The planning staff is recommending approval of Zone Change 1065 and adoption of the findings of the 10 review criteria.
 

This is a zone change request for 1440 Governors Boulevard, a 2.557-acre parcel currently zoned Public 2 – Public, Civic, and Institutions (P2). The property is undeveloped and fronts onto Governors Boulevard. The proposed zoning of Mixed Residential 1 (NX1) will allow for the development of 1- to 4-unit dwellings, including detached single-family homes. The applicant intends to pursue a single-family residential development that will provide workforce housing in alignment with the City’s housing goals.

In 1985, this parcel underwent a zone change from the Public (P) zone to Residential 9,600 (R-96), a zoning district was intended to promote primarily a single-family residential environment on lots that are served by public water and sewer service. With the adoption of the new zoning code, the parcel was reclassified as P2, a zone primarily intended for public, civic, and institutional uses.

The surrounding area is predominantly residential, with Mixed Residential 2 (NX2) zoning to the north, Suburban Neighborhood (N3) zoning to the south, state-owned vacant land to the west, and Castle Rock School to the east. The proposed NX1 zoning provides a compatible transition between these residential districts and supports infill development in an area already served by existing infrastructure, including water, sewer, and public transportation.

Traffic volume on Governors Boulevard just south of Wicks Lane is approximately 6,350 vehicle trips per day. The traffic volume at the intersection of Governors Boulevard and Constitution Avenue is approximately 2,430 vehicles per day. These traffic counts are based on a three-year rolling average, taken during off-school times, and do not account for peak hours or special events. The proposed development of 18 to 30 single-family homes is expected to generate additional traffic. According to the Institute of Transportation Engineers (ITE) Trip Generation Manual, a typical single-family detached home generates approximately 10 vehicle trips per day. Based on this estimate, the development could add approximately 160 to 300 daily vehicle trips to the local network, depending on the final unit count. If total daily trips exceed 500 average daily trips (ADT), a traffic impact study would be required by the city if the site is developed using a master site plan process. At this time, the projected traffic increase is expected to be manageable within the existing street capacity but will be evaluated further during the site development process.

The proposed residential development at 1440 Governors Boulevard aims to provide affordable workforce housing through the construction of single-family homes on an underutilized parcel. The project will introduce 18 to 30 single-family dwellings, consistent with the NX1 zoning district, and will include supporting infrastructure as required by the engineering code, building code, and zoning code. As the demand for diverse and attainable housing options continues to grow in Billings, this development is intended to serve working individuals and families while maintaining compatibility with the surrounding residential neighborhood. The proposed zone change will allow for modestly higher residential density in a manner that complements existing land use patterns. Improvements such as new pedestrian connections and compliance with the City’s stormwater and transportation standards will enhance overall neighborhood connectivity and livability.

APPLICATION DATA
OWNER: School District #2
AGENT: Dax Simek, PE – Stahly Engineering & Associates, Inc
LEGAL DESCRIPTION: S21, T01 N, R26 E, C.O.S. 1105, PARCEL 5C, & TR 7 AMD
ADDRESS: 1440 Governors Boulevard
CURRENT ZONING: P2 - Public, Civic, and Institutions
PROPOSED ZONING: NX1 - Mixed Residential 1
EXISITING LAND USE: Vacant Land
PROPOSED LAND USE: Single Family Detached Housing Units
SIZE OF PARCEL(S): 2.557 Acres

SURROUNDING LAND USE & ZONING:
NORTH: NX2 - Mixed Residential 2 (multi-family housing)
SOUTH: N3 - Suburban Neighborhood (single family housing)
EAST: P2 - Public, Civic, and Institutions (Castle Rock Middle School)
WEST: NX2 - Mixed Residential 2 (vacant land)

The Planning staff has reviewed the application and drafted findings for the 10 review criteria for the zone change and is recommending approval based on the draft findings. The request is consistent with the goals of the 2016 Growth Policy, which supports infill development, efficient use of existing infrastructure, and the creation of diverse and affordable housing options. The proposed zoning will facilitate the development of workforce housing on an underutilized parcel, helping to meet a critical housing need in the community. Additionally, the NX1 designation is compatible with surrounding zoning districts and existing residential land uses, ensuring a smooth transition within the neighborhood context. The proposed zoning on the subject parcel is compatible with the adjacent zoning and land uses.

The applicant, School District #2, represented by Stahly Engineering and in partnership with the developer LiveAble, LLC, held a pre-application neighborhood meeting on March 20, 2025, at Castle Rock Middle School, on Governors Boulevard to the east of the subject property.

