The Zoning Commission held a public hearing on November 4, 2025, and is forwarding a recommendation of approval and adoption of the findings of the 10 review criteria for Zone Change 1073.

Zone Change 1073 is a zone change request from Rural Residential 3 (RR3), a county zoning district, to Corridor Mixed Use 1 and 2 (CMU1 & CMU2) on Lot 7 of Sunny Cove Fruit Farms, an approximate 8.95 acre parcel of land. This application is being submitted with a concurrent annexation petition. A pre-application neighborhood meeting was held on September 23, 2025 at 5:30 pm, at Grace Montessori, 4809 Grand Ave.

The proposed zoning of CMU 1 and 2 would facilitate mixed commercial development. The CMU1 district is intended to accommodate commercial and other uses along transportation corridors to promote development that is comfortably accessible via all modes of transportation, including motor vehicles, bicycles, and walking. Commercial uses in the CMU1 district may be somewhat larger in scale and more flexible than the neighborhood mixed-use district, including more auto-oriented uses such as gas stations. While ground stories along streets are intended for commercial uses, any story could accommodate residential and/or office uses.  CMU2 district is similar in intent to CMU1, supporting commercial and any story residential and/or office use along transportation corridors. However, CMU2 differs from CMU1 as it is meant to accommodate larger-scale commercial, warehouse-style buildings, and other uses in multiple buildings on larger, deeper parcels along corridors.

This property is within the City of Billings' (City) Limits of Annexation Area Zone 1, allowing a petition for annexation.  The land around the subject property is currently used for farming activity, fallow land, and residential uses. Parcels adjacent to the west and east are annexed into the City. Existing within Rimrock Rd at the property's frontage is a 20" water main and 24" sewer main. Heading west on Rimrock is Signal Peak Townhomes and Copper Ridge. 

The proposed zoning complies with the 2016 City of Billings Growth Policy, which identifies three growth scenarios for the Billings West End, High Density Growth Scenario, Low Density Growth Scenario, and Preferred Growth Scenario. In all three of these scenarios, the area surrounding the intersection of Rimrock Road and 62nd Street West included commercially zoned districts. The West Billings Neighborhood Plan identified the public desire to limit larger community commercial centers to appropriate intersections of arterial streets. Commercial centers should be compatible with the surrounding area and designed to serve the overall West Billings community.  These commercial nodes may vary in size based on special circumstances such as topography and adjacent uses. Rimrock Road is identified as an arterial street.  Additionally, the roundabout at 62nd Street and Rimrock Road recently completed construction. 

The adjacent property, Tule Ridge Subdivision, to the west is zoned Corridor Mixed Use 1. Nearby northwest of the intersection of Highway 3 and Rimrock Rd., Coal Creek Subdivision contains some parcels zoned Corridor Mixed Use 2. The proposed zoning of this property as a mix of Corridor Mixed Use 1 and Corridor Mixed Use 2 creates a commercial node in the West Billings area. The nearest commercial node being at 54th and Grand Avenue. The West End Plan also states that large commercial nodes should be no closer than 1 mile apart. This proposed rezone is approximately 2 miles from the 54th and Grand intersection, further complying with the growth policy. 

Planning Staff recommended approval based on the compatibility of location, and adjacent zoning. The proposed zoning is in conformance with both the 2016 Growth Policy and the West Billings Neighborhood Plan. 

City Zoning Commission held their public hearing on November 2, 2025, and is forwarding a recommendation of approval based on the proposed findings of the review criteria within the Summary section of this report. 
 

APPLICATION DATA
APPLICANT:	LMO Investments, LLC
AGENT:	Taylor Kasperick, Performance Engineering
LEGAL DESCRIPTION:	Lot 7, Sunny Cove Fruit Farm
ADDRESS:	N/A
CURRENT ZONING:	RR3
PROPOSED ZONING:	CMU1 & CMU2
EXISTING LAND USE:	Agriculture/Vacant
PROPOSED LAND USE:	Commercial Mixed Use
SIZE OF PARCEL(S):	8.95 acres

 

SURROUNDING LAND USE & ZONING:
NORTH Zoning:	Large Lot Suburban Neighborhood - N4
NORTH Land Use:	Vacant /Ag- Residential
SOUTH Zoning:	RR3
SOUTH Land Use:	Vacant/Ag
EAST Zoning:	Suburban Neighborhood - N3
EAST Land Use:	Residential
WEST Zoning:	Corridor Mixed Use 1 - CMU1
WEST Land Use:	Vacant

Planning staff provided public notice of the application in accordance with zoning regulations, including notification to surrounding property owners, publication of a legal advertisement, and posting of the subject property. As of the date of this report, no written correspondence has been received from surrounding property owners regarding the proposed zone change.

