The Zoning Commission recommends approval and adoption of the findings of the 10 review criteria for Zone Change 1021. The Zoning Commission also recommended approval of the requested variance from Section 27-804 BMCC requiring connectivity to existing streets - specifically Obie Lane and Bell Avenue. The City Council adopted the zone change ordinance on first reading on February 13, 2023, with a super majority vote of 6 in favor and 3 opposed. A super majority vote was required due to the filing of a valid protest against the zone change on Friday, February 10, 2023. A second reading is required to pass the zone change. The second reading vote must also be by a super majority vote of the Council. The City Council did not approve the requested variance from Section 27-804 requiring connectivity to existing streets. The variance does not require a second vote since it is not an ordinance action. The exhibit attached to the zone change ordinance reflects this decision on first reading.

This is a zone change request using the Planned Neighborhood Development zone change process for a proposed annexation of a 27.7 acre parcel located south of Bell Avenue and north of Rocky Vista Way and the Bannister Drain, generally located west of Shiloh Road. The proposed Mixed Residential PND will include 14.1 acres of NX3, 2.49 acres of NX2, 2.2 acres of N1 and 1.53 acres of Public 1 (P1). The PND process 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 NX2), an N1 zoned area adjacent to the County residences on Obie Lane and along Bell Avenue to the north. The PND zoning plan includes 5.9% of the area as open space (P1).

The applicant had submitted a similar request in 2021 that was withdrawn in February 2022, before the City Council acted on the Zoning Commission recommendation of approval (Zone Change 1004). A valid protest had been filed and there was a large volume of public comment regarding the proposed access to the property from Bell Avenue and the traffic generation from the site.

This new application is requesting the City Council approve the proposed street layout that has no connections to Bell Avenue (City public street) or Obie Lane (County public road). This would be a variance from the PND regulations at Section 27-804.C that requires connectivity to existing streets from adjoining property. The Zoning Commission recommended approval of the variance from connectivity. The City Council considered the merits of the requested variance. City staff did not support the variance. City staff believes at least one vehicle connection should be made to Bell Avenue and a connection to Obie Lane, a County public road at this time, should be developed. The Zoning Commission stated its support includes a recommendation the City Council consider whether issues of phasing or timing are options, so possible connections may be preserved for the future. The current PND proposal includes two full access points from Rocky Vista Way (south) and includes connections points on the west property line to allow future development of county land to the west. The proposed concept plan for the Master Site Plan (MSP) shows the dwellings on the north will face Bell Avenue, but vehicle access to these dwellings will be from the private internal street system. An alternate plan that shows full access to Bell Avenue and Obie Lane was also submitted. The City Council did not approve the variance from the connectivity requirement.
 

The applicant conducted a pre-application neighborhood meeting on October 25, 2022, at the King of Glory Church located at 4125 Grand Avenue. Twenty-seven persons attended the meeting including the applicants, Rick Leuthold and John Halverson from Sanderson Stewart, agent for the applicant. 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 the number of new dwelling units. The applicants estimated at the time of the pre-application meeting about 550 units might be built. Attendees asked about the traffic impacts and access to surrounding existing streets. The agents stated they would seek a variance from the requirement to connect to existing streets and a full traffic impact study would be based on whether the requested variances are approved or not approved. A preliminary traffic study was done on the prior zone change proposal that included two vehicle connections to Bell Avenue. In response to a question about management of the development, the agents stated this would be under one management company.

The applicant attended the West End Task Force meeting on November 15, 2022, at the Community Connections Church at 5556 Grand Avenue. Meeting notes from this meeting are also included. A third public meeting was held at Riverfront Park on November 22, 2022, at 10:30 am. Notes from this "public event" are also included.

Planning staff did not receive any written comments or phone calls from the surrounding owners prior to preparing the Zoning Commission report and recommendation. City staff and departments had no negative comments on the proposed annexation and zoning plan except for the requested variance from connecting existing streets to this development. City staff did not support the variance. City staff believes at least one vehicle connection should be made to Bell Avenue and a connection to Obie Lane, a County public road at this time, should be developed. The Zoning Commission did not concur with the staff recommendation to deny the requested connectivity variance.

