Staff recommends City Council approve the resolution declaring the City’s intent to dispose of the City-owned property commonly known as the Babcock Theater Building, located at 2812 2nd Avenue North, and authorize staff to proceed with the required public notice and hearing process in accordance with Billings City Code Article 22-900 and Montana Code Annotated §7-1-4127.

The City of Billings owns the property commonly known as the Babcock Theater Building, located at 2812 2nd Avenue North in downtown Billings. The attached resolution initiates the statutory process required for the potential sale, exchange, or donation of City-owned real property. Approval of the resolution authorizes staff to proceed with the disposal process necessary before the City Council may take final action regarding disposal of the property. The public hearing was advertised on March 27, April 3, and April 10. Notice was posted on the property on April 3.

The City of Billings currently owns the property commonly known as the Babcock Theater Building, located at 2812 2nd Avenue North. The property is identified in the Montana Cadastral system as Geocode 03-0927-03-2-39-03-7001 and is legally described as:

HISTORIC BABCOCK BUILDING (11), S03, T01 S, R26 E, UNIT 1A, 41% COMMON AREA INTEREST, LOCATED AT LOTS 7-12 AND FRACTION OF LOT 6, BLOCK 93, BILLINGS ORIGINAL TOWNSITE, Yellowstone County, Montana.

The City Council previously authorized acquisition of the property as part of broader downtown redevelopment and economic development efforts. The building has historically operated as the Babcock Theater, a long-standing cultural and entertainment venue in downtown Billings.

Under Billings City Code §22-902, disposal of City-owned real property requires a two-step public process:

1. Resolution of Intent (Step 1)
• City provides public notice (including posting on the property for at least 7 days)
• City Council holds a public hearing
• Council must find the property is no longer needed for City use or that disposal serves the public interest
• Council adopts a Resolution of Intent (requires minimum of 6 votes)

2. Final Approval (Step 2)
• City provides a second public notice and publishes the Resolution of Intent
• City Council holds a second public hearing
• Council votes on the actual sale, exchange, or donation (requires minimum of 6 votes)

The Council retains discretion to determine the method of sale (auction, bid, or negotiated) and may impose conditions or reject all offers. Approval of the attached resolution initiates Step 1 of this process only and does not authorize a sale or transfer of the property.

Approval of the resolution itself has no direct fiscal impact.

If the City ultimately proceeds with disposal of the property, the fiscal effects will depend on the final terms of the transaction and would be presented to the City Council for approval at a later date.

Potential fiscal considerations may include:
• Sale proceeds from the property
• Changes to ongoing maintenance or operating costs associated with the building
• Potential economic development impacts in the downtown area

• Current tenants and users of the Babcock Theater property
• Downtown Billings businesses and property owners
• Local arts, cultural, and entertainment organizations
• Downtown visitors and patrons
• The broader Billings community

The public hearing process will provide an opportunity for community input prior to any final decision regarding disposal of the property.

Approve the Resolution of Intent, allowing staff to proceed with the public notice and hearing process required for potential disposal of the property.

Delay consideration of the resolution and request additional information from staff.

Decline to approve the resolution, in which case the City would retain ownership of the property and no disposal process would be initiated.