W.O. 09-12 Inner Belt Loop will construct an arterial road from Wicks Lane to Alkali Creek Road as part of the Phase I construction. No right-of-way exists through this corridor and therefore it must be obtained as part of the project.  The subject parcel is located in the East half of the Southeast Quarter of Section 18, Township 1 North, Range 26 East, is owned by the State of Montana and is managed by the Montana Department of Natural Resources and Conservation (DNRC).  Staff submitted the Right-of-Way Application to DNRC and the State Board of Land Commissioners approved the application.  

City staff has been negotiating with the DNRC to purchase Right-of-Way.  Right-of-Way to be acquired is shown in Exhibit A of the Right-of-Way Deed.  The Right-of-Way for this parcel was appraised and the fair market value of the property was determined to be  $8,400.00.  

The Council may:

• Approve the Right-of-Way Deed with the Montana Department of Natural Resources and authorize the mayor to sign, or;
• Do not approve the Right-of-Way Deed with the Montana Department of Natural Resources.  If the Right-of-Way Deed is not approved, the Inner Belt Loop cannot be constructed or would have to be rerouted.

The cost of the right-of-way from the Montana Department of Natural Resources is $8,400.00. Arterial funds will be used to purchase the property.

Staff recommends that the City Council approve the Right-of-Way Deed with the Montana Department of Natural Resources for $8,400.00 and authorize the Mayor to sign the Right-of-Way Deed.