Staff recommends the City Council approve this resolution to temporarily suspend BMCC 27-613 (a)(2) to allow the administrative review and approval of temporary new or expanded outdoor patio lounge areas where alcoholic beverages are served for on-premise consumption.

The Yellowstone County COVID-19 Unified Command’s Economic Response/Recovery Team in coordination with City staff, the Downtown Billings Partnership and other stakeholders has identified expansion of outdoor dining and lounge areas as a strategy to support reopening of business while maintaining social distancing and limiting contact between patrons during the COVID-19 Pandemic.

BMCC 27-613(a)(2) Requires a Special Review approval for an establishment in which additions and/or remodels include an outdoor patio lounge where alcoholic beverages are served for on-premise consumption. This is a somewhat lengthy process that includes an application submittal process, a hearing and recommendation by the City Zoning Commission, and a hearing and action by the City Council. Given the summer season is beginning and business are trying to operate under COVID-19 public health recommendations and requirements to reduce spread of the virus, having a quick administrative response to allowing temporary outdoor seating areas will benefit many businesses in Billings.

BMCC 27-304(c) allows for the City Council through resolution to temporarily suspend various requirements and restrictions, including those of 27-613(a)(2) that require uses of land to be in conformity with the City Zoning Regulations. This enables the City Council to temporarily waive the Special Review requirements for establishments in which additions and/or remodels include an outdoor patio lounge where alcoholic beverages are served for on-premise consumption.  Waiving this process will enable a faster administrative review process for temporary outdoor seating areas, while all other city codes that may apply to outdoor dining and drinking establishments would still apply. For example, the noise ordinance would still apply to any outdoor patios and lounge areas. Further, this temporary suspension of a Special Review approval for outdoor patios or lounges where alcoholic beverages are served does not mean any outdoor patios or lounges administratively reviewed under this suspension are permanent. An establishment choosing to turn a temporary outdoor patio or lounge area into a permanent one would be subject to BMCC 27-613(a)(2) after the end date specified in this resolution.

If this resolution is approved as recommended by staff, City staff, RiverStone Health staff, and State Department of Revenue staff that oversees liquor licensing will coordinate on administrative reviews for outdoor patios and lounge areas during the temporary regulation suspension period.

City Council may:

• Approve the resolution to allow temporary outdoor patio and lounge areas be approved administratively until October 2020 to help businesses operate during the COVID-19 pandemic, or;
• Disapprove the resolution to allow temporary outdoor patio and lounge areas be approved administratively until October 2020 to help businesses operate during the COVID-19 pandemic.

There may be some loss of application fees for Special Review Applications and maybe some other local processing fees that would normally be charged for a full review of an outdoor patio or lounge for the purposes of serving alcoholic beverages for on-premise consumption. However, the reason to provide an administrative approval process on a temporary basis for temporary outdoor patio and lounge areas in 2020 is to help the hospitality industry in Billings operate during the COVID-19 pandemic. A loss of some review and application fees is not significant for the Planning Division operations and is not expected to be significant for any other reviewing agencies, if applicable.