The City Zoning Commission has no recommendation to the City Council based on a 2-2 vote on a motion to recommend approval of Zone Change 1004. Planning staff made a recommendation to approve the zone change and provided draft findings of the ten review criteria to the Zoning Commission. Those proposed findings are included with this report as well as a summary of the Zoning Commission public hearing discussion on the proposed zone change.

This is a zone change request using the Planned Neighborhood Development (PND) zone change process for a proposed annexation of a 27.81 acre parcel located south of Bell Avenue and north of Monad Road and the Bannister Drain generally located west of Shiloh Road. The proposed Mixed Residential PND will include 19.46 acres of Mixed Residential 3 (NX3), 2.055 acres of Mid-Century Neighborhood (N2), 1.632 acres of Mixed Residential 1 (NX1) and about .691 acres of open space (P1). The PND is a new zoning tool to help guide the coordination of annexation, subdivisions, and master planning for new city neighborhoods. The previous zoning code allowed urban-type zoning districts in both the city and the county. In many cases, developers were "pre-zoning" parcels in the county prior to annexation. The new PND process is allowing developers to process all the zoning with the City Council, phase the annexation of the property (if necessary), and coordinate both of these processes with subdivision or master site plan review. The new tool applies a level of certainty to all stakeholders, including the surrounding property owners.

This zone change is for a Mixed Residential PND and includes two types of mixed residential zoning (NX3 and NX1), an N2 zoned area adjacent to the County residences on Obie Lane along with the minimum required Public 1 zoning of at least 2% of the net area.

APPLICATION DATA
OWNER: Dorn Lowe, LLC (Rick Dorn) and Robert & Bonnie Bell
AGENT: Sanderson Stewart, Rick Leuthold, P.E.
LEGAL DESCRIPTION: Tracts 1 & 2 of C/S 2828 and the adjacent Bannister Drain right of way
CURRENT ZONING: Agriculture (A)
EXISTING LAND USE: Agriculture 
PROPOSED USE: Mixed Residential development with 1-2 family dwellings as well as multi-family residences
SIZE OF PARCEL: 27.8117 acres (gross) and 23.838 acres (net)

CONCURRENT APPLICATIONS:
Petition for Annexation 21-15

SURROUNDING ZONING AND LAND USE:

The applicant conducted a pre-application neighborhood meeting on November 23, 2021 at the offices of Sanderson Stewart at 1300 N Transtech Way. Thirty-three persons attended the meeting including the applicants, Rick Dorn, Scott & Bonnie Bell. The required notification area for all new PND zone changes is 1/4-mile from the property boundary. In this case, over 180 individual property owners and interested parties were notified of the pending zoning application. The summary of the meeting is included in the attachments. In general, the questions from the surrounding owners included interest in impacts from the new traffic on public and private streets. Nearby property owners expressed concern about the existing intersection of Bell Avenue with Shiloh Road especially where the bike path crosses Bell Avenue right before the right-turn only curb cut on to Shiloh Road. Traffic conditions and impacts from the development will be required to be addressed via the annexation or subdivision agreement with the City. If there is no subdivision, then a formal development agreement will cover similar issues such as traffic impacts and mitigation, construction of infrastructure and any waivers for future improvements that benefit the development.

Planning staff received five letters of comment and opposition on the proposed zone change before the Zoning Commission hearing. In addition, the applicant provided a letter of initial findings of a traffic impact study based on a concept development plan that included up to 434 dwelling units on the property. City staff and departments had no negative comments on the proposed annexation and zoning plan. These documents are attached to this report.

