Billings council approves $1.5 million purchase of airport‑adjacent land despite appraisal concerns

The Billings City Council approved the final acquisition of about 123 acres from the Morledge Family LLC for $1,500,000, a purchase the airport says is needed to protect airspace at the end of the recently extended runway and to preserve future aeronautical development options.

Airport staff explained the negotiated price and the need to secure land at the northern end of Runway 725 to avoid incompatible development. Airport director Jeff said: "This property is very important to the airport in that it's at the end of the newly extended Runway 725, so it offers the protection of the airspace from future development." Legal staff and the city administrator told council the transaction is legal under a 2021 resolution that allows paying over appraised value in specific public‑purpose cases.

Council member Neese objected, saying, "I I think this is, we're paying $355,000 over appraisal, 31% over," and moved to reject the seller's offer and make a counteroffer at the appraised value. Staff replied that negotiations produced a firm seller price of $1,500,000 and that FAA discretionary grants could reimburse up to 95% of the appraised value if funding is available. City administrators clarified the purchase will be paid from airport‑generated revenue and not the city's general fund.

A substitute motion to approve the acquisition as presented was seconded and carried; Council member Neese recorded the lone dissenting vote. Council and staff said the purchase is intended to prevent future encroachment and to limit potential operational constraints (such as loss of instrument approaches) if incompatible development occurred near the runway.

Next steps: complete closing and pursue FAA reimbursement where eligible.