This is a zone change request from Entryway Light Industrial (ELI) to Highway Commercial (HC) on a parcel of land described as Lots 4, 6 and 7, Block 1, Montana Sapphire Subdivision, a 10.85 acre parcel of land located in the Montana Sapphire Subdivision at 4110 and 4020 Montana Sapphire Drive (Lots 6 & 7) and 4215 King Avenue West (Lot 4). The property is owned by Montana Sapphire, LLC and Keith James of Gemstar Properties, LLC is the agent.

The owner conducted a pre-application neighborhood meeting on June 25, 2012. The pre-application meeting notes are included as Attachment D. The application was originally scheduled for public hearing on August 7, 2012, and the applicant requested a 30-day delay to add Lot 4 to the zone change application. Lot 4 at 4215 King Avenue West is a larger parcel that will accommodate the agent’s proposed retirement apartment complex. The Zoning Commission conducted a public hearing on September 4, 2012, and is forwarding a recommendation of approval on a 3 to 0 vote.

State law at MCA 76-2-304 requires that all zone changes be reviewed in accordance with 10 criteria. Using the 10 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 direct financial impact to the city's tax base. Additional fees and taxable value may be realized when the properties are developed.

The applicant is requesting to rezone this property on three lots within the Montana Sapphire Subdivision from ELI to HC to allow more flexibility with mixed uses or residential uses. The entryway zoning districts were applied on several properties in the area prior to the adoption of the South Shiloh Corridor Overlay District to provide increased standards for building design, site design and signage. Since the adoption of the overlay district in 2005, the Shiloh Crossing Subdivision has changed its zoning to CI and the St. Vincent Healthcare Subdivision has changed its underlying zoning to ELI and updated its Planned Development agreement to focus more on commercial and medical uses and less on higher density residential uses. Lenhardt Square Subdivision has adopted a Planned Development agreement with underlying zoning that allows mixed uses with high density residential and multi-family and single family uses. The large lots within Montana Sapphire Subdivision are appropriate for the current zoning but the district does restrict mixed uses to special review approval. Current zoning allows a list of uses that is generally more restrictive than HC zoning districts. For example, microbreweries and restaurants with on-premise consumption of alcohol without gaming are allowed uses in the HC zone, and in ELI zone microbreweries are not allowed and any restaurant serving alcohol must go through special review. The applicant is not intending to locate an alcoholic beverage license at this time but this a use the HC zone would allow. The proposed HC zoning allows single use developments or mixed use developments by right. There is a specific project intended for the property at this time to consist of an apartment community for seniors age 55 and older. The proposed building is 4-levels with about 150 dwelling units. 

Montana Sapphire Drive is a private street built to local commercial access standards. Shiloh Road and King Avenue West are principal arterial streets that have the capacity to handle any additional traffic from development within Montana Sapphire Subdivision. Shiloh Road carries approximately 8,000 vehicle trips per day at this location and King Avenue West carries 6,250 vehicles per day west of Shiloh Road.

Entryway zoning requires a greater amount of site improvements and building aesthetics than other commercial zoning such as Community Commercial (CC) or HC.  Entryway zoning requires larger landscaped buffer yards with a minimum number of trees per 100 lineal feet of buffer yard.  Entryway zoning also requires a minimum of a 10-foot wide buffer yard and a 6-foot tall solid fence along the property line that is adjacent to residential property. The Shiloh Corridor Overlay district supersedes the underlying zoning for site development, building design, signage, and landscaping on Lots 6 & 7 but does not change the allowed uses in the zoning district. Lot 4 is not within the South Shiloh Corridor Overlay zoning district. ELI zoning allows general commercial uses such as automobile sales, rental, and service stations, broadcasting studios (radio and television), car washes, commercial recreation uses, hotels/motels, laundry and dry cleaning, recreational vehicle sales and service, retail nurseries, signs, indoor theaters, tire sales, and wholesale uses not to exceed 250,000 square feet gross floor area but also allows heavy equipment sales, cabinet makers, and veterinary clinics. The HC zoning allows a wider range of uses, more detailed specification of uses and allows mixed uses by right.

The West Billings Neighborhood Plan adopted by the City in 2001 states the purpose of the plan is to guide the long-term growth of West Billings by achieving planned growth. A preferred land use map was developed locating neighborhood, community and regional commercial nodes at major arterial intersections. One of the intersections is Shiloh Road and King Avenue West directly adjacent to the regional commercial center from King Avenue West south to I-90. The completion of the Shiloh Road improvements has helped spur development along the corridor north from the interstate. The current entryway zoning was a predecessor to the overlay district and to the West Billings Neighborhood Plan. A more flexible zoning district of HC would allow the overlay district standards to stay in place while allowing a different mixture of land uses on this property. The ELI zone is tailored for very large developments that need interstate market exposure and are limited in allowed uses. The HC zone in comparison is suited for property that may not need interstate exposure but needs easy access to a high volume arterial that connects with the interstate. The HC zone is described in the zoning code as follows: “The Highway Commercial zone is intended to provide areas for commercial and service enterprises which are intended primarily to serve the needs of the tourist, traveler, recreationist or the general traveling public.  Areas designated as Highway Commercial should be located in the vicinity of, and accessible from interstate interchanges, intersections on limited access highways, or adjacent to primary or secondary highways.” The ELI zone is described as follows: “The Entryway Light Industrial zone is to provide large lots located directly accessible to arterial and other transportation systems for warehousing and light manufacturing and allow for limited commercial facilities for the adjacent community and interstate travelers.”

