The Zoning Commission is recommending approval of Zone Change 1079 and adoption of the findings of the 10 review criteria. 

Zone Change 1079 requests to rezone Knife River's former property from Agriculture to Corridor Mixed Use 2 (CMU2), Mixed Residential 3 (NX3), and Parks and open space (P1). The requested rezone aligns with both the 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan both of which encourage compatible land uses, a range of housing options, varied development densities, and more walkable neighborhoods connected to services and alternative transportation.

The plan proposes commercial development along Shiloh with medium-density residential areas extending west into the property adjacent to the West End Water Reservoir. The property is within the City’s Limits of Annexation (Zone 1), with annexation occurring concurrently with the zone change. Planning staff finds the request compatible with surrounding zoning and land uses and recommends approval based on the applicable review criteria.

This is a zone change request from Agriculture to Corridor Mixed Use 2 (CMU2), Mixed Residential 3 (NX3), and Parks and open space 1 (P1) on 144.46 acres. The property is legally described as Lots 1 and 2, Block 1 of Long Subd. and Lot 4A, Block 1, of Amended Plat of Lot 3 and Lot 4 of Long Subd., S15, T01 S, R25 E. The property is generally located west of Shiloh Road and north of Hesper Road.

This area of Billings has experienced a great deal of growth and development over the past decade. Housing demand has reached a high level while supply of all types of housing choices has not kept up with the demand.  Development on the edge of the City of Billings (City) presents challenges, including ensuring appropriate transitions between adjacent county properties and new urban neighborhoods. While these transitions do not require homogeneity, the development plan will include buffering, connectivity that supports the planned network in the neighborhood and existing and needed ROW dedications, and recognition of shared goals across both property types. The 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan both support the intent of the proposed Mixed Use Planned Neighborhood Development (PND-MU) zoning. The West Billings Neighborhood Plan includes goals and objectives that emphasize locating compatible land uses, providing a range of housing choices, and encouraging a variety of development densities. These objectives are consistent with the proposed zone change.

Similarly, the 2016 Billings Growth Policy supports a broad range of housing choices, encourages the development of more walkable neighborhoods with connectivity to alternative transportation options and neighborhood services, and promotes strengthening the community fabric through well-designed urban public spaces. The 2016 Billings Growth Policy identies this area within the West Public Preferred Scenario as Mixed-Use and High Density Residential. These objectives are also supported by the proposed zoning request. Providing commercial zoning along Shiloh Road, with residential development focused toward the western edge of the property, is consistent with these policy goals and supports the provision of neighborhood services while expanding housing options within the area.

The property is located within the Limits of Annexation, Zone 1 with the annexation petition running concurrently with the zone change. Following the annexation and zoning process, the property will undergo subdivision review to evaluate traffic impacts, connectivity, and public utilities among other design requirements. Once lots are created, the development of multiple structures on each lot will require Master Site Plan approval. The Master Site Plan review will address the overall layout of the planned development, including private roadway design, building placement and design, landscaping, and public utilities. 

The planning staff has reviewed the application and drafted findings for the 10 review criteria for the zone change and recommended approval to the Zoning Commission based on the draft findings. The Zoning Commission conducted its public hearing and is recommending approval to the City Council based on its findings for the 10 review criteria for the zone change.

The request for CMU2, NX3, and P1 zones 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 the aforementioned zones 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 of the subject parcel is compatible with the adjacent zoning and land uses.

APPLICATION DATA:
APPLICANT: Mack Long, GM of Knife River Corp.
AGENT: Kolten Knatterud, IMEG Corp.
LEGAL DESCRIPTION: Lots 1 and 2, Block 1 of Long Subd. and Lot 4A, Block 1, of Amended Plat of Lot 3 and Lot 4 of Long Subd., S15, T01 S, R25 E
ADDRESS: 1202 S Shiloh Road
CURRENT ZONING: Agricultural (A)
PROPOSED ZONING: CMU2, NX3, and P1
EXISTING LAND USE: Knife River Operations/Vacant
PROPOSED LAND USE: Mixed Use
SIZE OF PARCEL(S): 144.46 acres

