Staff recommends that the City Council approve the Development Agreement with Buffalo Crossing, LLC.

City Council will consider annexation of Certificate of Survey 2735, Tract 4A.  The property proposed to be annexed is located along the south side of Grand Avenue near the intersection of 60th Street West.  Buffalo Crossing, LLC. desires to develop the property as a residential subdivision.  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:

• Requirement for extension of water and sanitary sewer mains along Grand Avenue including reimbursement to the City for existing water and sanitary sewer constructed in the past by the City;
• 60-foot-wide half right-of-way dedication required along Grand Avenue;
• 80-foot-wide right-of-way dedication for Stockman Avenue;
• 56-foot-wide right-of-way dedication for a street connection to the south;
• Requirement for right-of-way or easement along the Birely Drain;
• Construction of curb and gutter and street widening of Grand Avenue along the property frontage;
• Construction of a public, 10-foot-wide multi-use trail along Grand Avenue; 
• Requirement for construction of street crossing of Birely Drain
• Construction of Stockman Avenue through the development;
• Construction of a road connection from Stockman Avenue to the south; and
• Outlines requirements for traffic impact study.

City Council may:

• If the annexation is approved, then approve the Development Agreement with the property owner; or
• Not approve 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 several requirements of the Development Agreement that would not be required upon site development. Section 2 requires reimbursement to the City for a proportionate share of existing sanitary sewer main previously constructed by the City fronting the property.  Section 3 requires reimbursement to the City for a proportionate share of existing water main previously constructed by the City fronting the property.  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 additional right-of-way for Grand Avenue, a street connector to the south, and Stockman Avenue.  Section 7 requires construction of a street crossing over the Birely Drain.  If the site develops without subdividing, the City may not be able to require the crossing.  

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.