ZONING COMMISSION HEARING JANUARY 3, 2023
The Zoning Commission conducted its public hearing on January 3, 2023, and received the staff report, testimony from the agent and from surrounding property owners including, Steve Zeier of Trinity Real Estate, Terry Kaufman of 110 Big Pine Court, Toby Erickson, of 4142 Banbury Place, who was speaking on behalf of the several owners in Legends West and Twin Pines, Missy Erickson of 4142 Banbury Place, Mike Henthorn of 4160 Bell Avenue, Lisa Moen of 4160 Obie Lane, Nancy Pederson of 26 Twin Pines Lane, and Lincoln Powers of 4185 Obie Lane. 

John Halverson of Sanderson Stewart spoke as agent for the property owner, Mr. Rick Dorn. He presented the history of the project for annexation and zone change. He stated the original request had significantly more NX3 zoning and adjacent development was not addressed in the zoning plan. He stated the current proposal respects the adjacent zoning of N2 to the north and the RR1 zoning to the east by providing compatible zoning of N1 to the north and east. In addition, there is a plan for a small tot-lot in the northeast corner, zoned Public 1, and a large central recreation area for all the residents also zoned Public 1. Mr. Halverson stated the request for the variance from the connectivity requirement is based on potential traffic management scenarios and on the requests from the adjacent owners on Obie Lane and Bell Avenue as well as the residents in the developments north of Bell Avenue. He stated there is a proposed pedestrian connection to Bell Avenue, but the east property line adjoining Obie Lane and Bell Estates subdivision (county) is planned to be fenced off with no connection. He stated the N1 zone on the north and east will allow for compatible dwellings to be developed with similar building heights. Mr. Halverson presented a slide show with a graphic showing the different building heights allowed and the geographic relationship to existing homes to the east and north. He stated the taller buildings in the proposed NX3 zone would be at least 290 feet west of Obie Lane homes and at least 350 feet from homes in Twin Pines. He stated this location is within 1/4 mile of Shiloh Road which is a major corridor in Billings where a variety of housing choices are available including mixed uses at Shiloh Commons with ground-floor retail and apartments above, apartments in Lenhardt Square and to the east of Shiloh Road as well as manufactured home parks to the east. Mr. Halverson stated not everyone who lives in Billings is a homeowner and the latest information shows that at least 35% of the Billings population rents. He stated none of those renters are represented at this meeting. He stated the developer intends to build a variety of housing choices on the property to help create naturally occurring attainable housing. None of the units are intended to be subsidized and will be market rate products.

Mr. Halverson stated the owner provided three opportunities for surrounding owners and the public to learn more about the proposed development prior to submitting the application to the city. The first meeting was by invitation to the surrounding owners in November. The agent also attended the Westend Task Force meeting in November and a public activity in Riverfront Park to ask people about their experiences in Billings, and their opinion on the proposed development plan. Mr. Halverson stated the project was generally well received, but the surrounding owners still had concerns with the access to the property. He stated the application conforms to the city's Growth Policy and Westend Neighborhood Plan. He stated that traffic volume is not dangerous - but traffic speed is dangerous. He stated the illustrated concept plan showing the internal street system is provided with traffic-calming throughout, reducing traffic speed. He stated high traffic volume streets can be designed to make it is safe for cars and pedestrians. He stated the location of the project will give these residents the opportunity to use other transportation options and not have to drive everywhere. He stated the recreational, educational and shopping opportunities are all within a comfortable walking distance to the property. Residential density of property makes these nearby amenities and destinations sustainable. Mr. Halverson pointed out the multi-use trail on Shiloh Road is now part of the Billings Marathon Loop and is within walking distance of the newly open medical college at Rocky Vista University. He stated the clear limiting factor for economic growth in Billings is the availability of housing for workers in existing and new businesses. He stated this location within 1 mile of the primary corridor intersection of King Ave West and Shiloh Road makes compact and efficient land use a good choice. Mr. Halverson stated this new zoning plan has almost three times the minimum required open space area for a PND and this will help improve the sustainability of the neighborhood. He stated the city and state investment in Shiloh Road should be supported by well-designed neighborhoods with amenities and not just big yards. He stated the zoning plan is supported and complements both the zoning to the north and east and the south and west. 

