Ron Hill, owner of 20 of the 22 lots proposed in the SID 1403 district boundary, desires to construct public improvements on Gleneagles Boulevard between Cherry Hills Road and Lake Hills Drive and a short extension of Lake Hills Drive. These improvements generally consist of water, sanitary sewer, storm drain, curb and gutter, and street improvements to Gleneagles Boulevard and Lake Hills Drive. Ron Hill will pay a cash contribution for 17 of his lots.  This is necessary to meet the requirements of the City's Raw Land District Requirements (Resolution No. 87-15592). The City will be making a cash contribution in the amount of $80,549.48 to the project. This will pay for the City's portion of Gleneagles Boulevard because it is classified as an arterial street.  Between Ron Hill's and the city's cash contribution, this represents 77% of the total project costs.

The Council may:

• Approve the Resolution of Intent to Create SID 1403 and set a public hearing for the November 13, 2017, City Council Meeting; or
• Not approve the Resolution of Intent to Create SID 1403.  If not approved, Gleneagles will not be constructed by adjacent property owners and Lake Hills will not be constructed.  Both of these streets need to be constructed to make the 22 lots constructible.

The total estimated costs of the improvements are $1,061,380.98. The costs of the improvements are to be paid from the following sources: (1) $240,000.00 of Special Improvement District bonds; (2) $740,831.50 of cash contribution by Ron Hill, which is the assessment for 17 of the 22 lots in the District; and (3) $80,549.48 of cash contribution from the City of Billings out of arterial and gas tax funds.

Staff recommends that Council approve the Resolution of Intent to Create SID 1403 and set a public hearing date for November 13, 2017.