The City of Billings owns approximately 375 acres south of and adjacent to the Billings Regional Landfill.  Since 1996, the City has had a grazing lease on a portion of this land with Mr. Aaron Meyer.  Under the current 2005 lease, Mr Meyer leases a total of 205 acres for grazing purposes.  The grazing lease with Mr. Meyer provides the City an annual revenue of $615 for the term of the lease.  The City was recently approached by Mr. Wayne Townsend to lease 144 acres of the remaining 170 acres for grazing purposes.  The property is located in Section 29, Township 1 South, Range 26 East, southeast of Hillcrest Road as shown on the attached map. The property is bordered on the south by uninhabited State Land owned by the Bureau of Land Management.  The new lease will provide the City an additional annual revenue of $432.  The lease for this property would be for a 5-year term with the option for one additional five-year term under the same terms and conditions as the lease for Mr. Meyer.

Council may:

• Approve the lease with Mr. Townsend; or
• Not approve the lease with Mr. Townsend

The proposed lease agreement with Mr. Townsend would provide annual revenue of $432 for the term of the 5-year lease.  The lease also provides Mr. Townsend the option to renew the lease for one additional five-year term at the expiration of the five year lease under the same terms and conditions.

Staff recommends that Council approve the grazing lease with Mr. Wayne Townsend for 144 acres south of the Billings Regional Landfill for a 5-year term with the option to renew for one additional 5-year term.