The Zoning Commission recommends conditional approval of the proposed parking lot spaces on the south and east sides of the property at 1406 Avenue B, and adoption of the findings of the review criteria.

The subject property is also part of a concurrent zone change application to update the zoning from Mid-Century Neighborhood (N2) to Neighborhood Office (NO). Prior to the adoption of the new zoning code, the establishment of surface parking in residential zone districts was possible through special review approval. The 2021 code update removed this provision in residential zones but included it for certain commercial zone district such as Neighborhood Office. Planning staff recommended approval of the zone change and conditional approval for this special review. The Zoning Commission concurred with this recommendation.

The adjacent parcel at 1404 Avenue B is already developed for a surface parking lot for Stockman Bank directly south of the alley at 1405 Grand Avenue. This was done through a special review (SR 840) in 2011. The applicant will remove a portion of the sight obscuring fence on the common boundary line to build 9 new parking stalls on the south and east areas of the property at 1406 Avenue B. The existing home at 1406 Avenue B will remain in place and occupied by a tenant. A new sight-obscuring fence and landscaping will be installed to shield this residence and the residence at 1410 Avenue B. The site development details are shown on the attached site plan for the property.

Special review uses are no longer considered "allowed" uses in a zoning district. The burden for proof of compatibility is on the applicant for each special review use that might be allowed. This compatibility is developed through the specific findings of the review criteria, including conformance with the growth policy, whether the use will not cause detriment to public safety, the size of the parcel for the particular use, the impact on the use of adjacent property and whether the use will impede the normal development pattern in the area. If all the findings are positive, then conditions of approval may be imposed to ensure the project is developed according to the site plan and will continue to have compatibility with surrounding uses.

The Zoning Commission finds the proposed use in the location shown on the site plan conforms to the adopted growth policy to support local businesses, protect existing neighborhood patterns, and add public safety elements such as lighting in parking areas around businesses. The existing parking lot at 1404 Avenue B has low level, shielded pedestrian lighting for the safety of employees who use the lot. It also provides good visibility of the lot during overnight hours when the bank is closed. There are security cameras on the north side of the bank building as well as security lighting over the one access door that faces the alley. The new parking spaces behind the residence at 1406 Avenue B will be an addition to the south and part of the east side of the lot and will leave the existing home in place. The proposed plan shows the preservation of two significant landscape trees in the yard, including a 40-50 ft honey locust and a 20-30 ft apple tree. Two new trees are shown in the parking lot buffer yard. The street frontage on Avenue B and 14th St W will also need street trees and the Zoning Commission is proposing a condition for the installation of these new street trees. The 14th St W frontage is missing one of the original four street trees. Street tree species are on the Billings tree list (pages 6 & 7), attached to the report. The findings of the review criteria are in the Summary portion of this report.

The Planning staff mailed the surrounding owners notices of the application, posted the property with a zoning request sign, placed application materials on the city's Zoning Information web page, and published a legal ad. The applicant conducted a pre-application neighborhood meeting on October 23, 2023, at the Stockman Bank at 1405 Grand Avenue. One surrounding property owner attended the meeting. Planning staff did not receive any comments over the phone, in person, by US Mail or by email prior to the Zoning Commission hearing.

Zoning Commission hearing December 5, 2023
The Zoning Commission held its public hearing and received the planning staff recommendation of conditional approval and testimony from the applicant's agent, Stephanie Donovan of Cushing Terrell and Jeremy Morgret from Stockman Bank. No other testimony was received. The Zoning Commission members asked questions regarding the disposition of the dwelling at 1406 Avenue B and if there will be a need for more parking in the future. Mr. Morgret stated the bank would likely sell the residence on the front of the lot to a family or someone who would rent the home to someone else. Ms. Donovan stated the bank and consultant team reviewed the need for parking and believe the requested nine parking stalls will fill all the needs for the bank. Commission member Dan Brooks stated he normally would not be in favor of taking a residential lot and converting it to parking, but is glad to note the home will be preserved and sold to a new owner.

Chairperson Larson closed the public hearing. Commission member David Goss made a motion to recommend conditional approval of the special review and adoption of the findings of the review criteria. The motion was seconded by Commission member Greg McCall and was approved on a 4-0 vote.

The City Council may take one of the following actions:

• Conditionally approve the request and adopt the findings of the review criteria;
• Deny and adopt different findings of the review criteria;
• Delay action of the application until the next regular meeting; or
• Allow the applicant to withdraw the application; or
• Refer the application back to the zoning commission for an additional public hearing based on a determination that 1) new information has been submitted that the applicant and public has not had a reasonable opportunity to examine and comment on, or 2) new information has been presented that was never submitted or considered by the zoning commission or staff.

The applicant has not requested a delay or a withdrawal of the application. Only one motion to delay for up to 60 days or for a referral back to the Zoning Commission is allowed per application.

Approval or denial of the special review should have no effect on the Planning Division budget.

PROPOSED FINDINGS OF THE REVIEW CRITERIA (27-1623.D and E)
The Zoning Commission recommends approval of the requested special review based on the findings of the criteria. The City Council will consider these findings and recommended conditions prior to making a decision on the special review request. 