Mr. Luethold, speaking as an agent for the applicant, stated the annexation and zone change proposal are a good fit with the city's growth policy. He stated Josephine Crossing is a good example on how to handle lots of traffic with pedestrian safety throughout. He stated the developer will contribute to any off site and adjacent right of way improvements that are needed. These needed improvements are identified through a complete traffic study. As part of the previous application, a preliminary traffic study was done, but this is incomplete. A complete traffic study will be required once a zoning plan is finalized and the developer begins work on finalizing the development plan. One of the examples of an off site improvement might be upgrades to the Bell Ave street section where it crosses the drain at Shiloh Road. He stated there are deficiencies in the width and geometry at the crossing and there is a wooden fence in the clear vision area that blocks vehicle site distance for pedestrians and bicyclists on the multi-use path. Mr. Leuthold stated improvements will be done on Bell Avenue where it is adjacent to the property and if other improvements are required by the traffic study, those will be done as well. He stated the variance request is based on requests from the adjacent owners, and based on the perception that this development will add an uncompensated burden on these adjacent neighborhoods. He stated the owner is open to leaving utility easements available to Bell Ave and Obie Lane if needed for future utility connections.

In response to a question from Commission member David Goss, Mr. Leuthold stated the reason no access to Obie Lane is provided is the clear concern from these neighbors that people from this new development would wander through the subdivision. Mr. Leuthold stated the connection was eliminated in response to their concerns.

Mr. Steve Zeier of Trinity Real Estate stated he was in favor of the zone change. He stated he has no relationship with the developer or the agent but was here to support this type of zoning for the area. He stated as our city has grown, the development of new housing of any type has lagged behind. He stated the one area where we can make a difference in housing costs is in local regulations and by allowing this mixture of zoning to help build housing choices. He also stated his desire to see the new code implemented consistently and fairly across the board. 

Terry Kaufman of Twin Pines testified in opposition. She stated the number of dwelling units - 582 - was too many for this 27 acre parcel of land. She stated the answer to the lack of housing is not just a quantity issue -- it also is a quality issue. She stated there were 4,000 jobs available in Billings recently. Even if every job was taken, there would still be enough apartments for everyone who wants one. She stated the City Council has approved zoning or development of over 2,000 apartments in the last year. She asked whether the City Council or staff has a plan for when all these apartments go vacant when demand subsides. She stated the amount of parking required would be too much for this property to accommodate.

Toby Erickson of Legends West spoke in opposition to the zone change. He stated the homeowners in the adjacent subdivisions could not hope to compete with the slick presentation by the developer. He stated he was testifying on behalf of many owners in the adjacent Twin Pines and Legends West subdivision and would appreciate more than three minutes to present his arguments. Chairman Larson allowed Mr. Erickson 15 more minutes than the usual three minutes. He stated the first mention of multifamily development on the property was 10 year ago and that application was withdrawn. At the time, there was no possibility of physically connecting the development to the south, so the only connections was to Bell Ave and Obie Lane. Last year, the applicant came in with a development of mostly 4-story apartment buildings, and no transitional zoning across Bell Ave from Bell Estates. He stated the current proposal has a few more things going for it, but the density is still too high. He stated one row of developed lots with similar dwellings to Twin Pines and Legends West is not enough. He stated it should be much more. He stated the existing city infrastructure cannot support an additional 582 dwelling units in this area. He stated everyone in the room opposes the zone change. He stated there is not enough consideration for the neighbors. He stated the development plan may tick many boxes, but the development just does not fit with the adjacent area. He stated the higher the density, the fewer people tend to care about their surroundings or their neighbors. He stated Bell Avenue is an incomplete street, and it would not be right to put any of the new traffic on Bell Avenue. He stated the existing Bell Ave intersection is deficient and only allows a right turn (south bound) on Shiloh Road. Anyone wanting to go north or east will drive through Legends West, or even Twin Pines or Bonaventure to reach Central Avenue. This puts a traffic burden on our streets we should not have to endure. He stated there is already a good mix of development styles and housing choices in the area and does not see the need to add more apartments. He questioned whether West Billings will be nothing but apartments from now on. He stated apartment developments are not as fire-safe as less dense neighborhoods. He stated there will be significant impacts on schools and there will be higher incidence of crime. He stated these are just results of a higher population - not that people living in apartments are more prone to crime. He stated this will be a negative impact on all types of transportation in the area and there is no benefit to connecting this development to Obie Lane - even a pedestrian connection does not make sense for Obie Lane. He stated Obie Lane has no sidewalks so adding pedestrians to this street will just increase the possibility of car/pedestrian conflicts. He stated Twin Pines is a private development and if this development is connected to Bell Ave, those residents will petition to gate the streets where they connect with Central Ave and Bell Ave. He stated this would not be as safe for these residents if they had to gate their own streets. Legends West is all public streets and connects to Bell Ave - also a public street. It would be unfair to place this cost on existing residents. He stated leaving the area on Bell Avenue is not safe right now especially at peak times. Cars on Shiloh Road are going 50+ mph where Bell Ave intersects. A safe turn onto Shiloh is not really possible during certain times of the day. If new traffic is added, then a queue of cars will back up on Bell Avenue, making the situation that much worse. He stated when the developer presented his preliminary traffic, it showed 1,000 more cars per day using Bell Avenue. Mr. Erickson stated Bell Avenue cannot handle that many additional cars. He stated the zoning buffer is not enough and the proposed N1 is not the same as N2 or RR1. He stated appraisal values of adjacent homes will be reduced and this will result in less marketability of homes and townhomes in the adjacent neighborhoods. He stated most residents of the area feel safe in the homes and on the neighborhood streets. He stated this development will make everything feel less safe.

