The City of Billings owns a 2,800 sq. ft.,property in the 1100 block of S. 27th Street, described as the N. 20' of Lot 21, Block 25 of the Sugar Factory Addition to Billings.  A nearby owner expressed an interest in purchasing the property which is currently unused by the City and functions as a northern extension of the "Blondie's" restaurant parking lot.  The City's land disposal rules are in the Billings Montana City Code (BMCC) Section 22-902. These rules require a public hearing, notification to all property owners within 300' of the parcel and competitive bidding.  The rules also require six (6) affirmative votes to sell property.  The proposed sale was advertised and owners notified.  The City received two (2) bids as follows:
     Garden Avenue Properties                              $5.62/sq. ft. - approx. $15,736
     C-Store Properties, LLC                                   $15,000 - approx. $5.36/sq. ft.
The attached map show the location of this property.
 

City Council may:

• Approve selling the property to the high bidder, or;
• Reject the high bid and approve selling the property to the low bidder, or,
• Reject both bids and provide direction to staff. 

The subject property was purchased in the 1970s or 1980s as part of the S. 27th Street urban renewal and redevelopment program.  The City of Billings has an informal policy of accepting no less than $5/sq ft. for land that it owns on or near S. 27th.  Both bids exceed the minimum requirement.  The usual practice is to deposit any of these land sale proceeds in the Expanded N. 27th Street tax increment fund, but the Council  may choose to deposit them in the General Fund or any other City fund that it deems appropriate.

Staff recommends that the City Council conduct a public hearing and approve the resolution authorizing the staff and Mayor to sell the N. 20' of Lot 21, Block 25 Sugar Factory Addition to the high bidder, Garden Avenue Properties, LLC, for $5.62/sq. ft., or approximately $15,736, and to deposit the proceeds into the Expanded N. 27th Street tax increment fund.