Zoning Commission is recommending approval and adoption of the findings of the 10 review criteria for Zone Change 1075, and approval of the variance from Section 27-802.B. the PND required separation from the CMU1 adjacent to Ag by a public street or alley.

Zone Change 1075 was initiated by City Council to amend Parks and open space (P1) to Corridor Mixed Use 1 (CMU1) on Lot 67A1, Amended Plat of Lots 66A and 67A Sunny Cove Fruit Farms (to be known as Homestead Acres), S31, T01 N, R25 E, .38 acres of a 27.152 acre parcel of land. Included in this request is a variance from Section 27-802.B.1(b) the PND required separation from the CMU1 adjacent to Agriculture (A) zones by a public street or alley to allow the CMU1 zone adjacent to the Agricultural zone without a street or alley, allowing the landscape buffering requirement for CMU zones as sufficient buffer between the two zones.

The subject property was recently part of the approved Zone Change 1070. Zone Change 1070 was approved on first reading of the ordinance on September 22, 2025. Second reading of the ordinance was approved on October 27, 2025. 
 

APPLICATION DATA
OWNER/DEVELOPER:	Brian Harvey
LEGAL DESCRIPTION:	Lot 67A1 of the Amended Plat of Lots 66A and 67A  Sunny Cove Fruit Farms (to be known as Homestead Acres)
CURRENT ZONING:	Corridor Mixed-use 1 (CMU1) and Parks and open space (P1)
EXISTING LAND USE:	Vacant
PROPOSED LAND USE:	Commercial
SIZE OF PARCEL/AREA:	Approximately .38 acres more or less

SURROUNDING LAND USE & ZONING:
NORTH Zoning:	Corridor Mixed-use 1 (CMU1) (adjacent interior to the development) N4-Large Lot Suburban Neighborhood & P1 – Parks and Open Space (outside of the development)
NORTH Land Use:	Vacant, Commercial/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, NMU - Neighborhood Mixed Use (outside of the development) & CMU 1 (adjacent interior to the development)
EAST Land Use:	Residential, Diamond X, Back 9, Bank
WEST Zoning:	A- Agriculture
WEST Land Use:	Vacant/Agriculture

Zoning Commission is forwarding a recommendation of approval and adoption of the findings for the 10 review criteria for Zone Change 1075 and approval of the variance from Section 27-802.B. the PND required separation from the CMU1 adjacent to Ag by a public street or alley. This zone change will amend the P1 strip on the southwest edge of the previously approved Zone Change 1070 PND-MU to a more appropriate zone of CMU1. The zone change and associated variance will allow for the property owner to develop to the boundary of their property and allow for the B3 landscape buffering between the CMU zone and the adjacent Ag zone per Section 27-1200 Table 27-1200.3. act as the sufficient buffering requirements.  The proposed zone change is compatible with nearby existing facilities and would not be overly intrusive to nearby property with the landscaping buffer provided.
 

Planning staff notified the surrounding owners, published a legal ad, and posted the property as required by the zoning regulations. At the time of writing this staff report, Planning staff had not received any correspondence on the proposed zone change from surrounding owners or any members of the public. 

ZONING COMMISSION PUBLIC HEARING DECEMBER 2, 2025
The Zoning Commission held a public hearing on December 2, 2025, where staff provided a brief presentation outlining the request. Staff also stated that the review criteria for a variance request is encompassed in the findings of the zone change, worded differently. For reference, staff has added the Variance Criteria per City Zoning Code Section 27-1627 to the Summary portion of this report. 

Based on the proposed findings related to the zone change review criteria, and incorporating findings of the variance criteria, Planning staff recommended approval of the application. Chairperson Dan Brooks opened the public hearing and invited the applicant's agent for the original Zone Change 1070 to speak.  John Halverson, Agent (Sanbell), said the applicant concurred with staff's recommendation.

There were no members of the public in attendance; no comments were received. 

Chairperson Brooks closed the public hearing.  A motion was made by Commissioner Megorden, seconded by Commissioner Mulveney, and passed by a 4-0 voice vote to forward a recommendation for approval and adoption of the proposed review criteria, and approval of the requested variance from Section 27-802.B regarding the PND-required separation from CMU1 adjacent to Agricultural zoning by a public street or alley.

Zoning Commission is recommending approval of the Zone Change and the Variance request. The following are options for the City Council's actions:

• Approval and adoption of the findings for the ten review criteria for Zone Change 1075, along with approval of the variance from Section 27-802.B regarding the PND-required separation from CMU1 adjacent to Agricultural zoning by a public street or alley; or
• Denial and adoption of alternative findings for the ten review criteria for Zone Change 1075, along with denial of the variance from Section 27-802.B regarding the PND-required separation from CMU1 adjacent to Agricultural zoning by a public street or alley; or
• Delay action on the zone change and variance request for up to 30 days.
• Allow withdrawal of the application (since this zone change was initiated by the City Council, any withdrawal would need to be requested by the Council itself)  
• Refer the application back to the zoning commission for an additional public hearing based on a determination that 1) new information has been submitted that the applicant and public has not had a reasonable opportunity to examine and comment on, or 2) new information has been presented that was never submitted or considered by the zoning commission or staff. A city council referral back to the zoning commission will require publication of a new legal ad, posting of the property and mailing to the surrounding property. A referral back to the commission under this section requires a sixty (60) percent majority vote of the present and voting members of the council and may only be done once by the city council.

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

Prior to any action, the City Council shall consider the following:

ZONE CHANGE CRITERIA (BMCC Section 27-1628.D.)
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:

• 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.

