The Zoning Commission recommended approval and adoption of the proposed findings of the 10 criteria for Zone Change 1059. The City Council approved the zone change on first reading on January 13, 2025. A second reading of the ordinance is required.

This is a zone change request from Neighborhood Office (NO) to Corridor Mixed Use 1 (CMU1) to allow commercial and mixed-use development on the eastern 2.28 acres in the Zimmerman Home Place Subdivision (3rd Filing - Block 1 Lot 2). The lot is directly south of a lot the City Council approved a zone change to Mixed Residential 3 (NX3) in July 2024, and north of lots on Avenue E zoned NO. The lot at the corner of Avenue E and Zimmerman Trail (3401 Avenue E) is developed for the Children's Clinic, and was the first lot developed on the west side of Zimmerman Trail. The western 1.808 acres of the subject parcel will remain in the Neighborhood Office (NO) zone district.

Prior to the adoption of the new zoning code, the city and county regularly zoned property on arterial street frontages with low density residential or low-intensity commercial zones such as, Residential Professional (RP). The new zoning for the city requires different choices for arterial street frontages, including mixed-use districts or mixed residential districts. This is to ensure that lower density neighborhoods are in areas away from traffic noise, and do not need to "wall off" the neighborhood from the adjoining street. In the code update in 2021, the corollary zone for RP was Neighborhood Office (NO) and parcels that were vacant at the time of the update, went from RP to NO.  Neither the RP zone nor the NO zone are appropriate for such a large area along a busy arterial street. The property to the north was recently re-zoned to Mixed Residential 3 (NX3) to allow a cooperative housing apartment development. At the intersection of Colton Blvd and Zimmerman Trail on a lot zoned NO, a two-tenant commercial office building was recently completed for NAI Business Properties and Performance Engineering. Additional developments to the west of the Children's Clinic are planned. The district description for NO includes this language: "The NO district is intended to accommodate office and office/residential uses on neighborhood corridors and internal neighborhood locations where other commercial uses are inappropriate. This district is meant to be highly walkable and accessible to pedestrians and to fit well with the context of adjacent neighborhood residential buildings, when located on corners or block ends." (BMCC 27-402) The subject property does not meet the district descriptions for a NO zone being at street intersections at entrances to the neighborhood. The definition of CMU1 better fits the location of the subject parcel: "The CMU1 district is intended to accommodate commercial and other uses along transportation corridors to promote development that is comfortably accessible via all modes of transportation, including motor vehicles, bicycles, and walking. Commercial uses in the CMU1 district may be somewhat larger in scale and more flexible than the neighborhood mixed-use district, including more auto-oriented uses such as gas stations. While ground stories along streets are intended for commercial uses, any story could accommodate residential and/or office uses."

The proposed zoning of CMU1 for the eastern 2.28 acres (see attached Zoning Plan) is intended to allow commercial, mixed use, or multifamily development. The property owner is developing several hundred apartments and townhomes on lots to the west - zoned Mixed Residential 3 (NX3). The zone change would allow this owner to provide walkable access to businesses and services for this new neighborhood. Currently, all retail-type businesses are located about 1/2-mile to the southeast or southwest. Walkable neighborhoods usually have small retail services less than 1/2-mile from the primary residential area - even if it is just a corner store, a coffee shop, or similar business.

The CMU1 zoning allows buildings up to four (4) stories in height while the NO zone allows up to two and a half (2.5) stories. The minimum story height in the NO zone is nine feet and the maximum is 12 feet. A building within the NO zone can range from 22.5 feet (plus a roof) to 36 feet (plus a roof). The CMU1 district has a minimum ground story height of 12 feet and a 9-foot minimum story height above the first floor. A four-story building could be up to 39 feet plus a roof structure. As a comparison, the N3 zone district can allow a 3-story dwelling up to 34 feet in height. The CMU1 zone district is not truly intended for any single family or two-family residential dwellings, but the code allows this type of development if the developer chooses. The applicant provided a concept site plan showing two buildings along the Zimmerman Trail frontage with a third building along the south property line (north of the Children's Clinic building). All the parking would be to the west of the buildings with access from Green Valley Drive, a collector street within the subdivision. The concept drawing shows 2-story buildings, but this concept is not a final plan but shows what might be developed given the site and potential uses. 

