The Powell City Council has spent weeks debating whether to let a pair of lots leave the city and become a part of rural Park County. It now appears they’ll split the difference — letting one parcel go while the other stays in town.

Owner Mike Birdsley asked to deannex his properties at the far end of East Seventh Street, partially to save on costs, but councilors cited concerns about the precedent and balked at the request last month.

At a Dec. 18 meeting, Councilman Troy Bray was the only member to support deannexation, but the council agreed to postpone a final decision.

In the run-up to last week’s meeting, Birdsley offered a compromise: If the council would agree to let go of his easternmost parcel, which is basically undeveloped, he would agree to withdraw his request to deannex the developed, western parcel and leave it in city limits; that western lot holds a set of storage units, owned by Birdsley’s Dash Storage business.

In an interview, Birdsley said the idea just seemed to make sense.

“Nothing wrong with meeting in the middle,” he said.

The proposal was formally presented at a Jan. 5 meeting and the council members voted 4-1 to endorse the deal.

“For me, it feels like a pretty decent compromise,” Councilman Zane Logan said, adding later, “I see no reason not to go that way.”

There was some disagreement: Councilman Tim Sapp voted no, and while Bray voted in favor of the deal, he again said that the body should simply allow both to leave the city.

“He [Birdsley] asked for both lots to be deannexed for a reason; there isn’t a legal reason why we shouldn’t,” Bray said.

Birdsley told the council that his request was in part about money. Land within city limits is subject to an additional property tax, but more significantly, property owners must follow more stringent requirements when they develop a vacant parcel. As an example, Birdsley said he had to install roughly $35,000 worth of curb and gutter when he built the Dash Storage units on the western lot — something he wouldn’t have to do in rural Park County.

At a November meeting, Councilman Steve Lensegrav voiced some concern about the prospect of one lot having curb and gutter while the adjoining lot would not if it were deannexed. Lensegrav followed up in December, questioning why the city would be willing to let the properties out of the city.

“Why are we OK with saying, ‘Yeah, go ahead, we’re going to deannex you …,’” he asked his colleagues, “because we get nothing from that.”

In support of his request, Birdsley noted that there’s currently no city sewer service to the property; his engineer said it could potentially cost a few hundred thousand dollars to put in a lift station. Birdsley also noted that he’d been upfront with city staff about wanting to deannex when he started developing the western lot.

Based on his reading of the minutes of the meetings that were held between Birdsley and city staff, the landowner “had a deal two years ago to deannex,” Councilman Bray said last week, “and the council has failed him.” 

The city’s minutes clearly show that Birdsley intended to deannex both lots from the get go. Birdsley also said he was told his request wouldn’t be an issue, but, as Lensegrav noted, there’s nothing in the minutes that guaranteed he could do so.

If the proposed compromise passes a final reading before the council, the city will shrink by about 5.82 acres, with Powell’s eastern border moving about 460 feet west.

While the eastern lot would no longer be a part of the city, it will continue to contain a right of way for a future city street or county road.

The council is expected to vote on the deannexation ordinance for a third and final time at their Monday meeting.