Stockman Bank purchased lots 1-6 block 53 Fosters Addition from the City of Billings in 2006.  The bank proposes to purchase lots 7 & 8 in the same block with conditions and to use it for customers or employees.   The Library purchased these two lots and four adjacent lots in 1997 for library parking and possible building expansion.  The Library Board is conducting a planning process with the intention of reporting this fall to the City Council regarding the Library's future.  The proposed sale includes two conditions under which the property could revert to the City's ownership; if the land is needed for the Library or for a parking structure.  If the land is needed for a parking structure, the bank would own spaces in the garage equal in value to the land that would revert to the City plus access to additional leased spaces.  If the land is needed for a Library, the City would be obligated to find replacement parking property within 500'.  These conditions expire at the end of 2016.  Stockman Bank recently purchased two (2) lots north of the Library.  The agreement also provides a first right of refusal for the City to purchase the lots north of the Library, if the Board's plan proposes expanding parking or building in that direction or for other reasons such as increased property line setback. 

The City Council may:

• Conduct the public hearing and approve the resolution to sell the property to Stockman Bank.
• Conduct the public hearing and do not approve the resolution.

The Library purchased six (6) lots, including the two subject lots, in 1997 for $210,000.  The bank offers to purchase two lots for $220,000 and the funds will be deposited in the Library Fund.  Future financial impacts are unknown because the Library planning process won't be finished until fall.

Staff and the Library Board recommend that the City Council approve the attached resolution, selling lots 7 & 8, block 53 Fosters Addition to Stockman Bank for $220,000 with reversion conditions and a first right of refusal to purchase two lots from Stockman Bank in the future.