This is a zone change request from Entryway Light Industrial (ELI) to Highway Commercial (HC) on a parcel of land described as Lots 3 and 5, Block 1, Montana Sapphire Subdivision, a 12.99 acre parcel of land located in the Montana Sapphire Subdivision at 4300 Montana Sapphire Drive. The property is owned by Montana Sapphire, LLC and Sanderson Stewart is the agent. The owner conducted a pre-application neighborhood meeting on June 27, 2011. The pre-application meeting notes are included as Attachment C. The Zoning Commission conducted a public hearing on August 2, 2011, and is forwarding a recommendation of approval on a 3-0 vote.  

State law at MCA 76-2-304 requires that all zone changes be reviewed in accordance with 12 criteria. Using the 12 criteria to determine the appropriateness of the zone change request, the City Council may:
1. Approve the zone change request
2. Deny the zone change request
3. Allow withdrawal of the application
4. Delay action for up to thirty (30) days

Approval of the zone change should not have a financial impact on the city's tax base. When the property is developed, additional tax value may be added to the property.

The applicant is requesting to rezone this property on two lots within the Montana Sapphire Subdivision from ELI to HC to allow more flexibility with mixed uses or residential uses. The entryway zoning districts were applied on several properties in the area prior to the adoption of the South Shiloh Corridor Overlay District to provide increased standards for building design, site design and signage. Since the adoption of the overlay district in 2005, the Shiloh Crossing Subdivision has changed its zoning to CI and the St. Vincent Healthcare Subdivision has changed its underlying zoning to ELI and updated its Planned Development agreement to focus more on commercial and medical uses and less on higher density residential uses. Lenhardt Square Subdivision across King Avenue to the north has adopted a Planned Development agreement with underlying zoning that allows mixed uses with high density residential and multi-family and single family uses. The large lots within Montana Sapphire Subdivision are appropriate for the current zoning but the district does restrict mixed uses to special review approval. Current zoning allows a list of uses that is generally more restrictive than HC zoning districts. For example, microbreweries and restaurants with on-premise consumption of alcohol without gaming are allowed uses in the HC zone and in ELI microbreweries are not allowed and any restaurant serving alcohol must go through special review. The proposed HC zoning allows single use developments or mixed use developments by right. There is no specific project intended for the property at this time.

Montana Sapphire Drive is a private street built to local commercial access standards. Shiloh Road and King Avenue West are principal arterial streets that have the capacity to handle any additional traffic from development within Montana Sapphire Subdivision. Shiloh Road carries approximately 8,000 vehicle trips per day at this location and King Avenue West carries 6,250 vehicles per day west of Shiloh Road.
Entryway zoning requires a greater amount of site improvements and building aesthetics than other commercial zoning such as Community Commercial (CC) or HC.  Entryway zoning requires larger landscaped buffer yards with a minimum number of trees per 100 lineal feet of buffer yard.  Entryway zoning also requires a minimum of a 10-foot wide buffer yard and a 6-foot tall solid fence along the property line that is adjacent to residential property. The Shiloh Corridor Overlay district supersedes the underlying zoning for site development, building design, signage, and landscaping but does not change the allowed uses in the zoning district. ELI zoning allows general commercial uses such as automobile sales, rental, and service stations, broadcasting studios (radio and television), car washes, commercial recreation uses, hotels/motels, laundry and dry cleaning, recreational vehicle sales and service, retail nurseries, signs, indoor theaters, tire sales, and wholesale uses not to exceed 250,000 square feet gross floor area but also allows heavy equipment sales, cabinet makers, and veterinary clinics. The HC zoning allows a wider range of uses, more detailed specification of uses and allows mixed uses by right.

The applicant conducted a pre-application neighborhood meeting on June 27, 2011. No surrounding property owners attended the meeting. No surrounding property owners contacted the Planning Division staff prior to the Zoning Commission public hearing.

The West Billings Neighborhood Plan adopted by the City in 2001 states the purpose of the plan is to guide the long-term growth of West Billings by achieving planned growth. A preferred land use map was developed locating neighborhood, community and regional commercial nodes at major arterial intersections. One of the intersections is Shiloh Road and King Avenue West directly adjacent to the regional commercial center from King Avenue West south to I-90. The completion of the Shiloh Road improvements last year has helped spur development along the corridor north from the interstate. The current entryway zoning was a predecessor to the overlay district and to the West Billings Neighborhood Plan. A more flexible zoning district of HC would allow the overlay district standards to stay in place while allowing a different mixture of land uses on this property. The ELI zone is tailored for very large developments that need interstate market exposure and are limited in allowed uses. The HC zone in comparison is suited for property that may not need interstate exposure but needs easy access to a high volume arterial that connects with the interstate. The HC zone is described in the zoning code as follows: “The Highway Commercial zone is intended to provide areas for commercial and service enterprises which are intended primarily to serve the needs of the tourist, traveler, recreationist or the general traveling public.  Areas designated as Highway Commercial should be located in the vicinity of, and accessible from interstate interchanges, intersections on limited access highways, or adjacent to primary or secondary highways.” The ELI zone is described as follows: “The Entryway Light Industrial zone is to provide large lots located directly accessible to arterial and other transportation systems for warehousing and light manufacturing and allow for limited commercial facilities for the adjacent community and interstate travelers.”

The proposed HC zone is compatible with the zoning south, west and east of the subject property. The lots north are developed for uses more compatible with HC zone than ELI zone uses. The overlay district standards will apply to any development that may occur on the property.

