Staff recommends the City Council hold a public hearing on the annexation and zone change. Upon completion of the hearing, staff recommends the City annex the petitioned property with the staff recommended conditions of approval. 

Note: Although a joint hearing is held on the annexation and zone change, the Council is required to take two separate actions. 

Sanbel, on behalf of The Kramer Family, submitted a petition to annex land using the provisions of Section 7-2-4600, MCA. The property is located north of Grand Avenue, south of Colton Boulevard, and west of 54th Street West. The land being annexed is described as being Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit Farms located in the SE1/4 of S31, T1N, R25E according to the official plat on file in the office of the clerk and recorder of Yellowstone County, Montana, under Document No. 4086208. The property is zoned A - Agriculture. This is not a zoning district recognized by the City, and is a Yellowstone County zoning designation. This annexation has a joint hearing with the Planned Neighborhood Development Zone Change (City Zone Change 1070). 

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 must be located within Zone 1 or Zone 3 of the Limits of Annexation map. 
   • As evidenced within the attached, "Limits of Annexation" exhibit. 
2. The City must be able to provide adequate city services at a cost acceptable to the City within a time period mutually agreed to by the property owners requesting annexation and the City;
   • The City will provide services to the property within a mutually agreed upon time period as described within the Subdivision Improvement Agreement (SIA) for future Homestead Acres Subdivision. The Homestead Acres Subdivision is scheduled for the October 27, 2025 City Council Regular Meeting.  
3. Existing or proposed public improvements within the area to be annexed must meet City standards;
   • Proposed public improvements are required to meet City standards as outlined within the City Subdivision Regulations and reflected within the Subdivision Improvement Agreement for Homestead Acres Subdivision.
4.  All property owners within the area to be annexed must sign a Waiver of Right to Protest the creation of Special Improvement Districts;
   • The waiver of right to protest is included as part of the SIA for the subsequent subdivision.
5. All residential property owners within the area to be annexed must create or join an existing park maintenance district;
   •  The future subdivision(s) will be part of a park maintenance district.
6. Residential densities planned for development within the area to be annexed must meet an overall average minimum density of primary dwelling units per acre as per the current City of Billings Growth Policy or similar planning documents.
   • The mixture of commercial and mixed-residential zones described in the Planned Neighborhood Development will created densities well over 9 units per acre.
7. The proposed land use within the area to be annexed must conform to the goals of the Adopted City of Billings Growth Policy.
   • The proposed annexation is consistent with the following guidelines of the 2016 Growth Policy:
     1. Strong Neighborhoods;
        1. Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools, and public gathering spaces foster health, goodwill and social interaction.
        2. Neighborhoods that are safe and attractive and provide essential services are much desired. Implementation of the Infill Policy is important to encourage the development of underutilized properties.
     2. Prosperity and Essential Investments;
        1. Infill development and development near existing City infrastructure may be the most cost-effective.
        2. A diversity of available jobs can ensure a strong Billings' economy.
        3. Retaining and supporting existing businesses helps sustain a healthy economy

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.

• Water and Sanitary Sewer: Public water and sanitary sewer service is available to the property proposed for annexation. The Developer will be responsible for connection to the sanitary sewer main and a water main in Grand Avenue and extended within Daybreak Drive (future road internal to Homestead Acres Subdivision).
• Storm water: Any development will be compliant with the adopted Stormwater Management Manual. 
• Transportation: The Developer Tract will be accessed from Grand Avenue. The Public Right-of-way along Grand Avenue is already dedicated to the City of Billings. 
• Fire Stations: The Billings Fire Department currently serves the subject property through the Billings Urban Fire Service Area agreement.  The Billings Fire Department will continue to serve the property upon annexation.  As this and additional annexations are built out, additional fire department resources will be needed to meet and maintain our high level of service due to the increased call volume and burden on our department these annexations create.  The nearest fire station is Fire Station 7 which is located approximately 0.37 miles away.
• Parks: No Parkland or Trails will be required as part of this annexation. However, the City staff is in discussions with the developer and his agent regarding Section 21(c) of the Charitable Gift and Cottonwood Park Development Agreement that refers to annexation petitioners within 1.5 miles of Cottonwood Park being approached by the City to obtain a contribution from the developer to fund development and/or maintenance of the Park and memorializing it in a Annexation Agreement or Subdivision Improvement Agreement for the property. Staff was not able to coordinate in depth discussions with the parties before this Council Agenda had to be posted, but staff will provide more information in the City Administrator Weekly on October 10 and/or through an updated Annexation Agreement.
• School facilities: The school district did not respond to 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 the Fire Department in its comments above did note its concerns as additional property is annexed into the City.

• Transit: The annexed area is not directly serviced by a MET Route. The nearest fixed route stop (Grand Avenue & Shiloh Road) is approximately 2 miles from away the proposed annexation location via roadway. MET does not anticipate that fixed-route would operate in the area until more significant commercial and/or residential growth necessitated transit service in the area. 
• Police: This proposed development is adjacent to established city limits and will not require an adjustment in schedules or staffing at this time. There is sufficient ingress/egress to the area. Despite recent passage of a safety levy, continued annexation and development will affect our ability to deliver service without commensurate resources.
• Public Utilities:
  • The Public Works- Distribution and Collection Division had no concerns with the annexation request.
  • Public Works -Street and Traffic Division stated that it has no concerns with serving the property.
  • Public Works-Solid Waste Division had no concerns with annexing the property, but pointed out that State Law allows the property owner to choose what garbage hauler may service the property after it is in the City. 
• 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. Depending on factors at any given time such as traffic and congestion, 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 it is consistent with the Limits of Annexation map and the criteria of the annexation policy has been met. Further, coordination with other departments does not raise concerns that cannot be mitigated.

These decisions have a cumulative affect, therefore, City Council is being provided with a recommendation of approval.
 

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 and was advertised in the Yellowstone County News.

CITY COUNCIL - SEPTEMBER 22, 2026
The applicant requested a delay to October 13th, based on unresolved traffic analysis issues within the overall project. Council Member Boyett motioned to take this item off the Agenda, and schedule the public hearing for the October 13th City Council Meeting. The motion was seconded by Council Member Gulick. Motion was approved unanimously.

The City Council may

• Approve,
• Conditionally approve or
• Deny the petition for annexation.

Denial of the petition will mean the City Council cannot consider other agenda items related to this property regarding the zone change and ward boundary ordinance. On August 1, 2025, the annexation petition was submitted to the Planning Division by the owner's agent.  On October 13, 2025, the City Council is scheduled to take action on the petition. 
 

This application has no impact on the Planning Division Budget.