This is a request for a special review for the addition of an outdoor patio to an existing location approved for a beer and wine license with gaming at 501 Hilltop Road on a 37,750 square foot parcel of land in a Highway Commercial (HC) zone. The subject property is legally described as Lots 2B and 2C, Block 1, Dicono Subdivision. The existing gross floor area of the King’s Korner Casino is 4,146 square feet. The location will require a waiver of the 600 foot separation from this location and the Bench Elementary School at 505 Milton Road. The Zoning Commission held a public hearing on August 3, 2010, and voted 5-0 to recommend conditional approval and a waiver of the 600 foot separation to Bench Elementary School.

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 proposed use 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 meets required setbacks and does not exceed maximum lot coverage. The location is in one of the zoning districts that allow the addition of an outdoor patio by special review approval. The application is conforming to the purposes of the regulations and the 2008 Growth Policy. The outdoor patio addition will allow conversion of the existing King’s Korner Casino into a full-service restaurant.

The application also conforms to the second and third criteria. The submitted drawing with this application appears to meet all zoning requirements for setbacks, lot coverage and landscaping. This is an opportunity to convert an existing casino to a restaurant with alcoholic beverage service and gaming. The primary focus of the current business is gaming. The new business is proposing to remodel the location including the installation of a full kitchen and the proposed outdoor patio. The outdoor patio will be large enough for outdoor dining. One of the concerns with outdoor patios is the potential for noise and Planning staff is recommending conditions of approval to address this issue since there is a 32-unit manufactured home park just to the north of the property.

The property is approximately 500 feet south of the property line of Bench Elementary School on the north side of Milton Road. The Zoning Commission found there is no direct physical access between the locations, buildings between the two uses completely block the view of the school from the proposed patio and there are substantial barriers between the two uses. The Zoning Commissions recommends a waiver of the 600 foot separation between the two properties.

This is a request for a special review to allow the addition of an outdoor patio to an existing bar and casino, King’s Korner Casino, at 501 Hilltop Road. The property is zoned HC and is generally located on the north side of Hilltop Road just east of the Lake Elmo Drive overpass. There is a manufactured home park to the northwest and offices to the northeast. Access to the site is from the private access road off Hilltop Road. Property to the west is CC and the south is HC and both are developed for self storage warehouses. In 1997, this location was approved for the existing beer and wine license with gaming by City Council approval of Special Review #611. A waiver of the 600 foot separation distance to Bench Elementary School was not required because the application did not include the lot to the north that is the parking lot for the casino. Three years after the approval for this location, another application to add a liquor license and gaming at the gas station and convenience store to the east was denied since the City Council at that time chose not to waive the 600 foot separation distance to Bench Elementary.

The Unified Zoning Regulations requiring a 600 foot separation were modified by the City Council in 2002 to provide greater clarity on when a waiver may be considered. The current regulations allow the City Council to consider a waiver if it finds a physical barrier separates the uses such as an arterial street with no signalized pedestrian crossing, a building or buildings entirely obstructs the view of the location and there is no direct physical access between the uses. In this instance, there are substantial physical barriers between this use and the elementary school, there are buildings that entirely obstruct the view of this location from the school, and there is no direct physical access between the sites. The Planning staff recommended a waiver of the 600 foot separation distance to Bench Elementary School at 505 Milton Road. The Zoning Commission concurred with this recommendation.

The existing casino has 4,146 square feet of occupied floor area and the proposed patio will ad 1,450 square feet. The patio will be enclosed, as required by state regulations for alcoholic beverage service although the site plan does not indicate the height or style of the fencing.

The Planning Division reviewed this application and recommended conditional approval. The Zoning Commission concurred with this recommendation and is forwarding the following conditions for approval: 
 1. The special review approval shall be limited to Lots 2B and 2C, Block 1, Dicono Subdivision generally located at 501 Hilltop Road.
2. Any expansion of the proposed patio, building, building occupancy or parking lot greater than 10 percent of what is shown on the submitted site plan will require an additional special review approval.
3. The development of the outdoor patio shall be in substantial conformance with the submitted site plan.
4. All new site lighting on the building, in parking areas or outdoor patio shall have full cut-off shields so lighting is projected to the ground and not on to adjacent properties.
5. The owner shall provide a fence of at least 4 feet in height around the outdoor patio lounge. The fence shall have at least one, exit-only gate to provide an emergency exit. Access to the outdoor patio lounge area shall be through the main indoor area of the business.
6. The owner is allowed to have background music and un-amplified live outdoor entertainment on the outdoor patio lounge. Background music is amplified music not audible beyond the outdoor patio lounge.
7. There shall be no outdoor public address system or outside announcement system of any kind.
8. A solid waste storage area shall be enclosed on three (3) sides by a sight-obscuring fence or wall and by a sight-obscuring gate on the remaining side. This enclosure shall be constructed of normal fencing materials. No chain link or wire fencing will be used for sight-obscuring enclosure.
9. The owner will install 6 (six) trees as required for the 63 provided parking spaces. The trees may be installed within the existing landscaped area. Trees must be installed so they do not block the clear vision areas at the private drive and Hilltop Road.
10. 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.
11. 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.

**NOTE** Approval of this Special Review does not constitute approval of a building permit, sign permit or fence permit. Compliance with all applicable local codes will be reviewed at the building permit level. This application is for a Special Review as noted above and no other request is being considered with this application. The Planning Division points out that the use and development of the property must be in accordance with the submitted site plan.

The Zoning Commission conducted a public hearing on August 3, 2010 and received the Planning staff report and testimony from the agent, Michael Schmechel. Mr. Schmechel presented a concept drawing of the remodeled building and new patio. Mr. Shcmechel stated his intention was to refocus the business as a restuarant for casual dining with an outdoor dining patio. Mr. Schmechel stated he will close the property transaction on or about August 15, 2010. Mr. Schmechel stated he will comply with the proposed conditions of approval and requested approval of the Commission. No other persons testified in favor or in opposition to the special review.

Consistency with adopted policies and plans is discussed in the Alternatives Analyzed section of this report.