The City Zoning Commission recommended approval and adoption of the findings of the 10 review criteria for Zone Change 1045. The City Council held a public hearing on March 25, 2024, and approved the zone change on first reading. A second reading is required to approve the zone change.

This is a zone change request using the Planned Neighborhood Development zone change process for a proposed annexation of a 48.49-acre parcel located south of Central Avenue and west of the Twin Pines and Legends West urban neighborhoods. The proposed Mixed Use PND will include 6.9 acres of Corridor MIxed Use 1 (CMU1) on the Central Ave frontage, less than 1-acre of Neighborhood Mixed Use (NMU) also on the Central Ave frontage, 21.9 acres of Mixed Residential 1 (NX1), 6.7 acres of Mixed Residential 2 (NX2), 10.4 acres of Mid-Century Neighborhood (N2) and 1.4 acres of Public 1 (P1). The PND process is a tool to help guide the coordination of annexation, subdivisions, and master planning for new city neighborhoods. The previous zoning code (pre-2021) 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 PND process allows 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 Use PND and includes two types of mixed residential zoning (NX1 and NX2), and N2 zoned area adjacent to the County zoning on the west boundary. The Corridor Mixed Use and Neighborhood Mixed Use are along the Central Avenue frontage in proximity to the 44th St W (collector) street intersection planned for this area. The applicant also has an option to purchase another 50+ acres south of the subject parcel. This may also be annexed and zone changed through the PND process. Bell Avenue will be the street that runs along the south boundary of the subject property. The Public zone area is in the southeast corner on both sides of the proposed Bell Avenue.

The zoning plan for the property shows a grid layout that is conducive to the proposed blocks and provides for a wide variety of housing choices on the subject property including single family dwellings, two-family, 3-8 unit apartment buildings (or condos) as well as mixed uses that can provide neighborhood services to the area. The layout meets the requirements of Section 27-800 for Planned Neighborhood Development zone change applications including the required mix of zone districts, blocks, percent open space and recommendations for district placements. The street layout includes connections to adjacent property to ensure connectivity between developments as they occur. The Central Avenue frontage will have a multi-use path required as part of the subdivision and annexation agreement. While this section may be discontinuous to adjacent property outside the city limits, eventually these parcels will annex to the city and the path can be completed.
 

The applicant conducted a pre-application neighborhood meeting on January 24, 2024, at Grace Montessori Academy, 4809 Grand Avenue. Twenty-seven people attended the meeting, not including the applicants. 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 250 units (5+ units per acre) might be built. Attendees asked about the traffic impacts and access to surrounding existing streets. The agents stated they have a contract to do a full traffic impact study based on the proposed zoning if it is approved. Questions were asked regarding building height and whether homes outside the city limits would be forced to annex when water and sewer is installed. The CMU zone allows for up to 4 stories, while the other zone districts are 2 or 2.5 stories. The city will not force anyone to annex unless the property requests or is required to use city water or sewer. Annexation is required before these city services can be provided.

Planning staff did not receive any written comments or phone calls from the surrounding owners prior to preparing this staff report and recommendation. City staff and departments had no negative comments on the proposed annexation and zoning plan. One letter of comment was received by the Zoning Commission on March 4, 2024. This is attached to this report.

City Zoning Commission hearing March 5, 2024
The Zoning Commission held its public hearing and received the staff report and recommendation for approval of Zone Change 1045. The applicant's agent, Craig Dalton of Performance Engineering, provided testimony in favor of the application. He stated the property is currently surrounded by county land and the owner originally intended to build a residential subdivision in the County. As part of the preliminary review of that plan, planning staff encouraged the owner to look at the feasibility of developing within the city limits. He stated the city has identified Central Avenue as a critical corridor for connecting and sustaining the city's infrastructure investments in water, sewer and storm water management facilities. He stated the city had recently installed a 30-inch sewer main along the Monad/Rocky Vista Way corridor to the south and city water is only about 800 feet east on Central Avenue. Mr. Dalton stated the Ridgeline development to the south and west at 48th St W and King Ave W was done by the same owner working with Performance Engineering. He stated that although a full city re-build of Central Avenue is not yet in the Capital improvement plan, developments such as the Clearwater Neighborhood and Vista West to the southeast would help bring that project to the top of the list. The city does intend to enforce its access management on Central Avenue since the street is an important arterial connector. He stated there will be different traffic control at Central Avenue and 48th St W in the future such as a roundabout or signal. He stated the subdivision will have one entry that allows all turning movements, and one that will be restricted to a right in/right out turning movement. He stated that Bell Avenue as shown in the south-east corner would not connect to the current dead end of Bell Avenue unless and until the county land between the subject property and the current city limits is annexed. Mr. Dalton stated the parkland shown on the zoning master plan is just the beginning of their plan for parks in the new neighborhood. He stated it is difficult to know at the PND stage of a project where the best location in the development might be for a neighborhood park. He stated the city should consider allowing some flexibility for the placement or area of Public 1 zoning in a PND after annexation, without having to go through another zone change process. He stated the intent of the CMU1 and NMU zoning on the Central Ave frontage was to encourage the new residents to have walkable amenities and not have to drive everywhere for services. He stated the neighborhood was informed of some of those potential uses, including a gas station or a bar. He stated the location could not support a casino since it does not have the separation distance to a neighborhood zone. He stated a bar may be possible since the neighborhood separation is only 150 feet compared to the 350 feet for a casino. He stated the commercial zoning was not likely large enough for a grocery store, but specialty services such as a bakery or coffee shop might be possible. He stated the mix of the other N and NX zones was to allow residents to choose a housing option that fits their lifestyle and also have the opportunity to stay in the neighborhood when their housing needs change.

