This is a request to allow the construction of a 3-plex multi-family dwelling in a Residential 6,000 (R-60) zone on Lots 25-27, Block 3, State Realty Subdivision, a 9,375 square foot parcel of land.  The property is owned by Dave Hagstrom. The applicant proposes to construct one 3-plex on the property at the intersection of Jefferson Street and State Avenue. The Zoning Commission conducted a public hearing on August 6, 2013, and is forwarding a recommendation of conditional approval based on the 3 criteria for special reviews on a 2-1 vote.

The Planning Division reviewed the application and recommended conditional approval to the Zoning Commission. The Zoning Commission concurred with this recommendation based on the 3 criteria for special reviews. Before a recommendation of approval or conditional approval can 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 because the property is in a district that allows multi-family dwellings by special review. The proposed dwellings meet the required setbacks, lot coverage maximum and building height. The applicant is proposing to use the alley as a primary access for the off-street parking for the 3 dwelling units. Landscaping is proposed for the remainder of the site. The application is conforming to the purposes of the regulations, the 2008 Growth Policy and the Billings Infill Policy (December 2011), specifically the recommendation to encourage re-development of under-utilized land, encouraging compatible uses and avoiding leapfrogging development beyond city services.  

The application also conforms to the third criteria and conditions of approval are recommended to mitigate any potential impacts to surrounding property.  The Zoning Commission is recommending conditions for this special review based on the approval criteria for special review uses.

PROPOSED CONDITIONS
1. The special review approval is for Lots 25-27, Block 3, State Realty Subdivision, generally located at 3 Jefferson Street.
2. The special review approval is for the construction of 1, 3-plex dwelling and no other use or development configuration is intended or implied by this approval.    
3. Any expansion of the proposed building or off-street parking greater than 10 percent of  what is shown on the submitted site plan will require an additional special review  approval.
4. All exterior lighting, including security lighting shall have full cut- off shields so no part of the fixture or lens projects below the cut-off shield. The  maximum height of any light pole in the outdoor areas shall be 15 feet above grade. Exceptions to this requirement are allowed for porch or entry doorway lighting.
5. No construction or demolition activity will occur before 7 am or after 8 pm daily.
6. The applicant/owner will remove the shrub/tree on the northwest corner of the property and properly maintain and trim the existing trees in the boulevard on Jefferson Street. Any new trees planted shall not be any of the following species: Carolina poplar, other populus subspecies including any variety of aspens, elms, lombardy poplar, silver leaf poplar, weeping willow, or box elder. The trees will be continuously maintained and replaced as necessary by the owner.
7. Any centralized solid waste storage shall be enclosed by a wall on 3 sides and a closing  gate or gates. The wall and gates for the solid waste storage shall be similar or  complimentary in color to the adjacent buildings and shall be sight-obscuring. The wall  and gates shall be tall enough that no part of the interior dumpster(s) is visible from the  outside. 
8. The site will be developed in substantial conformance with the submitted site plan  including landscaping, parking and building locations.
9. 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. 
10. 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.

Approval of the special review will likely increase the property value when re-development occurs. This will raise the city's tax base.

This is a request to allow the development of a 3-plex multi-family dwelling in an R-60 zone. The city requires a special review for this use in the R-60 zoning district. The applicant is proposing the 3-plex on the 9,375 square foot parcel at the corner of Jefferson Street and State Avenue. The property is currently developed with 1 single family home constructed in 1920. The applicant intends to demolish the existing home and construct a new 3-plex dwelling with off-street parking from the alley to the east. The new building will be constructed 70 feet from the centerline of State Avenue, a minor arterial street and meet the required front setback from Jefferson Street. The neighborhood consists of single family and 2-family homes and is zoned residential throughout the area. Mr. Hagstrom states he intends to mirror the existing home architecture in the neighborhood by providing a 6/12 pitched roof and a covered front porch for each unit. The applicant intends to build 3-bedroom units to better accommodate families. The applicant will have to pave or improve the existing alley to provide the off street parking from the alley. Solid waste service will be in the alley and may require additional collection barrels from the Solid Waste Division.

