The City Council previously reviewed and approved exchanging land with the Billings Clinic.  City street rights of way on N. 28th St. and 9th Ave. North would be vacated and the former Underriner Buick property would be deeded to the City for future Library use.  Billings Clinic requests a formal, written agreement between the parties that expresses the exchange with more details and clarity than in past discussions.  The Legal Department reviewed the agreement and the only outstanding question about the exchange is the manner in which the 800 block of N. 28th will be divided between two adjacent owners; Billings Clinic and the Cherry Tree Inn.  The City's past practice is for a street to be equally divided between two adjacent owners and then a conveyance from one party to the other resolves the ownership issue.  Cherry Tree Inn representative Douglas Kirby submitted a letter indicating that he supports the street transfer to the Billings Clinic, but the details on how an ownership transfer will occur are not clear.  This unresolved issue does not prevent the City from vacating the right of way and allowing Billings Clinic and Mr. Kirby to resolve any issues between them.

The City Council may approve or reject the agreement.  Rejecting the agreement will deprive the Library of this land and will make future building construction or public parking uncertain and much more difficult.

There are no financial impacts from this property exchange other than staff time and document prepartion and recording.  The parcels have equal values and neither party will be required to pay for the other's property.

Staff recommends that the City Council approve the property exchange agreement with Billings Clinic.