The Zoning Commission recommended approval and adoption of the findings of the 10 review criteria for Zone Change 1055. The City Council approved the zone change on first reading on September 23, 2024. A second reading is required to approve the zone change.

This is a zone change request to remove multiple lots in the Galaxy Subdivision from the 1978 Planned Development zone district and place these lots in standard zone districts of Suburban Neighborhood (N3 - single family detached), Mid-Century Neighborhood (N2 - one or 2-family dwelling) and Mixed Neighborhood Residential 2 (NX2 - 2 to 8 unit buildings). The current PD zoning identifies the lots by area: single family or multifamily. It also distinguishes between condominiums and apartments in the multifamily area. The single family area requirements closely match the archived Residential 9,600 (R96) zone, and each multifamily lot was designated for a specific structure based on the number of units. For example, in Block 6, Lots 3 to 9, Lot 12, 21, 22, and Lots 26 to 30 (multifamily) are designated for 8-plex structures, while Lots 1, 10, and 11 are designated for 12-unit structures.

The original Planned Development zone was approved by the City Council in 1978. The Galaxy Subdivision attempted to make infrastructure improvements by using an SID. The SID required a bond sale. The bond sale failed. The owners then decided to proceed in phases with the improvements. The area north of Senators Boulevard was done first and then the northern part of the subdivision south of Senators Blvd. The area north of Senators Blvd is a single family designated area. There are only four vacant lots out of the 43 lots in this area. Most of the vacant lots are south of Senators Blvd and are the subject of this zone change. In this area south of Senators Blvd, there are 29 attached (multifamily) dwelling units and 24 detached single-family dwellings. One of these units is a county hospice home. There are a total of 91 lots included in this zone change application, totaling 32.13 acres in area. This is about 58% of the total development area south of Senators Blvd. The proposed zoning of the 32.13 acres is 13.66 acres of N3, 2.79 acres of N2 and 16.53 acres of NX2. The applicant estimates this would allow up to 235 dwelling units. The existing zoning of the 91 lots would allow up to 373 dwellings.  

The specificity of the existing PD agreement along with the soil challenges of shallow sandstone and the type of sandstone, have contributed to the lack of build-out of this subdivision. In 2002, the city declared the parkland in Galaxy Subdivision as surplus (former Hultgren Park). The 1.6-acre park was purchased by the applicant and the deed was recorded in 2004. The underlying zoning of the park was not changed to reflect the ownership change. The proposed zone change includes this part of the subdivision. The incomplete status of the development has caused neighborhood confusion, with some residents incorrectly assuming it was all parkland and would not be developed. Every growing season, residents complain about the overgrowth of weeds on the property. This requires city notification of the owner to mow the weeds. Casual use of the vacant property happens on a daily basis by people taking a walk or kids playing in the open area. There are three other adjacent parcels that are city parks that were dedicated, including the linear park under the power lines (5.6 acres), the linear park along the south side of Senators Blvd (2.7 acres) and the rimrock sandstone cliff to the south and east of Asteroid Avenue (3.8 acres).

The change in the zoning for these parcels will make the development of the lots more flexible but also more predictable. The proposed NX2 zoning does not allow structures with more than 8 dwelling units, where the existing multifamily area allows several lots with 10 or 12 unit buildings. The former parkland is proposed to be mostly zoned N2 with a small part in the N3 zone district. This zone change will not affect the zoning of other parts of Galaxy Subdivision as this underlying zoning and agreement will continue in effect. Section 27-107 of the new (2021) zoning code preserves these archived zone districts and planned development zones:

The applicant conducted a pre-application neighborhood meeting on July 9, 2024, on the subject property. Approximately 50 surrounding property owners attended the meeting along with the agents for the owners, Greg Reid and Aaron Redland of WWC Engineering. The meeting notes are attached.

The Planning staff published a legal ad, posted the property and sent notification to the 810 property owners within the required notice area of 1,320 feet. The Planning staff did not receive any letters, emails or phone calls regarding the proposed zone change at the time of this staff report.

