The Zoning Commission recommended approval and adoption of the findings of the 10 review criteria for Zone Change 1020. The City Council approved the zone change on first reading on October 24, 2022. A second reading is required to pass the zone change ordinance.

This is a zone change request for a property for annexation to the city limits of less than 10 acres in area. The requirement to submit a Planned Neighborhood Development (PND) is not triggered unless the property is 10 acres or larger. The current zoning in the County is Rural Residential 3. This zone requires lots to be at least 3 acres in area. The proposed zoning is Mixed Residential 1 (NX1) a district that allows 1-4 unit structures and Mixed Residential 3 (NX3) a district that requires at least 5-unit per structure. The NX1 zone requires a maximum height of 2.5 stories or 27 feet and the NX3 zone requires a minimum height of 2 stories, a maximum height of 4 stories for multi-unit structures. Side-by-side unit structures have a maximum height in the NX3 zone of 3 stories. The property is legally described as C/S 2974, Parcel 2B amended and is 6.99 acres in area. SOUTH:
Zoning: Public 2 (P2)
Land Use: Yellowstone Valley Memorial Park
EAST:
Zoning: Neighborhood Mixed Use (NMU) and Corridor Mixed Use 1 (CMU1)
Land Use: Vacant
WEST:
Zoning: N2
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. In 2017, Town Pump bought all the commercially zoned property on the northwest corner of Grand and Zimmerman Trail and put in a new gas station, convenience food store, liquor store and casino. The northern lots of the Zimmerman Home Place subdivision were purchased by a local development company and an annexation and zone change to adjust boundaries was submitted in early 2022. This project was approved and new apartment buildings are under construction to the north and east of the subject property.

The subject property boundary line was amended in 2012 after the County Board of Adjustment approved a reduced lot area for the previous zoning of Agriculture Open-Space (A-1). The lot was reduced from 10 acres to 7 acres through the lot line adjustment. The Yellowstone Valley Memorial Gardens, Tract A of C/S 2974, to the south was increased in lot area as a result. When the County updated its zoning code in 2020, the new zoning for each parcel reflected the area and use of each one. Tract A for the cemetery was updated to Public 2 (P2) to reflect the use as a cemetery. It was also previously zoned A-1. The subject parcel was updated to Rural Residential 3 (RR3). Both parcels are currently outside the city limits. This zone change was accompanied by a petition to annex the property for the provision of city services.

Village West Subdivision (west of the subject parcel) began building out in 2005. These lots were updated to the N2 zoning when the city updated all zone districts in 2021. The subdivisions to the north - Zimmerman Home Place Subdivision - is a newer subdivision and most of the neighborhood zoning has not yet started development. The parcel to the north is an 18-acre parcel zoned NX1. To the south is the 12.5-acre cemetery zone P2 and to the east are two parcels owned by Town Pump zoned Neighborhood Mixed Use (NMU). The proposed zoning of NX1 for the west ~180 feet and NX3 for the eastern ~487 feet, is compatible with these surrounding zoning districts. Avenue D - an incomplete right-of-way will be completed and connect through to 38th Street West to the west and Zimmerman Trail to the east via the road network in the Zimmerman Home Place Subdivision. Currently, the 133-acre neighborhood to the west has no access to the east. All paths into and out of this neighborhood are to the south and west.

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 the Zimmerman Home Place apartments - just started this past summer. Prior to Zimmerman Home Place, new apartments were developed at 41st St West and Avenue C - Wheatbaker Patio Homes in 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 August 17, 2022, at the Church of the Good Shepherd on 24th ST W. The requirement of annexation stipulates a 1/4-mile notification area for surrounding owners. Over 250 individual property owners were notified of the proposed zone change. The pre-application meeting synopsis is attached to this report. Five surrounding property owners signed the attendance sheet for the meeting. The Planning staff has not received any emails, letters or phone calls concerning the application at the time of this report.

The Zoning Commission conducted a public hearing on October 4, 2022, and received the staff recommendation of approval and testimony from the applicant and agent. No other testimony was received and there were no questions from Commission members. Commission Vice Chair Greg McCall closed the public hearing. Commission member David Goss made a motion to recommend approval and adoption of the proposed findings of the 10 review criteria for Zone Change 1020. The motion was seconded by Commission member Trina white and was approved on a 4 to 0 vote.

