Staff recommends City Council approval of the Encroachment and Easement Agreement between the City of Billings and Valley Federal Credit Union (Valley FCU).

The City of Billings owns the City Hall Parcel, located in Block 58 of the Billings Original Townsite, which includes the Park 3 Parking Garage. A pedestrian Skybridge connects this City Hall Parcel to the Valley FCU Parcel, which consists of Lots 19-22 of the same block. The Skybridge encroaches upon and physically connects to the Valley FCU building.

The City has entered into a Purchase and Sale Agreement for the transfer of the City Hall Parcel, including the Park 3 Garage and Skybridge, to Honaker Realty, LLC and JWT Capital, LLC. To ensure clear terms for the shared use and responsibilities related to the Skybridge and its encroachment on the Valley FCU property, an Encroachment and Easement Agreement was negotiated.

This agreement formalizes mutual rights and responsibilities regarding access, maintenance, control, security, indemnity, and removal procedures for the Skybridge and its encroachment onto the Valley FCU Parcel. The document ensures orderly management of shared infrastructure and protects the City's and Valley FCU's interests.

This agreement is consistent with adopted policies for cooperative property management and supports the City's commitment to responsible asset disposition.

City of Billings
Valley Federal Credit Union
Honaker Realty, LLC and JWT Capital, LLC (purchasers of the City Hall Parcel)
Downtown businesses and public patrons using Park 3 Garage and Skybridge

City Council may:
Approve the Encroachment and Easement Agreement as presented.
Direct staff to revise specific terms within the agreement.
Decline to approve the agreement, which may impact the pending sale of the City Hall Parcel and Skybridge.

There are no direct fiscal costs associated with approving the agreement. However, the agreement assigns responsibility to the City (and successors) for maintenance of the Skybridge and related infrastructure. These costs are not anticipated to be significant in the short term and may be transferred with ownership during the sale of the City Hall Parcel. The agreement also includes indemnity provisions that protect both parties from damage caused by the other.

The Encroachment and Easement Agreement with Valley FCU is a proactive measure to address infrastructure shared between City property and private property prior to the transfer of ownership of the City Hall Parcel. The agreement protects access rights, assigns maintenance and liability responsibilities, and ensures clarity for future owners. Approval of this agreement will support the smooth completion of the City Hall Parcel sale and continued public and private cooperation in Downtown Billings.