Regular 9.d.
City Council Regular Business Meeting
- Meeting Date:
- 06/22/2026
- TITLE
- Annexation 26-02, Ward Boundary Ordinance, 1st Reading and Public Hearing
- PRESENTED BY:
- Hunter Kelly
- Department:
- Planning & Community Services
Presentation:
No
Legal Review:
No
Project Number:
PZX-26-00046
RECOMMENDATION
Staff recommends the City Council hold a public hearing and approve this ordinance on first reading, adding recently annexed property to Ward 5.
EXECUTIVE SUMMARY
As part of the action to annex the Knife River properties in Long Subdivision, the City must include recently annexed land into Election Ward 5. This process must be completed by an ordinance.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
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:
Lot 1, Block 1, Long Subdivision, Less 0.57 acres for Shiloh Road, as recorded under Document No. 1755400, records of Yellowstone County, Montana, including all adjacent rights-of-way. Said annexation boundary containing 76.05 acres net and gross, more or less.
The property is zoned A - Agriculture. This is not a zoning district recognized by the City of Billings. 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).
Lot 1, Block 1, Long Subdivision, Less 0.57 acres for Shiloh Road, as recorded under Document No. 1755400, records of Yellowstone County, Montana, including all adjacent rights-of-way. Said annexation boundary containing 76.05 acres net and gross, more or less.
The property is zoned A - Agriculture. This is not a zoning district recognized by the City of Billings. 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).
Upon Council approval, this annexation requires a change in the boundaries of Ward 5. Two readings are required for this action.
FISCAL EFFECTS
This application has no financial impact on the Planning Division Budget.
STAKEHOLDERS
April 27, 2026 City Council Meeting.
This item was initially intended to be heard at the April 27th City Council Meeting. At the time of the meeting, the applicant requested a delay of the item to the May 11, 2026 City Council Meeting to allow additional time for the landowner and the City to finalize details surrounding the annexation agreement. Staff supported the request for the delay. As a matter of procedure, the City Council opened the joint public hearing for public comment. No member of the public had a comment. City Council then closed the public hearing. Council moved to move this item to the May 11, 2026 City Council meeting and another public hearing at that time.
May 11,2026 City Council Meeting.
This item was heard in full on the May 11th City Council Meeting. Staff made their presentation on the Annexation and Zone Change. Council Member Aspenlieder asked about details regarding the reimbursement of sewer lines in the Development Agreement. Mac Fogelsong with the Public Works Division reiterated that reimbursements are required by law. Council Member Aspenlieder emphasized the language in the Development Agreement should be explicit about the reimbursement of the wastewater lines. Mac Fogelsong and City Administrator Chris Kukulski affirmed that is acceptable. Council Member Aspenlieder asked the City Administrator about the current status of the settlement agreement between the City and Knife River Corp. Chris Kukulski and Mac Fogelsong commented there is an ongoing dispute regarding the settlement, where the city is claiming that they met the requirements of the settlement, and Knife River Corp is disputing the claim. Councilmember Shaw asked about the inclusion of a specific park maintenance district with this annexation, as it appears to be outside that PMD's jurisdictional area. Staff clarified this was an error in the presentation itself, the correct PMD was listed in the staff report. Council Member Neese asked about the location of zoned parkland area on the proposed zoning map. Staff responded that this parkland's layout will coincide with the proposed trail network on the adjacent land, which is to contain the future reservoir for the City of Billings. The applicant's agent, Kolten Knatterud of IMEG Engineering, spoke up about the layout, reiterating that the proposed roadway and phasing of project required the parkland layout. Council Members then asked Mac Long, of Knife River Corporation, about the ongoing dispute regarding the settlement agreement between the City and Knife River Corp. Mac affirmed their position the city has not met the requirements of the settlement to their satisfaction. Councilmember Boyett stated he was not comfortable approving these items until the dispute surrounding the settlement agreement was resolved.
City Council then opened the item for public comment. There was no public comment. On May 11, 2026, Council postponed this annexation/zone change for up to 90 days until the associated dispute between the City and Knife River was resolved. On June 8, 2026, Council approved an Addendum to the Mutual Release and Settlement Agreement, resolving all disputes related to the property associated with the annexation.
This item was initially intended to be heard at the April 27th City Council Meeting. At the time of the meeting, the applicant requested a delay of the item to the May 11, 2026 City Council Meeting to allow additional time for the landowner and the City to finalize details surrounding the annexation agreement. Staff supported the request for the delay. As a matter of procedure, the City Council opened the joint public hearing for public comment. No member of the public had a comment. City Council then closed the public hearing. Council moved to move this item to the May 11, 2026 City Council meeting and another public hearing at that time.
May 11,2026 City Council Meeting.
This item was heard in full on the May 11th City Council Meeting. Staff made their presentation on the Annexation and Zone Change. Council Member Aspenlieder asked about details regarding the reimbursement of sewer lines in the Development Agreement. Mac Fogelsong with the Public Works Division reiterated that reimbursements are required by law. Council Member Aspenlieder emphasized the language in the Development Agreement should be explicit about the reimbursement of the wastewater lines. Mac Fogelsong and City Administrator Chris Kukulski affirmed that is acceptable. Council Member Aspenlieder asked the City Administrator about the current status of the settlement agreement between the City and Knife River Corp. Chris Kukulski and Mac Fogelsong commented there is an ongoing dispute regarding the settlement, where the city is claiming that they met the requirements of the settlement, and Knife River Corp is disputing the claim. Councilmember Shaw asked about the inclusion of a specific park maintenance district with this annexation, as it appears to be outside that PMD's jurisdictional area. Staff clarified this was an error in the presentation itself, the correct PMD was listed in the staff report. Council Member Neese asked about the location of zoned parkland area on the proposed zoning map. Staff responded that this parkland's layout will coincide with the proposed trail network on the adjacent land, which is to contain the future reservoir for the City of Billings. The applicant's agent, Kolten Knatterud of IMEG Engineering, spoke up about the layout, reiterating that the proposed roadway and phasing of project required the parkland layout. Council Members then asked Mac Long, of Knife River Corporation, about the ongoing dispute regarding the settlement agreement between the City and Knife River Corp. Mac affirmed their position the city has not met the requirements of the settlement to their satisfaction. Councilmember Boyett stated he was not comfortable approving these items until the dispute surrounding the settlement agreement was resolved.
City Council then opened the item for public comment. There was no public comment. On May 11, 2026, Council postponed this annexation/zone change for up to 90 days until the associated dispute between the City and Knife River was resolved. On June 8, 2026, Council approved an Addendum to the Mutual Release and Settlement Agreement, resolving all disputes related to the property associated with the annexation.
ALTERNATIVES
City Council may:
- Approve adding the subject property to Ward 5, or;
- Disapprove adding the subject property to Ward 5. Disapproval will not modify the boundary of Ward 5 and will create a problem where property inside the City Limits is not within a City Ward.