Zoning Commission hearing September 3, 2024
The Zoning Commission held a public hearing on September 3, 2024, and received the Planning staff recommendation and testimony from the applicant's agent, Greg Reid of WWC Engineering. Several surrounding property owners attended the public hearing, including Linda Holmes of 657 Oasis, Wendy Ross of 768 Asteroid, Lou Hanebury of 656 Oasis, Sue Cozzens of 755 Asyeroid Ave Unit 1, and Walt Schopfer of 647 Sahara. Planning staff received one email from Wendy Madison (Ross) prior to the hearing. The email is attached to this report. No other written or spoken testimony was received. Most spoke in general support of the zone change as a better option than the current situation with the planned development. Most expressed concerns about existing and future traffic management of the surrounding streets, especially Governors, Aronson and Senators Blvd. Many stated the ability to exit or enter Neptune Blvd onto Governors was nearly impossible in the morning and challenging during the remainder of the day. Many asked for solutions to traffic exceeding the speed limits on the surrounding arterial streets and for another signal on Governors Blvd at Senators or Neptune to help control traffic. Additional concerns were related to the density of the remaining development, its impact on the Heights schools and the ratio of single family dwellings to multifamily units. Several comments related to the sandstone rock and how the property would manage drainage, if blasting would be needed to install water and sewer lines, and existing water pressure problems for the cul-de-sac homes in the subdivision. 

Greg Reid, agent for the owner, explained that traffic from the proposed development would be studied as part of a subsequent re-platting of the vacant lots. The owner intends to vacate the four additional cul-de-sacs off Aries Avenue and re-align Zodiac and Aries Avenue. Mr. Reid has had preliminary discussions with the city Traffic Engineer, and they have requested six intersections be studied as well as an analysis of traffic-calming measures for Aronson Avenue. He stated the owner will engage a Transportation Engineer as part of the subdivision application. Mr. Reid stated they are aware of the challenging soil characteristics, and a full analysis based on site studies and borings will determine how infrastructure will be installed, including depth and what type of excavation would be required. He stated the owners' goal is to install water, sewer and storm drainage with the least amount of disturbance to the existing neighborhood. Mr. Reid stated the initial plan would be to complete Aries Avenue and the lower end of Asteroid to connect with Aronson Avenue. This will provide a full second access point to the neighborhood, a critical feature of public safety for the existing and proposed residential dwellings.

This first phase will consist of new single family dwellings under the proposed zoning. Mr. Reid stated the problem with water pressure in some of the homes is the neighborhood is split between two water pressure zones. In addition, the current water system in the subdivision is not looped but a series of dead-end water lines. He stated when the water line is looped down to Aronson Avenue, pressure should improve but will not be completely solved. City Utilities Engineers will need to study the issue more closely to resolve the water pressure disparity in the area. He stated some homes at the "top" of the system have 50 psi water pressure and some at the bottom of the system have water pressure of 120 psi. In regard to the status of the former city-owned park (Hultgren Park) he stated the zoning of the park would be changed from Public to N2 and N3 with the proposed zone change. He stated the owner purchased the park property two decades ago and the land has not been a city park since that time, although the zoning has not changed. Mr. Reid stated the school district did not provide comment on the zone change but is always involved in the subdivision process when the number of new lots and dwellings is more certain. He stated the schools have been aware of the development of the area since 1978, so any new students from the build-out of the subdivision can be accommodated either in existing schools or new schools in the district.

Chair Dan Brooks closed the public hearing. Commission member David Goss made a motion to recommend approval of Zone Change 1055, and adoption of the ten review criteria. The motion was seconded by Commission member Greg McCall, and approved on a unanimous vote.

City Council Public Hearing and first reading September 23, 2024
The City Council held its public hearing and first reading for Zone Change 1055 on September 23, 2024. The Council received the Zoning Commission recommendation of approval and testimony from the applicant's agent, Greg Reid of WWC Engineering.

Linda Holmes and Lou Hanebury of Oasis Drive testified with concerns about traffic impacts, water pressure and building impacts from digging in the sandstone rock that is underneath the subdivision. Mr. Reid provided clarification that the next phase of development will include a re-subdivision. The subdivision will include a traffic study of the proposed development including surrounding intersections and traffic-calming measures for Aronson Avenue. He stated the developer is required to investigate the soil conditions prior to installing new infrastructure in addition to surveying existing buildings and foundations prior to any excavation of installation of utilities. A post-construction survey is also required to document any damage to the existing buildings. He also clarified that the water pressure issue is that homes on Alkali Creek Rd - well below Galaxy Subdivision - are on the same system. He stated static water pressure for homes on Oasis Dr can be as low as 50 psi, while homes on Alkali Creek Road are at 120 psi - a maximum pressure for most residential plumbing fixtures. Equalizing the static pressure between these two elevations is difficult. He stated that looping the system in the Galaxy Subdivision may help the situation.

Mayor Cole closed the public hearing. Council member Gulick made a motion to approve the zone change and adopt the findings of the 10 review criteria. The motion was seconded by Council member Neese and approved on a 10 to 1 vote. Council member Aspenlieder voted no.