The zoning surrounding the site is uniform with R-60 for all surrounding properties. The development pattern has not changed in the past 50 years in this neighborhood. There are a few nodes of commercial activity where streets intersect State Avenue and then larger commercial areas on State Avenue close to the intersection with 1st Avenue South. Single family and 2-family dwellings are pre-dominant in the area although there are a few multi-family dwellings within 2 blocks of this property. A 3-family dwelling is not out of character for this neighborhood and is supported by the city’s Infill Policy and 2008 Growth Policy.

The Zoning Commission conducted a public hearing on August 6, 2013, and received the Planning staff report and testimony from the applicant, Dave Hagstrom. Lynda Woods of 9 Jefferson Street, Doug Beringer of 2 Jefferson Street, and Randy LaFrance of 28 Adams Street testified in opposition to the special review. The Zoning Commission concurred with the Planning staff recommendation of conditional approval based on the findings of the 3 criteria for special reviews.

Mr. Hagstrom testified the proposal supports several goals of the 2008 Growth Policy and the Infill Policy. He stated the 3-plex will be in character with the existing neighborhood and the style and roof pitch will be similar to the surrounding residences. He stated the new building will also have a  front porch to encourage the new residents to spend time with the existing neighbors. Mr. Hagstrom said this project is supported by the goals of the Infill Policy by reducing sprawl and provides more affordable housing in this central area of Billings. He stated he will set the rents so families that make 60% or less of the median income for Billings can afford to live in the new building. He stated the units will be 3 bedrooms which will accommodate small to medium size families. Mr. Hagstrom stated he has done a number of similar infill projects in Billings Southside and predicts this one will also be successful. Mr. Hagstrom stated he has spoken with several of the neighbors about their concerns over parking and property values. He stated he is providing 6 off-street parking spaces that will have access from the alley to the east. He stated this is more than the required off-street parking for a 3-plex dwelling. He stated in his experience his infill projects have not reduced property values but instead have increased property values in the area.

Commission member Dan Wagner asked about the time line for starting and completing the project. Mr. Hagstrom stated he would like to get started as soon as the Council approves the request and he would likely finish within 1 year of permit approval. Member Mike Boyett asked whether 6 off-street parking spaces would be enough for the 3-plex. Mr. Hagstrom stated from his experience building these infill projects, 6 spaces would be more than enough. Mr. Hagstrom stated he built a similar project with 8 bedrooms and he provided 5 off-street parking spaces. He stated these spaces are hardly ever used for parking but are used for outdoor recreation by the children living in the apartments. Mr. Hagstrom stated he is aware of the on-street parking congestion but this condition is the result of other properties not providing off-street parking. He stated few of these older homes have driveways off the street and have not built parking spaces off the alley. Chairman Leonard Dailey Jr. asked whether Mr. Hagstrom was comfortable with the proposed conditions. Mr. Hagstrom stated he had already removed the shrub on the northwest corner as required by condition #6 and he was in agreement with the other conditions. Chairman Dailey asked which way the front doors will face and whether the structure will have a basement. Mr. Hagstrom stated the front doors will face State Avenue and it will have a basement but no living space below grade. He stated the basement will be for storage and utilities.

Lynda Woods of 9 Jefferson Street testified in opposition to the application. She stated she opposed based on the existing density of the neighborhood, the on-street traffic congestion and the effect the 3-plex will have on the re-sale value of her property. Ms. Woods presented the Commission with a petition signed by 28 surrounding residents opposed to the special review and with recent photos of the on-street parking congestion on Jefferson Street. Ms. Woods also displayed a map showing the lots in opposition to the application. Ms. Woods stated while there are a few duplexes and triplexes in the neighborhood, there are many more nonconforming 2-family dwellings that owners have converted but are not shown on the tax records or have 2nd addresses. She stated this has resulted in a very dense neighborhood with little on-street parking available for residents and guests. Ms. Woods stated she thought a single family or two-family dwelling would be a better option for Mr. Hagstrom's lot given the existing conditions. Ms. Woods stated 3 families would over burden the neighborhood and all of the impact would be felt by the neighbors to the south of this lot. Ms. Woods stated she does not doubt a new 3-plex will raise property values, but would have a negative effect on the marketability of the surrounding residences. A 3-unit apartment building would be considered a commercial use and would not enhance the market demand for her home. Ms. Woods stated this neighborhood is different than other areas since most residences are owner-occupied. She stated 21 of the 24 properties she visited while circulating her petition were owner occupied. She stated 21 of the 28 people who signed the petition opposed to the special review were homeowners. She stated not one owner within 300 feet is here in support of the special review. Chairman Dailey asked if there would be more impact to on-street parking congestion from 3 units than from 2 units on this lot. Ms. Woods stated the on-street parking is already congested but believed a 2-family dwelling would have less impact on the parking. Chairman Dailey asked whether Ms. Wood's property had any off-street parking. Ms. Woods stated there were a couple of parking spaces behind her house parallel to the alley but she does not use them. Ms. Woods stated her roommate does park off the alley. Ms. Woods stated that many homes on Jefferson Street do not have driveways off the street and few have any parking off the alley so everyone has to park on the street.

