Staff recommends the City Council approve the ordinance amending Billings, Montana City Code (BMCC), Article 22-1000, Arterial Construction Fees.

BMCC, Article 22-1000 establishes the methodology for charging the arterial construction fee.  City Council adopted new zoning code on January 25, 2021, which overhauled the previous zoning code.  As part of this change in zoning codes, new zoning classifications were established and many previous zoning classifications were eliminated.  Thus, changes are required to bring BMCC, Article 22-1000, Arterial Construction Fee in line with the newly adopted zoning code.  Revisions to BMCC, Article 22-1000 include the following:

• Revise the zoning classifications in which properties are capped at 9,600 square feet from the previous zoning classifications to the comparable new zoning classifications,
• Update the zoning classifications in which property owners can apply for an arterial fee exemption.  The exemption allows properties that are in commercial and mixed use zones that are being occupied as single family residences to be charged at the residential rate and capping the square footage at 9,600 square feet.

Additional amendments include the deletion of references to bond statutes that are not applicable to the arterial construction fee and modifications to antiquated language.  

A public hearing was held on July 26, 2021 and Council approved the first reading of the ordinance change.  Approval of second reading is required for the ordinance to be adopted.

City Council may:

• Approve the amendment to Article 22-1000, BMCC, Arterial Construction Fees or,
• Not approve the amendment.  If not approved, arterial construction fees will not be able to be calculated using the adopted zoning classifications.

There is no financial impact to the City as a result of passing this amendment.