This is a zone change request from Neighborhood Commercial (NC) to Planned Development with underlying NC, to allow 1 microbrewery license and 1 restaurant beer & wine license (no gaming) on a 3.6 acre parcel of land north of Grand Avenue and west of 54th Street West. Planned Development zone changes may include some standard zoning provisions for uses, setbacks and site development but generally each Planned Development zone change is tailored for specific uses on a specific parcel. The property is currently un-developed and sits adjacent to the Cottonwood Grove neighborhood to the north. The legal description of the parcel is Lot 4, Block 1 of the MK Subdivision. The property owner, MYK LLC (Patricia Kramer) is represented by Scott Aspenlieder of Performance Engineering. The prospective buyers are Michael and Tyler Schmechel who own and operate several similar businesses in Billings. A pre-application neighborhood meeting was held on August 27, 2018, at Grace Montessori School and a Preliminary Review meeting was held on September 26, 2018. The Zoning Commission conducted its public hearing on  November 7, 2018, and is forwarding no recommendation on a vote of 1 in favor and 4 opposed to a motion to recommend approval and adoption of the findings of the 10 criteria for Zone Change 971. The City Council approved the zone change on 1st reading on December 17, 2018. A 2nd reading is required to approve the zone change.

Zone Change applications are reviewed using statutory criteria (MCA 76-2-304 and BMCC 27-1502.d) 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 (MCA 76-2-302 and BMCC 27-301).

City Council may:

• Approve the zone change on second reading and adopt the findings of the 10 criteria (MCA 76-2-304 & BMCC 27-1502.d) as recommended by Planning Staff to 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 findings of the 10 review criteria.

The Zoning Commission voted against a motion to recommend approval. The motion was made by Commission Member Larson, seconded by Commission Member Boyett and was based on the Planning Staff's recommended findings of the 10 review criteria. The Zoning Commission members who voted against the motion did not articulate any specific changes to the proposed findings. Zoning Commission members made general statements about why they intended to vote against the motion to approve the zone change. The Zoning Commission therefore, has no recommendation on this request.

Zoning Commission Member Dennis Ulvestad stated he was voting against the motion because he believed the applicant was using deceptive practices to gain a capital advantage over the new restaurant, bar & casino (The Lion's Den) that will be opening soon directly south of the subject property. Commission Member Ulvestad stated there was property available for sale that is properly zoned for the proposed use. This properly zoned lot is on the corner at 54th St W and Grand Avenue just east of the new Lion's Den location. Commission Chairman Dan Wagner stated he lives in the West End, does not mind driving to get services or groceries or dine out, and he would not want this use anywhere near his neighborhood. Commission Member Mike Boyett stated he believed this would set a precedent to encourage more Planned  Development zone changes to accomplish the "one-off" uses of land not normally allowed. Commission Member Michael Larson stated he was torn on this application. He stated he understood the neighborhood's hesitancy to accept this type of use and zone change. Commission Member Larson stated he had experienced a similar issue when he lived near Rehberg Lane and Grand Avenue in 1997. He stated MacKenzie River Pizza wanted to open a restaurant with a beer & wine license at 3025 Grand Avenue. He stated there was quite a bit of neighborhood concern at the time about increasing crime, drunk driving, robbery, trash and declining property values. Mr. Larson stated none of these predictions came true and he enjoyed being able to walk to a casual dining spot with his family. He stated he believed the same would happen here at 54th St W and Grand Avenue.

Commission Member Larson made a motion to recommend approval and adoption of the staff's proposed findings of the 10 review criteria and the motion was seconded by Commission Member Boyett. The Commission voted 1 in favor(Michael Larson) and 4 opposed to the motion. The Commission did not articulate any specific findings on the 10 review criteria other than the statements of the Commission members during the debate.

The findings of the 10 review criteria (MCA 76-2-304 & BMCC 27-1502.d) below are the proposed findings forwarded to the Zoning Commission by city staff.

