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Regular   4.
Regular City Council Meeting
Meeting Date:
04/13/2020
TITLE
Public Hearing for Discontinuance of alley within Block 142 Billings Original Townsite
PRESENTED BY:
Debi Meling
Department:
Public Works
Presentation:
Yes

PROBLEM/ISSUE STATEMENT

Through the expansion of the Riverstone Health campus, a parking lot was constructed on the north half of Block 142 within the Billings Original Townsite.  This is located between 1st Avenue South and 2nd Avenue South west of South 25th Street.  There is an alley right of way in the middle of the block that runs north/south from 1st Avenue South to 2nd Avenue South.  With the parking lot construction, the approach off of 1st Avenue South to the alley was closed off.  Access to the alley right of way was maintained from 2nd Avenue South as there is a sanitary sewer main within the alley right of way. 

Recently, Riverstone Health submitted a permit to build a warehouse next to the alley right of way.  With this, they are proposing to close off the access from 2nd Avenue South and access the warehouse from the parking lot.  They originally wanted to vacate the alley, however, with the sanitary sewer main located in the alley, city staff prefers that this alley remain as right of way.  Riverstone Health has petitioned the city to discontinue the alley.  This would keep the area as right of way, but would not allow through vehicle access.  If the access at 2nd Avenue South is allowed to be closed, access to the sanitary sewer would need to be through the private parking lot.  The city would enter into a Memorandum of Understanding with Riverstone Health to define that the city has the responsibility for maintenance of the sewer line and Riverstone Health has the responsibility for surfacing of the parking lot.     

ALTERNATIVES ANALYZED

The Council may:
  • After holding a public hearing, approve the discontinuance of the above-mentioned alley at no cost; or
  • After holding the public hearing, approve the discontinuance of the above-mentioned alley at a cost based on the appraisal of the adjacent alley; or
  • After holding a public hearing, do not approve the discontinuance.

FINANCIAL IMPACT

Billings Municipal City Code section 22-600 describes the processes for vacation and discontinuance.  The code does not give any guidance to how the cost of the discontinuance should be determined.  Historically, city council has not required compensation for alley discontinuances.  There have been two alley discontinuances in the last 30 years. The last one was completed in 2010.

The value of the alley being proposed for discontinuance would be similar to the value of South
26th Street, which is presented as a right of way vacation and valued at $7.37/sf.  The area to be discontinued is 6,000 sf so the total value would be $44,200.

It is City staff's recommendation that the alley be discontinued at no cost to the applicant as the city can still maintain the sanitary sewer and the city will no longer have to maintain the alley.  



  

RECOMMENDATION

Staff recommends City Council hold a public hearing and approve the discontinuance of the alley within Block 142 Billings Original Townsite at no cost.

APPROVED BY CITY ADMINISTRATOR

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