The Zoning Commission recommends approval and adoption of the findings of the 10 review criteria for Zone Change 1047 on a 3-1 vote.

This is a zone change request for a property currently zoned Suburban Neighborhood (N3) in the 7th and 8th Filings of Copper Ridge Subdivision located on the west end of Rimrock Road. Rimrock Road essentially dead ends at the railroad right of way at the city limits. There is a rail trestle that allows passage under the tracks, but it is rarely used except by property owners to the west.

This is a revision of the original application submitted in February 2024. The applicant requested a delay of the scheduled March 5, 2024, Zoning Commission hearing in order to revise the request in response to neighborhood concerns. The original application included Mixed Residential zone districts (NX1 and NX3). The revision removed those districts and expanded the area for First Neighborhood (N1) zoning and for the Public 1 (P1) zone for parks and open space. The applicant is proposing to re-zone approximately 62.5 acres of yet-to-be developed portions of Copper Ridge. The zoning before the 2021 update was Residential 5,000 (R50) to allow the development of two-family dwellings on lots of at least 8,000 square feet. When the city consolidated and changed to neighborhood zone districts, most of Copper Ridge Subdivision was updated to N3. The owners now want to re-zone the undeveloped land to allow more housing choices in the last phases of Copper Ridge Subdivision. The proposed zoning will include 46.01 acres of First Neighborhood (N1) zoning to accommodate single and two-family dwellings on lots that require less street frontage, and 16.59 acres of Public 1 (P1) zoning to meet the dedication requirements for parkland in subdivisions and provide a larger central neighborhood park. The applicant has submitted an exhibit that shows the exact proposed zone boundaries for each new zone district. The N1 zoning allows 2.5 story residences (up to 27 feet), and the P1 zone allows structures that accommodate and complement park uses.

This area of Billings has been developing over the past 20 years following the extension of 8 miles of city and water infrastructure past Shiloh Road (2001/2002). This allowed Ironwood Subdivision, Augusta Ranch and Falcon Ridge subdivisions to develop in low density suburban neighborhoods. These facility extensions were done by the city with only minor contributions from the developers except where the water and sewer lines entered the new subdivisions. This also allowed the Yellowstone Club Estates subdivision to annex and connect to the municipal sewer services. The city also took over the existing water service pipes and infrastructure from the homeowner's association.

After the development of several hundred homes in this area, the city needed to install a new water reservoir above Ironwood Subdivision to ensure adequate water pressure for homes, especially those with a 2nd or 3rd story. It is estimated by City Utilities that 16% of all daily city water demand during the summer months is from this area of West Billings. This area is about 744 acres, with about 1,650 dwellings. The estimated population is 3,800 residents. This is about 3% of the total population of the city.

There are very few housing types available in this area of West Billings. There are a few duplexes and some 4-unit buildings in Falcon Ridge Subdivision. Coal Creek Subdivision south of Falcon Ridge is all two-unit townhomes. Augusta Ranch also has a handful of single unit townhomes on the east side of Molt Road. Most vacant lots for development are between 1/4-acre up to 3/4-acre lots. The market value of vacant land for sale in this area of Billings ranges from $225,000 per acre up to $450,000 per acre. The Department of Revenue assessed values of vacant land range from $125,000 per acre up to $350,000 per acre. 

A few annexed and subdivided parcels have brought in new zone districts and housing options to West Billings including Sweetgrass Creek (south of Rimrock Rd between 54th St W and 58th St W), Buffalo Crossing and 54 West Subdivision at 54th St W and Rimrock Rd. Existing subdivisions with undeveloped land are also beginning to recalculate the market for housing choice in West Billlings. 
   
Housing demand reached a high level in 2021 and the trend continues into 2024. 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 cost of all housing have driven the demand for dwellings with more modest lot area to ease long-term maintenance costs, and to provide financially attainable homes for this part of the market. Demand for new dwellings of all types is high, but developers have not kept up with demand. Development has been hampered in part by hyper-inflation of the cost of building materials during the COVID-19 pandemic, labor shortages, and interest rate hikes over th past two years. New dwellings (detached single family homes) that have received final occupancy approval average about 298 per year over the last 4 calendar years but demand for this type of dwelling is about 40% higher than supply. Two-family dwellings and townhomes are also not meeting demand in this market.

