Planning staff recommends the City Council approve ZC 1038 on second reading. This would be consistent with the Council's first reading action.

This is a zone change request for a property currently zoned Mixed Residential 1 (NX1) in the Zimmerman Home Place Subdivision located northwest of the intersection of Avenues D and E. The applicant is proposing to re-zone a portion of the property from NX1 to NX2 and NX3 to accommodate a development plan that includes multifamily buildings with more than 4 units per structure. The proposed zoning of NX2 and NX3 will be more than 150 feet east of the western property line. The applicant has submitted an exhibit that shows the exact proposed zone boundaries for each new zone district. The existing NX1 zone applies to the entire 17.6 acre parcel. The proposed NX2 area will be 4.92 acres and the NX3 zoned area will be 6.17 acres. This leaves approximately 6.5 acres in the NX1 zone district. The NX1 zone requires a maximum height of 2.5 stories or 27 feet, the NX2 zone allows 1 to 3-story buildings and the NX3 zone requires a minimum height of 2 stories and may have up to 4 stories depending on building type. Side-by-side unit structures have a maximum height in the NX3 zone of 3 stories. The property is legally described as Lot 1, Block 1 of Zimmerman Home Place Subdivision.

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. In 2022, the northern lots of the Zimmerman Home Place subdivision were purchased by a local development company and an annexation and zone change for the subject property and for Lot 1, Block 2 to the east was submitted and approved. The previous zoning of Lot 1 Block 1 was N3 and NX1. The zone change deleted the N3 zoning, expanded the area for NX1 zoning and place the north 106 feet in a Public 1 zoning to preserve the area around the Big Ditch that traverses the property at Colton Boulevard. This project was approved and new apartment buildings are under construction to the east of the subject property. This parcel is owned by the same development company. 

In 2021, all zoning districts and regulations were updated. The Zimmerman Home Place Subdivision had various zone districts originally approved by the County Commissioners prior to any annexation. This lot was originally zoned R96, R50 and R70 under the retired zoning. All fo those zone districts were based on lot area per dwelling unit and only allowed 1 or 2-family dwellings. The updated zoning map in 2021, placed about 2/3's of the property in the NX1 zone district and the north 1/3 in the N3 zone district. This was amended in 2022 as noted above to allow the entire parcel to be zoned NX1 except for the area around the Big Ditch irrigation canal.
   
Village West Subdivision (west of the subject parcel) began building out in 2005. These lots were updated mostly to the N2 zoning when the city updated all zone districts in 2021. Some of the northern tier of lots in Village West are currently zoned N3. North across Colton Boulevard all the lots are zoned N3. To the east is NX3 and Public 1 zoning and south is NX1, NX3 and Neighborhood Mixed Use (NMU) zone districts. 

Housing demand reached a high level in 2021 and the trend continues into 2023. 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 multifamily dwellings (studios and 1-bedroom units). Developers have made robust investments in multifamily 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 multifamily 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 multifamily 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.

The Planning staff recommended approval of the zone change and the Zoning Commission concurred with this recommendation. 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 City Council approved the zone change on first reading on October 23, 2023. A second reading is required.
 

The applicant conducted a pre-application neighborhood meeting on August 24, 2023, at Arrowhead Elementary School on 38th St W. 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, or letters concerning the application at the time of this staff report. Planning staff received one phone call from a neighbor at 3718 Avenue F regarding the proposed zoning boundary change. Planning staff provided clarification on the proposed zone change. Four public comments were emailed to the Planning staff after preparation of the report to the Zoning Commission. These were provided to the Zoning Commission prior to the hearing for their consideration. These public comments are attached to this report.

Zoning Commission Public Hearing October 3, 2023
The Zoning Commission conducted a public hearing on October 3, 2023, and received the staff recommendation of approval and testimony from the applicant, Preston Lees and the agent, Scott Aspenlieder. No other testimony was received at the hearing. Four letters of comment were received before the hearing and are acknowledged as part of the record. These written letters are attached to this staff report. Commission member Greg McCall stated he has a conflict of interest on this application, so he would not participate in the public hearing or vote. He stated he has worked with Mr. Lees on some preliminary designs on some parcels in the subdivision.

Mr. Aspenlieder stated the applicant agrees with the findings proposed by staff that support the approval of the zone change. He stated the applicant worked hard with his design team to be considerate and careful with the proposed zone change. The applicant left the western edge of the property in its current zoning of NX1 for this purpose. He stated the applicant has done 3 separate Traffic Impact Studies and updates over the past 5 years for this subdivision and development. All the findings and the proposed mitigation has been accepted by the city's engineer, and the developer contributions of close to $200,000 to those mitigations has been paid to the city. Mitigations and management for traffic will include a new signal at Avenue E and Zimmerman Trail, the installation of a right turn lane for the south bound traffic on Zimmerman Trail at Grand Avenue and several other nearby intersections will have improvement paid in part by this developer. The intersections include Shiloh and Grand, and Zimmerman and Broadwater. He stated the traffic study includes over 160 pages of data collected and analyzed by traffic engineers. He stated based on best engineering practices, most of the traffic will head east and south from the subject property with about 50% of the traffic heading south on Green Valley Drive to the round-about on Grand Avenue. The other directions for traffic will be on Avenue E to Zimmerman Trail or Colton Blvd to Zimmerman Trail. Traffic congestion will be eased through the improvement paid for in part by this developer.

