Planning staff recommends conditional approval of Special Review 1001 and adoption of the findings of the review criteria.

This is a Special Review request to allow construction of a new surface parking lot for Energy Laboratories at 1108 and 1110 South 28th Street. The subject properties are located within the Corridor Mixed Use 2 (CMU-2) zoning district, where surface parking lots are permitted only with Special Review approval by City of Billings (City) City Council per the City Zoning Regulations. The site consists of adjacent parcels totaling 0.48 acres. One lot is currently a vacant grass field, and the other contains a residential structure in poor condition. The applicant proposes to demolish the existing house and redevelop both lots into a 40-stall surface parking lot to support Energy Laboratories’ operations. The subject properties are surrounded by a range of land uses: Energy Laboratories to the east, commercial buildings to the west, vacant land to the south, and residential uses to the north.

Energy Laboratories has identified a shortage of parking for employees at its nearby facilities and has indicated that the proposed lot is necessary to meet both current and future demand. In particular, the additional spaces are required for a planned building addition one block away, as the expansion cannot proceed without the code-required parking. The applicant has stated that the new lot will reduce congestion from on-street parking, improve employee access, and support continued business growth. The current building and parking for Energy Laboratories requires 39 parking spaces and has provided 40 spaces. The proposed new building is approximately 14,300 sqft and requires 36 parking spaces and this new parking lot would provide 39 spaces. 

The proposed development will comply with applicable site development standards, including landscaping, fencing, lighting, and stormwater management. The landscape plan includes irrigated planting beds, street frontage trees, and perimeter bufferyards. A vinyl privacy fence will replace the deteriorated chain link fence along the north property boundary. Pole-mounted, shielded lighting will be installed to minimize glare and reduce impacts on adjacent residential uses. Snow storage areas are designated along the west and south lot boundaries. Access will be provided from a single driveway on South 28th Street.

The proposed parking lot is designed to complement surrounding commercial and industrial development while reducing potential impacts on nearby residential properties. The project supports the goals of the 2016 Growth Policy by encouraging infill development, facilitating business expansion, and enhancing neighborhood safety and livability through improved lighting, landscaping, and pedestrian amenities.

APPLICATION DATA
OWNERS: Energy Laboratories, Inc
AGENT: Stephanie Donovan, A&E Design
PURPOSE: Special Review request to allow surface parking as a primary use for Energy Labs on a vacant parcel and parcel with a vacant residential structure within a Corridor Mixed-Use 2 (CMU 2) zone. A pre-application neighborhood meeting was held on July 21, 2025, at the Billings Public Library. TAX ID: A01896, A01895
LEGAL DESCRIPTION: Lots 5-10 of Block 250 of Billings Second Addition located in S03, T01 S, R26 E
ADDRESS: 1108 & 1110 S 28th St, Billings, MT 59101
EXISTING LAND USE: Vacant home and vacant land
PROPOSED LAND USE: Surface Parking Lot
EXISTING ZONING: Corridor Mixed Use 2 (CMU2)
SIZE OF PARCEL: 0.48 acres

SURROUNDING ZONING & LAND USE
NORTH: CMU2 - Corridor Mixed Use 2 
Land Use: Residential 
SOUTH: CMU2 - Corridor Mixed Use 2
Land Use: Vacant
EAST: DX - Downtown Support 
Land Use: Energy Laboratories 
WEST: CMU2 - Corridor Mixed Use 2
Land Use: Residential

The zoning code has a variety of considerations and findings before a special review use can be considered acceptable at a particular location. The requirements are set forth in Section 27-1623.D as follows:

1. The special review use is consistent with the City's growth policy and applicable neighborhood plans, if any; 
2. The establishment, maintenance, or operation of the special review use will not be detrimental to or endanger the public health, safety, morals, comfort, or general welfare; 
3. The site is adequate for the proposed use and has the topography to accommodate the use while meeting the other requirements of this zoning code, including zone district dimensions, landscaping requirements, and parking. 
4. The special review use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood; 
5. The special review use will not impede the normal and orderly development and improvement of the surrounding property for uses permitted in the district; 
6. Conditions necessary to protect the public health, safety, and general welfare can be established, including but not limited to conditions on:

