Regular 4.
City Council Regular Business Meeting
- Meeting Date:
- 03/23/2026
- TITLE
- City Zone Change 1076- 715 Commerce Way- P1 to P2
- PRESENTED BY:
- Karen Husman
- Department:
- Planning & Community Services
Presentation:
Yes
Legal Review:
Yes
Project Number:
PZX-26-00007
RECOMMENDATION
City Zoning Commission is recommending approval of Zone Change 1076 and adoption of the findings of the 10 review criteria.
EXECUTIVE SUMMARY
The City of Billings has initiated a zone change for Amend Park from Parks and Open Space (P1) to Public, Civic, and Institutional (P2) to support operation of a restaurant, including alcohol service, within the new Signal Peak Ice Arena. The proposed change enables accessory uses not permitted in P1 zoning while remaining consistent with recreational uses allowed in the P2 district.
The ice arena and its restaurant use will enhance Amend Park, expand recreational opportunities, and contribute to local employment and economic activity. The zone change aligns with the City’s Growth Policy by supporting appropriate neighborhood character, walkable community amenities, and efficient use of existing infrastructure. The request for a Public 2 zone is also supported by the goals of the Growth Policy to expand and create partnerships that support community services. Actions that support community investments will attract and retain a strong, skilled, and diverse workforce. The proposed zoning on the subject parcel is compatible with the adjacent zoning and land uses.
The Zoning Commission finds the request compatible with surrounding zoning and land uses and recommends approval based on the applicable review criteria.
The ice arena and its restaurant use will enhance Amend Park, expand recreational opportunities, and contribute to local employment and economic activity. The zone change aligns with the City’s Growth Policy by supporting appropriate neighborhood character, walkable community amenities, and efficient use of existing infrastructure. The request for a Public 2 zone is also supported by the goals of the Growth Policy to expand and create partnerships that support community services. Actions that support community investments will attract and retain a strong, skilled, and diverse workforce. The proposed zoning on the subject parcel is compatible with the adjacent zoning and land uses.
The Zoning Commission finds the request compatible with surrounding zoning and land uses and recommends approval based on the applicable review criteria.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings has initiated a zone change for the City’s Amend Park from Parks and Open Space (P1) to Public, Civic, and Institutional (P2), to facilitate the operation of a new restaurant, including the sale of alcoholic beverages, inside the new ice skating center. The development of the new Signal Peak Ice Arena will provide a recreational facility that enhances Amend Park and supports the City’s broader community and economic development goals. The Growth Policy identifies varying levels of neighborhood character, and the proposed zone change is consistent with the type of development envisioned for this area.
The property is currently zoned P1, which does not permit a restaurant with alcohol service. In contrast, the P2 zoning district allows recreational facilities with accessory uses such as a restaurant and/or concession stand, including the on-site sale of craft alcohol. The proposed zone change would therefore allow uses that are compatible with and supportive of the ice arena and other recreational uses in the Amend Recreation Campus while remaining consistent with similar recreational zoning districts.
In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
Before the code update in 2021, the city only had one zoning district for parks, schools, churches, airports, landfills or public and institutional uses. This zone - Public - was expanded into three separate public zone districts to make the potential uses predictable for surrounding property owners. For example, now most churches and schools are in the Public 2 (P2) zoning district and campuses such as MSUB, and the hospital area are in Public 3 (P3 - Campus - Education, Medical, or Civic). Public zoned land can either be publicly owned or privately owned. Public 1 (P1) zoning is specifically for parks and open space areas. P1 zoning can have buildings and structures that are focused on the primary use of the park or open space area. P2 zoning can also have recreational uses like those in the P1 district.
The request for a Public 2 (P2) zone is supported by the goals of the Growth Policy, which emphasizes strategic growth, with essential investments, and aims to promote development utilizing existing City infrastructure. The request for a Public 2 zone is also supported by the goals of the Growth Policy to expand and create partnerships that support community services. Actions that support community investments will attract and retain a strong, skilled, and diverse workforce. The proposed zoning on the subject parcel is compatible with the adjacent zoning and land uses.
APPLICATION DATA
OWNER: City of Billings
AGENT: Gavin Woltjer, (City Parks Dept.) & Karen Husman (City Planning Div.)
