This is a request for a special review to allow the location of an all beverage license with gaming in a Highway Commercial (HC) zone on Lot 1, Cipech Subdivision and Tracts C, D & U of C/S 59 a 17,808 square foot parcel of land generally located at 1214 Main Street. The former Diamond Jubilee Casino is currently vacant and no previous special review was approved for this location by the City Council. The location will not require a waiver of the 600 foot separation from this location as there are no churches, schools or public parks with playground equipment within 600 feet of this property. The Zoning Commission conducted a public hearing on March 1, 2011, and is forwarding a recommendation of conditional approval on a 5-0 vote.

The Planning Division reviewed this application and recommended conditional approval. Before a recommendation of approval or conditional approval can be made, each special review request must demonstrate conformance with three primary criteria: 1) the application complies with all parts of the Unified Zoning Regulations, 2) the application is consistent with the objectives and purposes of the Unified Zoning Regulations and the 2008 Growth Policy, and 3) is compatible with surrounding land uses and is otherwise screened and separated from adjacent land to minimize adverse impacts. This application conforms to the first criteria, for front and rear setbacks. The side adjacent to Riley Street does not meet the required minimum of 10 feet. However, the applicant does not intend to increase the size of the building so the existing setback can remain. The building does not exceed maximum lot coverage or building height. The location is in one of the zoning districts that allows an all-beverage license by special review approval. The application is conforming to the purposes of the regulations and the 2008 Growth Policy. The application also conforms to the second and third criteria. The submitted drawing shows the existing conditions and no substantial changes to the exterior except for maintenance are contemplated. This is an opportunity to re-use an existing vacant casino building. The Zoning Commission concurred with staff recommended conditions for this special review based on the approval criteria for special review uses. The Zoning Commission has recommended conditions below to address lighting, safety, noise, and landscaping. The location of an all-beverage license will allow a vacant casino to be re-used. The Zoning Commission recommended removing a proposed condition to require a 4-foot fence for the outdoor patio area at the request of the new owner, Bernard Harrington. The owner testified that no alcohol or food service will be offered outside the building. The owner acknowledged that any outdoor service would require an additional special review approval.
The Zoning Commission is forwarding a recommendation of conditional approval on a 5-0 vote.
The Zoning Commission recommends the following conditions:
1. The special review approval shall be limited to Lot 1, Cipech Subdivision and Tracts C, D & U of C/S 59 generally located at 1214 Main Street.
2. Any expansion of the proposed patio, building, building occupancy or parking lot greater than 10 percent of what is shown on the submitted site plan will require an additional special review approval.
3. All new site lighting on the building, in parking areas or outdoor patio shall have full cut-off shields so lighting is projected to the ground and not on to adjacent properties. This condition does not apply to existing or restored neon lighting on the building.
4. The owner is allowed to have background music and un-amplified live outdoor entertainment on the outdoor patio lounge. Background music is amplified music not audible beyond the outdoor patio lounge.
6. There shall be no outdoor public address system or outside announcement system of any kind.
7. These conditions of special review approval shall run with the land described in this authorization and shall apply to all current and subsequent owners, operators, managers, lease holders, heirs and assigns.
8. The proposed development shall comply with all other limitations of Section 27-613 of the Unified Zoning Regulations concerning special review uses, and all other City of Billings regulations and ordinances that apply.

**NOTE** Approval of this Special Review does not constitute approval of a building permit, sign permit or fence permit. Compliance with all applicable local codes will be reviewed at the building permit level. This application is for a Special Review as noted above and no other request is being considered with this application. The Planning Division points out that the use and development of the property must be in accordance with the submitted site plan.

The re-use of the closed casino will support and preserve the commercial tax base in the area. Vacant and abandoned property tends to suppress surrounding property value and can increase calls for service to the area.

This is a request for a special review to allow the location of an all-beverage license with gaming at the former Diamond Jubilee Casino at 1214 Main Street. The existing casino, patio, and parking lot are part of the bankruptcy proceedings of the previous owner. A potential buyer wishes to re-open the business under a new name. This location never received a special review approval from the City Council since it pre-dates the zoning regulations requiring special review approval. The location is not within 600 feet of any church, school, or public park with a playground. The potential owner intends to renovate the property and re-open the business. There is a manufactured home park to the west. Access to the site is Riley Drive – a narrow street to the north and from a drive approach off Main Street. Riley Drive also provides the only access to the manufactured home park to the west. Main Street is divided at this location so direct access for traffic traveling north requires a U-turn at the traffic control signal at Logan Lane just north of Riley Drive. All property surrounding the site is zoned HC and with the exception of the manufactured home park, all surrounding lots are developed for commercial businesses including a Wendy’s restaurant, a gas station, a motel, auto parts store, a bakery outlet and a U-Haul store.

The Zoning Commission conducted a public hearing on March 1, 2011 and received testimony from the new owner, Bernard Harrington (OFLS, LLC) and the agent, Bob Pulley of Elite Realty. Mr. Harrington requested the proposed condition #4 be omitted since he does not intend to provide any alcohol or food service in the outdoor patio to the west of the building. Mr. Harrington stated his intent to do some remodeling on the interior and the outdoor area might be improved to provide a shelter for smokers but no alcohol would be allowed in this outdoor area. Mr. Harrington stated the casino was closed in September 2010 and was part of the former owner's bankruptcy proceedings. Mr. Harrington stated the new casino will not be a night club and will have a limited menu for food service. It will function primarily as a casino and have a small package liquor service. There was no other testimony.

Please see the Alternatives Analyzed section of this report.