County Zone Change 723 - RR1 to C3 - This is a zone change request for property generally located at 1604 S 48th St West. This is the location of the Green Bee Dispensary (marijuana cultivation and retail sales) and for Yellowstone Basin Construction. The current zoning is Rural Residential 1 (RR1). Neither use on the property is conforming to the current zoning. The proposed zoning is General Commercial (C3). The property is legally described as C/S 2224 Parcel 2B, of amended Lot 2, a 2-acre parcel of land. The intent of the zone change is to allow two existing businesses to continue in conformance with the County zoning. The County Commissioners adopted a resolution in October 2023 (Res. No 23-116) that requires this marijuana dispensary location to come into conformance with County zoning on or before October 3, 2024. This requires either a zone change or a relocation of the dispensary to a conforming zone district.

The planning staff is recommending approval and adoption of the proposed findings of the 11 review criteria for the zone change.

OWNER: J. Doucette and J. Brosovich
AGENT: Neil Kiner, Second Nature Consulting and Green Bee Dispensary
LEGAL DESCRIPTION: C/S 2224 Parcel 2B
ADDRESS: 1604 and 1644 S 48th St W
CURRENT ZONING: RR1
EXISTING LAND USE: Green Bee Dispensary and Yellowstone Basin Construction - and one residence
PROPOSED USE: Same
SIZE OF PARCEL: 2 acres

None.

There is no zone change history for the subject property. The property was originally zoned Agriculture (A) in the county in 1973. In 2020, the County adopted new zoning regulations and maps to correspond to the new zone districts. The subject property was updated from Agriculture (A), which requires a 10-acre minimum lot area and a primary use for agriculture, to the Rural Residential 1 (RR1) zone district. The RR1 zoning district allows residential uses on lots of 1 acre up to 2.99 acres. The lots to the north and west of the subject property were also updated to RR1. This appeared to be an appropriate zoning district given the size of the property and the actual development on the property at the time. Several property improvements were done between 2019 and the present to build and remodel structures for commercial uses. The existing home is still used as a residence. The residence is not occupied by either the owner or the agent. Similar zone change requests for property on arterial streets with adjacent rural residential uses are summarized in a zone history table attached to this report.  

NORTH:	Zoning: RR1 Land Use: Vacant rural residential lot
SOUTH:	Zoning: Planned Development - underlying Neighborhood Commercial (PD-NC) Land Use: Land Design and Canyon Creek Nursery
EAST:	Zoning: Agriculture (A) Land Use: Farmstead and grazing land
WEST:	Zoning: RR1 Land Use: Rural residential dwelling

The parcel is owned by Jeremiah Doucette and Jake Brosovich. Two businesses occupy the property: Yellowstone Basin Construction (Jake Brosovich) and The Green Bee, a marijuana cultivation and dispensary owned by Neil Kiner (agent). The parcel was purchased from Larry Armstrong in 2018 when it was zoned Agriculture-Open Space (A-1). Mr. Armstrong sold the property after Land Design and the Canyon Creek Nursery, directly south of the subject property, received its zone change from A-1 to Planned Development with underlying zoning of Neighborhood Commercial.

The dispensary was established some time in 2018 or 2019, with the construction company locating equipment and storage on the property soon afterward. It is unknown whether the existing home is occupied. Between 2018 and 2021, the state of Montana did not require any local approval or notice of compliance with local regulations for marijuana sales or cultivation. The state law was changed following a successful ballot initiative in November 2020, to legalize the adult use of marijuana for any reason. In 2021, the state began to require local confirmation that marijuana uses were in an approved location. At that time, the County had a resolution in place that restricted marijuana “storefronts” (Res 11-71) based on previous state law provisions for cultivation and sales of medical marijuana.

In September 2021, the County decided it was important to have local zoning regulations to guide where marijuana businesses could or could not be located, acknowledging the existing 2011 resolution was no longer effective. The County Commissioners adopted “interim zoning regulations” in November 2021. Interim zoning is intended as a placeholder while the issue is studied, and final regulations can be crafted. There is a two-year time limit for interim regulations to be in place. The County adopted final zoning regulations in November 2023. The County also adopted a “sun-setting” resolution (23-116) for locations in the County that were noncompliant with zoning districts. This location is one of the six locations named in the resolution that are in noncompliant zone districts. The deadline for compliance with zoning districts is October 3, 2024.

The West Billings Neighborhood Plan was adopted by the County Commissioners and the City Council in 2001. In addition, the County adopted a county-wide growth plan in 2008. Both plans have goals and objectives that apply to this request for a zone change. Two parcels north of Hesper Rd on both sides of S 48th St West have been approved for commercial zoning in the last 10 years. This includes the storage unit parcel at 1455 S 48th St W, and the vacant parcels on the west side of S 48th St W in the Whitehorse Subdivision. Both properties were updated in the 2020 zoning update from Community Commercial to Heavy Commercial (CX) based on the existing use and planned uses on those parcels. The West Billings Plan encouraged the location of commercial zones and use at intersections of arterial streets. Hesper and S 48th St W are both designated arterial streets. The 2008 County growth plan indicated the need to provide predictable land use decisions based on the compatibility of uses with consideration of the character of the location and adjacent uses. A retail business and a construction firm are both allowed uses in the C3 zone, and may be compatible with the adjacent uses. It appears the owners have installed a vegetative buffer yard where the rear of the property adjoins the residential lots to the north and west. Compatibility is best maintained when new construction or uses are approved through the County Zoning Compliance permit system. 

