Rapid City has entered into a land swap with the state Department of Transportation to create a new parking lot.

The city is trading land on Catron Boulevard plus $10,000 to acquire land from the state at the southeast corner of Fifth and Omaha streets that will be used for a parking lot when work begins sometime this year on the construction of a third level on the downtown parking ramp.

Long term, the lot, which will add about 50 new spaces, could be used for public parking or city employee parking.

The appraised value of the Fifth and Omaha parcel is about $157,000. The city's land, along Catron Boulevard about a half-mile west of Cambell Street, is worth about $147,185. The DOT will use the land when it widens Catron Boulevard. The city will also spend about $10,000 to cover the difference in value between the properties.

Initially, Alderman Tom Johnson said he would vote against the proposal because he believed he didn't have enough information. Johnson questioned whether the lot, which sits at a high-traffic intersection, could be put to a better use.

But other council members said the lot is too small to build a new business on it and would be even smaller with set-back requirements.

According to city staff, the city will acquire about two-thirds of the lot at Fifth and Omaha streets. Montana Dakota Utilities owns the other portion.

Alderman Sam Kooiker expressed frustration that the cost wasn't less, given that the city "out of the goodness of our hearts" gave right of way on Mountain View Road to the DOT a few years ago and is giving land to the Department of Corrections for $1.

"I believe we should be able to buy this lot for $1. I don't think we have the ability to do that, but out of principle, this really bothers me," Kooiker said.

Mayor Alan Hanks said Kooiker had a good point.

"Trust me, we tried to buy it for $1, but because of state statute, that isn't permissible," Hanks said. "I don't know who in their right mind was in the Legislature at the time, but one of the requirements when the state sells property is that they have to sell it at the appraised value."

Trading the city's Catron Boulevard property also involved modifying the city's lease agreement with the National Guard, according to staff.

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com