HomeMy WebLinkAboutOrdinance No_1773, 99-year Ground Lease with HRDCPage 1 of 1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Greg Sullivan, City Attorney
Chris Kukulski, City Manager
SUBJECT: Final Adoption of Ordinance 1773: An Ordinance of the City Commission
of the City of Bozeman, Montana authorizing the City Manager to enter into a 99-year ground
lease with the Human Resources Development Council, Inc. for the lease of a .539-acre parcel
for the purposes of developing a public transportation storage and repair facility.
MEETING DATE: October 5, 2009
AGENDA ITEM TYPE: Action (NOTE: a 2/3 vote of the Commission is required by state law.
Thus, four Commissioners must vote in the affirmative.)
RECOMMENDATION: Finally adopt Ordinance 1773.
BACKGROUND: On September 14, 2009 you gave provisional adoption to Ordinance 1773.
Your action tonight is to give final approval to Ordinance 1773. Should you do so, your approval
will allow City Manager Chris Kukulski to sign the lease on November, 4, 2009.
If you have any questions regarding this final adoption please refer to your staff report from September 14, 2009.
FISCAL EFFECTS: Entering into this lease will result in the City receiving cash (or
improvements to the property of equivalent value) equal to the appraised value of the leased
land. The appraised value of the unimproved land is $6.00 per square foot. Based on this appraisal, the .539 acre (23,478.84 sq.ft.) parcel is valued at $140,873.04. At the end of the lease term, any improvements on the leased land will revert to the City, although that is expected
to be decades beyond the useful life of what is constructed today.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Ordinance 1773
Report compiled on: September 30, 2009
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