Missy Erickson of Legends West stated the neighbors are not opposed to development of land. She stated the Career Center and the Home Builders Association have sponsored many student-built homes in the neighborhood. She stated this development is not compatible and there should be much less multifamily on the property.

Mike Henthorn of Bell Avenue stated the number of people in this development will equal the population of Columbus, MT. He stated this is too many people in such a small area. He stated no workers in the nearby commercial businesses could afford to live in any of these apartments. He stated the potential rent prices are too high for many workers in Billings.

Lisa Moen of Obie Lane stated she was opposed to the zone change. She stated she has lived in the area for 23 years and never imagined she would be looking at a 4-story apartment in the field west of her house. She stated this is not what she thought would be developed west of her subdivision. She stated she thinks she will have to sell her home - now valued between $400 and $500 thousand dollars. She stated she is just flabbergasted to think that 582 families will be living on the 27 acres to the west of her house.

Nancy Pederson of Twin Pines stated she was opposed to the development and definitely opposed to any connection to Bell Avenue. She stated all the traffic not just from the development, but traffic from the medical school and other apartments south of Monad Rd would use Bell Ave as a convenient cut through.

Lincoln Powers of Obie Lane testified in opposition. He stated he and his wife invested in their property with the expectation of continued value over time. He stated his property shares a property line with the subject property and so the impact to his land and property value is more than anyone else. He stated if he had known about the plans to build apartments on the land next door 20 years ago, they would never have built here or invested so much time and resources into their home. He stated Obie Lane is in a private subdivision and cannot just be connected to a new street to the west. He stated, if this was required by the city, they would explore their legal options to stop it. He stated he was concerned about what type of fencing the developer proposes to use along the property boundary. He stated there is no doubt their land will be de-valued if this development goes ahead.

Mr. Leuthold provided rebuttal comments to the Zoning Commission. He stated all city departments have reviewed the application and the concept for the development of 582 units. He stated none of those departments expressed hesitation on whether services could be provided to the property safely. The new development will pay its fair share for any off-site improvements that may be required, the new development will pay its property taxes and mill levies to support, police, fire, schools, planning and government in general. Fees for other services like street maintenance, and storm water control will also be paid. He stated he is not a traffic engineer but has worked through many projects that needed a traffic engineer to study the impacts of new traffic. He stated this project, when the entitlements are finalized, will begin the scoping and preparation of a full traffic impact study, the scope of that study will depend on the city's requirement for vehicle connections to adjoining property. He stated Shiloh Road will carry the greatest burden of the new traffic since it is the closest arterial street and is designed to handle at least 50,000 vehicle trips per day. (Shiloh carried about 18,000 vehicles per day in 2021). He stated local streets are designed to handle much less traffic at much lower speeds. Local streets provide circulation within neighborhoods and tend to have less than 1,000 vehicles per day. He stated one of the driving factors of apartment development in Billings is not the normal demand for apartments but new demand from new economic development such as Rocky Vista Medical School and other medical business development. He stated the students and professors of Rocky Vista should be able to live as close to the school as possible - reducing the burden of new traffic trips. He stated he has lived in Billings for 38 years and lived in three different types of neighborhoods from Wells Garden Estates to Rimrock Road to a condo development north of Central Avenue. He stated most of these neighborhoods are "drive-to" only since there are no amenities or services within walking distance. The new reality of development is that people want more amenities closer to their homes and more walk-to services. This development fills this market demand. He stated the city will continue to grow and neighborhoods on the edges of the city will need to adjust as the city grows. He stated he remembers when West Park Plaza was the edge of town, and now it is considered to be a "central" part of the city. He stated the city, through its policies, has guided developers to be more efficient, to use land more deliberately and carefully. He stated this plan meets these policy goals.