The City Council may:

• Approve and adopt the findings of the ten review criteria for Zone Change 1055 as approved by the Council on September 23; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1055; 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. The City Council approved the zone change on first reading.
 

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

Before making a decision, the City Council shall consider the recommended findings from the Zoning Commission on Zone Change 1055.

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 Heights Neighborhood Plan (2006):

Heights Neighborhood Plan

• Encourage infill development and housing development that meets residents’ desire to have similar housing within their neighborhood.
• Provide safe, good quality and affordable housing in the Heights.
• Encourage infill housing.

2016 Growth Policy
Essential Investments:

• Landscaping of public rights-of-way and entryways makes Billings more visually appealing to residents and visitors.
• Infill development and development near existing city infrastructure may be the most cost-effective.

Community Fabric:

• Attractive streetscapes provide a pleasant and calming travel experience in urban and suburban neighborhoods.

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.
• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels.
• 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.

Home Base:

• A mix of housing types that meet the needs of a diverse population is important.
• Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe.

Mobility and Access:

• Planning and construction of interconnected sidewalks and trails are important to the economy and livability of Billings.
• "Safe Routes to Schools" promotes physical health and reduces vehicle trips, earning parents more time and less cost for transportation.

The proposed zoning will enable the development of the remaining 32+ acres of undeveloped land in the Galaxy Subdivision according to current zoning standards for single family homes, two-family homes, townhomes and apartments. The original zoning from the 1978 planned development specified the exact configuration of multifamily structures for each lot with certain lots designated for “12-plex” and others for “6-plex” buildings. This level of detail limited the developers' flexibility to housing market demands.

The proposed zoning standards will allow for a range of building sizes and densities, determined by market demand and construction considerations such as soil conditions, storm water management and lot configurations. Under the proposed NX2 zoning, no structure can exceed 8 dwelling units, but smaller buildings with at least 2 dwelling units are permitted. The proposed N3 zoning is restricted to single-family detached homes, while the N2 zone allows one or two-family structures. The zoning proposal maintains the previous mix of single-family and multifamily uses but aligns with current standard zoning districts.

The new zoning regulations now emphasize building forms and development patterns that promote walkable streets, slower traffic, and enhanced neighborhood amenities. The proposed zoning and subsequent subdivision re-platting will facilitate the infill of this partially developed subdivision.
 

2. Is the new zoning designed to secure from fire and other danger?
The subject property is currently served by the Billings Fire Department. Although some development has occurred, all the lots are on a system of dead-end streets. Completing the streets to connect to the south will improve the overall public safety in the area. The proposed zoning includes minimum setbacks and separations to ensure fire safety between structures. Additionally, completing a looped water system will improve water pressure for both existing and new homes. The nearest fire station, Station #6, is located on St Andrew’s Drive just north of Wicks Lane, approximately 1.25 miles northeast of the subject property. Depending on the specific uses, further review for fire protection will be conducted during the property's development process. City water and other improvements will be implemented to protect the new residents from fire and other hazards.

3. Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety will be improved by the proposed change in zoning. Vacant land tends to attract unintended uses, inserts uncertainty into a neighborhood and can compromise public safety. Vacant land adjacent to a developed area can be mistaken for open space and public land. Changing the zone districts will allow the property to develop in a way that is predictable and compatible with the existing area.

4. Will the new zoning facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The existing zoning and new development will increase traffic on the adjacent street network. City Engineering will review any new development proposed to determine updates that may be required to any original traffic management plan. Surrounding intersections will be evaluated for any needed traffic management improvements. The new connection to Aronson Ave. will increase the safety of the neighborhood by providing a second full access, as required by the city’s development rules. If approved, the applicant intends to reconfigure the subdivision road and lot layouts to match the zoning and provide a better final design.
Water and Sewerage: The property will be served by city water and sewer. Looping the series of dead-end water and sewer services will improve service for the area.
Fire and Police: The subject property is served by the Billings Fire Department and the Billings Police Department. Completing this development will improve public safety by connecting the neighborhood to the south, allowing first responders to move more efficiently throughout the area. A second full access point is a crucial component of creating a safe and well-connected neighborhood.
Schools and Parks: The original subdivision plan and zoning anticipated the development of 525 dwelling units in 1978. Since that time, only 88 dwelling units have been developed in the Galaxy Subdivision. Most of these units (59) are single family detached dwellings and 28 of those units are in the area north of Senators Blvd. In 1978, the school district estimated the 525 dwelling units (at full build-out) would increase student populations in these schools by about 400. Since 1978, the school district has constructed six schools in Billings Heights – three elementary schools, two middle schools and one high school. This location is within the Alkali Creek Elementary district, the Castle Rock Middle School district and Skyview High School. The most recent enrollment at Alkali Creek School is 335 with a 15:1 student to teach ratio; at Castle Rock the recent enrollment is 711 with a 17:1 student to teacher ratio; and Skyview High School enrollment is 1,602 with a 19:1 student to teacher ratio. The proposed addition of about 235 new dwelling units will increase student enrollment at each of these schools. It is not known how many years it would take for the developer to sell and build the new dwellings. Impacts to any of these schools may happen gradually over time.