There is a variety of zone districts in the area including the Mixed Residential 3 (NX3) to the west and north, NO zoning to the south of the subject property, and Suburban Neighborhood Residential (N3) east across Zimmerman Trail, a 120-foot wide principal arterial street. The homes in the N3 zone do not take frontage from Zimmerman Trail and are behind some landscaping and a sight-obscuring fence that runs parallel to the street. Most of these patio homes and townhomes were built on private streets in the late 1990s and early 2000s. Most are single-story, single-family homes. The multifamily apartments and townhomes to the west are under construction with some buildings complete and occupied and others completing construction. There is a resident clubhouse and amenities within the apartment complex that make this an above average rental development that commands a higher market price. There are also two-unit townhomes planned for the Colton Blvd street frontage.

Zimmerman Trail is an arterial street and was completed from Poly Drive to Broadwater Avenue in 2004/2005. Prior to this time, Zimmerman Trail was known as 34th St West north of Grand Avenue and 32nd St West, south of Broadwater. The city acquired the right-of-way through the Yegen Golf Course and built the connection as an arterial street to complete this part of the city's street network. There are few north/south arterial streets west of 17th St West. Zimmerman Trail carries about 15,000 vehicle trips per day along this corridor between Broadwater Avenue and Poly Drive. Additional traffic is expected when several new apartment projects are completed in the next few years, including the Zimmerman Home Place development and the Icon and Steward Land apartments south of Grand in Cardwell Ranch Subdivision. Zimmerman Trail is a 2-3 lane arterial street with a capacity to handle larger volumes of traffic. There are traffic signals at Rimrock Road, Poly Drive, Grand Avenue, and Broadwater Avenue. South of Broadwater Avenue, the street name changes to 32nd St West. A mixed-use development on these parcels would likely require a traffic study update to ensure nearby intersections can still function as designed. Any traffic management or upgrades would be the responsibility of the project developer per the direction of the City Engineering Division. Zimmerman Home Place subdivision has already paid its proportionate share for nearby street and traffic management improvements. Any updates to the traffic impact study may or may not require additional payments.

APPLICATION DATA
OWNER: Highlands ZHP Subdivision LLC, Preston Lees
AGENT: Performance Engineering, Craig Dalton, P.E.
LEGAL DESCRIPTION: Lot 2, Block 1, Zimmerman Home Place Subdivision, 3rd Filing
CURRENT ZONING: NO
EXISTING LAND USE: Vacant
PROPOSED USE: Mixed use/commercial development
SIZE OF PARCEL: 4.088 acres - 2.28 acres subject to zone change

SURROUNDING ZONING AND LAND USE
NORTH:        
Zoning: NX3 - Mixed Residential 3 and NO - Neighborhood Office SOUTH:        
Zoning: NO - Neighborhood Office
Land Use: Children's Clinic and undeveloped lots
EAST:
Zoning: N3 - Suburban Neighborhood Residential
Land Use: Single family homes
WEST:
Zoning: NX3 - Mixed Residential 3 and P1 - Public 1
Land Use: Apartments and parkland

This area of Billings has been developing over the past 10 to 15 years following the connection of Zimmerman Trail through the Yegen Golf Course and the major reconstruction of Shiloh Road, another major north/south connection. The Zimmerman family chose to zone the property outside the city limits in 2016, and then market the pre-entitled property to developers who would then annex and build within the city limits. In 2017, Town Pump bought all the commercially zoned property on the southeast corner of the subdivision, annexed the land and put in a new gas station, convenience food store, liquor store and casino. The property to the northwest went through a Planned Neighborhood Development zone change when it was annexed in early 2022. A PND zone change was not required, but the owner preferred this zoning process to allow for placement of the Public 1 zone parcels within the new apartment development (Zone Change 1009). The lot to the north was approved for a zone change to NX3 in July 2024. The Cardwell Ranch south of Grand Avenue (Yegen Grand Ave Farm) is a Planned Development (PD) zone and also zoned for mixed uses and higher density development.

