The Zoning Commission is forwarding a recommendation of approval for all four ordinances included in Zone Change 1060, the amendments to the zoning regulations to update and improve the city's zoning code.

In 2021, the City adopted an entirely new zoning code. As part of that process, the Planning Division agreed to monitor and update the code as errors or adjustments were needed to ensure the new code fit in with the city's development policies and practices. These amendments are intended to conclude the adjustment period for the new code. This does not mean monitoring of the code implementation and application is not ongoing and as issues arise staff will bring them to Council over time. The Planning staff reviewed these amendments with the Zoning Commission on December 3, 2024, and the board agreed to initiate these amendments. The Planning staff refined the drafts and brought them to a City Council Work Session on January 21, 2025. The Council agreed with most of the proposed amendments but directed staff to do additional research on the shipping container use issue. Staff completed this research and has concluded that the amendment related to shipping containers is not yet ready for consideration.

The proposed amendments are divided into four separate ordinances to ensure each one addresses only one topic. 
 
GENERAL ORDINANCE CLEANUP
The proposed amendments include cross-reference errors and numerical errors as well as a few additions that will keep the code consistent. One of those consistency issues relates to height exceptions for structures that are not occupied, such as flagpoles, chimneys and similar. The height exceptions for these structures were included in the previous zoning code, but when the update was written over the three years of Project ReCode, the height exceptions were only included in the Public Zone District (Section 27-500). The amendment will place similar height exception language in the neighborhood, mixed-use, commercial, and industrial zone district sections. A second part of the clean-up is to remove the block design standards from the Planned Neighborhood Development process section. The block and street design standards have recently been adopted by City Council into the subdivision regulations where other neighborhood design standards are also addressed. These standards in zoning are no longer necessary. A third change in the general cleanup is the expansion of the list of allowed uses in the Public 1 zone district for parks and recreation. The list is an exclusive list so expanding the possibility of uses is required by ordinance amendment. Many of the added uses are already uses in the city's parks and public lands. Expansion of the allowed uses in the code will make the Public 1 zone district more predictable.

MANUFACTURED HOMES
During the 2023 legislative session, language in the authority section for municipal zoning was changed to exclude references to "build dates" of manufactured homes as well as any references to design or building materials. The city must update its code to come into conformance with state law. The amendment removes any reference to the type of manufactured home that may be allowed in the Residential Manufacture Home zoning district. All manufactured homes built to the HUD code requirements (in place since June 1976) may be allowed in those RMH zone districts. Manufactured dwellings built before the HUD code do not need to be allowed in any zone district in the city. The state and city codes define these dwellings as "mobile homes" or "house trailers". These are not allowed in any of the city's RMH zone districts. There may be existing mobile homes (built before June 1976) that are located in the city limits. These dwellings were not intended to have a long life-span, especially given the harsh climate in Billings. Many of these older dwellings have been replaced, or will be replaced, with HUD-code-compliant manufactured homes, site-built homes or even modular-built dwellings set on permanent foundations. Modular-built dwellings must meet the same code as a site-built dwelling.

ENFORCEMENT AND VIOLATIONS
The City's Code Enforcement Division is responsible for resolving zoning code violations. The enforcement section of the zoning has some confusing language and unpredictable penalties for zoning violations. The proposed amendment is intended to clarify the language and be more specific on what penalties or cites may be issued for violations of codes. The Planning staff worked with the Code Enforcement Division and the City Attorney's office to craft language for this amendment.

SPECIAL REVIEW FOR VEHICLE SALES IN CMU1 DISTRICTS
The Zoning Commission recently reviewed a proposed zone change for property in the 2100 block of Grand Avenue to allow a car sales lot to be located on the property. The CMU1 zone district does not allow vehicle sales, so a zone change to CMU2 was required to allow the use. The Zoning Commission agreed with the applicant that a car sales lot might be appropriate at the location, but many other uses allowed by right in the CMU2 zone would not be compatible. The Zoning Commission thought an amendment to allow a special review of vehicle sales in the CMU1 zone would be a good solution for this proposal and overall, throughout the city. A special review is not an allowed use of property and the applicant has the burden of proving the use is compatible at a particular location and the specific surrounding uses. This amendment would allow vehicle sales by special review in the CMU1 zone district.
 

The planning staff sent out drafts of the zoning amendment to the Home Builders Association, the Billings Area Realtors and several builders, developers and professional consultant firms. A legal ad was published, and the information was posted on the Planning Division's website. No concerns or comments have been shared with the planning staff as of the writing of this report.

City Zoning Commission public hearing March 4, 2025
The City Zoning Commission conducted a public hearing on March 4, 2025, and reviewed the draft amendments with staff. In response to questions from staff, clarification of the amendment for the height exception was explained that commercial wireless facilities and amateur radio towers are not included in the amendment. Other sections of the zoning code do regulate the height and location of those types of antennae. No other testimony was received. The Commission had no further questions about the amendments.

