The City Council directed staff at its May 7, 2012, work session to prepare a letter indicating its interest in investigating the possible acquisition of the James F. Battin Federal Building and Courthouse.  The building was declared surplus by the U.S. General Services Administration (GSA) on April 20, 2012, and no Federal agency expressed interest in it.  Public bodies such as the City of Billings now have until 9 a.m. May 21, 2012, to submit a notice of intent to GSA's Real Property Utilization and Disposal Division in Ft. Worth, TX, regarding use of the Batting Building.  Council held its last regularly scheduled business session on April 23, the same day the GSA declaration letter was received, and there was no time for staff to evaluate the need for the facility before that meeting.  Therefore, if it wishes to meet the Federal deadline, the City Council would either have to vote to add approval of the letter to its May 14, 2012, business session by a 3/4 vote of those present, or to schedule a special meeting to consider the matter.

City staff identified several potential uses for the building, including relocation by the Municipal Court, Police Department, Communications Center and Legal Department in conjunction with Yellowstone County District Court and Sheriff's Department services, which staff believed would be allowable under 40 USC 545(b)(8).  GSA indicated to staff the property could be conveyed to either City or County for up to a 100% discount if there was an appropriate use for the building, although there would be specific use restrictions or reversionary language made part of the transfer.  If either entity is interested in paying full market value through a negotiated sale, there would be a clear title with no limits other than excess profit restrictions.

The property also has been determined suitable by the U.S. Housing and Urban Development Department for use as a facility to assist the homeless, so another option might be to house homeless service providers at low cost in a transformation campus similar to one in San Antonio, TX.  Less than 1% of all properties disposed of through the public process result in a transfer to assist homeless agencies, according to GSA, but homeless groups have priority over other public bodies. 

However, the structure is 221,367 gross square feet, and known to be contaminated with asbestos.  The facility's size and the cost of rehabilitating it for future use make it impractical for any City departments to use it without a partner.   There once had been active discussion about a joint Law and Justice Center involving the City and Yellowstone County.  Big Sky Economic Development at one time also had expressed interest in partnering with the City on the project.  But, at a County Commission meeting on May 8 and a Big Sky Economic Development Board meeting on May 10, the two groups each declined to participate in the process.

GSA says the final stage of the disposal process if no public entity acquires the property would be for a public sale conducted through a live or on-line competitive auction. 



 

• Vote to add the attached letter to the May 14 agenda by a 3/4 vote of those present and then approve the letter;
• Set a special meeting to consider approving the letter; or
• Decide not to proceed with the letter in light of the decisions by its potential partners.