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Item 4.
 
City Council Regular
Date: 10/27/2025
Title: City Zone Change 1072 - Lots 1, 4, and 5 of Clearwater Estates Subdivision - CMU1, NMU, NX1, NX2 and P1 to CMU1, NX1, NX2, and P2
Presented by: Karen Husman
Department: Planning & Community Services
Presentation: Yes
Legal Review: Not Applicable
Project Number: PZX-25-00160

RECOMMENDATION

The Zoning Commission recommends approval and adoption of the findings of the 10 review criteria for Zone Change 1072.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

This application is a request to amend the zoning layout established under Planned Neighborhood Development (PND) Zone Change 1045, which was approved and annexed in April 2024. The subject property is located south of Central Avenue and west of the Twin Pines and Legends West urban neighborhoods. This is a zone change request from Corridor Mixed Use 1 (CMU1), Neighborhood Mixed Use (NMU), Mixed Residential 1 & 2 (NX1 & NX2) and Open Space Parks Recreation (P1) to Corridor Mixed Use 1 (CMU1), Mixed Residential 1 & 2 (NX1 & NX2) & Public-Civic, Institutional (P2) on approximately 3 acres of Lot 1, all of Lot 4 and approximately 14 acres of Lot 5, of Clearwater Estates Sub. 

The original zoning plan included a grid street layout designed to accommodate a variety of housing types and neighborhood services. Permitted uses included single-family dwellings, two-family units, multi-family buildings ranging from three to eight units, and mixed-use developments providing neighborhood-scale services. The plan met the requirements of Section 27-800 for Planned Neighborhood Development applications, including block design, district mix, open space allocations, and district placement standards. The proposed modification to the zoning layout continues to uphold the intent and objectives of the approved PND.

This portion of Billings has experienced significant growth and development over the past decade, including several Planned Development zones with customized mixed-use and residential patterns, along with medical facilities. Housing demand continues to exceed supply across all types. Local planning and growth policy documents, dating back more than twenty years, identified the need for diverse housing options, particularly independent living units for aging residents, townhomes, and apartments.

Census data underscores these needs. The 2010 Census recorded a decline in household size to 2.3 persons, while the 2020 Census reported a modest increase to 2.8 persons, with 17.5% of the city’s population aged 65 or older. These demographic shifts, combined with rising housing costs, have increased demand for apartments, townhomes, and smaller multi-family products. Developers have responded with significant multi-family projects in the Lenhardt Square area, including the InterUrban, Interpointe, and KWO Apartments, along with new projects underway. Additional multi-family developments near King Avenue West and Shiloh Road have further expanded the housing supply, yet demand remains strong, particularly for housing in proximity to schools, shopping, and recreation.

Urban development at the city’s edge presents challenges, particularly the need to ensure appropriate transitions between county and city development. These transitions do not imply uniformity between jurisdictions but require thoughtful buffering, connectivity, and coordinated planning.

The proposed zone change is consistent with the goals and policies of the 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan. Both documents emphasize the importance of compatible land use, diverse housing choices, and a range of development densities. The Growth Policy specifically supports housing diversity, walkable neighborhoods, improved connectivity, and the creation of public spaces that strengthen community fabric. The proposed amendment to the zoning layout aligns with these objectives.

APPLICATION DATA
OWNERS: 44 West Development, LLC
AGENT:  Dennis Randal
LEGAL DESCRIPTION: Clearwater Estates Sub, Lots 
ADDRESS: south of 4524 Central Ave.
EXISTING LAND USE:  Undeveloped
PROPOSED LAND USE: Residential single-family and multi-family
EXISTING ZONING:CMU1, NMU, NX1, NX2, and P1
PROPOSED ZONING: CMU1, NX1, NX2, and P2
SIZE OF PARCEL: 24.668 acres

SURROUNDING ZONING & LAND USE
NORTH: AG
Land Use:  Residential & Agriculture
SOUTH:  AG
Land Use:  Residential & Agriculture
EAST:  AG
Land Use:  Residential & Agriculture
WEST: N2 (proposed N3)
Land Use: Undeveloped

STAKEHOLDERS

The applicant conducted a pre-application neighborhood meeting that was held on August 26, 2025, at 6pm at Grace Montessori School.  Six individuals were present. The proposed zoning area 44 West Subdivision (currently the easterly portion of Clearwater Estates Subdivision) is currently in its final plat status. 
  • Growth in the area: Several attendees expressed they have enjoyed the lack of development in this location and would prefer that it remain unchanged.
  • Traffic impacts: Concerns were raised about the additional traffic that new housing could bring to the neighborhood.
  • Housing type and density: Two attendees stated they would only be supportive of low-density single­-family housing. Others, while cautious, acknowledged the need for more affordable home options in Billings.
During the meeting, it was explained that the intent of the proposed zoning change is to adjust the zoning boundaries to better fit the finalized neighborhood design, which in fact reduces some of the zoning districts originally anticipated. To provide additional clarity, I shared a neighborhood rendering illustrating our vision for 44 West. This visual helped residents understand our intentions for the subdivision. While some attendees remained opposed to any change beyond low-density single-family housing, others were open and understanding of the city’s need to provide diverse and affordable housing options.

Planning staff did not receive any written comments or phone calls from surrounding property owners prior to preparation of this report and recommendation. City departments and reviewing agencies submitted no negative comments regarding the proposed zoning plan.

CITY ZONING COMMISSION MEETING
The Zoning Commission conducted a public hearing on October 7, 2025. Staff presented the recommendation, followed by testimony from the applicant’s representative, Greg McCall. Mr. McCall provided additional details regarding the proposed project and noted that a subdivision application is currently under review.

