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Item 2.c.
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| Date: | 11/14/2022 |
| Title: | South Surface Parking Lot off North 27th Street between 1st Ave N and 2nd Ave N |
| Presented by: | Kevin Iffland, Assistant City Administrator |
| Department: | City Hall Administration |
| Presentation: | Yes |
| Legal Review | No |
RECOMMENDATION
Staff recommends approval of all resolution on the sale, disposal or leasing of the city properties as listed.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Staff is recommending the potential sale of four city properties:
Park 1 ground level retail spaces
Current City Hall
2 surface parking lots off N 27th street between 1st Ave North and 2nd Ave North
City Ordinance 22-900 governs the sale, exchange, or donation of city real property:
Sec. 22-902. - Sale, exchange or donation of city real property.
(1) Subject to the provisions of subsections (a) and (b) below, the city council may sell, exchange or donate any real property belonging to the city, including property held in trust for a specific purpose, by a resolution passed by six (6) of the city council members present. The city council shall advertise for competitive bids on any real property prior to sale, exchange or donation. The city council shall have the authority and discretion to select the bid that is in the best interest of the city, conditionally accept a bid or it may reject any and all bids. Other local, state or federal governmental entities expressing interest shall be exempt from competitive bidding, and the city council may sell, exchange or donate specific real property to such governmental entities without a competitive bidding process. However, the council shall proceed as provided in subsections (a) and (b) and approve the Resolution described above when considering the sale, exchange or donation to another governmental entity.
In its discretion, the city council may consider and impose deed restrictions relating to the use or subsequent sale of the property as a condition of the sale, exchange or donation of land.
Prior to selling exchanging or donating said real property, the city administrator or his/her designee shall:
(a) Publish notice in the legal newspaper of the city of the intention to sell, exchange or donate such property and requesting competitive bids prior to the sale, exchange or donation of such lands, giving the public the opportunity to be heard regarding such action. Said notice shall be published no less than fifteen (15) days in advance of the date of the public hearing.
(b) Notify by mail all property owners within three hundred (300) feet of the exterior boundaries of the real property subject to sale, exchange or donation fifteen (15) calendar days in advance of the time, date, place of the public hearing and the existing and proposed use.
(2) Leases of city-owned real property shall be excluded from this section and will be approved in the same manner as all other contracts submitted to the city for approval.
(3) The city administrator is hereby authorized to establish procedures to implement this section including establishment of sale criteria or conditions, a minimum sale price or exchange value and shall have discretion to develop individualized marketing plans to maximize land value and promote city land use policies. The city administrator is authorized to the prepare all appropriate documents for signature by the mayor.
Legal Ads were placed in the Yellowstone County News on November 4th and 11th. Property owners within 300’ of properties were mailed notification of the potential sale, disposal, or lease on November 4th.
The approval of the resolutions is first step in the process to make properties available if City Council approves. The next step will be to advertise for competitive bids on these properties. Once the competitive bid process is complete the results will be brought to City Council with staff recommendation, for review and approval.
City staff has been working with NAI Properties on determining the best potential for the city owned properties, while considering development opportunities in the downtown area, maximizing the value, and promoting city land use policies. These elements will be used to determine the parameters for the bid process.
Park 1 retail - the City's Parking Division has owned and operated the Park 1 Parking garage at 2912 3rd Ave North. There are currently 6 retail locations under the parking structure. Four spaces are currently occupied: Billings Police Crime Prevention Center, Yellowstone County Self Help Law, Volunteers of America, and Budget Insta Print. The Crime Prevention Center will be moving to the New City Hall at 316 North 26th Street. There are current leases for the other three business with varying expirations. The Initial market analysis is indicating legally separating the units, providing limited demolition, and selling the individual units may be the best course of action.
City Hall (210/220 North 27th Street) - the City is in the process of moving operations from this location to 316 N 26th Street when build out is completed. Once build out is completed there will not be a need for the existing City Hall space for city operations. Several options may be considered to maximize potential for listing and selling this space to include the parking garage structure.
Surface Parking Lots - the City's Parking Division owns two surface parking lots off North 27th Street between 1st Ave North and 2nd Ave North. The lots are located between Jakes Restaurant and Burger Dive (South Surface Lot) and the Burger Dive and building on the corner of N 27th and 2nd Ave North (North Surface Lot). The lots may have potential interest to developers for redevelopment of this area.
Park 1 ground level retail spaces
Current City Hall
2 surface parking lots off N 27th street between 1st Ave North and 2nd Ave North
City Ordinance 22-900 governs the sale, exchange, or donation of city real property:
Sec. 22-902. - Sale, exchange or donation of city real property.
