McCall Development, Inc. and the Yellowstone Boys and Girls Ranch Foundation submitted a petition to annex land they own using the provisions of Section 7-2-4600, MCA. The subject property is Lot 1, Block 1, Adam and Mollie Walter Subdivision and totals about 35 acres. The property is undeveloped and is being used for agricultural production. It is located west of the Hogans Slough, south of Elysian Road, and east of East Lane. The owners are requesting annexation in order to begin developing the property in the City under a recently approved County Planned Development Zoning and with a City Major Subdivision, which is going through the preliminary platting process now and will come to the City Council in May. The property is currently zoned Planned Development for a mixture of residential and commercial uses.

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 March 28, the Council accepted the annexation petition for this property and set a public hearing date for April 25. 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 public lines in Elysian Road and through an easement on the subject property. Staff is recommending the two standard 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 a preliminary platting process has started, it is expected that an SIA will be executed in the near future and address that condition. Since this property is being developed for residential and commercial uses at fairly high density, the City should realize significant property tax revenue on a per acre basis and also will receive payment for fees and assessments for City services.

The subject property totals about 35 acres. It is located south of Elysian Road and East of East Lane. It is in an area of County that the City included in its Limits of Annexation Map for future annexation a few years ago and where the City recently constructed water and sewer trunk lines to serve Elysian School that recently annexed and other properties that are expected to annex and develop in this area. The property is currently used for agricultural activities. It is bordered on the east by the Hogan Slough. The property appears to meet some of the City's criteria in its Annexation Policy. The city limits border the eastern edge of the property.

PROCEDURAL HISTORY

• On February 16, 2016, the annexation petition was submitted to the Planning Division by the owner's agent
• On March 28, the City Council accepted the petition to annex the property and set a public hearing date for April 25.
• On April 25, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On May 9, if the City Council approves the annexation resolution, a public hearing and first reading of an ordinance to include the property in City Council Ward III will be conducted.
• On May 23 the City Council will conduct the second and final reading for the ordinance expanding the Ward III 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 April 8 and published in the Billings Times on April 7. 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. The proposed preliminary subdivision application process that has started for this property is likely to address the execution of a Subdivision Improvement Agreement prior to development of the property.
5. If annexed, any proposed land use will comply with the zoning. The property is currently zoned Planned Development for residential and commercial uses, and the development plans for the property will follow this zoning.

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 trunk water line currently in Elysian Road across the north boundary of the 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 an existing sanitary sewer line that runs from Elysian Road at the northeast corner of the subject property along the east side of the property along Hogans Slough. 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. A preliminary subdivision submittal is in review for the subject property and the developer has provided preliminary drainage plans and details of the sites' storm water system.

• Transportation: The subject property fronts Elysian Road and will have access from Elysian Road. As the development of the property is completed, an additional east/west access at the southeast corner of the property will be provided. As the development is extended in the future, streets will be extended westerly to East Lane.

• 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 #5, located at 604 South 24th Street, about 2.5 road miles north of the subject property.

• Parks: The subject property is to be developed with residential and commercial uses and significant park land development is planned for the property. The Planned Development zoning for the property and the preliminary plat under review show multiple park areas and linear parks throughout the property with planned connections to future development to the west and to the east. The Billings Parks, Recreation and Public Lands Department staff will review the proposed park areas as the property is developed.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. There is a long-range plan for a bike lane on Elysian Road and on East Lane. The developer of the subject property will be building a multi-use trail along the entire frontage of the property on the south side of Elysian Road and contributing to the construction of a pedestrian bridge over Hogan Slough adjacent to Elysian Road. The planned development for the subject property also is providing park land along the southern boundary near the Yellowstone River. This will provide an opportunity for future construction of portions of the Marathon Loop Trail along the southern end of the development.

• School facilities: The subject property would be served by Elysian School and Billings School District #2. Both districts are, and have, completed construction and redistricting efforts to address school capacities at all levels. However, as this subject  property develops and additional development occurs in the area in the future, additional school planning and projects may be needed.

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. However, the closest bus service to this property is about 1.5 miles to the northeast, north of the Mullowney Lane and Interstate-90 interchange.  Route changes are being planned that may provide better MET service to this area.

• Police: The Police Department staff stated that while additional patrol staff have been approved, continued annexation and development may affect response times.

• 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 8 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 supports the annexation because the property is in the Red Area of Annexation, has access to City services, and is in an area close to the Yellowstone River where development on municipal services reduces the impact to groundwater or surface water.

 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 Planned Development for Residential and Commercial uses. This zoning, if developed to its full capacity and density will provide more housing and 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. 
• Protect and increase the availability of public access to natural areas and trails along the River (Natural Resources Goal, Page 10). The proposed park areas and linear trail and park corridors will provide improved access to the Yellowstone River in this area of the community.