The Zoning Commission closed the public hearing. Commission member Trina White made a motion to recommend approval of the zone change and denial of the requested variance from Section 27-804 requiring connectivity to existing streets. The Chairman, Mike Larson, asked if the motion could be amended to exclude the recommendation on the requested variance so that issue could have a separate vote. The motion was amended to exclude a recommendation on the variance and seconded by Commission member David Goss. Commission member Trina White stated that consideration for traffic and vehicles is not the paramount issue. She stated developers work to diminish the impact new traffic has on surrounding neighborhoods, but the neighborhoods should be connected. She stated the cost of housing is rising because of the cost of local and state regulation of building. She stated the new national estimate of the cost to developers to build a single dwelling unit is $95,000 dollars - and all of that cost is up front before a single shovel goes in the ground. She stated the city is growing as demand is going up for new housing of all types. She stated this has happened since she started as a real estate broker. She stated the expectation that nothing will be built next door on the farm field is not realistic. Commission member David Goss stated he was the first assistant City Administrator back when the city changed its charter. He stated the major issues back then are still the same issues of today - annexation laws, county subdivisions on the edge of the city and how those rules and regulations negatively affected the growth of the city. He stated the city did grow - but it grew out but not up. He stated the city needs to increase density to be more efficient and that includes taller buildings. He stated he does not believe that Bell Avenue has the capacity - even with improvements - to handle the traffic from this development. He stated his support for the requested variance to not connect this development with Bell Avenue. He stated he wished there was an easy answer for this issue of traffic. He stated he supported to motion to recommend approval of the zone change.

Chairman Mike Larson stated he would like to make a substitute motion. Mr. Larson made a motion to recommend approval of both the zone change and the requested variance. He stated it was clear the members wanted to discuss both the zone change and the variance together, and he agrees with Commission member Goss. The motion was seconded by Commission member Goss. Mr. Goss stated he would like to encourage the Council to consider preserving a right-of-way if a future connection is needed and can be done with without damaging the existing neighborhoods. Mr. Larson stated he is not convinced that the new traffic would not have a detrimental impact on Bell Avenue. He stated the current condition of the street shows it should not be used by new traffic from this development. He stated the city can only require so much from one developer,

The motion to recommend approval of the zone change and approval of the requested variance was approved on a 2-1 vote, with Commission member White voting against the motion. Ms. White stated she supported the zoning but not the requested variance.

CITY COUNCIL FIRST READING PUBLIC HEARING FEBRUARY 13, 2023
The City Council held a joint public hearing for the annexation and zone change request on February 13, 2023, and received the Zoning Commission recommendation presented by planning staff, and testimony from the applicant's agent, John Halverson of Sanderson Stewart. The Planning Division did receive a valid protest petition against the zone change on February 10, 2023. The petition is scanned and attached to this Council report. Below is a summary of the public hearing, but it is not intended to act as the official record or minutes for the meeting. 

John Halverson from Sanderson Stewart presented the application to the Council. He stated the owners desire to build to meet the city's growth policy and development goals and to meet the market demand for more housing choices in Billings. He stated the proposal checks all the boxes and all the existing policies adopted by the City for new development. He stated the development is within 1/4-mile of Shiloh Road, the largest development investment the city and state have made in the past 15 years. He stated the improvements to Shiloh Rd from a 2-lane county road to the 4-lane limited access road has inspired at least a billion dollars in property value and private investment. The development is within walking distance of the largest hub of this investment at Shiloh Road and King Ave West where Shiloh Crossing, Montana Sapphire, Harvest Subdivision and the St Vincent's Healthcare campus are building out at a rapid pace. The recent addition of Rocky Vista University, a medical college, has increased demand for the type of housing the owner wants to build. The applicant took the neighborhood concerns seriously and worked hard over the last year to re-invent the development to accommodate those concerns including a reduction in the NX3 zone from 73% to 53%, three times more open space than is required and placed in a central location for amenities, placement of the N1 zone along both the north and east boundary lines to better match existing development and the variance proposal to allow no connection to Bell Ave or Obie Lane. 

The Council received testimony from 28 individuals, seven in support of the zone change, 19 opposed to the zone change and two opposed to the requested variance but with no opinion on the zone change. 

