This is a zone change request from Neighborhood Commercial (NC) to Community Commercial (CC) on a 1.6 acre parcel described as C/S 1706 Tract 1 on the south east corner of the intersection of Hilltop Road and Bench Boulevard. The property is owned by Ryan and Jodi Rookhuizen and Sanderson Stewart is the agent. The owners conducted a pre-application neighborhood meeting on June 24, 2013. The pre-application meeting notes are included as Attachment C. The Zoning Commission conducted a public hearing on August 6, 2013, and is forwarding a recommendation of approval based on the findings of 10 criteria for zone changes 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

Approval of the zone change will increase the service fees for this vacant parcel.

The applicant is requesting to rezone a 1.6 acre parcel described as Tract 1 in C/S 1706. The property was re-zoned from R-70 to RMF in 1976 and then re-zoned to NC in 2006. Both of these zone changes were done in the County. The property was recently annexed to the city. The property has 1 single family dwelling on the southern half of the parcel. There are no development plans for the property by the current owners. The current application would allow development of the other commercial uses that are currently limited by the NC zone. For example, the NC zone does not allow restaurants that serve alcohol and does not allow development of personal storage units (mini-storage). In addition, some types of retail businesses and service businesses are not allowed in the NC zone such as veterinary hospitals that provide boarding, general contractors with storage yards, specialized manufacturing, and lumber, hardware and paint stores. The owners have stated the need to market the property for a wider variety of commercial and retail uses to match the expected traffic increases when Bench Boulevard is improved to a full arterial street in the near future.

The lots to the west are zoned Residential-7,000 and are developed as single family homes in the Conway Subdivision. Property to the south is zoned RMH and developed with single family homes in the Two Moon Subdivision. The property to the east is in the County and zoned RMF. There are two 4-plexes and one 12-plex on these lots that were constructed in the late 1970s. The two 4-plexes were recently remodeled (2011). The property north across Yellowstone River Road (Hilltop Road changes its name to Yellowstone River Road east of the Bench Boulevard intersection) is zoned CC and is developed with 3 single family dwellings and has a storage yard for the Gainan’s Garden Center. The property may be re-developed for CC uses after completion of the Bench Boulevard improvements. Bench Boulevard, Hilltop Road and Yellowstone River Road are arterial streets and currently handle a large volume of traffic – approximately 18,000 vehicle trips per day. Bench Boulevard will be developed in the near future to handle a greater volume of traffic. The Billings Heights Neighborhood Plan indicates the intersection should be used for a mixture of commercial and 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 property is located at an intersection and could have access points on both Bench Boulevard and Yellowstone River Road. The existing residence enters from Bench Boulevard. The property recently sold portions of the lot to the City of Billings for the intersection improvements. The lot is less than the original 1.6 acres due to this sale but the amended survey has not yet been recorded. A commercial re-development would generate additional traffic at this intersection but the access to the adjacent streets would be controlled by the City Engineering Division and the Montana Department of Transportation. A traffic analysis will likely be required to ensure the proper location of any new access points and for determining any mitigation necessary for the additional traffic. Bench Boulevard and Yellowstone River Road have the capacity to handle any additional traffic.

The CC zone requires a maximum building height of 45 feet and a front property line minimum setback of 20 feet. The NC zone requires a lower building height of 34 feet – the same height restriction for most residential zones. 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. The property is large enough to accommodate this additional setback. A new section of the zoning code – 27-612(e) - requires any new commercial development adjacent to a residential zone to provide additional screening and buffering to those residential zones including limiting outdoor lighting, signage, waste collection areas and screening of mechanical equipment. These requirements will apply to any commercial development on this property. The CC zone could allow the addition of a restaurant with alcoholic beverage service with special review approval. Any alcoholic beverage service on the property would also require a waiver of the 600 foot separation from Billings Heights Park, north and west across Bench Boulevard. Any liquor license with gaming attached would also require a special review approval. The proposed CC zone also allows residential use to the same density allowed by the RMF-R zone.

