The Zoning Commission recommends approval and adoption of the findings of the 10 review criteria for Zone Change 1009. The City Council approved the zone change on first reading on February 28, 2022. A public hearing for the second reading is required to finalize the approval of the zone change. Staff recommends the City Council approve the zone change on second reading.

This is a zone change request for two lots within the Zimmerman Home Place Subdivision that are requesting annexation to the city. The current zoning was updated from the previous County adopted zoning of Residential 7,000, Residential 5,000, Residential 9,600, Public and Residential Multi-family-Restricted was adopted by the County in August 2016. When the County and City updated the zoning regulations in 2020 and 2021, new zoning districts were placed on these two lots that reflected to the maximum extent the previous zoning districts. The current zoning of these lots is N3 - Suburban Neighborhood (1 family dwellings), NX1 - Mixed Residential (1-4 family dwellings), NX3 - Mixed Residential 3 (5 and up attached dwellings), and P1 - Parks and Open Space. The arrangement of the current zoning districts is shown on the Zoning Map attachment. The proposed zoning intends to eliminate the N3-Suburban Neighborhood zoning from the northern edge of Lot 1 in Block 2 and replace it with N2 - Mid-century Neighborhood (1 and 2 family dwellings). The applicant also proposes to re-arrange the P1 zoning to be more distributed throughout the NX3 zone district and increases the area from 2.67 acres in Lot 1, Block 2 to 4.32 acres. In Lot 1 of Block 1, the applicant proposes to eliminate the 4.79 acres of N3 zoning on the northern part of the parcel and replace it with 1.02 acres of P1 adjacent to Colton Boulevard and 3.77 acres of NX1 zoning. This will match the southern 12.90 acres of existing NX1 zoning in Lot 1 Block 1. SOUTH: Zoning: RR1 (County), NMU and CMU1(City)
Land Use: Vacant land
EAST: Zoning: NO - Neighborhood Office
Land Use: Vacant
WEST: Zoning: N2 and N3
Land Use: 1 and 2 family dwellings

This area of Billings has been developing over the past 10 to 15 years following the connection of Zimmerman Trail through the Yegen Family Grand Avenue Farm and the major reconstruction of Shiloh Road, another major north/south connection. The Zimmerman family chose to zone the property outside the city limits in 2016, and then market the pre-entitled property to developers who would then annex and build within the city limits. In 2017, Town Pump bought all the commercially zoned property on the southeast corner of the subdivision and put in a new gas station, convenience food store, liquor store and casino. The northern lots of the Zimmerman Home Place subdivision are the subject of this proposed re-arrangement of zoning boundaries. Block 3, Lot 1 will remain in its current zone district of Neighborhood Office (NO) and is being annexed along with Blocks 1 and 2.

Village West Subdivision (west of the subject parcels) began building out in 2005. The subdivisions to the north - Poly Vista and Green Valley - are older subdivision that have homes built in the late 1970s through the 1980s, 1990s and 2000s. The unit ownership development just the west of Zimmerman Trail (Icewine Drive) was built in the 2010s after the completion of Zimmerman Trail south of Poly Drive.

Housing demand reached a high level in 2021 and the trend continues into 2022. Supply of all types of housing choices has not kept up with the demand. At least two decades ago, local planning and growth policy documents indicated a need for independent living units for aging residents who want to "downsize" from a maintenance heavy single family dwelling on a large lot to unit ownership or townhomes as well as rental apartments. The 2010 Census indicated Billings, like many other urban areas, saw a reduction in average household size to 2.3 persons. Smaller households, aging residents and the higher costs of all housing has driven the demand for apartments, townhomes, and smaller multi-family dwellings (studios and 1-bedroom units). Developers have made robust investments in multi-family dwelling choices in west Billings but less so in northwest Billings. There have been more new residential developments south of Broadwater Avenue than this area to the north. The most recent multi-family dwelling development in this area is at 41st St West and Avenue C - Wheatbaker Patio Homes (2016). Prior to 2016, only a handful of multi-family dwellings have been built (Grand Peaks and Falcon Ridge) north of Broadwater. There is a significant deficit of this type of housing choice in this area of West Billings.

