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. The City Council is considering action on the Annexation Incentive Development Agreements and Waivers along with the annexation petitions at this meeting.

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. 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 City is able to serve the property and further analysis and discussion is provided in the Consistency with Adopted Plans and Policies section of this memo. The City Council considers this annexation at two separate Council meetings. At the first meeting on January 12, the Council accepted the annexation petitions for these  properties and set a public hearing date for January 26. At this meeting, the Council will conduct the hearing and decide if it will annex the properties.  The Council may conduct a single public hearing, but needs to consider each resolution, including its applicable annexation incentive development agreement, separately and independently from the other annexation requests. 

The City Council may approve or deny a petition submitted by owners of 50% or more of the real property in the area to be annexed (7-2-4601 (3)(b), MCA). The only alternative that is consistent with City Council policy and state law is to conduct a public hearing and review these requests before taking action.

In this situation, since the City has agreed to consider incentive agreements with the EBURD and with the property owners, and has begun the process of designing a major public infrastructure project for the area where all of these properties are located, not approving the annexations would mean not entering into incentive agreements with the property owners and revisiting the viability of the infrastructure project.

The City is able to provide municipal water and sewer to some of the subject properties currently, and to all of the properties after the infrastructure improvement project is completed though funding from the City and from a bond paid back using EBURD funds. The owners may only be responsible for costs of connecting their properties to the City's systems under the incentive agreements included with these annexation petitions. Staff is recommending conditions of approval for these annexations that Development Agreements or Subdivision Improvement Agreements between the City and the property owner be executed if the properties are annexed and before development or redevelopment occurs.

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 properties are zoned Controlled Industrial. The zoning will remain the same after annexation, 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 property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet many of the City's criteria in its Annexation Policy. The city limits are either adjacent or near to the subject properties on the north, south and west boundaries.

PROCEDURAL HISTORY

• On October 6, 2014, the annexation petitions were submitted to the Planning Division through the Billings Industrial Revitalization District (BIRD). The BIRD Board asked that the City Council not consider the annexation petitions until January 2015 to provide a delay in the levy of City tax assessment to the properties until late 2015. 
• On January 12, 2015 the City Council accepted the petitions to annex the properties and set a public hearing date for January 26.
• On January 26, the City Council will conduct the public hearing for the annexations and may take action on the request.
• On February 9, if the resolutions to annex the properties are approved by the City Council, a public hearing and first reading of an ordinance to include the properties in City Council Ward I will be conducted.
• On February 23, the City Council will conduct the second and final reading for the ordinance expanding the Ward I boundary.

 

Annexation by petition does not require notification of adjoining landowners; however, it does require that the City Council conduct a public hearing and post the property with information on the annexation petition and public hearing. Notice of the public hearing was posted on the property on January 9, 2015 and published in the Billings Times on January 8. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

Although MCA 7-2-4400-4407 does not specify the need to prepare a public services plan, it is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities. The proposed annexations comply with the adopted Annexation Policy criteria as follows:

1. The areas are located within the Limits of Annexation.
2. The City is, or will be, able to adequately provide municipal water and sewer services to the properties (a large infrastructure project funded through the EBURD TIF is in the design stages and is expected to be constructed in 2015).
3. Any existing or proposed public improvements within the area to be annexed must meet City standards. To provide continuity of jurisdiction and match the area of the public infrastructure project, the City is proposing to annex all of the road rights-of-way in the area, not just the rights-of-way adjacent to the properties that are petitioning for annexation. The additional road right-of-way annexation (Annexation #15-01) will come before the Council in February.
4. If annexed, any proposed land use will comply with the zoning. The properties are currently zoned Controlled Industrial and will remain zoned that way when annexed into the City. 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.

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. County Public Works staff did not respond to these annexation petitions, but County staff are aware of this proposal and there are County Rural Special Improvement District funds from County water lines in the area to be annexed that are intended to contribute toward the infrastructure improvements in the area of these annexations. County Public Works staff also are supportive of the City staff's recommendation to annex all of the road rights-of-way in the area to provide continuity of jurisdiction and match the area of the public infrastructure project, not just the rights-of-way adjacent to the properties that are petitioning for annexation. The additional road right-of-way annexation (Annexation #15-01) will come before the Council in February.

City Facilities:
Specific comments from City Departments are provided below. To ensure public improvements in the area to be annexed will meet, or be brought to, City standards at time of development, or redevelopment two conditions of annexation - one regarding future execution of a Development Agreement and one regarding future execution of a Subdivision Improvement Agreement are proposed.

