Seven owners of 12 properties in the area of East Billings between the East Billings Urban Renewal District (EBURD) and MetraPark submitted petitions to annex land to the City of Billings under Section 7-2-4600, MCA. The subject properties total about 18 acres, including road rights of way. The properties are a combination of developed and vacant land located on the north and south sides of 3rd and 4th Avenues North, the north side of 2nd Avenue North and the west side of the intersection of Exposition Drive (Main Street)/1st Avenue North/US 87 East (See Master Annexation Exhibit attached).

The property owners are requesting annexation in order to obtain City services for existing development and future development of the properties in the City. The owners also have each signed an Annexation Incentive Development Agreement and Waiver that is to be executed between the property owners and the City to provide certain development incentives and cost sharing through the EBURD Tax Increment Finance District process. When the City Council considers each of the properties for annexation at its meeting on January 26, the Council also will be considering action on the Annexation Incentive Development Agreements and Waivers. The properties are currently zoned Controlled Industrial and would come into the City with the same zoning. However, Planning Division staff is working with the Billings Industrial Revitalization District Board and property owners in the area to develop an interim zoning to achieve the vision in the Exposition Gateway Concept Plan adopted by the City and County in 2013.

The properties are located within the five-year annexation area of the City's Limits of Annexation Map and appear to meet many of the City's criteria in its Annexation Policy. A detailed review and analysis of the Annexation Policy criteria will be provided in the Council's public hearing memo. The City Council’s policy is to consider annexations at two separate Council meetings. At the first meeting, the Council acknowledges receipt of a petition and sets a public hearing date. At the second meeting, the Council conducts the hearing and decides if it will annex the property.

Section 7-2-4600, MCA, allows owners of more than 50% of the property to petition the City for annexation. The only alternative that is consistent with City Council policy is to acknowledge receipt of the petitions and set a public hearing date.

Analysis by City staff of how City services may be provided to the properties and a recommendation on the annexations will be prepared and presented at the public hearing.

Staff recommends that the City Council acknowledge receipt of the annexation petitions and schedule a public hearing for January 26, 2015 to consider annexing these properties.