This is a zone change request from Planned Development – Neighborhood Commercial to Planned Development – Neighborhood Commercial with an allowance for the on-premise sale of beer and wine without gaming and the provision of catering services.  The application is for a 37,739 square foot parcel of land described as Lot 3, Block 40, Harvest Subdivision, 4th Filing located generally at 3210 Henesta Drive. The property is owned by Steel Properties, Ronald Steel, President and is represented by Siam Thai, LLC and Andrew Billstein, Billstein Law Firm. The agents and owner conducted a pre-application neighborhood meeting on May 31, 2011 and a preliminary review meeting was held by city staff on June 23, 2011. The pre-application meeting notes are included as Attachment C. The Zoning Commission held a public hearing on July 5, 2011, and is recommending approval on a 4 to 0 vote.

State law at MCA 76-2-304 requires that all zone changes be reviewed in accordance with 12 criteria. Using the 12 criteria to determine the appropriateness of the zone change request, the City Council may:
1. Approve the zone change request
2. Deny the zone change request
3. Allow withdrawal of the application
4. Delay action for up to thirty (30) days

There should be no impact to the city's tax base from the proposed zone change. If property improvements are made, then an increase in taxable property value can be expected.

The applicant is requesting to change the Planned Development zoning restrictions on this property in order to obtain a liquor license to serve beer and wine at the Siam Thai Restaurant at 3210 Henesta Drive. The underlying zoning district of Neighborhood Commercial (NC) does not allow on-premise consumption of beer or wine. Beer and wine is allowed to be sold for off-premise consumption. The applicant requested a zoning clarification from the Planning Division in February 2011 to determine whether beer and wine sales were allowed in a restaurant. The Planning Division provided information to the applicant at that time indicating that beer and wine sales for on premise consumption could be allowed and the business owner began the process of obtaining a beer and wine license for the restaurant. The Department of Revenue submitted a copy of the beer and wine license application for Planning Division review in April 2011. It was discovered at that time the underlying zoning of NC would not allow on-premise consumption of beer and wine. The applicant would like to move forward and obtain the license, and the Planning Division staff has suggested the owner and applicant submit the Planned Development zone change to make this specific change for Lot 3, Block 40 of Harvest Subdivision 4th Filing. No expansion of the floor area is contemplated. Review by the City Building Division and Fire Department indicates no building improvements are required for the proposed beer and wine license. No site improvements are necessary to provide additional parking at this time.

A similar change to the underlying NC zone was approved for lots on the north side of Henesta Drive to allow for larger retail stores (over 3,000 square feet) and to allow two specific uses not otherwise allowed in the NC zone. The owner wants to remove the restrictions related to on-premise consumption of beer and wine in restaurants. The NC zoning district does not allow this use, however the Community Commercial (CC) zoning district does allow on-premise beer and wine in restaurants without a special review approval as long as the 600-foot separation distance to churches, schools and parks with playgrounds is met. This location appears to meet the required 600-foot separation to these other uses. Neighborhood Commercial does allow grocery stores and convenience stores to sell liquor for off-premise consumption.

Henesta Drive is a local street and traffic counts are variable but provides the only vehicle access for businesses on the 3200 block of the street since no vehicle access is provided on King Avenue West. King Avenue West at this location carries over 10,000 vehicles per day and 32nd Street West carries over 8,500 vehicles per day. Both streets are capable of handling the volume of traffic and this change in the PD zoning is not expected to generate any additional traffic.

Neighborhood Commercial uses range from offices to retail to services such as banks, medical clinics and similar businesses. It also includes uses such as gas stations, convenience food stores and other uses designed to provide services to larger residential neighborhoods. These uses are generally compatible with restaurants that serve beer and wine. No gaming would be allowed with the proposed beer and wine license.

The applicant conducted a pre-application neighborhood meeting on May 31, 2011 and no surrounding property owners attended the meeting. A preliminary meeting with city staff, surrounding owners and the applicant was held on June 23, 2011. No surrounding owners attended this meeting.
 