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:
Community Fabric:

• Developed landscape areas in commercial areas encourage more pedestrian activity and vibrant commercial activity
• Attractive streetscapes provide a pleasant and calming travel experience in urban and suburban neighborhoods
• Outdoor public spaces provide casual and relaxing gathering areas for people
• Planning and construction of interconnected sidewalks and trails are important to the livability of Billings

The proposed zoning will allow the owner to sell the property to the buyer who is interested in creating 2 new businesses with enhanced site development requirements to encourage pedestrian activity, enjoyment of outdoor spaces in a casual and relaxing atmosphere. The proposed PD will restrict uses that do not contribute or enhance these place-making activities.

Strong Neighborhoods:

• 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

The proposed zoning requires provisions for all modes of travel to and from the property and site development requirements to increase outdoor activity.

Prosperity:

• A diversity of available jobs can ensure a strong Billings’ economy
• Retaining and supporting existing businesses helps sustain a healthy economy
• Successful businesses that provide local jobs benefit the community

The proposed zoning will allow the new owners, Michael and Tyler Schmechel, to locate within the city limits in order to sustain and grow their business. Craft brewing and family oriented restaurants that offer outdoor casual dining and activities are a growth business in Montana. The local economy benefits from a diverse offering of community and neighborhood services.
The proposed zone change is consistent with the following guidelines of the 2001 West Billings Neighborhood Plan:

• Promote efficient utilization of land within the West Billings planning area by promoting well designed, more pedestrian friendly, urban development patterns with a mix of uses and an efficient, creative use of land.
• Shorten automobile trips by locating non-industrial commercial development in close proximity to residential areas.
• Limit “community” commercial centers to appropriate intersections of arterial streets and spaced no less than approximately two miles apart. Community commercial centers should be compatible with the surrounding area and designed to serve the overall West Billings community unless otherwise approved by the governing bodies.

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning, as do all standard zoning districts, requires separation between buildings and setbacks from property lines. This should 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 PD provides for limitations on potentially incompatible uses – auto supply stores, gas stations, convenience stores and similar uses currently allowed by the NC zoning district.

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?

Transportation: The proposed zoning should not have any effect on the existing transportation system. An update of the existing TAS for the subdivision may be
required by the City Traffic Engineer at the time a building permit is submitted.
Water and Sewer: The City provides water and sewer to the property. There will be no additional impacts to the system from the proposed zoning.
Schools and Parks: Schools and parks should not be affected by the proposed zoning.
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 building separations to allow for adequate light and air.

6. Will the new zoning effect motorized and non-motorized transportation?
The new zoning should have no effect on transportation systems. The PD provides for an off system bike trail along the northern property line and requires bicycle parking facilities for each development within the PD.

7. Will the new zoning promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will allow this parcel to be developed with an in-demand type of dining and relaxation experience. Additional development within the 3-acre parcel will include other compatible uses.

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. The proposed zoning tailors the underlying zoning of NC to provide 2 additional uses but prohibits many other uses normally allowed in the NC zone. The PD also has operational restrictions to respect and protect the adjacent neighborhood.

9. Will the new zoning conserve the value of buildings?
There are no buildings on the subject parcel. The value of surrounding buildings (north and south) may be improved by the proposed development. Marketability of adjacent property is not included within this review criteria.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will encourage an appropriate use of land in this part of Billings.

If approved, the property will likely be developed within the next 2-3 years. This will add value to the property tax base. It is not known at this time how much value this would add, but it will increase the property taxes and the city assessed fees based on a non-vacant parcel. This increase in property taxes and fees may be off-set by new service demands based on the new development. No city agency expressed concern with providing service to this property.

If the zone change is not approved, the property cannot propose another zone change for 12 months. The prospective buyer may not purchase the property, and the owner would put the property back on the market. No additional tax or fee revenue would accrue unless the property was sold and developed under its current NC zoning.

The City Council on first reading approved the zone change and adopted the findings of the 10 criteria during its December 17, 2018 meeting on a vote of 9 in favor and 1 opposing. Staff recommends Council approve Zone Change 971 on second reading including adoption of the findings of the 10 criteria.