The property had several parks dedicated at the time of the subdivision in 1978. These are primarily natural parks to the south, north and east. There was one internal neighborhood park parcel that was deemed to be excess land in the early 2000’s. The applicant bid on the park, and it was sold and deeded to Mr. Lyndes in 2001. The zoning was not changed at the time. This park was known as “Hultgren Park” and never developed. The proposed zoning will change the underlying zoning of this former park to N3 and N2. The closest public parks developed for active recreation are Walsh Park and Edgerton Park in the Kimberley Heights Subdivision to the north across Governor’s Blvd. The Lutheran church at the corner of Aronson and Governor’s Blvd has a developed ball field, and Alkali Creek School to the south has playground equipment. It is about ¼-mile from the middle of the undeveloped lots to the Lutheran Church ball field and about ½ mile to the Kimberley Heights parks. Although the Alkali Creek school property is geographically close, walking distance is more than a mile unless a walking trail is built down the rimrocks to Pow Wow Park and a safe crossing of Alkali Creek is created.

5. Will the new zoning provide adequate light and air?
The existing PD zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air. The zone change will increase some setbacks, increase height limits and lot coverage allowances. The proposed zoning should not affect the provision of adequate light and air.

6. Will the new zoning affect motorized and non-motorized transportation?
Non-motorized travel -- walking and biking -- is an essential part of the traffic plan for this area of Billings. There is a separate multi-use trail on Senators Blvd, marked bike lanes on Governors Blvd, and boulevard separated sidewalks on both sides of Aronson Blvd. The internal sidewalk system in Galaxy Subdivision was developed as a curb-sidewalk. Current city development standards require boulevard sidewalks. There are trails throughout the adjacent parks. Re-platting of the streets and lots will give the opportunity to ensure connections to these open spaces. Vehicle access to the development is currently through Neptune Blvd from Governors Blvd. When the second access is completed, traffic can enter from Aronson Ave. Both intersections will be permanent T-intersections with stop controls. A traffic study could be required to ensure existing street facilities and traffic management can handle the additional vehicle traffic. An estimate of potential new vehicle trips for 235 dwelling units with 100 single family detached dwellings and 135 townhomes/condos/or apartments is about 2,000 new vehicle trips per day at full build out. Full development is not likely to occur for at least 5 years and more likely 10 years.

7. Will the new zoning promote compatible urban growth?
The proposed new zoning for these lots is compatible with the adjacent and planned urban growth in this in-fill location. There is a lack of diverse housing options on the west side of Main Street in the Heights. Approximately 70% of the land area west of Main Street is zoned for single-family detached dwellings. Other zone districts such as N2 that allow two-family dwellings are restricted to single-family detached dwellings by subdivision covenants and restrictions. Mixed residential zoning such as NX1, NX2 or NX3 are very limited and no new multifamily or townhome attached dwellings have been constructed west of Main Street for several years.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zone change will take this property out of the current planned development zone and place it in three standard zone districts – N3, N2 and NX2. These zoning designations closely match the existing PD without allowing any structure with more than eight dwelling units in the multifamily area. This proposed zoning does consider the character of the district and the suitability of the property for the proposed uses. The demand for housing choices, including townhomes, apartments and smaller single-family residences, is increasing. The underlying zoning is too restricted in some ways to allow flexible development of one or more types of housing. The current height limits are out-of-date with current construction standards for most dwellings, and the demand for single-level homes does not fit with the lower limit for lot coverage. The proposed zoning allows this flexibility without becoming unpredictable.

9. Will the new zoning conserve the value of buildings?
The property consists of undeveloped parcels. Approval of the zone change to change the zoning will continue to provide certainty to surrounding landowners and may help to maintain property values of adjacent buildings. New developments tend to increase adjacent property values, and remove uncertainty.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning amendment for these lots will promote the most suitable use of this land in Billings. Planned development zones are often complex, making them challenging to administer and enforce.