The Zoning Commission conducted a public hearing on January 4, 2022 and received the Planning staff report and recommendation, testimony from the applicant's agent, Rick Leuthold of Sanderson Stewart, and from several surrounding property owners including Ed Hofmann of 4246 Central Avenue (county resident), Judi and Lincoln Powers of 4185 Obie Lane (county residents), Dave Nordel of 3 Twin Pines Loop (city resident), Toby Erickson of 4142 Banbury Place (city resident), Mike Henthorn of 4160 Bell Ave (county resident), Roger Fuhrman of Casper Wyoming who owns a home at 191 Legends Way, and Vicki Dunaway of 112 Legends Way (city resident). Comments from surrounding property owners expressed concern with non-owner occupied dwellings (apartments & townhomes), disposal of contaminated stormwater, the park/walking path connection to Obie Lane, the lack of certainty from the developer on the number of dwellings or apartments, the potential impact to local residential streets and private streets in Twin Pines, the developer's responsibility (or not) for improving Bell Avenue due to traffic impacts, the under-construction of the Bell Avenue and Shiloh Road right-in/right-out intersection, the incompatibility of apartments with owner-occupied single family and townhome dwellings, the unsafe pedestrian environment that already exists on Bell Avenue, and sparsity of play space and parks north of Monad Rd. 

Mr. Leuthold provided comment and answers to some of the questions and concerns from the Zoning Commission and the public testimony. Mr. Leuthold stated the zoning assembly meets the requirement of the PND regulations for 2% of the net area for open space. These are shown on the proposed zoning map as linear spaces to establish public walk trails through and adjacent to the development. This is a zoning requirement. He stated the development will be done without a subdivision, so no other or additional parkland is required by law. He stated there will be outdoor spaces within the apartment complex for activities such as a swimming pool, barbecue area, and a small fenced area for a dog park. These spaces will not be zoned public because they will generally not be open to the public. He stated the linear park that runs from the dead end of Obie Lane to the west was intended to create a connection to benefit the current county residents in Bell Estates. He stated normally the planning regulations would require a vehicle connection to Obie Lane, but in respect to the county subdivision residents, only a pedestrian connection was proposed. He stated it is possible to remove the connection, but this would isolate the County neighborhood from all the surrounding properties, except for the one vehicle access from S 41st St W to Bell Avenue.

Mr. Leuthold stated all of the storm water will be eventually discharged to the Bannister Drain. This drain is owned by the city and is intended now to receive stormwater from surrounding city developments. He stated the city has strict regulations on the amount and quality of storm water that may be discharged to the drain. This includes ensuring the storm water discharged will not be harmful to the drain or to the Yellowstone River.

Mr. Leuthold stated the demographic of the real estate market has changed in the past five years and there is much more demand for rental dwellings than ever before. He stated these residents are no different from the nearby residents who own their dwellings. Many in the current market are older residents who do not want the burden and inflexibility of owning a home. He stated these are people who want or need the flexibility to move whenever or wherever they want to go. He stated these apartments and townhomes will be market rate - probably on the higher end of the market. He stated the preliminary traffic study indicates there will likely be required improvements to Bell Avenue and those will be done as required by the City Engineer as a result of the full traffic study recommendations. Mr. Leuthold stated a full traffic study is always required prior to final City Engineering approval for a development of this size and scope. He stated it is not usually done while the owner is still in the development entitlement phase such as an annexation and zone change. He stated the owner has not proceeded without consideration for the residents of Bell Avenue. He stated the section of Bell Avenue that fronts on the County residential lots (1,200 feet from 4180 Bell Avenue east to the multi-use trail crossing at Shiloh Rd) would not be subject to improvements by this developer. The County residents that front this section of right of way could petition to have improvements done, but those would be the financial responsibility of those owners. He stated the developer would build out all required Bell Avenue improvements that front this property, as well as the public and private right of ways proposed for the development. He stated private roads are required to be built to the same standard as a public road except for sidewalks and curbing. He stated again, any required mitigation from a final traffic impact study would also be done at the direction of the City Engineer. He stated he understands current residents believe that Bell Avenue is not wide enough, however he measured the existing pavement and according to city street requirements, the pavement and driving surface is wide enough for parking on the north side of Bell Avenue and two full driving lanes (one east/one west). He stated this is the requirement of the City's fire department for access and if the road did not meet this requirement, the previous developments of Morning Star, Legends West and Twin Pines would have been required to build Bell Avenue wider. He stated there is a difference of the most "direct" route north to Central Avenue and the most "convenient" route to Central Avenue. He stated the preliminary traffic information estimates up to 8% of the new traffic would venture through the existing Legends West neighborhood to access points north and west on Central Avenue. He stated this was based on a "convenience" estimate although both Legends Way and the private street in Twin Pines that connect to Central Avenue are curvilinear and do not appear to provide the most direct route. He stated most of the new traffic will be traveling out and to the east, either on Bell Avenue or south to Monad Road. He stated there will be fewer trips using Bell Avenue due to the limited access (south only on Shiloh). He stated he is willing and available to discuss any of the traffic impact concerns with the adjacent residents and the HOA of Twin Pines. He stated the roads in Twin Pines are private and could have restrictions based on approvals from City Engineering and public safety officials.