Four neighboring residents attended the meeting. During the discussion, participants asked whether the School Board supported the proposed zone change. The applicant confirmed that the School Board had reviewed and voted in favor of moving forward with the application. Attendees also inquired about the scale of the proposed housing development, to which the developer responded that 18 to 30 single-family homes may be constructed, pending final site layout approval. Questions regarding stormwater management were addressed with assurances that the project would comply with all City stormwater regulations and that off-site drainage would be analyzed to mitigate potential flooding risks. One resident asked about the ownership structure, and the developer provided an overview of the workforce housing model proposed for the site. Another question focused on whether there were any plans to expand development onto adjacent State-owned lands to the west, which the applicant stated they are not currently being considered for development.

The agent explained the proposed zone change as a necessary step to provide affordable, single-family housing in an area with access to existing infrastructure and transit services. There were no objections or written comments submitted during or after the meeting.

Planning staff posted the zoning request sign on the property and mailed the 1/4-mile notification list of the pending zone change. In addition, the application details were published on the Planning "current zoning applications" webpage and a legal ad was published in the newspaper of record. Planning staff has received no written comments on the application as of the date of this report.
 

The Zoning Commission may take one of the following actions:

• Recommend approval and adoption of the findings of the ten review criteria for Zone Change 1065; or, 
• Recommend denial and adopt different findings of the ten review criteria for Zone Change 1065; or,
• Delay action on the zone change request to a date certain not more than 60 days in the future; or,
• Allow the applicant to withdraw the zone change request.

In case of a tie vote on the zone change, the application may be delayed for 30 days until the next Zoning Commission meeting. The Zoning Commission must forward a recommendation with findings to the City Council. The applicant has not requested a delay or a withdrawal of the application at this time.
 

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

Prior to any recommendation to the City Council, the Zoning Commission shall consider the following:

1. Is the new zoning designed in accordance with the Growth Policy and neighborhood plans?
The proposed zone change is consistent with the following guidelines of the 2016 Growth Policy.
Essential Investments

• Infill development and development near existing City infrastructure may be the most cost effective.

The Growth Policy encourages infill development and development near existing City infrastructure as it is typically the most cost-effective way to grow the community. This zone change promotes infill development on a currently unimproved parcel that lies within city limits and is ready to be served by public utilities. By utilizing existing water, sewer, and transportation infrastructure, the proposed development reduces the need for costly extensions of city services and supports the efficient use of public resources.

Strong Neighborhoods

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels
• Implementation of the infill policy is important to encourage development of underutilized properties

The proposed NX1 zoning allows for the development of single-family detached homes as part of a broader mixed-residential context. This supports a diverse range of housing types and helps to meet the needs of residents across age groups and income levels. Implementation of the City’s Infill Policy is a key strategy in strengthening neighborhoods by reducing sprawl, enhancing the walkability of communities, and promoting the development of underutilized properties. This zone change directly aligns with those goals by enabling new residential opportunities on a vacant lot in an established neighborhood, thereby contributing to neighborhood stability and vitality.

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.

The Growth Policy emphasizes the importance of offering a mix of housing options that address the needs of a diverse and growing population. The proposed zone change would enable the construction of affordable single-family homes targeted for workforce housing, an identified need in Billings. These homes would provide new residents with the opportunity to live in safe, healthy, and affordable surroundings. The location—adjacent to transit, schools, and parks—further enhances the livability of the area and supports the broader community goal of housing accessibility.

2006 Heights Neighborhood Plan Goals
· Goal: To provide safe, good quality and affordable housing in the Heights.  Develop housing patterns that are compatible with existing neighborhoods.  Encourage high-density, multi-family development along arterial routes.  Maintain similar housing in established neighborhoods.  

The requested NX1 zoning district enables the development of single-family homes intended for workforce housing, directly addressing the need for more affordable housing options in the area. The site is well-located—near schools, parks, and transit—and its development will contribute to neighborhood safety, stability, and accessibility. The proposed housing type is also compatible with the established residential pattern to the south and east, which consists of single-family homes on standard urban lots.

The Heights Neighborhood Plan encourages high-density multifamily development along arterial routes, it also emphasizes the importance of maintaining similar housing types within established neighborhoods. This proposal honors that balance by introducing new single-family units at a slightly higher but compatible density, supporting affordability without disrupting the character of the surrounding neighborhood. Infill development on this parcel ensures that underutilized land is brought into productive use in a manner that complements the existing built environment and contributes positively to the broader community fabric of the Heights.

