Staff recommends that the City Council approve the Annexation Agreement with JTL Group, Inc., for Lots 1, 2, and 4A within Long Subdivision.

City Council will consider annexation of parcels within Long Subdivision on May 11, 2026, along with an Annexation Agreement outlining required public improvements. The agreement requires the developer to construct and fund all necessary infrastructure, including streets and utilities, dedicate right-of-way, pay traffic mitigation costs, and waive the right to protest future Special Improvement Districts. It also includes indemnification provisions due to the site’s proximity to the proposed City water storage reservoir. The annexation is supported by existing infrastructure and is not expected to have significant financial impacts to the City.

At the May 11, 2026 City Council meeting, Council will consider annexation of parcels located within Long Subdivision.  Typically, as a condition of approval of annexation, the property owner enters into an Annexation Agreement with the City of Billings outlining necessary public improvements.  The Annexation Agreement outlines the off-site improvements necessary for development including right-of-way dedications needed, street access to the site and construction of water, sanitary sewer and storm utilities.  The Annexation Agreement provides for City-required off-site improvements should the property be annexed and developed without a subdivision plat.  As this development is adjacent to the proposed City water storage reservoir, the agreement includes a section of warning and indemnification of the City concerning various potential concerns as a result of being adjacent to such a reservoir.

Furthermore, the Annexation Agreement contains a waiver of right to protest Special Improvement Districts that does not have an expiration date.  At the time of development, the Developer will be responsible for constructing, at their expense, all necessary water, sewer, storm and street infrastructure to serve the parcels, as well as pay the appropriate costs for traffic mitigation based on a traffic study and City system development fees.

This annexation is served by an existing City street network and utilities.  There are no significant financial impacts to the City associated with this annexation.  Upon development of the annexed parcels, the Developer will be responsible to extend streets and utilities as needed to serve the Developer parcels and to pay associated system development fees and costs associated with traffic mitigation identified in the traffic study.

City Council may:

• Approve the Annexation Agreement with the Developer; or
• Not approve the Annexation Agreement.  If the agreement is not approved, Developer parcels will not be annexed and will not receive City services.