Mr. Craig Jardine of 110 Saddletree Lane spoke in opposition. He stated his home is in the Shiloh Estate subdivision to the north of Central Avenue. He stated it does not make sense to strip out commercial development on this location on Central Avenue. He stated he would be in favor of single family development that is similar to the county subdivision to the north. He stated their is enoguh multifamily development already to the south of this land. Mr. Jardine stated the traffic on Central is already hard to manage during certain times of the day. He stated he does not feel left out because there isn't a coffee shop in his neighborhood because there are at least three places to get coffee within 5 minutes of his house. He stated the proposal is not a neighborhood but a subdivision. He stated he has never heard of people moving from house to house within the same subdivision. He stated Twin Pines and Legends West are the preferred development pattern with just single family homes and duplexes. He stated there is no need for more multifamily housing. 

Mr. Andy Wilson of 4355 Wells Place testified against the zone change. He stated their home is right across from the new commercial zoning. He stated he does not want to live across the street from a bar or a gas station. He wanted to know why this was considered compatible with the adjacent zoning, since Shiloh Estates is all single family homes on large lots. He stated this new zoning and subdivision would devalue their property. He stated he found someone out surveying recently on Central Avenue and the work crew told him they were surveying for a new 4-lane street. He stated he would be amenable to all residential zoning and development but not commercial zoning. He stated there were already enough bars just down the street on Shiloh Road.

Laura Wilson of 4355 Wells Place testified against the zone change. She stated this is not the place for commercial zoning or uses. She stated the commercial zoning could allow 4-story buildings. She stated their primary concerns were noise, lighting and crime from commercial activity. She stated neighborhoods that have commercial development have a lot more crime. She stated there was no crime in their subdivision (Shiloh Estates). She stated if a gas station went in it would endanger all their drinking water wells, and cause more air pollution. She stated that right now there are some evenings in their backyard when all you can smell is exhaust fumes from Shiloh and Central Avenue. She stated Shiloh Rd has some very loud traffic noise at all hours of the day and night. She stated the traffic is a constant nuisance to their neighborhood. She stated single-family homes would be welcomed but not commercial uses or multifamily developments.  

Mr. Dalton provided some rebuttal comments on the testimony against the zone change. He stated the city code does not allow the placement of neighborhood zone districts directly on arterial streets. He stated the owner could essentially do the same type of zoning outside the city limits, so having the development in the county and not in the city would not necessarily eliminate commercial zoning on the frontage. He stated that CMU1 would allow a 4-story building, but it is not a requirement of the zone. He stated there are challenges to building at that height. He stated that a bar is possible but not a casino at this location. He re-iterated that the owners' intent is to provide daily services close to the neighborhood, so people need not drive every place.

Chairperson Dan Brooks closed the public hearing. David Goss made a motion to recommend approval and adoption of the findings of the 10 review criteria for Zone Change 1045. The motion was seconded by Andy Megorden. Mr. Goss stated he understood the county neighbor's concerns about the city development across the street. He stated the one thing that was quite noticeable to him when he returned to Billings after living on the West Coast was that the city had grown out but not up. He stated a continuation of the same pattern is no longer feasible. Mr. Brooks stated he also shares the concern about getting development ahead of street improvements and not having Central Avenue as a CIP project yet. He stated this has been the way the city has paid for street improvements - by annexing and getting contributions for those improvements ahead of time, well before there is enough funding to build a safer road. Mr. McCall stated he was recusing himself from the vote and debate on this item as he is in discussions with the owner about buying and developing a portion of this new neighborhood. The Commission voted 4-0-1 to recommend approval of the zone change.