The Chair closed the public hearing and asked for a motion on the proposed amendments. Commission member David Goss made a motion to recommend approval of all four ordinances amending the zoning regulations and adoption of the findings of the ten review criteria. The motion was seconded by Commission member Beau Mulvaney and approved on a 3-0 vote. Commission members Megorden and McCall were absent from the meeting.

The City Council may:

• Approve and adopt the findings of the ten review criteria as recommended by the Zoning Commission for all the text amendments as proposed; or
• Approve and adopt the findings of the ten review criteria as recommended by the Zoning Commission with changes to the proposed text amendments; or
• Approve some of the proposed text amendments; or 
• Deny and adopt different findings of the ten review criteria for one or more of the text amendments; or
• Delay action on one or more of the text amendments to a future City Council meeting.

It is important to note that if the City Council does not approve the changes to the Residential Manufactured Home zone districts, the city will be out of compliance with state law and could be challenged.

Approval of some or all of the text amendments to the zoning regulations will have a financial impact on the City Clerk's or Planning Division's budget. The city contracts with Municode to incorporate changes to the city's code to ensure consistency and accuracy. Municode charges for the city for this service. City Administration has historically distributed these costs to departments and divisions based on the codes amended. However, changes to the City code do not just benefit or affect the Planning Division, or any other Department. The entire community is affected by City code changes and so the cost of updating the City code should be covered by the General Fund which distributes the cost across all users of City services.

 

Prior to making a decision the City Council shall consider the following proposed findings as recommended by the City Zoning Commission:

1. Is the new zoning designed in accordance with the Growth Policy?
The proposed minor amendments are consistent with 2016 Growth Policy and the Project ReCode Guiding Principles:   

2016 Growth Policy:

• Essential Investments (relating public and private expenditures to public values)
• Place Making (Enhance, maintain, preserve, and improve existing public places)
• Community Fabric (attractive, aesthetically pleasing, uniquely Billings)
• Strong Neighborhoods (livable, safe, sociable and resilient neighborhoods)
• Home Base (healthy, safe and diverse housing options)
• Mobility and Access (transportation choices in places where goods and services are accessible to all)
• Prosperity (promoting equal opportunity and economic advancement)

Project ReCode Steering Committee Guiding Principles (2019):

• CLARIFY AND SIMPLIFY - All new regulations will be written in Plain English to maximize readers’ ability to find what they need, understand what they find, and use what they find to meet their needs.
• REGULATE WHAT MATTERS - The regulations will have a clear alignment with community goals today while allowing for changing goals in the future.
• PRESERVE AND PROTECT THE RIGHTS OF OWNERS AND RESIDENTS - The regulations will recognize and incorporate clear and well-defined processes that uphold property rights and access to housing choices.
• PREVENT CONFLICTS - The regulations will be internally consistent and will not create direct or un-reconcilable conflicts.
• OPTIONS AND CONTEXT - The regulations will provide a range of site development options with clear criteria and guidelines for allowing alternatives to future development as well as changes to existing neighborhoods as the community’s goals change.
• MAINTAIN WHAT WE CARE ABOUT - The regulations will encourage the stability of existing neighborhoods while allowing for changes over time.
• FILL THE VOID – The regulations will consider and include land uses and combinations of land uses that have been overlooked or not considered in the current code and methods for accommodating new use options.
• PROSPERITY – The regulations will serve to support the community’s need and desire to remain regionally competitive in the recruitment of businesses, expansion of existing business, and private investment in the economy, all to promote job creation.

2. Is the new zoning designed to secure from fire and other dangers?
A finding for this criteria is not relevant in the context of adjustments to the code.
 
3. Whether the new zoning will promote public health, public safety and general welfare?
Public health and safety will be promoted through the text amendments. Amending the local code to align with the state law requirements will promote regularity in the application of law. This promotes public health, safety and general welfare.

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
A finding for this criteria is not relevant in the context of adjustments to the code.

5.  Will the new zoning provide adequate light and air?
A finding for this criteria is not relevant in the context of adjustments to the code.

6.  Will the new zoning effect motorized and non-motorized transportation?
A finding for this criteria is not relevant in the context of adjustments to the code.  

7. Will the new zoning will promote compatible urban growth?
The zoning amendment promotes compatible urban growth in the areas of the City by correcting errors in the adopted code.
 
8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
A finding for this criteria is not relevant in the context of adjustments to the code.  

9. Will the new zoning conserve the value of buildings?
A finding for this criteria is not relevant in the context of adjustments to the code.  
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
A finding for this criteria is not relevant in the context of adjustments to the code.