Steve Simonsen, Billings Area Realtors, Jeff Kanning, Collaborative Design Architects, Bailey Desper of 540 Sudan Place, Melissa Smith of 1335 Naples St., Eric Schmidt of 2915 2nd Ave S, #205, Virginia Duke of 239 Avenue F, Katie Harrison of 2901 6th Ave S, and Jenna Martin of 1822 Lost Creek Road all spoke in favor of the zone change. Speakers in favor of the zone change noted lack of access to all types of housing choices in Billings, the economic impact of building more housing choices both for people who need housing and people who are trying to attract employees, and the favorable location close to shopping, services and transportation choices. Speakers also noted the lack of affordable housing in Billings is related to the balance of supply and demand. The demand for rental housing is high, so any addition to the supply side would ultimately ease the market and lower rental prices elsewhere. Speakers in favor noted the applicant's effort to re-design the proposal based on neighborhood input and the accommodation provided for their concerns.

Terri Kaufman of 110 Big Pine Ct, Toby and Missy Erickson of 4142 Banbury Place, Mike Henthorn of 4160 Bell Ave, Wesley and Amber Dunn of 832 Dorothy Lane, Jacquelyn Garcia of 836 Dorothy Lane, Lisa Moen of 4160 Obie Lane, Roger and Linda Fuhrman of 191 Legends Way, Judi Powers of 4185 Obie Lane, Ed Hofmann of 4246 Central Ave, Billie Rice of 29 Twin Pines Loop, Mike Van Hoover of 4115 Obie Lane, Dick Reich of 4154 Banbury Place, Terry Havener of 11 Twin Pines Loop, and Phil Johnson of 82 Legends Way spoke in opposition to the zone change. Speakers opposed to the zone change noted the density of the proposed housing on the site, the traffic impact to the adjacent and underbuilt roads of Bell Avenue and Obie Lane, and the apparent abandonment of access to homeownership opportunities in this development. Those opposed were concerned the new residents would not appreciate or protect the quiet nature of the existing neighborhoods to the north. In general, those who spoke against the zone change were in favor of granting the variance so the developer would not connect to Bell Ave or Obie Lane. Those opposed were concerned with the preliminary assessment that traffic would increase by at least 1,000 more cars a day on Bell Avenue. Some speakers were concerned the owners would not impose background checks on future renters and this would create more crime in the area. Several speakers were concerned with the existing number of high density multifamily developments in the area including just south of Rocky Vista Way, and the effect of even more units that may not be filled by residents. Several concerns were expressed about the lack of services in the area and that contrary to testimony from the applicant, no one walks to any service business in the area. Several speakers were concerned about loading more traffic onto Shiloh Road that is a high speed, high volume thoroughfare already. Speakers also noted how stretched city services are (police and fire), and the lack of space in schools to accommodate more students from development.

Margy Bonner and Joan Schey of the Bicycle and Pedestrian Advisory Committee (BPAC) presented testimony in opposition to the proposed variance to connectivity to Bell Avenue and Obie Lane. They stated BPAC voted to oppose the variance because connections are important for a good quality of life, and the board advises the City Council on issues for bicyclists and pedestrians. Not connecting would prevent children from safely and easily visiting neighbors who might share a backyard. They stated the lack of connections would hinder residents from accessing the main confluence of MET bus routes at Central Ave and Shiloh Road. Ms. Schey noted the Council and developer should explore traffic calming efforts on Bell Avenue.

The Council asked staff for clarification on preliminary traffic generation, direction of traffic flow, the requirement for connectivity to Bell Ave and Obie Lane, and what parts of the adjacent property are in the county. Staff clarified these issues for the Council. Debi Meling provided information on preliminary traffic on Bell Ave and Legends Way. About 800 new trips may occur on Bell Ave and about 100 to 200 new trips on Legends Way. Staff clarified that all property in Bell Estates is outside the city limits and could annex to the city at some time in the future.

The Council asked the applicant's agent the following questions for clarification on why commercial uses are not included in the planned neighborhood, whether all the units are for rent, Crime Prevention Through Environmental Design (CPTED), whether pedestrian counts have been done in the surrounding areas, and the origin of the variance for connectivity. The applicant clarified the location of adjacent commercial uses in walking distance, so any commercial use would be competing with these existing businesses. The applicant clarified that CPTED goals are integral to the design of the park space and the street plan within the development. Mr. Leuthold of Sanderson Stewart clarified that commercial development depends on the number of rooftops and whether the commercial business can make a profit. The old style of retail such as corner grocery stores could make a profit with just a few blocks of rooftops. Modern retail needs more rooftops. Smaller retail is built into some neighborhood developments, but it is not common. Mr. Leuthold stated there have not been any pedestrian counts in the surrounding neighborhoods. Mr. Leuthold stated Billings needs to encourage more walk-ability in the neighborhood. Mr. Halverson stated the variance to connectivity was to accommodate the neighborhood concerns.