The applicant conducted a pre-application neighborhood meeting on June 24, 2013. Six surrounding property owners attended and concerns were voiced about the development of the property and the addition of commercial lighting, noise generation and new traffic conflicts. The surrounding owners voiced a strong objection to the development of a gas station with the new zoning. The current zoning allows the development of a convenience store with gas pumps but does not allow just a gas station without a convenience store. The current zoning also does not allow an auto repair shop. The proposed zoning of CC would allow any combination of these uses either together or separately. The neighborhood meeting minutes indicate the surrounding owners that attended were not supportive of the proposed zone change. A synopsis of the meeting and list of attendees is in Attachment D. Property owner Kirk Hansen of 740 Conway contacted Planning staff prior to the public hearing to verify information on allowed uses in the NC zone. 

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 is established neighborhoods. The proposed zoning is compatible with the adjacent zoning and existing land uses. In addition, Section 27-612(e) of the zoning code requires additional screening and buffering of any new commercial uses from the directly adjacent residential neighborhoods.

The Zoning Commission conducted a public hearing on August 6, 2013, and received the Planning staff recommendation and testimony from the the agent, Lauren Waterton of Sanderson Stewart. Testimony against the zone change was received from Kirk Hansen of 740 Conway street, Jim Welzenbach, owner of the 12-plex at 836 Yellowstone River Road, Jeff Miller, 741 Conway Street, and Noah Foley of 745 Conway Street. 
Lauren Waterton, testified in favor of the zone change. She stated the current owner has no specific development plan for the property. She stated the proposed CC zone would allow the market to respond to the Bench Boulevard and Hilltop intersection improvements by allowing a greater range of allowed uses on the property. She stated there will be pedestrian access across all legs of the new round-about. Chairman Dailey asked whether she knew when the street improvements would be completed. Ms. Waterton stated she was not sure when the improvements would be completed.
Mr. Kirk Hansen of 740 Conway Street testified in opposition to the zone change. He stated when the Gainan's zone change on the north side of Hilltop was proposed, Mick Gainan stated it was for additional greenhouses and nursery area. He stated the neighborhood was not opposed to that zone change because of the surety of the development plan. Mr. Hansen stated this was not the case for this property. He stated the improvements to Bench Boulevard should not lead to the same kind of development pattern as Grand Avenue of King Avenue. He stated the area is primarily residential and the addition of a gas station, casino, mini-storage units, or other intense commercial uses is incompatible with the existing neighborhood. Mr. Hansen stated he purchased his home with the idea the area would be stable for family activities. He stated the Bench Boulevard improvements will be a benefit to the area but the neighborhood should not sacrifice those benefits for an intense commercial use on this corner. He stated the neighborhood did not object to the County zone change in 2006 to NC because the former owner had a development plan for professional offices. He stated the neighborhood was under the impression a gas station would not be allowed by the NC. Mr. Hansen stated he has since confirmed with the Planning staff that gas stations with convenience stores are allowed in the NC zone. He stated he has no concerns the current owner will be a good developer and do the right thing. He stated he is concerned about future owners and what their development plans might include.
Jim Welzenbach, owner of the 12-plex at 836 Yellowstone River Road testified in opposition to the zone change. He stated the NC zone is the appropriate zone for this lot. He stated all the market possibilities for this lot can be fulfilled with the NC zoning. He stated the CC zone could allow casinos and higher intensity uses without any benefit to the residential uses in the area. He stated 121 mini-storage units would be an inappropriate use on this corner, as would a bar or casino.
Mr. Jeff Miller of 741 Conway Street testified in opposition to the zone change. He stated the Bench Boulevard improvement project is now delayed because they found a buried ditch drainage pipe in Hilltop just north of his property. He stated the engineers need to figure out what to do with this pipe. He stated his biggest concern with the CC zone is the potential impact to the residential areas. He stated all of the businesses in the area are 8 to 5 businesses so the neighbors to not have to contend with after hours traffic, lights and neon signs. He stated the NC zone is an appropriate zone for this corner.
Noah Foley of 745 Conway testified in opposition to the zone change. He stated his biggest concern is the development of a destination business that will bring in even more traffic to Bench Boulevard and Hilltop Road. He stated he works out of town 2 weeks every month and he has had 2 break-ins in the past few months. He stated he was concerned with development of a business that will attract more crime to the area.
Lauren Waterton provided rebuttal. She stated property values should not be effected by the proposed zone change. A new development may effect property values but any new construction will need to meet all the development regulations so it should be properly screened and buffered from the residential uses. She stated Bench Boulevard is being designed to handle a large increase in traffic volume. She stated it is likely any development on the lot will take advantage of this increase in existing traffic and not create additional traffic on the adjacent streets. She stated any new development would not be a crime generator per se.
Chairman Dailey closed the public hearing. Member Wagner made a motion to recommend approval of the zone change and adopt the findings of the 10 criteria for this zone change as recommended by Planning staff. The motion was seconded by Member Boyett. Member Boyett stated he was concerned there was no development plan with this zone change. Chairman Dailey stated if there was development there was no way the city could bind the owner to that specific proposal with a zone change. Chairman Dailey stated this was true of the Gainan's property as well, that is already zoned CC. Chairman Dailey stated the market will respond to the location when the improvements are completed. He stated he was in favor of the zone change for the reasons stated in the 10 criteria. The motion was approved on a 3-0 vote.
The Zoning Commission voted 3 to 0 to recommend approval of the zone change based on the findings of the 10 criteria for zone changes.

