This is a special review request to allow a three-plex multifamily dwelling on a 10,114 square foot lot in a Residential 6,000 (R-60) zone, on Lots 7-12, Block 238, Billings Original Town. Larry & Marlene Thiel are the owners and Dave Hagstrom is the agent. The applicant is proposing to move in an older, 4-bedroom dwelling, and remodel the structure to install two, 2-bedroom apartments in a new basement, and restore the first floor to a 4-bedroom apartment. The property is addressed as 902 S 32nd Street. The Zoning Commission conducted a public hearing on May 4, 2010, and is forwarding a recommendation of conditional approval on a 3-0 vote.

Before taking any action on an application for a Special Review use, the City Council shall first consider the findings and recommendations of the City Zoning Commission. In no case shall the City Council approve a special review use other than the one advertised. The Council shall take one of the following actions:
• Approve the application;
• Conditionally approve the application;
• Deny the application;
• Allow withdrawal of the application; or
• Delay the application for a period not to exceed thirty (30) days.

If approved, the property could be developed for a 3-family dwelling and increase the city's tax base.

This is a request for a special review to allow the construction of a three-plex multifamily dwelling on Lots 7-12 of Block 238, Billings Original Town. The lot is currently vacant although a single family dwelling existed on the property many years ago. The property is zoned R-60 and multifamily (3 units or more) dwellings are allowed by special review approval of the City Council. In March 2010, the City Board of Adjustment granted the applicant a variance from the required arterial setback from State Avenue for a new structure. Without the variance approval, this triangular lot would have been difficult to develop even for a single family dwelling. The applicant intends to bring in a house previously removed from the Medical Corridor and stored on property in Yellowstone County for a number of years. The dwelling was previously used as a 4-bedroom single family dwelling. The new basement foundation would have 2, two-bedroom apartments and the first floor remodeled for a third dwelling unit. Off street parking, landscaping, and a small storage building are proposed for the site.

Most of the surrounding property is zoned R-60 with a variety of single family and two-family dwellings. Property south across State Avenue is the location of the Sugar Beet refinery and truck scale. The South Side Neighborhood Plan was adopted by the City Council in 1994 and updated in 2008. There were several major housing and land use goals of this adopted plan including:
• Encourage new housing construction on vacant residential lots
• Encouraging affordable housing units to be located in the neighborhood
• Encourage infill development with commercial and residential structures being built on existing vacant lots
• Discourage commercial development adjacent to residential areas
These goals do support the current application for residential multifamily dwellings on this in-fill parcel along State Avenue. The applicant has proposed a three-plex multifamily development and the site shows 5 off-street parking spaces as required by the site development code. The 2008 Growth Policy also supports in-fill development and new development that is compatible with existing land uses and neighborhoods. This development supports these goals.

The Planning Division reviewed the application with other city departments and recommended conditional approval to the Zoning Commission. 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 any neighborhood plan, and 3) 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 in so far that it might be within one of the zoning districts (the R-60 zone) where multifamily dwellings are allowed by special review approval. The form of the application is correct and the submitted site plan appears to be in conformance with site development and zoning regulations for multifamily dwellings.

The application also conforms to the second and third criteria. The zoning regulations adopted by the City Council have the purpose of promoting health, safety and general welfare. The proposed site plan will meet these objectives. In addition, the Planning Division proposed conditions of approval to minimize and otherwise mitigate any adverse impact the development may pose to the surrounding property. The Zoning Commission conducted a public hearing on May 4, 2010, and is forwarding a recommendation of conditional approval on a 3-0 vote.

The Zoning Commission conducted a public hearing on May 4, 2010 and the Planning Division presented the application and recommended conditions of approval. The applicant, Mr. Dave Hagstrom, provided an overview of the proposed project and answered questions from the Zoning Commission. The Planning Division presented the Zoning Commission with a letter of support from the South Side Neighborhood Task Force.

Two surrounding property owners provided testimony against the proposed development. Jackie Ziegler and Renee Hettenbaugh of 812 S 32nd Street testified in opposition. Ms. Ziegler and Ms. Hettenbaugh expressed concern with the truck traffic on State Avenue and the conflict with the new residential traffic from this lot on to State Avenue. Ms. Ziegler stated she has witnessed beet hauling trucks drive up over the curb adjacent to this vacant lot and use it for more area to turn around the truck. Ms. Ziegler stated she has seen trucks driving too fast and use this lot as a "safety" zone to get off State Avenue when the street is icy or slushy from snow. Ms. Ziegler stated beet trucks run 24 hours a day, 7 days a week for 4-6 months each year during the harvest time. Ms. Ziegler stated the plan looks reasonable on paper, but is concerned the development is too large for the lot. Ms. Hettenbaugh stated she has witnessed trucks drive through the middle of this lot as well, probably because it is one of the few vacant lots along this stretch of State Avenue. Ms. Hettenbaugh was concerned about residential traffic accessing the site only from State Avenue. Ms. Hettenbaugh requested a clarification of the dwelling entrances as shown on the site plan.

Mr. Hagstrom provide rebuttal to the concerns. He stated the property will be insured as are the beet hauling trucks and any accidental damage from trucks would be covered by the insurance. He stated the structure does fit within the lot and meets all of the required setbacks and has been setback as far as possible from State Avenue to minimize impacts from the street and the sugar refinery operations. Mr. Hagstrom stated the main entrance to the upstairs dwelling would be from the southeast side of the home closest to the parking area and the two downstairs apartment entrances would enter from the 9th Avenue South side of the home. Mr. Hagstrom stated the home he will be moving on to the site has similar architecture to the surrounding neighborhood and when renovated will fit with the existing homes.

The proposed 3-family dwelling at this location is consistent with adopted plans and policies as presented in the Alternatives Analyzed section of this report.