This is a zone change request from Residential Manufactured Home (RMH) to Highway Commercial (HC) on a 1.48 - acre parcel described as Lots 12, 13, 14 and 15A of Block 5 of Wanigan Subdivision. The property is owned by BEL, LLC and William Lane is the agent. The owners conducted a pre-application neighborhood meeting on September 18, 2012. The pre-application meeting notes are included as Attachment C. The Zoning Commission conducted a public hearing on November 7, 2012, and is forwarding a recommendation of approval on a 3-0 vote. 

State law at Section 76-2-304, MCA, requires that all zone changes be reviewed in accordance with 10 criteria. Using the 10 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

There should be no immediate impact to the City's finances from the proposed zoning. City fees will be aligned to the new zoning for the following tax year (2014). Additional tax revenue may be realized if the property is re-developed.

The applicant is requesting to rezone a 1.48 acre parcel located generally at 1001 Main Street.  The property includes two vacant lots with frontage on Shawnee Drive. The property at 1001 Main Street has been a retail tire shop since before the zoning was adopted in 1972. The original zoning, RMH, is still in place for this lot. The TireRama business is a legal nonconforming use and could not be re-established if the buildings were damaged by more than 50% or destroyed. The two lots on Shawnee Drive are also zoned RMH but have never been developed for any residential or commercial use. Property to the north at 1005 Main Street was re-zoned from RMH to HC in 1979 to conform the zoning to an existing automotive repair shop. There are very few Main Street parcels remaining with residential zoning. The applicant would like to bring the zoning into conformance with the existing tire shop and have the two vacant lots zoned so enclosed storage can be developed on Shawnee Drive. There is a permanent easement between the Main Street property and the Shawnee Drive property for BBWA irrigation water. No structures may be built over the easement. The Wanigan Subdivision is one of the oldest subdivisions in Billings Heights and includes residential and commercial lots. The streets have not been paved but water and sewer services are provided by the city.

The property to the north is an automotive repair shop with a storage yard to the east of the shop buildings. Part of the storage yard is in the RMH zone. This is a grandfathered non-conforming use. The lots to the south are zoned HC and RMH and are developed for commercial and residential uses. The property to the west across Main Street is zoned HC and supports the Town and Country Plaza, a multi-tenant commercial development. Main Street is an arterial street and state-maintained route that connects I-90 with communities north and east of Billings. The current volume of traffic on Main Street averages 36,880 vehicle trips per day. There should be no impact on Main Street traffic from the re-zoning since the commercial business exists and the storage area on the two vacant lots will be an accessory use for the tire shop. The zoning code requires any new commercial development to provide screening and buffering when the property is within 50 feet of a residential use or residential zone. The vacant lots, if developed for accessory storage for the tire shop, will need to be fully screened from the adjacent residences on Shawnee Drive. The lots on Shawnee Drive could be developed for other uses allowed in the HC zone however, given the location on an unpaved street without direct arterial street access, the development potential is limited.

The Billings Heights Neighborhood Plan indicates the property between Main Street and Bench Boulevard should develop with a mixture of uses including commercial, retail, and higher density residential uses. The 2008 Growth Policy encourages the location of commercial uses at intersections of arterial streets to avoid “stripping” commercial zones narrowly along arterial streets. The practice of commercial strip zoning is evident in the traffic congestion and accessibility problems along Main Street, Grand Avenue, and 24th Street West. The proposed HC zoning for the two vacant lots, may allow an intrusion of non-residential uses in this manufactured home neighborhood. The site development standards may ameliorate some of the potential impacts from use of the lots for commercial purposes. The lots have remained vacant since creation by the Wanigan Subdivision in 1964 and it is not likely residential development would occur in the future.

The HC zone allows a maximum building height of 45 feet and a front property line minimum setback of 20 feet. The arterial street setback is 60 feet to the centerline of the right-of-way for any new building and 50 feet from the centerline for any required parking. It appears the existing TireRama building at 1001 Main Street meets the required setbacks, lot coverage and building height for the zoning district. It is nonconforming to the site development standards for landscaping (none), and screening of solid waste and storage areas (none). These nonconformities may continue unless the property is redeveloped or the building is expanded by more than 25% of its existing area.

