Staff recommends that the City Council approve the Annexation Agreement with Messinger Company, LLC.

City Council will consider annexation of a portion of Tract 11A-1, of Amended Tract 11A of Certificate of Survey 1391.  The property proposed to be annexed is located along Harnish Boulevard north of Trade Center Avenue.  This property is part of the Coca-Cola Facility being constructed along the South Frontage Road.  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 and 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 Harnish Boulevard;
• Requirements for extension of water and sanitary sewer mains along Harnish Boulevard in the future;
• Construction of curb and gutter and sidewalk along Harnish Boulevard; and
• Outlines requirements for traffic impact study.

City Council may:

• If the annexation is approved, then 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.  Section 5 requires the dedication of public right-of-way, if needed.  Section 6 requires a sidewalk easement if needed.   

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.