Staff recommends that after holding a public hearing, the City Council approve a Resolution to donate City real property to Whisper Ridge Subdivision Phase II Homeowners Association and the associated grant deed.

Whisper Ridge Subdivision, located north of Rimrock Road east of 54th Street West, was subdivided in 2012 and created 26 lots.  The current subdivision plat is attached for reference.  The attached Subdivision Improvements Agreement (SIA) noted that the subdivision will be constructed in two separate phases.  Phase I included Lots 1 and 2, Block 1 and Lots 1 and 2, Block 3 and has been constructed.  The SIA prescribed that all storm water storage would be located on City of Billings' right-of-way and would be maintained by the City.  The storm water storage right-of-way was platted as Lot 7, Block 2 and deeded to the City at no cost at the request of the City.  

The developer wants to proceed with construction of phase II, which includes the remaining lots within Whisper Ridge Subdivision.  The developer is proposing to relocate property lines of Lots 1, 2, 3, 4, and 7, Block 2 through an exempt subdivision plat.  See attached Amended Plat of Lots 1, 2, 3, 4, and 7 of Block 2, Whisper Ridge Subdivision.  In order to complete the exempt plat, it becomes necessary to donate Lot 7 to the homeowner's association.  The homeowner's association has been created and is called Whisper Ridge Subdivision Phase II Homeowner's Association.  Maintenance of the storm water facility located on proposed Lot 1A of the subdivision would be performed by the Homeowners Association.  The developer submitted an amended SIA that forms a homeowner's association for the lots in Phase II and assigns the maintenance of the storm water facility to the homeowner's association to be considered at this meeting.  The proposed Lot 1A would have an easement over it that would allow the City to maintain the storm water facility in case the homeowner's association ever ceased to maintain the facility.  In this case, the City would create a maintenance district in order to fund the maintenance.  The concept of the subdivision maintaining the storm water facility that serves the subdivision is consistent with newly created subdivisions.  

In summary, this action will remove Lot 7 from City ownership, remove City storm water maintenance functions, and require maintenance of the facility by the subdivision homeowner's association, consistent with current subdivision and storm water regulations.  At the May 13, 2024 City Council meeting, City Council approved the resolution of intent and set a public hearing for June 10, 2024.  At this meeting, Council may act to donate the property to a private entity and make a finding that the property is no longer necessary for City business or that the public interest may be furthered by the donation in accordance with Ordinance 23-5864 Amending BMCC 22-900 Sale, Exchange, or Donation of City Real Property and approve a grant deed.

City Council may:

• Approve the Resolution to donate City real property in Whisper Ridge Subdivision and a grant deed; or,
• Not approve the Resolution.  This would require the developer to develop the original phase II in Whisper Ridge Subdivision.  The City would be required to maintain the stormwater facility.  

Donating Lot 7 to the Whisper Ridge Subdivision Phase II Homeowners Association will allow the association to maintain the stormwater facility.  Transferring ownership of Lot 7 would save the City money by eliminating the City maintenance responsibility.  Also, as City-owned land, there are no taxes currently paid, but if the land is donated back to the HOA, taxes would be paid for the property.