This is a special review request to allow the location of an all-beverage liquor license in an existing restaurant, Café Italia, located at 2417 Montana Avenue. The restaurant has an existing beer and wine license (without gaming). The property is zoned Central Business District (CBD) and is legally described as Lots 9 and 10, Block 112, Billings Original Town. The lot is a total of 7,000 square feet and the restaurant space is 2,300 square feet. The owner is Computers Unlimited and Michael Schaer is the agent.  The Zoning Commission is recommending conditional approval and adoption of the findings of the 3 criteria for special review on a 4-0 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 findings of the 3 criteria. 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) the application 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 within the CBD district where an all beverage liquor license may be allowed by special review. It also appears the proposal meets all of the zoning requirements within the CBD.

The application also conforms to the second and third criteria. The zoning regulations adopted by the City Council have designated several zoning districts where on premise consumption of alcoholic beverages may be allowed. The CBD zone is one of those districts. The adjacent properties are not residential and have similar customer and employee traffic. The proposed expansion to an all beverage liquor license will be compatible with these adjacent uses. The proposal is consistent with goals of the 2008 Growth Policy, specifically the goal of encouraging uses that are compatible with the character of the adjacent land use patterns.  This site is surrounded by a mix of commercial businesses within the city limits. The CBD zone district is intended accommodate stores, hotels, governmental and cultural centers and service establishments at the central focal point of the city's arterial and transportation system. There are no direct impacts from the proposed location of the all-beverage liquor license that need to be mitigated by conditions of approval. The conditions recommended below are standard conditions applicable to all special review approvals for liquor licenses.  

The Zoning Commission is recommending the following conditions of approval: 

1. The special review approval shall be limited to Lots 9 and 10, Block 112, Billings Original Town generally located at 2417 Montana Avenue.  
2. Increases in the area where alcohol service is provided greater than 10% of the area shown on the site plan (2,300 square feet) or the addition of an outdoor patio will require additional special review approval. 
3. 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. 
4. 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.

If approved the location will need to change its local business license to add an all beverage license to the Café Italia license.  

This is a special review request to locate an all beverage liquor license in an existing restaurant, Café Italia, at 2417 Montana Avenue. The existing restaurant has a beer and wine license (no gaming) and the proposed license for all beverage service has gaming included with the license. The applicant does not intend to install gaming machines or offer gaming in the restaurant. The restaurant is approximately 2,300 square feet and is directly adjacent to the McCormick Café at 2419 Montana Avenue. The city has approved several liquor licenses within the vicinity, some for all beverage service and some for beer and wine service with gaming. West across N 25^th Street is the Carlin Hotel which has received a special review for an all beverage license with an outdoor patio on N 25^th Street. The zoning code does not require a special review for a restaurant beer and wine license (no gaming) but does require a special review for an all beverage liquor license. All locations within the Central Business District (CBD) are exempt from the local 600-foot separation requirement to churches, schools and public parks with playgrounds. Surrounding development is commercial in nature with a mix of retail sales, eating establishments, hotels and office buildings.
 
Montana Avenue is a multi-lane arterial street that is owned and maintained by the State of Montana. The 2013 traffic count data indicates an average daily traffic count of approximately 12,000 vehicles per day. This volume has increased about 4% in a 3-year period. McCormick Café offers a small off-street parking lot at the intersection with N 25^th Street. There is also on-street parking on Montana Avenue and N 25^th Street. Businesses in the CBD are not required to provide any off-street parking. There should be no appreciable increase in traffic generated by the change in liquor licenses at this location. The current restaurant will not increase its seating capacity.

The Zoning Commission held a public hearing on February 4, 2014, and received the staff recommendation and testimony from the applicant, Michael Schaer. No other testimony was received from surrounding property owners.

Mr. Schaer stated the license has been owned by his company for about 10 years but has been located in other restaurants. The license was sold to another party but the business failed and the license came back to his company. Mr. Schaer stated it would enhance the Café Italia to be able to offer a wider range of drinks with meals and to be able to serve alcohol without a meal occasionally. Mr. Schaer stated the existing beer and wine cabaret license would then be idle and his company could sell or re-locate that cabaret license in the next year. Commission member Ulvestad asked whether Mr. Schaer intended to use the gaming attached to the license. Mr. Schaer stated he does not intend to do so since that is not a service the restaurant customers expect or want at the Café Italia. He stated he could at some future date consider installing a few gaming machines. Mr. Schaer stated he has offered gaming at other locations before and it is just not profitable or what his customers expect at his restaurants. Commission member Dan Wagner asked whether parking is an issue. Mr. Schaer stated there is off-street parking next to the McCormick and on the street during the daytime. He stated after business hours he has additional off-street parking agreements for parking north of his building and south across Montana Avenue at the Depot parking lot. He stated during the day parking can be crowded but his customers have never voiced a problem.

Commission member Dan Wagner made a motion to recommend conditional approval and adoption of the findings of the 3 criteria for Special Review 916. The motion was seconded by  Commission member Barbara Hawkins. Ms. Hawkins stated she would vote in favor of the motion. She state she has been to the Café Italia and thought the addition of an all beverage service would be a nice addition. Mr. Ulvestad stated after listening to the testimony from Mr. Schaer he would be in favor of the motion as well. Chairman Dailey stated he was also in favor of the motion. The Zoning Commission voted 4-0 in favor of the motion to recommend condition approval and adoption of the 3 criteria for Special Review 916.

The Consistency with Adopted Policies or Plans is discussed in the Alternatives Analyzed section above.