Nick Czalpa submitted a petition to annex land on behalf of owner Lawrence B Stone Properties #16, LLC, using the provisions of Section 7-2-4600, MCA. The subject property is a 5-acre parcel located at 301 Orchard Lane. The property is described as the N1/2, SW1/4, SW1/4, NE1/4 of said Section 9 T.1S., R.26E., P.M.M., Yellowstone County, Montana, being wholly surrounded on the north by Tract 2, of Certificate of Survey No. 1954, on the east by Kissee Subdivision, on the South by Tracts A and B, of Certificate of Survey No. 1938, and on the west by Al’s Subdivision, First Filing.

The property is developed with large warehouse and commercial space and was used by a metal fabrication and manufacturing facility in the past. The owners have completed some redevelopment and improvements to the property and are requesting annexation to access City services. The use of the property is intended for a wholesale building supply business for contractors. The property is zoned Controlled Industrial. The property owner also has coordinated with the City Engineering Division to complete a Development Agreement specifying public improvement requirements for the property. The Development Agreement is scheduled to be acted upon at this meeting of the City Council directly after the Council acts upon the annexation petition, assuming the Council approves annexation of the subject property.

The property is located within the City Annexation Petition Area on the City's Limits of Annexation Map and appears to meet some of the City's criteria in its Annexation Policy. The City is able to serve the property and further analysis and discussion is provided in the Consistency with Adopted Plans and Policies section of this memo.

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 only alternative that is consistent with City Council policy and state law is to conduct a public hearing and review the request before taking action.





 

The City is able to provide municipal water and sewer to the subject property via existing mains in Orchard Lane just west of the subject property. Since the property is already developed, staff is recommending one condition of approval for this annexation: That a Development Agreement be executed with the City to identify infrastructure improvements and timing of those improvements to serve the property. The Development Agreement is also on the City Council's agenda for this same meeting so that if the annexation is approved the Council may also act to execute the Development Agreement between the City and the property owner. The City will receive property tax revenue and payment for fees and assessments for City services after the property is developed. The commercial use of the property is expected to cover the costs of delivering City services to the property.

The subject property totals about 5 acres. It is located at 301 Orchard Lane on the east side of the street in southwest Billings. There is property inside the City Limits surrounding the subject property. The property is developed with warehouse and commercial business facilities and has been used for fabrication and manufacturing in the past. The property appears to meet some of the City's criteria in its Annexation Policy.

PROCEDURAL HISTORY

• On February 13, 2017, the annexation petition was submitted to the Planning Division by the owner's agent. 
• The annexation petition was scheduled to go to the City Council in April, 2017, but the owner asked to temporarily suspend the process and the petition was not moved forward to complete the review process and bring it to City Council until October, 2017.
• On January 22, 2018, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On February 12, if the City Council approves the annexation resolution, a public hearing and first reading of an ordinance to include the property in City Council Ward III will be conducted.
• On February 26, 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 and post the property with information on the annexation petition and public hearing. Notice of the public hearing was posted on the property on January 4, 2018, and published in the Yellowstone County News on December 29. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

Although Montana Code does not require the City to prepare a provision of public services plan for Annexation by Petition (Section 7-2-4600, MCA), it is the City’s custom to have staff prepare an analysis of predicted impacts to services and facilities, and information on how services will be provided to the property after annexation. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the City's Annexation Petition Area on its Limits of Annexation Map.
2. The City is able to provide municipal water and sewer services to the property.
3. Any existing and proposed public improvements within the area to be annexed will meet City standards.
4. All property owners within the area to be annexed must sign a Waiver of Right to Protest future Special Improvement Districts. The proposed condition of annexation that the property owner enter into a Development Agreement with the City will ensure that the waiver is signed.
5. If annexed, any proposed land use will comply with the zoning. The property is currently zoned Controlled Industrial. Any further development or redevelopment of the property will comply with the zoning regulations.

