The City Council adopted the current Limits of Annexation Map on May 22, 2017. The Annexation Policy requires the City to review and consider updates to the policy and map whenever the Capital Improvements Plan is revised. Council approved the 2019-2023 Capital Improvements Plan on March 26, 2018. The Council reviewed Limits of Annexation Map amendment requests at its Work Session on April 2. The Council is expected to conduct a public hearing and take formal action on the Annexation Committee map amendment recommendations at this meeting.

In making its recommendations to expand the City Annexation Petition Area (Red) and add to the Long Range Urban Planning Area (Orange) in 2018, staff considered the ability to serve areas outside the existing City limits with existing resources, effects on City residents, and programed improvements, including those contained in the Capital Improvement Plan (CIP). The Committee also strives not to favor one department’s ability to provide service over another department’s limitations.

In considering the Annexation Committee's recommendations, the Council will conduct a public hearing and may:

• Approve the Annexation Committee's recommendations to Amend the Limits of Annexation Map.
• Modify the Annexation Committee's recommendations.
• Take no action to amend the Limits of Annexation Map at this time.

Annexation of property to the City of Billings increases the City’s tax base. At the same time, the City bears the cost of additional service demands. The Annexation Policy and the Limits of Annexation Map are management tools to help City staff and the Council balance this cost versus benefit of adding property to the City and providing services to that property. The proposed Map amendments would have an impact on City services as additional property would be brought into the City Annexation Petition Area for possible immediate annexation to the City and provision of services. There is further discussion of these issues in the Background section of this memo.

Staff presented information in January on conducting a cost of service analysis to help in determining the cost-to-benefit ratio of allowing certain property proposed to be developed in certain ways to be annexed into the City. The Council favored this concept and directed staff to return with more details on a scope for such an analysis. Staff will be providing this information back to Council later in 2018.

The City Council first adopted an Annexation Policy and accompanying Map 16 years ago on May 28, 2002. The original adoption of the Policy was driven by annexations in the early 2000s of areas like Rehberg Ranch and Briarwood that were placing significant service demands on City services and the Council realized it needed a formal process and criteria to make future annexation decisions. To provide guidance on Annexation Policy and Map amendments, an Annexation Committee was formed to advise the City Council. The Committee reviews map amendment requests from private property owners as well as City Departments, and also makes recommendations on updates to the Policy and Map brought to the Committee from City staff.  The current adopted policy established two limits of annexation. The City Annexation Petition Area (Red) defines an area where annexation petitions may be supported in the short term. The Long Range Urban Planning Area (Orange) covers areas where City services may be extended but would require additional analysis and funding to support those services.

The City of Billings has annexed more than 4 square miles since 2004 (38.65 to 43 sq. mi.), when the Policy and Limits of Annexation Map were further refined to be similar to what they are today. The community’s growth over this 14-year period has challenged the City’s ability to balance serving new areas and maintaining a high level of service to present citizens.  The Committee has been cautious in recommending any expansion of the annexation areas because expansion may add to the challenges of achieving that balance.

The Committee has maintained the premise that since the City in the past determined its ability to serve property already in the City Annexation Petition Area, the City’s commitment to considering annexing property already in the Red Area should be maintained. This approach is something the Council may make further determinations on, as annexations are at the complete discretion of the City Council, but the Committee wants to ensure the Council understands its approach to both Limits of Annexation Map Amendments and Annexation Petition requests.
 
Limits of Annexation Map Amendment Requests
Staff received five requests from property owners and agents for map amendments. One request was to include property in the Orange Area (Long Range Urban Planning Area) of the Limits of Annexation Map. This is referred to as the Kurth Property Request.
 
The other four requests were to include property in the Red Area of the Limits of Annexation Map. These are referred to as the Dyk Property Request, Yellowstone Christian College Request, Morledge Property Request, and the Staley Property Request. All of the requests are described in detail below. The City did not have any changes to the Limits of Annexation Map regarding City owned property for this year.
 
Orange Area Request
 
Kurth Property Request – C/S 3532, Parcel 1, Parcel 2; W2SE Less C/S 3146 and C/S 3151; that part of the NENW described as Tract 1 of C/S 3653 and Tract 2 of C/S 3653; Section 5, Township 1 South, Range 25 East.