The proposed HC zone is compatible with the zoning south, west and east of the subject property. The lots north are developed for uses more compatible with HC zone than ELI zone uses. The overlay district standards will apply to any development that may occur on Lots 6 & 7. The Montana Sapphire Subdivision also adopted specific and restrictive site development requirements in the Subdivision Improvement Agreement (SIA) that apply to all the lots in the subdivision regardless of the zoning. These requirements will be applied when the site plan is approved as a Master Site Plan prior to issuance of a building permit. 

The applicant conducted a pre-application neighborhood meeting on June 25, 2012. Surrounding property owners or their agents attended the meeting. No surrounding property owners contacted the Planning Division staff prior to the Zoning Commission public hearing.

The Planning Division reviewed the application and recommended approval to the Zoning Commission and the Commission concurred. The subject property is adjacent to agricultural zoning in the county and mixed use, high density, residential uses, as well as commercial and industrial zoning in the city. The uses allowed within the proposed HC zoning are compatible with the surrounding zoning and neighborhood character. Any development of the property requires compliance with the new zoning and the ability to meet site design criteria and traffic safety standards. The 2008 Growth Policy and the West Billings Neighborhood Plan encourage 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 September 4, 2012, and received the staff report and recommendation. The applicant and agent provided testimony in favor of the application. There was no other testimony.

Before voting to approve or deny a zone change, the City Council shall 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 more flexibility of land uses that are more consistent with current development in the area and with Shiloh Corridor Overlay zoning. Highway Commercial zoning is compatible with the existing uses in Montana Sapphire Subdivision, Shiloh Crossing Subdivision to the east, and Lenhardt Square and St. Vincent Healthcare Subdivision to the north. 
• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6)  
The existing zoning is restrictive of mixed uses, and certain types of commercial uses. The proposed zoning will allow more housing and business choices in the area including mixed uses with multifamily dwellings.
• Coordinated economic development efforts that target business recruitment, retention, and expansion.(Economic Development Goal, page 6) 
The proposed zoning will encourage new businesses and development within the Montana Sapphire Subdivision.  

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning requires minimum setbacks, open and landscaped areas and building separations. The new zoning, as do all zoning districts, provides adequate building separations and density limits to provide security from fire and other dangers. The City Fire Department will ensure safe access to the site and provision for minimum fire flow to the new buildings.

3. Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety will be promoted by the proposed zoning. Lower density subdivisions increase response times by police and emergency service providers. The proposed zoning will increase the availability and variety of housing options for Billings’ residents and promote the general welfare.

4.  Will the new zoning facilitate the adequate provisions of transportation, water, sewerage, schools, parks, fire, police, and other public requirements?
Transportation: The proposed zoning may have some impact on the surrounding streets, and a traffic impact study may be required depending on the development that is built on the property in the future
Water and Sewer: The City will be able to provide water and sewer to the property through existing lines in the subdivision.
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 the city Public Safety Services.

5. Will the new zoning provide adequate light and air?
The new zoning, as do all zoning districts, require building setbacks and separations so
adequate light and air are assured.

6. Will the new zoning effect motorized and non-motorized transportation?
The subject property when developed will likely add more than 500 vehicle trips per day to
the adjacent streets. This will require a Traffic Accessibility Study or an update to one filed with the subdivision.

7. Will the new zoning promote compatible urban growth?
The new zoning does promote compatibility with urban growth. Lower density development is inefficient and ineffective in recovering the costs to extend city services. Higher densities of development, such as the proposed zoning, will allow the city to grow in a better urban pattern and form.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning does consider the character of the district and the suitability of the property for a different and a greater range of uses including multifamily uses. There are several existing and new multi-family developments in the area. The Growth Policy and the West Billings Neighborhood Plan both encourage higher density housing along arterials between major intersections to avoid the “strip commercial” development typical of older arterial streets in Billings. The increased traffic generation of a multi-family development will not impact existing neighborhoods and will have direct access to a collector street and an arterial street.

9. Will the new zoning conserve the value of buildings?
Surrounding property exhibits higher taxable land value. The property is currently vacant and should increase in value when developed. There are no buildings on the subject property.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit denser development and allow more housing choices in the area. The surrounding development is compatible and this is the most appropriate use of the land.