This is a zone change request to amend an existing Planned Development (PD) to allow an increase in the maximum density from 15 dwelling units per acre to 20 dwelling units per acre on Tract 3A of C/S 2063 with an underlying zoning of PD-MF-R in the Lenhardt Square PD. The subject property is 25.186 acres in area. The area used for calculating the average density does not include any of the open space or pathways shown on the Lenhardt Square Master Plan. The current maximum density for the net area of Tract 3A is 289 dwelling units. The proposed amendment would increase this maximum density to 386 dwelling units. The property is owned by Stock Land Properties, Inc. and the agent is Sanderson Stewart. The agents and owner conducted a pre-application neighborhood meeting on February 25, 2013 and a preliminary review meeting was held by city staff on March 27, 2013. The Zoning Commission continued the public hearing from April 2 to May 7, 2013 due to lack of a quorum. The Zoning Commission conducted the public hearing on May 7, 2013, and is forwarding a recommendation of approval on a 5 to 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 financial impact to the city from the change in the Planned Development Agreement. When the property is developed, additional property tax and city fees will be realized based on the construction.

The applicant is requesting to change the Planned Development zoning restrictions on this property in order to increase the number of possible dwelling units from 15/units per acre to 20/units per acre. The underlying zoning of PD-MF-R would not be changed. The Lenhardt Square Master Plan and Planned Development Agreement approved by the City Council in 2008 allowed a 20/unit per acre density for the lots zoned PD-MF-R east of 44th Street West. Tract 3A west of 44th Street West however was limited to 15/units per acre. The lots north and west of Tract 3A have an underlying zoning of MF-4 with a density limit of 10 units per acre.

The entire Master Plan for Lenhardt Square is also governed by an annexation development agreement that limits the amount of city water available for the development pending completion of water system improvements that include increasing water pressure and storage capacity for fire protection.

The applicant has purchased 2 lots east of 44th Street West and is beginning construction of multi-family apartment buildings. These 2 lots will have 320 dwelling units in 4 buildings on 15.6 acres. Tract 3A will have a similar development plan but will have about 6 acres of central open space dedicated as well as the linear parkways on each street frontage.

The applicant conducted a pre-application neighborhood meeting on February 25, 2013. No surrounding owners attended the meeting. A preliminary meeting with city staff, surrounding owners, and the applicant was held on March 27, 2013. Representatives of Cal Kunkel, an adjacent property owner, attended the preliminary review. The applicant and agent discussed the development plan with the staff. There were no concerns with the proposed amendment.

The Zoning Commission conducted a public hearing on May 7, 2013, and received the staff recommendation and testimony from the agent, Rick Leuthold of Sanderson Stewart. Jan Rehberg, a founding member of the Lenhardt Square Association, provided testimony in favor of the zone change. No other testimony was received. The Zoning Commission concurred with the staff recommendation and is forwarding a recommendation of approval on a 5 to 0 vote.

The Planning Division reviewed the application and recommended approval of the proposed change to the Planned Development agreement. The Zoning Commission concurred with the recommendation. The Zoning Commission recommendation is based on the ten (10) criteria for zone changes. The subject property is the central parcel of the Lenhardt Square development and will have an open space and park area. The increased density will be compatible with the existing development to the east and across King Avenue West in the Western Sky Subdivision. The 2008 Growth Policy encourages 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. Water supply limitations are currently in place for this development and traffic impacts will need to be assessed by the city as development occurs within this subdivision and the surrounding subdivisions.

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 change to the maximum average density will be consistent with the other lots zoned MF-R in the Lenhardt Square Subdivision. The average density in this area is 14 to 22 units per acres including developments in Lenhardt Square and in surrounding subdivisions.
• Contiguous development focused in and around existing population centers. (Land Use Element Goal, page 6)
The proposed change in the development density will continue to focus new multi-family housing inside the city limits, and avoid “leapfrogging” development outside of the urban area.

2. Is the new zoning designed to secure from fire and other dangers?
The new density limitation will not change the existing approved building height limits and setbacks. Those setbacks, open and landscaped areas, and building separations will provide adequate building separations and density limits to provide security from fire and other dangers. The City Fire Department will ensure safe access to the site and provision for minimum fire flow to the new buildings.

3. Whether the new zoning will promote public health, public safety and general welfare?
Public health and public safety will be promoted by the proposed zoning. Any development of the property will require connection to the city public utilities and improvements to adjacent streets and intersections. The city and state have invested in nearby transportation systems and utilities that will provide service to the property. Additional users and rate payers for those systems will benefit the general welfare.

4. Will the new zoning facilitate the adequate provisions of transportation, water, sewerage, schools, parks, fire, police, and other public requirements?
Transportation: The proposed zoning will impact the surrounding streets, and a traffic impact study or an update of an existing study will likely be required prior to development of the property. The City Engineering Division will have to assess any traffic impacts and may require street and intersection improvements prior to or concurrent with any development of the property.
Water and Sewer: The City will be able to provide water and sewer to the property by extension of lines. The developer will pay all related costs of this utility extensions as well as systems development fees. The development is governed by an agreement that limits the provision of water service based on completion of water system improvements. The current water use rate for the existing apartments is much lower than predicted in 2008. Public Works is not concerned the proposed density will exceed the existing limitation. The applicant expects the city improvements will raise the water use cap in near future.
Schools and Parks: There may be an impact to schools from the proposed increase in the development density. It is unknown how many of the multi-family dwellings will have school age children.
Fire and Police: The subject property is currently served by the Billings Fire Department and Police Department. Public Safety Services has no concerns.

5. Will the new zoning provide adequate light and air?
The new zoning, as do all zoning districts, requires building setbacks and separations so adequate light and air are assured.

6. Will the new zoning effect motorized and non-motorized transportation?
The subject property when developed will likely add several hundred new vehicle trips per day to adjacent streets. Anticipated traffic generation greater than 500 new trips per day will require a Traffic Accessibility Study or an update to an existing study to determine the impacts and to provide for improvements to those streets and intersections. Lenhardt Square will have an interconnected system of pathways and bikeways to improve non-motorized transportation.

7. Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. Lower density development is inefficient and ineffective in recovering the costs to extend city services. There are compatible uses and zoning to the south and east.

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 district and the suitability of the property for a multi-family uses at the proposed density of 20 units per acre. Similar density exists on the first lots developed in Lenhardt Square (18 units per acre) and in Montana Sapphire Subdivision to the south (16 units per acre – Sunset Beach Apartments).

9. Will the new zoning conserve the value of buildings?
Surrounding property may increase in market value if the increased density is approved. There are no structures on the subject property. Most structures in the area are new construction.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will encourage the most appropriate use of land in this area of Billings. The proposed increase in density will make this parcel equivalent to the other PD-MF-R lots within Lenhardt Square and the surrounding subdivisions with multi-family residential zoning.