Origer Enterprises, Inc. (Doug Origer) and TNC Development, LLC (Natalie Carson) have submitted petitions to annex land to the City of Billings under Section 7-2-4600, MCA. The subject property is composed of two lots totaling about 7 acres. The property is described as Lot 5, Block 2, and Lot 1, Block 3, Titan Subdivision. The property is located on the north and south sides of Interstate Avenue just west of its intersection with Mullowney Lane. The property is mostly vacant, with one commercial building on Lot 1. The property owners are requesting annexation in order to obtain City services for future development of the property in the City. No development plans were provided with the annexation request. The property is zoned Highway Commercial and if it is brought into the City, it would retain this commercial zoning designation. The property is located within the five-year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's criteria in its Annexation Policy.

The City Council may approve or deny a petition submitted by owners of 50% or more of the real property in the area to be annexed (7-2-4601 (3)(b), MCA).

The City can provide municipal sewer and water service to the subject properties. The owner will be responsible for all costs of extending the utilities from Mullowney Lane and Frontier Drive. Staff is recommending a standard condition of approval for this annexation that either a development agreement or a Subdivision Improvement Agreement (if the property is subdivided)between the City and the property owners be executed to clarify how City services will be provided. If the proposed annexation is approved and the property is further developed for commercial uses, it will contribute additional tax revenue to the City.

The subject property is composed of two lots totaling about 7 acres. The property is located on the north and south sides of Interstate Avenue just west of the intersection of Interstate Avenue and Mullowney Lane. The property owners are requesting annexation in order to obtain City services for development of the properties in the future. The properties are zoned Highway Commercial and will remain under that zoning if brought into the City Limits.

The property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's criteria in its Annexation Policy. The City Limits are immediately adjacent to the subject property on the north and east.

PROCEDURAL HISTORY

• On April 9, 2013, the annexation petitions were submitted to the Planning Division.
• On May 13, the City Council acknowledged receipt of the annexation petitions and set a public hearing for May 28.
• On May 28, the City Council will conduct the public hearing for the annexations and may take action on the request.
• On June 10, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to include the property in City Council Ward III will be conducted.
• On June 24, the City Council will conduct the second and final reading for the ordinance expanding the Ward III boundary.

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing. Notice of the public hearing was posted on the property on May 10 and published in the Billings Times on May 9. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

The City Council has expressed concerns regarding how annexing additional properties may affect the City’s ability to provide services to new developments without diminishing the services provided to existing City residents. To address these concerns, the City Council adopted an annexation policy that lists criteria for suitable annexations. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the Limits of Annexation.
2. The City is able to adequately provide municipal water and sewer services. Sewer and water services will require extension of lines by the property owner at the time of development.
3. Any proposed improvements to the property will meet City standards.
4. As part of a Development Agreement or Subdivision Improvement Agreement, the owners will sign a Waiver of Right to Protest the creation of any Special Improvement Districts.
5. If annexed, any proposed land use will comply with the zoning. Future development also may conform to the goals of the City of Billings and Yellowstone County Growth Policy.

Although MCA 7-2-4600 allows the municipality to waive the requirement of an annexation public services plan, it is the City’s custom for staff to prepare an analysis of predicted impacts to services and facilities. State law lists the required contents of a public services plan including a 5-year (minimum) plan that outlines how and when services and infrastructure will be extended to the annexed area and how they will be financed. This report follows that general format.

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.

City Facilities: The following improvements and facilities are necessary to provide adequate services to the subject property.

• Water: Water service is available and will need to be extended from Mullowney Lane to the subject properties along Interstate Avenue. The cost to extend service for the property will be at the developer's expense.

• Sewer: The property may be served by the developers extending City sanitary sewer from Frontier Drive west across Mullowney Lane to Interstate Avenue. The developer will be required to fund and construct sanitary extension(s) as defined in city policy.

• Stormwater: There is no storm drain in Mullowney Lane. Barrow pits are currently utilized along Interstate Avenue in front of the subject properties. Storm water impacts will be identified during the subdivision and site development process and mitigating measures developed at that time, meeting the requirements of the city and the public works department.

• Transportation: The subject properties have frontage on Mullowney Lane and Interstate Avenue. Mullowney Lane is a collector and Interstate Avenue is a commercial local access street. Both are currently built to County Standards. Any required street improvements for Mullowney Lane and/or Interstate Avenue will be identified during the site development process. Any specific traffic impacts will be identified during the site development process and mitigating measures developed at that time.

• Fire Stations: The subject property is currently served by the Billings Fire Department through the Billings Urban Fire Service Area and the Billings Fire Department will continue to serve the property upon annexation. The Billings Fire Chief stated that as this and other annexations are built out, additional fire department resources will be needed. The nearest fire station is Station #5, located at 604 South 24th Street West, about 1.5 miles northwest of the subject property. The Fire Department also will work with the developers and City Public Works to ensure proper water supply and emergency vehicle access is provided with development of these lots in the City.

• Parks: The subject property will remain zoned Highway Commercial if annexed.   Park land dedication will not be required but the owners will execute a waiver of protest to creating future SIDs. 

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. Bike lanes are proposed on Mullowney Lane in front of the subject properties when there are future improvements to the roadway in this area.

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.

• Transit: MET transit system operators have no objections to the annexation request, but the nearest bus route follows King Avenue West and the Laurel Frontage Road, with some weekend service just south of the I-90 corridor to Midland Road between a quarter and a half a mile north of the subject property. 

• Police: The Police Department states that the subject property is in an established patrol area. 

• Public Utilities: The Public Works-- Distribution and Collection Division had no objection with the annexation request as long as the owner agrees to fund the necessary water and sewer extension and connection costs, and agrees to a waiver of protest for future SIDs through a Development Agreement or Subdivision Improvement Agreement as a condition in the Annexation Resolution.

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no problems serving the property.

• Public Works-Solid Waste: The Solid Waste Division notes that it can serve the property when developed, but noted that Senate Bill 234 passed in the 2011 State Legislature dictates that it is up to the property owner as to whether the City or a private carrier collects solid waste from the property.

• 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; this annexation is 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. The Finance Department responded that it did not see any issues with the petition request. The Legal Department stated that the properties are contiguous with the existing City Limits and the request appears to be consistent with the CIty's current Annexation Policy.

• Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve new development whether in the City or the County.

Annexation of this property would adhere to the following goals, objectives and policies of the Yellowstone County and City of Billings 2008 Growth Policy:

• Predictable land use decisions that are consistent with neighborhood character and land use patterns. (Land Use Element Goal, page 6)
• Limit regional commercial centers to areas having efficient and direct access to Interstate 90 or other regional corridor (Planned Growth Goal, page 18)
• Attractive and accessible communities. (Economic Development Element Goal, page 7) The proposed zoning will encourage new businesses to locate in this gateway area.