Planning staff is recommending approval and adoption of the proposed findings of the 10 criteria for Zone Change 1019.

On September 27, the Planning Division received a request to delay action on this application. The Zoning Commission granted the delay of the public hearing at its October meeting to its November 1 meeting. The applicant held a second neighborhood meeting on October 19. The Planning Staff received a valid protest petition against the zone change on October 17.

This is a zone change request from Neighborhood Office (NO) to Corridor Mixed Use 1 (CMU1) to allow a wider range of uses and multi-story structures on two lots in the Zimmerman Home Place Subdivision (3rd Filing). The lots are generally located between the intersections of Zimmerman Trail, Avenue E and Colton Boulevard and are just north of the Children's Clinic medical office at 3401 Avenue E.

Prior to the adoption of the new zoning code, the city and county regularly zoned property on arterial street frontages with low density residential or low-intensity commercial zones such as Residential Professional (RP). The new zoning for the city requires different choices for arterial street frontages including mixed use districts or mixed residential districts. This is to ensure that neighborhoods are places in areas away from traffic noise, and do not need to "wall off" the neighborhood from the adjoining street. In the code update in 2021, the corollary zone for RP was Neighborhood Office (NO) and parcels that were vacant at the time of the update, went from RP to NO.  Neither the RP zone or the NO zone are appropriate for such a large area like the subject property on an arterial street. The district description for NO includes this language: "The NO district is intended to accommodate office and office/residential uses on neighborhood corridors and internal neighborhood locations where other commercial uses are inappropriate. This district is meant to be highly walkable and accessible to pedestrians and to fit well with the context of adjacent neighborhood residential buildings, when located on corners or block ends." (BMCC 27-402) The lots to the north and south of the subject property do meet the district descriptions for a NO zone being at street intersections at entrances to the neighborhood, and those lots are not included in the zone change. Also, CMU1 is very different than the old Community Commercial district with improved site and form requirements, a mix of uses but also a more limited set of uses that fit better on arterial streets even in a mixed use neighborhood.

The proposed zoning of CMU1 is intended to allow a commercial mixed-use building or buildings for these two lots. The CMU1 zone allows a wide variety of retail, services as well as offices and upper-story residential apartments. The property owner is developing several hundred apartments on a lot to the west - zoned Mixed Residential 3 (NX3). The zone change would allow this owner to provide walkable access to businesses and services for this new neighborhood. Currently, all retail-type business are located about 3/4-mile to the southeast or southwest. Walkable neighborhoods usually have retail services 1/2-mile or less from the residential area - even if it is just a corner store, a coffee shop or similar business. 

There is a variety of zone districts in the area including the Mixed Residential 3 (NX3) to the west, NO north and south of the subject property, and Suburban Neighborhood Residential (N3) east across Zimmerman Trail, a Principal Arterial street. The homes in the N3 zone do not take frontage from Zimmerman Trail and are behind some landscaping and a sight-obscuring fence that runs parallel to the street. Most of these patio homes and townhomes were built on private streets in the late 1990s and early 2000s. Most are single story, single family homes. 

Zimmerman Trail is an arterial street and was completed from Poly Drive to Broadwater Avenue in 2004/2005. Prior to this time, Zimmerman Trail was known as 34th St West north of Grand Avenue and 32nd St West south of Broadwater. The city acquired the right-of-way and built the connection as an arterial street to complete this part of the city's street network. There are few north/south arterial streets west of 17th St West. Zimmerman Trail carries about 15,000 vehicle trips per day along this corridor between Broadwater Avenue and Poly Drive. Additional traffic is expected when several new apartment projects are completed in the next two years including the Zimmerman Home Place development and the Icon and Steward Land apartments south of Grand in Cardwell Ranch Subdivision. Zimmerman Trail is a 2-3 lane arterial street with a capacity to handle larger volumes of traffic. There are traffic signals at Rimrock Road, Poly Drive, Grand Avenue and Broadwater Avenue. South of Broadwater Avenue, the street name changes to 32nd St West. A mixed use development on these parcels would likely require a traffic study update to ensure nearby intersections can still function as designed. Any traffic management or upgrades would be the responsibility of the project developer per the direction of the City Engineering Division. 

APPLICATION DATA
OWNER: Highlands ZHP Subdivision LLC, Preston Lees
AGENT: Performance Engineering, Scott Aspenlieder, P.E.
LEGAL DESCRIPTION: Lots 2 and 3, Block 1, Zimmerman Home Place Subdivision, 3rd Filing
CURRENT ZONING: NO
EXISTING LAND USE: Vacant
PROPOSED USE: Mixed Use development with ground level commercial uses and apartments in upper stories
SIZE OF PARCEL: 7.513 acres

SURROUNDING ZONING AND LAND USE
NORTH:        
Zoning: NO - Neighborhood Office SOUTH:        
Zoning: NO
Land Use: Children's Clinic and vacant land
EAST:
Zoning: N3 - Suburban Neighborhood Residential
Land Use: Single family homes
WEST:
Zoning: NX3 - Mixed Residential 3 and P1 - Public 1
Land Use: Apartments and parkland

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 property to the northwest went through a Planned Neighborhood Development zone change when it was annexed in early 2022. A PND zone change was not required, but the owner preferred this zoning process to allow for placement of the Public 1 zone parcels within the new apartment development (ZC 1009).

