The Women's Prison has petitioned to vacate the alley within Block 228 of the Billings Second Addition between 7th Avenue South and 8th Avenue South.  The State is proposing to expand the yard for the Women's Prison and would like to fence off the yard, including the alley.  Currently, there is a sanitary sewer line running through the alley.  If vacated, the city would retain an easement for the sanitary sewer line.  The area of the alley proposed to be vacated is 5,935 square feet.

The Council may:

• After holding a public hearing, approve the above-mentioned right-of-way vacation; or
• After holding a public hearing, do not approve the above-mentioned right-of-way vacation.

The State received a letter from Charlie Hamwey with an opinion of value of the alley.  Mr. Hamwey's letter indicated land sales in the area between $3.50/square foot and $7.00/square foot.  Due to the nature of this piece of land, Mr. Hamway determined a value of $3.50/square foot in part because the area is encumbered by utilities which will prohibit them from building any kind of permanent structure over the area.  The State will be fencing the area, but no buildings will be constructed over it unless the utilities are relocated.  The total area of the alley is 5,935 square feet.  Total compensation for the alley will be $20,772.50.

Staff recommends that Council, after holding a public hearing, approve the resolution vacating the alley within Block 228 of the Orginal Townsite of Billings at a cost of $20,772.50.