The applicant conducted a pre-application neighborhood meeting on July 21, 2025, at the Billings Public Library. Notice was sent to all property owners within 300 feet of the site. No neighboring residents attended the meeting. City Planning and Engineering staff also conducted a pre-application meeting with the applicant team on June 17, 2025, to review site layout, landscaping, and special review requirements. Planning staff prepared and mailed the public hearing notice to surrounding property owners, published a legal ad and posted the property with the Zoning Request sign. Planning staff received no communication on the application from the surrounding owners or the public as of the writing this report.

The Zoning Commission may:

• Recommend conditional approval and adoption of the proposed findings to the City Council, as submitted by Planning staff; or
• Recommend denial and adopt different findings of the review criteria;or
• Delay action on the application at the request of the applicant; or
• Allow the applicant to withdraw the application; or
• Delay the hearing on its own motion in response to a finding of one or more of the criteria that requires additional information.

The applicant has not requested a delay or a withdrawal of the application. Only one motion to delay for up to 60 days is allowed per application. The Zoning Commission must make a recommendation to the City Council. Any tie vote on a motion will require a new motion or reconsideration of the motion at the hearing.

Approval or denial of the Special Review request will have no effect on the Planning Division Budget.

PROPOSED FINDINGS OF THE REVIEW CRITERIA (27-1623.D and E)
Planning staff recommends approval of the requested special review based on the proposed findings of the criteria.

1. The special review use is consistent with the City's growth policy and applicable neighborhood plans, if any.
The 2016 City of Billings Growth Policy outlines growth guidelines with goals. 

Essential Investments 

• Infill development and development near existing city infrastructure may be the most cost-effective. 

The proposed parking lot is consistent with the goals of the 2016 Growth Policy by supporting infill development on underutilized parcels within the city limits. Redevelopment of the site into a functional parking area adjacent to existing Energy Laboratories facilities represents a cost-effective investment that uses existing infrastructure and supports orderly growth.

Strong Neighborhoods 

• 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.

 Redevelopment of the site into a functional parking area adjacent to existing Energy Laboratories facilities represents a cost-effective investment that uses existing infrastructure and supports orderly growth on an underutilized parcel. The project will enhance neighborhood safety and attractiveness through the installation of new landscaping, fencing, and shielded lighting. These improvements will create a safer and more comfortable environment for employees and nearby residents, consistent with the Growth Policy goal of fostering safe and attractive neighborhoods.

Prosperity 

• Successful businesses that provide local jobs benefit the community. 
• Community investments that attract and retain a strong, skilled and diverse workforce also attract businesses.
• Retaining and supporting existing businesses helps sustain a healthy economy.

The proposed parking lot will directly support the continued operations and planned expansion of Energy Laboratories, a successful local employer. By providing the code-required stalls necessary for a building addition, the project contributes to business growth, retention, and job support in the community. This aligns with Growth Policy objectives to promote prosperity, attract and retain a skilled workforce, and sustain a healthy local economy.

2. The establishment, maintenance, or operation of the special review use will not be detrimental to or endanger the public health, safety, morals, comfort, or general welfare.
The proposed surface parking lot will not be detrimental to public health, safety, or general welfare. The lot is intended to reduce existing congestion caused by employee vehicles parked along adjacent streets and alleys, thereby improving traffic safety and accessibility in the surrounding neighborhood. The design incorporates lighting standards with fully shielded fixtures to prevent glare and reduce impacts on nearby residences. A new vinyl privacy fence and landscaped bufferyards will enhance screening and provide a visual buffer for adjacent properties, improving comfort for neighboring residents.

