The Planning staff is recommending approval of the proposed zone change based on the findings of the 10 review criteria for Zone Change 1056. The Zoning Commission conducted its public hearing on December 3, 2024. The commission failed to reach consensus on the recommendation. This meeting will be to debate and vote on a motion to either recommend approval or recommend denial to the City Council. The City Council hearing is scheduled for January 27, 2025.

This is a revised zone change application for a new certificate of survey (C/S 3894) created in the High Sierra neighborhood in Billings Heights north of Skyview High School and adjacent to the existing city limits. The original zone change plan submitted in August 2024, has been revised by the applicant in response to the Planning staff's original findings and public comments submitted before the October 1, 2024, Zoning Commission hearing.

The High Sierra neighborhood began development in 1984 and is still filing extensions of the subdivision to the north. There are now 21 filings for the High Sierra neighborhood with a 22nd subdivision in the preliminary stages. The 22nd subdivision filing preliminary plat is not part of the subject property for this zone change. The original subdivision set out 44+ acres for a new high school for Billings Heights as well as the initial residential homes on Fantan St, High Sierra Blvd, Picador Pl, Siesta Ave, Morroco Blvd and others south of Sierra Grand Blvd. The original zoning consisted of a single family district (R96), a commercial zone west of Gleneagles Blvd (CC), and the public zoning for Sky View High School. The second filing of High Sierra was not filed until 2002 and divided land west of the high school for churches, civic uses, and several other large parcels that ended up as city parkland. High Sierra Subdivision totals about 675 acres and has 264 vacant acres of land owned by builders, and 18 vacant acres of land owned by the school district (north of Sierra Grand Blvd). There are about 41 vacant acres of land owned by religious entities. About 50% of the total land area is not yet developed. Thirty-one percent of the developed land is for residential dwellings, with 204.4 acres (30%) of developed public land for parks, schools, and other civic uses. Nearly 70% of the 675 acres is currently zoned N3 - Suburban Neighborhood, 30% is zoned Public 1 or Public 2. A very small percentage - 1.2% is zoned for residential use of more than one single family dwelling. This zoning is concentrated on the Wicks Lane frontage and consists of Mid-Century Neighborhood (N2), Mixed Residential 2 (NX2), and Corridor Mixed-Use 1 (CMU1).

There are 1,000 residential dwellings built within the High Sierra subdivisions and 90% of these units are owner-occupied. This high percentage is unusual for most Billings residential neighborhoods, which consistently average about 65% owner-occupied. In addition, 70% of the High Sierra land area has been zoned for single-family dwellings. Changes in State Law in 2023 now allows two units in all residential zoning districts, however areas of High Sierra already developed for single family homes is likely to remain as is given the stability of neighborhoods in the area. This is a high percentage for most Billings neighborhoods, where 50 to 60 percent on average is zoned N3. One of the goals of the 2016 Growth Policy was to ensure that each neighborhood had a mix of housing choices available. This means that new neighborhoods or even existing neighborhoods should allow, through zoning, all housing configurations including single-family, two-family, townhomes, patio homes, and multifamily structures. Neighborhoods that allow this variety are also more financially sustainable for the community, and resilient to changing market forces. A homogeneous zoning pattern can lead to fragility due to market forces, and the inability of the city to provide cost effective services to a geographically sprawled out neighborhood as costs continue to increase year over year.

The proposed zone change as originally submitted in August 2024, was found by Planning staff to not entirely conform to the 2016 Growth Policy to increase housing choices or with the existing Heights Neighborhood Plan. The proposed layout of the five new zone districts placed all the highest density development on the edge of the city limits where future development may or may not occur. There are no definitive plans for the 1,000+ acres north of the High Sierra Subdivision. It is within Zone 1 of the Limits of Annexation for the city. Most of this land is not owned by this applicant. Planning staff presented those findings to the applicant and to the Zoning Commission for consideration in September 2024. The applicant requested a delay from the October 1, 2024, hearing date in order to consider a re-arrangement of the zoning plan.

The proposed new zoning is in direct response to Planning staff concerns and some of the concerns expressed by the surrounding property owners in the High Sierra neighborhood. The new proposed plan includes more NX1 (1-4 unit buildings) zoning along the periphery of the subject parcel with provisions for alley separations. The previous plan had 42% of the area in NX3 (5+ unit buildings) and the new plan has reduced it to 26.7% and placed all the NX3 zoning internal to the site. The N1 district has been expanded to streets along the periphery of the subject parcel to the south and the proposed commercial corner (CMU1) has been moved to the north side of the Annandale and High Sierra Blvd intersection. Good planning includes consideration of existing and proposed future land uses, ensuring compatibility between the developing areas and future development. The proposed new zoning plan accommodates the uncertainty of adjacent land outside the city limits and is more compatible with the N3 (1 and 2 units) zoning that will remain for the High Sierra neighborhood as it builds out to the north and west. The owner does not intend to change other parts of the High Sierra subdivision at this time.