CONCURRENT APPLICATIONS:
Petition for Annexation 26-02

SURROUNDING LAND USE & ZONING:
NORTH Zoning: Parks and Open Space (P1)
NORTH Land Use: Conservation Area
SOUTH Zoning: Agriculture (A)
SOUTH Land Use: Future Water Reservoir
EAST Zoning: Rural Residential (RR1) - 1 acres to 2.99 acres, Public, civic, and institutional, small  (P2)
EAST Land Use: Temple Estates Subdivision, Billings Christian High School 7 Montana Bible College
WEST Zoning: Agriculture (A)
WEST Land Use: Future Water Reservoir

SUMMARY
Before making a recommendation to the City Council, the Zoning Commission shall consider the following findings of the ten review criteria:

1. Is the new zoning designed in accordance with the Growth Policy?
The proposed Mixed-Use Planned Neighborhood Development (PND-MU) zoning is consistent with the 2016 Billings Growth Policy. The development supports the City's goals for housing diversity, walkable and safe neighborhoods, efficient use of infrastructure, and long-term economic vitality. The following sections summarize key Growth Policy goals.

• Strong Neighborhoods:
  • Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels in neighborhood areas.
  • 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, connectivity, pedestrian-scale streetlights, street trees and walkable access to public spaces.
  • Neighborhoods that are safe and attractive and provide essential services are much desired.
• Home Base
  • A mix of housing types that meet the needs of a diverse population is important.
  • 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.
  • Homes that are safe and sound support a healthy community.
• Essential Investments
  • Infill development and development near existing City infrastructure may be the most cost-effective.  
  • Neighborhoods that are safe and attractive and provide essential services are much desired.

• Policy E Commercial nodes should contain business development sites of various sizes to accommodate a variety of businesses.
• Policy M Development in the West Billings planning area shall provide for a variety of residential types and densities.
• Policy R Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments.

• Transportation: The applicant will need to start the process of developing a traffic impact study (TIS) as part of the subdivision process. The TIS identifies intersections within proximity to the development to evaluate their current level of service and the development's impact on each intersection. If impacts are determined, the developer is required to contribute their proportionate share of the impact on the intersection to be used for future improvements to the intersection. 
• Water and Sewer: The area to be annexed will connect to water and sanitary sewer mains present in Shiloh Road. As part of the annexation agreement, the City evaluates water and sewer sizing for the proposed development while anticipating future development. Adequate provision of water and sewer are addressed within the annexation agreement.
• Schools and Parks: The proposed zoning itself will have no impact on schools or parks, but the development will. Schools and parks will be affected by the new residential housing units. SD #2 was contacted for comments. At the time of writing this report, no comments were received. The proposed development is adjacent to the future West End Reservoir. The proposed layout aligns with residential with the boundary of the reservoir allowing future residents to take advantage of the recreation portion of the facility. 
• Fire and Police: The subject property will be served by city public safety services. The Police and Fire Departments were both contacted for comments on the proposed zone change. The police department responded with no concerns. As of writing this report, no comments were received from the fire department. The impact on both police and fire should be minimal as they serve existing properties in the area. 

5. Will the new zoning provide adequate light and air?
The proposed zoning is designed to maintain adequate light, air, and openness for all residents and adjacent properties. Each zoning district, CMU2, NX3, and P1, has established setbacks/build-to, height limits, and will regulate building placement and separation. These standards prevent overcrowding, ensure sunlight reaches streets and open spaces, and allow airflow throughout the development. 

6. Will the new zoning affect motorized and non-motorized transportation?
Shiloh Road is a principal arterial street. Most of the development along Shiloh Road is commercial development.  Streets will be designed in accordance with City standards, ensuring safe access for cars, buses, pedestrians and emergency vehicles. Subdivision and Master Site Plan reviews will evaluate traffic circulation, intersections, and connections to the surrounding street network to minimize congestion and maintain smooth vehicular flow. As part of the subdivision process the future development will be required to complete a traffic impact study. If the traffic impact study identifies an impact on an existing intersection the developer will be responsible for their proportionate share of contributions towards intersection improvements. 

7. Will the new zoning promote compatible urban growth?
The proposed zoning is designed to encourage compatible urban growth by providing a mix of residential and commercial uses that integrate with surrounding neighborhoods. The combination of CMU2 and NX3 zoning allows a range of housing types from single-family and duplex units to multifamily units in mixed-use buildings, providing housing variety. The project will utilize existing streets, utilities, and city services efficiently, ensuring that growth occurs in an orderly manner without overextending public resources.

