This is a zone change request from Residential Multi-family-Restricted (RMF-R) to Community Commercial (CC) on Tract 1, Certificate of Survey 979, a 2.5 acre parcel of land, generally located at 1125 Lake Elmo Drive. The property is owned by Harvey Capital, LLC and Sanderson Stewart is the agent. A pre-application meeting was held at 231 Main Street on June 30, 2014. The Zoning Commission conducted a public hearing on August 5, 2014, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria for Zone Change 922 on a 4-0 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

If the zone change is approved, the property value will increase when it is developed. City service fees will also increase based on the new zoning for arterial construction and storm water maintenance.

The applicant is requesting to rezone a 2.5 acre parcel described as Tract 1 in C/S 979, located on the east side of Lake Elmo Drive. The property has been zoned as RMF-R since at least 1972. The owner is proposing to construct up to a 300-unit self-storage facility on the parcel. The proposed zoning allows this use in addition to other uses in the CC zoning including retail businesses, service businesses, restaurants, gas stations and convenience stores, veterinary hospitals, and general contractors with storage yards.  
 
The lots to the west are zoned Residential Multi-family (RMF) and Residential Manufactured Home (RMH) and are developed as single family and multi-family homes. Property to the south is zoned RMF and developed with single family homes. The property to the east is zoned Highway Commercial and is developed for businesses with frontage on Main Street. Property to the north is zoned RMF and developed as an apartment complex. Lake Elmo Drive is a collector street and was re-constructed recently by the city to provide a more complete street. The street carries approximately 5,500 vehicles per day at this location. The traffic volume has been steady for the past 6 years with a slight decrease in the past 2 years since Aronson Avenue (an arterial street) was connected to Alkali Creek Road. The proposed zoning and subsequent development may increase traffic slightly by about 80 additional trips per weekday on average. The Billings Heights Neighborhood Plan indicates the area between Main Street and Lake Elmo Drive should be developed for higher density residential uses or mixed 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 24^th Street West.
 
The property is not located at an intersection and may only have access on Lake Elmo Drive. The parcels to the east with frontage on Main Street are owned by different parties so it is not likely that a connection from Main Street to this parcel would occur. A drive approach for the development would occur at the time of the building permit application. There is an alley that borders the property to the south and this has an approach off Lake Elmo Drive that extends to Main Street.
 
The CC zone requires a maximum building height of 45 feet and a front property line minimum setback of 20 feet. 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. The proposed CC zone also allows residential use mixed with commercial uses. The residential uses would require the same setbacks, lot area and lot coverage as the RMF-R zone.
 
The applicant conducted a pre-application neighborhood meeting on June 30, 2014. Ten surrounding property owners attended and concerns were voiced about the development of the property related to drainage, fencing and field-type storage of boats and RVs. The developer has stated in response that the property will have security fencing and up to an 8-foot high wrought iron style fence on the Lake Elmo Drive frontage. The developer stated there will not be an area for boat and RV storage. The developer stated the project will meet the city’s required storm water management requirements. The developer stated the buildings will be single-story with metal siding. The surrounding owners voiced a strong objection to the development of other allowed uses in the CC zoning. A synopsis of the meeting and list of attendees is in Attachment D. No surrounding property owners contacted the Planning Division staff prior to the Zoning Commission public hearing.
 
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 5, 2014, and received the staff recommendation and testimony from the applicant's agent, Lauren Waterton of Sanderson Stewart. There was no other testimony.

Ms. Waterton stated the proposed zoning is needed for the intended use as a self-storage facility (300 units). She stated the owner, Mr. Harvey, has built several of these facilities in Billings. She stated the site will not have a management office on site but will be managed by Mr. Harvey's storage facility on Wicks Lane. The entire site will have 24-hour secure access for customers, have a perimeter fence and will comply with all the site development standards for the 2.5 acre site.
There was no other testimony. The Zoning Commission closed the public hearing. Commission member Dennis Ulvestad made a motion to recommend approval and adoption of the findings of the 10 criteria. The motion was seconded by Dan Wagner. The Zoning Commission voted 4-0 in favor of the motion

The Planning Division has reviewed the application and recommended approval to the Zoning Commission based on the ten (10) criteria for zone changes. The Zoning Commission concurred with this recommendation. The subject property is not located at the intersection of arterial streets but is proposed for a location where commercial uses – such as the proposed use – may provide a needed service to the surrounding residents. The street carries a modicum of average daily traffic and the proposed use should not have an impact on the street carrying capacity. There are higher density residential uses to the north and single family uses to the south. 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.

Prior to any decision on the zone change by the City Council, it shall consider the findings of 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 RMF-R zoning and this is consistent with the neighborhood character and the planned development of areas between Main Street and Lake Elmo Drive. The proposed zoning is compatible with the existing uses on Lake Elmo Drive and Main Street.   

• 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 service businesses to locate here. 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 sewer to the property by extension of those utilities from Lake Elmo Drive. The Billings Heights Water District will provide water service.   

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 of traffic impacts is not possible with certainty at this time. In general, the proposed development of personal storage units generates little additional daily traffic. The re-construction of Lake Elmo Drive included a 10-foot wide multi-use path on the east side of the street. Any new drive approach will interrupt this pathway but should not significantly impact its usability.  
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will provide an area to locate services businesses in an area where none currently exist.  
 
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 here.
 
9.   Will the new zoning conserve the value of buildings?
The lot is currently vacant and used for casual recreation by area residents. Development of the site will add property value and may increase the adjacent property values. 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.