Staff recommends that the City Council approve the development agreement with McCall Development. 

At the December 14, 2020 meeting, City Council will consider annexation of Lot 2A, Block 1, Adam and Mollie Walter Subdivision.  The property is located south of Elysian Road east of East Lane.  The property is proposed to be subdivided in the future for residential development.  Typically, as a condition of approval of the annexation, the property owner is to enter into a development agreement with the City of Billings outlining necessary public improvements. The property owner has submitted the attached Development Agreement and the Council will consider whether to approve the agreement.  

City Council may:

• If the annexation is approved, then approve the development agreement with the property owner; or
• Disapprove the development agreement.  If the agreement is not approved, the responsibility for infrastructure improvements would be in accordance with policies in place at the time of development. 

The financial impact of this agreement is dependent on policy changes that may occur before development.  If development occurs before any changes to the City's development policies, there would be no financial impact.  If development occurs after City development policies change, the financial impact would be dependent on the changes.  In addition, the City does not currently have a policy in place to collect reimbursement for utilities that were installed using City funds adjacent to the property.  This development agreement requires the developer to reimburse the City for the sanitary sewer line that was installed along the southern boundary of the property in 2015 and the water main installed in Elysian Road.  If this agreement is not approved, the developer would not be required to reimburse the City for that portion of sanitary sewer line and water main.