Staff is neutral for a recommendation on this issue.  The Parks, Recreation and Cemetery Board Met on May 11, 2022, and discussed this issue.  There were 2 motions made, but both failed to receive a majority vote.  Therefore, the Board does not have a recommendation regarding this issue.   

The property owner of the de-annexed Terrace Estates Subdivision, 3rd Filing, as part of their plan to reconfigure their lots prior to selling the land, desired to acquire nine parcels of City owned parkland, see Attachment A. In exchange, they propose to providing four parcels of equal acreage and greater value, See Attachment B. At the April 11, 2022, Council Meeting, a public hearing was held followed by Council passing a resolution authorizing staff to proceed with the disposal of these parcels through the bidding process by the sale, exchange or donation of City owned land as permitted in the Billings, Montana City Code, Article 22-902, see Attachment C. On April 15, 2022, the City published a Public Notice titled Disposition of City Property and Call for Sealed Bids wherein offers to purchase, exchange or donate these nine parcels would be received by the City Clerk on May 3, 2022, by 2:00 pm.  At the bid opening on May 3rd, the City received one bid, see Attachment D. This bid was from James and JoAnn Boyer, owners of the de-annexed Terrace Estates Subdivision, 3rd Filing.  This bidder is proposing to exchange four parcels of land they own for the nine parcels the City owns.   

According to the Council approved Billings Urban Area Bikeway and Trails Master Plan Update for 2017, a proposed future trail is identified along Alkali Creek on City owned land through the De-annexed Terrace Estates 3rd Filing property, see Attachment E.

If Council approves the exchange of the 4 parcels offered by the Boyers, see Attachment F, it would provide additional parkland on the east end of the Terrace Estates land.  This would improve access to an existing City utility easement in the northeast corner, Parcel B-P 1, for Public Works to more conveniently access a sewer line for maintenance.  On the southeast corner, Parcels B-P 2 and  B-P 3, would provide additional road frontage along Alkali Creek Road for any future parkland access to the Alkali Creek corridor and for future possible development.  If the 9 parcels of parkland on the western half of the Terrace Estates land is exchanged, it would narrow the corridor running along Alkali Creek and would decrease the possibility of public access along that portion for future improvements such as a trail. It will also reduce the access to the remaining parkland to perform maintenance operations.   A composite aerial map illustrates the proposed land exchange see Attachment G.

City Council may:

• Approve the bid by James and JoAnn Boyer to acquire the nine parcels of parkland within the de-annexed Terrace Estates Subdivision for the four parcels they propose to exchange; 
• Approve the bid by James and JoAnn Boyer subject to certain conditions of the sale, exchange, or donation of any or all of the nine parcels of parkland as Council may determine, including placing deed restrictions relating to the use or subsequent sale of the property; or
• Reject the bid and retain the property.

There will be no significant fiscal effects by taking this action.