LEGAL DESCRIPTION: Tract 1, C.O.S. 2783, Lot 3A-4, and Lot 3A-5, Block 1, Popelka Commerce Center Subdivision, Second Filing, and Lot 3A-1A, Block 1, of Amended Plat of Lots 3A-1 and 3A-3, Block 1, Commerce Center Subdivision, Second Filing, S08, T01 S, R26 E
ADDRESS: 715 Commerce Way
CURRENT ZONING: Public 1 (P1- Parks and Open Space)
PROPOSED ZONING: Public 2 (P2-Public, civic and institutions)
EXISTING LAND USE: Parks and open space
PROPOSED LAND USE: Recreational facility including an indoor ice arena and an indoor basketball court facility.
SIZE OF PARCEL(S): 67.307 acre parcel of land.
SURROUNDING LAND USE & ZONING:
NORTH: Zoning:Light Industrial (I1), Civic Campus (P3),Corridor Mixed Use 2 (CMU2), Mid-Century Neighborhood (N2), Residential Manufactured Home (RMH)
Land Use: Mountain Supply, S & S Machine, Randash Auto, Public, MDT Offices, American Home Centers, Single Family Residential, and Manufactured Home Park
SOUTH: Zoning: Corridor Mixed Use 1 (CMU1), Corridor Mixed Use 2 (CMU2)
Land use: Several food service establishments, Montana Dakota Utilities office, BLM Field office, Ledgestone Suites Hotel
EAST: Zoning: Corridor Mixed Use 1 (CMU1), Public Institution (P2), Mid-Century Neighborhood (N2), RMH
Land use: Retail mattress store, Newman School, Single Family Residential, & Circle K gas station/convenience store, mobile home park
WEST: Zoning: Mid-Century Neighborhood (N2), Corridor Mixed Use 2 (CMU2)
Land Use: Residential
SUMMARY
Prior to taking action, the City Council shall consider 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:
The property is currently zoned P1, which does not permit a restaurant with alcohol service. In contrast, the P2 zoning district allows recreational facilities with accessory uses such as a restaurant and/or concession stand, including the on-site sale of craft alcohol. The proposed zone change would therefore allow uses that are compatible with and supportive of the ice arena while remaining consistent with similar recreational zoning districts.
In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
2. Is the new zoning designed to secure from fire and other dangers?
The new zoning requires setbacks, open and landscaped areas, and building separations. The Public 2 zoning considers the surrounding zoning for siting of buildings and building characteristics. The new zoning, as do all zoning districts, provides adequate building separations to provide security from fire and other dangers. The new construction on the site is following applicable building codes, engineering standards for storm water control, connection to city services and parking lot construction. All zoning requirements will be followed.
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 engineering code, building code, and zoning code requirements to ensure and promote public health, public safety and general welfare. In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The proposed zoning itself will not affect traffic, however the new recreational facility with an internal restaurant will increase traffic on the adjacent street network when the development is completed. City Engineering will review the development to determine required traffic management. King Avenue East is a minor arterial and South Billings Boulevard is principal arterial.
Water and Sewer: The City will provide water and sewer for the property through existing water and sewer mains in Commerce Way.
Schools and Parks: Schools and parks should not be negatively affected by the proposed zoning. The proposed development does not include residential uses. Therefore, additional students due to this zone change would not be anticipated. It should be acknowledged that with new jobs in the community, the school district may realize some increase in the student population. However, the zone change does not have a direct correlation to this potential increase.
Fire and Police: The subject property is served by city public safety services. Development of the property, regardless of the zoning, will be served by existing police and fire services. The Police and Fire Departments had no concerns with the zone change as requirements for access, water supply, and fire codes would apply to the site and any construction on the subject property.
5. Will the new zoning provide adequate light and air?
Similar to criteria 2 and 3, the proposed zone, like all zones, requires setbacks to allow for adequate separation between structures and adequate light and air. New construction is required to comply with zoning standards outlined in Section 27-500 (Public zones), as well as engineering and building code requirements. These standards are designed to maintain appropriate spacing between buildings, ensuring that the development allows for ample light, air, and overall environmental quality.
6. Will the new zoning effect motorized and non-motorized transportation?
The rezoning of the property from P1 to P2 to allow an internal restaurant may increase motorized traffic in the area. Any additional traffic mitigation measures that are necessary will be evaluated at the time of building permit.