This request includes bringing 175 acres southwest of the Trails West Subdivision south of Grand Avenue and west of 56^th Street West into the Long Range Urban Planning Area (Orange Area). The request was made to begin planning for future annexation and development of residential and park/open space in the City. Properties included in the Long Range Urban Planning Area required further research and analysis by both the City and the property owner. The next formal step after being included in the Long Range Urban Planning Area would be to prepare an Urban Planning Study as per the City’s Annexation Policy and request inclusion in the City Annexation Petition Area for future annexation consideration.
 
Property owner Brian Kurth in coordination with Sanderson Stewart presented the request for the map amendment to the Annexation Committee and provided information regarding concepts of how the property might develop in the City with residential densities of about 6 units per acre. Mr. Kurth stated that he ultimately envisions an area similar to the neighborhood around Rose Park where he grew up to be developed on his property.

Annexation Committee Review: The Annexation Committee discussed this map amendment request over the course of two of its meetings in January and February. The Committee ultimately supported bringing the property into the Long Range Urban Planning Area and its comments and discussion were as follows:

School District #2: There is space for a future elementary school on the property where Ben Steele Middle School is located, which could someday provide added school capacity in this area. However, Ben Steele is currently at its capacity for students in the current school year.
 
Parks: About 200 acres of park land is projected to be needed across the City, according to the City-Wide Parks Comprehensive Master Plan that was just completed. There is going to be a demand for park land in this area as the City continues to grow. The existing irrigation canal corridor and floodplain areas appear to provide an opportunity for open space or programmable space on the subject property. Mr. Kurth stated he has been approached by a baseball group and that sports tourism is gaining traction across the community and he sees potential on his property to help accommodate some of the park needs. 
 
Planning: The City brought property directly to the north of the subject property into the Long Range Urban Planning Area in 2016 recognizing the proximity of the new school and already annexed property that is developing in the City is northeast of the subject property. Maintaining residential development densities of at least 6 units per acre would be more sustainable for the City's future development. Bringing this property into the Long Range Urban Planning Area provides for further analysis and coordination on future City development in this area.
 
Police: The Police Department did not have any concerns with adding this property to the Long Range Urban Planning Area for future consideration for annexation. A School Resource Officer is now located at Ben Steele Middle School and the Police Department patrols within the City limits just north and west of the subject property now, so there is already a police presence in the area.
 
Fire: The Fire Department stated that the subject property is in the Billings Urban Fire Service Area (BUFSA) and that Station #7 is in close proximity to the area, at 54^th Street West and Grand Avenue. The Fire Department's recently completed Long Range Master Plan will be used to assess future service delivery at the time the subject property requests inclusion in the City Annexation Petition Area.
 
Public Works: Public Works staff is supportive of bringing the subject property into the Long Range Urban Planning Area for further research and analysis. It may be sometime before water and sewer infrastructure is close enough for the property to be brought into the Red Area. Currently, water and sewer utilities are installed in a portion of 56^th Street West and Grand Avenue north and west of the subject property, but further build out of the Trails West Subdivision, which is already in the City, will help inform future provision of water and sewer service in the area as well as transportation connections.
 
Transit: MET will not be able to serve the subject property for quite a long time based on its current routes and service area limitations, but Transit staff said they have no objection to the property being brought into the Long Range Urban Planning Area for further research and analysis.
 
Recommendation for Kurth Property Request
The Annexation Committee recommends that the City Council amend the Limits of Annexation Map to include the Kurth property in the Long Range Urban Planning Area.
 
Red Area Requests
 
Dyk Property Request – C/S 983, Parcel 14 of Amended Tract 2B and 13, Parcel 12 of Amended Tract 2A, Parcel 11 of Amended Tract 2A, Parcel 2C of Amended Tract 2, and Parcel 2G Corrected, Section 10 of Township 1 South, Range 25 East.
 
