Staff recommends that the City Council approve the Annexation Agreement with Shiloh Farm, LLC.

At the April 25, 2022, Council meeting, City Council approved of the annexation of Certificate of Survey 1100 Amended, Tract C and delayed the approval of the annexation agreement. Council requested additional park access points from the development and language regarding development adjacent to the BBWA Canal be added to the Annexation Agreement.  Those items have been incorporated into the Annexation Agreement.  The property to be annexed is located along the west side of Shiloh Road north of Zoo Drive.  Shiloh Farm, LLC. desires to develop the property as a residential development.  Typically, as a condition of approval of the annexation, the property owner enters into an Annexation Agreement with the City of Billings outlining necessary public improvements.  The Annexation Agreement outlines the off-site improvements necessary for development including access to the site, construction of water and sanitary sewer, and storm drain.  The Annexation Agreement provides for City required off-site improvements should the property be annexed and developed without a subdivision plat. The Annexation Agreement for this Council action generally includes the following conditions or improvements:

• Requirement for access to Shiloh Road and connectivity to the property to the south;
• Requirement for extension of water and sanitary sewer mains along Shiloh Road;
• Requirement for an easement or right-of-way dedication for water and sanitary sewer mains if necessary;  
• Requirement for an easement for public water and sanitary sewer extension to the property located northwest of this property;
• Outlines requirements for traffic impact study; 
• Requirement for multiple trail connections to the north;
• Requirement that construction adjacent to the BBWA Canal shall not damage the BBWA Canal; and
• Notice of certain risks to Developer of developing property below the BBWA Canal.

City Council may:

• Approve the Annexation Agreement with the property owner; or
• Not approve the Annexation 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 Annexation Agreement that would not be required upon site development. Sections 2 and 3 require an easement to the City property to the northwest.  Section 5 requires the dedication of public right-of-way, if needed.  Section 7 requires construction near the BBWA Canal not to disturb the BBWA Canal, restricts planting trees on the canal bank, and requires certain building setbacks from the canal.  Section 12 contains warning and indemnity language on behalf of the City regarding liability of building near and below the BBWA Canal.  

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.