City staff recommends that the City Council review the attached list of City-owned properties, discuss priorities for potential property disposition, and provide direction to staff regarding the next steps in this process.

In May 2022, Council Member Ruspis proposed an initiative directing city staff to take the following actions within 90 days:
Compile a comprehensive list of City-owned properties;
Develop a structured process to solicit development proposals for underutilized properties; and
Identify costs associated with property disposition.

As part of this effort, a Geographic Information System (GIS) map was created to visually represent city-owned properties that could potentially be disposed of. However, due to staffing limitations, no further progress was made at that time. The GIS Map can be accessed at this link: https://billings.maps.arcgis.com/apps/webappviewer/index.html?id=150d79100b924cb78e616bdc61b135a3
This map is also a work in progress and is being updated with additional information as it is available and able to be placed onto the map.

Recognizing the need for a clear and consistent process for property disposition, the City initiated an update to Billings Municipal Code ARTICLE 22-900 – SALE, EXCHANGE, OR DONATION OF CITY REAL PROPERTY in September 2023. This process culminated in a complete revision of Article 22-900, which was approved following a second reading on November 27, 2023.

At the December 2024 City Council Work Session, the topic of City property disposal was revisited, accelerating efforts to move this initiative forward. As a result, the GIS map was updated to reflect the most recent staff recommendations.

Council Members from Wards 1, 2, and 5 conducted site visits in their respective districts, assessing City-owned properties and providing insights into potential dispositions. Their observations and recommendations have been incorporated into the draft master list of City-owned properties, which is attached. This list remains a work in progress, requiring further verification and updates.

The following stakeholders have been identified as key participants in the discussion and decision-making process regarding the disposal of City properties:

City Council: Establishes policy direction and priorities for property disposition.
City Administration: Facilitates the evaluation, mapping, and reporting of City-owned properties.
Legal Department: Ensures compliance with municipal codes and property transaction regulations.
Community Development & Planning: Assesses potential development opportunities and zoning implications.
Finance Department: Evaluates financial impacts and revenue potential from property sales or transfers.
Local Developers & Investors: May express interest in acquiring and developing City-owned properties.
Neighborhood Associations & Residents: Provide input on how property disposition may impact the community.
Non-Profit Organizations: May be interested in property acquisition for community-focused initiatives

Proceed with discussions: The City Council may use this session to outline specific objectives and priorities for property disposition, guiding staff on the next steps.

Defer further action: If additional research or community engagement is needed, Council may choose to postpone decisions until more information is available.

Modify the approach: Based on Council feedback, adjustments can be made to the list, process, or criteria for property disposition.

This discussion itself does not have any direct fiscal impact. However, future property dispositions could result in financial implications, including potential revenue from sales, ongoing maintenance cost reductions, and economic development opportunities.

The City Council is asked to review the attached draft list of City-owned properties, discuss priorities and considerations for property disposition, and provide staff with direction on the next steps. Establishing clear objectives will enable the City to move forward with a structured, efficient, and community-focused property disposal process.