Staff recommends approval of the buy/sell agreement to purchase the building located at 760 Lake Elmo Drive for $575,000 with the following contingencies: (1) Council Approval, (2) Appraised Price, and (3) Due Diligence Inspections.

Council directed staff to obtain property for a future eighth fire station located in the Heights. City staff worked with property broker NAI to locate appropriate properties, and they found that the owner of a former fire station located at 760 Lake Elmo Dr. was interested in selling the property. The fire department and facilities toured the building and determined it is in an advantageous location, and good condition, to serve again as a fire station. This station, according to the ESCI long-range master plan from 2018, is strategically located. ESCI advised that we build the next station in the Heights on Topaz and Hilltop, approximately five blocks from the desired location. Except for some renovation, this former fire station is ready for service and would be much less expensive than purchasing, developing, and building a new station.
The Fire Department will present current and projected data on the advantages of this location in serving the Heights and Billings Community. This station could meet the immediate needs of housing the Mobile Response Teams that should be operational in December 2022.

City Council may:

• Approve; or,
• Not Approve

The property purchase will use fire department FY23 budget allocated for a new Heights fire station.

Purchase Price: $575,000
Due Diligence Cost: Estimated at $12,000
Remodel Costs: Estimated at $300,000

The Fire Department has allocated approximately $2,000,000 in FY23 for a second Heights fire station.