Staff recommends the City Council hold a public hearing. In this case, a joint public hearing that considers both the annexation and the associated Zone Change 1021 a Mixed Residential Planned Neighborhood Development (PND) zone change. Upon completion of the hearing, staff recommends the City annex the petitioned property with the staff recommended conditions of approval. 

NOTE: Though a joint hearing is being held, individual action will need to be taken on each item. 

Dorn Property and Homes, LLC and Dorn/Lowe, LLC have petitioned for annexation using the provisions of Section 7-2-4600, MCA. The property is located south of Central Avenue and West of Shiloh Road. The property is described as Parcel 1 and 2 of Certificate of Survey 2828. The land is legally described as Tracts of Land situated in the NE 1/4 of Section 10, T.1S., R.25E, P.M.M., Yellowstone County, Montana, more particularly described as follows: Tracts 1 and 2 of Certificate of Survey No. 2828, recorded December 20th, 1994, under Document No. 1767966. Including the Drain Ditch Right-Of-Way being 55 feet in width and lying adjacent and between the south line of said Tracts 1 and 2 and the east-west mid-section line of said Section 10. Said annexation containing 27.810 gross and net acres, more or less. The property is zoned Agricultural Open Space, a zone not recognized by the City of Billings. Therefore, an associated zone change application is being submitted for the use of a Planned Neighborhood Development. The property owner intends to construct 2, 6 and 8-plexes, and apartment style buildings.

The applicant submitted the annexation petition in 2021 and the City Council was scheduled to take action in January 2022. The annexation petition was put on hold once the applicant withdrew the associated zone change. Now that activity has resumed on the project the petition may continue forward.

It is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities. Staff finds the proposed annexation complies with the adopted Annexation Policy criteria as follows:

1.    The area is located within the City's Annexation Petition Area on its Limits of Annexation Map: The property is confirmed to be in the red area, see attached map.

2.    The City is able to provide adequate city services within a time period mutually agreed to by the property owners requesting annexation and the city: The Annexation Agreement (conditional approval) is the binding contractual agreement that identifies requirements of the City and the Developer to ensure services are provided in a mutually agreed to time. The Annexation Agreement will be considered at this same City Council meeting. The developer is required to meet this condition within 45 days per the attached resolution.

3.    Existing or proposed public improvements within the area to be annexed will meet City standards: The existing property is vacant therefore and planned infrastructure will be new and is required to meet the City's regulations. The Annexation Agreement which is a condition of approval will outline public improvements required of the developer as part of developing the property. The only way this property could be developed in the city not according to adopted policies and regulations would require action from City Council or the Board of Adjustment to grant variances allowing deviations from adopted codes. In this case, there is a request for a variance as part of zone change 1021. The variance is specifically related to connectivity at Obie Lane and Bell Avenue. Staff has not recommended approval of this variance, but the Zoning Commission is forwarding a recommendation of approval. Additionally, It is required and standard practice that prior to the issuance of any building permit, the building and site plans will undergo planning review to confirm it is designed in accordance with zoning regulations.

4.    All property owners within the area to be annexed must sign a Waiver of Right to Protest future Special Improvement Districts: A standalone waiver is required as a condition of approval for this annexation. This waiver is attached to the Annexation Agreement. The waiver is good in perpetuity and is not subject to the 20-year limitation as identified in the Montana Subdivision and Platting Act.

5.    All residential property owners within the area to be annexed must create or join an existing park maintenance district: This criteria is not applicable, as confirmed by the Parks Department as there is not a park maintenance district governing the area, nor is there a parkland dedication requirement at this time. The property is being subdivided, however, per the Montana Subdivision and Platting Act divisions of land that are First Minor Subdivisions are not subject to park dedication requirements.

6.    Residential densities planned for development within the area to be annexed must meet an overall average density of at least 4-7 dwelling units per acre: The proposed Mixed Residential PND ensures this minimum density range is achieved. The criteria is intended to be a minimum standard as opposed to a minimum and maximum. A concept plan of the development has been provided with the Zone Change 1021 materials. There are a mix of 2,6 and 8 plex buildings and apartment style buildings. The concept coupled with assumptions based on the requirements of the NX districts identified in BMCC, 27-300.6 and 37-300.7 indicate the minimum range will be met or exceeded. 

7.    The proposed land use within the area to be annexed must conform to the goals of the Adopted City of Billings Growth Policy: Chapter 2 of the 2016 City of Billings Growth Policy outlines 7 growth guidelines. Essential Investments, Place Making, Community Fabric, Strong Neighborhoods, Home Base, Mobility and Access and Prosperity. Particularly this parcel with the proposed zoning is most in line with the following:

Strong Neighborhoods:

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels
• Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, goodwill and social interaction
• Safe and livable neighborhoods can be achieved through subdivision design that focuses on complete streets, pedestrian-scale streetlights, street trees and walkable access to public spaces
• Neighborhoods that are safe and attractive and provide essential services are much desired Implementation of the Infill Policy is important to encourage development of underutilized properties

Home Base:

• A mix of housing types that meet the needs of a diverse population is important
• The Housing Needs Assessment is an important tool to ensure Billings recognizes and meets the demands of future development Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe
• Planning and construction of interconnected sidewalks and trails are important to the economy and livability of Billings Public safety and emergency service response are critical to the well-being of Billings' residents
• Homes that are safe and sound support a healthy community

Departmental Response: City and County Departments were given the opportunity to comment on this annexation. City departments responded favorably and detailed responses are provided below. The County Public Works Department did not respond to this annexation request. 