This request includes bringing about 67 acres at the northeast corner of the intersection of King Avenue West and 48^th Street West into the City Annexation Petition Area (Red Area). The request was made to begin planning for annexation and development of residential and commercial uses in the City. Inclusion of the subject property within the City Annexation Petition Area would enable the property owner to petition to annex the property into the City and access City services at any time in the future.
 The Dyk family, in coordination with developer Propriedad, LLC and Performance Engineering and Consulting, presented the request for the map amendment to the Annexation Committee and provided the required Urban Planning Study outlining the proposed development concepts for the property. The concepts include residential manufactured home, two-unit residential and potentially some single family residential development averaging 9 units per acre and commercial development closer to the King Avenue West and 48^th Street West intersection and along the two arterials. Property to the east and south across King Avenue West is already in the City limits, so coordination for utilities and infrastructure could be planned for multiple developments if this area is able to begin its annexation preparations.

Annexation Committee Review: The Annexation Committee discussed this map amendment request over the course of two of its meetings in January. The Committee ultimately supported bringing the property into the City Annexation Petition Area and its comments and discussion were as follows:

School District #2: The subject property is southeast of property the School District owns for a future school site, however there are no short term plans to develop a school at that location. There would eventually be some school impact from the residential development on the subject property as the west end schools are mostly full at this time.
 
Parks: There is currently no community park to service this area. Parks has a concern of over burdening of park facilities. Performance Engineering’s Scott Aspenleider, an agent for the applicants, stated that the future development planned to provide trail and pedestrian infrastructure and connect into the trail and pedestrian facilities in place or planned in the Lenhardt Square development to the east and the King Avenue West corridor. Park staff stated that trails are great but programmable space is still necessary, and if higher density development occurs in the area, a minimum of 3 acres of parkland would be needed to adequately serve the neighborhood.
 
Planning: This area is developing rapidly east of 48^th Street West and on both sides of King Avenue West from 48^th Street West back to Shiloh Road. Property to the east and south is already within the City limits. It makes sense to bring this property into the City Annexation Petition Area for future annexation and development in the City.
 
Police: The Police Department stated it already is providing services along the King Avenue West Corridor just east of the subject property as well as to the south and the property is adjacent to patrol beat. Currently, the Police Department has an agreement with the Sheriff’s Office to go out into the County in this area for stolen vehicle cases, but not for “service” calls. As the City continues to grow, additional resources and officers will be needed to meet service demands.
 
Fire: The Fire Department stated that the subject property is in the Billings Urban Fire Service Area (BUFSA) and that Station #7 at 54^th Street West and Grand Avenue is the closest to the area. The property also is north of property already within the City limits along King Avenue West and that water utilities will be able to be extended to the property to meet water supply requirements.
 
Public Works: Public Works staff is supportive of the request with the understanding that any extension of services would be at the cost of the developer. A City project this year will extend utilities as far as 46th Street West as part of coordinating expansion with other property owners along King Avenue West. The developer is aware that water and sewer will be required to go to the furthest edge of the property at the intersection of 48^th Street West and King Avenue West. Performance Engineering and Consulting has been working with the City Engineering Division already to determine service requirements. Both the water and sewer plants have capacity to serve this area.
 
Transit: MET will likely not be able to serve the subject property within the next 5 years. The intersection of Shiloh Road and King Avenue West is the furthest point west that MET transit provides service, about 0.8 miles east of the subject property.
 
Recommendation for Dyk Request
The Annexation Committee recommends that the City Council amend the Limits of Annexation Map to include the Dyk property in the Red Area at this time.
 
Yellowstone Christian College Request – C/S 640 Amended and C/S 3329, Tract 2.
This request includes bringing about 12 acres at the northeast corner of the intersection of Shiloh Road and Hesper Road into the City Annexation Petition Area (Red Area). The request was made to begin planning for annexation and expansion of the Yellowstone Christian College on the property.  The College currently has its campus on the property and would like to access City services in the future to serve its existing campus and to expand its campus on the property. Inclusion of the subject property within the City Annexation Petition Area would enable the property owner to petition to annex the property into the City and access City services at any time in the future.
 
The property owners, the Yellowstone Christian College, and its agent, WWC Engineering, presented the request for the map amendment to the Annexation Committee and provided the required Urban Planning Study outlining the proposed college development concepts for the property. The College is looking at long term expansion plans, that could include added student dormitories, class room and activity spaces, and an increase in total student population from about 60 to 120 students over time.

