HomeMy WebLinkAbout07-13-20 City Commission Packet Materials - C7. LoE w Big Sky Appraisal Services Inc for Appraisal of FS1
Commission Memorandum REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Letter of Engagement with Big Sky Appraisal Services, Inc. for the
Appraisal of Fire Station 1 located at 34 North Rouse Avenue, Bozeman,
Montana.
MEETING DATE: July 13, 2020
AGENDA ITEM TYPE: Consent
RECOMMENDATION:
Ratify the City Manager’s signature on the Letter of Engagement with Big Sky Appraisal
Services, Inc. for the appraisal of Fire Station 1 located at 34 North Rouse Avenue,
Bozeman, Montana.
BACKGROUND:
City staff is conducting due diligence on the Fire Station 1 site in downtown
Bozeman. Once the Public Safety Center is complete in early 2022, all personnel,
equipment and operations currently housed at Fire Station 1 will be relocated to new
facilities on North Rouse Avenue as tenants of the new Public Safety Center.
As was indicated at the outset of the Safety Center project, funds received from
the eventual sale of Fire Station 1 will be allocated to the Safety Center project. The
Bozeman Public Safety Center Project budget contains a $2.5 million dollar cash
placeholder for funds received from the sale of Fire Station 1. An initial step in the sale
of public property is governed by Bozeman Municipal Code (BMC) Section 2.06.870.
BMC Sec. 2.06.870. - Authorization to sell and exchange city property.
A. The city commission has the power to sell, trade, or exchange any real or
personal property, however acquired, belonging to the city that is not
necessary to the conduct of city business or the preservation of its property.
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B. Whenever the city purchases equipment, as provided in MCA 7-5-4301
through 7-5-4310, city equipment that is not necessary to the conduct of the
city business may be traded in as part of the purchase price or may be sold at
public auction, as provided in MCA 7-5-4310, in the discretion of the city
manager.
C. Any sale, trade, or exchange of real or personal property must be
accomplished under the provisions of this division. In an exchange of real
property, the properties must be appraised and an exchange of city property
may not be made unless property received in exchange for the city property
is of an equivalent value. If the properties are not of equivalent values, the
exchange may be completed if a cash payment is made in addition to the
delivery of title for property having the lesser value.
D. If the city owns property containing a historically significant building or
monument, the city may sell or give the property to nonprofit organizations
or groups that agree to restore or preserve the property. The contract for the
transfer of the property must contain a provision that:
1. Requires the property to be preserved in its present or restored
state upon any subsequent transfer; and
2. Provides for the reversion of the property to the city for
noncompliance with conditions attached to the transfer.
(Ord. No. 1658, § 1(2.05.030), 1-17-2006)
UNRESOLVED ISSUES: None
ALTERNATIVES: As proposed by the City Commission
FISCAL EFFECTS: The cost for the appraisal is $4,000. Economic Development funded
the appraisal from a portion of its unspent FY20 budget.
EXHIBITS:
1) Letter of Engagement;
2) Limiting Conditions and Assumptions Disclaimer;
3) Certification Statement;
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4) Qualifications; and
5) Big Sky Appraisal Services, Inc. Invoice # 1
Report compiled on: 07-01-20
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