The City of Billings requested that the Montana Congressional Delegation ask for federal funding for remediating environmental contamination and for demolishing the former Naval Reserve Center, located at 721 N. 22nd Street.  The City leased the property to the Navy from 1946 until 2006.  Over that time, the Navy constructed four building pods that the Navy and Marine Reserves occupied, plus several outbuildings. As with most buildings that were built in this era, this buildings are contaminated with materials that contain asbestos, plus a small amount of lead and mold.  The City requested that the Navy demolish the buildings when it vacated the property but Navy representatives said it lacked the statutory authority or funding to comply.  The Congressional Delegation was able to secure a $475,000 appropriation under the Economic Development Incentive grant program, administered by the US Dept. of Housing and Urban Development (HUD).  The City needs to officially approve the grant application and its receipt under standard conditions so that HUD can make the grant to the City and make funds available by next spring for the building demolition.   

The Council may:

• Approve the application; or
• Not approve the application. 

The maximum grant is $475,000 and the City may claim only what it spends on the project.  There is no match requirement.  There will be small project administration costs to prepare specifications and to bid the work and to monitor the in-progress work.  Those costs can be recovered from the grant.  The property will be restored to pre-building conditions so that it can be used for North Park expansion, for a new Emergency Communications Center or for other yet-to-be-determined uses.

Staff recommends that the City Council approve applying for and accepting a $475,000 Economic Development Incentive grant from HUD for environmental remediation and for demolishing the former Naval Reserve Center, located at 721 N. 22nd Street.