In 2005, the City vacated a portion of South 26th Street between 1st Avenue South and 2nd Avenue South to Yellowstone Health Partnership.  They have utilized this right of way to allow RiverStone Health to expand their campus.  At that time, Yellowstone Health Partnership did not own one property on the northeast corner of 2nd Avenue South and South 26th Street, therefore, could not vacate a small portion of South 26th Street that fronted this property.  Yellowstone Health Partnership has since gained ownership of this property and is proposing to vacate the rest of South 26th Street up to the northern boundary of 2nd Avenue South.  This will allow further expansion of the campus.  Yellowstone Health Partnership obtained an appraisal for the right of way proposed to be vacated which determined the property to be valued at $29,500.  The area of the right of way proposed to be vacated is 4,000 square feet. 

Attached is an overall map showing the campus along with past right of way vacations.
  

The Council may:

• After holding a public hearing, approve the vacation of the above-mentioned right-of-way at no cost; or
• After holding a public hearing, approve the vacation of the above-mentioned right-of-way at a cost of $29,500; or
• After holding a public hearing, do not approve the vacation.

Yellowstone Health Partnership obtained an appraisal for the right of way proposed to be vacated.  The appraisal was completed by The Appraisal Group, LTD, and they determined the property to be valued at $29,500.  City staff reviewed the appraisal and determined it to be fair compensation for this property.  

Attached is a letter from the Yellowstone Health Partnership requesting that the property be vacated at no cost.

Since 2004, there have been four separate requests for vacation of right of way for the Riverstone Health campus.  In 2004, the City Council approved that vacation of 2nd Avenue South at market value.  In 2005, the City Council approved the vacation of a portion of South 26th Street at no cost.  In 2009, City Council approved the vacation of the alley north of 2nd Avenue South at no cost.  In 2016, City Council approved the vacation of the alley south of 2nd Avenue South at market value.

Because a portion of South 26th Street was previously vacated at no cost, it would be recommended that the remaining portion of South 26th Street also be vacated at no cost.

 

Staff recommends City Council hold a public hearing and approve the vacation of a portion of South 26th Street at no cost.