This is a zone change request from Residential 9,600 (R-96) to Residential 7,000 (R-70) on Lot 1, Block 5 and Lot 5, Block 2 of Grand Peaks Subdivision, a 7.8 acre parcel of land near the intersection of 54th Street West and Grand Peaks Drive. The applicant conducted a pre-application neighborhood meeting on June 24, 2015, at the King of Glory Lutheran Church, 4125 Grand Avenue. The Zoning Commission conducted a public hearing on August 4, 2015, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria for Zone Change 938.

City Council may:

• Approve the zone change and adopt the findings of the 10 criteria as recommended by the Zoning Commission ;
• Deny the zone change and adopt different findings of the 10 criteria;
• Allow the applicant to withdraw the zone change; or
• Delay action on the zone change request for up to 30 days.

If the zone change is approved the city fees based on zoning will increase. The additional units developed will be a more efficient use of city services and facilities.

Grand Peaks Subdivision received a zone change at the time of annexation from the A-S (county zoning) to R-70, R-50 and RMF-R. The two lots subject to this zone change request were already annexed and zoned R-96 through the Bishop Fox Subdivision. Grand Peaks purchased the lot from Bishop Fox and included the parcel as part of the subsequent Grand Peaks Subdivision. Grand Peaks also purchased 2 lots from Bishop Fox south of the subject property that were already zoned R-70. These have been subdivided and are in development.

Bishop Fox Subdivision received a zone change in 2005 at the time of annexation from A-1 to R-70, Public, CC and R-96. The Public zoning district parcel was sold to the City and developed for a new Fire Station. The R-96 lot was sold to Grand Peaks. The remaining parcels zoned CC are undeveloped. The Cottonwood Grove Subdivision - west side of 54th St West - was annexed and the zoning changed to R-70 in 2004. South of Cottonwood Grove is the MK Subdivision annexed in 2007 and zoned CC and NC. Northwest of the subject property is the future Cottonwood Park and the zoning is Public. Mont Vista Subdivision at the intersection of 54th St West and Rimrock Road was annexed and a Planned Development zone adopted in 2008.

The owner is requesting a zone change from R-96 to R-70 to slightly increase the allowed density for single family dwellings in the Grand Peaks Subdivision. The current zoning allows 1 dwelling for each 9,600 square feet of lot area and the proposed zoning would allow 1 dwelling for each 7,000 square feet of lot area. The current zoning would allow 35 single family dwellings on 7.8 acres of land and the proposed zoning would allow between 48 and 70 (as townhomes) single family dwellings. If the 2 large lots were subdivided further the number of units allowed would decrease due to dedication of land for street right of ways. The proposed zoning of R-70 also could allow the development of duplex dwellings - 2 attached dwelling units. The applicant has not indicated whether duplexes are under consideration. The immediately adjacent phase of Grand Peaks Subdivision is zoned R-70 but is developing as single family dwellings on lots from 8,000 square feet to 10,000 square feet. The surrounding zoning is similar to the proposed zoning with the exception of the County zoning to the north. The County zoning of A-1 is intended to accommodate agricultural uses and low density residential development on lots of at least 10 acres. The property to the north is within the limits of annexation for the city so the property could annex and develop at a future date with similar zoning and dwelling density.

The property has access from 54th St West and from Grand Peaks Drive. 54th St West is a principal arterial street and recent traffic counts show about 2,500 vehicle trips per day on this section between Grand Avenue and Rimrock Road. This will increase in the future as Mont Vista Subdivision is built out, Bishop Fox Subdivision is developed, and Grand Peaks in completed. The proposed new middle school at 56th St West and Grand Avenue will also increase traffic counts on 54th St West. The proposed zoning and development of dwellings will increase traffic volume on 54th St West. A traffic study was done with the original Grand Peaks Subdivision. The study may need to be updated based on the new zoning. The study will indicate where additional traffic control or management measure are necessary or if the current measures are adequate.
The applicant indicates the need for the zone change is to accommodate a changing real estate market for small yards but single family homes with subdivision amenities. The homes previously sold in Grand Peaks Subdivision range from $250,000 to $350,000. The City will require the applicant to install water and sewer services, roads and other city maintained services for the new development. The City will assume all future financial liability for maintenance and replacement of these facilities.

The Zoning Commission conducted a public hearing on August 4, 2015, and received the staff recommendation and findings, testimony from the owner, Jeff Junkert and the agent, Dennis Randall of Sanderson Stewart, and testimony from Jerry Ray, a property owner in the County just north of the subject property at 2245 54th St West.

Dennis Randall stated the proposed zone change is to meet the demands of a changing housing market in Billings. He stated most buyers are looking for a range of lot sizes from 7,000 square feet to 10,000 square feet. He stated the lots need to have this range to accommodate the individual needs of the buyers. He stated the zone change is the first step in the process to master plan the remaining undeveloped acres in the Grand Peaks Subdivision. He stated this is the only area in Grand Peaks subdivision that is R-96. He stated the original master plan of Grand Peaks contemplated a much higher density but has developed at a much lower density so far. In response to a question from Chairman Dailey, Mr. Randall stated the undeveloped 29 acres will be built out in phases over the next few years. He stated this will depend on the market and whether adjacent property develops. He stated the original traffic study is updated each time a new phase is started and since the density of units is less than originally planned, the numbers are going down and not up. In response to a question from Board member Ulvestad, Mr. Randall stated the other zoning districts, R-50 and RMF-R, will not need to change since the anticipated master plan can accommodate lots for single family units already.