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 zoning of CMU1 for the subject property with Zimmerman Trail frontage. The CMU1 zone district is intended to be placed on arterial street corridors where neighborhood zoning is adjacent or across the street. The uses allowed within the CMU1 zone do not allow uses by right that could cause noise and disruption such as car washes, drive through restaurants, bars or casinos. The West Billings Neighborhood Plan goals and objectives stated the need to locate more intense uses along arterial street corridors 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 meeting at the subject property on August 24, 2022. The meeting was conducted via ZOOM. The synopsis of the meeting questions and answers are attached to this report. There were questions about the need for the zone change, the pedestrian crossing a Colton Blvd and Zimmerman Trail, and increasing traffic.  Planning staff has received input from a neighboring property owner regarding protest provisions. One of the reasons for the requested delay of this application by the applicant is to provide additional information to the neighborhood. On October 17, 2022, the Planning staff received a valid protest petition against the zone change (attached). The applicant conducted a second neighborhood meeting on October 19, 2022, in person. Three property owners attended this meeting. The meeting notes and attendance sheet are also attached to this report. 

The Zoning Commission may:

• Recommend approval of the Zone Change and adopt the proposed findings of the 10 review criteria; or, 
• Recommend denial of the Zone Change and adopt different findings of the 10 review criteria; or, 
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the application.

Approval or denial of the proposed zone change should 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
• 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

Prosperity and Essential Investments

• Infill development and development near existing City infrastructure may be the most cost effective
• A diversity of available jobs can ensure a strong Billings’ economy
• Retaining and supporting existing businesses helps sustain a healthy economy

 
4) Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The applicant will likely need to provide an update to the already completed traffic impact study for the subdivision. The applicant 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 Engineer will determine the required improvements based on the specific information provided in the update or existing traffic study.
Water and Sewer: This property is located in the City Limits and is required to be served by city water and sewer. There are no known negative capacity impacts related to water and sewer that are identified through any adopted studies or staff input. 
Schools and Parks: Schools and parks may be effected by the proposed zone change. The NO zoning allows 1-4 family dwellings and the CMU1 zone allows upper story apartments. Development of apartments may attract families with children. SD #2 had no comment on the proposed zoning. The Planning Division coordinates input from the School District administration. The District is beginning the process of evaluating its various districts for elementary, middle and high schools and may make adjustments to address capacity levels at various schools.
Fire and Police: The subject property is served by city public safety services. Development of the property, regardless of zone will be served by existing police and fire services. The Police and Fire Departments had no concerns with the zone change as requirements for access, water supply and fire codes will apply to the site and any construction on the subject property.

5) Will the new zoning provide adequate light and air?
Similar to criteria 2 and 3, the proposed CMU1 zone, 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 27-400-3.

6) Will the new zoning effect motorized and non-motorized transportation?
Non-motorized travel -- walking and biking -- is an essential part of the city's transportation plan both within the proposed development and connecting to adjacent areas. Pedestrian connections to the new development will be allowed from Zimmerman Trail as well as across Green Valley Drive to the west.  The subdivision has a no vehicle access strip across the frontage of Zimmerman Trail, so all vehicle access will be from internal streets. The property is close to three fixed route MET bus lines (two on Grand and one on Poly Dr). There are no specific 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 to 6,000 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. A traffic impact analysis already completed for the apartment project to the west will need to be updated based on the new zoning and land uses allowed on this 7.5 acre parcel. 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. 

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 with similar uses. Zimmerman Trail acts as a major transportation corridor so the expectation of commercial or mixed use services along the corridor is appropriate. A principle arterial street like Zimmerman Trail also acts as a buffer/separation, making the existing single and two-family development on the east side of Zimmerman Trail a separated and acceptable use across from the CMU1 zone proposed. In fact, the street-facing building orientation requirements of the CMU1 zoning will add to the visibility and activity on the Zimmerman Trail corridor for both walkers, cyclists and motorists, adding a component of safety to the area. As more housing choices move to this area it is important that some services are available in the vicinity. There is no CMU1 directly adjacent to this parcel, however, CMU1 is located just south of Avenue E. Commercial development along the Zimmerman corridor does consider the character and suitability of the area.  

9) Will the new zoning conserve the value of buildings?
There are currently no buildings on the property, therefore the new zoning does not propose a risk of creating a non conformity or other value associated issues. Any new development must be in conformance with the zoning regulations, thus conserving the value of buildings for the parcel. There has been no evidence to support the zone change will negatively affect the surrounding property and existing buildings. The new zoning is not expected to alter the value of any buildings in the area. 

10) Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zone change will encourage the most appropriate use of this land in Billings.