The Planning Division reviewed the application and recommended approval based on the findings of the ten (10) criteria for zone changes. The subject property is located at the intersection of 2 principal arterial streets that carry over 18,000 vehicle trips per day. There are higher density residential uses to the east. The current owner has no development plans at this time. Development of the site will likely occur after Bench Boulevard is improved by the City and the Montana Department of Transportation. The uses allowed within the CC zoning are compatible with the surrounding zoning and neighborhood character. Some uses in the CC zone would only be allowed by special review approval such as on-premise service of alcoholic beverages. Any 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. A valid protest against the zone change has been received and the City Council will need a super majority (2/3) vote in favor of the zone change to approve the request.
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 more land uses than currently allowed by the NC zoning and this is consistent with the neighborhood character and the planned development of Bench Boulevard. The proposed zoning is compatible with the existing uses on Bench Boulevard and Hilltop Road. 
• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6) 
The existing zoning is restrictive of the types of businesses that could be located at this arterial intersection. The proposed zoning will allow more businesses and services to be located near existing residents.

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. 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. Development of the vacant property will be done in accordance with current site development regulations that provide more screening and buffering for adjacent residential uses. These new requirement were adopted in 2012. This will improve public health and safety and the general welfare of the adjacent neighbors.

4. Will the new zoning will 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, and 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 will be able to provide water and sewer to the property by extension of those utilities from Bench Boulevard.  
Schools and Parks:  There should not be any impact to schools from the proposed zone change. However, any 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. Commercial development of the site may increase calls for service and change the nature of those calls for service.

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 property is dependent on the specific uses within the development. A development plan has not yet been finalized so prediction on effects at the intersection is not possible at this time. Street improvements for Bench Boulevard that are under construction will include sidewalks and/or multi-use paths. Pedestrian safety will be enhanced at this location. The 2011 Bikeway and Trail Master Plan includes a short-range on-street bike lane for both Bench Boulevard and Hilltop Road.

7. Will the new zoning 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.

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. The level of existing traffic along with the number of existing and planned residential developments in the area will likely support the types of businesses likely to locate at this corner.

9. Will the new zoning conserve the value of buildings?
The existing home and structures on the lot should be conserved with the new zoning. All of the existing uses are conforming to the proposed CC zoning. Surrounding buildings should be conserved when development occurs on the site by adding property value to the market.

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 at this intersection.