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Item 4.b.
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| City Council Regular | |
| Date: | 10/13/2025 |
| Title: | Returning Item - Zone Change 1070 - Proposed Homestead Acres MU PND |
| Presented by: | Hunter Kelly, Planner 1 |
| Department: | Planning & Community Services |
| Presentation: | Yes |
| Legal Review: | Not Applicable |
| Project Number: | PZX-25-00139 |
RECOMMENDATION
The Zoning Commission is recommending approval and adoption of the findings of the 10 review criteria for Zone Change 1070.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
This is a zone change request for property legally described as Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit farms according to the official plat on file in the office of the clerk and recorder of Yellowstone County, Montana, under Document No. 4086208, from Agricultural (A) to Planned Neighborhood Development -Mixed Use (PND-MU) with First Neighborhood Residential (N1), Mixed Residential 1 (NX1), Corridor Mixed Use 1 (CMU1) and Parks and open space (P1). The proposed zoning would facilitate residential and commercial development. In order for these parcels to be developed, they will be annexed into the City of Billings (Annexation 25-04). This will give access to municipal water and sewer, among other utilities. When properties are annexed into the City of Billings (City), they must also go through a concurrent process to have the property re-zoned to a City Zoning District.
Planning staff recommended approval and adoption of the findings for the 10 review criteria for Zone Change 1070 to the Zoning Commission as detailed in the summary section of this report. The proposed Planned Neighborhood Development is compatible with nearby existing facilities and would not be overly intrusive to nearby developments.
| APPLICATION DATA | |
| APPLICANT: | Brian Harvey |
| OWNERS: | Larry Kramer, Jack Kramer, Kenneth Kramer, Gerald Kramer, and Carolyn Gerondale |
| LEGAL DESCRIPTION: | Lots 66A1 and 67A1 of the Amended Plat of Lots 66A and 67A, Sunny Cove Fruit Farms located in S31, T1N, R25E according to the official plat on file in the office of the clerk and recorder of Yellowstone County, Montana, under Document No. 4086208 |
| ADDRESS: | N/A |
| CURRENT ZONING: | A - Agriculture |
| PROPOSED ZONING: | PND – Planned Neighborhood Development |
| EXISTING LAND USE: | Vacant |
| PROPOSED LAND USE: | Residential and Commercial |
| SIZE OF PARCEL(S): | 54.1 Acres |
| SURROUNDING LAND USE & ZONING: | |
| NORTH Zoning: | N4-Large Lot Suburban Neighborhood & P1 – Parks and Open Space |
| NORTH Land Use: | Vacant, Residential |
| SOUTH Zoning: | N3 - Suburban Neighborhood Residential & P2-Public, Civic and Institutions |
| SOUTH Land Use: | Ben Steele School, Residential |
| EAST Zoning: | N2 – Mid Century Residential, Planned Unit Development - Hawk Creek, & CMU 1, CMU 2 – Corridor Mixed Use1 &2 |
| EAST Land Use: | Residential, Diamond X, Back 9, Bank |
| WEST Zoning: | A- Agriculture |
| WEST Land Use: | Vacant/Agriculture |
Planning staff recommended approval and adoption of the findings for the 10 review criteria for Zone Change 1070 to the Zoning Commission as detailed in the summary section of this report. The proposed Planned Neighborhood Development is compatible with nearby existing facilities and would not be overly intrusive to nearby developments.
STAKEHOLDERS
Planning staff notified the surrounding owners, published a legal ad, and posted the property as required by the zoning regulations. A pre-application neighborhood meeting was conducted by the applicant on the 22nd day of July at Connections Church, 5554 Grand Ave, and 19 persons signed the attendance sheet. The pre-application meeting notes and sign-in sheet are attached.
