During processing of annexation #12-07 (Resolution #12-19207 approved by City Council on August 27, 2012), staff determined that the right-of-way in front of the subject property on Grand Avenue is identified as a road tract on the north half and a road easement on the south half. Section 7-2-4211 of the Montana Code Annotated (MCA) requires a city to annex the entire width of adjacent roads with the properties it annexes. To comply with Section 7-2-4211 MCA, the City secured a quit claim deed from the County for the north half. The City sought a quit claim deed from the property owner to the south for the road easement portion to facilitate annexation of that half of the right-of-way. The portion of the right-of-way that will be annexed is a 30-foot wide Petitioned County Road easement that covers approximately 0.167 acres along the front of Tracts 1A, Certificate of Survey 2990. The property is located along the south side of Grand Avenue just west of the intersection of Grand Avenue and 48th Street West (See Exhibit Attachment). The Estate of August Kramer is the legal owner of this property, but the ownership interest is subject to the public’s right to use it as a roadway.

City staff contacted the property owner and provided her with the option of either deeding the property to the City and having it removed from the property’s taxes, or taking no action and having the 30-foot-wide road easement annexed by the City and paying City taxes on the annexed portion of the right of way (See Letter to Property Owner Attachment). The property owner responded via her attorney (See Property Owner Response Letter Attachment) that she did not want to deed the road easement to the City and will maintain ownership of the underlying property while the City annexes the easement. The Council approved Resolution of Intent #12-19225 to annex the road easement at its October 9th meeting. At this meeting, the Council will conduct a public hearing and consider a Resolution to annex the road right-of-way easement.

Section 7-2-4211 of the Montana Code Annotated (MCA) requires a city to annex the entire width of a road with the properties it annexes. To comply with Section 7-2-4211 MCA, the City must annex the road easement portion of Grand Avenue.

The Council may:

• Approve a Resolution to annex the Grand Avenue right-of-way easement
• Not approve a Resolution to annex the Grand Avenue right-of-way easement. Not acting on the resolution and annexing the right-of-way would put the City out of compliance with Section 7-2-4211 MCA regarding annexation of right-of-way adjacent to annexed property.

There is no direct financial impact to the City in moving forward to annex a portion of Grand Avenue road right-of-way. However, as more property along Grand Avenue is annexed in the future in this area, maintenance and management of Grand Avenue will become the City's responsibility.

Staff recommends that the Council conduct a public hearing and approve the Resolution to annex a portion of Grand Avenue right-of-way easement.