7. Will the new zoning promote compatible urban growth?
The proposed zoning is compatible with adjacent zoning designations and existing land uses in the surrounding area. The zone change is consistent with similar public and recreational uses and supports orderly growth by allowing expansion of recreational amenities within Amend Park. In addition to enhancing recreational opportunities, the ice arena will generate employment within the city limits and contribute to local economic activity. The proposed facility advances goals for community prosperity and aligns with Growth Policy objectives that encourage walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, thereby supporting public health and overall community well-being.
8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning considers the character of the district and the suitability of the property for the intended use. The proposed zoning and associated development are compatible with adjacent zoning designations and existing land uses in the surrounding area. The zone change is consistent with similar public and recreational uses and supports orderly growth by allowing expansion of recreational amenities within Amend Park. In addition to enhancing recreational opportunities, the ice arena will generate employment within the city limits and contribute to local economic activity.
9. Will the new zoning conserve the value of buildings?
The subject property was purchased by the City for the express purpose of building a recreation campus for the community and region. The property is directly adjacent to Amend Park, a regional soccer and lacrosse public recreation complex. Accordingly, the proposed zone change is not expected to adversely affect the value of any existing buildings on the parcel, as no principal structures were present prior to development. The ice arena and basketball court structures currently under construction have been reviewed and approved by the City and are compliant with all applicable zoning, engineering, and building code requirements. Any future development associated with the proposed zoning will similarly be required to meet all applicable standards, ensuring that new structures are appropriately designed, sited, and constructed in a manner consistent with public safety and compatible with surrounding land uses.
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The Public, Civic, and Institutional, small (P2) zoning district is the most appropriate designation for the subject property. The City intends to develop the site in accordance with all applicable zoning requirements. The property’s current use as a public park and soccer field and accessory restaurant use is consistent with similar public and recreational uses permitted in the P2 district. The proposed zone change supports orderly growth by allowing for the continued use and expansion of recreational amenities within Amend Park and is appropriate given the property’s location and surrounding land uses.
The property is currently zoned P1, which does not permit a restaurant with alcohol service. In contrast, the P2 zoning district allows recreational facilities with accessory uses such as a restaurant and/or concession stand, including the on-site sale of craft alcohol. The proposed zone change would therefore allow uses that are compatible with and supportive of the ice arena and other recreational uses in the Amend Recreation Campus while remaining consistent with similar recreational zoning districts.
In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
Before the code update in 2021, the city only had one zoning district for parks, schools, churches, airports, landfills or public and institutional uses. This zone - Public - was expanded into three separate public zone districts to make the potential uses predictable for surrounding property owners. For example, now most churches and schools are in the Public 2 (P2) zoning district and campuses such as MSUB, and the hospital area are in Public 3 (P3 - Campus - Education, Medical, or Civic). Public zoned land can either be publicly owned or privately owned. Public 1 (P1) zoning is specifically for parks and open space areas. P1 zoning can have buildings and structures that are focused on the primary use of the park or open space area. P2 zoning can also have recreational uses like those in the P1 district.
The request for a Public 2 (P2) zone is supported by the goals of the Growth Policy, which emphasizes strategic growth, with essential investments, and aims to promote development utilizing existing City infrastructure. The request for a Public 2 zone is also supported by the goals of the Growth Policy to expand and create partnerships that support community services. Actions that support community investments will attract and retain a strong, skilled, and diverse workforce. The proposed zoning on the subject parcel is compatible with the adjacent zoning and land uses.
APPLICATION DATA
OWNER: City of Billings
AGENT: Gavin Woltjer, (City Parks Dept.) & Karen Husman (City Planning Div.)
LEGAL DESCRIPTION: Tract 1, C.O.S. 2783, Lot 3A-4, and Lot 3A-5, Block 1, Popelka Commerce Center Subdivision, Second Filing, and Lot 3A-1A, Block 1, of Amended Plat of Lots 3A-1 and 3A-3, Block 1, Commerce Center Subdivision, Second Filing, S08, T01 S, R26 E
ADDRESS: 715 Commerce Way
CURRENT ZONING: Public 1 (P1- Parks and Open Space)
PROPOSED ZONING: Public 2 (P2-Public, civic and institutions)
EXISTING LAND USE: Parks and open space
PROPOSED LAND USE: Recreational facility including an indoor ice arena and an indoor basketball court facility.
SIZE OF PARCEL(S): 67.307 acre parcel of land.