There are challenges to an area of urban development that is on an infill property with existing development around it. This is not meant to ensure homogeneous development patterns between neighborhoods, but the development plan should include similar and compatible zone districts, connectivity where and when needed, and recognition of similar goals for both types of property. The 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan goals and policies support the proposed zoning of CMU1 for the subject property with arterial street frontage. The CMU1 zone district is intended to be placed on arterial street corridors where neighborhood zoning can be adjacent or across the street. The uses allowed within the CMU1 zone is a mixed-use zone district that would not cause noise or disruptions to adjacent or nearby neighborhoods. The West Billings Neighborhood Plan goals and objectives stated the need to locate more intense uses along arterial street corridors and offer a range of commercial uses, housing choices and development densities. The proposed zone change supports these goals. The 2016 Billings Growth Policy supports a broad range of housing choices, encourages more walkable neighborhoods with connectivity to other transportation options, and building the community fabric through urban-designed public spaces. The proposed zone change supports these goals as well.

The applicant conducted a preapplication meeting at Performance Engineering offices at 3412 Colton Blvd on October 23, 2024. The synopsis of the meeting questions and answers are attached to this report. There were three surrounding owners who attended. The Zoning Commission did not receive input from any neighboring property owners prior to the public hearing or at the public hearing.  The Planning staff posted the property, mailed the surrounding property owners and placed a legal ad in the Yellowstone County News as required by the zoning regulations. In addition, the application was posted online on the "Current Zoning Applications" web page maintained by the Planning Division. 

Zoning Commission hearing December 3, 2024
The Zoning Commission held a hearing on December 3, 2024, and received the Planning staff report, testimony from the applicant's agent, Craig Dalton of Performance Engineering, and from Cindy Osland a friend of a property owner on the east side of Zimmerman Trail. The Zoning Commission asked Planning staff questions about the application to clarify the specific zoning request, the proposed findings of the review criteria and other general information. The applicant provided clarification on the shared access private road that will be developed on the northern property and that it would only be "right-in & right-out" because of the raised median on Zimmerman Trail. He also clarified the property owner has paid all required traffic mitigation fees including payment for the proposed signal at Avenue E and Zimmerman Trail. Mr. Dalton stated the decision on when to install this traffic signal is solely in the hands of the City Engineering Division. The public testimony received concerned traffic access on Zimmerman Trail and when the traffic signal might be install or when Zimmerman Trial might add travel lanes. The applicant's agent and Planning staff provided responses to these questions. The Zoning Commission chair, Dan Brooks, closed the public hearing. 

Commission member Greg McCall made a motion to recommend approval and adoption of the findings of the 10 review criteria. The motion was seconded by Commission member Andy Megorden and was approved on a 4-0 vote.

City Council hearing January 13, 2025
The City Council conducted a public hearing and received the Zoning Commission recommendation and testimony from the applicant's agent, Craig Dalton of Performance Engineering and Jeff Kanning of Collaborative Design. No other testimony was received.

Council member Aspenlieder recused himself from the hearing as he is a principal owner of Performance Engineering. Council members asked if a traffic study was done and when the signal at Avenue E and Zimmerman Trail would be installed soon. The Zoning Coordinator stated a traffic study was done for the original subdivision including all the existing and potential zoning and land uses. In addition, each subsequent filing of the subdivision a traffic study review is done based on actual traffic and the new subdivision uses and density. The owner has already paid all the cost of the signal on Avenue E and other contributions to mitigate other intersections and for traffic management. Council members asked whether the application received any public comment. The Zoning Coordinator stated there were no comments from the surrounding owners on the proposed zoning.