There are challenges to an area of urban development that is on an infill property with existing development around it. This is not meant to ensure homogenous development patterns between neighborhoods, but the development plan should include similar and compatible zone districts, connectivity where and when needed, and recognition of similar goals for both types of property. The 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan goals and policies support the proposed adjustment to the zone district boundaries. 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 proposed zone change supports these goals. The 2016 Billings Growth Policy supports a broad range of housing choices, encourages more walkable neighborhoods with connectivity to other transportation options, and building the community fabric through urban designed public spaces. The proposed zone change supports these goals as well.
 

The applicant conducted a pre-application neighborhood meeting on December 16, 2021. The requirement of annexation stipulates a 1/4-mile notification area for surrounding owners. Over 680 individual property owners were notified of the proposed zone change. The pre-application meeting synopsis is attached to this report. Over 30 persons attended the on-line meeting. The Planning staff has received a few phone calls from surrounding owners regarding the process for the zone change and participation in the hearings. The Zoning Commission received some written comment prior to the hearing. These comments are included as an attachment. 

The Zoning Commission conducted its hearing on February 1, and received the staff report and recommendation, testimony from the applicant, Preston Lees and the agent, Craig Dalton from Performance Engineering. Six surrounding property owners also provided comments to the Zoning Commission including Jim Wise of 2202 Avalon Rd, David Munson of 2108 Avalon Rd, Jill Courier of 3834 Fairmeadow, Jeff Carroll of 2105 Avalon Rd, Breanne Mecham of 3804 Fairmeadow, and Chester Sharbono or 2104 Avalon Rd. 

Mr. Lees stated the company recently purchased these parcels from the Zimmerman family. The discussion with the owners included the understanding the development would be built to the expectations of the family standards to leave a living legacy of the Zimmerman family. The larger parcel with the NX3 zoning will be the first to develop and will have a lot of open space and amenities included. The developer will be responsible for finishing the south half of Colton Blvd in front of the property including the multi-use path to connect with the existing path on Zimmerman Trail. The proposed N2 zoning on the north end of this development is intended to provide townhome style dwellings with up to 3 bedrooms with garages off the interior roads and not off Colton Blvd. He stated this will keep the walkability of the new multi-use path very safe and usable. He stated the company will be the owner and management company for all the units and open space on the center parcel. The parcel to the west is not yet under consideration for a development concept. He stated the intent of changing the N3 along the north end of the west parcel was to ensure the area will be managed not as a parkland for kids to play but as an area that is vacant but tended by the management company.  He stated the P1 designated parts of the development will not be dedicated to the public but will be open to the public and to the new residents. 

Mr. Wise stated he was concerned with the dispersal of the parkland and that they would remain private and not public lands. He was concerned this would circumvent the subdivision requirement to dedicate parkland. He stated he was concerned with how traffic would be managed by this developer. He stated Zimmerman Trail was under-built and has been experiencing traffic back-ups since the day it opened. He stated both north and south bound traffic is backed up at every light from Rimrock Road down to Broadwater during the morning and evening rush hour. He stated he was concerned about the potential Avenue D connection to the west when the west parcel was developed and whether the people in this subdivision were aware of the development. He stated he was also concerned about the private road that will go east to west through the middle of the NX3 development.

Mr. Munson stated the previous zone change kept the single family zoning on the north end of both parcels in order to protect the homeowners to the north. He stated these homes enjoy a high market value in Billings and the zoning of N3 should be kept in place to protect their home values. He stated the developer threatened to build less-than-top-quality single family homes if the zone change to N2 was not approved. He stated this was not a very neighborly way to approach the surrounding owner's concerns. Ms. Courier stated she was not in support of the zone change to N2 from the N3. She stated this was why the previous county zone change was approved because of this identical zoning across the street. She stated changing this area to N2 would violate that previous agreement. She stated the developer should deal with the traffic impacts up front before the zoning was approved. She was also concerned about the increase in the NX1 zoning on the west parcel. Mr. Carroll stated he had a few concerns. He stated the NX3 is to be expected and is reasonable but now the N3 buffer area is really necessary to make the transition between the two neighborhoods. He stated when the zoning was updated, the R-96 was updated to N3. He stated the N2 is not a compatible zone with N3 because N2 allows for the 2-family residence. He stated the surrounding owners already negotiated with the Zimmerman family to keep the same zoning as on the north side of Colton. He stated the Harvard Review article about property values for 1 or two family homes adjacent to or close to multifamily dwellings was out of date and not really comparable to this market. He stated there are many $500,000+ homes in this neighborhood and those values need to be protected. He stated a two-unit dwelling would have a significant impact on the value of these single family homes. He stated this was not a minor adjustment to the zone districts.

