneficiaries (highest possible value).
o    Improves safety concerns with present location on Hwy 93. 
o    Eliminates State-office lease payments:
§  DNRC-6 FTE (1920 sq. ft.), $18,000 annually $9.40/sq.ft (general fund).
§  DEQ-13 FTE (2,560 sq. ft.), $25,000 annually$9.75/sq.ft (general fund).

Ø  Site and Surrounding Area:
o    Project site is approximately 7.4 acres in the suburban area on the perimeter of Kalispell, Montana.
o    The surrounding area is a mixture of commercial, residential and agricultural uses.

Project Narrative provided by Mark Headley, StudioFORMA