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 proposed uses. This area is experiencing rapid urban growth, with increasing demand for a variety of housing types, including townhomes, apartments, single family and attached homes, as well as local neighborhood and commercial services. The proposed CMU2 zoning along Shiloh Road provides an appropriate location for commercial uses, concentrating activity along a major corridor while minimizing impacts on adjacent developed areas by its location on an arterial street. The Multi-Family Residential (NX3) offers a range of housing choices and densities that transition smoothly from lower-density county properties to the south and east to higher-density city developments to the northwest.

9. Will the new zoning conserve the value of buildings?
The proposed zoning includes development standards designed to promote compatible development and protect the value of existing and future buildings in the surrounding area. Requirements such as setbacks, build-to zones, building orientation, and height limitations help ensure that new structures are appropriately scaled and positioned in relation to neighboring properties. These standards guide how buildings address streets and adjacent development, reducing potential impacts such as excessive building mass, loss of light, or privacy concerns that could negatively affect nearby properties. In addition, the mixed-use zoning framework encourages a coordinated pattern of development that integrates high density residential, mixed-use, and commercial uses. Locating commercial uses along Shiloh Road while transitioning to medium-high density residential development toward the interior of the property creates a logical land use pattern that supports both the commercial corridor, provides transition and housing opportunities. This type of planned development can enhance accessibility to services, improve walkability, and support economic activity, all of which contribute to maintaining and potentially enhancing property values over time. The zoning district’s design standards and structured development pattern provide predictability for property owners and investors, helping to ensure that future development occurs in a manner consistent with the character and planning goals of the area. By promoting compatible land uses, thoughtful building placement, and quality site design, the proposed zoning supports the long-term stability and value of buildings within the surrounding neighborhood.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed PND-MU with CMU2, NX3, and P1 zoning will encourage the most appropriate use of this land. The property is within the City's Limits of Annexation and is planned for urban development. Utilizing this land for a mix of residential and commercial uses leverages existing streets, utilities, and city services. As mentioned in prior criteria, the development provides a range of housing types and mixed-use/commercial use. This balance ensures the land supports multiple community needs while maintaining compatibility with surrounding properties.

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

The applicant held a pre-application meeting on February 17, 2026, at 6pm at Hilton Homewood Suites, 3420 Ember Lane, Billings, MT. Four individuals attended the meeting, not including the applicants. The required notification area for all new PND zone changes is one-quarter mile from the property boundary. In this case, more than 42 individual property owners and interested parties were notified of the pending zoning application.

During the meeting, the applicant explained the intent to annex and rezone the property, then sell to another owner for future development. One individual was concerned about how the proposed commercial zoning would affect the existing well and septic systems. The applicant clarified the zone change and annexation actions would require any future development to hook up to City water and wastewater systems. There are no other comments or objections from the audience. Additional details are provided in the attached neighborhood meeting minutes.

At the time this report was prepared, one written comment was received from a member of the public in support of this item.

CITY ZONING COMMISSION
The Zoning Commission held a public hearing on April 7, 2026, where staff provided a presentation outlining the request. Planning Staff presented the zone change request and concluded with a recommendation for approval, remaining available to answer questions. Commissioner Goss inquired about a “cooldown” period between zoning applications, specifically regarding potential future actions by new property owners. Staff clarified that the one-year cooldown applies only if a zoning request was denied by City Council. No further questions were raised by the Zoning Commission.

The Zoning Commission then invited the applicant and their agent to address the item. Kolten Knatteruud of IMEG Corp. explained that the zone change and annexation are intended to facilitate future property ownership and are part of an active buy/sell agreement. Applicant Mac Long of Knife River Corp. stated that a project of similar scope was completed with the same prospective buyer in Belgrade, Montana, and they aim to develop a commercial project comparable to Shiloh Crossing. No additional questions were posed by the Commission.

The public hearing was opened, with no comments received, and subsequently closed.

Commissioner Goss moved to recommend approval of Zone Change 1079 and adoption of the findings of the ten review criteria to the City Council. Commissioner Megorden seconded the motion, which passed unanimously (5-0).
 

The City Council may:

• Recommend approval and adoption of the findings of the ten review criteria for Zone Change 1079; or,  
• Recommend denial and adopt different findings of the ten review criteria for Zone Change 1079; 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 requested delay of Zone Change 1079 to May 11, 2026. The request for delay is attached to this report.