• Water and Sanitary Sewer: Public water and sanitary sewer service is available to this site. Developer Tracts will be served by extending the existing 24-inch sanitary sewer main within a 15-foot-wide public easement or public right-of-way along the entire south boundary of Tracts 1 and 2 of Certificate of Survey 2828 and along the entire south boundary of Tract 1 of Certificate of 3358.  The Developer Tracts will be served by existing water mains located in Bell Avenue and Rocky Vista Way and stubbed to the Obie Lane terminus.  
• Storm water: The developer will manage storm drainage within the Developer Tracts in accordance with the City of Billings Stormwater Management Manual (2018).  The Developer shall dedicate to the public the area along Developer Tracts fronting Rocky Vista Way for the existing Monad Drain/Shiloh Drain.
• Transportation: The subject property can be accessed by way of Bell Avenue, Monad Road and Obie Lane.
• Fire Stations: The subject property is currently served by the Billings Fire Department through the Billings Urban Fire Service Area and the Billings Fire Department will continue to serve the property upon annexation. The Billings Fire Department stated that as this and other annexations are built out, additional fire department resources will be needed. This property will be served by Fire Station 7 located near Grand Avenue and 54th Street West. The subject property is approximately 5 minutes away from Fire Station 7 or 2.78 miles. 
• Parks: 2% parkland is required as part of the Planned Neighborhood Development. Additional parkland could be dedicated if the developer chooses to go through subdivision, but this is not a requirement of development. The property could be developed as a master site plan, and no additional parkland would be required. If parkland is public, a maintenance RSID will be required. Private parkland may be maintained in other ways.
• School facilities: School District 2 does not generally provide recommendations on land-use applications, but rather provides broad statements regarding capacity issues. In this case, the development would be served by the following schools, Big Sky Elementary: current enrollment number is 368 and max capacity is 394; Ben Steele Middle: current enrollment number is 795 and max capacity is 750; and West High School: current enrollment number is 2,089 and max capacity is 1,731. The school district provided no additional comments.

General City Services: These are the City services that are provided to all residents and businesses in the City, such as police and fire protection, street and storm drain maintenance, and garbage collection and disposal. The service providers that responded did not object to the annexation of this property, however emergency services in its comments above did note its concerns as additional property is annexed into the City. Those concerns did not warrant a recommendation of denial.

• Transit: Property is not directly served by a transit route; closest routes are: 7-Broadwater within .25 miles to the east, traveling north and south on Shiloh Rd, most likely access via Monad Rd and Shiloh and 13-Westend approximately .5 miles to the east traveling southbound through the intersection of Monad Rd and 38th St W. This route is also within .5 miles to the south, traveling East on King Ave W with most likely access to route occurring at King Ave W and Saint Mary’s Way. The Transit Development plan does continue to keep service within similar proximity with service to the south being maintained on King Ave W and service to the east moving to 38th St W instead of Shiloh Rd.  Frequency on this service is anticipated to be every 30 minutes, so frequency is increasing significantly from the existing hourly+ timeframe. Due to the growth in the area and the high proliferation of higher density housing, MET would anticipate service in the area to continue in the foreseeable future.
• Police: There is sufficient ingress/egress to this property if access/connectivity is provided per City requirements, and is close to properties already in the city. There would be no need to modify beat structure. Despite passage of a recent safety levy, continued development and annexation will affect our ability to deliver service. 
• Public Utilities: The Public Works-- Distribution and Collection Division had no concerns with the annexation request. 
• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no concerns with serving the property.
• Public Works-Solid Waste: The Solid Waste Division had no concerns with annexing the property.
• Ambulance Service: The City does not provide ambulance service, however it does dictate the level of service provided by American Medical Response (AMR). By City ordinance, 90% of ambulance calls must be answered within 8 minutes. This property may be within the area of acceptable response time.
• Legal and Finance: General Fund services, such as the Legal and Finance Departments should not be negatively impacted by this annexation.

Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve the property whether it is in the City or the County. The Planning Division staff supports the annexation because staff finds the annexation policy criteria have been met. 

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing, advertise the hearing, and post the property with information on the annexation petition and public hearing. Notice of the public hearing was posted on the property. The hearing was legally advertised in the Yellowstone County News.

The City Council may approve or deny the petition for annexation. Denial of the petition will mean the City Council cannot consider any other associated items with this annexation.

• On December 6, 2021, the annexation petition was submitted to the Planning Division by the owner's agent. 
• On January 24, 2022, the City Council was scheduled to take action on the resolution but the applicant asked to withdraw the associated zone change. As such, the application was placed on hold.
• The Council is scheduled to hold a hearing and take action on February 13, 2023.

This application has no impact on the Planning Division Budget.