The Mayor closed the public hearing. Council member Joy made a motion to approve the zone change based on the findings of the 10 review criteria and as recommended by the Zoning Commission. CM Gulick seconded the motion.  Monica Plecker, Planning Division Manager, clarified that any Council action of the proposed variance to the connectivity requirement is accommodated in the existing annexation agreement language.  Council member Gulick stated the zone change plan was much improved from last year with a good street layout and a good model for how to lay out a mixed residential neighborhood. Council member Gulick stated he was not in favor of the variance but that will be a separate discussion and vote. He stated he believed the adjoining streets will be improved to a safe standard and approving development is how that gets done.  Council member Owen stated she was concerned with a march away from homeownership. She stated there are too many incentives to do multifamily and not homes for people to buy. She stated she was concerned about the lack of services in these new developments. She stated at the same time she works with the most vulnerable children every day who are prevented from re-uniting with their families because safe decent housing is not available. She stated there are hundreds of Billings residents surviving on motel vouchers. She stated she would vote for the zone change because more supply of housing will help ease the demand for rental housing. Council member Purinton stated she echoes Council member Owen's comments on abandoning the dream of homeownership in Billings. She stated she was concerned that renters will become the normal. She was also concerned that these market rate apartments will not supply housing for medical students and mostly will not help the renter in search of an affordable apartment. She stated there are many examples in West Billings of poorly constructed apartment buildings and poorly managed properties. She stated she would vote for the zone change but with reluctance. Council member Joy stated that private investment builds housing - not the city. She stated the city has struggled with making sure residents have shelter. She stated this development helps by increasing the supply of housing that is in demand right now. She stated as supply increases, affordability increases. CM Joy stated she was also concerned with homeownership as this is how families build wealth through generations. She stated if we only allow single family owner occupied dwellings then we will fail at making sure Billings has enough shelter for everyone. She stated the history of shelter in the US and in Billings is not the single family home occupied by just the owner, it is a multi-generational home.  Council member Shaw stated she would also love to see more homeownership in Billings neighborhoods but that the Council needs to support developers who want to fill the market demand, She stated she will continue to support more opportunities for homeownership. Council member Rupsis stated this development may be subsidized from a tax revenue point of view. He stated he ran the property tax revenue on a per-unit basis for the apartment development in Lenhardt Square and compared it to the tax revenue per dwelling unit in Legends West and Twin Pines. He stated the per-unit tax revenue for apartments in Lenhardt Square is about $1,100 while the per-unit tax revenue from dwellings in Legends West and Twin Pines is about $3,200. He stated the reason all the new building and development of high density residential is on the west end is because the risk is lower. He stated the City should solve the risk problem and get this type of development downtown where it belongs. He stated the Council should use the power of policy to make a difference. He stated there are many of the 10 review criteria that are not met for this zone change. He stated this type of zoning does not belong here, and he would vote against the zone change. Council member Neese stated it was a difficult decision. He stated he appreciated the re-working the applicant did over the past year and the lay-out has changed for the good. He stated the situation has also changed over the last year with more experience with the new code. He stated he was concerned there was no commercial space or services for the new residents within the development.  He stated this is not the best area for this type of development. He stated it was a false argument that this was a renters versus owners decision. He stated the market will support this proposed development. He also stated there was no set policy to affirm where high density development should go, but it should have services for these residents. He stated he would like to support the zone change, but without those service she could not. Council member Purinton stated the Council might pursue a policy, but it should not demand commercial development for a residential area. She stated the market would take care of it if commercial space was profitable. Mayor Cole stated he has noted how the development plan has evolved from last year. He stated he agreed with the Council that homeownership was important to the city, but the demand for rentals is too high right to support condominiums or townhome ownership in this development. He stated the risks of unit ownership are too high right now to make that viable for this development. The motion was approved on a 6 to 3 vote in favor of the zone change. Six votes were required for a super majority. Council members Neese, Boyett and Rupsis voted against the motion to approve Zone Change 1021. 