SURROUNDING LAND USE & ZONING:
NORTH: Zoning:Light Industrial (I1), Civic Campus (P3),Corridor Mixed Use 2 (CMU2), Mid-Century Neighborhood (N2), Residential Manufactured Home (RMH)
Land Use: Mountain Supply, S & S Machine, Randash Auto, Public, MDT Offices, American Home Centers, Single Family Residential, and Manufactured Home Park
SOUTH: Zoning: Corridor Mixed Use 1 (CMU1), Corridor Mixed Use 2 (CMU2)
Land use: Several food service establishments, Montana Dakota Utilities office, BLM Field office, Ledgestone Suites Hotel
EAST: Zoning: Corridor Mixed Use 1 (CMU1), Public Institution (P2), Mid-Century Neighborhood (N2), RMH
Land use: Retail mattress store, Newman School, Single Family Residential, & Circle K gas station/convenience store, mobile home park
WEST: Zoning: Mid-Century Neighborhood (N2), Corridor Mixed Use 2 (CMU2)
Land Use: Residential
SUMMARY
Prior to taking action, the City Council shall consider 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:
- 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.
- Essential Investments;
- A diversity of available jobs can ensure a strong Billings' economy.
- Placemaking
- A multi-use community recreation facility is desirable.
- Public and private partnerships are valuable for creating enhanced entryways into Billings.
- Prosperity
- A diversity of available jobs can ensure a strong Billings economy.
- Successful businesses that provide local jobs benefit the community.
- Community investments that attract and retain a strong, skilled and diverse workforce also attracts businesses.
- Community Fabric
- Developed parks that provide recreation, special amenities, and active living opportunities are desirable for an attractive and healthy community.
The property is currently zoned P1, which does not permit a restaurant with alcohol service. In contrast, the P2 zoning district allows recreational facilities with accessory uses such as a restaurant and/or concession stand, including the on-site sale of craft alcohol. The proposed zone change would therefore allow uses that are compatible with and supportive of the ice arena while remaining consistent with similar recreational zoning districts.
In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
2. Is the new zoning designed to secure from fire and other dangers?
The new zoning requires setbacks, open and landscaped areas, and building separations. The Public 2 zoning considers the surrounding zoning for siting of buildings and building characteristics. The new zoning, as do all zoning districts, provides adequate building separations to provide security from fire and other dangers. The new construction on the site is following applicable building codes, engineering standards for storm water control, connection to city services and parking lot construction. All zoning requirements will be followed.
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 engineering code, building code, and zoning code requirements to ensure and promote public health, public safety and general welfare. In addition to expanding recreational opportunities, the ice arena will create employment opportunities within the city limits and contribute to local economic activity. The proposed facility supports goals for community prosperity and aligns with Growth Policy objectives that promote walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, which collectively foster public health and community well-being.
4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The proposed zoning itself will not affect traffic, however the new recreational facility with an internal restaurant will increase traffic on the adjacent street network when the development is completed. City Engineering will review the development to determine required traffic management. King Avenue East is a minor arterial and South Billings Boulevard is principal arterial.
Water and Sewer: The City will provide water and sewer for the property through existing water and sewer mains in Commerce Way.
Schools and Parks: Schools and parks should not be negatively affected by the proposed zoning. The proposed development does not include residential uses. Therefore, additional students due to this zone change would not be anticipated. It should be acknowledged that with new jobs in the community, the school district may realize some increase in the student population. However, the zone change does not have a direct correlation to this potential increase.
Fire and Police: The subject property is served by city public safety services. Development of the property, regardless of the zoning, will be served by existing police and fire services. The Police and Fire Departments had no concerns with the zone change as requirements for access, water supply, and fire codes would apply to the site and any construction on the subject property.
5. Will the new zoning provide adequate light and air?
Similar to criteria 2 and 3, the proposed zone, like all zones, requires setbacks to allow for adequate separation between structures and adequate light and air. New construction is required to comply with zoning standards outlined in Section 27-500 (Public zones), as well as engineering and building code requirements. These standards are designed to maintain appropriate spacing between buildings, ensuring that the development allows for ample light, air, and overall environmental quality.
6. Will the new zoning effect motorized and non-motorized transportation?
The rezoning of the property from P1 to P2 to allow an internal restaurant may increase motorized traffic in the area. Any additional traffic mitigation measures that are necessary will be evaluated at the time of building permit.
