While designing the Downtown Transit Transfer Center (DTTC), MET Transit had the opportunity to construct a number of parking spaces for future use.  Currently, MET Transit has no immediate need for the parking spaces, so MET Transit is seeking to lease the parking spaces to generate additional revenue to help offset the costs of operating the DTTC.  With the start of the construction on the new Federal Courthouse project, Yellowstone County has requested the opportunity to lease some of the spaces until the County is able to accommodate its parking needs on another, County-owned property.  Subsequently, the County Commissioners have asked to lease thirteen (13) vehicle parking stalls, located on the northwest side of the DTTC, on a net basis from the City of Billings MET Transit.  The term of the Lease shall be two (2) years.  The Lease identifies that the lessee is responsible for maintaining the leasehold, and includes the appropriate insurance coverage requirements and indemnification language.
Staff is currently examining various other alternatives for the remaining 13 spaces including a public parking option.

The Council may:

• Approve the Lease agreement with Yellowstone County for thirteen (13) parking stalls; or
• Not approve the Lease agreement with Yellowstone County for thirteen (13) parking stalls.

The Lease will generate $650.00 per month for a total of $15,600.00 over the two year term of the Lease.  This will be considered operating revenues for MET Transit. 

Staff recommends that City Council approve the Lease and authorize the Mayor to execute the two-year DTTC Parking Space Lease with Yellowstone County.