Staff recommends that the City Council approve the development agreement with Torgerson's Real Estate Holdings, LLC.

At the July 12, 2021, meeting, City Council will consider annexation of Lots 2 & 3, Certificate of Survey 2394. The property is located along the South Frontage Road east of the City County Drain.  Torgerson's Real Estate Holdings, LLC. has purchased these parcels and desires to develop the property as a commercial development. Typically, as a condition of approval of the annexation, the property owner is to enter into a development agreement with the City of Billings outlining necessary public improvements. 

City Council may:

• If the annexation is approved, then approve the development agreement with the property owner; or
• Disapprove the development agreement. If the agreement is not approved, the responsibility for infrastructure improvements would be in accordance with policies in place at the time of development.

There are two requirements of the development agreement that would not be required upon site development.  Section 5 requires the dedication of right-of-way.  If the site develops without subdividing, the city would not be able to acquire right-of-way.  Section 7 requires an easement for and construction of a multi-use trail on the south side of the Frontage Road.  If the site develops without subdividing, the city would not be able to require this easement or the construction of the trail.
 
The financial impact of the remainder of the agreement is dependent on policy changes that may occur before development. If development occurs before any changes to the City's development policies, there would be no financial impact. If development occurs after City development policies change, the financial impact would be dependent on the changes.