Developers have made robust investments in expanding the variety of housing choices in West Northwest Billings. There have been more new residential developments south of Broadwater Avenue than this area to the north and west. The most recent development in West Billings with more than just single family dwellings is the Zimmerman Home Place apartments approximately five miles to the south and west. Townhomes and two-family dwellings are also in demand in West Billings, but there are few opportunities for this type of housing.

There are challenges to an area of urban development that is on property on the very edge of the urban/rural interface with only a small amount of existing suburban development (east). It is not possible to project future development in areas outside the County's zoning boundary. The property south of Rimrock Road has been added to the area of anticipated annexation in the next five years. This is not meant to ensure existing development patterns continue to the edge of the city limits. The development plan should include similar and compatible zone districts, connectivity where and when needed, and recognition of similar goals for all types of property. The 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan goals and policies support the proposed changes to the district zone 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 applicant conducted a pre-application neighborhood meeting on January 25, 2024, at 7043 Copper Sunset Drive. The pre-application meeting synopsis is attached to this report. Twenty-nine surrounding property owners signed the attendance sheet for the meeting. The Planning staff has received copies of emails on this zone change that were sent to the City Council as well as a number sent directly to staff prior to the Zoning Commission meeting. Planning staff provided some clarification to neighborhood inquiries on the proposed zone change and how traffic impacts are evaluated and at what point those impacts can be evaluated. The applicant revised the application after an approved delay of the public hearing on March 5, 2024, by the Zoning Commission. Much of the public comment came based on the original zoning application.

Zoning Commission hearing March 5, 2024
The applicant requested in writing and in person a delay of the public hearing until the May 7, 2024, Zoning Commission meeting. The applicant explained the owner wished to revise the application in response to neighborhood concerns. The Zoning Commission granted the delay to the May 7, 2024, hearing date. The Zoning Commission ensured the revised application would be published as a legal ad, the property re-posted, and the surrounding owners on the 1/4-mile mailing list received a new public hearing notice.

Zoning Commission hearing May 7, 2024
The Zoning Commission held its public hearing on May 7, 2024, and received the staff recommendation, testimony from the applicant's agent, John Halverson of Sanderson Stewart, and testimony from several surrounding property owners including Hillary Johnson of 3015 Cove Creek Circle, Ace Olszowka of 4818 Audubon Way, Eric Panknin of 7035 Shiny Penny Way, Gary and Angela Lapin of 7045 Shiny Penny Way, Denise Smith of 3039 Forbes Blvd, and Dave Halland of 3044 W Copper Ridge Loop. Several email letters of comment were received in the days prior to the hearing and those emails were entered into the record, provided to the Zoning Commission and available for viewing in the ex parte notebook at the hearing. These are included as an attachment to this report.

Mr. Halverson provided a presentation to the commission that included information on how the application complies with the neighborhood plans, is responsive to the neighborhood concerns and helps achieve several important goals of the growth policy, including providing a variety of housing choices in all neighborhoods, allowing efficient use of the land, providing more parks and open space area and allows the developer to meet the demand of the entry-level housing market in the 300K to 500K price range. Mr. Halverson stated that existing homes in previous filings of Copper Ridge are not attainable for the average or above average household income families. More than 80% of the homes available are in the 500K to 700K price range. He stated the developer would like to introduce smaller lots and more affordable homes to these last two phases of Copper Ridge. He stated the developer, Williams Homes, builds quality products that will increase value in the area and spread the tax burden to more payers, so the city services are better supported over time. He stated the existing zoning would allow about 245 lots to be platted, and the proposed N1 zoning would allow about 300 lots. The additional 50 to 55 lots would not be a significant increase. He stated a subdivision that comes after the zone change decision will include a traffic impact analysis update, a street layout (not just a concept plan), and proposed lots. He stated the 7th and 8th Filings of Copper Ridge are already obligated to pay their proportionate share of the surrounding street improvement necessary to support the development. 