Mr. Jeff Junkert stated the current year's phase, directly south of the lots proposed for the zone change, has sold very well and has met the needs of the market. He stated he has sold 24 of the 32 lots in this phase just this year. He stated the lots range from 7,000 square feet to a little over 10,000 square feet. He stated the variability of the lot sizes helps accommodate the different house and garage demands from individual buyers. In response to a question from Chairman Dailey, Mr. Junkert stated he is not certain any twin homes or townhomes will be master planned for the subject property. He stated 4 lots in the current phase were platted along 54th St West to accommodate townhomes and they may do the same for these lots. He stated larger lots for townhomes would not be planned for the interior lots in the proposed master plan since this would not be consistent with other parts of Grand Peaks. 

Mr. Jerry Ray of 2245 54th St West testified in opposition to the zone change. He presented a photo of his home and the original Grand Peaks Subdivision Improvement Agreement (SIA) to the Commission. He stated he owns 20 acres north of the subject property where he intends to develop a subdivision of upper scale dwellings. He is concerned with the adjacent subdivision of smaller lots and smaller scale homes developing could affect the marketability and value of his property. He stated in 2007 the SIA for Grand Peaks restricted the first row of lots on Lot 2, Block 4 - the lot already zoned R-70 directly east of the subject property - to stand alone dwelling units in accordance with the R-96 zoning requirements. He stated he was opposed to the zone change unless this same restriction can be placed on Lot 1, Block 5, lots also directly adjacent to his property. He stated he has spoken with Mr. Junkert about this restriction but is not satisfied with Mr. Junkert's response so far. In response to a question from Board member Hawkins, Mr. Ray stated he did have input in the original subdivision of Grand Peaks and that is why the restriction is in the SIA.

Mr. Junkert provided rebuttal testimony. He stated this was just the beginning of the master planning process for the remaining 29 acres of Grand Peaks. He stated until more is known about where roads will connect and whether Colton Boulevard will be platted or not between his property and Mr. Ray's property, adding a restriction to Lot 1, Block 5 is not reasonable. He stated he believes lot size has nothing to do with creating or sustaining property value. Mr. Junkert stated the Grand Peaks Subdivision has demonstrated its ability to create and sustain value over time. The concern Mr. Ray has about losing value is not supported by the existing developments in Grand Peaks Subdivision.

Board member Mike Boyett made a motion to recommend approval and adoption of the findings of the 10 criteria. The motion was seconded by Board member Barbara Hawkins. Board members Boyett and Hawkins both stated there is no option to condition or amend the pending zone change request and directed Mr. Ray to continue his involvement as the subdivision is developed by Mr. Junkert. The Zoning Commission voted 5-0 in favor of the motion.

The Planning Division reviewed the proposed zone change and recommended approval based on the findings of the 10 criteria for zone changes. The Zoning Commission concurred with this recommendation and proposed findings. The proposed zoning is similar to surrounding property in the city and is compatible with existing neighborhoods. The proposed zoning will be a more efficient use of land allowing a minimum of density
of 4 dwelling units per gross acre of land. The slight increase in density and traffic volume should have no effect on adjacent neighborhoods or streets. 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.

Prior to making a decision on the request, the City Council shall consider the following findings:
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 allow undeveloped property within the Grand Peaks Subdivision to develop in a similar pattern and density consistent with the surrounding property. The zoning district is compatible with the neighborhood character and land use patterns.
• The Infill Policy encourages development of vacant property within the city limits with emphasis on housing choice and efficient use of existing city infrastructure and services. The proposed zoning will allow a wider variety of housing choice, lot size and will make more efficient use of city infrastructure.

2.   Is the new zoning designed to secure from fire and other dangers?
The new zoning requires minimum setbacks, 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 and public safety will be promoted by the proposed zoning. Development of the vacant land in the city will promote the public health and safety of the adjacent residential neighborhood by providing full development of streets.
 
4.   Will the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The proposed zoning and subsequent development will have an impact on the surrounding transportation systems. The original subdivision provided a traffic study based on the probably build out of the property. The City Engineering Division will work closely with the owner to ensure the existing analysis is still applicable given the new zoning.   
Water and Sewer: The City will provide water and sewer to the property. There should be no additional impact to the system from the proposed zoning.   
Schools and Parks: There may be a limited impact to schools from the proposed zone change. Residential development is an allowed use in both the current zoning and the proposed zoning. The development plan is for primarily single family dwellings as either townhomes or individual lots.    
Fire and Police: The subject property will be served by city public safety services. The Police Department had no concerns with the zone change and the Fire Department will be involved in the future development whether as a subdivision or a Master Site Plan approval process. Access for emergency services will assured through this process. Fire Station #7 is less than ¼ to the south.    
 
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?
The new zoning will have a minor effect on vehicle and pedestrian traffic. Grand Peaks Drive is not yet complete to the north where it is intended to intersect with 54^th St West. The original subdivision of Grand Peaks included a traffic study to determine the appropriate level of traffic management and control. The proposed zoning allow a slight increase in housing density and the traffic study should be updated to include the potential for additional dwelling units.
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will allow residential uses with an efficient density.
 
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 mix of housing types in the neighborhood.
 
9.   Will the new zoning conserve the value of buildings?
The property is currently vacant. The value of existing buildings should increase when the property is developed.
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit residential dwellings of similar type and density as the surrounding neighborhood and is the most appropriate use of land at this location.