Mr. Dalton stated this parcel will truly be an infill project in the middle of the city. He stated the property is under development and this parcel is still considered farm ground. He stated with previous approvals and building permits, the area on the west side of Zimmerman Trail would soon have over 600 dwellings all in need of services. Council member Boyett asked if they would build a four-story building against the back of the sidewalk. Mr. Dalton stated this was not the buyer's intent, and the back of the sidewalk was not the property line. He stated the property line is about 5 to 7 feet behind the back of the sidewalk where the old three-wire fence is located. He stated the property slopes about 2 percent and for good engineering and drainage the building will need to be further away than five feet from the property line. He stated the buyer has already engaged Collaborative Design to draw up some concept plans and buildings for the site.

Jeff Kanning of Collaborative Design stated the buyer plans a group of three buildings, all about one (1) to two (2) stories, and there will not be just a single large structure along the Zimmerman Trail street frontage. He stated the code requires some street frontage standards, but the site will not only have Zimmerman Trail as a street frontage, so there is some site flexibility.

The Mayor closed the hearing. Council member Kennedy made a motion to approve Zone Change 1059 and adopt the findings of the 10 review criteria as recommended by the Zoning Commission. The motion was seconded by Council member Tidswell and was approved on a 9-1-1 vote with Council member Neese voting no and Council member Aspenlieder recused from voting based on a conflict of interest.
 

The City Council may:

• Approve and adopt the findings of the ten review criteria for Zone Change 1059 as recommended by the Zoning Commission and approved by the City Council on first reading; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1059; or,
• Delay action on the zone change request for up to 30 days at the request of the applicant or on its own motion; or
• Refer the application back to the Zoning Commission for an additional public hearing based on 1) new information submitted outside of the public hearing that the applicant and public have not had an opportunity to examine; or 2) new information has been presented that was never submitted or considered by the Zoning Commission or staff; or
• Allow the applicant to withdraw the zone change request.

The applicant has not requested a delay or withdrawal of the application.

 

Approval or denial of the proposed zone change should not have an effect on the Planning Division budget.

• Policy A "Promote efficient utilization of land within the West Billings planning area by promoting well-designed, more pedestrian-friendly, urban development patterns with a mix of uses and an efficient, creative use of land."
• Policy K "Increase residential densities within the West Billings planning area by approving requests for residential zoning that are consistent with this plan."
• Policy M "Development in the West Billings planning area shall provide for a variety of residential types and densities."
• Policy N "Medium and high-density residential development (including elderly and disabled housing) should be located nearby and within walking distance to commercial centers, medical facilities, parks, and recreational amenities."
• Policy R "Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments."

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels.
• Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, goodwill and social interaction.
• Safe and livable neighborhoods can be achieved through subdivision design that focuses on complete streets, pedestrian-scale streetlights, street trees and walkable access to public spaces.
• Neighborhoods that are safe and attractive and provide essential services are much desired Implementation of the Infill Policy is important to encourage development of underutilized properties.
• A mix of housing types that meet the needs of a diverse population is important,

Prosperity and Essential Investments

• Infill development and development near existing City infrastructure may be the most cost effective
• A diversity of available jobs can ensure a strong Billings’ economy
• Retaining and supporting existing businesses helps sustain a healthy economy

