Belgrade Lounge demolition scheduled; city eyes east-side parking but BNSF lease and remediation complicate timeline

Catherine, the city’s economic development director, told the committee that the Belgrade Lounge building is now owned by BNSF and that environmental remediation and utility relocation have progressed to the point that a demolition permit has been pulled. “They are scheduled to begin demolition of this building on August 10,” she said, but added the work will proceed in two phases because of a shared wall and required structural analysis.

Staff described a planning concept to lease about 1.86 acres from BNSF for a downtown east‑side parking lot to help offset parking lost to upcoming Main Street and Broadway improvements and to support the new Belgrade Library. Catherine warned that BNSF will not negotiate lease terms until after the lounge is removed, that environmental (phase 1/phase 2) assessments will be required, and that construction will need engineering and stormwater design—adding both time and cost to the timeline.