Annexation Committee Review: The Annexation Committee discussed this map amendment request over the course of two of its meetings in January. The Committee ultimately supported bringing the property into the City Annexation Petition Area and its comments and discussion were as follows:

School District #2: No comments on this request.
 
Parks: No comments on this request
 
Planning: This area is surrounded by property already within the City limits or property already with in the City Annexation Petition Area. While there are some infrastructure challenges to getting water and sewer utilities to the property in the near term, it makes sense to bring this property into the City Annexation Petition Area for future annexation and development in the City.
 
Police: The Police Department stated it already is providing services along Shiloh Road and east along Hesper Road and had no specific concerns with the subject property. As the City continues to grow, additional resources and officers will be needed to meet service demands.
 
Fire: The Fire Department stated that a walk through inspection on the existing College buildings and facilities would be required upon annexation to ensure that all building codes would be met. Staff indicated that the College has already requested this inspection prior annexation to be aware and to be able to address any code deficiencies in a timely manner.
Staff also indicated that fire hydrants would be required within 400’ feet of all structures and the hydrants would need to be installed prior to annexation since the College has existing structures in use on the property.
 
Public Works: Public Works staff has been anticipating this request for several years and is supportive of the request with the understanding that any extension of services would be at the cost of the developer. There is a water main on Shiloh Road that will need an extension of 2,200 feet. An 8” dry sewer line also fronts the property and would need to be extended by the College 1,250 feet. These extensions would be critical to when the property could be annexed. Reimbursement agreements for water and sewer infrastructure are available to this development and would be encouraged so that the College might recover some of its costs from other properties that would use the utilities.
 
Transit: MET already goes by the property on Shiloh Road and can pick up riders.
 
Recommendation for Yellowstone Christian College Request
The Annexation Committee recommends that the City Council amend the Limits of Annexation Map to include the Yellowstone Christian College property in the Red Area at this time.
 
 
Morledge Property Request – Property is described as Section 19, Township 1 North, Range 26 East, All Less a Fraction in the W2W2SW4, Less Tract A, C/S 663, and Less C/S 1260 and the S30, Township 1 North, Range 26 East, Fraction of the N2NE4
This request includes bringing a total of about 578 acres into the City Annexation Petition Area (Red Area). The property borders the Billings Logan International Airport property on the north and straddles Alkali Creek Road, and is a little south of the intersection of Skyway Drive and Alkali Creek Road in the Billings Heights. The owners of the property would like to have the land included in the City Annexation Petition Area to plan for future annexation and development of the property for residential and commercial uses. The owners expect to begin development within the next 5 years, according to information in the Urban Planning Study prepared for the request.

The property owners, Dr. Morledge Family, LLC, in coordination with Sanderson Stewart provided the map amendment request and the Urban Planning Study for the subject property. The overall plan for the property is to develop with residential and commercial uses on portions of the land. The residential development would primarily be on the south side of Alkali Creek Road and the commercial would be primarily on the north side of Alkali Creek Road. While the property is 578 acres, about 320 acres is developable given the significant drainages, steep slopes and the flood plain along Alkali Creek in the area. The Morledges have provided a letter to the City Council in regard to their request and it is attached to this memo for City Council reference and review.

Annexation Committee Review: The Annexation Committee discussed this map amendment request over the course of two of its meetings in February and March. The Committee ultimately decided to not recommend bringing the property into the City Annexation Petition Area at this time, and its comments and discussion were as follows:

School District #2: No specific comments on this request.
 
Parks: In the actual development of the area, a Neighborhood Park and options for a Community Park would be important to consider as well as trail development. The topography of the proposed parkland areas provided with the Urban Planning Study is questionable as far as useable/programmable space is concerned. The areas look more like open space and natural areas with some trails, but recreation needs may not be met under current concept. The applicant’s agent, Mac Fogelsong of Sanderson Stewart, agreed that much of the area would not be programmable space for soccer fields or other uses, but some of the acreage close to Alkali Creek might have some potential for specific recreation uses.
 