3. The site is adequate in size for the proposed use and has topography to accommodate the use while meeting the other requirements of this Zoning Code, including zone district dimensions, landscaping requirements, and parking.
The combined parcels at 1108 and 1110 South 28th Street are adequate in size and configuration to accommodate the proposed 40-stall parking lot. The site design meets the dimensional and build-to standards of the CMU-2 zoning district and provides sufficient area for required bufferyards, street frontage landscaping, and interior parking lot landscaping. The applicant’s site plan shows compliance with tree and shrub planting requirements, snow storage, and lighting standards. The relatively flat topography of the property is well-suited for surface parking development and does not present grading or drainage challenges. The single point of access from South 28th Street allows safe ingress and egress without overburdening the local street system. Overall, the site is of appropriate size and condition to accommodate the proposed use while meeting all applicable zoning and development requirements.

4. The special review use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood.
The proposed parking lot is compatible with the surrounding mix of commercial, industrial, and limited residential uses and will not be injurious to neighboring properties. The design includes a new vinyl privacy fence, perimeter bufferyards, and irrigated landscaping that will screen and enhance the view from adjacent residential and commercial properties. Lighting will be shielded to prevent glare, and snow storage areas are located to minimize impacts on neighboring parcels.

By alleviating existing on-street parking congestion, the project is expected to improve accessibility and safety for nearby residents and businesses. The investment in site improvements including landscaping, fencing, and lighting will enhance the appearance and functionality of the area, which may in turn support neighborhood stability and property values. Given these improvements and mitigation measures, the proposed use will not diminish or impair the use, enjoyment, or value of surrounding properties.

5. The special review use will not impede the normal and orderly development and improvement of the surrounding property for uses permitted in the district.
The proposed parking lot is consistent with the character of the surrounding Corridor Mixed Use 2 district and will not hinder the future development of nearby properties. The proposed surface parking is in proximity to both the railroad and  Western Sugar Factory. The site design accommodates landscaping, fencing, and screening that ensure compatibility with adjacent commercial and residential uses. Access to the lot is provided from South 28th Street, reducing potential conflicts with neighboring parcels.

The parking lot will serve the operational needs of Energy Laboratories without placing additional restrictions or limitations on surrounding parcels. Because the site improvements comply with zoning requirements and do not obstruct infrastructure or access, other property owners will be able to continue developing their land in accordance with permitted uses in the district. The project therefore will not impede the normal and orderly development or improvement of surrounding property.

6. Conditions necessary to protect the public health, safety, and general welfare can be established.
7. Adequate utilities, access roads, drainage, and/or necessary facilities have been or are being provided.
The subject property is served by existing City water, sanitary sewer, and stormwater infrastructure. The relatively flat topography of the site allows for straightforward grading and drainage improvements, and the proposed site plan demonstrates compliance with stormwater management requirements. Access to the parking lot will be provided from South 28th Street through a single driveway approach, which is designed to meet City Engineering standards for spacing and width.

All necessary utilities and facilities are available to accommodate the proposed use, and the project will not require extension or significant modification of public infrastructure. The proposed improvements will ensure the site functions efficiently while maintaining adequate access and utility service for surrounding properties.

8. Adequate measures have been or will be taken to provide ingress and egress to minimize traffic congestion in public streets.
The site plan provides a single driveway access from South 28th Street, which will safely accommodate vehicle entry and exit without creating unnecessary conflict points. This design limits traffic impacts on the surrounding neighborhood while providing direct access to the internal circulation of the parking lot. Employee work shifts at Energy Laboratories are staggered, which will further reduce peak-hour demand and minimize the potential for congestion on nearby streets.

By relocating employee parking from the public right-of-way to an off-street lot, the project will reduce on-street congestion and improve overall traffic flow in the vicinity. The circulation design, in combination with compliance with City Engineering standards for driveway spacing and width, ensures that adequate measures are in place to minimize congestion and maintain safe traffic operations.

9. The special review use shall, in all other respects, conform to the applicable regulations of the district in which it is located, except as such regulations may, in each instance, be modified by the city council.
The proposed parking lot has been designed to meet the requirements of the CMU-2 zoning district and all applicable development standards, including landscaping, bufferyards, lighting, fencing, setbacks, and stormwater management. No variances or deviations from the zoning code have been requested. Any conditions imposed by the City Council as part of the special review approval will further ensure that the project conforms to the intent of the zoning code and is compatible with surrounding uses.