The Zoning Commission conducted a public hearing on August 2, 2011, and received testimony from the applicant's agents, Pat Davies of Sanderson Stewart and Blaine Poppler of Coldwell Banker Real Estate. No other testimony was presented. Mr. Davies stated he concurred with the staff recommendation of approval. Mr. Poppler stated he was assisting the owner with marketing the property and the real estate market has changed since the original subdivision 10 years ago. The Shiloh Road improvements in addition to the zoning of surrounding subdivisions has made this property more suitable for mixed uses and for higher density residential. Mr. Poppler stated there has been interest and demand for market rate rental apartments in the area with the increase of employment opportunities on Shiloh Road. Mr. Poppler stated the new Lenhardt Square apartments were running at 100% occupancy. Mr. Poppler stated the ELI zoning requires mixed use when considering residential uses and any mixed use requires a special review approval. The proposed Highway Commercial zoning does not require mixed uses, but allows them by right and allows all residential multifamily uses by right as well.
The Zoning Commission considered the testimony and staff recommendation and Commission Member Ed Workman made a motion to forward a recommendation of approval. The motion was seconded by Commission Member Dan Wagner and approved on a 3-0 vote.

The Planning Division reviewed the application and recommended approval to the Zoning Commission based on the twelve (12) criteria for zone changes. The subject property is adjacent to agricultural zoning in the county and mixed use, high density, residential uses, as well as commercial and industrial zoning in the city. The uses allowed within the proposed HC zoning are compatible with the surrounding zoning and neighborhood character. Any development of the property requires compliance with the new zoning and the ability to meet site design criteria and traffic safety standards. The 2008 Growth Policy and the West Billings Neighborhood Plan encourage predictable land use decisions that are consistent with neighborhood character and land use patterns. The existing use and proposed zoning are consistent with this neighborhood and land use pattern.

Prior to any action to approve or disapprove, the City Council will consider the recommendation of the Zoning Commission and shall consider the following:

1. Is the new zoning designed in accordance with the Growth Policy?
The proposed zone change is consistent with the following goals of the Growth Policy:
• Predictable land use decisions that are consistent with neighborhood character and land use patterns. (Land Use Element Goal, page 6) 
The proposed zoning would permit more flexibility of land uses that are more consistent with current development in the area and with Shiloh Corridor Overlay zoning. Highway Commercial zoning is compatible with the existing uses in Montana Sapphire Subdivision, Shiloh Crossing Subdivision to the east, and Lenhardt Square and St. Vincent Healthcare Subdivision to the north. 
• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6) 
The existing zoning is restrictive of mixed uses, and certain types of commercial uses. The proposed zoning will allow more housing and business choices in the area including mixed uses with multifamily dwellings.
• Coordinated economic development efforts that target business recruitment, retention, and expansion.(Economic Development Goal, page 6) 
The proposed zoning will encourage new businesses and development within the Montana Sapphire Subdivision.  

2. Is the new zoning designed to lessen congestion in the streets?
There should be no immediate effect on traffic congestion. The existing vacant land is part of an existing subdivision. Streets have been constructed and access is available to King Avenue West and Shiloh Road. Any future development may require a traffic impact analysis to ensure these existing access points continue to be functional. 

3. Will the new zoning secure safety from fire, panic and other dangers?
The subject property is currently serviced by the Billings Fire Department and Billings Police Department. There should be no effect on these services.

4. Will the new zoning promote health and general welfare?
The proposed zoning would allow the owner to market the property for a greater variety of commercial uses and mixed uses. Additional development in the subdivision will promote the general welfare.

5. Will the new zoning provide adequate light and air?
The proposed zoning provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.

6. Will the new zoning prevent overcrowding of land?
The proposed zoning, like all zoning districts, contains limitations on the maximum percentage of the lot area that can be covered with structures.  The proposed HC zone allows 75% lot coverage and the current ELI zone allows up to 50% lot coverage. The proposed HC zone setbacks are similar to the current ELI requirements. The maximum residential density is the same for both zoning districts of 26 dwelling units per acre.

7. Will the new zoning avoid undue concentration of population?
The new zoning does avoid undue concentration of population. The existing zoning, ELI, allows single family dwellings on lots of at least 9,600 square feet and multi-family dwellings at the same density as RMF-R – 26 units per acre. The proposed HC zone has identical requirements except that single family developments can occur on lots of 6,000 square feet per dwelling unit. In the ELI zone, all residential uses or mixed uses require special review approval and these are allowed uses within the HC zone. The new zoning should avoid undue concentration of population. 

8. Will the new zoning facilitate the adequate provisions of transportation, water, sewerage, schools, parks, fire, police, and other public requirements?
Transportation: The proposed zoning may have some impact on the surrounding streets, and a traffic impact study may be required depending on the development that is built on the property in the future
Water and Sewer: The City will be able to provide water and sewer to the property through existing lines in the subdivision.
Schools and Parks: There should be no impact to schools from the proposed zone change. However, a residential development in the future could affect the schools in the area.  
Fire and Police: The subject property is currently served by the city Public Safety Services.

9. Does the new zoning give reasonable consideration to the character of the district?
The proposed zoning will allow the property to develop in character with the surrounding land uses.

10. Does the new zoning give consideration to peculiar suitability of the property for particular uses?
The subject property is suitable for the requested zoning district. The location is west of Shiloh Road and south of King Avenue West, both principal arterial streets. The property may be more suitable for mixed uses and similar development that does not require arterial street frontage for commercial or industrial uses.

11. Was the new zoning adopted with a view to conserving the value of buildings?
Surrounding commercial property exhibits higher taxable land value. The property is currently vacant and should increase in value when developed.

12. Will the new zoning encourage the most appropriate use of land throughout such county or municipal area?
The proposed zoning will permit more flexibility with future development. The surrounding development is compatible and this is the most appropriate use of the land.