ZONING COMMISSION PUBLIC HEARING SEPTEMBER 2, 2025
Planner Hunter Kelly began his presentation, explaining the intricacies of the Planned Neighborhood Development (PND) and the constituent zoning types. At the conclusion of the presentation, staff made themselves available for questioning from the Zoning Commission. Commissioner Goss opened by asking about the possibility of future connections to the subject property via Hawk Creek Road. Hunter Kelly and Anna Vickers were able to answer, stating that currently, there are no rights of way from Hawk Creek Road that extend to the subject property, but the applicant may have additional information. The Zoning Commission invited John Halverson of Sanbel, the applicant's agent, to give his presentation on the proposal. John Halverson gave his own presentation on the zone change, highlighting the "look and feel" of possible development in the respective zones within the PND. John was also able to speak regarding a possible connection to Hawk Creek Road, stating the owner and agent have been working with the adjacent property owner to extend the right of way to the subject parcel. Commissioner McCall asked John about the future subdivision layout, with John responding that the final layout has not been finalized, but should resemble the preliminary road layout as described in the zone change exhibit. Commissioner Goss asked about the number of possible units on the development, with John responding that there are an estimated 200 lots by Sanbel's current estimate. The Commission had no further comments or questions from staff or the applicant.
President Dan Brooks opened the public hearing. Philip Hopkins spoke for three minutes regarding the traffic concerns and the danger presented to pedestrians in the vicinity. Wanda Ludvwig made comments regarding the traffic concerns. Steve Ludvwig also commented on the traffic concerns and worried about the height and aesthetic issues stemming from the construction of a possible storage facility on the site. Janice Ward spoke about her traffic and safety concerns. Janice commented that the traffic mitigation should happen prior to any new construction in the vicinity, and recommended that the speed limit be lowered along the adjacent section of Grand Avenue. There were no more comments from the public. President Dan Brooks closed the public hearing.
Dan Brooks opened the Commission for discussion, letting staff or the applicant respond to any of the questions or concerns brought up by the public. DJ Clark of Sanbel spoke about the traffic control measures intended for development in this area and the availability of relevant funding for such measures. Clark also mentioned that Sanbel is working on a TIS for the future subdivision. Commissioner McCall asked DJ to specify what a TIS is for the public. DJ explained that a Traffic Impact Study (TIS) is documentation that analyzes the traffic impacts of a given development, and possible mitigation measures for those traffic concerns. Planner Hunter Kelly spoke about the differences in procedure between zone changes and subdivisions, and how specific traffic mitigation measures is not something that is handled at the zone change stage, but something that is part of the subdivision process. The Commission had no further questions for staff nor the applicant. Commissioner McCall made a motion to approve and adopt the findings of the 10 review criteria for Zone Change 1070. The motion was seconded by Commissioner Megorden. Commissioner Goss comments that he understood the traffic concerns, as he uses that portion of Grand Avenue himself, but mentioned that the development looks good. Commissioner Megorden likewise commented, agreeing with Goss' statements. Commissioner McCall commented that the high density provided by the zoning would create a more stable tax base that could fund road improvements in the area. Commissioner Mulvaney commented that while he understands the traffic concerns, the annexation and zone change of the subject property will create the necessary pressure for the City to improve the roads in the vicinity. The Zoning Commission approved the motion unanimously.
CITY COUNCIL - SEPTEMBER 22, 2026
The applicant requested a delay to October 13th, based on unresolved traffic analysis issues within the overall project. Council Member Boyett motioned to take this item off the Agenda, and schedule the public hearing for the October 13th City Council Meeting. The motion was seconded by Council Member Gulick. Motion was approved unanimously.