He explained that modifying the zoning areas in the original Planned Neighborhood Development (PND) is being requested due to the complexity of preparing a PND and annexation concurrently. While the requirement for multiple zoning districts within a PND encourages a mix of uses and supports balanced community growth, determining the appropriate placement of each zoning district can be difficult until development and construction planning are underway. Mr. McCall further stated that considerations such as utility connections, easements, and road dedications all influence how the subdivision is ultimately designed. In this case, the proposal does not alter the overall concept of the PND but rather adjusts the zoning layout to better align with the most effective development pattern.

Commissioner Goss asked how the proposed development compares in density to Mr. McCall’s other projects.

Mr. McCall responded that the density would be similar to the Josephine Crossing development, accommodating approximately 400 to 600 new homes.

Public comment was then opened, and no members of the public provided testimony.

Following the close of the public hearing, the Commission deliberated briefly. Commissioner Megorden made a motion to forward a recommendation of approval for Zone Change 1072, including adoption of the review criteria as findings of fact. The motion was seconded by Commissioner Mulvaney and approved unanimously on a 4-0 vote, with Commissioner McCall recusing himself from the decision.
 

ALTERNATIVES

The City Council may:
  • Recommend approval and adoption of the findings of the ten review criteria for Zone Change 1072; or,
  • Recommend denial and adopt different findings of the ten review criteria for Zone Change 1072; or,
  • Delay action on the zone change request for up to 30 days; 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

Before taking action the City Council shall consider the following findings of the ten review criteria:

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 the West Billings Neighborhood Plan (2001):

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 West Billings Plan adopted a number of Goals, Policies, and Implementation Strategies. The proposed zone change for the property is consistent with the following adopted Policies of Planned Growth
Goal 1: Establish Development Patterns that Use Land More Efficiently
Policy R "Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments."

The proposed zoning is compatible with goals of the West Billings Neighborhood Plan. The proposed zone change will accommodate uses that are compatible in a mixed-use environment. 

The proposed zone change is in line with the adopted 2016 Growth Policy goals for:
Strong Neighborhoods:
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.
Home Base:
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.
The proposed layout for the property will allow higher density housing to be located on the west and south of the property and the dwellings adjacent to the agricultural uses to the west will be a lower density. The proposed zoning plan will have urban development adjacent to county agricultural land to the  west and south. The property to the south may be an addition to the city in the near future if this development is successful. 

2) Is the new zoning designed to secure from fire and other dangers?
The zoning requires minimum setbacks, open and landscaped areas and building separations. The zoning assembly is designed to secure the development from fire and other dangers.

3) Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety will be promoted by the proposed change. Approval of the zone change will provide certainty both for the property owner and the surrounding owners. Provision of public health and safety services from the city will promote the general welfare of the area.

4) Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: A Traffic Impact Study (TIS) was completed as part of the subdivision application. The study analyzed the Central Avenue corridor between 48th Street West and Shiloh Road, as well as major intersections within one mile of the development.  The TIS concluded that turn lanes into the development will eventually be warranted. In addition, if the property north of Central Avenue develops, a traffic signal may be considered.
Water and Sewer: The City will provide water and sewer for the property. There will be no additional impacts on the system from the proposed changes.
Schools and Parks: Schools and parks may be affected by the proposed zone change and development of a new city neighborhood. SD #2 did not provide any comments. The developer has provided parkland to meet the minimum required by subdivision regulations (11% of net area).
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?
The proposed zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.

6) Will the new zoning effect motorized and non-motorized transportation?
Non-motorized travel — walking and biking — is an essential part of the traffic plan for this development. The developers may have the option to purchase the 50 acres to the south. If this area is developed, a clear vehicle and pedestrian connection can be made to the urban neighborhoods of Lenhardt Square, the Vista West development and the St. Vincent's Healthcare subdivision, as well as a connection to Shiloh Road. Central Avenue is a principal arterial street. Most of the development west of Shiloh Road with access to Central Avenue is rural residential neighborhoods that are still actively used for agricultural purposes. The average daily traffic count just west of Shiloh road is less than 6,500 trips per day. The 2016 West End Multi-Modal Traffic Study (city/County) indicated long-term projects for Central Avenue from Shiloh Road to 48th St West would include completion of a three-lane section (one lane each direction with a center turn lane) and a traffic control option (signal or roundabout) at 48th St W and Central Avenue. The existing conditions, according to the 2016 study, indicated a low level of service for traffic entering or leaving Central Avenue during peak hours between Shiloh Road and about 44th St West. The level of service is based on wait time for making safe left or right turns onto Central Avenue or off of Central Avenue. The south side of Central Avenue is on the list of arterial streets with a multi-use path on the south side of the right of way. There is no continuous city-controlled right of way on Central Avenue west of Shiloh. The developer will be required to contribute to the future construction of the multi-use path.   

7) Will the new zoning promote compatible urban growth?
The proposed overall development density is compatible with urban growth and the provision of city-level services for new residents. The proposed zone district boundaries are consistent with the urban growth in this area and will be compatible with the surrounding neighborhoods.

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 between Central Avenue and King Ave West is undergoing rapid urban development and growth. Demand for new housing choices, including townhomes and apartments, is increasing. Providing a wide range of housing types is suitable for this area.

9) Will the new zoning conserve the value of buildings?
The property is an undeveloped parcel. Approval of the zone change will provide certainty for surrounding landowners and may help to maintain property values of adjacent buildings.

10) Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zone change modification to the previous PND zoning will encourage the most appropriate use of this land in Billings.

Attachments