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning, as do all zoning districts, provides adequate building separations to provide security from fire and other dangers. Any new construction on the site will follow applicable building codes, engineering standards for storm water control, connection to city services and parking lot construction. All zoning requirements will be followed.

3. Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety are promoted by the proposed zoning. New construction on the site will follow engineering code, building code, and zoning code requirements to ensure and promote public health, public safety and general welfare.

4. Will the new zoning facilitate the adequate provision of transportation, water, sewage, schools, parks, and other public requirements?
Transportation: The site is located along an existing Billings MET route (West Heights Circulator 18), providing accessible public transportation options for future residents. There is MET bus stop 1813 right in front of the subject parcel. It is anticipated that this development will add additional trips to Governors Boulevard and the surrounding street network. If the project results in an ADT of 500 or more trips per day, a traffic impact study will be required.

Water and Sewer: Existing public water mains are available on Governors Boulevard. The development can connect directly to this infrastructure, requiring no additional City infrastructure.

School and Parks: The site is located within an established school district (School District #2, also the current landowner), and nearby schools already serve the surrounding residential area. The addition of up to 30 homes is not anticipated to have a significant effect on school capacity. Any potential impact will largely depend on the composition of households and the number of school-aged children among the new residents. The proposed development will maintain access to nearby parks already serving the Heights area. The application does not propose removing any dedicated park space.

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 zone, like all zones, requires setbacks to allow for adequate separation between structures and adequate light and air. This parcel is presently vacant, therefore any new structure(s) will be required to meet the zoning standards required by Section 27-307 (NX1 district), engineering standards and building code requirements.

6. Will the new zoning effect motorized and non-motorized transportation?
The proposed NX1 zoning may have a modest impact on motorized transportation by increasing the number of vehicle trips on Governors Boulevard and nearby streets once the new homes are built. However, the expected number of housing units (18–30) is relatively low, and any significant increase in traffic would be reviewed through the City’s traffic impact process.

For non-motorized transportation, the impact is expected to be minimal. Sidewalks and pedestrian connections in the area already exist along Governors Boulevard. There are existing bike lanes on Governors Boulevard from W Wicks Lane to Lake Elmo Drive. The location is along the Billings MET West Heights Circulator 18 Transit route. This further supports alternative transportation options, reducing potential reliance on personal vehicles. Overall, the proposed zoning is not anticipated to negatively affect transportation in the area.

7. Will the new zoning promote compatible urban growth?
The proposed NX1 zoning supports compatible urban growth by encouraging residential development within the existing city limits on a currently underutilized parcel. The site is primarily surrounded by residential zoning and land uses, including NX2 zoning to the north and single-family residential (N3) to the south, making the proposed NX1 zoning a fitting transition between zoning types.

This type of infill development helps the City grow in a more efficient and sustainable way by using existing infrastructure and public services, rather than extending new systems into undeveloped areas. The project aligns with the City’s Infill Policy and Growth Policy by promoting compact, connected, and cost-effective development. It also adds much-needed workforce housing, which contributes to a balanced and inclusive housing supply while maintaining neighborhood character.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed NX1 zoning is compatible with the character of the surrounding district, which includes a mix of residential zoning and housing types. While the new development may introduce slightly higher density than the single-family lots to the south, it remains consistent with nearby land use patterns and zoning designations, including NX2 to the north. The property is well-suited for residential development and offers an opportunity to introduce affordable, single-family housing in a way that respects the existing neighborhood fabric. The NX1 zoning allows for a thoughtful balance between increased housing supply and maintaining compatibility with surrounding development.

9. Will the new zoning conserve the value of buildings?
The proposed zoning is not expected to negatively impact the value of surrounding properties. The NX1 district supports residential development that is compatible in scale and character with nearby homes, particularly the single-family neighborhoods to the south. By introducing well-planned, affordable housing within an established neighborhood, the development may enhance area property values by improving the use of currently vacant land and contributing to overall neighborhood stability.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning supports the most appropriate use of land by facilitating infill development on a currently underutilized parcel within the City limits. The site is already served by public infrastructure, making it well-positioned for cost-effective development. By enabling the construction of workforce housing—a critical need in Billings—the zoning change not only addresses housing demand but also contributes to efficient land use and urban growth management. Additionally, bringing this parcel into active residential use will expand the City’s tax base and strengthen the surrounding neighborhood.