Planning staff recommends the City Council conduct the public hearing as requested. No additional action is required.

The County purchased the property at 2550 3rd Ave N in 2001 and converted the former US Bank building for use by the Sheriff's Department. The property is just west of the MET Transfer Center and just north of the new James F. Battin Federal Court House, both LEED platinum developments. In 2010, the short section of N 26th St between the County parking lot east of the courthouse, and the subject property was vacated to allow the new Federal Court house to be constructed. In August 2017, the Sheriff's Department moved to a new location at 2323 2nd Ave N, and the building on the subject property was vacated. The vacant building on the lot was torn down in 2023 as the County determined it was not a structure that could be easily renovated or re-used for County purposes. The demolition was complicated by the identification and removal of asbestos containing materials.

The County now proposes to re-purpose the vacant lot and the adjacent abandoned right-of-way of N 26th Street into a surface parking lot. This will connect the existing County surface parking lot directly east of the County courthouse to additional surface parking. The adopted City zoning regulations for uses within the Central Business District, requires a special review application to develop a surface parking lot. A special review is an application that is processed through the Planning Division, reviewed by the Zoning Commission for a recommendation to the City Council for approval, conditional approval or denial. A special review use is a use that is not an allowed use per se in the zone district, but can be allowed based on circumstances.

The state law at MCA 76-2-402 allows a public agency to use public land contrary to local zoning regulations provided a hearing is held before the governing body of the jurisdiction. The law was changed in 2021 to change the venue of the public hearing (previously the Board of Adjustment) and eliminate the language that limited the scope and intent of the public hearing. The prior law stated that the Board of Adjustment "shall have no power to deny the proposed use but shall act only to allow a public forum for comment on the proposed use." The current law simply eliminated this language. Here is the current state law: The new statute does not state that there is decision-making authority for the process for City Council, it only states the Council hold a public hearing to accept comment. The law does not state that there is any additional action required of Council.

The County has engaged the services of WWC Engineering to prepare construction drawings for the new and expanded surface parking lot east of the County Courthouse. WWC Engineering is also engaged to represent the County in this proceeding. The construction drawings are attached and a letter explaining the project is included. The site plan does not show the street frontage landscaping, location of the new street trees, nor does it provide the required internal parking lot islands and landscaping required. Based on the length of the street frontage on 3rd Ave North that will be converted to a new surface parking lot (200 feet total including former N 26th St right-of-way), eight street trees will be required. One street tree exists, a Norway Maple at the intersection of the alley and 3rd Ave N on the east side of the subject property. This tree is approximately 14 to 18 inches in diameter and a significant canopy tree that provides shade to the sidewalk area and northeast corner of the proposed parking lot. This tree will need to be protected during any construction. Seven additional trees will be required and can be planted along the street frontage. Internal parking lot islands also are required per the number of parking spaces proposed but are not planned for the project. The County may also choose to upgrade the ungraded boulevard and street trees that border the existing parking lot close to the courthouse. The Central Business District street tree requirement is one tree for each 25 feet of street frontage. WWC Engineering has indicated this street tree planting plan is not yet finalized but will be done as a secondary project to the new parking lot construction.

Planning staff notified property owners within 150 feet of the subject property, published a legal ad on August 11 and August 18, and posted the property with a zoning request sign. In addition, the application materials were posted on the Planning Division "Current Zoning Application" webpage. Planning staff received no comments prior to this hearing.

The City Council may:

• Open the public hearing, take public comments on the proposed new County surface parking lot at 2550 3rd Ave N. and ask questions of the County and its agent.

The Land Use Contrary to Zoning statute does not confer on the City Council the ability to approve, deny or condition the proposed use. The public hearing is the opportunity to provide comments and concerns to the public agency sponsoring the project.

Holding the public hearing will not have an effect on the Planning Division budget.