This is a zone change that will add a new section to the Billings, Montana, City Code (BMCC) regarding commercial development adjacent to or near residential uses.  The City Council has expressed an interest in supporting infill development provided such development can be compatible with existing neighborhoods. Several instances of incompatible uses adjacent to residential zones have come forward in the past year. The proposed amendment would require new commercial development to mitigate the impacts to the adjacent residences including impacts from lighting, building bulk and height, mechanical equipment such as generators and air handlers, outdoor storage of materials, and similar activity. The City Zoning Commission initiated the amendment on February 7, 2012. The Zoning Commission conducted a public hearing on May 1, 2012, and is forwarding a recommendation of approval on a 4-0 vote.

The City Council may:
1. Approve the zone change
2. Deny the zone change
3. Allow withdrawal of the zone change
4. Delay action for up to thirty (30) days

There should be no financial impact from the proposed amendment.

The Planning Division has proposed an amendment to Section 27-612 to add a subsection with requirements for commercial or industrial type uses adjacent to or within 50 feet of a residential zone. The proposed amendment includes requirements for lighting, building setbacks, noise generation, loading docks, solid waste disposal, and signage.

New development and re-development of commercial lots that are adjacent to existing residential neighborhoods have caused conflicts and unmitigated impacts to those residential neighbors. The 2008 Growth Policy and the 2011 Infill Development Policy encourage compatible development. The current zoning code requires a minimum 15-foot setback for a commercial building that adjoins a residential zone.

The code does not regulate site lighting, noise or other commercial activity that will impact the residences. The minimum 15-foot setback is too small where residences built to an average height of 20-feet are adjacent to a new commercial or industrial structure that averages 40 to 60 feet in height. Outdoor lighting also has an impact on adjacent residences. The proposed amendment will require full cut-off shielding for outdoor lights and limit light pole heights to 20 feet or less. Signage may be illuminated but must be set back from the adjacent residential uses. Internal lighting of a canopy or building fascia would be prohibited. Loading docks and outdoor waste storage would need to be setback from the residential uses.

The Zoning Commission conducted a public hearing on May 1, 2012, and received the staff report and recommendation of approval. Terry Smith, City Traffic Engineer, provided information on the suggested changes to the draft ordinance regarding loading docks and solid waste facilities. The Zoning Commission agreed with the recommended language from Engineering and incorporated the language into the draft. There was no other testimony. The Zoning Commission is forwarding a recommendation of approval on a 4-0 vote.

The Growth Policy and the Infill Development Policy both encourage the development of compatible and predictable uses within the city limits. The proposed amendment establishes standards for compatibility between residential uses and new commercial uses. Signs, lighting, noise and other commercial activity does impact residential uses and the city does not currently control these activities based on proximity to residential property aside from a minimum setback requirement.