The City Council is being asked to approve the purchase 300.84 acres of property that is along Hesper Road for the construction of the West End Water Treatment Plant and Reservoir project.  The property is currently owned by Knife River (JTL Group) and has been replatted to accommodate both parties.  The purchase price agreed to by the property owner and Public Works is $2,406,720 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.  The land purchase is key in the development of the West End Water Treatment Plant and Reservoir.  The land purchase will allow the City of Billings to construct a west end water treatment plant and reservoir which will provide months of water storage and critical redundancy in the system.  
 

City Council may:

• Approve the purchase of 300.84 acres from Knife River for the construction of the West End Water Treatment Plant or;
• Disapprove the purchase of 300.84 acres for construction of the West End Water Treatment Plant.  

There is adequate cash in the water fund for the purchase of the land. 

Staff recommends that City Council approve the Buy/Sell Agreement to purchase 300.84 acres for $2,406,720.