This is a special review request to allow the location of an all-beverage liquor license in a vacant tenant space in the Babcock Building located just south of Sky Point at 116 N Broadway. This is the former location of Z Pizza. The proposed location is zoned Central Business District (CBD) and is legally described as Lots 7-12 and a fraction of Lot 6, Block 93, Billings Original Town. The floor area for the proposed location includes 1,200 square feet on the ground floor and 300 square feet on a mezzanine level for a total of 1,500 square feet. The owner is the Babcock, LLC and Bruce Harper is the agent. The Zoning Commission is recommending conditional approval and adoption of the findings of the 3 criteria on a 4-0 vote.

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) the application 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 because it is within the CBD district where an all beverage liquor license may be allowed by special review. It also appears the proposal meets all of the zoning requirements within the CBD.
 
The application also conforms to the second and third criteria. The zoning regulations adopted by the City Council have designated several zoning districts where on premise consumption of alcoholic beverages may be allowed. The CBD zone is one of those districts. The adjacent properties are not residential and have similar customer and employee traffic. The proposed expansion to an all beverage liquor license will be compatible with these adjacent uses. The proposal is consistent with goals of the 2008 Growth Policy, specifically the goal of encouraging uses that are compatible with the character of the adjacent land use patterns.  This site is surrounded by a mix of commercial businesses within the city limits. The CBD zone district is intended to accommodate stores, hotels, governmental and cultural centers and service establishments at the central focal point of the city's arterial and transportation system. There are no direct impacts from the proposed location of the all-beverage liquor license that need to be mitigated by conditions of approval. The conditions recommended below are standard conditions applicable to all special review approvals for liquor licenses.

The Zoning Commission recommends the following conditions of approval. 

1. The special review approval shall be limited to Unit 2 of the Babcock Building located on Lots 7 through 12 and a fraction of Lot 6, Block 93, Billings Original Town generally located at 116 North Broadway.  
2. Increases in the area where alcohol service is provided greater than 10% of the area shown on the site plan (1,500 square feet) or the addition of an outdoor patio will require additional special review approval. 
3. 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. 
4. 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.
   
    

Approval of the special review will require the issuance of a new business tax determination for this location which will generate revenue for the Finance Department. A building permit may or may not be needed to accomplish the interior renovation of Unit 2 in the Babcock Building. The new business will add taxable value to the property taxes.  

This is a special review request to locate a gaming-restricted all beverage liquor license in a vacant 1,500 square foot tenant space in the Babcock Building at 116 N Broadway. The previous tenant, Z Pizza, served beer and wine with food service but no gaming was attached to this license. The lot is legally described as a fraction of Lot 6 & Lots 7-12, Block 93, Billings Original Town (BOT) and is 21,000 square feet in area. Surrounding development is commercial in nature with a mix of retail sales, eating establishments and other downtown businesses. The proposed venue for the license is to an up-scale bar with limited food service. No gaming is attached to this license. The applicant states in the application letter that this will help support the continued growth and stabilization of downtown businesses including other restaurants and entertainment.
 
The city has approved several liquor licenses within the vicinity, some for all beverage service and some for beer and wine service with gaming. Two outdoor patios are located in this area. The zoning code does not require a special review for a restaurant beer and wine license (no gaming) but does require a special review for an all beverage liquor license. All locations within the Central Business District (CBD) are exempt from the local 600-foot separation requirement to churches, schools, and public parks with playgrounds. The building is currently undergoing a remodel to finish the space for the new tenant. Surrounding development is commercial in nature with a mix of retail sales, eating establishments, and mixed use buildings.
 
North Broadway is a downtown commercial street with two-way traffic, on-street parking, and wide sidewalks for a high level of pedestrian activity. The 2013 traffic count data indicates an average daily traffic count of approximately 3,150 vehicles per day on this section of N Broadway. The vehicle traffic on this street is lower than adjacent and surrounding arterial streets. Vehicle traffic is not indicative of commerce in the area as most businesses rely on pedestrian access for their businesses.
 
The Planning Division has reviewed this application and recommended conditional approval to the Zoning Commission. The Zoning Commission concurred with this recommendation.

The Zoning Commission conducted a public hearing on August 5, 2014, and received the staff recommendation and testimony from the agent, Bruce Harper, and Kay Foster, one of the owners of the Babcock Building. There was no other testimony.

Mr. Harper stated he was the agent for the building owners and will be the owner of the all beverage liquor license proposed for Unit 2 of the Babcock Building. He stated the business plan is to offer a high-end cocktail bar with limited food service. He stated he and his partners have no interest in offering gaming at this location. Mr. Harper stated this would be a welcome addition to the downtown especially for visitors who have limited choices for before and after other activities and events downtown. Mr. Harper stated the business would be open from 4 pm until midnight on weekdays, an earlier opening time on Saturdays and a decision on Sunday hours has not been made yet. He stated if the special review is approved, they plan on a mid-October opening. In response to a questions from Commission member Ulvestad, Mr. Harper stated the restrooms are shared by all the units in the Babcock Building.

Ms. Kay Foster presented testimony in favor of the special review. She stated there are 14 residential apartments on the 2nd floor of the building but those apartments have a separate secure entrance from 2nd Ave North.

Commission member Dan Wagner made a motion to recommend conditional approval and adoption of the findings of the 3 criteria. The motion was seconded by Dennis Ulvestad. The Commission voted 4-0 in favor of the motion.

The Consistency with Adopted Policies or Plans is discussed in the Alternatives Analyzed section above.