J & S Properties, Inc. has petitioned to vacate the alley within Block 81 of Original Town of Billings and the north/south alley within Block 120 of Original Town of Billings.  These alleys are located between Montana Avenue and 2nd Avenue North and North 16th Street and North 17th Street.  J & S Properties owns all of the properties abutting these two alleys and there are no public utilities within them.  J & S Properties is attempting to make the property more viable for future development.  Coldwell Banker completed a brokers property evaluation for the alley and have determined the alleys to be valued at $74,790.  The area of the alleys proposed to be vacated is 9,000 square feet.  Given the lack of use of the alley for public purposes and the desire of the adjacent property owner to purchase the right of way, staff recommends City Council approve the vacation of the alley.

The Council may:

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

Coldwell Banker completed a brokers property evaluation for the alleys and determined the value to be $74,790.  If the vacation is approved, the property owner would pay this amount to the Public Works Department.  Administrative Order #56 allows for a comparative sales data instead of a formal appraisal.  Engineering reviewed the brokers property evaluation and determined it to be fair compensation for this property.  There were three comparative land sales evaluated within the last 6 years within 5 blocks of this alley.  The broker determined that the average cost/square foot is $8.33. 

Staff recommends City Council hold a public hearing and approve the vacation of the alley within Block 81 Original Town of Billings and the north/south alley within Block 120 of Original Town of Billings.