Planning: This area has the City limits to the south where the Airport is located and City limits along the northeast portion of the property on the north side of Alkali Creek Road. Property to the southeast along Alkali Creek Road remains in the County. One property on the north side of Alkali Creek Road just deannexed as the property could not be developed as platted given floodplain and infrastructure limitations and the owner is looking to regroup and determine a new development plan for the land. There are major utility infrastructure challenges to serve this property, with water and sewer utility extensions of 3,300-3,600 feet needed to reach the subject property. These utilities would currently be passing along Alkali Creek Road though property that is outside the City. The proposed average density of residential development around 4 units per acre is at the bottom end of the City Annexation Policy’s stated range of 4-7 dwelling units per acre. This density is much less efficient for City service delivery over the long term. Approaching this property with a conservation development approach – having large areas undeveloped and higher density in the areas that may be developed – would make the future sustainability of the area for City service delivery much greater. While Planning staff finds it makes sense to bring this property into the City Annexation Petition Area for future annexation and development in the City at some time in the future, staff is concerned that the intent of the annexation map is to identify properties that are able to be annexed quickly and immediately if they are brought into the City Annexation Petition Area. This property is not currently in this category.
 
Police: The Police Department stated that Alkali Creek Road provides access to the area.
The Billings Heights is currently separated from the rest of town from a patrol standpoint. Most of the time, two patrol officers are dedicated to the Heights area. Sometime, there may be 4 officers in the area. The Police Department will eventually need more staff and resources to meet service demands in the Heights area if expansion continues.
 
Fire: Chief Bill Rash stated that he has a concern about the inability to serve the area based on existing station location and existing response times. He said that the new Fire Department Long Range Master Plan identified in its facilities report that a second station location in the Heights is the number one priority. He stated that response time is a tremendous concern for the Heights area. Since an additional Fire Station in the Heights is not yet planned and funded for construction, the Department has great concern that enabling this property to annex into the City will increase the burden of an already underserved area. The Fire Department does not support inclusion of this property at this time.
 
Public Works: The property is a large parcel and if annexation were to occur, long utility extensions would be needed. The Urban Planning Study states water and sewer extensions would be approximately 3,300 to 3,600 linear feet. This property has been in the Long Range Urban Planning Are for quite some time and it is adjacent to city limits. The construction of the inner belt loop in the next 5-10 years is favorable and could have synergy for commercial development activities. Public Works is supportive of including the property in the City Annexation Petition Area, but states again that the developer would be responsible for the utility extensions at this time and they are significant.
 
Transit: MET service is limited on Alkali Creek Road and turns at Senators Boulevard, south of the subject property. MET would like to readjust its service area boundary with time, however adding transit service now in one area requires a cut to services elsewhere. In regards to the property being adjacent to the Billings Logan International Airport, staff has concern with pieces of the property that are closest to the Airport and even considered in the noise restriction areas. Development can occur in some areas with proper insulation, however, residential development may not be a compatible land use so near an active airport operation. Staff also is concerned about how storm water would be addressed along the boundary with the airport to avoid conflicts between the airport and residential development. Given the location of some of the property in the Airport Influence Area and the storm water concerns, it is likely that any development would need to address construction requirements to address noise mitigation and storm drainage facilities. MET Transit and the Airport staff are not against all future development in this area, but have significant concerns about how development might occur and the impacts it might have on Airport operations.
 
Recommendation for Morledge Property Request
The Annexation Committee recommends that the City Council not amend the Limits of Annexation Map at this time to include the Morledge property in the Red area.
 
Staley Property Request – C/S 1880, Parcels 1B2 and 2B, 3^rd Amended, and C/S 1880, Tract 1A, Amended, Section 9, Township 1 South, Range 25 East.

This request includes bringing a total of about 39 acres into the City Annexation Petition Area (Red Area). The property is at the southwest corner of the intersection of Central Avenue and 48^th Street West. It is surrounded by property that is in the Long Range Urban Planning Area.  It is about half a mile from the City Annexation Petition Area to the east and more than half a mile to the City Limits to the east as well. The owners of the property would like to have the land included in the City Annexation Petition Area to plan for future annexation and development of the property for residential and commercial uses. Although the property is some distance from the City limits and City services, the owners expect to begin development within the next 5 years, according to information in the Urban Planning Study prepared for the request.

