This is a zone change request from Neighborhood Commercial (NC) to Community Commercial (CC) on Lots 1 through 8, including Lots 6 & 7 as C/S 1716, Block 15 of Central Heights Subdivision, 5th Filing. The property is a 65,120 square foot parcel of land. The property is owned by Rimrock Mini-Mall, LLC and the agent is Marshall Phil, P.E., of Blueline Engineering. The property is currently developed and is the north units of the Rimrock Mini-Mall at 109 S 24th Street West. The owners conducted a pre-application neighborhood meeting on April 29, 2013. The pre-application meeting notes are included as Attachment C. The Zoning Commission conducted a public hearing on June 4, 2013, and is forwarding a recommendation of approval on a 3 to 0 vote.

State law at Section 76-2-304, MCA, 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

The city service fees for arterial construction and storm water will be adjusted to the new zoning if it is approved. The new fees will be higher than the current assessment for Neighborhood Commercial zoning districts. The property may increase in value over time resulting in a larger tax base for the area.

The applicant is requesting to rezone the north half of the Rimrock Mini-Mall from NC to CC to facilitate leasing spaces to a wider range of businesses. The property is fully developed and was rezoned from residential to NC in 1977. There is no intent to demolish and reconstruct a new building on the property but new tenants may remodel interior spaces. The property consists of 8 lots with frontage on S 24th Street West south of Eldorado Drive.

The current owners have refurbished the façade of the mini-mall in recent years. The primary access to the property is from S 24th Street at a signalized intersection with Mall Drive to the west. There are 2 additional non-signalized accesses from S 24th Street West, an access from Eldorado Drive, and an access from Pueblo Drive. To the east, the property is separated from a residential neighborhood by an alley. One block to the east is Central Heights Elementary School. Across S 24th Street West is the Rimrock Mall and K-mart. The property to the north is CC zoning and is developed for an Albertson’s grocery, Pro Auto Sound, a Holiday gas station and convenience store, Ace Hardware, Jackpot Casino, Taco Bell, Midas Muffler, and Bob Smith car dealership.

The south half of the Rimrock Mini-Mall is zoned CC and there are numerous retail and service businesses within these buildings. Across S 24th Street West is the Rimrock Mall and K-mart. South 24th Street West is an arterial street that connects with several east-to-west arterials including King Avenue West to the south and Grand Avenue to the north. The current volume of traffic on S 24th Street West averages 24,230 vehicle trips per day (2013). There should be no impact on this traffic from the re-zoning since the commercial businesses exist and any new tenant would not generate excess traffic above current levels. The 2008 Growth Policy encourages the location of commercial uses at intersections of arterial streets to avoid “stripping” commercial zones narrowly along arterial streets. The practice of commercial strip zoning is evident in the traffic congestion and accessibility problems along Main Street, Grand Avenue, and 24th Street West. The strip zoning on 24th Street West has been in place since the 1970s.

The primary difference between the NC zone and the CC zone is the allowance for on-premise sales of alcoholic beverages for restaurants, bars and casinos. The CC zone also allows unlimited floor area for business while the NC zone generally limits floor area for a single tenant to 10,000 square feet or less. The CC zone allows warehousing and mini-storage. The CC zone allows a maximum building height of 45 feet and a front property line minimum setback of 20 feet. The arterial street setback is 60 feet to the centerline of the right-of-way for any new building and 50 feet from the centerline for any required parking. It appears the rows of parking that face S 24th Street West are within the arterial setback but the building does meet the required arterial setback. The site also appears to meet all other required zoning setbacks, building heights and lot coverage. The site does not meet the required landscaping for commercial developments. These nonconformities may continue unless the property is redeveloped or the building is expanded by more than 25% of its existing area.

The applicant conducted a pre-application neighborhood meeting on April 29, 2013. Two surrounding owners attended the meeting and the Planning Division staff did not receive any communication from the surrounding owners prior to the Zoning Commission hearing. The 2008 Growth Policy encourages the compatibility of adjacent zoning to new zoning especially in established neighborhoods. The proposed zoning is compatible with the adjacent zoning and existing land uses to the north, west and south. The location of an on-premise alcohol license would require a special review approval and a waiver of the 600-foot separation from the Central Heights Elementary School.

The Zoning Commission conducted a public hearing on June 4, 2013, and received the staff recommendation and testimony from the applicant's agents, Marshall Phil of Blueline Engineering and Rob Veltkamp. No other testimony was received. The Zoning Commission is forwarding a recommendation of approval and adoption of the findings of the 10 criteria on a 3 to 0 vote.

The Planning Division reviewed the application and recommended approval to the Zoning Commission based on the ten (10) criteria for zone changes. The Zoning Commission concurred with this recommendation. The subject property is adjacent to commercial uses to the north, south, and west. Uses allowed in the CC zoning are compatible with the surrounding zoning and neighborhood character on S 24th Street West. Some uses in the CC zone would only be allowed by special review approval such as on-premise service of alcoholic beverages. Any development or re-development of the property requires compliance with the new zoning and the ability to meet site development requirements and traffic safety standards. 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.

Prior to any making a decision on the proposed zone change, the City Council shall consider the following 10 criteria:

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 types commercial uses to expand from the current restricted zoning of NC to the uses allowed in CC. It appears the uses will be compatible with the neighborhood character. Certain uses would require special review approval of the City Council prior to locating on the property including alcohol licenses.

• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6) The existing zoning is restricted to 10,000 square feet of floor area for each business and certain uses are not allowed. The proposed zoning will remove the floor area limitation and allow additional business choices in the area.

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.

3. Whether the new zoning will promote public health, public safety and general welfare? Public health, safety and general welfare will be promoted by the proposed zoning. The different zoning districts for the single property create substantial difficulty for the owner to fill vacancies in the tenant spaces.

4. Will the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement? Transportation: The proposed zoning may have some impact on the surrounding streets if the property is redeveloped in the future. A traffic impact study may be required depending on the development that is built on the property in the future. New development that generates 500+ new vehicle trips per day will require a Traffic Accessibility Study (TAS).

Water and Sewer: The City provides water and sewer to the property. Schools and Parks: There should not be any 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 proposed zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.

6. Will the new zoning effect motorized and non-motorized transportation? Traffic generation from a commercial site is dependent on the specific uses within the development. The site is currently developed and the change in zoning should not have any effect on existing traffic patterns.

7. Will the new zoning will promote compatible urban growth? The new zoning does promote compatibility with urban growth. The new zoning will allow the owner to fill vacant space and will increase investment in the property.

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 district and the suitability of the property for commercial uses including neighborhood and service businesses.

9. Will the new zoning conserve the value of buildings? The existing commercial building and development will be conserved by the new zoning.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings? The proposed zoning will permit a greater variety of uses on the property and is the most appropriate use of the property.