Regular 7.
Regular City Council Meeting
- Meeting Date:
- 05/23/2016
- TITLE
- Public Hearing and Resolution authorizing the sale of lot 17, block 189 Billings Original Townsite
- PRESENTED BY:
- Bruce McCandless
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City of Billings owns lots 9-17, block 189 of the Billings Original Townsite (BOT), located in the 2600 block of Minnesota Avenue and currently used as a free, surface parking lot. The City formerly owned lots 7 & 8 but sold the building and property to the Interfaith Hospitality Network in October, 2012.
Russ and Susan Plath recently purchased the L&L Building, located at 2624 Minnesota Ave. The building occupies lot 18, block 189 BOT. The Plaths are remodeling the historic building's second floor and would like to re-install windows in the east wall. The windows were removed and covered by a previous owner. The International Building Code requires separation between buildings that have openings (windows or doors) on adjacent walls. Mr. Plath asked for a no-build easement on lot 17 in order to gain the necessary building setback but staff recommended that he attempt to purchase the property instead of encumbering part of the lot with a building restriction. Staff and Mr. Plath also discussed the advantages of a reciprocal access and use agreement that could be negotiated after the sale. As required by City Code Section 22-900, staff advertised the property for sale, notified surrounding property owners and published a public hearing notice. The City received a single bid from the Plaths for $5.25/sq. ft. or a total of $18,375. The City Council must conduct a public hearing and then may consider approving a resolution ordering that the property be transferred to the Plaths.
Russ and Susan Plath recently purchased the L&L Building, located at 2624 Minnesota Ave. The building occupies lot 18, block 189 BOT. The Plaths are remodeling the historic building's second floor and would like to re-install windows in the east wall. The windows were removed and covered by a previous owner. The International Building Code requires separation between buildings that have openings (windows or doors) on adjacent walls. Mr. Plath asked for a no-build easement on lot 17 in order to gain the necessary building setback but staff recommended that he attempt to purchase the property instead of encumbering part of the lot with a building restriction. Staff and Mr. Plath also discussed the advantages of a reciprocal access and use agreement that could be negotiated after the sale. As required by City Code Section 22-900, staff advertised the property for sale, notified surrounding property owners and published a public hearing notice. The City received a single bid from the Plaths for $5.25/sq. ft. or a total of $18,375. The City Council must conduct a public hearing and then may consider approving a resolution ordering that the property be transferred to the Plaths.
ALTERNATIVES ANALYZED
City Council may:
- Approve the resolution and order the lot sold to the Plaths for $18,375, or;
- Reject the bid and disapprove the resolution, or;
- Provide alternative guidance to staff.
FINANCIAL IMPACT
The City acquired this property in the 1980s and paved the lot for free parking in the early 2000s. The City Council has approved other property sales in the area for $5 - $5.25/square foot. If the Council accepts the bid, staff recommends that the funds be deposited in the downtown tax increment fund and be used for eligible district public improvements.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution that authorizes selling lot 17, block 189 to Russ and Susan Plath for a total of $18,375.