City applies to BNSF for lease as part of a proposed downtown parking plan

City staff told the committee the city has applied to BNSF for a land lease east of the Belgrade Lounge to build a parking lot to better serve the downtown area. Catherine explained the lease process is likely to be slow; BNSF has indicated it prefers to see the Belgrade Lounge fully torn down before advancing a land lease and the city would need to complete surveys and Phase 1 (and potentially Phase 2) environmental site assessments before construction.

Catherine cautioned the city could inherit responsibility for any contamination on leased land at the end of a long-term lease, so thorough environmental research will be part of the process. She said staff envision engineering the lot with stormwater management and other public improvements if the lease and assessments progress.