Doug Beringer of 2 Jefferson Street stated he has lived across the street from this property for 26 years and worked for the Solid Waste Division for 36 years. He stated he does have parking off the alley but it is a narrow turn radius to his parking spots. He stated many times he parks on the street. He stated sometimes he has to park at his sister's house a few blocks away and walk home. He stated some guests and residents have parked vehicles in front of his house and left them there for 10 to 12 days. He stated he is opposed to the special review because of the on-street parking situation. Mr. Beringer stated there was not room for 3 more families in this neighborhood.

Mr. Randy LaFrance of 28 Adams Street stated he was opposed to the application because parking is already too congested on Jefferson Street. Mr. LaFrance stated he thought the parking spaces shown on the site plan were too small for 6 cars. He stated if each unit had 2 vehicles that would leave no off-street guest parking spaces so guests would have to park on Jefferson Street. He stated the garbage bins in the alley are overflowing most of the time. He stated the applicant should provide a separate on-site dumpster. He stated all of the homes in the area are owner occupied and they have invested many thousands of dollars in maintenance and repairs. He stated the new residents would not have a vested interest in maintaining the property. He state rentals are not common in the neighborhood so this 3-family dwelling would be out of place. He stated a single family or 2-family dwelling would be a better choice on this corner lot.

Mr. Hagstrom provided rebuttal to the Commission. He stated the off-street parking spaces are the required minimum dimensions by the City Engineering Division. He stated 1 or 2 additional garbage barrels in the alley should be sufficient for the 3-plex. He stated the normal number of barrels in an alley is 1 barrel for every 3 dwelling units so 1 should be sufficient. Mr. Hagstrom stated he will likely limit the number of vehicles per unit to 2 within the rental agreements with the families. He stated this will ensure the 6 spaces will not be less than the number of vehicles for his tenants. He stated he understands the parking congestion issue but he is providing off-street parking for his 3 units. He stated he will provide the addition garbage barrels in the alley.

Chairman Dailey closed the public hearing and Member Dan Wagner made a motion to recommend denial of the special review based on his finding the proposal is not compatible with the existing neighborhood. Member Boyett seconded the motion. Member Wagner stated a 2 family dwelling would be a better fit on this site in this neighborhood. He stated he was concerned with the lack of off-street guest parking and the lack of an on-site dumpster for the tenants use. Chairman Dailey stated he did not believe the impact from a duplex would have less of an impact to the existing congested parking or overburden garbage collection. He stated he agreed with the staff's findings of the 3 criteria and recommendation of conditional approval. He stated he thought the 3-plex proposal was an agreeable development on this lot. The Commission voted 1 in favor and 2 opposed to recommend denial of the special review. Chairman Dailey called for another motion. Member Boyett moved to recommend conditional approval and adopt the findings of the 3 criteria as proposed by Planning staff. The motion was seconded by Member Wagner. Member Boyett stated the neighbors acknowledge the parking congestion exists and the garbage collection barrels are already not sufficient. He stated this situation should not burden this property owner. Member Boyett thought the proposed 3-plex would fit in this area and would not add more impact than a duplex. The motion was approved on a 2-1 vote with Member Wagner opposed.

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