Gary Lapin testified he was opposed to the zone change and any future development until the traffic issues and street problems are resolved. He stated that Rimrock Road has been decimated over and over again by construction traffic and all the new traffic from residents. He stated that Rimrock Road needs to be fully re-done, so it does not keep falling apart every season. He stated the developer had started and stopped inconsistently within the platted area, and it is creating a nightmare for residents.

Hillary Johnson testified in opposition to the zone change. She stated the surrounding elementary, middle schools and high school are all above capacity. She stated there is no way for the school district to keep up with the growth in this area with just the schools in place. She stated there are no walking paths except for the sidewalks on the local streets. She stated she often sees people trying to walk along Rimrock Rd and other external streets without sidewalks and this is dangerous. She stated the needed city infrastructure is lagging too far behind the building of new homes. She stated the traffic study should be done at the time of zoning - not at the time of subdivision. She stated it is important to ensure the safety of all residents in the area. She stated the commission should recommend a different zoning than the N1 requested. She stated the streets in the existing development should not connect to this new area, the N3 should be left in place along the common boundary, then P1 zoning to create a buffer and then N2 zoning for the remaining area. She stated there were irregularities in the required notifications for the pre-app meeting and for the submittal of the zone change revisions in April. 

Ace Olszowka testified against the zone change. He stated that he does not live in the immediate area but believes no further development should happen until a bike path is completed between 54th St West and 70th St West along Rimrock Road. He stated this is achievable and should happen first before any more building or development occurs to the west.

Eric Panknin testified against the zone change. He stated he was concerned the developer would be changing the neighborhood too much. He stated when he bought in this neighborhood he thought all the future development would be the same. He stated no one is buying right now with the economy and interest rates where they are now. He stated there are many incomplete homes already in Copper Ridge that appear to have been abandoned by the developer. He stated he is definitely not in favor of this new zoning.

Angela Lapin testified against the zone change. She stated the covenants and restrictions for all of Copper Ridge state that the lots are only for residential use and only single-family detached dwellings are allowed. She stated the existing roads should not connect to the new roads in this development. She stated they have lived in a construction zone for at least 2 1/2 years so far, and the roads are getting too torn up.

Denise Smith testified in opposition to the zone change. She stated the covenants matter to the residents of Copper Ridge. She stated the road system is land locked. Rimrock Rd cannot expand to the west and there are no north/south arterial streets to handle all the traffic from the existing developments in the area. She stated she worked hard to achieve the ability to buy a home in Copper Ridge. She stated she is in favor of affordable housing options, but it should be done in an area that is more logical and not on the far end of the subdivision. She stated there are no safe walking paths on the arterial streets and collectors that do exist. She stated in the few years she has lived in this area, traffic volume has increased exponentially. She stated high density like this zoning should be closer to town and to services. She stated this is not good infill for the city.

Dave Halland testified against the zone change. He stated that everyone knows Rimrock Road is a disaster because of all the traffic it has to handle from the existing developments. It sprouts new potholes every few weeks and all the construction traffic isn't helping. He stated he is in favor of affordable housing, but this is not the area for this type of housing. He stated the new Albertson's on Grand markets to the higher income people who live here, even including offering high-priced wine and over-priced everyday groceries. He stated that people who need an affordable home could not shop at the new Albertsons due to the pricing.

Mr. Halverson provided rebuttal and answered some questions from the testimony. He stated the street layout and traffic impacts will be evaluated and managed at the next step of the development during the subdivision review. He stated the developer will be building a full-width sidewalk on the north side of Rimrock Rd and connecting the existing sidewalk further to the east. He stated the school capacity issues are also dealt with at the time of the subdivision reviews. He stated that while this is attainable housing for new families, it is not subsidized in any way and will be offered at market rates. He stated they will be building single-family homes, not high-density multifamily dwellings.