The City Council conducted a public hearing on October 24, 2022. The Council received the Zoning Commission recommendation and testimony from the applicant's agent, John Halverson with Sanderson Stewart and from Brad Brown of Steward Land Company, the prospective buyer. Lewis Schoenburger of 1724 Norwood Lane testified in opposition to the proposed zoning. He stated his opposition was based on the higher density that would result in more traffic in the neighborhood and would create a burden on city services.

Council members Boyett, Rupsis, Purinton and Neese all had questions regarding the change of zoning from the N2 to the west in the existing neighborhood to the NX1 and NX3 proposed zoning. The primary concern was the height of adjacent structures in the NX districts compared to the N2 and N3 districts. Staff explained that changing zoning along rear property lines or along alleys is preferred when changing from one use to substantially different use. Staff explained that all N or NX districts provide for the same use - housing for people. The N districts (N1-3) as well as the NX1 districts have building compatibility as they have similar building heights, setbacks and other building requirements. Staff pointed out the NX2/NX3 districts have requirements for additional setbacks when adjacent to N zones as well as different landscape buffering requirements. Staff also clarified the N2 and NX1 district share the same maximum height restriction. Staff acknowledge that additional transition step-backs may be necessary where an NX3 zone shares a property line with an N zone. The NX3 zone allows 4-story building heights, while N zones typically allow only 1-3 stories. The current code requirement for additional setbacks between NX2/NX3 zones and N zones is 20 feet from the rear property line and 15 feet from the side property line. Additional setbacks are not required between NX zone districts or between the NX1 zone and the N zones. CM Rupsis stated he supports the 200-foot width of the NX1 on the west third of the property that abuts the existing neighborhood. CM Joy stated she supported the zone change because recent experience shows that large-lot single-family dwellings consume a lot of family and community resources. She stated housing choices and variety are important. CM Choriki stated it is imperative to bring more housing options to Billings. He stated he understands the need for good transitions between properties but density matters. Mayor Cole stated he wanted to alert the citizens who are living next to open fields or farm ground that these areas are not preserved open space. He stated these lands will be developed so residents expectations should match the development potential.

The City Council approved the zone change on first reading on a 10-1 vote. CM Neese voted in opposition.

The City Council may:

• Approve the zone change on 2nd reading and adopt the findings of the ten review criteria for Zone Change 1020; or,
• Deny the zone change on 2nd reading and adopt different findings of the ten review criteria for Zone Change 1020; 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.
 

• 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 need to do a traffic impact study if the development will create 500 or more new trips per day. It is likely a study will be required. Each single family dwelling generates about 10-13 daily traffic trips while apartments and townhomes generate between 7-10 trips per day. The study and scope will be coordinated with the city Engineering Division. The traffic study will analyze each of the nearby street intersections and determine if mitigation or improvements are needed to accommodate the additional traffic. City Engineering will determine the required improvements. The concurrent annexation and Development Agreement may also include requirements for site development. 
• 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 will be 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?
Similar to criteria 2 and 3, the proposed NX zones, like all zones, requires minimum setbacks to allow for adequate separation between structures and adequate light and air. This parcel is presently vacant therefore any new structure will be required to meet the standards required by Section 27-300-6&7.

6) Will the new zoning effect motorized and non-motorized transportation?
Non-motorized travel -- walking and biking -- is an essential part of completing Avenue D as part of this development. 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 Grand Avenue near the Zimmerman Trail intersections are between 18,000 and 20,000 vehicle trips per day. The proposed street connection with the development will allow at least two pathways for the new residents to enter and leave the area including Avenue D to Zimmerman Trail or Avenue D to 38th St W (collector) and south to Grand Avenue.  A traffic impact analysis will be done prior to any development and mitigation may 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. Specifically this property is immediately south of property already zoned NX1 and is adjacent to N2 property to the west. Compatibility of these residential districts is preserved by the site and structure standards required in 27-307 and 308. Further site development requirements for parking, landscaping, frontage etc will be required with new development.

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 Zimmerman Trail and Shiloh 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. The existing zones and development pattern for the area is suitable for the NX 1 and 3 district.

9) Will the new zoning conserve the value of buildings?
The property is an undeveloped agricultural parcel that is immediately adjacent to city limits and is in close proximity to all city services. Approval of the zone change will provide a housing choice in a residential and commercial area. The zoning designation itself will not influence the value of buildings. 

10) Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will encourage the most appropriate use of this land in Billings. This parcel is one of the last to be proposed for development in this section of developing land west of Zimmerman Trail.