Council approves annexation and zone change for Hesper Road area after protracted debate; annexation agreement language deferred

The Billings City Council voted to approve Annexation 2602 and Zone Change 1079 for a 144-acre property west of Shiloh Road and north of Hesper Road, but deferred the annexation agreement so staff can return with specific wording requiring the developer to complete the south half of Hesper Road by a time certain.

Council members spent more than an hour debating how to close a roughly 350-foot gap on Hesper Road that sits between city-owned right-of-way on the south side and Knife River’s property on the north. Councilmember Roy Neese and others argued that leaving the short segment unimproved would create an ongoing congestion point and that, because the same owner controls land on both sides, it is reasonable to require the owner to build the missing portion when surrounding development proceeds. “This is one of the few times it makes sense to have the owner build out the full road section,” Neese said during discussion.

Knife River’s vice president and general manager, Malcolm Long, told the council the north parcel being annexed is being sold in phases and objected to language he characterized as coercive: “We are not developing both sides of this. We will stay here as an office and we are annexing only what’s to the north,” he said, asking council to allow more time for negotiation. City staff and other council members noted Knife River has previously agreed to phased development and that a compromise tying improvements to a phase deadline or a fixed calendar date would be acceptable.

After debate, the council approved both the annexation and the zone change votes on the merits but postponed consideration of the annexation agreement language to the first business session in July. Council instructed staff to return on July 13 with proposed amendment language that would require Knife River (or the subsequent developer) to build the south half of Hesper Road in coordination with the start of Phase 2 of the development or by 2029, whichever comes sooner. The postponement passed on a voice vote after councilmembers requested a short timeframe to allow staff to draft clear, enforceable language.

Background and next steps: The annexation and zone-change approvals allow the developer to pursue phased construction of mixed-use and residential parcels; the annexation agreement will set infrastructure obligations, right-of-way dedications and a timeline for completion. Councilmembers who pushed for the requirement said tying the road work to a phase or calendar deadline protects public safety and traffic flow; Knife River said it is willing to negotiate but warned against language that would obligate them prematurely to build improvements before the city or other partners are ready.