Regular 3.
Regular City Council Meeting
- Meeting Date:
- 08/10/2020
- TITLE
- BOC Property Purchase
- PRESENTED BY:
- Iverson Jessica
- Department:
RECOMMENDATION
Staff recommends approval by Council to enter into a contingent buy/sell agreement with seller.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The Billings Operations Center consists of six buildings located on approximately 16 total acres near the intersection of Midland Road and South Billings Blvd. The BOC complex was completed in 2004 to meet the City's needs at the time, but operational needs are growing as the City expands. With the exception of 2.2 acres adjacent to the newly expanded evidence facility, the property is entirely developed. To accommodate future growth, the City will need additional property to expand the facility and acquiring property directly adjacent to existing facilities is more economical than developing a separate site.
The subject property is located at 6014 South Billings Blvd and consists of approximately 20 acres of agricultural land bordering the BOC's south property line. The property also includes a house and three accessory buildings: garage, shed, and shop building. The property has three different road access points on S Billings Blvd, Songbird Dr, and Maggie Ln.
This property is the most feasible option for future growth of the BOC facilities. City staff has negotiated with the sellers pursuant to the variance to Resolution 93-16740 approved by Council on July 13, 2020. The asking price was set at $2.5 million, however after negotiations, the seller has agreed on a sale price of $2.1 million with closing costs split between buyer and seller.
If council approves the terms of the buy/sell agreement, then the City will enter into a contingent binding agreement with the sellers. Staff will then initiate the appraisal and investigation portion of the purchase process.
The subject property is located at 6014 South Billings Blvd and consists of approximately 20 acres of agricultural land bordering the BOC's south property line. The property also includes a house and three accessory buildings: garage, shed, and shop building. The property has three different road access points on S Billings Blvd, Songbird Dr, and Maggie Ln.
This property is the most feasible option for future growth of the BOC facilities. City staff has negotiated with the sellers pursuant to the variance to Resolution 93-16740 approved by Council on July 13, 2020. The asking price was set at $2.5 million, however after negotiations, the seller has agreed on a sale price of $2.1 million with closing costs split between buyer and seller.
If council approves the terms of the buy/sell agreement, then the City will enter into a contingent binding agreement with the sellers. Staff will then initiate the appraisal and investigation portion of the purchase process.
ALTERNATIVES
City Council may:
- Approve offer, thus entering into a contingent agreement with the sellers to purchase the property at $2.1 Million; or
- Disapprove and direct staff to conduct further negotiations or discontinue pursuing this purchase.
FISCAL EFFECTS
The cost of the property is not budgeted in FY21, however financial options will be presented by staff.
Appraisals and inspection/investigation costs are estimated at $30,000.
Removal of the existing buildings is estimated at $50,000.
Purchase of the land is a capital investment in the future. Failure to obtain the property would limit growth opportunities at the current BOC site and could lead to unknown, potentially significant costs in the future.
Appraisals and inspection/investigation costs are estimated at $30,000.
Removal of the existing buildings is estimated at $50,000.
Purchase of the land is a capital investment in the future. Failure to obtain the property would limit growth opportunities at the current BOC site and could lead to unknown, potentially significant costs in the future.