 
4) Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The applicant will likely need to provide an update to the already completed traffic impact study for the subdivision. The applicant will coordinate with the City Engineering Division. The traffic study will analyze each of the adjacent street intersections and determine if mitigation or improvements are needed to accommodate the additional traffic. The City Engineer will determine the required improvements based on the specific information provided in the update or existing traffic study.
Water and Sewer: This property is located in the City Limits and is required to be served by city water and sewer. There are no known negative capacity impacts related to water and sewer that are identified through any adopted studies or staff input. 
Schools and Parks: Schools and parks will likely not be affected by the proposed zone change. The NO zoning allows 1-4 family dwellings. The proposed CMU1 zone also allows residential use but in greater density and configurations. The intended development is for three separate structures and no apartments or dwelling units are proposed at this time. Development of apartments may or may not attract families with children. SD #2 had no comment on the proposed zoning. The Planning Division coordinates input from the School District administration. The District is beginning the process of evaluating its various districts for elementary, middle, and high schools and may make adjustments to address capacity levels at various schools. The closest public park is to the west in the apartment development on the west side of Green Valley Drive. In addition, there are two city-managed public parks to the west; one on 38th St West (Arrowhead) and a second park in Circle Fifty Subdivision (Country Manor Park).
Fire and Police: The subject property is served by city public safety services. Development of the property, regardless of the zoning, will be served by existing police and fire services. The Police and Fire Departments had no concerns with the zone change as requirements for access, water supply and fire codes would apply to the site and any construction on the subject property.

5) Will the new zoning provide adequate light and air?
Similar to criteria 2 and 3, the proposed CMU1 zone, like all zones, requires minimum setbacks to allow for adequate separation between structures and adequate light and air. This parcel is presently vacant. Therefore, any new structure will be required to meet the standards required by Section 27-400-3.

6) Will the new zoning affect motorized and non-motorized transportation?
Non-motorized travel -- walking and biking -- is an essential part of the city's transportation plan both within the proposed development and connecting to adjacent areas. Pedestrian connections to the new development will be allowed from Zimmerman Trail as well as across Green Valley Drive to the west.  The subdivision has a no vehicle access strip across the frontage of Zimmerman Trail, so all vehicle access will be from internal streets. The property is close to three fixed route MET bus lines (two on Grand and one on Poly Dr). There are no specific traffic counts on Zimmerman Trail between Rimrock Road and Broadwater Avenue. Traffic counts on Poly Drive near the Zimmerman Trail intersection are about 5,000 to 6,000 vehicle trips per day. Traffic counts on Grand Avenue near the Zimmerman Trail intersection are between 18,000 and 20,000 vehicle trips per day. A traffic impact analysis already completed for the apartment project to the west will need to be updated based on the new zoning and land uses allowed on this 2.28-acre parcel. Mitigation may be required by the City Engineering Division to ensure all existing and future street intersections are maintained in good capacity.

7) Will the new zoning will promote compatible urban growth?
The proposed increase in the overall development type and density is compatible with urban growth and the provision of city level services to new businesses and residents The proposed zone district boundaries are consistent with the urban growth in this area and will be compatible with the surrounding neighborhoods. 

8) Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning does consider the character of the district and the suitability of the property for the proposed use. This area between Broadwater Avenue and Rimrock Road is beginning to experience growth and development similar to areas further south in West Billings with similar uses. Zimmerman Trail acts as a major transportation corridor, so the expectation of more intense uses along the corridor is appropriate. A principal arterial street like Zimmerman Trail also acts as a buffer/separation, making the existing single and two-family development on the east side of Zimmerman Trail separated from the proposed CMU1 development. The proposed zoning is suitable for the property based on its principal arterial frontage with 120 feet of separation for the N3 zoning on the east side of the principal arterial, with the vehicle access from Green Valley Drive.

9) Will the new zoning conserve the value of buildings?
There are currently no buildings on the property, therefore the new zoning does not propose a risk of creating a nonconformity or other value associated issues with any existing buildings on site. Any new development must be in conformance with the zoning regulations, thus conserving the value of buildings surrounding the parcel. There has been no evidence to support the zone change will negatively affect the surrounding property and existing buildings. The new zoning is not expected to alter the value of any buildings in the area. In general, new construction adds property value to existing parcels in the area.

10) Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zone change will encourage the most appropriate use of this land in Billings.