Planning staff is recommending approval of the requested zone change and adoption of the findings of the 11 criteria for Zone Change 732.

County Zone Change 732 is a request to amend the zoning designation from Agricultural (A), which requires parcels of ten acres or more, to Rural Residential 3 (RR3), which allows parcel sizes ranging from three acres up to 9.99 acres. The request applies to Tracts 1-13, Certificate of Survey (COS) 3420 located in Section 09, Township 1 North, Range 25 East, comprising approximately 236.82 acres.

The property has undergone several survey actions. The original COS 1627 was recorded on January 13, 1977 (Doc. No. 1039386), with an amendment recorded on May 27, 1999 (Doc. No. 3052530). The current COS 3420 was completed and recorded on January 7, 2010 (Doc. No. 3536855). To the south, the Lone Eagle Subdivision was recorded in multiple phases: the 1st filing on April 12, 1996 (Doc. No. 1824255); the 2nd filing on September 12, 1997 (Doc. No. 1889893); the 3rd filing on July 6, 2000 (Doc. No. 3095822); the 4th filing on August 29, 2000 (Doc. No. 3101145); and the 5th filing on June 18, 2001 (Doc. No. 3133904). All lots within the Lone Eagle Subdivision are developed with lots from 10 to 20+ acres with single-family dwellings that include some small-scale agricultural uses.

The subject property is located at the border of the county's zoning jurisdictional boundary. The broader area north of Billings consists of a mix of rural residential properties and larger agricultural tracts used primarily for dry-land farming and grazing. Adjacent zoning includes Agricultural (A) to the northeast and unzoned land within the Hiaring Subdivision to the northwest, where parcels of up to 15 acres are developed predominantly for large-lot residential use with some associated agricultural activity.

The proposed zone change is intended to support the development of a new rural residential subdivision. Under the current Agricultural zoning, residential development is limited to parcels of at least ten acres, with residential use intended as an accessory to primary agricultural activities. The subject property, located along the northwest edge of the county’s zoning jurisdiction, currently consists of 13 parcels ranging from approximately 13.7 acres to over 30 acres.

The applicant proposes to reconfigure these parcels into the proposed Lone Eagle North Subdivision, to be reviewed concurrently with this zone change. The subdivision would create approximately 28 (number of lots still pending preliminary plat approval of subdivision) rural residential lots proposed with lot sizes ranging from approximately 5.61 to 9.98 acres.  The proposed subdivision additionally contains two private parks—one totaling 10.18 acres and the other 20.57 acres.

APPLICATION DATA

OWNER: Robert Arensberg
AGENT: Greg Reid, WWC Engineering
LEGAL DESCRIPTION: Tracts 1-13, C.O.S. 3420, S09, T01 N, R25E
ADDRESS: Not applicable. No address has been assigned.
CURRENT ZONING: A - Agriculture
EXISTING LAND USE: Vacant
PROPOSED USE: Rural Residential 3-9.99 acres.
SIZE OF PARCEL: 236.82 acre total

CONCURRENT APPLICATIONS
Lone Eagle North Subdivision

SURROUNDING LAND USE AND ZONING

NORTH:	Zoning: A and unzoned Land Use: Low Density Residential and Agriculture
SOUTH:	Zoning: A Land Use: Low Density Residential and Agriculture
EAST:	Zoning: A  Land Use: Low Density Residential and Agriculture
WEST:	Zoning: A Land Use: Agriculture

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 held a pre-application neighborhood meeting on October 8, 2025, at the subject property. Two members of the public attended. Topics discussed included the location of the existing oil pipeline, potential road connection to the Lone Eagle Subdivision to the south, and whether the proposed subdivision would establish a Homeowners Association with restrictions similar to those in the Lone Eagle Subdivision. Meeting notes and a detailed summary of the discussion are provided in the attachments.

The Yellowstone County Consolidated Zoning Commission may:

• Recommend approval and adoption of the findings of the eleven review criteria for the Zone Change; or,
• Recommend denial and adopt different findings of the eleven review criteria for the Zone Change; or,
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the zone change request. The applicant has not requested the Commission consider withdrawal of the application.

Approval or denial of the proposed zone change will have no fiscal effects on the Planning Division budget.

The Yellowstone County Consolidated Zoning Commission, prior to any recommendation, shall consider the following: 

1. Is the new zoning designed in accordance with the Yellowstone County 2008 Growth Policy? 
Goal: Predictable land use decisions that are consistent with neighborhood character and preferred land use patterns identified in neighborhood plans. 
This portion of the county contains a mix of agricultural operations and low-density residential neighborhoods. Adjacent parcels to the northwest are unzoned and developed with large-acreage tracts containing single-family homes. The broader area to the northeast includes a combination of rural residential properties and larger agricultural parcels primarily used for dry-land farming and grazing. The Lone Eagle Subdivision to the south is developed with 10- to 20-acre lots that support single-family dwellings and small-scale agricultural activities.
The proposed zone change would allow a similar development pattern but at a smaller scale, with lots proposed to range from approximately 5 acres to just under 10 acres. This configuration aligns with the Growth Policy’s goal of supporting predictable land-use decisions that are consistent with existing neighborhood character and with the preferred land-use patterns identified in adopted neighborhood plans.  
Goal: New developments that are sensitive to and compatible with the character of adjacent development. 
The subject property is surrounded by a mix of agricultural operations and large-lot, low-density rural residential uses. The intended RR3 district is compatible with both the existing development pattern and the surrounding agricultural and residential zoning. The proposed zone change would allow a similar development pattern at a smaller scale, with lots ranging from approximately 3 acres to just under 10 acres, consistent with the established character of adjacent properties.