• Water: These properties may be served by existing and new water lines in the area of these annexations. Service will depend on construction of City WO #15-08 Exposition Gateway Infrastructure Improvements. The design contract for this project was approved by City Council on November 10, 2014. The project is to be funded through EBURD TIF and City funds.

• Sewer: Access to sewer service for the properties is, or will be, available in the area of these annexations. Service will depend on construction of City WO #15-08 Exposition Gateway Infrastructure Improvements. The design contract for this project was approved by City Council on November 10, 2014. The project is to be funded through EBURD TIF and City funds.

• Stormwater: All of the runoff from these properties will need to be contained on site and meet the City of Billings requirements for storm water management. Any future development will be constructed in compliance with City of Billings storm water regulations. Storm water management through the City system will depend on construction of City WO #15-08 Exposition Gateway Infrastructure Improvements. The design contract for this project was approved by City Council on November 10, 2014. The project is to be funded through EBURD TIF and City funds.

• Transportation: The properties petitioning for annexation have frontage on 2nd Avenue North, 3rd Avenue North, 4th Avenue North, North 7th Street, North 9th Street, North 10th Street, and Exposition Drive (Main Street). Access to the properties varies and infrastructure improvements are expected to clarify approaches and access based on the best design for the various street sections.

• Fire Stations: The properties are not currently served by the Billings Fire Department through the Billings Urban Fire Service Area. The Billings Fire Department will serve the properties upon annexation. The Billings Fire Marshall stated that the properties to be annexed contain both developed and undeveloped land and existing buildings and businesses in buildings may or may not be in compliance with the Fire Code. Upon annexation, the Billings Fire Department will conduct routine inspections (inspections are conducted of businesses in the City regularly) of the developed properties for compliance with Fire Code. The nearest fire station is Station #6, located at 1601 St. Andrews Drive, about 3 miles northwest of the subject property.

• Parks: The subject properties are zoned Controlled Industrial. 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. It is likely that the future zoning will also be predominantly commercial in nature and so it is unlikely that park land dedication will be required in the future. As currently developed, the property will have little impact on parks within the area.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. The Plan calls for bike lanes on 6th Avenue North, 4th Avenue North, and 1st Avenue North in the area of these annexations. The Exposition Gateway Concept Plan also calls for pedestrian improvements along Exposition Drive as well as the other streets in the area. Many of these improvements will occur with the large infrastructure project planned for this area but some will come in the future as other projects occur in the area.

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.

• Transit: MET transit system operators have no objections to the annexation request. Bus service is currently available through this area on 6th Avenue North, 4th Avenue North, 1st Avenue North, and along Exposition Drive (Main Street) on the eastern edge of the area.

• Police: The Police Department stated that these properties are near or within existing patrol areas.  Without additional resources, continued development and annexation will adversely affect the Department's ability to deliver services within the present city boundaries.

• Public Utilities: The Public Works-- Distribution and Collection Division had no objection to the annexation request.

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no problems serving the property. However, service will depend on construction of City WO #15-08 Exposition Gateway Infrastructure Improvements. The design contract for this project was approved by City Council on November 10, 2014.

• Public Works-Solid Waste: The Solid Waste Division had no concerns with annexing the property.

• 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; this annexation is 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 these annexations. The Finance Department responded that it did not see any issues with the petition requests. Legal staff also did not have any issues with the annexations proposed.

• Other Departments: City/County services including Library, Planning, and Environmental Health are only slightly affected by the annexation since they will continue to serve property whether in the City or the County. Planning staff stated that these annexation petitions are a result of a carefully planned attempt to revitalize the area and City services are necessary to support the best land uses.

Annexation of these properties would adhere to the following goals and planning principles of the Billings Exposition Gateway Concept Plan:

• Improve properties and enhance businesses
• Development that creates a distinctive gateway
• Provide lodging, dining, and visitor attractions
• Create infrastructure over time
• Phased redevelopment

Annexation of these properties would adhere to the following goals, objectives and policies of the Yellowstone County and City of Billings 2008 Growth Policy: 

• Contiguous development focused in and around population centers separated by open space (Land Use Element Goal, Page 6).
• Coordinated land use and facility planning among local governments, school districts, and private industries (Public Facilities and Services Element Goal, Page 14).
• Safe roadways supportive of vehicles, bicycles, and pedestrians ( Community Health Element Goal, Page 15).
• Visually appealing communities (Aesthetics Element Goal, Page 8).