Zoning Commission member Greg McCall stated he understood the comments of the surrounding owners. He stated he has been in their shoes before. He stated living on the fringe of the city limits can be unpredictable and change can be hard. He stated that property owners have strong and protected property rights, especially when those owners proposed a zoning that appears to be in line with the city's regulations and policies. He stated the goal is not to make everyone happy, but to ensure the potential negatives are minimized including how traffic is handled, and how storm water is treated.  

Commission member Trina White made a motion to recommend approval of Zone Change 1004 and the adoption of the proposed findings of the ten review criteria. The motion was seconded by Greg McCall.

Zoning Commission member David Goss stated he is the newest member of the commission but has been in real estate for over 40 years, including 25 years as a Planning Commission member in several western communities. He stated zoning is not just for the developers, it should also protect the existing owners. Zoning shows how a property should develop and provides predictability all around. He stated he was concerned the NX3 zoning all the way to the west edge of the property will set the pattern for the next property to the west. This may not be the proper zone for this new street frontage of Big Pine Ct that will connect to Monad Rd. He stated zoning does not follow the developer so the intentions of this developer should not be considered by the Zoning Commission. He stated the commission should look to what is permissible under the proposed zoning, not just what this owner says they will do. He stated he was also concerned a full traffic study was not completed. Mr. Goss was concerned what would happen if the study showed insurmountable traffic impacts from the final study. He stated the impacts should be more fully understood before he could vote in favor. He stated both the residents and the applicant have valid points for support and opposition of the proposal. He stated the goal of providing higher density and housing choices is a good direction. He stated he would like to ensure this zoning is compatible and will fit in with the existing neighborhoods.

Zoning commission member Trina White stated as a real estate agent she can attest to the demand for rental housing. She stated she gets dozens of calls each week from clients or people in search of decent and safe rental units. She stated the biggest demand she sees is for the twin homes or town home units.

Commission member Greg McCall stated he appreciates the effort of this applicant to incorporate more housing choices. He stated to continue with the homogenous pattern of large lot single family or two-unit townhomes is not how we build resilient and financially sustainable communities. Homogenous sprawling subdivisions do not pay their way in taxes or fees.

Commission Chair Mike Larson stated this is one of those applications that checks all the boxes for level of difficulty for the decision makers. He stated there have been similar PNDs recommended for approval by the commission and eventually approved by the City Council. This one is different since it has existing neighborhoods on three sides so compatibility and good design is essential.

The Zoning Commission voted 2 in favor and 2 opposed to the motion to recommend approval to the City Council. Commission member Dan Brooks was absent from the meeting. A tie vote on a motion results in no recommendation to the City Council on this application.
 

The City Council may:

• Approve and adopt the findings of the ten review criteria for Zone Change 1004 as originally recommended by the Planning staff; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1004; or,
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the zone change request.

Approval or denial of the proposed zone change will not have an effect on the Planning Division budget.

Before making a decision on the requested zone change, the City Council shall consider Planning staff proposed findings of the ten review criteria, and if necessary amend one or more of these findings to support the final decision (approve or deny):

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 compatible uses and offer a range of housing choices and development densities. The West Billings Plan adopted a number of Goals, Policies, and Implementation Strategies. The proposed Mixed Presidential PND for the Dorn/Bell property is consistent with the following adopted Policies of Planned Growth Goal 1: Establish Development Patterns that Use Land More Efficiently
Policy R "Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments."

The proposed zoning is compatible with goals of the West Billings Neighborhood Plan. The proposed zone change and street layout will accommodate uses that are compatible in a mixed-use environment. The proposed development will also have good access to outdoor activities and is in proximity to commercial centers and transportation options.