The applicant conducted a pre-application neighborhood meeting on September 18, 2012. Several surrounding property owners attended and concerns were voiced about the potential or intended uses for the vacant lots on Shawnee Drive. The applicant stated the lots would be used for accessory storage by the tire shop. The applicant also stated the vacant lots would not be used for any structures - commercial or residential. A list of attendees, and the agent's answer to these questions is in Attachment D. No surrounding property owners contacted the Planning Division staff prior to the Zoning Commission public hearing.

The Zoning Commission conducted a public hearing on November 7, 2012, and received the staff report and recommendation. The applicant and agent provided testimony in favor of the application. No other testimony was received. The Zoning Commission voted 3 to 0 to forward a recommendation of approval to the City Council.

The Heights Neighborhood Plan adopted by the City in 2006 states the purpose of the plan is to guide the long-term growth of Billings Heights. A preferred land use map was developed locating and encouraging the retention of most commercial uses along Main Street and to locate a mixture of uses between Main Street and the parallel streets of Lake Elmo Drive and Bench Boulevard. The 2008 Growth Policy encourages the compatibility of adjacent zoning to new zoning especially in established neighborhoods. The proposed zoning is compatible with the adjacent zoning and existing land uses.

The Planning Division reviewed the application and recommended approval based on the ten (10) criteria for zone changes. The Zoning Commission concurred with the recommendation. The subject property is adjacent to commercial uses to the north, south and west. Uses allowed in the HC zoning are compatible with the surrounding zoning and neighborhood character. Some uses in the HC zone would only be allowed by special review approval such as on-premise service of alcoholic beverages. Any development or re-development of the property requires compliance with the new zoning and the ability to meet site development requirements and traffic safety standards. The 2008 Growth Policy and the Billings Heights 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 making a decision on the proposed zone change, the City Council shall consider the following 10 criteria:
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 the existing commercial use to continue in conformity with the zoning. The two vacant lots on Shawnee Drive may add value to the tire shop by providing additional area for storage. The area along Main Street and the property adjacent to the east have been used for commercial purposes since the late 1970s. The proposed zoning is consistent with the neighborhood character and land use patterns between Main Street and Bench Boulevard. Development standards are in place to require screening, buffering, and mitigation of any potential conflicts with adjacent residential uses. The proposed zoning is compatible with the existing uses on Shawnee Drive and Radford Square. 
• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6) 
The existing zoning is restricted to residential uses. The proposed zoning will allow the retention of the commercial use on Main Street and allow area for potential accessory uses to the east. 
• Business development and rejuvenation in the Heights.(Economic Development Goal, Page 8)
The proposed zoning will allow continuation of an existing use and the re-use of land for new business development.

2. Is the new zoning designed to secure from fire and other dangers?
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.

3. Whether the new zoning will promote public health, public safety and general welfare?
Public health, safety and general welfare will be promoted by the proposed zoning. The nonconforming zoning discourages investment in the property.

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?

Transportation: The proposed zoning may have some impact on the surrounding streets if the property is redeveloped in the future. A traffic impact study may be required depending on the development that is built on the property in the future. New development that generates 500+ new vehicle trips per day will require a Traffic Accessibility Study (TAS).

Water and Sewer: The City provides sewer to the property and water is provided by Billings Heights Water District.  

Schools and Parks: There should not be any impact to schools from the proposed zone change.

Fire and Police: The subject property is currently served by the City Public Safety Services.

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 effect motorized and non-motorized transportation?
Traffic generation from a commercial site is dependent on the specific uses within the development. The site is currently developed and the change in zoning should not have any effect on existing traffic patterns.

7. Will the new zoning promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The new zoning will allow investment in the property increasing property value over time.

8. Does the new zoning consider the character of the district and the peculiar suitability of the property for particular uses?
The proposed zoning does consider the character of the district and the suitability of the property
for commercial uses, including neighborhood and commuter service businesses.

9. Will the new zoning conserve the value of buildings?
The existing commercial building and development will be conserved by the new zoning.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit a greater variety of uses on the property and is the most appropriate use of the property.