The Council then took up the request for a variance from Section 27-804, requiring connectivity to existing streets. A motion was made by Council member Rupsis and seconded by Council member Boyett to deny the requested variance with the condition that roads are built to the property lines to connect Bell Avenue and Obie Lane but emergency access only gates are placed at these connection points. Council member Rupsis stated this would allow time for those adjacent roads to be completed to a good standard and the gates could possibly be removed in the future. Council members Boyett, Purinton and Rupsis spoke in favor of the motion. These Council members stated the need protect the adjacent neighbors from traffic impacts on an under-built street like Bell Avenue and a county road like Obie Lane. Council members Gulick, Joy and Neese spoke against the motion's condition of approval.  Council member Gulick made a substitute motion to deny the proposed variance with no conditions. Council member Shaw seconded the motion. Council member Boyett stated the Zoning Commission agreed with the developer's proposed variance. Council member Neese stated his support for the substitute motion. Council member Purinton stated she was opposed to the motion. Council member Rupsis stated he was in support of connectivity - just not right away. The motion to deny the requested variance was approved on a 6 to 3 vote. Council members Rupsis, Boyett and Purinton voted against the motion.

The City Council may:

• Approve the zone change and adopt the findings of the ten review criteria for Zone Change 1021 as recommended by the Zoning Commission and as approved by City Council on first reading; or,
• Deny the request and adopt different findings of the ten review criteria for Zone Change 1021; 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 the Zoning Commission's recommended findings of the ten review criteria:

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 Residential Planned Neighborhood Development for the 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 applicant has requested a variance from the requirement to connect the new streets to existing adjacent streets. This requirement is found in Section 27-804.C of the PND regulations: The 2021 application for this new neighborhood included two connections to Bell Avenue, one connection to the south to Rocky Vista Way (formerly Monad Rd), a pedestrian connection to Obie Lane, and a new north/south road along the western property line. The applicant has re-designed the proposed development to eliminate vehicle access to Bell Avenue and Obie Lane, have one pedestrian access to Bell Avenue, two vehicle access points to Rocky Vista Way, and two potential access points to the west. While connections to the west and south are maintained, no vehicle connections are proposed to the east or the north. City staff iopposed the  requested variance as it limits the city's ability to plan for growth of well-connected neighborhoods, decreasing public safety, hampering future extension of city utilities and private utilities and decreasing resiliency in new neighborhoods. The City Zoning Commission is recommending approval of the variance based its discussion and on testimony received at the public hearing.

The proposed zone change is 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 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

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 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 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 parkland will provide a central park area for the new residents and two smaller parks on the northeast and southeast corners of the property. There is a linear area along the eastern property line to handle stormwater infiltration and provide open space.

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 is designed to secure the development from fire and other dangers. City staff did not support the variance from the connectivity requirement especially no vehicle access to the north. Staff believes this connection will help secure the development from fire and other dangers. A right-of-way connection to the east (Obie Lane) will also help provide security from fire if a future annexation requires installation of water lines. The City Zoning Commission did not concur with this finding. The Zoning Commission believes fire safety and access as proposed to Rocky Vista Way will provide security 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 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. The applicant has proposed a variance to allow no vehicle connections to the north or east to established streets. These two streets are local streets and are not shown on any official transportation planning map for future extensions. The future transportation map only includes collector streets and arterial streets. A mid-section collector street (44th St West) is intended to come south from Central Avenue. This mid-section street is further west from this development. Bell Avenue could extend further west to meet this collector street in the future. The City Zoning Commission finds that disconnecting this neighborhood from existing neighborhoods to the north and east will not hamper the future ability of the city to make connections to the north and east as the city grows.
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 to the north will be ensured through the development, and the property is close to a fixed route MET bus line. The applicant is proposing no pedestrian connection to the existing neighborhood to the east. City staff did not support the plan to disconnect the County neighborhood from this new city neighborhood. Staff believes this is a disruption to normal foot, vehicle and public safety traffic between neighborhoods. For example, a person in the new neighborhood may have to walk 3/4 of a mile to visit a neighbor who lives behind their back fence on Obie Lane. This is a poor neighborhood design, and city staff does not support this variance from the connectivity requirement. The City Zoning Commission did not concur with the staff recommendation and is supporting the requested variance from the connectivity requirements. 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 less than 1,000 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 Neighborhood with N1, NX2, NX3 and Public 1 zoning will encourage the most appropriate use of this land in Billings.