Staff recommends that the City Council approve the Development Agreement with Dorn Real Estate and Development.

City Council will consider annexation of Tracts 1 and 2 of Certificate of Survey 2828.  The property proposed to be annexed is located north of Monad Road and west of Shiloh Road and is northwest of the new medical school.  Dorn Real Estate and Development desires to develop the property as a residential 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:

• Construction of a sanitary sewer main within an easement along the south property line of property
• Construction of a water main from Bell Avenue to Monad Road that completes a loop
• Requirement to dedicate right-of-way where the Monad Drain/Shiloh Drain exists
• Construction of curb and gutter, sidewalk, and street widening along Bell Avenue
• Outlines requirements for a 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 three requirements of the Development Agreement that would not be required upon site development.  Section 2 requires the Developer to grant an easement or dedicate right-of-way for construction of the sanitary sewer parallel to Monad Road.  If the site develops without subdividing, the City would not be able to acquire an easement or right-of-way.  Section 4 requires the dedication of right-of-way for the existing Monad Drain/Shiloh Drain.  If the site develops without subdividing, the City would not be able to acquire right-of-way for the drain.  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.  

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.