Planning staff also had concerns with the previous zoning plan and the transportation network in this area of Billings Heights. Much higher levels of traffic would be added to the existing street network with a high percentage of NX3 zoning. The reduction in the NX3 zoned area alleviates this concern. High Sierra Blvd, which is a collector street, will extend north into the subject property as shown on the proposed zoning map. Planning for a small amount of commercial zoning at the intersection of Annandale Rd and High Sierra Blvd makes sense as this neighborhood continues to build-out with no local or neighborhood services. The lack of these local services can contribute to traffic congestion by requiring a car trip for every necessity. The N1 zoning also makes sense to allow smaller lots and to allow the option for two-family dwellings. The proposed NX1 zone has been amended slightly and replaced with N1 zoning along the north side of a future extension of Vesca Way. The N1 zone will be compatible with the N3 zone on the south side of Vesca Way. The N1 and NX1 zones are compatible due to the building and siting requirements that are similar. Annandale and High Sierra Blvd will have temporary dead ends at the city limits' boundary. Extension of these streets to connect to Alkali Creek Rd (Annandale) and Alexander Rd (High Sierra Blvd) will be done in the future when property is developed.

The applicant submitted a preliminary letter to the City Traffic Engineer, Dakota Martonen, PE, PTOE, estimating the future traffic volume based on the revised zoning plan. The city's Long Range Transportation Plan (LRTP) has already estimated traffic volume on existing arterial and collector streets out to the year 2045. The proposed zoning plan traffic volume estimate for High Sierra Blvd exceeds the 2045 LRTP volume estimate for this collector. The letter, however, states the design of the two-lane collector can accommodate the additional traffic volume without adding lanes or additional right-of-way. City Traffic Engineer Dakota Martonen concurs with this finding. A future subdivision based on this new zoning will require the developer to update the existing Traffic Impact Study to include a review of intersections within the area. Intersections experience more impact from high traffic volumes than corridors. This information will be available for review at the time of a future subdivision.

Planning supports zoning that allows a variety of housing options in neighborhoods. This application has been refined to ensure compatibility and connections to existing and planned city services and will not force higher densities to the edge of the city limits. The proposed new zoning plan is conforming to the 2016 Billings Growth Policy that indicated the preferred growth scenario for this area of Billings Heights should allow a medium density of development (9-15 units per acre), as well as higher densities and neighborhood services on arterial streets and corridors. Planning recommends approval of this proposed zone change in this configuration.

The applicant conducted a pre-application meeting on June 12, 2024, at the Lake Hills Golf Course. The meeting was attended by at least a dozen property owners. The mailed notification area for this property is a 1/4-mile radius. Questions were mainly concerned with public safety, traffic, and density within the area proposed for the NX3 zoning. The pre-application information is attached to this report. 

Soon after the pre-application meeting, planning staff started to receive emails of opposition and concern about the proposed zone change. The planning staff has collated these emails from the original application and these are attached to the report. The primary concerns reflect those expressed at the pre-application meeting about traffic, higher density, public safety, and school population. The planning staff posted the zone change in September and again in November at the closest public right of way in two places - the dead-end of Las Palmas and the southwest corner of Gleneagles and Cherry Hills Rd. A legal ad was published in September and November, the updated application details are published on the Current Zoning Applications' web page, and notice was mailed to the 98 owners within 1/4-mile of the subject property. In addition, 78 persons were notified via email of the updated application in November.

New emails have been received based on the updated application. Those emails are included as a separate attachment to this report.

Zoning Commission hearing December 3, 2024
The Zoning Commission met on December 3, 2024, and received the Planning staff report, testimony from the applicant's agents John Halverson and Joey Saszcuk of SanBell, as well as testimony from the following surrounding property owners: Cindy Osland of 1435 Benjamin Blvd, Lee Tostenrud of 1239 Benjamin Blvd, Steve Sudan of 826 Hermosa, Edith Schuler of 820 Hermosa, Kellie Mailia of 1303 Benjamin Blvd, Lynette Tubbs of 1429 Las Palmas, Shirley Laird of 2311 Entrada, and Landy Leep for High Sierra Development. Planning staff answered questions from the Zoning Commission to clarify the zoning plan and recommendation. The applicant's agents provided response to comments and concerns brought up during public testimony on the application. Those concerns included traffic, property values, school populations and housing density. The Zoning Commission Chair, Dan Brooks, closed the public hearing.