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. The County Public Works Department did not have comments on this annexation request. 

City Facilities:
Specific comments from City Departments are provided below:

• Water: This property is already served by an existing water main located in Orchard Lane along the front of the subject property.

• Sewer: The property will be served by an existing sanitary sewer main located in Orchard Lane along the west frontage of the subject property. The subject property will be responsible for connecting to the existing sewer main in coordination with City Public Works.

• Storm water: All of the storm water runoff from this property will need to meet the City of Billings requirements for storm water management. The property owner installed some improvements prior to moving this annexation petition forward and City Public Works has reviewed the installation design to insure it meets City Standards.  Any future redevelopment also will follow the City of Billings storm water regulations.

• Transportation: The subject property will be served by Orchard Lane that runs along the western boundary of the property. Orchard Lane was reconstructed to meet City Collector Road Standards in 2016. Frontage improvements for the subject property were completed at that time and no further improvements are needed at this time. Any future frontage improvements along and within the Orchard Lane right-of-way will be reviewed by the City of Billings.

• Fire Stations: The subject property will be served by the City of Billings Fire Department. The Billings Fire Chief stated that the Department is in support of this annexation given its location in the City. The nearest fire station is Station #4, located at 476 6th Street West, about 1 road mile northwest of the subject property.

• Parks: The subject property is zoned Controlled Industrial and not allowed to develop with residential uses, so park land dedication or a cash-in-lieu contribution would not occur under the current zoning and development of the property.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the 2017 Billings Area Bikeway and Trail Master Plan Update.  Curb walk was installed during the reconstruction of Orchard Lane, providing some pedestrian facilities along this corridor. Orchard Lane also was originally identified to have bike lanes installed. However, modifications to the design of the road reconstruction took the bike lanes out. There are bike lanes installed on Calhoun Lane to the west and future plans to provide a Bike Boulevard on Hallowell Lane to the east when that street is reconstructed.

• School facilities: The subject property would be served by Billings School District #2. Since it is zoned Controlled Industrial and development for commercial purpose, it will have no impact on student capacity for the schools that serve it.

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. MET Transit currently serves this area with two buses, Route 9-Central and Route 19-SS Loop that both traverse Orchard Lane, making access for employees at the subject property very convenient.

• Police: The Police Department staff stated the Department can serve the area as it within an established patrol area as the City Limits are surrounding the subject property in this area of southwest Billings.

• Public Utilities: The Public Works-- Distribution and Collection Division had no concerns with the annexation request.

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

• Public Works-Solid Waste: The Solid Waste Division has no concerns with annexing the property, but pointed out that State Law allows the property owner to choose which garbage hauler may service the property after it is in the City. 

• 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 property appears to be within the area of acceptable response time.

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

The Planning Division staff supports the annexation because the property is in the City Annexation Petition Area, is wholly surrounded by the City Limits, and has access to all City services.

Annexation of this property would generally follow guidelines of the 2016 City of Billings Growth Policy and use of the property for commercial uses would also meet some elements of the Growth Policy Guidelines. Commercial and industrial uses of the property will help address the cost effectiveness of providing City services in the area, and infill development like this near existing City infrastructure also is more cost effective as per the Essential Investments Growth Guideline. Supporting successful businesses like the one operating on the subject property that provide local jobs benefits the community and a diversity of available jobs can ensure a strong Billings' economy. These goals meet elements of the Prosperity Growth Guideline.

Reuse of this property for commercial uses that are not as intense as manufacturing and fabrication activity on this site is more in accordance with the 2012 South Billings Master Plan. The Plan identified this area as supporting and encouraging jobs and job training activity and involving business activity that fit with the mixed use nature of this portion of South Billings where residential and commercial uses are often close together or even mixed along some of the neighborhoods main corridors. The proposed use of this property as a distribution business for contractor building materials to serve the local area is a better fit with the mixed-use nature of this portion of the community.