City Council Public Hearing on first reading March 25, 2024
The City Council conducted a public hearing and first reading of the ordinance for the zone change on March 25, 2024. The Council received the Zoning Commission recommendation and testimony from the applicant's agent, Performance Engineering. Council member Aspenlieder recused himself from the hearing and voting due to a conflict of interest. There was no other public testimony.
The Council asked staff and the agent questions regarding the connectivity of the proposed development. The Council expressed concern that the only connection to the west might be through private streets. The Council added a condition to the annexation agreement to ensure there will be public access granted across any private streets in the development.
Mayor Cole closed the public hearing. Council member Rupsis made a motion to approve the zone change and adopt the findings of the 10 review criteria. The motion was seconded by Council member Boyett and approved on a 9-0 vote with Council member Aspenlieder recused from voting.

 

The City Council may:

• Approve and adopt the findings of the ten review criteria for Zone Change 1045 as recommended by the Zoning Commission; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1045; or,
• Delay action on the zone change request for up to 30 days at the request of the applicant or on its own motion; or
• Refer the application back to the Zoning Commission for an additional public hearing based on 1) new information submitted that the applicant and public has not had an opportunity to examine; or 2) new information has been presented that was never submitted or considered by the Zoning Commission or staff; or
• Allow the applicant to withdraw the zone change request.

The applicant has not requested a delay or withdrawal of the application.
 

Approval or denial of the proposed zone change will not have an effect on the Planning Division budget.

The City Council shall consider the findings of the ten review criteria as recommended by the Zoning Commission before making a decision on Zone Change 1045:

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 MU-PND 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 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 higher density housing to be located internal to the property and the dwellings adjacent to the agricultural uses to the west will be a lower density. The proposed zoning plan will have urban development adjacent to county agricultural land to the east, west and south. The property to the south may be an addition to the city in the near future if this development is successful. The layout of the parkland will provide an "entry" type park for the development when the connection is made to the existing west end of Bell Avenue. The location of the parkland on either side of the Bell Avenue right of way will lend itself to a green or a plaza (Section 27-803.B). 

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.

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 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. Bell Avenue will extend further west to meet this collector street in the future. Although it is not shown on the zoning plan, there is a multi-use path planned for the south side of Central Avenue. The city limits are discontinuous on Central Avenue west of Shiloh Road. The developer will likely be required through the annexation agreement to contribute to the cost of this multi-use path construction in the future. 
Water and Sewer: The City will provide water and sewer for the property. There will be no additional impacts on 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. At the time of subdivision, the developer will need to provide additional parkland or cash-in-lieu of parkland to meet the minimum required by subdivision regulations (11% of net area).
Fire and Police: The subject property will be served by city public safety services. The Police and Fire Departments had no concerns about 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 traffic plan for this development. The subject property will be isolated from the co-terminus boundaries of the city limits for an undetermined amount of time. If the developer exercises the option to purchase the 50 acres to the south, a clear vehicle and pedestrian connection can be made to the urban neighborhoods of Lenhardt Square, the Vista West development and the St. Vincent's Healthcare subdivision, as well as a connection to Shiloh Road. Central Avenue is a principal arterial street. Most of the development west of Shiloh Road with access to Central Avenue is rural residential neighborhoods that are still actively used for agricultural purposes. The average daily traffic count just west of Shiloh road is less than 6,500 trips per day. The 2016 West End Multi-Modal Traffic Study (city/County) indicated long term projects for Central Avenue from Shiloh Road to 48th St West would include completion of a three-lane section (one lane each direction with a center turn lane) and a traffic control option (signal or roundabout) at 48th St W and Central Avenue. The existing conditions according to the 2016 study indicated a low level of service for traffic entering or leaving Central Avenue during peak hours between Shiloh Road and about 44th St West. The level of service is based on wait time for making safe left or right turns onto Central Avenue or off of Central Avenue. The south side of Central Avenue is on the list of arterial streets with a multi-use path on the south side of the right of way. There is no continuous city-controlled right of way on Central Avenue west of Shiloh. The developer will be required to contribute to the future construction of the multi-use path.   

7) Will the new zoning will promote compatible urban growth?
The proposed overall development density is compatible with urban growth and the provision of city-level services for 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 Central Avenue and King Ave West is undergoing rapid urban development and growth. Demand for new housing choices, including townhomes and apartments, is increasing. Providing a wide range of housing types 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 for 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 Used PND with N2, NX1, NX2, CMU1, NMU and Public 1 zoning will encourage the most appropriate use of this land in Billings.