The City Council is being asked to approve the purchase of 20.497 acres along 48th Street West that is needed for the construction of the West End Water Treatment Plant and Reservoir project.  The property is registered in Yellowstone County under Harbour Land Holdings, LLC, which is owned by McDonald Land Holdings LLC out of Nevada.  The Buy/Sell Agreement names McDonald Land Holdings, LLC as the seller of the property.  The purchase price was agreed to by the property owner and Public Works for $875,000 as outlined in the attached Buy/Sell Agreement.  The price was arrived at through negotiations based on two appraisals, 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 the 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 20.497 acres from McDonald Land Holdings LLC (Harbour Land Holdings LLC) for the construction of the West End Water Treatment Plant or;
• Disapprove the purchase of the 20.497 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 20.497 acres for $875,000.