Kalispell annexation requests test city policy

During a work session Monday, the Kalispell City Council and city planning staff considered two outlying annexation requests as a way to review an annexation policy adopted in March.

“This is an opportunity to see if [the policy is] workable as far as where we’d like to go with two real-life projects,” City Planning Director Tom Jentz said to open the two-hour meeting.

A developer working on phase two of the Trumbull Creek Crossing subdivision and the owners of the Majestic Valley Arena have filed city service and annexation requests in recent months.

Both properties sit outside the annexation boundary set up to help guide annexation decisions.

Under the policy, requests made inside that boundary would generally be recommended for direct annexation.

Requests made outside the boundary are considered on case-by-case basis for either direct annexation, a waiver of protest to annexation, the formation of an annexation district, or no action by the city.

Each option comes with criteria for city officials to judge projects based on their location, potential value to the city, growth patterns, and the extent to which services that can’t be provided by the city are available through other means.

Since each of those options must be approved by the council, city staffers said they want a better understanding of what planning staff should tell developers interested in city services when their projects are outside the city or its recommended annexation boundary.

“We want to make sure we’re telling our clients [the right thing] so we’re not leading them down a path,” City Manager Jane Howington said.

The discussion comes as the city looks to make sure outlying properties that seem likely to be annexed at some point in time are developed as close to city standards as possible; maximize use of its under-utilized utilities; and limit the risk of overextending itself.

It also comes in the midst of an economic downturn that has seen growth grind to a near halt, with housing starts down from 400 a year to 40 to 60 a year.

Under direct annexation, property is made part of the city and immediately offered all city services.

A waiver of protest to annexation grants access to some city services, but not all of them. In exchange, the property owner gives up the right to fight if the city ever wants to annex the land in the future.

An annexation district lets the city provide some city services and manage development just like it would elsewhere in the city. Rural agencies can keep providing services the city is not prepared to offer, but the district comes with an assurance that the city will be prepared to annex the land and take those services over within 10 years.

Bob and Jan Parker, owners of the Majestic Valley Arena, want the city to extend water and sewer service to 40 acres of vacant land that sits south of the arena, west of U.S. 93 and immediately north of Church Drive, a city street.

The Parkers are trying to put together a development package and business plan to complement their arena, but have been unable to tap into city water and sewer stubs already in place under Church Drive.

The stubs were installed at the city’s request by the developer of a subdivision across the street.

Jentz said the property meets two out of three criteria for direct annexation, but is not a good candidate for that action because it sits outside of the Kalispell Fire Department’s five-minute service area and would unduly stretch other city services.

The property also meets four or five of the six criteria for a waiver of protest to annexation and the criteria for an annexation district.

Under those options, the city could extend water and sewer service and guide future development.

The developeR behind Trumbull Creek Crossing wants access to city sewer for phase two and has asked the city to approve an annexation district.

The 160-acre subdivision, with 176 planned residential lots, sits north of phase one, a 54-lot subdivision located north of East Reserve Drive and about a quarter mile east of its intersection with U.S. 2.

Phase one got a waiver of protest to annexation and access to city sewer services through excess capacity granted to the Evergreen Sewer District.

Under the new policy, phase two would not qualify for direct annexation, Jentz said.

Like phase one, it could qualify for a waiver of protest to annexation.

It could also qualify for an annexation district, but it’s not clear if the city will grow enough to be ready to annex the property and provide all city services in 10 years.

“It becomes a policy question,” Jentz said to council members.

Council member Bob Hafferman said he wants to see the city hook up as many new sewer customers as possible, given the nearly two million gallons of excess capacity at the wastewater treatment plant.

He suggested a waiver of protest to annexation could give both projects the services they want without putting the city at risk of committing to more than it will be able to provide.

A waiver of protest to annexation could also include a negotiated and legally binding memorandum of understanding saying the developments must be built to city standards and include the collection of things like building permit and impact fees.

“I do not believe we should be going beyond the boundaries recently established and annexing . . . That waiver does not obligate us to do anything but what we can do,” Hafferman said.

Mayor Tammi Fisher said the city should offer the properties access to available utilities, but that’s all.

“Come use our utilities if you’d like to pay to hook up. If 10 years down the road they want to annex because we’re out there, that’s fine,” Fisher said.