This is a request for a special review to allow the conversion of an existing commercial building to accommodate a residence and commercial space located at 407 N 24th Street in a Controlled Industrial (CI) zone on a 10,500 square foot parcel of land. The subject property is legally described as Lots 19, 20 and 21, Block 12, Billings Original Town. The owner is NA Thompson, LLC and Sparx, LLC - Jane Deschner and Jon Lodge - are the agent and prospective purchaser's of the property. The Zoning Commission conducted a public hearing on September 7, 2011, and is forwarding a recommendation of conditional approval on a 4 to 0 vote.

The Planning Division reviewed the application and recommended conditional approval to the Zoning Commission. The Zoning Commission concurred with this recommendation. Before a recommendation of approval or conditional approval may be made, each special review request must demonstrate conformance with three primary criteria: 1) the application complies with all parts of the Unified Zoning Regulations, 2) the application is consistent with the objectives and purposes of the Unified Zoning Regulations and the 2008 Growth Policy, and 3) is compatible with surrounding land uses and is otherwise screened and separated from adjacent land to minimize adverse impacts. This application conforms to the first criteria, in so far, that it is in a district that allows residential use by special review. The proposed entryway expansions are on the north side of the building. The building does not meet the required front setback of 20 feet but this is an existing condition that will not be altered by the proposed structure conversion.

The application conforms to the purposes of the regulations, the 2008 Growth Policy, the EBURD Master Plan, and 2008 North Park Neighborhood Plan. The development will add one dwelling to an area that is the natural extension of the mix of uses in the CBD zone. As the form-based zoning process moves forward this small area between the existing CBD and the EBURD district may prove critical to a cohesive development pattern. The applicant included several letters of support including Farm Bureau Financial Services (owns 401 N 24th Street), TKC Photography, Downtown Billings Partnership, Marty Connell, and Jack Nickels.   

The application also conforms to the third criteria. The current building is vacant and in need of renovation. The building does not exceed lot coverage or building height, but does encroach on the required front setback. The exterior of the building will be renovated to include two new entryways on the north side and the interior will be extensively upgraded. The existing off-street parking spaces are adequate to accommodate the small commercial space and the residential use. There are several residential dwellings in the immediate neighborhood and the proposed use will not be out of character. The proposal is compatible and conditions are recommended to mitigate any potential adverse effects on the surrounding area.

The Zoning Commission recommends to following conditions of approval:

1. The special review approval shall be limited to Lots 19, 20, and 21, Block 12, Billings Original Town, generally located at 407 N 24th Street. 
2. The special review approval is for one residential dwelling unit in an existing structure and no other use is intended or implied by this approval. The commercial space shown on the plan is an allowed use within this zone.   
3. Any expansion of the proposed building, greater than 10 percent of what is shown on the submitted site plan will require an additional special review approval.
4. These conditions of special review approval shall run with the land described in this authorization and shall apply to all current and subsequent owners, operators, managers, lease holders, heirs and assigns. 
5. The proposed development shall comply with all other limitations of Section 27-613 of the Unified Zoning Regulations concerning special review uses, and all other City of Billings regulations and ordinances that apply.

There should be no significant impact on city finances. When the building is remodeled, additional property taxes may be collected when the value increases. The property is within the expanded North 27th Street Tax Increment Finance (TIF) District. 

This is a request for a special review to allow the conversion of an existing vacant commercial structure to a residence with a studio work space and a small gallery. The CI zone requires a special review approval to allow a residence or to allow a residence in a building with a commercial or industrial use. The existing structure was built in 1949 and has not had any major renovations since that time. The proposed conversion will add two small entry additions on the north side of the building and a complete conversion of the interior space to create the living space and the working spaces for the new owners. Prior to 1997, the zoning regulations allowed all types of residential uses within the CI zone. In 1997, the City and County zoning regulations were unified into a single code. The County zoning regulations required special review approval for single-family dwellings in the CI zone. In order to reconcile the differences in the zoning codes, the City adopted the special review requirement for residences in the CI zone. The City has not considered a special review request for this use since the codes were unified in 1997. There are many existing residential uses in the CI zoning districts throughout the city. Re-construction of these dwellings does not require a special review. 

The immediate neighborhood surrounding the parcel is zoned CI to the north, south and east. To the west is the Central Business District (CBD) and residential uses are allowed. There are 7 single family dwellings and one 26-unit apartment building in the CI zone in the immediate area. Two blocks east of this location is the East Billings Urban Renewal District (EBURD) where a master plan has been approved and a new zoning code – a form-based code – that will allow residential uses in certain configurations is being developed this fall. The CBD zone directly across N 24th Street allows all types of residential uses at any density. The East Billings Parking Overlay District applies to the property. The overlay district does not require any minimum off-street parking at this time.

The Zoning Commission conducted a public hearing on September 7, 2011, and received testimony from the agents, Jane Deschner and Jon Lodge. The Planning Division received several letters of support for the project. There was no other testimony. The Zoning Commission voted 4 to 0 to forward a recommendation of conditional approval.

The consistency with adopted plans and policies is discussed in the Alternatives Analyzed section above.