Staff recommends that the City Council approve the development agreement with KB Rentals, LLC.

City Council will consider annexation of QFC Subdivision, Lot 4A.  The property proposed to be annexed is located south of the Frontage Road and east of East Lane and is adjacent to other recently annexed property.  KB Rentals, LLC desires to develop the property as a commercial development.  Typically, as a condition of approval of the annexation, the property owner enters into a development agreement with the City of Billings outlining necessary public improvements.  The Development Agreement outlines the off-site improvements necessary for development, including access to the site, construction of water and sanitary sewer, and storm drain.  The Development Agreement provides for City required off-site improvements should the property be annexed and developed without a subdivision plat.The development agreement for this Council action generally includes the following conditions or improvements:

• Reimbursement for the water line that is installed in front of the property
• Construction of a sanitary sewer within an easement along the south property line of property
• Construction of a 10-foot-wide multi-use trail along the south side of the Frontage Road
• Outlines requirements for traffic impact study.

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 public right-of-way if needed.  If the site develops without subdividing, the City would not be able to acquire right-of-way.  Section 7 requires 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 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.