Tule Ridge Developments, Robert Wattenbarger, agent, submitted a petition to annex land it owns using the provisions of Section 7-2-4600, MCA. The subject property is 11 acres in size and described as Lot 8, Sunny Cove Fruit Farms. The property is located at the southeast corner of Rimrock Road and 62nd Street West. The property is vacant and has been used for agriculture. The owner is requesting annexation in order to develop the property in the City for commercial uses. The property was recently zoned Community Commercial in the County and would retain this zoning upon annexation into the City.

The property is located within the City Annexation Petition Area on 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 July 25, the Council accepted the annexation petition for this property and set a public hearing date for August 8. 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 existing mains in Rimrock Road. 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 dedication of road right-of-way for future improvements at the Rimrock Road and 62nd Street West intersection; and/or that a Subdivision Improvement Agreement through a subdivision platting process be signed and recorded between the property owner and the City to identify infrastructure improvements and timing of those improvements to serve the property, and dedication of road right-of-way for future improvements at the Rimrock Road and 62nd Street West intersection. Since this property is being developed for commercial uses, the City will receive property tax revenue and payment for fees and assessments for City services.

The subject property totals about 9 acres, less the road right-of-way. It is located at the southeast corner of the intersection of Rimrock Road and 62nd Street West. There is property inside the City Limits to the north and west, and further east along Rimrock Road. The property is currently used for agricultural activities. The property appears to meet some of the City's criteria in its Annexation Policy. The City limits border the  northwestern corner of the property.

Montana Code Annotated §7-2-4211 requires that the City annex the entire right-of-way of Rimrock Road and 62nd Street West that is adjacent to the subject property. The north half of Rimrock Road adjacent to this property is a County Road Easement and runs across property owned by the Yellowstone Country Club. Staff has provided information to the Country Club regarding the annexation of the road easement and the Club's option to either quit claim the 30-foot-wide road easement to the City or retain the property under the road easement and have the easement portion annexed as part of this annexation. Given the timing of this annexation petition process and schedule, it is expected that if the Country Club decides to quit claim the road easement to the City, the City Council will be asked to accept the property transfer at a future meeting. If the Country Club decides not to quit claim the road easement portion of the property and retain it, the portion of the Country Club's property that is under the road easement will be in the City and subject to City taxes and assessments. 

PROCEDURAL HISTORY

• On May 25, 2016, the annexation petition was submitted to the Planning Division by the owner's agent
• On July 25, the City Council accepted the petition to annex the property and set a public hearing date for August 8.
• On August 8, the City Council will conduct the public hearing for the annexation and may take action on the request.
• On August 22, 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 IV will be conducted.
• On September 12, the City Council will conduct the second and final reading for the ordinance expanding the Ward IV 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 July 22 and published in the Billings Times on July 21. The Planning Division has not received any inquiries about this petition at the time this memo was prepared.

Although Montana Code does not require the City to prepare a provision of public services plan for Annexation by Petition (Section 7-2-4600, MCA), it is the City’s custom to have staff prepare a brief analysis of predicted impacts to services and facilities, and information on how services will be provided to the property after annexation. The proposed annexation complies with the adopted Annexation Policy criteria as follows:

1. The area is located within the City's Annexation Petition Area on its Limits of Annexation Map.
2. The City is able to 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 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 Community Commercial for commercial or residential uses.

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 main located in Rimrock Road  across the north boundary of the property. The subject property will be responsible for extending a service main and connecting to the main at the time of development since the property fronts 62nd Street West and a water main must be run to the southern property boundary.

• Sewer: The property will be served by an existing sanitary sewer main located in Rimrock Road across the north boundary of the property. The subject property will be responsible for extending a sewer main and connecting to the main at the time of development since the property fronts 62nd Street West and a sewer main must run to the southern property boundary. 

• 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.

• Transportation: The subject property fronts Rimrock Road and 62nd Street West. The property is expected to have access from 62nd Street West but access to Rimrock Road will have to be assessed in coordination with the redesign of the intersection. The specific development plans for the property also will be a factor in the traffic access and circulation into and out of 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 #7, located at 1502 54th Street West, about 2 road miles southeast of the subject property.

• Parks: The subject property is planning for commercial uses, so park land dedication may not apply during the subdivision review process. If the property does develop with residential uses, the Billings Parks, Recreation and Public Lands Department staff will review the proposed park areas.

• Bicycle and pedestrian facilities: The property lies within the jurisdiction of the Billings Area Bikeway and Trail Master Plan. The Plan identifies a long-range plan for bike lanes on Rimrock Road and 62nd Street West along the frontage of this property. The developer of the subject property will be required to either build or make contributions to frontage improvements on Rimrock Road and 62nd Street West that will include pedestrian and bike facilities.

• School facilities: The subject property would be served by Billings School District #2 for elementary, middle school and high school. The property is expected to develop for commercial purposes and should not demand additional classroom space.  However, the District is completing construction and redistricting efforts to address school capacities.

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 2.5 miles to the east at the intersection of Shiloh Road and Rimrock Road, so there is no usable service to this property.  There is no current plan to provide bus service to this area.

• Police: The Police Department staff stated that while additional patrol staff have been approved and there is City development around the subject property, continued annexation and development without additional resources will make service delivery more challenging.

• 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 has no concerns with annexing the property, but pointed out that State Law allows the property owner to choose which 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 and did not have any concerns with the request.

• 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 City Annexation Petition Area, has access to City services, is at a major intersection that in the long term should develop to City standards, and is zoned for commercial development, which is expected to bring in more revenue to cover the costs of delivering services to the property. 

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

• 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 and surface water are protected by the use of municipal water and sewer systems. 
• Predictable land use decision that are consistent with neighborhood character and preferred land use patterns identified in neighborhood plans. (Land Use Element, page 6). While the property is currently surrounded by agricultural and low-density residential development in the County, the property is located at a major intersection and commercial nodal development may be suitable. There is already about 16 acres of Community Commercial zoning to the northwest of this property in the City and development of this property would create a node of service commercial development at a busy intersection in a mixed City/County area. 
• New developments that are sensitive to and compatible with the character of adjacent development. (Land Use Element Goal, page 6). This property is adjacent on three sides to low density residential zoning with agricultural and residential development but is also at a major intersection that is expected to develop in the City to urban standards in this area that the City has designated for future annexation.

Annexation of this property would adhere to the following goals, objectives and policies of the 2001 West Billings Plan:
 

• Limit community commercial centers to appropriate intersections of arterial streets and spaced no less than approximately two miles apart. Community commercial centers should be compatible with the surrounding area and designed to serve the overall West Billings community. (Planned Growth Goal 1 (B2), Page 17)
• The West Billings Plan also states under Planned Growth Goal, Policy B, Page 17: "With the intent of preventing strip commercial development, the West Billings planning area should contain commercial nodes of varying sizes located at the intersections of arterial streets. These commercial nodes may vary in size based on special circumstances such as topography and adjacent uses."