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

The proposed Annexation Agreement for Lots 1, 2, and 4A within Long Subdivision establishes the infrastructure and development obligations required for annexation into the City of Billings. The agreement requires the developer to construct and fund all necessary streets, water, sanitary sewer, and stormwater improvements needed to serve the property, while also addressing right-of-way dedications, traffic mitigation, and proximity to the City's planned water storage reservoir. The agreement is consistent with the existing Settlement Agreement and does not require reimbursement for existing water or sewer infrastructure; however, reimbursement would be required for future City-constructed water main improvements along Hesper Road. Because the area is already served by adjacent City infrastructure, there are no significant financial impacts to the City, and staff recommends approval of the Annexation Agreement with JTL Group, Inc.

At the June 22, 2026, City Council meeting, Council will consider the annexation of parcels located within Long Subdivision.  Consideration of the annexation petition was delayed from the May 11, 2026, meeting.

As a condition of annexation, property owners typically enter into an Annexation Agreement with the City of Billings that identifies the public infrastructure improvements required to serve the property upon development. The proposed Annexation Agreement addresses necessary off-site improvements, including right-of-way dedications, roadway access, and the construction of water, sanitary sewer, and stormwater infrastructure. The agreement also establishes the City's requirements for off-site improvements should the property be annexed and developed without a subdivision plat.

Because the property is adjacent to the City's planned water storage reservoir, the agreement includes provisions notifying the property owner of potential impacts associated with the reservoir and requiring indemnification of the City for claims arising from those conditions.

The agreement further includes a waiver of the right to protest future Special Improvement Districts, which does not expire. Upon development, the property owner will be responsible for constructing, at their expense, all water, sewer, stormwater, and street infrastructure necessary to serve the property, as well as paying applicable system development fees and traffic mitigation costs identified through a traffic impact study.

At the May 11, 2026, Council meeting, staff was asked to clarify the reimbursement provisions contained in Section 2 (Sanitary Sewer) and Section 3 (Water). The proposed Annexation Agreement is consistent with the previously executed Settlement Agreement and does not require reimbursement for existing sanitary sewer or water main infrastructure. However, reimbursement is required for future water main infrastructure constructed by the City, specifically the planned water main along Hesper Road, should that infrastructure be installed by the City prior to development of the property.

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.