Staff recommends the City Council hold a public hearing on the annexation. Upon completion of the hearing, staff recommends the City annex the petitioned property with the staff recommended conditions of approval. 

Knife River is intending to annex land they own adjacent to Shiloh and Hesper Roads, an area approximately 144 acres in size over three phases. Zone Change 1079 is being done concurrently, with predominantly commercial mixed-use zoning. Actual development of these lots outside the required annexation improvement will be done by future property owners.

IMEG Corporation, on behalf of Knife River Corporation, submitted a petition to annex land using the provisions of Section 7-2-4600, MCA. The property is located west of Shiloh Road and south of Shiloh Crossing Boulevard. The land being annexed is described as being: 
All situated in Section 15, Township 1 South, Range 25 East, P.M.M., Yellowstone County, Montana. Said annexation containing a total area of 144.46 acres net and gross, more or less.

The property is zoned A - Agriculture. This is not a zoning district recognized by the City. This annexation petition is being filed in conjunction with a Planned Neighborhood Development (Zone Change 1079) from Agriculture (A) to a combination of zoning districts, including Corridor Mixed Use 2 (CMU2), Mixed Residential 3 (NX3), and Parks and open space 1 (P1). 

It is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities. Staff finds the proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area must be located within Zone 1 or Zone 3 of the Limits of Annexation Map.
   • The Area is within Zone 1.
2. The City must be able provide adequate city services at a cost acceptable to the City within a time period mutually agreed to by the property owners requesting annexation and the City.
   • This is stipulated in the Annexation Agreement.
3. Existing or proposed public improvements within the area to be annexed must meet City standards.
   • This is stipulated in the Annexation Agreement.
4. All property owners within the area to be annexed must sign a Waiver of Right to Protest the creation of Special Improvement Districts.
   • The Waiver of Right to Protest the creation of Special Improvement Districts is included in the Annexation Agreement.
5. All residential property owners within the area to be annexed must create or join an existing park maintenance district.
   • This annexation will create or join a park maintenance district as determined by the Parks Department.
6. Residential densities planned for development within the area to be annexed must meet an overall average minimum density of primary dwelling units per acre as per the current City of Billings Growth Policy or similar planning documents.
   • While no immediate development is being proposed, the annexation and associated zone change will allow for mixed-use and medium to high density residential development in the future.
7. The proposed land use within the area to be annexed must conform to the goals of the Adopted City of Billings Growth Policy.
   • Essential Investments:
     • Infill development and development near existing City infrastructure may be the most cost-effective.
     • Neighborhoods that are safe and attractive and provide essential services are much desired.
     • Mobility and Access (transportation choices in places where goods and services are accessible to all).
   • Prosperity:
     • Community investments that attract and retain a strong, skilled, and diverse workforce also attracts businesses.
   • Strong Neighborhoods;
     • Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools, and public gathering spaces foster health, goodwill and social interaction.
     • Neighborhoods that are safe and attractive and provide essential services are much desired. Implementation of the Infill Policy is important to encourage the development of underutilized properties.

Departmental Response: City and County Departments were given the opportunity to comment on this annexation. City departments responded favorably and detailed responses are provided below. The County Public Works Department did not respond to this annexation request. 

• Water and Sanitary Sewer: Public water and sanitary sewer service is available to the property proposed for annexation. The Developer will be responsible for the installation of 16’ water main extending from the roundabout at Shiloh Road. The Developer will be responsible for the design and construction of a sanitary sewer main and a water main in Hesper Road along the frontage of the above-described property.
• Storm water: Any development will be compliant with the adopted Stormwater Management Manual. 
• Transportation: The Developer Tract will be accessed from Shiloh Road and Hesper Road. The public right-of-way along Shiloh Road and Hesper Road will be dedicated to the City of Billings. 
• Fire Stations: The Billings Fire Department currently serves the subject property through the Billings Urban Fire Service Area agreement.  The Billings Fire Department will continue to serve the property upon annexation.  As this and additional annexations are built out, additional fire department resources will be needed to meet and maintain our high level of service due to the increased call volume and burden on our department these annexations create.  The nearest fire station is Station #5, 3.3 Miles at 7 minutes driving time to the subject property.
• Parks: Parkland is being required as part of concurrent zone change, with 3.04 Acres being provided.
• School facilities: The school district did not raise any special requests or concerns during their review of this proposal. 

General City Services: These are the City services that are provided to all residents and businesses in the City, such as police and fire protection, street and storm drain maintenance, and garbage collection and disposal. The service providers that responded did not object to the annexation of this property, however the Fire Department in its comments above did note its concerns as additional property is annexed into the City.

• Transit: The annexed area is not directly serviced by a MET Route. The nearest route, MET Route currently operates through the intersection Gabel Road & Hesper Road, which is the nearest accessible point to the property. This intersection is approximately 0.51 miles from the proposed annexation location via roadway. MET does anticipate that fixed-route would operate in the area when more significant commercial and/or residential growth necessitated transit service in the area. 
• Police: This proposed development is adjacent to established city limits and will not require an adjustment in schedules or staffing at this time. There is sufficient ingress/egress to the area. Despite recent passage of a safety levy, continued annexation and development will affect our ability to deliver service without commensurate resources.
• Public Utilities: The Public Works-- Distribution and Collection Division had no concerns with the annexation request.
• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no concerns with serving the property.
• Public Works-Solid Waste: The Solid Waste Division had no concerns with annexing the property, but pointed out that State Law allows the property owner to choose what garbage hauler may service the property after it is in the City. 
• Ambulance Service: The City does not provide ambulance service, however it does dictate the level of service provided by American Medical Response (AMR). By City ordinance, 90% of ambulance calls must be answered within 8 minutes. Depending on factors at any given time such as traffic and congestion, this property may be within the area of acceptable response time.
• Legal and Finance: General Fund services, such as the Legal and Finance Departments should not be negatively impacted by this annexation.
• Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve the property whether it is in the City or the County. The Planning Division staff supports the annexation because it is consistent with the Limits of Annexation map and the criteria of the annexation policy has been met. Further, coordination with other departments does not raise concerns that cannot be mitigated. 

These decisions have a cumulative effect. Therefore, City Council is being provided with a recommendation of approval.

PHASING
The annexation will be applied in three phases, as described in the legal description and exhibit. Public improvements associated with these phases shall be constructed or monetarily guaranteed prior to opening the phase.

This application has no financial impact on the Planning Division budget.

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing, advertise the hearing, and post the property with information on the annexation petition and public hearing. Notice of the public hearing was posted on the property and was advertised in the Yellowstone County News.

The City Council may

• Approve,
• Conditionally approve or
• Deny the petition for annexation.

Denial of the petition will mean the City Council cannot consider other agenda items related to this property regarding the development agreement and ward boundary ordinance. On March 2, 2026, the annexation petition was submitted to the Planning Division by the owner's agent.  On April 27, 2026, the City Council is scheduled to take action on the petition. On April 10, 2026 the applicant's agent requested delay of the hearing to May 11, 2026. The request for delay is attached to this staff report. 

Action tonight approves the annexation plan in whole, however, the annexation is also phased. The annexation approval does not annex immediately all involved parcels, but rather identifies two phases for annexation. Phase 1 consists of a portion of Lot 1 of Long Subdivision, including all adjacent rights of way. Phase 2 and Phase 3 conditions of approval are part of the associated Annexation Agreement.