The Planning Division reviewed this application and recommended approval to the Zoning Commission of the proposed change to the Planned Development agreement. The Zoning Commission concurred with this recommendation. The recommendation is based on the twelve (12) criteria for zone changes. The subject property is adjacent to PD-NC zoning to the north, east and west and PD-Residential zoning across King Avenue West. There are no schools, churches or public parks with a playground or playing field within 600 feet of this location. If the zoning is approved, the applicant’s request to locate a beer and wine license in the Siam Thai Restaurant would be approved through the Department of Revenue. The 2008 Growth Policy encourages predictable land use decisions that are consistent with neighborhood character and land use patterns. The existing use and proposed zoning are consistent with this neighborhood and land use pattern.

The Zoning Commission held a public hearing on July 5, 2011, and received testimony from the applicant and agent. No other testimony was presented from surrounding property owners.

Prior to any action to approve or disapprove, the City Council will consider the recommendation of the Zoning Commission and shall consider the following:
1. Is the new zoning designed in accordance with the Growth Policy?
The proposed zone change is consistent with the following goals of the Growth Policy:

• Predictable land use decisions that are consistent with neighborhood character and land use patterns. (Land Use Element Goal, page 6) 
The proposed zoning would permit the existing restaurant to obtain a beer and wine license. The surrounding commercial uses in the Planned Development are compatible with a restaurant that has beer and wine service. Business located on or near the intersection of 32nd Street West and King Avenue West are zoned CC and many have on-premise alcohol service for restaurant patrons.

• Coordinated economic development efforts that target business recruitment, retention, and expansion.(Economic Development Goal, page 6) 
The proposed zoning will encourage an existing business to stay in its current location and extend service to its customers.

• New developments that are sensitive to and compatible with the character of adjacent city neighborhoods. (Land Use Goal, page 6)
The proposed Planned Development changes will only allow a beer and wine service within a restaurant but will not allow gaming or beer and wine service without food service. The changes are sensitive to and compatible with the character of the neighborhood.

• Contiguous development focused in and around existing population centers. (Land Use Goal, page 6)
The proposed development will be help keep development focused in existing areas with city services already in place.

2. Is the new zoning designed to lessen congestion in the streets?
There should be no effect on traffic congestion. The existing restaurant may expand its customer base but this should have little impact on the number of vehicles using the adjacent streets.

3. Will the new zoning secure safety from fire, panic and other dangers?
The subject property is currently serviced by all city public safety services. There should be no effect on these services.

4. Will the new zoning promote health and general welfare?
The proposed zoning would permit the existing restaurant to remain a tenant in this location. This will promote the health and general welfare of the neighborhood.

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 prevent overcrowding of land?
The proposed zoning, like all zoning districts, contains limitations on the maximum percentage of the lot area that can be covered with structures.  The existing PD-NC zone allows 50% lot coverage and there are no proposed changes to this requirement.

7. Will the new zoning avoid undue concentration of population?
The new zoning does avoid undue concentration of population. The existing zoning allows single family, two-family or multi-family dwellings not to exceed the density requirements of the RMF-R zoning district. This prevents undue concentration of population.

8. Will the new zoning facilitate the adequate provisions of transportation, water, sewerage, schools, parks, fire, police, and other public requirements?
Transportation: The proposed zoning should not have any impact on the surrounding streets.
Water and Sewer: The City will be able to provide water and sewer to the property through existing lines.
Schools and Parks: There should be no impact to schools from the proposed zone change.  
Fire and Police: The subject property is currently served by city fire and police. 

9. Does the new zoning give reasonable consideration to the character of the district?
The proposed zoning will allow the existing restaurant to serve beer and wine to its customers. This will allow the owner to retain and anchor tenant in the building. The surrounding uses are compatible with the proposed use. The proposed zoning is in character with the area.

10. Does the new zoning give consideration to peculiar suitability of the property for particular uses?
The subject property is suitable for the requested zoning district.

11. Was the new zoning adopted with a view to conserving the value of buildings?
The existing building value will be conserved by the proposed amendment. Vacant property and buildings have a negative effect on surrounding property value. A developed property generally improves surrounding property value. The new zoning will allow the owner to retain a long term tenant. 

12. Will the new zoning encourage the most appropriate use of land throughout such county or    municipal area?
The proposed zoning will permit the current development to continue. This is the most appropriate use of the lot.