• 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 minor amendment to the PND by rezoning the .38 acre piece of P1 zone to CMU1 would not change the design of the development. 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 will be promoted by the proposed change and variance approval. Per Section 27-1200, Table 27-1200.3, a Type B3 landscape buffer is required between CMU zoning and adjacent Ag zoning and use of a single-family residence. The landscaping buffer is sufficient to address buffering needs, as it is expected the property to the west will eventually be annexed into the city. 

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The approved PND zoning and new development will increase traffic on the adjacent street network. Traffic impacts have been reviewed and evaluated with the approved PND and the subsequent subdivision.  Changing the .38 acre portion of P1 to CMU1 would not affect the transportation network. 

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. Changing the .38 acre portion of P1 to CMU1 would not affect the approved PND and the provisions of water and sewer to the property. 

Schools and Parks: Schools may be impacted by the proposed zone change as the proposed zone district is a commercial mixed-use zone district, and residential use is allowable within the zone. However, it is unlikely that residential use will occur as the developer has indicated a commercial use for the proposed lot within their traffic impact study which is being reviewed as part of the proposed subdivision. Parks should not be 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. Changing the .38 acre portion of P1 to CMU1 would not affect the Fire and Police services to the development.
 
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 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. Changing the .38 acre portion of P1 to CMU1 would not affect the provisions for adequate light and air. 

6. Will the new zoning affect motorized and non-motorized transportation?
The new zoning itself will not impact motorized and non-motorized transportation, as it is a continuation of the adjacent CMU1 onto the remainder of the property. Once the overall PND and subsequent subdivision are developed, there will be increased volume to the transportation network, both motorized and non-motorized. Traffic impacts have been reviewed and evaluated with the approved PND and the subsequent subdivision. Impacts identified within the Traffic Impact Study are typically mitigated using a proportionate share cash contribution or by construction of the improvements.  Changing the .38 acre portion of P1 to CMU1 would not affect the motorized and non-motorized transportation.

7. Will the new zoning promote compatible urban growth?
The proposed zoning does promote compatible urban growth by changing the P1 zone area to align with the CMU1 zone to the east of the .38 acre (20 foot wide) strip within the PND. The removal of the P1 zone allows for the developer to utilize the full extent of the property and avoid having a potentially unmaintained parkland strip. Type B3 landscape buffer is required between CMU zoning and adjacent Ag zoning, and this standard would adequately address buffering needs.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The approved PND and proposed zone change does consider the character of the district and the suitability of the property for the proposed use. 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. Allowing the P1 strip to change to the proposed CMU1, will align with the remainder of the parcel approved PND Zone Change 1070. 

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 on the parcel. Any new structures will need to be in compliance with zoning and building codes. Allowing for the zone change will potentially allow for future development of the property to utilize more of the proposed lot as the landscape buffer of B3 is 10 feet wide as opposed to the 20 feet wide P1 strip. 

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
Zone Change 1070 was approved as a Mixed Use Planned Neighborhood Development (MU-PND), which includes First Neighborhood Residential (N1), Mixed Residential 1 (NX1), Corridor Mixed-Use 1 (CMU1), and Parks and open space (P1) zoning districts. The property will be developed in accordance with the applicable zoning requirements. Similar land uses exist in the surrounding area, including the Granite Peak Townhomes zoned NX1, and nearby commercial developments such as Diamond X, Back 9, and Albertsons to the east, which are zoned CMU1 and CMU2. The proposed zoning within the PND is consistent with existing zoning patterns in the area, making it an appropriate use of the land. The proposed zone change of the .38 acre strip from P1 to CMU1 will further promote compatible development by aligning the site with the adjacent CMU1 zoning. Additionally, the requested variance from the required separation from an Agricultural zoning district by a street or alley will allow the required landscaping buffer yard to serve as an adequate separation between the two zones.

VARIANCE CRITERIA (BMCC 27-1627.D)
1. That special conditions and circumstances exist which are peculiar to the land, the lot or something inherent in the land which causes the hardship, and which are not applicable to other lands in the same district;  2. That a literal interpretation of the provisions of this Zoning Code would deprive the applicant of rights commonly enjoyed by other tracts in the same district; 
The variance would be supported under the provision of the zoning code.  The zone change and associated variance will allow for the property owner to develop to the boundary of their property and allow for the B3 landscape buffering between the CMU zone and the adjacent Ag zone per Section 27-1200 Table 27-1200.3. act as the sufficient buffering requirements.  The proposed zone change is compatible with nearby existing facilities and would not be overly intrusive to nearby property with the landscaping buffer provided.

3. That granting the variance requested will not confer on the applicant any special privilege that is denied by this Zoning Code to other land in the same district; 
There is no comparative property to justify that this would confer a special privilege.  

4. That the granting of the variance will be in harmony with the general purpose and intent of this Zoning Code and with the growth policies;
Per Criteria 1 in the Zone Change approval findings; the variance is in harmony with the Growth Policy -  Strong Neighborhoods; Prosperity and Essential Investments.

The Zoning Commission supports the variance request from Section 27-802.B, which requires Planned Neighborhood Development (PND) areas to be separated from CMU1 zoning by a public street or alley when adjacent to Agricultural (Ag) zoning. Requiring a street or alley separation is not ideal in this location and there is no plan to include another connection of a street or alley off of Grand Avenue when they already have access from Grand on the easterly side of the subdivision.   The 20-foot-wide P1 zone between the CMU1 and Ag district is not a desirable separation. The intent for buffering is already a requirement within our zoning regulations. Per Section 27-1200, Table 27-1200.3, a Type B3 landscape buffer is required between CMU zoning and adjacent Ag zoning, and this standard would adequately address buffering needs. The proposed P1 strip, however, would likely result in an unusable area of land, whereas applying the B3 landscape buffer would meet the intent of the code and provide appropriate screening between the CMU1 district and the adjacent agricultural use.