Chair Daniel Brooks closed the public hearing. Commission member Greg McCall made a motion to recommend approval and adoption of the findings of the 10 review criteria. The motion was seconded by Commission member Andy Megorden. Commission member Greg McCall stated that if there were a way to have a "do-over" the N1 zoning would be more centrally located in Copper Ridge, but the proposal is for the west end of the subdivision. He stated there is a dire need for this type of housing in Billings and smaller lots and more modest home sizes are the way we can encourage this development.

Commission member Dvaid Goss stated he understands the previous zoning was Residential 5,000, which allowed smaller lots and duplexes as well as more lot coverage, but at the time WIlliams Homes bought the property in its new zone of N3. He stated the new owner was aware of the zoning at the time of purchase, and the city has a certain obligation to existing property owners to maintain a status quo. He stated it is frustrating for residents to have no nearby commercial services, while more and more housing is built. The housing should follow commercial development when possible. He stated the commission cannot dictate where or when street connections happen.

Commission member Greg McCall stated he somewhat agrees with Mr. Goss, but pointed out that a zone change is an option for any property owner when the market changes. He stated the proposed N1 zoning has the potential to allow more people to buy homes in Billings. Mr. Goss stated he was hoping that some close-in and over-parked commercial properties would build residential developments on the vacant parking areas. These residents would naturally support those commercial uses. Mr. Goss re-stated his position on needing to provide predictability for current homeowners.

Commission member Andy Megorden stated this proposal as resubmitted is much better than the original proposal. He stated he has traffic concerns but understands the order of operations for development. He stated the N1 zoning is not a medium or high density zone and is compatible with the existing development. Chair Daniel Brooks stated he agreed with the comments of the other commission members and that the original proposal would not have gained his support. He stated the revision does have his support as it provides a small increase in density but maintains the overall character of the area. The Commission voted 3 in favor and 1 opposed to the motion to recommend approval. Commission member David Goss voted against the motion.

The City Council may:

• Approve and adopt the Zoning Commission's recommended findings of the ten review criteria for Zone Change 1047; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1047; or,
• Delay action on the zone change request for up to 60 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 have 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.
 

• 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 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.
• 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. Existing seasonal low water pressure will be addressed by City Engineering.
• Schools and Parks: Schools and parks may be effected by the proposed zone change and completion of this city neighborhood. School District 2 did not provide any comments. Boulder Elementary School had 501 students in the current school year with a student teacher ratio of about 20 students per teacher. The student capacity of Boulder school is 450 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 Copper Ridge neighborhood park on Lucky Penny Lane. The closest developed community park will be Cottonwood Park on 54th St West south of Rimrock Road. The city also owns Phipps Park, a 350-acre mostly natural park north of the railroad tracks. There are jogging trails and a disc golf course. This city park is outside the city limits. The planning staff did not receive any comments from Parks, Recreation and Public Lands staff concerning this zone change. The proposed zoning also includes about 16.5 acres of Public 1 zoning that will be for parkland. The types and locations of such open spaces will be determined at the time of a final development plan review by staff.
• 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?
Similar to criteria 2 and 3, the proposed N zone, like all zones, require minimum property line 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) Will the new zoning effect motorized and non-motorized transportation?
Non-motorized travel -- walking and biking -- is an essential part of the Copper Ridge neighborhood. This will continue to be the case in this final building phase of Copper Ridge. Pedestrian connections will be ensured through the development. The city will be undertaking improvements to Rimrock Rd west of 54th St W to complete pedestrian facilities and improve traffic safety. The most recent traffic counts at Rimrock Rd just west of the intersection with 62nd St West is about 2,500 vehicle trips per day. Improvements to this intersection are planned as part of the traffic management for the neighborhoods in the area.

7) Will the new zoning 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. Further site development requirements for parking, landscaping, frontage improvements will be required with new development. Additional housing types and choices will contribute to a neighborhood that is resilient and open to residents of all ages.

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 is completing the development of a city neighborhood. 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 N1 district 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 area where there are few options other than single unit dwellings on large lots. 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 N1 is similar and compatible with the other two N zone districts of N3 or N2. The N1 zoning which allows single-family and two-family dwellings is compatible with the N3 to the east.