The new C3 zone district requires building and siting standards that will require attention to detail along the property boundaries, the street frontage and within any parking areas for customers. The new zoning code takes into account the adjacent development and zoning for any required landscaping and screening. Any new construction or site development requires a zoning compliance permit and an approved landscaping plan. The applicant has no immediate plans for any new development of the site.

The planning staff has reviewed the application and the eleven review criteria for zone changes in the County. Planning staff finds the proposed zoning conforms to the adopted growth policy for this area and will be compatible with the adjacent zoning and uses. Several surrounding property owners have objected to the zone change even though the County did not received any prior complaint about the uses of the property prior to the application for the zone change.

The County Zoning Commission, prior to any recommendation to the County Commissioners, shall consider the following:

1. Is the new zoning designed in accordance with the Yellowstone County 2008 Growth Policy?
The proposed zoning does comply with the following goals of the Yellowstone County 2008 Growth Policy and area plans:

• Predictable land use decisions that are consistent with neighborhood character and preferred land use patterns identified in neighborhood plans.

This zone change would allow for two existing commercial businesses to conform to zoning in a location along an arterial street. The uses allowed within the proposed zone are appropriate at this location given the site development restrictions and the other requirements for commercial zones adjacent to residential zones. This is consistent with the West Billings Neighborhood Plan and the neighborhood character and the 2008 County Growth Policy.  

• Goal: New developments that are sensitive to and compatible with the character of adjacent development.

This property is adjacent to commercial uses to the south and within 500 ft of a major arterial intersection. The intended uses are compatible with some of the surrounding uses.   

2. Is the new zoning designed to secure from fire and other danger?
The subject property is currently served by the Billings Urban Fire Service Area (BUFSA). The nearest fire station is located at 54th Street West and Grand Avenue (Station #7) about 3.9 miles north and west of the subject property. The fire service is likely aware of the cultivation and processing facility for the Green Bee. The state licensing division requires compliance with state building and fire codes for these locations.

3. Will the new zoning facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: Development under the new zoning will not increase traffic on 48th Street West and Hesper Road. There is no proposed new development, just retention of the existing businesses. There is a concrete parking pad in front of the retail business and most of the construction storage and parking is the rear of all structures.
Water and Sewerage: The property will be served by a septic system and on-site water (cisterns or wells). City of Billings’ public utilities are not available and are not intended to be extended to this area for more than 5 years. 
Schools and Parks: The proposed zoning would not have any impact on schools or parks. The zoning does not anticipate any residential development and no parks are within the vicinity of the property.
Fire and Police: The subject property is serviced by the Billings Fire Department (BUFSA) and the Yellowstone County Sheriff’s Department. No new development is planned at this time.

4. Will the new zoning promote health and general welfare?
The new zoning will allow existing development of property to conform to the zoning district. It is adjacent to an existing commercial use (south) and within 500 feet of the intersection of two arterial streets in the County. Residential uses are to the north and west of the subject property. The zoning is not expected to have a negative effect on the health and general welfare of the area.

5. Will the new zoning provide adequate light and air?
The proposed zoning would require minimum setbacks, maximum building heights and maximum lot coverage. The maximum building height in the C3 zoning district is 60 feet, although a structure of this height would require more fire protection than is currently available. These requirements should allow adequate light and air to reach the subject property and adjacent properties.

6. Will the new zoning affect motorized and non-motorized transportation?
The proposed zoning itself will not generate more traffic on any of the adjacent streets.
Pedestrian traffic in the area is limited due to high-speed arterials, no pedestrian facilities, and large-lot residential development. The 2017 Bikeway and Trail Master Plan Update indicates 48th Street West and Hesper Road should provide separated and shared use paths and/or on-street bike lanes when they are reconstructed or modified in the future.

7. Will the new zoning be compatible with urban growth in the vicinity?
The proposed zoning is compatible with nearby urban zoning and development. However, lack of water and sewer infrastructure is likely to limit the types of development that may be supported on the property in the C3 zoning district. The proposed zoning and development are consistent with the area.

8. Does the new zoning consider the character of the district and the suitability of the property for particular uses?
The subject property is in an area that is primarily agricultural with a few small residential subdivisions, Land Design and Canyon Creek Nursery (south) and personal warehouse storage to the northeast. The property is suitable for C3 uses with access directly from an arterial street and no right of way connection to neighborhood uses. The two commercial uses of the property have existed for several years and have not resulted in complaints from adjacent owners.

9. Will the new zoning conserve the value of buildings?
The new zoning will allow the commercial and residential uses to conform to the zoning district. This will conserve the investment made in these commercial structures. No new structures or development are contemplated at this time. Placing the existing uses in the correct zone will add more predictability to the area.   

10. Will the new zoning encourage the most appropriate use of land in Yellowstone County?
The property is suitable for some of the uses allowed in the C3 zoning district. Without access to public utilities, many of the higher intensity uses could not be developed such as restaurants. The C3 zoning for this location adjacent to the Canyon Creek Nursery and Land Design office is an appropriate use for the land. Certain uses that generate high traffic such as restaurants and retail uses are not possible at this location without annexation and the provision of public water and sewer. The property is suitable for the existing development.  This area has been zoned agricultural and residential since 1973. This is an appropriate use of land in this area of the County.

11. Will the new zoning be as compatible as possible with adjacent zoning in the City of Billings?
The proposed zoning is close to the City of Billings and is compatible with the typical urban development close to an arterial intersection. 

 

The planning staff is recommending approval and adoption of the proposed findings of the 11 review criteria for the zone change.