Staff recommends that a presentation before the City Council be provided to review background information and discuss the sale of approximately 14.7 acres of Airport property to NorthWestern Energy.

The Airport's property extends about a third of the way down Airport Road toward the Billings Heights on the south side of the road and abuts the existing NorthWestern Energy Rimrock Substation.  NorthWestern Energy needs to expand the Rimrock Substation to better supply the electrical needs of the community and would like to purchase the neighboring Airport land.  Earlier discussions with Council were for a lease of this property; however, in a lease arrangement, it is still Airport property and their lease would be subordinate to the provisions and requirements of any existing or future agreement between the City and the United States relative to the development, operation, or maintenance of the Airport including all Grant Assurances.  NorthWestern Energy's management found many of these conditions to be very onerous and opted not to pursue the lease option and wanted to pursue the land purchase.  The Federal Aviation Administration (FAA) is willing to entertain this land sale; however, it will require a National Environmental Policy Act (NEPA) action and be advertised in the National Register prior to any sale.  Subsequently, the FAA needs City Council's approval that they are willing to sell the land to NorthWestern Energy prior to pursuing the required Federal actions to release the land for sale to NorthWestern Energy.

Not applicable at this time.

The land would be sold at Fair Market Value, estimated to be $225,000.