(1) Subject to the provisions of subsections (a) and (b) below, the city council may sell, exchange or donate any real property belonging to the city, including property held in trust for a specific purpose, by a resolution passed by six (6) of the city council members present. The city council shall advertise for competitive bids on any real property prior to sale, exchange or donation. The city council shall have the authority and discretion to select the bid that is in the best interest of the city, conditionally accept a bid or it may reject any and all bids. Other local, state or federal governmental entities expressing interest shall be exempt from competitive bidding, and the city council may sell, exchange or donate specific real property to such governmental entities without a competitive bidding process. However, the council shall proceed as provided in subsections (a) and (b) and approve the Resolution described above when considering the sale, exchange or donation to another governmental entity.
In its discretion, the city council may consider and impose deed restrictions relating to the use or subsequent sale of the property as a condition of the sale, exchange or donation of land.
Prior to selling exchanging or donating said real property, the city administrator or his/her designee shall:
(a) Publish notice in the legal newspaper of the city of the intention to sell, exchange or donate such property and requesting competitive bids prior to the sale, exchange or donation of such lands, giving the public the opportunity to be heard regarding such action. Said notice shall be published no less than fifteen (15) days in advance of the date of the public hearing.
(b) Notify by mail all property owners within three hundred (300) feet of the exterior boundaries of the real property subject to sale, exchange or donation fifteen (15) calendar days in advance of the time, date, place of the public hearing and the existing and proposed use.
(2) Leases of city-owned real property shall be excluded from this section and will be approved in the same manner as all other contracts submitted to the city for approval.
(3) The city administrator is hereby authorized to establish procedures to implement this section including establishment of sale criteria or conditions, a minimum sale price or exchange value and shall have discretion to develop individualized marketing plans to maximize land value and promote city land use policies. The city administrator is authorized to the prepare all appropriate documents for signature by the mayor.
Legal Ads were placed in the Yellowstone County News on November 4th and 11th. Property owners within 300’ of properties were mailed notification of the potential sale, disposal, or lease on November 4th.
The approval of the resolutions is first step in the process to make properties available if City Council approves. The next step will be to advertise for competitive bids on these properties. Once the competitive bid process is complete the results will be brought to City Council with staff recommendation, for review and approval.
City staff has been working with NAI Properties on determining the best potential for the city owned properties, while considering development opportunities in the downtown area, maximizing the value, and promoting city land use policies. These elements will be used to determine the parameters for the bid process.
Park 1 retail - the City's Parking Division has owned and operated the Park 1 Parking garage at 2912 3rd Ave North. There are currently 6 retail locations under the parking structure. Four spaces are currently occupied: Billings Police Crime Prevention Center, Yellowstone County Self Help Law, Volunteers of America, and Budget Insta Print. The Crime Prevention Center will be moving to the New City Hall at 316 North 26th Street. There are current leases for the other three business with varying expirations. The Initial market analysis is indicating legally separating the units, providing limited demolition, and selling the individual units may be the best course of action.
City Hall (210/220 North 27th Street) - the City is in the process of moving operations from this location to 316 N 26th Street when build out is completed. Once build out is completed there will not be a need for the existing City Hall space for city operations. Several options may be considered to maximize potential for listing and selling this space to include the parking garage structure.
Surface Parking Lots - the City's Parking Division owns two surface parking lots off North 27th Street between 1st Ave North and 2nd Ave North. The lots are located between Jakes Restaurant and Burger Dive (South Surface Lot) and the Burger Dive and building on the corner of N 27th and 2nd Ave North (North Surface Lot). The lots may have potential interest to developers for redevelopment of this area.
STAKEHOLDERS
Stakeholders regarding the sale, disposal or lease of these properties include the City of Billings, downtown area businesses, developers.
ALTERNATIVES
City Council may:
- Approve; the resolution(s) for the sale, disposal or lease of City Property(s) or,
- Not Approve the resolution(s) for the sale, disposal or lease of City Property(s), staff would welcome any direction if certain parcels are not approved for sale, disposal or lease.
FISCAL EFFECTS
Sale of City Hall would help off set financing needed for the buildout of the new city hall at 316 N 26th Street. The Parking Division will benefit from the sale of their properties and will allow them to build/maintain a deferred maintenance fund for anticipated repairs on existing parking structures and properties. Selling of these for potential development or revitalization in the downtown area will provide additional economic impact moving properties from tax-exempt status.
SUMMARY
These are four properties that have been immediately identified to start the process of selling. A city property initiative is also being moved forward to identify additional properties that would have potential for selling.