This is a zone change request from Community Commercial (CC), Residential Multi-family-Restricted (RMF-R), Residential 5,000 (R-50), Residential 7,000 (R-70), Residential 9,600 (R-96) and Public (P) to Planned Development (PD) for a new mixed use neighborhood with underlying zoning of PD-CC, PD-NC, PD-RMF and PD-RMH with additional area for public and private open space amenities. A pre-application neighborhood meeting was held at the subject property on April 24, 2017. A preliminary Review meeting was held with the surrounding owners, the applicant, Mont Vista, LLC and City staff on June 27, 2017. The Zoning Commission conducted a public hearing on August 1, 2017, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria on a 5-0 vote.

Zone Change applications are reviewed using statutory criteria referenced in the Alternatives Analyzed section of this memo. Zone Changes require approval through an ordinance. Zone Changes allow the change from one type of zoning district to another types of zoning – e.g. residential single family to residential multi-family or residential to commercial. A Zone Change cannot have conditions of approval and if approved, permits the owner to use the land for any purpose allowed within the zoning district.

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.

Prior to making a decision on the proposed zone change, the City Council shall consider the following findings of the 10 review criteria:
1.   Is the new zoning designed in accordance with the Growth Policy?
The proposed zone change is consistent with the following guidelines of the 2016 Growth Policy and the West Billings Neighborhood Plan (2001):
The West Billings Neighborhood Plan goals and objectives stated the need to locate retail and commercial areas based on arterial street intersections "…Commercial nodes should be comprised of, as much as possible, a diverse range of commercial, business office, and entertainment facilities. It is intended that neighborhood centers should be roughly the size of the center currently located at the northwest corner of Grand Avenue and Rehberg Lane and community centers roughly the size of West Park Plaza on Grand Avenue. Regional centers are intended to serve the entire Billings community and the region beyond. Non-retail, office and multi-family uses will be supported along arterial streets...”

• The proposed zoning of PD-CC and PD-NC is conforming and compatible with goals of the West Billings Neighborhood Plan. The intersection of 48^th St West and King Ave West was designated as a neighborhood center. Office use is planned for the PD-NC frontage along King Ave West with personal storage warehousing south of the office building(s). Another goal of the plan was to encourage better accessibility of everyday services to new neighborhoods. The proposed PD will allow the developer to inter-connect the residential and commercial areas so everyday services are walk-to conveniences for the residents.

Essential Investments, Strong Neighborhoods and Home Base (2016 Billings Growth Policy):
1) Neighborhoods that are safe and attractive and provide essential services are much desired.
2) Planning and construction of safe and affordable interconnected sidewalks and trails are important to the economy and livability of Billings.
3) Developed parks that provide recreation, special amenities (community gardens, dog parks, viewing areas), and active living opportunities are desirable for an attractive and healthy community.
4) Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels are desired.
5) Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, good will and social interaction.
6) A mix of housing types that meet the needs of a diverse population is important.
7) Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe.
8) Planning and construction of interconnected sidewalks and trails are important to the economy and livability of Billings.

• The proposed zoning would help create a new neighborhood with a mixture of uses within an area that is safe and attractive. The developer intends to build an inter-connected system of trails and paths so the residents have access throughout the area without having to drive. The PD agreement intends to allow a variety of housing choices in the area including apartments, condominiums, townhomes, manufactured homes and site-built single family dwellings. The proposed landscaping, fencing and buffer yards will ensure the safety of the residential areas, mitigate some of the traffic noise from 48^th St West and King Ave West (arterial streets), and buffer the commercial uses from the residential uses when necessary.   

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 and public safety will be promoted by the proposed zoning. The current zoning of the parcel was developed based on a subdivision that will not be constructed. The King Meadows Subdivision anticipated the construction of about 340 dwellings including single family, two-family and multi-family units. The new zoning will allow a greater variety of housing choices and will increase the density about 2 units per gross acre of land. In addition, the new zoning will allow a wider variety of neighborhood services in the proposed commercial zones.
 
4.   Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The proposed zoning will have a measurable effect on the transportation system. The applicant and agent have prepared a traffic study to be reviewed by the City Traffic Engineer as part of the subdivision application. The traffic study will make recommendations on the location of street access, any contributions needed for off-site impacts to other street intersections and any capacity increase needed due to new traffic from the development.
Water and Sewer: The City will provide water and sewer to the property. There will be no additional impacts to the system from the proposed zoning.  
Schools and Parks: Schools will be affected by the proposed zoning, although it is not known the number of children that may become residents of the new development.
Fire and Police: The subject property is served by city public safety services. The Police and Fire Departments had no concerns with the zone change.
 
