Phillips 66 Company submitted a petition to annex land they own using the provisions of Section 7-2-4600, MCA. The subject property is Tract 11, Certificate of Survey 1406, Amended and totals about 3.5 acres. The property is undeveloped and does not have an address. It is located just east of the United States Post Office on South 27th Street between Lillian Avenue and what would be 7th Avenue South (a private road in this area). The owners are requesting annexation in order to begin developing the property in the City with an office building and staging/storage yard. The property is currently zoned Controlled Industrial.

The property is located within the five-year annexation area of the City's Limits of Annexation Map and appears to meet some of the City's criteria in its Annexation Policy. 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 February 8, the Council accepted the annexation petition for this property and set a public hearing date for February 22. At this meeting, the Council will conduct the hearing and decide if it will annex the property.

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 the request before taking action.

The City is able to provide municipal water and sewer to the subject property via private lines off of 7th Avenue South. Staff is recommending two conditions of approval for this annexation: That a Development Agreement be executed with the City to identify infrastructure improvements and timing of those improvements to serve the property; and/or that a Subdivision Improvement Agreement be signed and recorded between the property owner and the City to identify infrastructure improvements and timing of those improvements to serve the property through a subdivision platting process. Since this property is being developed for commercial uses, the City will realize property tax revenue and also will receive payment for fees and assessments for City services.

The subject property totals about 3.5 acres. It is located between the United States Postal Service property near South 27th Street and Interstate 90, and between Lillian Avenue and 7th Avenue South. The property is vacant and includes the Yegen Drain, which flows across the eastern boundary of the property. The property is located within the five year annexation area of the City's Limits of Annexation Map and appears to meet some of the City's criteria in its Annexation Policy. The city limits border the western edge of the property.

PROCEDURAL HISTORY

• On December 18, 2015, the annexation petition was submitted to the Planning Division by the owner's agent
• On February 8, the City Council accepted the petition to annex the property and set a public hearing date for February 22
• On February 22, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On March 14, if the resolution to annex is approved by the City Council, a public hearing and first reading of an ordinance to include the property in City Council Ward 1 will be conducted.
• On March 28, 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 February 5 and published in the Billings Times on February 4. 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 require 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 annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the Limits of Annexation.
2. The City is able to adequately provide municipal water and sewer services to the property.
3. Any proposed public improvements within the area to be annexed will meet City standards.
4. All property owners within the area to be annexed must sign a Waiver of Right to Protest future Special Improvement Districts. The proposed conditions of annexation in the Resolution that the property owner enter into a Development Agreement or Subdivision Improvement Agreement with the City will ensure that the waiver is signed. 
5. If annexed, any proposed land use will comply with the zoning. The property is currently zoned Controlled Industrial.

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. The County Public Works Department did not respond to this annexation request. 

City Facilities:
Specific comments from City Departments are provided below:

• Water: This property is intended to be served by a water lines currently in the South 7th Avenue corridor in this area where it runs through private property. The subject property will be responsible for connecting and extending service lines at the time of development. 

• Sewer: The property will be served by sewer mains that run from Lillian Avenue north and south across the subject property.The subject property will be responsible for connecting and extending service lines at the time of development. 

• Storm water: All of the storm water runoff from this property will need to meet the City of Billings requirements for storm water management. Any future development will follow the City of Billings storm water regulations. At the time of preliminary subdivision or development plan submittal, the developer will provide preliminary drainage plans, a geotechnical/hydrological report, and detail the specific of the sites' storm water system.

• Transportation: The subject property has the most direct access via private road on what would be an extension of 7th Avenue South on the north side of the property. There is also the potential for private access from the south, connecting to Lillian Avenue. The property owner has control over the private accesses and will be able to provide access out the public right-of-ways of Lillian or 7th Avenue South for the property.

• Fire Stations: The subject property is currently served by the Billings Fire Department through the Billings Urban Fire Service Area and the Billings Fire Department will continue to serve the property upon annexation. The Billings Fire Chief stated that as this and other annexations are built out, additional fire department resources will be needed. The nearest fire station is Station #2, located at 501 South 28th Street, about 0.5 miles northwest of the subject property.

• Parks: The subject property is to be developed with commercial and industrial uses and so park land is not likely to be an issue at time of development of this property. However, South Park is located about half a mile west of the subject property and Coulson Park is about one third of a mile east of the subject property and near the Yellowstone River.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. Since the property does not have any frontage on public streets, there are no planned on-street bicycle or pedestrian facilities that would be adjacent to this property. However, there is a long-term plan for a pathway access from Lillian Avenue or South 25th Street West going east under Interstate 90 to the trail corridor at Coulson Park. While the subject property may not participate in this pathway opportunity, it may be that other property owned by Phillips 66 in this area might be able to accommodate a pathway easement in the future. This is a discussion City staff will initiate further with Phillips 66 as development of the subject property and other property in the area moves forward.

• School facilities: The subject property would be served by Billings School District #2.Billings School District #2 did not respond, but since this property is to be developed for commercial and industrial uses, there should be not impact to schools 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, however the Fire Department in its comments above did note its concerns as additional property is annexed into the City.

• Transit: MET transit system operators have no objections to the annexation request. Bus service is currently available near this property on South 27th Street, about three blocks west of the subject property.

• Police: The Police Department staff stated that this property is in an area that is already mostly in the City and may be included into patrol area #5.

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

• Public Works -Street and Traffic Division: The Street and Traffic Division stated that it has no concerns with serving the property.

• Public Works-Solid Waste: The 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 9 minutes. 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 was in support of annexation of the property as it is in the Red Area of Annexation and has access to City services, but noted that access to the property is currently private. It was also noted that it would make sense for additional property in this area between South 27th Street and Interstate 90 to be annexed into the City for redevelopment on City services.

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

• More housing and business choices within each neighborhood (Land Use Goal, Page 6). The subject property is zoned Controlled Industrial. This zoning, if developed to its full capacity and density will provide more business choices in this area of the Community.
• Protection of groundwater, surface water, riparian areas, air quality, and productive agricultural lands (Natural Resource Goal, Page 9).  Development of this property within the City will ensure that groundwater, surface water, and riparian areas are protected by the use of municipal water and sewer systems.