Ms. Mecham stated this area of Colton and 38th St West is heavily traveled because of Arrowhead School. She stated there are a lot of accidents where 38th St W dead ends and turns into Colton Blvd. She urged the Zoning Commission to keep the N3 zoning intact. Mr. Sharbono stated he was opposed to the N3 changes. He stated there are currently 8 single family homes on the north side of Colton Blvd. He stated if the N2 zoning is approved, the developer would have up to 24 dwelling units facing these 8 single family homes. He stated this was not a good transition between the two neighborhoods. He stated the Harvard study was done over 14 years ago during the largest real estate bubble in history. He stated a more recent study from the Charter Foundation (2019) found that higher density rental units drives down the property value and marketability of nearby single family homes. He stated the proximity drives down buyer demand and reduces market values. 

Mr. Dalton provided response to the public comments. He stated the 2016 zone change by the County is already in place and can just come into the city as it is. He stated this owner desired to make changes to increase pedestrian safety on Colton Blvd. The N3 zone would require multiple driveway crossings from Colton Blvd. He stated the owner was interested in having more parkland and recreation spaces for the new apartments and the existing P1 designated area was not distributed enough. He stated the developer has carefully chosen the zone district to ensure the same category of zone districts face each other across a street but can change at a rear property boundary. The N2 and N3 are in the same category of zone districts. He stated Avenue D currently dead ends and at an adjacent owner's property line. This development will not build Avenue D through another owner's property. If this owner parcel is annexed and zoned, then Avenue D will connect to the west. He stated the traffic impact study is underway and will be completed prior to any development moving forward. He stated the owner would be required to follow all the City Engineer's recommended improvements and mitigation. 

Chairman Larson closed the public hearing. Commission member David Goss made a motion to recommend approval and adoption of the findings of the 10 criteria for Zone Change 1009. The motion was seconded by Greg McCall. The Commission voted 3-0 in favor of the motion.  

Council Public Hearing
The City Council held a hearing on first reading on February 28, 2022, and received the Zoning Commission recommendation, testimony from the applicant and agent and testimony from other interested parties. These interested parties included: Rick Leuthold from Sanderson Stewart, Jeff Carroll of 2105 Avalon Road, and Preston Lees, agent for the applicant and owner.

Mr. Leuthold stated he was here to observe the hearings this evening and did not intend to testify on this project but found this application to fit the needs and direction the city should be going in the next few decades. He stated he has been an engineer in the area for over 37 years. He stated he was part of the previous generation of applicants who literally annexed and zoned square miles of land into the city with only one type of zoning - R-96 - single family only on large lots. He stated history has proven this is not the best way to build great communities. He stated diversity in housing choices - and zoning - is a better way to build cities and towns. He stated this is generally how cities were planned and zoned in the 1940s and 1950s. He stated it was not unusual to find single family homes next to duplexes, next to a corner store near apartment buildings. He stated ReCode is helping undo some of these past planning errors by requiring a mix of zone districts and housing options when property is annexed and zoned for city development. He stated a great community builds for walkability, for affordability and attainable housing across the spectrum of housing choices.

