Council delays annexation of Long Subdivision after dispute over fill and settlement terms

The City Council on May 11 postponed action on a multi‑parcel annexation and zone change for the Long Subdivision, a roughly 144‑acre site west of Shiloh Road owned by Knife River, after staff and the developer disclosed a signed but contested settlement about fill material and stormwater handling.

Planning staff had recommended conditional annexation and a CMU2/NX3/P1 zoning mix to accommodate a mix of corridor mixed‑use, higher‑density residential and park/open space. The proposal included phased annexation and an annexation agreement addressing infrastructure, park maintenance district membership and waivers of protest rights for special improvement districts.

During the hearing council members and staff raised technical questions about reimbursement for existing water/sewer lines, stormwater plans tied to city reservoir property, and whether off‑site stormwater storage (on city land) and treatment conditions were appropriate. City staff said the city believes it satisfied its settlement obligations; Knife River representatives said there remained a dispute about the measured yards of fill (staff estimated the disagreement in the tens of thousands of cubic yards).

Citing unresolved technical and legal issues, council substituted a motion and voted to postpone consideration of annexation 26‑02 and related zone change for up to 90 days to give the parties time to resolve disputes and report back. The vote was not unanimous; several council members opposed postponement. Staff said they will schedule an executive session to brief council on outstanding litigation or settlement details.

The delay pauses approvals that would allow the property to attach to city services and proceed with neighborhood‑development review, pending reconciliation of the fill/settlement questions and related infrastructure clarifications.