Zoning Commission member Greg McCall made a motion to recommend approval of Zone Change 1056 and adoption of the findings of the 10 review criteria. The motion was seconded by Commission member Andy Megorden, and was not approved on a 2-2 tie vote. The Zoning Commission must forward a recommendation to the City Council (BMCC Sec. 27-1628.E(1). A tie vote is not a recommendation. Zoning Commission members stated their positions on whether to recommend approval. Chair Dan Brooks and Member David Goss spoke against recommending approval. Member Greg McCall and Member Andy Megorden spoke in favor of recommending approval.

Chair Dan Brooks made a second motion to recommend denial of the zone change and provided a different finding as a basis for the recommendation. Mr. Brooks stated he found the proposed zoning was not the most appropriate use of land at the edge of the city limits (Criteria No. 10). The motion was seconded by Commission member David Goss. The motion was not approved on a 2-2 tie vote. Planning staff recommended the members should vote to delay action on the zone change until the next Zoning Commission meeting (January 7). Member David Goss stated he might be persuaded to vote in favor of the zone change if he had more assurances the transportation system could and would handle the additional traffic. He stated that with the area for the new zoning at the current edge of the city limits, it is necessary to have more than just a letter from the applicant's agent (City Traffic Engineer had also provided support and agreement with the traffic impacts and plans). David Goss made a motion to delay the discussion and recommendation on Zone Change 1056, until the next meeting. The motion was seconded by Andy Megorden and was approved on a 3-1 vote. Greg McCall voted against the motion.
 

The Zoning Commission may:

• Recommend approval and adoption of the findings of the ten review criteria for Zone Change 1056; or,
• Recommend denial and adopt different findings of the ten review criteria for Zone Change 1056; or,
• Make a motion to delay the hearing to a future meeting based on a finding that more information is needed concerning one or more of its decision criteria; or
• Allow the applicant to withdraw the zone change request.

As of the date of this report, the applicant has not requested to withdraw the application. The Zoning Commission must make a recommendation to the City Council. In the case of a tie vote, the item will be delayed to the next Zoning Commission meeting date.
 

There will be no impact of the Planning Division budget from the approval or denial of the zone change request.

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels.
• Neighborhoods that are safe and attractive and provide essential services are much desired.

Home Base:

• A mix of housing types that meet the needs of a diverse population is important.
• The Housing Needs Assessment is an important tool to ensure Billings recognizes and meets the demands of future development.
• Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe.

• Develop housing patterns that are compatible with existing neighborhoods.
• Encourage high-density multifamily development along arterial routes

5. Will the new zoning provide adequate light and air?
The proposed zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.

6. Will the new zoning effect motorized and non-motorized transportation?
Traffic generation has been estimated in a preliminary letter to the City Traffic Engineer, Dakota Martonen. The preliminary information letter is included as an attachment.  It is estimated that new vehicle trips per day based on the proposed zoning and estimated unit counts would result in about 5,500 new external trips outside the development. This trip count includes trips to the new residences for services such as mail, delivery, solid waste and similar, as well as trips by the occupants. The current N3 zoning would result in about 1,800 new trips per day. Each single-family unit in the N3 zone would generate an estimated 9.43 vehicle trips per day. Trip generation per attached single-family or multifamily dwellings is much lower per unit. Attached single-family units generate about 7.2 trips per day and multifamily dwellings about 6.7 trips per day. Traffic volume does not increase along the same curve as development density. The increase of dwellings from 190 in the N3 to more than 500 in the proposed zoning does not increase expected traffic by the same percentage. City Traffic Engineering will expect an update to the existing traffic impact study to look at all the surrounding intersections to ensure the new development is paying its fair share for any required improvements.

7. Will the new zoning promote compatible urban growth?
The new proposed zoning does promote compatibility with urban growth. The proposed zoning of N1 and NX1 along the parcel perimeter will allow this parcel to provide new housing that is compatible with the adjacent undeveloped county land and with the remaining N3 zoning in the future High Sierra subdivisions.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed new zoning plan does consider the character of the district and the suitability of the property for the proposed use. The proposed new zoning plan has a balance of higher and lower density housing choices and provides for an area of neighborhood services at the intersection of an arterial and collector streets.

9. Will the new zoning conserve the value of buildings?
There are no existing structures on the property. New construction and development tends to raise property values on adjacent lots, but it is not known how this development may affect those values.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed new zoning plan is the most appropriate use of the land. The NX3 zone centrally located around the intersection of the arterial and collector streets with N1 and NX1 along the periphery, is appropriate and provides compatible development.