Mr. Carroll stated he was opposed to the zone change and had provided a letter to the Council regarding this application. He stated in 2016, the Zimmerman family agreed to buffer the neighborhood to the north with the R-96 zoning - now updated to N3 zoning. The zoning on the south side of Colton Blvd should be same as the north side to be compatible. He stated there are no "townhomes" on the north side of Colton Blvd. He believes the city staff is being deceptive in its presentation of the application to the Council by stating there are townhomes on the north side of Colton Blvd.  He stated during the Zoning Commission hearing and during a conversation with the applicant about the development of this area, it took almost one-half of the meeting to discover these would be duplexes and a giant rental community. He stated there is a big difference between an N3 zone and an N2 zone district. He stated townhomes and multifamily rental units are not compatible with the neighborhood. 

Mr. Lees stated it is their intention to build a great new community. He stated his family has been building and developing in Billings for three generations and he is excited to be chosen by the Zimmerman's to develop this parcel. He stated they have been discussing the purchase with the family for quite some time. He stated the new dwellings on the south side of Colton Blvd will have rear loading garages so no driveways will cross the multi-use path they will build on Colton Blvd to connect the south end of 38th St W to Zimmerman Trail. The N3 zone will not work with this design because of the minimum setbacks and the shallow depth of the zoning district. 

Mayor Cole closed the public hearing. Council member Shaw made a motion to approve the requested zone change and adopt the Zoning Commission's recommended findings of the ten review criteria. The motion was seconded by Council Member Gulick. The Council asked a variety of questions regarding the development plans along Colton Boulevard in terms of the multi-use pathway and access to the units on the south side of Colton. There also were questions on the ditch that crosses the northwestern corner of the property and under Colton Boulevard and the planned park space in that area. There was concern from some Council Members that the previously zoned N3 property along the south side of Colton Boulevard should remain given the N3 zoning across the street. After significant discussion and questions for staff and the developer's agent, the City Council voted 7 to 4 to approve the motion. The zone change was approved on first reading.
 

The City Council may:

• Approve and adopt of the findings of the ten review criteria for Zone Change 1009 on second reading; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1009 on second reading; or,
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the zone change request.

The City Council approved the zone change on first reading and adopted the recommended findings of the ten review criteria. Unless the City Council has prepared different findings of the ten review criteria, the staff recommends the City Council approve the zone change on second reading.
 

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

• Policy A "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."
• Policy K "Increase residential densities within the West Billings planning area by approving requests for residential zoning that are consistent with this plan."
• Policy M "Development in the West Billings planning area shall provide for a variety of residential types and densities."
• Policy N "Medium and high-density residential development(including elderly and disabled housing) should be located nearby and within walking distance to commercial centers, medical facilities, parks, and recreational amenities."
• Policy R "Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments."

• 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 streetlights, 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

• 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

• Transportation: The applicant will start the process of developing a traffic impact study and will coordinate with the city Engineering Division. 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. The County Subdivision Improvement Agreement (SIA) anticipated the requirement for analysis of the traffic impact.
• 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 to be finished on Colton Boulevard and connection to the Zimmerman Trail multi-use path, the school and park to the northwest and the commercial area and facilities to the south and east. Pedestrian connections will be ensured through the development, and the property is close to three fixed route MET bus lines (two on Grand and one on Poly Dr). There are no traffic counts on Zimmerman Trail between Rimrock Road and Broadwater Avenue. Traffic counts on Poly Drive near the Zimmerman Trail intersection are about 5,000 vehicle trips per day. Traffic counts on Grand Avenue near the Zimmerman Trail intersections are between 18,000 and 20,000 vehicle trips per day. The proposed street connections with the development will allow multiple pathways for the new residents to enter and leave the area including Green Valley Drive and Avenue E. Green Valley Drive will be built to a local commercial street standard (the NO zone and the CMU1 zone), and will provide the most direct connection to Zimmerman Trail to the east (through Colton Boulevard) and Grand Avenue to the south. A traffic impact analysis will be done prior to any development and mitigation will be required by the City Engineering Division to ensure all existing and future street intersections are maintained in good capacity.    

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 Broadwater Avenue and Rimrock Road is beginning to experience growth and development similar to areas further south in West Billings. The city's investment in public infrastructure in the area is spurring the development of new areas for city infill.

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 adjustments to the zoning boundaries will encourage the most appropriate use of this land in Billings.