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 an effect on vehicle and pedestrian traffic. The traffic study.prepared by the applicant for the City Traffic Engineer’s approval will determine the level of traffic impact and any mitigation required. Non-motorized travel – walking and biking – is an essential part of the circulation plan both within the proposed development and connecting to adjacent areas including Hogan’s Slough and the Hoop Dreams development to the east. Traffic counts in the area on King Ave West and 48^th St West are well below the expected volume on a principal arterial street. King Avenue West has an average daily traffic volume of 8,010 vehicles per day at this location, less than Poly Drive at 13^th Street West. 48^th Street West is less than most local streets with about 860 vehicles per day. As development increases in the area, these 2 arterial streets will need to build in additional controls, management facilities and safety features. MDT retains jurisdiction over the management of King Avenue West and the City will manage 48^th St West where it has been annexed to the City.
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatible urban growth in this area. The Hoop Dreams development to the east has a much higher density than the proposed density of this PD. The PD proposes to offer a variety of housing choices, with services available to the residents and the public. North of the subject property is the Lenhardt Square PD with a proposed urban village center along the King Avenue frontage. Further east is the St. Vincent’s Healthcare PD that will provide commercial and retail services at the intersection of King Ave West and Shiloh Road along with an 80+/- acre medical campus to the north and west. The proposed PD uses and development is compatible with this urban growth pattern.
 
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 the proposed use. This area between Shiloh Road and 48^th St West is an area undergoing rapid growth that is in need of more housing choices and neighborhood services. The proposed PD will provide these services and housing options and the development standards will help ensure its compatibility with adjacent property. The property is suitable for the proposed use given its location in the area.
 
9.   Will the new zoning conserve the value of buildings?
The property is currently undeveloped. Approval of the zone change will provide more certainty to surrounding land owners and may help to stabilize property values of adjacent buildings.
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning may encourage the most appropriate use of this land in Billings. This specific location and use is appropriate.
 

Approval of the zone change will have a future financial impact to the City's property tax base. The property is currently vacant so City fees are assessed based on the vacant rate for storm water and arterial construction fees. Once the property is developed, the City fees will be adjusted based on the new zoning and the developed status of the property. The tax base will increase based on the value of the improvements to the property. Demands for City services will begin at the time the first building or development permit is issued.

The property was annexed and zoned in May 2007 from A-1 to CC, R-50, R-70, RMF-R and Public zoning. The original subdivision plan was the basis for the current zoning boundaries. The subdivision, King Meadows, was never filed as a final plat. Subsequently, Lots 1 and 2 to the east were sold and developed by another party. Two zone changes for Lots 1 and 2 have been approved to expand the area for multi-family development and to consolidate the Public zoning for a larger active recreation area.

This is an application to change the existing zoning of 2 lots in the Western Sky Subdivision from the original zoning scheme based on an expired subdivision plan (King Meadows). The owners are proposing a mixture of land uses including neighborhood services, retail development, office space, multi-family apartments as well as an area for a manufactured home development. Each area has proposed an underlying zoning district (Master Plan) that corresponds to the proposed Planned Development zoning agreement. In addition to the creation of these specialized zoning districts, the applicant intends to building a network of walking and biking trails and unique outdoor recreation opportunities that exceed the requirements for park dedication in the subdivision regulations. The owners are working with the adjacent owner to the east to ensure the parkland dedication for the subdivisions connects and adds value for both areas.

The proposed Master Plan indicates 8.5 acres of PD-CC zoning, 10.3 acres of PD-NC, 15.3 acres of PD-RMF and 31.1 acres of PD-RMH. The proposed PD-CC zone is located at the intersection of 48th Street West and King Avenue West. All uses allowed by right or by special review in the standard CC zoning district will be allowed in the PD zoning district. The proposed PD-NC zone (east of the CC district) will also allow all NC uses but adds a use for personal storage warehousing if setback from the King Avenue West frontage. This provision was inadvertently not included in the draft PD agreement. Staff recommended adding the following language to Section 9. (Page 8) under Minimum Community Commercial and Neighborhood Commercial Setbacks and Landscaping Requirements. The Zoning Commission concurred with this recommendation.

• Building Setbacks - no changes from BMCC - except no personal storage warehouse, general warehouse or storage yard shall be constructed or established within 150 feet of the King Avenue West property line.

The Parks, Recreation and Public Lands staff submitted requests to the Zoning Commission to amend the agreement to include specific definitions of parks - public and private - as well as language related to the development of the parks and open space planned for the development. The applicant agreed to include the language and the Zoning Commission also concurred with the recommended changes. All of the above changes have been incorporated into the Planned Development document attached as an ordinance to this zone change report.