The applicant conducted a pre-application neighborhood meeting on September 23, 2025, at 5:30 p.m. at Grace Montessori Academy, located at 4809 Grand Avenue. Nine individuals signed the attendance sheet. Discussion topics included the types of uses permitted under the proposed zoning, potential impacts to existing irrigation ditches and groundwater, stormwater runoff and retention, site access, and anticipated traffic. Meeting notes, a detailed summary of the discussion, and the attendance sheet are attached.

ZONING COMMISSION PUBLIC HEARING NOVEMBER 4, 2025
The Zoning Commission held a public hearing on November 4, 2025, where staff provided a brief presentation outlining the request. Based on the proposed findings related to the zone change review criteria, Planning staff recommended approval of the application. Chairperson Dan Brooks opened the public hearing and invited the applicant's agent to speak.

Craig Dalton, agent for the applicant, concurred with staff's recommendation and findings of the review criteria. He said the site is located near the intersection of 62nd Street West and Rimrock Road, identified in the West Billings Plan as a preferred location for neighborhood commercial and community convenience uses and the proposed zone change would support the development of small-scale retail, office, and entertainment uses serving the surrounding residential areas. Due to floodplain constraints and existing detention ponds, other corners of this intersection are limited for commercial use. The applicant’s proposal would therefore help introduce essential neighborhood services to an area that currently lacks nearby commercial amenities. The proposed CMU2 area in the southwest corner of the property is intended for an indoor recreational facility such as pickleball courts, requiring the more intensive CMU2 classification to accommodate the larger building footprint and outdoor recreation component.

Two surrounding property owners spoke in opposition to Zone Change 1073. Primary concerns involved increased traffic on Rimrock Road (particularly between 50th and 60th Streets), pedestrian and bicycle safety due to lack of shoulders, and potential impacts on emergency response access. 

Staff clarified that the City is planning Rimrock Road widening improvements between fiscal years 2027 and 2029, with design and engineering under review, but did not have a timeline for completion.

Mr. Dalton was offered an opportunity for rebuttal and added that the proposed zoning meets the intent of the City of Billings Growth Policy by promoting strong neighborhoods, essential investments, and prosperity. It is compatible with adjacent and nearby land uses and zoning districts. He said it would help reduce long vehicle trips by providing services closer to residential neighborhoods. Any development producing more than 1,000 daily trips or 100 peak-hour trips will require a Traffic Impact Study (TIS) and proportional contributions toward roadway and intersection improvements during the subdivision process. The project will comply with city standards for buffering between commercial and residential districts. 

Chairmerson Brooks closed the public hearing.  A motion was made by Commissioner McCall, seconded by Commissioner Megorden, and passed by a 4-0 voice vote to forward a recommendation for approval and adoption of the proposed review criteria.
 

The City Council may take one of the following actions:

• Approve and adopt the findings of the ten review criteria for Zone Change 1073; or,
• Deny and adopt different findings of the ten review criteria for Zone Change 1073; 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

The applicant has not asked to delay or withdraw the application as of the drafting of this memo.

Approval or denial of the proposed zone change will not have a financial impact on the Planning Division budget.

Before making a decision, 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 and neighborhood plans?
The proposed zone change is consistent with the following guidelines of the 2016 Growth Policy:

• 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.

• 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. There will be new fire hydrants located an adequate distance throughout the interior of the development with spacing at the approval of the City of Billings Fire Marshal meeting all City of Billings Fire Codes. These new hydrants will be in addition to the existing hydrants located along Rimrock Road and 62nd Street West, north and west of the proposed zone change. This ensures that any business that may be in this subdivision is adequately secure from fire. This site is also located outside of the floodplain, per LOMR 22_08_0233P in effect on March 23, 2023. 

