Staff recommends that the City Council approve the Annexation Agreement with the Department of Military Affairs.

City Council will consider annexation of Tracts 4 and 5 of Certificate of Survey 1889 and Tracts 6A and 6B of Certificate of Survey 1889 Amended.  The property proposed to be annexed is located north of Highway 3 and west of AJ Way and is adjacent to parcels annexed in 2023, also owned by the Department of Military Affairs.   These two parcels do not front public streets, but would access AJ Way through the existing Department of Military Affairs property.  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, 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;
• Requirement for cost-share for potential water system improvements;
• Requirement for a traffic impact study, mitigation of impacts, and future intersection contributions; and
• Requirement for the airport to have the ability to review developments for structure height, noise compatibility, compatible land uses, and lighting, glare and pyrotechnic use.

Tracts 2 and 3 of Certificate of Survey were annexed in June 2023 for development of a portion of the National Guard site.  The four new parcels proposed to be annexed comprise the area for the next phase of the National Guard campus. Attached is the annexation agreement for those parcels.

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.  

With this annexation, there are no requirements of the Annexation Agreement for improvements that would not be required upon site development.   There is no significant financial impact to the City with acceptance of the annexation agreement.