The City Council is being asked to approve the purchase 10.137 acres of property just east of Amend Park and north of King Avenue East as part of the goal to develop the South Billings Aquatics and Recreation Center project. The property is owned by Popelka Enterprises, LLC (Robert Popelka representative) and is described as Lots 3A - 1A, and Lots 3A-4 and 3A-5, Popelka Commerce Center Subdivision, 2nd filing. The City Council approved $1.25 million in Tax Increment funds for property acquisition for the South Billings Aquatics and Recreation Center project from the South Billings Boulevard Urban Renewal District (SBBURD) in the FY19 City Budget and in the 2019-2023 Capital Improvement Plan earlier this year. The purchase price agreed to by the property owner and the City Administrator for Council consideration is $934,500 as outlined in the attached Buy/Sell Agreement. The City also conducted a Phase I Environmental Assessment of the property and had no adverse findings (See attached Phase I ESA). This land purchase is a key element of development of the South Billings Aquatics and Recreation Center project. It is also strategic for the City as the property is directly adjacent to the Amend Park complex and provides control and flexibility to the City for recreation development in the future.

 

City Council may:

• Approve the buy/sell agreement to purchase lots 3A - 1A, and Lots 3A-4 and 3A-5, Popelka Commerce Center Subdivision, 2nd filing, for $934,500 or;
• Disapprove the buy/sell agreement to purchase lots 3A - 1A, and Lots 3A-4 and 3A-5, Popelka Commerce Center Subdivision, 2nd filing for $934,500. This land acquisition is a key strategy in the development of the South Billings Aquatics and Recreation Center project, and the funding for the purchase is already approved in the FY19 Budget and 2019-2023 CIP. Not approving the purchase would prevent the City from moving forward with this significant community project.

The City Council approved $1.25 million in Tax Increment funds for property acquisition for the South Billings Aquatics and Recreation Center project from the South Billings Boulevard Urban Renewal District (SBBURD) in the FY19 City Budget and in the 2019-2023 Capital Improvement Plan earlier this year. The purchase price agreed to by the property owner and the City Administrator is $934,500 as outlined in the attached Buy/Sell Agreement. The price was arrived at through negotiations based on two appraisals and a third appraiser review process, as called for in the City's property acquisition policy Resolution 93-16740 (See appraisals attached). The price is within the 5% allowance above the fair market value as described in the Policy but does exceed the $10,000 threshold by $34,500. However, the purchase is $315,500 under what the City Council budgeted for land acquisition.  This purchase will expend some SBBURD Tax Increment funds as planned for the development of the South Billings Aquatics and Recreation Center project. It is also a strategic investment for the City as the property is directly adjacent to the Amend Park complex and provides control and flexibility to the City for recreation development in the future.

Staff recommends the City Council approve the Buy/Sell Agreement to purchase Lots 3A - 1A, and Lots 3A-4 and 3A-5, Popelka Commerce Center Subdivision, 2nd filing for $934,500.