3. Whether the new zoning will promote public health, public safety, and general welfare?
New construction on the site will follow building code requirements to ensure and promote public health, public safety, and general welfare.  The proposed zone change will create a commercial mixed-use district in an area lacking existing commercial development. While the nearby Coal Creek subdivision at Highway 3 and Rimrock, as well as the adjacent Tule Ridge Subdivision, both have commercial mixed-use zoning designations of Corridor Mixed Use 2 and Corridor Mixed Use 1, respectively, neither development has submitted a building permit as of the writing of this report. The subject property is proposed to be subdivided by the developer. As part of the subdivision process, a Traffic Impact Study (TIS) will be required if the proposed development will generate more than 100 peak-hour trips or 1,000 trips per day. If the TIS is required, intersections identified to be impacted will require a proportionate share contribution.  These contributions would be put towards projects that would help ease traffic flow in the area and enhance traffic control at the intersections, creating safer roadways for drivers and pedestrians. 

The zoning application is concurrent with a petition for annexation. Rimrock Road currently has a 20" water main and 24" sewer main. The use of adjacent City utility services promotes public health and general welfare. 

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation:
The proposed zoning and new development will increase traffic on the adjacent street network. Similar to criteria 3, as part of the subdivision process, a TIS will be required if the proposed development will generate more than 100 peak-hour trips or 1,000 trips per day. The TIS will help identify intersections that would be affected by the development and would then require the developer to pay a proportionate share contribution towards the intersection for improvement. These contributions would be put towards projects that would help ease traffic flow in the area and enhance traffic control at the intersections, creating safer roadways for drivers and pedestrians. The City is working on plans to widen Rimrock Road to three lanes, which will help mitigate existing traffic concerns. As part of annexation and development, it is anticipated the owner will be required to contribute to the cost of this project. 

Water and Sewer:
The City will provide water and sewer services to the property.  As part of this project, water and sanitary sewer mains will be extended throughout the property with existing water and sewer mains currently within Rimrock Road. The proposed zoning facilitates the development of a lot that has two adjacent lots annexed into the City. 

Schools and Parks:
Schools may be impacted by the proposed zoning, as both CMU1 and CMU2 allow for residential use; however, the developer is proposing to use the lots for commercial purposes. Parks should not be negatively affected by the proposed zoning, as all new subdivisions with residential development are required to join a park maintenance district. Since this development is proposed to be commercial, the impact on parks is expected to be minimal.

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 1.7 road miles away. New fire hydrants will be provided throughout the development in accordance with Building and Fire Codes. 
 
5. Will the new zoning provide adequate light and air?
Similar to Criteria 2 and 3, the proposed zone requires build to zones, side and rear setbacks, and adequate separation between structures, which provides for 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. Additionally, when abutting an neighborhood zoning larger setbacks are required to provide transition between uses. 

6. Will the new zoning affect motorized and non-motorized transportation?
The new zoning itself will not impact motorized and non-motorized transportation. The proposed zoning and subsequent new development will increase traffic on the adjacent street network. Similar to criteria 3 and 4, as part of the subdivision process, a TIS (TIS) may be required. The TIS will help identify intersections that would be affected by the development and would then require the developer to pay contributions towards the intersection for improvement. These contributions would be put towards projects that would help ease traffic flow in the area and enhance traffic control at the intersections. 

7. Will the new zoning promote compatible urban growth?
The proposed zoning does promote compatible urban growth. Directly east of the subject property is N3 zoning, and it has a single-family residential dwelling. The N3 zoning allows for single-family homes or duplexes. The property to the south is currently Rural Residential 3 (RR3) and is a vacant parcel of land. When the subject property is developed it will be required to have the minimum bufferyard specified for adjacent residential uses.  The proposed CMU1 and CMU2 zone districts are compatible with the subdivision to the west in the CMU1 zone district. The City Growth Policy proposes commercial districts along principal arterials which is beneficial for both commercial businesses and provides services for residential areas. Keeping commercial traffic off of local residential streets and on high traffic volume arterial streets additionally helps with the urban growth in the area.

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 proposed uses. 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.  Possible uses include residential single and multifamily as well as commercial uses including but not limited to schools, health care facilities, amusement/recreation facilities, small animal veterinary clinics, restaurants and retail stores.  The proximity of the zoning to an arterial intersection and the alignment with the 2016 Growth Policy and West Billings Plan encourages the character of the district. 

9. Will the new zoning conserve the value of buildings?
The property and surrounding properties are currently vacant. 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?
Similar to Criteria 8, 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.  Possible uses include residential single and multifamily as well as commercial uses including but not limited to schools, health care facilities, amusement/recreation facilities, small animal veterinary clinics, restaurants and retail stores.  The proximity of the zoning to an arterial intersection and the alignment with the 2016 Growth Policy and West Billings Plan encourages an appropriate use of the land.