The proposed amendment is also in line with the adopted 2016 Growth Policy goals for:
Strong Neighborhoods:

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels
• Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, goodwill and social interaction
• Safe and livable neighborhoods can be achieved through subdivision design that focuses on complete streets, pedestrian-scale street lights, street trees and walkable access to public spaces
• Neighborhoods that are safe and attractive and provide essential services are much desired Implementation of the Infill Policy is important to encourage development of underutilized properties

Home Base:

• A mix of housing types that meet the needs of a diverse population is important
• The Housing Needs Assessment is an important tool to ensure Billings recognizes and meets the demands of future development Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe
• Planning and construction of interconnected sidewalks and trails are important to the economy and livability of Billings Public safety and emergency service response are critical to the well-being of Billings' residents
• Homes that are safe and sound support a healthy community

The proposed layout for the Dorn/Bell property will allow the higher density housing to be located internal to the property and the dwellings adjacent to the County development to the east will be more similar. The dwellings on the Bell Avenue frontage will be similar to the two-unit dwellings in the Twin Pines development to the north. The layout of the linear parkland will provide pedestrian access from the dead end of Obie Lane to connect through to Monad Rd and the trail systems to the south. Another small linear park is also proposed for the north side of the Bannister Drain that borders the property on the south.

2) Is the new zoning designed to secure from fire and other dangers?
The zoning requires minimum setbacks, open and landscaped areas and building separations. The zoning assembly and street layout is designed to secure the development 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 change. Approval of the overall zoning plan and street layout will provide certainty both for the property owner and the surrounding owners. Annexation and provision of public health and safety services from the city will promote the general welfare of the area.

4) Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The applicant has started the process of developing a traffic impact study and will coordinate with the City Engineering Division. Concerns were heard at the pre-application meeting about the Bell Avenue intersection with Shiloh Road. This intersection is narrow and just south of the major round-about intersection of Central Avenue and Shiloh Road. In addition, the multi-use path on the west side of Shiloh crosses Bell Avenue on the west side of the Shiloh Drain. Drivers may only turn south on Shiloh Road. Drivers headed south on Shiloh Road may turn right into Bell Avenue. The total width of the Bell Avenue pavement is only 30 feet - about 4 feet less than a standard city local residential street section. The traffic study will analyze each of the adjacent street intersections and determine if mitigation or improvements are needed to accommodate the additional traffic. The City Engineering will determine the required improvements.
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 changes.
Schools and Parks: Schools and parks may be effected by the proposed zone change and development of a new city neighborhood. SD #2 did not provide any comments.
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?
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 the multi-use trail on Shiloh Road, the trail systems under construction and development in Lenhardt Square and St. Vincent's Healthcare development to the south and to the nearby Shiloh Conservation Area Trail system south of King avenue West. Pedestrian connections will be ensured through the development, and the property is close to a fixed route MET bus line. Traffic counts in the area on King Ave West are well below the expected volume on a principal arterial street. King Avenue West has an average daily traffic volume of 11,390 vehicles per day at this location, less than Rimrock Road at 17th St West. Shiloh Road just south of the Central Avenue intersection is about 16,300 vehicle trips per day. In comparison, 24th St West at Central Avenue handles almost 30,000 vehicle trips per day. Most local streets average about 2,500 vehicles per day. As development increases in the area, these three 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 manages Shiloh Road and Central Avenue.

7) Will the new zoning will promote compatible urban growth?
The proposed increase in the overall development density is compatible with urban growth and the provision of city level services to the new residents. The proposed zone district boundaries are consistent with the urban growth in this area and will be compatible with the surrounding neighborhoods.

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 King Avenue West and Central Avenue is undergoing rapid urban development and growth. Demand for new housing choices including townhomes and apartments is increasing. Providing a wide range of housing choices is suitable for this area.

9) Will the new zoning conserve the value of buildings?
The property is an undeveloped agricultural parcel. Approval of the zone change will provide certainty to surrounding landowners and may help to maintain property values of adjacent buildings.

10) Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed Mixed Residential PND with N2, NX1, NX3 and Public 1 zoning will encourage the most appropriate use of this land in Billings.