Memorandum
REPORT TO:
City Commission
FROM:
Tom Rogers, Senior Planner
Chris Saunders, Community Development Manager
Erin George, Director of Community Development
SUBJECT:
Resolution and Provisional Ordinance Adoption of the BRC North Loop, LLC Annexation and the Establishment of Municipal Zoning (Formally Called PDI Investments), Addressed as 2777 North 7th Avenue, Annexing 2.002 acres, Application 20346
MEETING DATE:
October 20, 2026
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Consider the Motions:
Prior approval affirmation
Having reviewed and considered the terms of annexation, staff analysis, materials provided, public comment, and all information presented, I find the prior Commission approval to annex the BRC North Loop annexation is valid, is in the City’s best interest, and remains in effect.
Revised terms of annexation
Having reviewed and considered the terms of annexation, staff analysis, materials provided, public comment, and all information presented, I hereby adopt the Resolution of Annexation for Application 20346, the BRC North Loop Annexation, and direct the City Manager to accept and sign the Annexation Agreement.
Provisional Adoption of Ordinance
Having reviewed and considered the staff analysis, materials provided, public comment, and all information presented, I hereby provisionally adopt the Ordinance for Application 20346.
STRATEGIC PLAN:
BACKGROUND:
The property owner and Applicant for theBRC North Loop (formally called the PDI Investments) annexation application requests to complete the annexation process based on a March 9, 2021, approval. Several of the terms and contingencies applied to the application in 2021 are no longer relevant or impossible to meet. In addition, the work necessary to connect to city services was required to be completed by September 2022. Therefore, the Commission must determine if the prior approval is still consistent with City priorities and modify the terms of annexation from the previous approval.
On March 9, 2021, the City Commission voted (4:1), Commissioner Wallner dissenting, to annex an existing wholly surrounded parcel of property subject to terms of annexation and voted (5:0) to establish an initial zoning designation of B-2 to the property, subject to contingencies necessary to complete the application processing.
Staff Report [External Link]
March 9, 2021, Agenda [External Link]
City Commission Minutes [External Link] from the March 9, 2021, meeting
Video recording [External Link] from the public hearing
At the time of annexation city utility services were some distance from the subject property and would have required considerable investment to construct necessary sewer and water mains to serve the property in the yet to be constructed Flora Lane and Cultivar Street right-of-way. At that time, initial discussions and plans were being developed for the North Park Industrial Park. Based on this context, working collaboratively with the applicant, staff suggested unique terms of annexation to allow the application to proceed while ensuring all policies and requirements associated with annexation were met, including a timing component that the final process would not drag on indefinitely.
The North Park development has constructed required infrastructure to serve development on site. Those improvements include construction of Flora Lane, Cultivar Street, and sewer and water service adjacent to the PDI Investments property.
Subsequently, the property was acquired by BRC North Loop, LLC in July 2026. The new property owner reviewed the revised annexation agreement and is in support of the proposed edits and stated their intent to complete the annexation process.
Staff Analysis
Analysis of the terms of annexation and contingencies for the adoption of municipal adoption reached a supportive conclusion. In addition, staff evaluated the revised City Annexation policy, Resolution 2025-07 [External Link], and found no conflicts with the prior approval.
The following discussion provides justification for the proposed modifications to the terms of annexation approved by the Commission, shown as strike-out and underlying in the attached draft annexation agreement.
Term #11 (10). Municipal Service Connection – Sewer
Sewer service is constructed and is available in adjacent streets. There is no immediate requirement that an annexed property connect to city service upon annexation. City annexation policy restricts property from connecting to city services without being annexed first. Once the property is formally annexed, the property owner can design and construct the service connections. Standard practice has allowed property owners to connect, when necessary, due to a system failure or with further development. Therefore, staff suggests striking the immediate connection requirement. The applicant has stated their intent to connect as soon as possible upon annexation. The applicant is in process of connection. If the Commission considers a specific timeframe for connection after annexation to be necessary, Staff suggests within 90 days of recording of the Resolution of Annexation.