He stated the developer will complete the multi-use trail started on the property to the east, so the residents on this part of the development will have good walking and biking access to the public trails and parks nearby. He stated at the pre-application meeting some residents to the west were concerned with cut-through traffic using the newly open Avenue D. He stated the traffic study does not support the idea that a lot of traffic will use Avenue D. The route to adjacent arterials or collectors using Avenue D is complex and would not be an obvious choice to travel outside the neighborhood. He stated the traffic study concludes most of the impacts will be internal to this subdivision and the developer has paid the proportionate share to improve the adjacent and nearby intersections. Commission member David Goss asked why the proposed zoning boundaries for this lot do not match exactly with the lots to the south or east. Mr. Aspenlieder stated the zoning boundary line follow the latest plan for laying out an internal street system on the lot. He stated the NX1 left in place on the western boundary is the dimension it is to allow a private street to run parallel with homes on both sides of that street. He stated the developer and applicant chose to keep the NX3 zone as compact as possible so those buildings would more closely match with the existing NX3 to the west and closer to the undeveloped NMU property to the southeast.

Preston Lees, the applicant, testified in favor of the proposed zoning. He stated when a large development is on the drawing board, there are a lot of unknowns. He stated his company is passionate about building great places for all types families and residents of Billings. He stated the preliminary layouts for this parcel showed us the need to update the zoning to match their best ideas. The zone boundaries indicate where the future streets will be located. He stated they will be providing a lot of on-site open space and amenities on this property. He stated the current apartment development to the east could have been laid out to be twice as dense as it is, but he wanted to make sure there will be plenty of outdoor spaces for the new residents to enjoy. He stated the city does need to build more densely to ensure new places are sustainable. He stated his approach is always to exceed the minimum requirements for his developments. He stated density done right will be beneficial to the city. He stated he spends a lot of time with his design team up front, so they can get the details right. He asked the Commission to support the zone change.
 
The Zoning Commission Chair, Michael Larson, closed the public hearing. Commission member Dan Brooks made a motion to recommend approval and adoption of the findings of the 10 review criteria for Zone Change 1038. The motion was seconded by Commission member David Goss and the motion was approved on a 4-0-1 vote, with Commission Member McCall recusing himself.

City Council Public Hearing 1st reading October 23, 2023
The City Council held a public hearing on the zone change first reading on October 23, 2023, and received the Zoning Commission recommendation of approval. The City Council also received testimony from the applicant's agent, Scott Aspenlieder.

Mayor Cole closed the public hearing. Council member Pam Purinton made a motion to approve the zone change on first reading and adopt the findings of the 10 review criteria as recommended by the Zoning Commission. The motion was seconded by Council Member Tom Rupsis and was approved on a unanimous vote.

The City Council may:

• Approve and adopt on second reading the findings of the ten review criteria for Zone Change 1038; or,
• Deny and adopt on second reading different findings of the ten review criteria for Zone Change 1038; or,
• Delay action on second reading of the zone change request for up to 30 days at the request of the applicant or on its own motion.

The applicant has not requested a delay.

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

• 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

• Transportation: The applicant will need to do ensure the existing traffic impact study completed for the subdivision adequately addresses the new zoning and the specific development for the property. The Engineering Division will ensure this is done prior to any approval of a development plan. Each single family dwelling generates about 10-13 daily traffic trips while apartments and townhomes generate between 7–10 trips per day.
• 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. School District 2 did not provide any comments. Arrowhead Elementary School had 426 students in the 2022/2023 school year with a student teacher ratio of 17 students per teacher. The student capacity of Arrowhead school is 475 students. Ben Steele has a capacity of 750 with 795 students enrolled last year with a teacher student ratio of 17.1 students per teacher. West High School has a capacity of 1,731 students with an enrollment last year of 2,180 students with a teacher student ratio of 15.91. The closest public park to the subject property is Poly Vista Park, a 15+ acre developed park, is less than 1/4-mile to the northwest. This is the location of the new Landon's Miracle Field, a play space for all children of all abilities. Arrowhead Elementary School is directly north of this public park and also has playing fields open to the public. There is a multi-use path that allows walking and biking to the east and west as well. Country Manor Park, a 5-acre neighborhood park, is about 1/2 mile to the west just north of the Country Manor Apartments. Planning staff did not receive any comments from Parks, Recreation and Public Lands staff concerning this zone change. Any development in the NX zone districts greater than 3 acres requires provision of on-site open space for the new residents use. The types and locations of such open spaces will be determined at the time of a final development plan review with staff.
• 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 two fixed route MET bus lines (two on Grand). 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 three pathways for the new residents to enter and leave the area including Avenue D to Zimmerman Trail, Avenue D to 38th St W (collector), and Avenue E to Colton Boulevard to Zimmerman Trail. City Engineering will determine if any update to the existing traffic study is required.

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 north of property already zoned NX1 and NX3. The NX1 zoning will remain in place for the western 151 feet of the parcel and this is adjacent to N2 and N3 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 improvements 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 NX2 and NX3 districts as shown on the zoning exhibit.

9) Will the new zoning conserve the value of buildings?
The property is an undeveloped agricultural parcel that is in 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. In general, new development increases the value of adjacent property. 

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. The proposed NX2 and NX3 will be facing similar zoning to the east and south. The NX1 zoning, that allows single family, two-family and up to 4-family dwellings is compatible with the N3 and N2 zoning to the west.