7. Will the new zoning promote compatible urban growth?
The proposed zoning is compatible with adjacent zoning designations and existing land uses in the surrounding area. The zone change is consistent with similar public and recreational uses and supports orderly growth by allowing expansion of recreational amenities within Amend Park. In addition to enhancing recreational opportunities, the ice arena will generate employment within the city limits and contribute to local economic activity. The proposed facility advances goals for community prosperity and aligns with Growth Policy objectives that encourage walkable neighborhoods and convenient access to neighborhood services, open space, parks, schools, and public gathering spaces, thereby supporting public health and overall community well-being.
8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning considers the character of the district and the suitability of the property for the intended use. The proposed zoning and associated development are compatible with adjacent zoning designations and existing land uses in the surrounding area. The zone change is consistent with similar public and recreational uses and supports orderly growth by allowing expansion of recreational amenities within Amend Park. In addition to enhancing recreational opportunities, the ice arena will generate employment within the city limits and contribute to local economic activity.
9. Will the new zoning conserve the value of buildings?
The subject property was purchased by the City for the express purpose of building a recreation campus for the community and region. The property is directly adjacent to Amend Park, a regional soccer and lacrosse public recreation complex. Accordingly, the proposed zone change is not expected to adversely affect the value of any existing buildings on the parcel, as no principal structures were present prior to development. The ice arena and basketball court structures currently under construction have been reviewed and approved by the City and are compliant with all applicable zoning, engineering, and building code requirements. Any future development associated with the proposed zoning will similarly be required to meet all applicable standards, ensuring that new structures are appropriately designed, sited, and constructed in a manner consistent with public safety and compatible with surrounding land uses.
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The Public, Civic, and Institutional, small (P2) zoning district is the most appropriate designation for the subject property. The City intends to develop the site in accordance with all applicable zoning requirements. The property’s current use as a public park and soccer field and accessory restaurant use is consistent with similar public and recreational uses permitted in the P2 district. The proposed zone change supports orderly growth by allowing for the continued use and expansion of recreational amenities within Amend Park and is appropriate given the property’s location and surrounding land uses.
FISCAL EFFECTS
Approval or denial of the proposed zone change will not have an effect on the Planning Division budget.
STAKEHOLDERS
The applicant and agent conducted a pre-application neighborhood meeting on Wednesday, January 21st, 2026, at 5:30pm in the Newman Elementary School gym, located at 605 S Billings Blvd. Billings. There were no members of the public in attendance.
Planning staff posted the zoning request sign on the property and mailed the 1/4-mile notification list of the pending zone change. In addition, the application details were published on the Planning "current zoning applications" web page and a legal ad was published in the newspaper of record. Planning staff has received no written comments on the application as of the date of this report. Planning staff did not receive any comments prior to completing this staff report for the zone change.
ZONING COMMISSION PUBLIC HEARING
The Zoning Commission held a public hearing on March 3, 2026, 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. City Parks, Recreation and Public Lands Department Director Gavin Woltjer concurred with the staff recommendation for approval and explained that the request is intended to allow operation of a full-service restaurant with the service of beer. With no further public comment, Chairperson Brooks closed the hearing. Commissioner Goss made a motion to recommend approval of the proposed zone change and to adopt the findings addressing the ten required zone change criteria. The motion was seconded by Commissioner Megorden and passed unanimously (5-0 vote).
Planning staff posted the zoning request sign on the property and mailed the 1/4-mile notification list of the pending zone change. In addition, the application details were published on the Planning "current zoning applications" web page and a legal ad was published in the newspaper of record. Planning staff has received no written comments on the application as of the date of this report. Planning staff did not receive any comments prior to completing this staff report for the zone change.
ZONING COMMISSION PUBLIC HEARING
The Zoning Commission held a public hearing on March 3, 2026, 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. City Parks, Recreation and Public Lands Department Director Gavin Woltjer concurred with the staff recommendation for approval and explained that the request is intended to allow operation of a full-service restaurant with the service of beer. With no further public comment, Chairperson Brooks closed the hearing. Commissioner Goss made a motion to recommend approval of the proposed zone change and to adopt the findings addressing the ten required zone change criteria. The motion was seconded by Commissioner Megorden and passed unanimously (5-0 vote).
ALTERNATIVES
The City Council may take one of the following actions:
- Approve and adopt the findings of the ten review criteria for Zone Change 1074; or,
- Deny and adopt different findings of the ten review criteria for Zone Change 1074; 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