This is a request for a special review to allow the location of an all beverage license (gaming attached) in a Controlled Industrial (CI) zone on Lot 11A-1, Block 1, CBH Industrial Park Subdivision, a 2.3 acre parcel of land generally located at 1911 King Avenue West. The Asian Sea Grill currently operates in Suite 4 & 5 with a beer and wine license that does not have gaming attached to the license. The owners obtained an all-beverage license at a recent auction and the license has gaming attached. The Asian Sea Grill does not intend to offer gaming at this time but would like to use the all-beverage license and expand into an adjacent suite (Suite 3) to accommodate its current business. The location will not require a waiver of the 600 foot separation from this location as there are no churches, schools or public parks with playground equipment within 600 feet of this property. The Zoning Commission conducted a public hearing on December 6, 2011, and is forwarding a recommendation of conditional approval on a 5-0 vote.

The Planning Division reviewed the application and recommended conditional approval to the Zoning Commission. The Zoning Commission concurred with this recommendation. Before a recommendation of approval or conditional approval can be made, each special review request must demonstrate conformance with three primary criteria: 1) the application complies with all parts of the Unified Zoning Regulations, 2) the application is consistent with the objectives and purposes of the Unified Zoning Regulations and the 2008 Growth Policy, and 3) is compatible with surrounding land uses and is otherwise screened and separated from adjacent land to minimize adverse impacts.

This application conforms to the first criteria, and conforms to all parts of the Unified Zoning Regulations. The location is in one of the zoning districts that allows an all-beverage license by special review approval. The application is conforming to the purposes of the regulations and the 2008 Growth Policy. The location of an all-beverage license will allow an existing restaurant to expand and provide all beverage service. 

The application also conforms to the second and third criteria. The submitted drawing shows the existing conditions and no substantial changes to the exterior except for changes in signage are contemplated. This is an opportunity to re-use an existing vacant tenant space and allow expansion of a thriving restaurant. Planning staff is recommending conditions for this special review based on the approval criteria for special review uses.

The Zoning Commission is forwarding the following conditions for approval for Special Review #895:
 
1. The special review approval shall be limited to Lot 11A-1, Block 1 CBH Industrial Park. 
2. Any expansion of the proposed interior space greater than 10 percent of 5,000 square feet (Suites 3, 4 & 5), building occupancy or parking lot greater than 10 percent of what is shown on the submitted site plan will require an additional special review approval.
3. There shall be no outdoor public address system or outside announcement system of any kind.
4. These conditions of special review approval shall run with the land described in this authorization and shall apply to all current and subsequent owners, operators, managers, lease holders, heirs and assigns. 
5. The proposed development shall comply with all other limitations of Section 27-613 of the Unified Zoning Regulations concerning special review uses, and all other City of Billings regulations and ordinances that apply.

There should be no impact to city finances from the proposed special review. The taxable value of the property may increase if the tenant spaces in the building are all occupied.

This is a request for a special review to allow the location of an all-beverage license with gaming attached at the Asian Sea Grill at 1911 King Avenue West in Suite 3, 4 and 5. The Asian Sea Grill obtained the license at auction and does not intend to exercise the gaming portion of the license but would like to have an all beverage service at the existing and expanded restaurant.

This property has received several special review approvals over the past 5 years to locate assorted alcoholic beverage licenses and gaming. Each instance requires a new special review if the original approval was specific for location or size of the building location. The location is not within 600 feet of any church, school, or public park with a playground. Most of the property surrounding this site has been developed for services such as the Holiday gas station to the west, the Springhill Suites Hotel, the Texas Roadhouse restaurant, the Hu Hot Mongolian Grill as well as several car dealerships and other service-oriented commercial establishments.

The Zoning Commission conducted a public hearing on December 6, 2011, and received the Planning staff recommendation and testimony from the applicant's agent, Bob Pulley. No other testimony was received at the hearing. The Planning staff did not receive any written testimony or phone calls on the application.

Mr. Pulley stated the application will allow the Asian Sea Grill to have a full beverage offering at their restaurant and to expand in to the vacant tenant space in Suite 3. Mr. Pulley stated the applicant is not at all interested in exercising the gaming attached to the all beverage license and the tenant agreements would prevent gaming in any case. Mr. Pulley stated there is a "no compete" clause for all tenant spaces since there is already one casino in the building. Mr. Pulley testified this license was bought at a foreclosure auction for $400,000. He stated just a few years ago, this type of license would have cost $1,000,000, but the indoor smoking ban combined with the economy have reduced the market rates for these licenses with gaming. Mr. Pulley stated the restaurant looked for a license without gaming attached but none were available.

Commission Member Barbara Hawkins moved to forward a recommendation of conditional approval to the City Council. Commission Member Dan Wagner seconded the motion and the Commission voted 5-0 in favor of the motion.

The consistency with adopted plans and policies is discussed in the Alternatives Analyzed section above.