Staff recommends City Council receive the presentation, discuss the proposed Wilson Park land lease framework with Billings Public Schools District 2, and provide direction on whether staff should proceed with preparation of final lease and land disposition documents for future Council consideration.

The proposed 50-year agreement between the City of Billings and SD2 for a bus barn at Wilson Park, negotiated between March and July 2026, would generate $1,522,429.23 for the PRPL department. The deal includes an $18,000 annual lease with a 2% escalator, a land gift behind the Career Center, and no-cost snow storage for the city. Upon Council approval, Director Woltjer will present the final lease and land donation resolution.

Following cross-departmental consultations from March through July 2026, Parks, Recreation, and Public Lands (PRPL) Director Gavin Woltjer and School District 2 (SD2) Executive Director of Transportation and Strategic Operations Lindsay Gran have finalized a proposed lease agreement. Under this framework, SD2 would lease a portion of Wilson Park for a new pupil transportation facility. The final proposal incorporates critical feedback from the Interim City Administrator, Finance Director, and Building Official to ensure long-term strategic and financial alignment.

Key Financial & Lease Terms

• Term: 50-year lease agreement.
• Base Rent: $18,000 baseline annual payment.
• Escalator: 2% compounding annual increase starting Year 2.
• Projected Yield: $1,522,429.23 in total revenue for the PRPL department.

Mutual Strategic Benefits

• Asset Optimization: Preserves the SD2 parcel at 48th St. West and Central for future school development.
• In-Kind Services: Secures seasonal municipal snow storage on SD2 property at no cost to the City.
• Land Conveyance: Authorizes the City to gift a surplus strip of land behind the Career Center to SD2, as previously recommended on the Property Disposition list.
• Community Impact: Secures reliable, centralized student transportation logistics for the district.

Upon City Council approval of this proposal, Director Woltjer will introduce a formal resolution to execute the Wilson Park lease agreement and finalize the land donation north of the Career Center. SD2 will ask the voters on the November 2026 ballot to get approval for a 50-year lease. (Montana Code restricts school districts from agreeing to any lease longer than 15 years.)   
 

No fiscal action is being taken at this work session. If ultimately approved, this proposal results in the PRPL department receiving $1,522,429.23 during the terms of this agreement. The donation of the strip of land north of the Career Center does not result in any cost-savings for the department regarding maintenance or mowing operations. The department currently expends zero dollars on this property each year. 

Billings Public Schools District 2
City of Billings
PRPL department 

Council may not agree with this proposal;
Council may agree with this proposal;
Council may alter this proposal.