A final subdivision plat has not been approved or submitted by the applicant. The Master Plan states an intent to exceed the required parkland dedication requirements. These requirements will be based on the number of dwelling units proposed in the PD-RMF and PD-RMH areas shown on the Master Plan. The subdivision requirement is: "Sec. 23-1002. B. Park dedication requirements for subdivisions that provide for multi-family and condominium developments, and that provide permanent, multiple spaces for recreational camping vehicles or manufactured homes shall be in lieu of those provided in Section 23-1002(A) and are as follows: 1. 11% of the area of the net land proposed to be developed at a density of one dwelling unit per half acre or less;...". In addition to meeting this required minimum area dedication, the applicant will be the builder and developer of the facilities in these parkland areas including walking trails, landscaping, the multi-use trail along 48th St West as well as ensuring the trails and walkways allow connection to planned and existing open space to the east and south.

A Planned Development zone change may be considered if the proposal meets the intent of a PD zone by using flexible land use and design regulations to create a unique development that could not otherwise be created through the use of standard zoning districts. The proposed development will create a unique and flexible set of underlying zoning districts and will encourage pedestrian access between and through the development to adjacent open space areas. There are specific landscaping requirements proposed between the commercial zones and the adjacent residential zones that will provide the necessary screening between these uses. The proposed setbacks and landscaping are greater than required in the standard zoning regulations. The PD also specifies screening fences and walls for the proposed PD-RMH zone that will ensure the security of the development as well as providing a traffic noise barrier along 48th Street West.

The Planning Division held a preliminary review meeting on Tuesday, June 27, 2017 at the Planning offices. The applicant, agent and several surrounding property owners attended the meeting to review the specifics of the PD agreement and the Master Plan. There was some concern voiced by the property owners to the north and east about the proposed access from the subject property to King Avenue West. The original subdivision plan anticipated installation of a single shared street connection at the boundary of Lot 2 (adjacent to the east) and Lot 3 of the subject property. The proposed street connection submitted by the applicant for Montana Department of  Transportation (MDT) approval is shown 300+/- feet west of the common boundary between Lot 2 and Lot 3. The owner to the east, Cal Kunkel, expressed concern that MDT would not allow a second permanent street approach on Lot 2 and the proposal by the applicant would unnecessarily restrict future development on his property. The property owners to the north, Jan Rehberg and the Dyk family represented by Blaine Poppler, had similar concerns. The applicant and surrounding owners were going to discuss alternatives with MDT and bring those forward through the subdivision process.

The Planning Division reviewed the application and recommended approval based on the attached ten (10) criteria for zone changes. The Zoning Commission concurred with this recommendation. The subject property is located in an area of growth in the West End of Billings. This area west of Shiloh Road includes a large number of multi-family dwelling units (1,000+) with some area devoted to retail businesses and services. There are plans for future development of dwellings for ownership in this proposed PD as well as adjacent subdivisions. The proposed zoning supports the 2016 Growth Policy goal of locating compatible uses in proximity to similar uses, providing for interconnected sidewalks and trails, abundant landscaping along streets and corridors, provision of amenities and facilities in the parks and open space areas, and a mixture of housing types and choices. The proposal also has the ability to provide everyday services to the future residents by ensuring connections between the commercial areas to the north and the residential areas on the south. Any effects of the proposed development on traffic, non-motorized travel, public safety, irrigation ditches, and agricultural uses will be mitigated through the subdivision process. There are compatible uses adjacent to this parcel including Hoop Dreams Apartments to the east. The overall proposed residential dwelling density is about 7 dwelling units per gross acre of land (Lots 2 and 3).

The Zoning Commission conducted a public hearing on August 1, 2017, and received the staff recommendation, testimony from the applicant's agent, and testimony from Roy Close of 4905 Blue Spruce Circle, a surrounding property owner. The primary concern expressed by Mr. Close's testimony was the provision for a manufactured homes for the south half of the proposed development. He stated the area has good supply of affordable housing in the form of manufactured homes citing the 4 large manufactured home parks in the area - Shiloh Village, Casa Village, Golden Meadows and Willow Bend. He stated his research showed there are not enough patio or townhomes for purchase in the area and this is what the owner should plan for on the south half of the development. He urged the Commission to exclude manufactured homes as an allowable housing type in the planned development.

Forrest Sanderson, the applicant's agent from KLJ Engineering, stated the development is just at the beginning stages so there are many factors and impacts yet to be identified and finalized including traffic, storm water management, roads and driveways as well as how the proposed PD-RMH will build out. He stated as new ideas and information is obtained, the owners will incorporate this information. He stated the proposed PD is enforceable by the City and the owners and the proposed changes by staff are acceptable to the applicant. He stated the owner will move forward with further development investments once the zoning has been approved by the City.

The Zoning Commission chair closed the hearing. Commission Member Michael Larson made a motion to recommend approval, including the recommended additional language from planning and parks, and adoption of the findings of the 10 criteria. Commission member  Mike Boyett seconded the motion. The Commission voted 5 to 0 in favor of the motion.

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