The City of Billings has been leasing a 79.5 acre parcel of land commonly known as Norm's Island and a 5.61 acre parcel of land from the Montana Department of Natural Resources and Conservation (DNRC) in order to provide public recreational access to lands adjacent to the Yellowstone River.  The leased State Lands parcels and City owned lands are managed and operated by the City Park and Recreation Department together as the Riverfront Park Complex.  The current State Lands  lease was for a 10-year period and is up for renewal in 2013.  Additionally, through a master planning process of the Marathon Loop multi-use trail, it has been determined that another parcel of land of 71 acres also owned by DNRC and commonly known as Darling Island located on the eastern end of the Riverfront Park Complex is critical to providing a multi-use trail access link between Riverfront Park and Mystic Park.  The proposed agreement includes renewing the existing lease for Norm's Island and the 5.61 acre parcel and adding Darling Island to the lease agreement. A total of 156.11 acres of State Lands are included in the lease agreement.

The City Coucil may agree to sign or not sign the Special Lease of State Lands agreement.  Not signing the Agreement leaves the City without a formal agreement with the State of Montana for providing public access to Norm's Island along the Yellowstone River and will prevent a critical connector route on the proposed Marathon Loop trail system from being established.

The cost of the current lease for 79.5 acres of Norm's Island and the 5.61 acre parcel has been $1,275.00 per year each of the past 10 years.  The new proposed lease will be $3,264.00 for Norm's Island plus $2,726.40 for the addition of Darling Island for a total of $5,990.40 per year over the 10-year life of the agreement. The Park and Recreation Department has sufficient funds for the lease renewal for Norm's Island and the addition of Darling Island.

Staff recommends that the City Council approve and the Mayor sign the special Lease of State Lands agreement with the State of Montana Department of Natural Resources.