The property owners, The Staley Family Irrevocable Land Trust, and Susan and Harry Staley, in coordination with Sanderson Stewart provided the map amendment request and the Urban Planning Study for the subject property. The overall plan for the property is to develop with residential and commercial uses on portions of the land. The commercial development would be primarily at the northeast portion of the property near the intersection of 48^th Street West and Central Avenue. The residential development would surround the commercial property on the remainder of the property.

Annexation Committee Review: The Annexation Committee discussed this map amendment request over the course of two of its meetings in January and February. The Committee ultimately concluded that it would not recommend the City Council amend the Limits of Annexation Map at this time to include the Staley property in the City Annexation Petition Area, and its comments and discussion were as follows:
 
School District #2: The subject property is north of property the School District owns on 48^th Street West for a future school site, however there are no short term plans to develop a school at that location. There would eventually be school impact if this property were annexed from the residential development, and the west end schools are mostly full at this time.
 
Parks: There are currently no community parks identified in this specific area of the West End. The City has not built a community park in many years and the existing City parks are feeling the impacts of it with very intense usage across the City and facilities that are needing updates and replacement. While this property is proposing 124 residential units, which is not a major impact in itself, additional park facilities are needed for the current City residents/users and for property that is already in the City Annexation Petition Area.
 
Planning: This subject property is surrounded by land in the Long Range Planning Area. The City Annexation Petition Area and the City Limits are at least half a mile to the east and north. The challenges of bringing this property into the Red Area now are similar to those of the Morledge property. Staff is concerned that the intent of the annexation map is to identify properties that are able to be annexed immediately or in the very short term if they are brought into the City Annexation Petition Area. This property is not currently in this category. There are significant distances to where current City services are available and new County development to the east of the subject property along Central Avenue creates a barrier to construction and maintenance of City infrastructure along the Central Avenue Corridor in this area.
 
Police: The property is nowhere close to existing Police Department beats. Police will have challenges with staffing and resources if this property were annexed into the City so far from the current City limits and service areas. There are three officers on the West End on any given day between the three beats. There is office space at Fire Station #7 for a Police Satellite Office, but it is not occupied by Police staff on a regular basis.
 
Fire: The Fire Department stated that water supply is critical to any new area that it might serve and so distance to services and the challenges of providing those services is key to having the water infrastructure in place to serve the new annexed area. The property is already within the BUFSA area and is currently served under that service in the County, so the Billings Fire Department would continue to be the fire protection provider for the property.
 
Public Works: Staff is concerned that the area is not contiguous to the City Annexation Petition Area or the City limits. Staff had further follow up on this property with additional Public Works staff after the initial review and the Departments position has not changed that is not supportive of this request. There are infrastructure challenges along Central Avenue, water and sewer services are at least 900 feet away. A difficulty in the past is that subdivisions in the County are never up to City standards when annexation is needed, so then annexation of those subdivisions is cost prohibitive and discourages annexation. The existing subdivisions in the County along Central Avenue are relatively new and do not meet City standards.
 
Transit: This property is way out of the MET service area, far from the current City limits, and transit will not be in the area for a long time.

Recommendation for the Staley Request
The Annexation Committee recommends that the City Council not amend the Limits of Annexation Map at this time to include the Staley property in the Red area.
 

Public comment will be taken at the April 23 City Council public hearing concerning the Annexation Committee's recommended Limits of Annexation Map amendments. The public hearing has been advertised as required in the Yellowstone County News. Agents for the five property owners and some of the property owners themselves provided informal comments during the Committee meetings and were informed of this meeting and provided the staff memo.

In making its recommendations, the Annexation Committee takes into consideration many plans and policies, including, but not limited to, the most current Water and Wastewater Master Plan, Storm Water Master Plan, 2016 City of Billings Growth Policy, 2014 Billings Urban Area Transportation Plan, the Billings Comprehensive Parks and Recreation Master Plan 2017, neighborhood or area plans as applicable, and the most current CIP. The Annexation Policy and Map recommendations are consistent with adopted policies and plans, and attempt not to favor one department’s ability to provide service over another department’s limitation.