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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 150 151 152 153 154 155 156 157 158 159 160 161 162