2. Is the new zoning designed to secure from fire and other danger? 
The concurrent Lone Eagle North Subdivision plan requires construction of two new 30,000 gallon dry hydrants.  The Lone Eagle North Subdivision has also been reviewed by the local fire protection district to ensure adequate emergency access and roadway design. The dry hydrants are planned within the subdivision to provide a dependable water source for firefighting and to enhance overall fire protection for future residents. The location and design of the hydrant will be reviewed and approved by the appropriate fire authority to ensure compliance with applicable fire safety requirements.  The existing and proposed zoning requires building separations, setbacks, and height limits that should provide security from fire or other public safety emergencies. These siting requirements are found in Table 27-300-4. 

3. Will the new zoning facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements? 
Transportation: Development under the new zoning will increase traffic on Alkali Creek Rd. The subdivision review required a Traffic Impact Study (TIS) and resulted with no additional turn lanes, intersection improvements, or other improvements. The level of traffic increase will be dependent on the development of the proposed zoned parcel. Generally, each additional dwelling will create approximately 10 new vehicle trips per day. The subdivision design will also accommodate nonmotorized transportation by including roadway shoulders, consistent with Yellowstone County standards.  
Water and Sewerage: The property will be served by septic systems and on-site water (cisterns or wells). The city of Billings' public utilities are not available and are not intended to be extended to this area in the near future. Stormwater management plans are required during subdivision review, ensuring compliance with Yellowstone County and Montana Department of Environmental Quality (MDEQ) standards and maintaining environmental quality and public health safeguards for future residents. 
Fire and Police: The subject property is serviced by the Yellowstone County Sheriff's Department. Fire protection will be serviced by the Fuego Volunteer Fire station, which is approximately 4 miles northwest of the subject property off of Hwy 3.  The dry hydrants are planned within the subdivision to provide a dependable water source for firefighting and to enhance overall fire protection for future residents. The Sheriff's office and Fire Department were notified by staff, and at the time this report was submitted, no comments were received.
Schools and Parks: The site is located within an established school district (School District 2), and nearby schools already serve the surrounding residential area. The additional homes are 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 school district was notified by staff, and had not responded at the time this staff report was submitted. The application does not propose removing any dedicated park space and new private parks are included in the overall subdivision plan.

4. Will the new zoning promote health and general welfare?
Similar to Criteria 2 and 3 above, the zoning itself is not expected to have a negative effect on the health and general welfare of the area. County zoning regulations require minimum setbacks from property lines, separation of buildings, and restrict uses so compatibility is maintained with adjacent property. This is not unique to the rural residential zones, but is promoted by all districts. 

5. Will the new zoning provide adequate light and air?
The proposed zoning will require minimum setbacks, maximum building heights and maximum lot coverage. These requirements, found in Table 27-300-4, allow adequate light and air to reach the subject property and adjacent properties.

6. Will the new zoning affect motorized and non-motorized transportation?
Consistent with Criteria 3, the proposed zoning change itself will not directly increase traffic on adjacent county roads. Future acreage-tract residential development will generate additional traffic on Alkali Creek Road; however, the proposed subdivision associated with the zone change will facilitate improved transportation access by extending new subdivision roads to connect with the existing county roadway network near Alkali Creek Road. These connections will enhance safe and efficient travel for residents and emergency responders.   The subdivision is designed to support non-motorized transportation through the inclusion of roadway shoulders consistent with Yellowstone County standards. A Traffic Impact Study (TIS) was completed as part of the subdivision review and determined that no additional turn lanes, intersection improvements, or roadway improvements are required at this time. Traffic volumes will ultimately depend on the level of development within the proposed zoning district. As a general estimate, each new dwelling unit is expected to generate approximately 10 daily vehicle trips.

7. Will the new zoning be compatible with urban growth in the vicinity?
This area of the county is not influenced by urban growth, and the existing development pattern consists primarily of rural residential and agricultural uses. The proposed RR3 zoning and associated development are consistent with the established residential growth in the area. The RR3 designation supports low-density housing that complements existing rural subdivisions in the Alkali Creek area while preserving open space and maintaining the area’s rural character. This zoning promotes an orderly and appropriate development pattern aligned with Yellowstone County’s long-range growth objectives.

8. Does the new zoning consider the character of the district and the suitability of the property for particular uses?
The subject property is located within an area characterized by acreage-tract residential subdivisions and agricultural uses. The RR3 zone district is compatible with these surrounding land uses. The proposed development will also incorporate Covenants Conditions and Restrictions (CCRs) that restrict housing to single-family residences, further supporting and preserving the character of the neighborhood. The property is well-suited for the intended use due to its proximity to established rural residential development and its compatibility with existing land-use patterns.

9. Will the new zoning conserve the value of buildings?
The new zoning itself is not expected to alter the value of any buildings in the area. Valuations are typically based on improvements to the individual properties themselves. The new zoning will allow the development of new residential uses adjacent to agricultural and residential uses. The new residential uses should have no impact on surrounding properties. Any development of the property will need to meet the site development requirements in the zoning code, including landscaping, building heights and setbacks.

10. Will the new zoning encourage the most appropriate use of land in Yellowstone County?
The proposed RR3 zoning supports appropriate land uses, including residential development with limited accessory agricultural activities. The property is well-suited for RR3 residential development, and the designation represents an appropriate use of land within this portion of the county. The zone change will help facilitate compatible growth patterns and will align with the surrounding mix of residential parcels and agricultural lands.

11. Will the new zoning be as compatible as possible with adjacent zoning in the City of Billings?
The proposed zoning is not close to the City limits of Billings.