ZONING COMMISSION PUBLIC HEARING SEPTEMBER 2, 2025
Planner Hunter Kelly began his presentation, explaining the intricacies of the Planned Neighborhood Development (PND) and the constituent zoning types. At the conclusion of the presentation, staff made themselves available for questioning from the Zoning Commission. Commissioner Goss opened by asking about the possibility of future connections to the subject property via Hawk Creek Road. Hunter Kelly and Anna Vickers were able to answer, stating that currently, there are no rights of way from Hawk Creek Road that extend to the subject property, but the applicant may have additional information. The Zoning Commission invited John Halverson of Sanbel, the applicant's agent, to give his presentation on the proposal. John Halverson gave his own presentation on the zone change, highlighting the "look and feel" of possible development in the respective zones within the PND. John was also able to speak regarding a possible connection to Hawk Creek Road, stating the owner and agent have been working with the adjacent property owner to extend the right of way to the subject parcel. Commissioner McCall asked John about the future subdivision layout, with John responding that the final layout has not been finalized, but should resemble the preliminary road layout as described in the zone change exhibit. Commissioner Goss asked about the number of possible units on the development, with John responding that there are an estimated 200 lots by Sanbel's current estimate. The Commission had no further comments or questions from staff or the applicant.
President Dan Brooks opened the public hearing. Philip Hopkins spoke for three minutes regarding the traffic concerns and the danger presented to pedestrians in the vicinity. Wanda Ludvwig made comments regarding the traffic concerns. Steve Ludvwig also commented on the traffic concerns and worried about the height and aesthetic issues stemming from the construction of a possible storage facility on the site. Janice Ward spoke about her traffic and safety concerns. Janice commented that the traffic mitigation should happen prior to any new construction in the vicinity, and recommended that the speed limit be lowered along the adjacent section of Grand Avenue. There were no more comments from the public. President Dan Brooks closed the public hearing.
Dan Brooks opened the Commission for discussion, letting staff or the applicant respond to any of the questions or concerns brought up by the public. DJ Clark of Sanbel spoke about the traffic control measures intended for development in this area and the availability of relevant funding for such measures. Clark also mentioned that Sanbel is working on a TIS for the future subdivision. Commissioner McCall asked DJ to specify what a TIS is for the public. DJ explained that a Traffic Impact Study (TIS) is documentation that analyzes the traffic impacts of a given development, and possible mitigation measures for those traffic concerns. Planner Hunter Kelly spoke about the differences in procedure between zone changes and subdivisions, and how specific traffic mitigation measures is not something that is handled at the zone change stage, but something that is part of the subdivision process. The Commission had no further questions for staff nor the applicant. Commissioner McCall made a motion to approve and adopt the findings of the 10 review criteria for Zone Change 1070. The motion was seconded by Commissioner Megorden. Commissioner Goss comments that he understood the traffic concerns, as he uses that portion of Grand Avenue himself, but mentioned that the development looks good. Commissioner Megorden likewise commented, agreeing with Goss' statements. Commissioner McCall commented that the high density provided by the zoning would create a more stable tax base that could fund road improvements in the area. Commissioner Mulvaney commented that while he understands the traffic concerns, the annexation and zone change of the subject property will create the necessary pressure for the City to improve the roads in the vicinity. The Zoning Commission approved the motion unanimously.
CITY COUNCIL - SEPTEMBER 22, 2026
The applicant requested a delay to October 13th, based on unresolved traffic analysis issues within the overall project. Council Member Boyett motioned to take this item off the Agenda, and schedule the public hearing for the October 13th City Council Meeting. The motion was seconded by Council Member Gulick. Motion was approved unanimously.
ALTERNATIVES
The City Council may take one of the following actions:
- Approve and adopt the findings of the ten review criteria for Zone Change 1070; or,
- Deny and adopt different findings of the ten review criteria for Zone Change 1070; or,
- Delay action on the zone change request to a certain date not more than 60 days in the future; or,
- Allow the applicant to withdraw the zone change request
FISCAL EFFECTS
Approval or denial of the proposed zone change will not have an effect on the Planning Division budget.
SUMMARY
Prior to taking action, the City Council shall considered 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:
5. Will the new zoning provide adequate light and air?
Similar to Criterias 2 and 3, the proposed zone, like all zones, requires minimum 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 setback/build-to, height, building separation, and Building Code requirements.
