Miles City considers annexing industrial site leases and directing cannabis tax to capital improvements

At the Jan. 13 Miles City Council meeting Mayor Chris Grenz said the city should annex industrial site leases and consider bringing businesses along Haynes Avenue into city limits to expand the tax base. City Attorney Dan Rice told the council the industrial site is city-owned and therefore not likely to attract protest, and he and city staff will examine the annexation process.

Council members raised questions about who would be responsible for maintaining roads in newly annexed areas; the council suggested including maintenance responsibilities as lease service extensions. Jerry Muggli asked about renewing his industrial lease and Contract Planner Nelson said he would follow up with Muggli.

Mayor Grenz also proposed placing cannabis tax revenue into capital improvement funds so the city could use those funds as local matches when applying for grants; Councilmember Ed Pulecio said he supported using the revenue for capital projects and noted it could also cover legal fees or annexation costs. During the same agenda section, the council reviewed two TIFD award requests — a $17,316 request for facade and siding work at 114 N 7th Street and a $27,000 request for the Miles City Youth Baseball Association — and voted to postpone both awards until the next meeting. Councilmember Jeni Losey asked for clearer criteria and staff recommendations on TIFD applications, and Councilmembers Bartholomew, Pulecio and Losey volunteered as city representatives to the TIFD board.

Next steps recorded in the meeting minutes include staff follow-up on lease-renewal inquiries, city attorney review of annexation steps, and returning the TIFD awards to a future agenda with additional documentation.