Staff recommends that the City Council approve the Annexation Agreement with Dorn/Lowe LLC and Dorn Property & Homes LLC.

City Council will consider annexation of Tracts 1 and 2 of Certificate of Survey 2828.  The property proposed to be annexed is located west of Shiloh Road and south of Bell Avenue.  Typically, as a condition of approval of the annexation, the property owner enters into an Annexation Agreement with the City of Billings outlining necessary public improvements.  The Annexation Agreement outlines the off-site improvements necessary for development including access to the site and construction of water, sanitary sewer, and storm drain.  The Annexation Agreement provides for City required off-site improvements should the property be annexed and developed without a subdivision plat. The Annexation Agreement for this Council action generally includes the following conditions or improvements:

• Requirement for access;
• Requirements for extension of public water and sanitary sewer mains within the development;
• Construction of curb and gutter and sidewalk along the Bell Avenue property frontage; and
• Outlines requirements for a traffic impact study.

City Council may:

• If the annexation is approved, then approve the Annexation Agreement with the property owners; or
• Not approve the Annexation 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.  

There are several requirements of the Annexation Agreement that would not be required upon site development.  Section 2 requires that a 15-foot wide easement be dedicated along the southern boundary of the property.  Section 4 requires that the Monad Drain easement be dedicated to the City.  Section 5 requires the dedication of public right-of-way, if needed. 

The financial impact of the remainder of the 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.