6. Will the new zoning effect motorized and non-motorized transportation?
The new zoning itself will not impact motorized and non-motorized transportation. Once developed, there will be increased volume to the transportation network, both motorized and non-motorized. City Engineering will evaluate the impact of these effects using a Traffic Impact Study. At this time the Traffic Impact Study is being worked on by City Engineering and the applicant for the subsequent subdivision. Impacts identified within the Traffic Impact Study are typically mitigated using a proportionate share cash contribution or construction improvements.
7. Will the new zoning promote compatible urban growth?
The proposed zoning does promote compatible urban growth. Directly east of the subject property is N2 zoning. The N2 zoning allows for single-family homes or duplexes. The proposed zoning request N1 zoning which also allows for single-family homes or duplexes. MK Subdivision to the east also has a mixture of CMU1 and CMU2. The proposed NX1 zoning is in the area at Granite Peak Townhomes. Additionally, existing City Water and Sewer mains are within Grand Avenue going as far west as Little River Loop. Due to this, the property is required to annex per DEQ standards of having municipal services within 600 feet of your property boundary.
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. The proposed zoning will allow commercial and residential development. The proposed zoning is compatible with the adjacent zoning and existing development and uses in the vicinity, as mentioned in Criteria 7. Further, this use is compatible with the character of the surrounding district and the suitability of the property for future uses.
9. Will the new zoning conserve the value of buildings?
The property is currently vacant, therefore the new zoning will not have an impact on the value of buildings for the parcel. Any new structures will need to be in compliance with zoning and building codes.
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The landowner has chosen the MU PND [First Neighborhood Residential (N1), Mixed Residential 1 (NX1), Corridor Mixed Use 1 (CMU1) and Parks and open space (P1).] zone as the most appropriate zone and intends to develop the property in accordance with the requirements of the zoning. There is a similar use like this within a nearby Granite Peak Townhomes are zoned NX1. Diamond X, Back 9, Albertsons to the east are all commercial developments zoned CMU1 and CMU2 to the east within MK Subdivision. The proposed zonings within the PND are similar to other zoning within the area making this the most appropriate use of the land.
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:
Strong Neighborhoods;
- Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools, and public gathering spaces foster health, goodwill and social interaction.
- Neighborhoods that are safe and attractive and provide essential services are much desired. Implementation of the Infill Policy is important to encourage the development of underutilized properties.
Prosperity and Essential Investments;
- Infill development and development near existing City infrastructure may be the most cost-effective.
- A diversity of available jobs can ensure a strong Billings' economy.
- Retaining and supporting existing businesses helps sustain a healthy economy.
2. Is the new zoning designed to secure from fire and other dangers?
The new zoning requires minimum setbacks, open and landscaped areas, and building separations. The new zoning, as do all zoning districts, provides adequate building separations and density limits to provide security from fire and other dangers. Additionally, the annexation of the property provides for municipal water service for the site. Any new construction on the site will follow applicable building codes.
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 building code requirements to ensure and promote public health, public safety, and general welfare. Public health and public safety will be promoted by the proposed zone change.
4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
The new zoning requires minimum setbacks, open and landscaped areas, and building separations. The new zoning, as do all zoning districts, provides adequate building separations and density limits to provide security from fire and other dangers. Additionally, the annexation of the property provides for municipal water service for the site. Any new construction on the site will follow applicable building codes.
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 building code requirements to ensure and promote public health, public safety, and general welfare. Public health and public safety will be promoted by the proposed zone change.
4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
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 if a Traffic Impact Study is required. Traffic Impact Studies are required for developments that generate 1,000 trips per day. Any impacts identified within the Traffic Impact Study may require road improvements or a proportionate impact contribution. At this time, the Traffic Impact Study is being evaluated with the subsequent subdivision.
Future phases of the development will be required to connect to existing streets, such as Stream Stone Avenue, Cobblestone Avenue, and pave and provide right-of-way for Colton Boulevard. 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 Sewer: The City provides water and sewer to the property. The utilities will be provided in accordance with the associated annexation agreement that is mutually agreed upon between the City of Billings and the Property Owner/Developer. This agreement is a strict condition of approval for annexations. Water will be extended to the property via Grand Avenue. Per the annexation agreement, the Developer shall pay any water system and wastewater system development fee prior to the issuance of any building permits.