Engineering included a requirement that the sewer connection designs and “Notice to Proceed” be on file with a Pre-construction meet prior to September 2022. This step was missed. Staff requests the Commission to determine if the prior approval is valid and if the final steps can proceed. Staff recommends removal of this term of annexation as no longer relevant. See the prior approval affirmation motion.
Term #12 (9). Municipal Service Connection – Water
Water service is constructed and is available in adjacent streets. There is no immediate requirement that an annexed property connect to city service upon annexation. City annexation policy restricts property from connecting to city services without being annexed first. Once the property is formally annexed, the property owner can design and construct the service connections. Standard practice has allowed property owners to connect when necessary and with further development. Therefore, staff suggests striking the connection requirement. The applicant has stated their intent to connect as soon as possible upon annexation. If the Commission considers a specific timeframe for connection after annexation to be necessary, Staff suggests within 90 days of recording of the Resolution of Annexation.
Term #13 (7, 11). Legal and Physical Access
There are two parts to this term. First, Montana Department of Transportation (MDT) has no record of granting access to North 7th for this property. Secondly, there is a requirement to abandon North 7th access and construct a new access onto Cultivar Street.
The City requires legal and physical access to a property prior to development. The existing access has never been reviewed or approved by MDT therefore, a term was included that prior to final annexation approval the applicant must provide the City an approved encroachment agreement from Montana Department of Transportation for the drive access.
An additional term was included stating that the Annexation Agreement must require and include notice that the applicant must abandon their east North 7th access and construct their future primary access off the proposed Cultivar Street extension when Cultivar Street has been constructed and formally accepted by the City. The intent of this term was to abandon the North 7th access if MDT did not approve the existing encroachment. Ongoing discussions with MDT indicate their desire to permit encroachment with a right-in and right-out restriction. As discussed below, the access to N 7th affects fire service.
The secondary access, or primary access if MDT does not grant an encroachment, must be constructed. Engineering has determined access from the existing parking lot on to Cultivar is possible and agreed on its general location. The applicant has submitted preliminary designs for construction. Therefore, within 90 days of final annexation approval, the applicant must establish two points of access to the site that reduce all dead end driveway segments.
If the existing access will not be used, or if MDT approval is not granted and no extension is requested or approved, the applicant must abandon and remove the existing access within 90 days of final annexation approval, or within the approved extended timeframe.
Term #14 (6). Fire Apparatus Turn Around
At the time of annexation application review the only street adjacent to the property was North 7th Avenue. Therefore, the Fire Department required that, prior to final annexation approval, the applicant must construct a fire apparatus turnaround with an all-season road base at least 20 feet wide reviewed and approved by the Bozeman Fire Department.
With the construction of Cultivar Street and Flora Lane the site is bounded on three sides by streets. An access will be constructed from the parking lot to Cultivar Street to the north. The additional access provides the necessary circulation to safely maneuver emergency vehicles through the site and eliminates the need for a fire apparatus turn around. Engineering has determined access from the existing parking lot on to Cultivar is possible and agreed on its general location. The applicant has submitted preliminary designs for construction. Construction will be completed by October 1, 2026.
Construction of secondary access to Cultivar Street renders the fire turnaround moot. Staff recommends removal of this term of annexation.
In addition, based on the evolving conditions on the ground including the construction of a fire hydrant on the northeast corner of Cultivar and Flora (No. 3253) determined that no additional fire hydrants are needed to serve the property.
UNRESOLVED ISSUES:
As described in the background discussion and suggested motions.
ALTERNATIVES:
- Find that Term 11 was violated and the preliminary approval is null and void and, if desired, require the applicant to re-apply for annexation and follow the revised Annexation Policy review criteria and the associated zone map requirements,
- Find that annexation is in the best interest of the City, that the revised terms of annexation are are in substantial compliance with the City’s annexation policies, and adopt the Resolution of Annexation with suggested modifications to the terms of annexation agreement,
- The Commission suggests additional modifications to the terms of annexation and direct staff to prepare a revised annexation agreement for all parties to sign and bring the agreement back to the Commission for consideration, or
- As determined by the Commission.
FISCAL EFFECTS:
No unusual fiscal effects have been identified. No presently budgeted funds will be changed by this Annexation or Zone Map Amendment. Future development will incur costs and generate review according to standard City practices.