1. The special review use is consistent with the City's growth policy and applicable neighborhood plans, if any.
The proposed establishment of 9 new surface parking spots for employees of Stockman Bank on the rear of the property at 1406 Avenue B is in conformance with the following growth policy guidelines:

• Infill development and development near existing city infrastructure may be the most cost-effective. (Essential Investments and Strong Neighborhoods)
• Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, good will and social interaction. (Strong Neighborhoods)
• Neighborhoods that are safe and attractive and provide essential services are much desired. (Strong Neighborhoods)
• Successful businesses that provide local jobs benefit the community. (Prosperity)
• Community investments that attract and retain a strong, skilled and diverse workforce also attract businesses. (Prosperity)
• Retaining and supporting existing businesses helps sustain a healthy economy. (Prosperity)

Stockman Bank at 1405 Grand Avenue is a convenient location for customers and employees. In general, adequate and accessible parking is desired for commercial and retail services. Surface parking on commercial corridor streets can be challenging and may not be the best return on investment for high-value street frontage. Grand Avenue does not have on-street parking. 14th St W does have some on-street parallel parking. The Billings zoning code requires new surface parking in commercial mixed use corridors to be to the side or rear of new buildings. This preserves the highest value frontage for new buildings. New buildings should frame the corridor to help manage traffic flow and to assist customers with finding their destination. Developing the right number and location of employee and customer parking stalls helps businesses succeed. The location of the new parking stalls is in the right place and will not intrude unnecessarily on the neighborhood of Avenue B. The site plan shows new fencing and buffer yards to protect the home and residents of 1406 Avenue B and adjacent homes.

2. The establishment, maintenance, or operation of the special review use will not be detrimental to or endanger the public health, safety, morals, comfort, or general welfare.
The proposed use of up to 9 surface parking spaces located north of the alley at the rear of the property at 1406 Avenue B will not be detrimental to public health, safety, or the general welfare. The applicant will retain the existing home on the street frontage, and it will be occupied as a residence. A new landscaped buffer yard will be put in place, so there is private backyard space for the residents. Two existing mature landscape trees will be retained. These site-specific development conditions will preserve public health and safety.

3. The site is adequate for the proposed use and has topography to accommodate the use while meeting the other requirements of this Zoning Code, including zone district dimensions, landscaping requirements, and parking.
The proposed uses of a small portion of the lot is adequate for the proposed 9 parking spots. The remaining area on the lot will be used by the residents of the home that will remain at 1406 Avenue B. Street trees will be added to the front of 1406 Avenue B and one missing street tree will be replaced on 14th St West.

4. The special review use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood.
The development will not be injurious to the existing use and enjoyment of the residential property in the immediate area. The value of property in the area should be improved through new development on the property. The value of site improvements to land value is a strong 4 to 5 ratio - e.g.improvements equal or exceed four times the value of the land. This indicates a stable neighborhood area with good maintenance and improvements to property over time. 

5. The special review use will not impede the normal and orderly development and improvement of the surrounding property for uses permitted in the district.
The proposed addition of 9 off-street parking spaces accessed from the alley will not impede the normal development of the surrounding neighborhood as all existing uses, including the home and parking, are being maintained, just altered slightly. If the bank needs additional parking in the future and wishes to expand the parking to include the entire parcel, this will require another special review approval.

6. Conditions necessary to protect public health, safety, and general welfare can be established. Staff recommends the following conditions of approval for this project based on the findings of the review criteria:

1. The special review approval is for the establishment of up to 9 new off-street parking spaces on the south end of the property legally described as Lots 47 and 48, Block 2, Evergreen Subdivision. The address of the parcel is 1406 Avenue B. No other use is intended or implied.
2. The site will be developed in substantial conformance to the submitted site plan, including the retention of the two landscape trees (one honey locust and one apple tree), relocation of the 6-foot solid fence to enclose the smaller backyard, installation of the landscaping in the new buffer yard, and installation of new lighting.
3. The applicant will install two new street trees in front of 1406 Avenue B either in the boulevard or within 5 feet of the back of the sidewalk. The missing street tree on 14th St West will be replaced with a new street tree. New street trees should be large enough to have the lowest branch height trimmed up to at least 8 feet above grade to preserve clear vision at driveways and intersections. The applicant will choose trees from the City of Billings tree list for boulevard trees.
4. The applicant will ensure the new light fixtures are similar in style to the existing fixtures at 1404 Avenue B including a maximum height of 15 feet above grade (including the footing, pole and light fixture), and a fully shielded fixture, so no part of the lens is visible below the shielding. 
5. No work on the site improvements will occur before 7 am or after 8 pm daily.
6. The applicant will apply for a permit for the work within one year of City Council approval and complete the work authorized within two years of Council approval.
7. Failure to meet the described deadlines above or complete the authorized work will void the special review approval. Abandonment of the use for more than 6 consecutive months will void the special review approval. Re-establishment of the use or expansion of the use will require a new special review application. 
8. These conditions run with the land use and are binding upon and must be adhered to by the owner and any successors, transferees or assigns.
9. The right of building, engineering, final inspections and occupancy permits are contingent upon the fulfillment of all conditions imposed by this approval.
    

7. Adequate utilities, access roads, drainage, and/or necessary facilities have been or are being provided.
The site is served by water and sewer and the parking spaces will be accessible from the alley or through the existing driveway in the parking lot at 1404 Avenue B. The existing residence will have the required two off-street spaces within the area reserved for their use. Given the existing use and the addition of parking, there are no concerns with adequate utilities, access, drainage, or other facilities.

8. Adequate measures have been or will be taken to provide ingress and egress to minimize traffic congestion on public streets.
The site will not increase traffic on any adjacent street, and the bank has already improved the alley pavement and drainage to accommodate daily use by customers and employees. Some customers or employees that are currently parking on 14th St W or Avenue B will have off-street spaces available. This will minimize traffic congestion on these streets.

9. The special review use shall, in all other respects, conform to the applicable regulations of the district in which it is located, except as such regulations may, in each instance, be modified by the city council.
The proposed site improvements conform to the requirements for off-street parking, landscaping and buffering. The applicant has not requested any variances or modifications of these requirements.