Schools and Parks: Schools may be impacted by the proposed zoning, as the development does include residential use. Parks should not be negatively affected by the proposed zoning.
Fire and Police: The subject property will be served by the City of Billings Police Department and the Billings Fire Department. The nearest fire station is Fire Station 7 which is located approximately 0.37 miles away. The Police and Fire Departments expressed no concerns with the zone change.
Future phases of the development will be required to connect to existing streets, such as Stream Stone Avenue, Cobblestone Avenue, and pave and provide right-of-way for Colton Boulevard. 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 Sewer: The City provides water and sewer to the property. The utilities will be provided in accordance with the associated annexation agreement that is mutually agreed upon between the City of Billings and the Property Owner/Developer. This agreement is a strict condition of approval for annexations. Water will be extended to the property via Grand Avenue. Per the annexation agreement, the Developer shall pay any water system and wastewater system development fee prior to the issuance of any building permits.
Schools and Parks: Schools may be impacted by the proposed zoning, as the development does include residential use. Parks should not be negatively affected by the proposed zoning.
Fire and Police: The subject property will be served by the City of Billings Police Department and the Billings Fire Department. The nearest fire station is Fire Station 7 which is located approximately 0.37 miles away. The Police and Fire Departments expressed no concerns with the zone change.
5. Will the new zoning provide adequate light and air?
Similar to Criterias 2 and 3, the proposed zone, like all zones, requires minimum 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 setback/build-to, height, building separation, and Building Code requirements.
6. Will the new zoning effect motorized and non-motorized transportation?
The new zoning itself will not impact motorized and non-motorized transportation. Once developed, there will be increased volume to the transportation network, both motorized and non-motorized. City Engineering will evaluate the impact of these effects using a Traffic Impact Study. At this time the Traffic Impact Study is being worked on by City Engineering and the applicant for the subsequent subdivision. Impacts identified within the Traffic Impact Study are typically mitigated using a proportionate share cash contribution or construction improvements.
7. Will the new zoning promote compatible urban growth?
The proposed zoning does promote compatible urban growth. Directly east of the subject property is N2 zoning. The N2 zoning allows for single-family homes or duplexes. The proposed zoning request N1 zoning which also allows for single-family homes or duplexes. MK Subdivision to the east also has a mixture of CMU1 and CMU2. The proposed NX1 zoning is in the area at Granite Peak Townhomes. Additionally, existing City Water and Sewer mains are within Grand Avenue going as far west as Little River Loop. Due to this, the property is required to annex per DEQ standards of having municipal services within 600 feet of your property boundary.
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. The proposed zoning will allow commercial and residential development. The proposed zoning is compatible with the adjacent zoning and existing development and uses in the vicinity, as mentioned in Criteria 7. Further, this use is compatible with the character of the surrounding district and the suitability of the property for future uses.
9. Will the new zoning conserve the value of buildings?
The property is currently vacant, therefore the new zoning will not have an impact on the value of buildings for the parcel. Any new structures will need to be in compliance with zoning and building codes.
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The landowner has chosen the MU PND [First Neighborhood Residential (N1), Mixed Residential 1 (NX1), Corridor Mixed Use 1 (CMU1) and Parks and open space (P1).] zone as the most appropriate zone and intends to develop the property in accordance with the requirements of the zoning. There is a similar use like this within a nearby Granite Peak Townhomes are zoned NX1. Diamond X, Back 9, Albertsons to the east are all commercial developments zoned CMU1 and CMU2 to the east within MK Subdivision. The proposed zonings within the PND are similar to other zoning within the area making this the most appropriate use of the land.
Attachments
- Zoning Map and Site Photos
- Application Letter
- Narrative & Pre-Application Notes
- Chart of Zoning History
- Zoning Ordinance 1070