This is a zone change request from 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 1.3 acre parcel of land described as Lot 2, Rose Park Subdivision, located generally at 1504 through 1528 24th Street West. The property is owned by the Larson and Carpenter Partnership and is represented by Pam Shires, 6 Degrees Gourmet. The agent conducted a pre-application neighborhood meeting on December 14, 2011 and a preliminary review meeting was held by city staff on January 9, 2012. The Zoning Commission conducted a public hearing on February 7, 2012, and is forwarding a recommendation of approval on a 3-0 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

If approved, the city will receive additional fee revenue from the restaurant beer and wine license. Property value may be stabilized by retaining the existing restaurant in the multi-tenant building.

The applicant is requesting to change the zoning on this property in order to obtain a liquor license to serve beer and wine at the 6 Degrees Gourmet restaurant at 1520 24th Street West, one of the tenant suites within the multi-tenant building. The current 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 only. The applicant started the process of obtaining a license from the Montana Department of Revenue last summer. The Department of Revenue submitted a copy of the beer and wine license application for Planning Division review in July 2011. It was discovered at that time the underlying zoning of NC would not allow on-premise beer and wine. The applicant would like to move forward and obtain the license, and the Planning Division staff has directed the owner and applicant to submit the Planned Development zone change to make this specific change for Lot 2, of Rose Park Subdivision. 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.

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 meets 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.

North of Grand Avenue, 24th Street West is a local street and traffic counts are variable but the street provides the only vehicle access for businesses north of Grand Avenue. The 3-year average for daily traffic is about 7,000 vehicles per day. Grand at 24th Street West carries about 17,000 vehicles per day and 24th Street West south of Grand carries about 21,000 vehicles per day. North of Grand Avenue, 24th Street West is capable of handling the existing traffic. The proposed zone change 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 December 14, 2011 and 4 surrounding owners or interested persons attended the meeting. A preliminary meeting for city staff, surrounding owners, and the applicant was held on January 9, 2012. No surrounding owners attended this meeting.
 
The Planning Division reviewed this application and recommended approval of the proposed change to Planned Development with underlying zoning of NC with an allowance for an on-premise beer and wine license with catering services. The Zoning Commission concurred with this recommendation. The recommendation is based on the twelve (12) criteria for zone changes. The subject property is close to CC zoning and several restaurants on Grand Avenue have liquor licenses with and without gaming. The intent is to provide the small restaurant in this multi-tenant building with the ability to obtain a restaurant beer and wine license. No gaming would be allowed. 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 60 Gourmet 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 conducted a public hearing on February 7, 2012, and received testimony from the applicant's agent, Jim Shires. No other testimony was received. Mr. Shires stated the entire neighborhood was notified of the proposed change and there were no objections and in fact several neighbors supported the proposal. Mr. Shires stated they started the licensing with the Department of Revenue before they knew about the zoning restrictions and have a contract to purchase a restaurant beer and wine license from a closed location in Billings Heights. He stated the contract is now 9 months old. He stated the current oprating hours are from 7 am to 4 pm. Mr. Shires believes the hours might be extended until 7 pm or 8 pm if the zone change is approved and the beer and wine license is approved. 
The Zoning Commission considered the staff recommendation and the testimony and voted 3-0 to forward a recommendation of approval to the City Council.  

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 tenant spaces are compatible with a restaurant that has beer and wine service. Business located south east and north of the parcel are zoned CC, NC, and RP and many businesses on Grand Avenue have on-premise alcohol service for restaurant patrons. The neighborhood to the south and southeast should not be affected by the change.
• 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 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 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 and is focused on commercial development and not residential development. However, both the existing and proposed 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 tenancy 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 tenant in a space suited for a restaurant service. 

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.