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HomeMy WebLinkAboutEstablish intent to sell 0.05 acre tract of land to Northwestern Energy.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian Heaston, Project Engineer Debbie Arkell, Director of Public Services SUBJECT: Establish intent to sell 0.05 acre tract of land from the city’s Lower Yards property to Northwestern Energy. MEETING DATE: June 6, 2011 AGENDA ITEM TYPE: Action Item RECOMMENDATION: 1) Make a motion declaring those portions of the Lower Yards property highlighted on the attached preliminary certificate of survey unnecessary for the conduct of city business. PROPOSED MOTION: Having considered the information presented by Staff, I move that the Commission finds the NorthWestern Energy pipeline expansion is consistent with furthering the public interest, and that the subject 0.05 acre area, along with the area proposed to be encumbered by an access easement, as shown on the attached preliminary certificate of survey, is unnecessary for the conduct of city business. NOTE: Per Section 2.050.040, Bozeman Municipal Code, a two-thirds vote of all members of the commission is necessary. AND 2) Make a motion authorizing city staff to complete steps necessary to sell and transfer those portions of the Lower Yards property declared unnecessary for the conduct of city business to NorthWestern Energy for the purpose of expanding and upgrading their existing gas transmission facilities neighboring the Lower Yards property. PROPOSED MOTION: Having found that the subject 0.05 acre area, and the area proposed to be encumbered by an access easement of the city’s lower yards property, as shown on the attached preliminary certificate of survey, is unnecessary for the conduct of city business, I move staff be directed to complete the steps necessary to negotiate a sale and transfer of the property and easement to NorthWestern Energy for the purpose of expanding and upgrading their existing gas transmission facilities and return to the Commission an ordinance authorizing the City Manager to execute a Purchase and Sale Agreement for same. 280 BACKGROUND: NorthWestern Energy (NWE) is upgrading its gas transmission facilities in the vicinity of Rouse Avenue and Griffin Drive. The upgrades call for expansion of Gate Station No. 1, which adjoins the Lower Yards property and fronts North Rouse Avenue. To accommodate this expansion, NWE proposes to acquire a small tract of land from the city, approximately 0.05 acres (2,169 square feet) in area, along with an access easement. The new tract of land will contain an above-ground valve assembly and inspection/maintenance port, known familiarly as a “pig launcher”. The access easement will provide legal and physical access to the new tract through the Lower Yards property. Title 2, Chapter 5, Sections 3 through 7, Bozeman Municipal Code (§2.05.030 - §2.05.070 BMC) regulates the sale of city property: 2.05.040 Requirements for certain sales. When the City Commission, after public hearing, has determined by a two-thirds vote of all the members that any real property owned by the city is not needed for public use, or that the public interest may be furthered, the City may sell such property by bid, auction with reserve, or negotiated sale or exchange, subject, where appropriate, to a minimum price established through an appraisal that certifies the value of such property. Notice of sale, exchange, or auction shall be published as provided in MCA 7-1-4127. The city may terminate the sale procedures used at any time and may reinitiate the same or different procedures at a later date. In addition, Section 2.11 of the City Charter requires the City Commission to act by ordinance to convey city property. Staff has had numerous meetings regarding this proposal. We believe the NWE pipeline expansion is consistent with furthering the public interest and find the land proposed for acquisition/easement is not necessary for the conduct of city business. The property requested to be purchased is 0.05 acre, or 2,169 square feet in size. The property is 30-feet wide, 63- to 80-feet long, and is adjacent to property owned and used by NorthWestern Energy for gas distribution. The Public Services Department planned to landscape the subject property in conjunction with recent improvements on the property for the sand storage building. There is a 25-foot front yard setback adjacent to North Rouse Avenue, and the improvements proposed by NorthWestern Energy will be outside of this setback. They understand that the 25- foot front yard setback must be landscaped per the Uniform Development Code. The Public Services and Parks Departments have no proposed use for the subject property, and have determined that the sale of this small portion of property and the easement encumbrance will not impede future city use of the remainder of the land. A letter from NWE further detailing their proposal is attached to this memorandum. A preliminary certificate of survey (COS) is also attached. Staff requests that the Commission consider the general size and location of the highlighted areas depicted on the COS in their declaratory finding with the understanding that the exact boundary of these areas is subject to minor modification upon finalization of the proposed sale and transfer. UNRESOLVED ISSUES: If the Commission votes in the affirmative to declare the proposed land area unnecessary for the conduct of city business and consistent with furthering the public interest (according to Title 2, Chapter 5, BMC), the following items will be completed: 281 · Complete a land appraisal to determine the monetary value of new parcel and easement areas. NWE and COB to mutually agree on appraiser with NWE covering the expense of appraisal services. Administrative Staff Action. · Prepare a preliminary certificate of survey for review/approval by city staff. NWE covers land surveying expense. The purpose of the survey is to create a utility site, which is exempt from review as a subdivision. Administrative Staff Action. · Provisionally adopt an ordinance, that once effective, authorizes the City Manager to sign a Purchase and Sale Agreement with NWE. City staff will prepare the ordinance which, by reference, will include the specific terms of the sale. · Finalize certificate of survey and record at Gallatin County Clerk & Recorder. NWE covers land surveying expense. Administrative Staff Action. · Prepare a deed to transfer title of new parcel from City of Bozeman to NWE. Acquire monetary compensation from NWE per the certified appraised value of the land/easements. Record the deed at the Gallatin County Clerk & Recorder on, or after, the effective date of the ordinance authorizing Purchase and Sale Agreement execution. NWE to cover deed expenses. Administrative Staff Action. · Submit a preliminary sketch plan/certificate of appropriateness application for review/approval to address zoning regulations. The site is currently zoned M-1 and a utility site of this nature is a principal permitted use within the M-1 district. NWE responsible for making application and covering expenses. Administrative Staff Action. · NWE constructs project. ALTERNATIVES: As recommended by the Commission. FISCAL EFFECTS: Monetary compensation will be received from NWE at a value determined by certified appraisal of the property. The payment may be applied to any fund the Commission chooses to appropriate it to. All expenses covered by NWE. Attachments: (1) Information packet from NWE (Official letter of request, Exhibit depicting above-ground piping schematic of “pig launcher”, Exhibit depicting potential utility pipeline easement) (1) preliminary Certificate of Survey Report compiled on: May 19, 2011 282 283 284 285 286 287