Staff recommends that the City Council approve Amendment No. 1 to the PSA, allowing for the agreed-upon extensions and the orderly vacating of City Hall property by April 1, 2025, without the need for temporary leasing agreements.

In March 2024, the City of Billings entered into a PSA with Honaker Realty LLC and JWT Capital LLC for the sale of City Hall and surrounding properties. The original agreement outlined various contingencies and timelines that are now extended by this amendment. Notable changes include the extension of the contingency period to November 15, 2024, and the closing date to be no later than April 1, 2025. This will ensure the City can vacate the property in an organized manner and meet all contractual obligations.

City of Billings (Seller)
Honaker Realty LLC and JWT Capital LLC (Buyers)
DBP (Downtown Billings Partnership)
City Hall employees and departments impacted by the move
City Council

City Council may:

Accept Amendment No. 1 to the PSA.
Modify the amendment and propose changes.
Reject the amendment, which may result in delays or the need for additional negotiations

There is no additional financial consideration required for this amendment. The extension of timelines allows for smoother transitions without additional costs for leasing or other short-term accommodations.

Amendment No. 1 to the PSA allows for critical adjustments to the original agreement, primarily extending the contingency period and closing date to ensure all parties meet their obligations without disruption. Staff recommends the City Council approve the amendment.