This is a zone change that will amend the City of Billings zoning map and amend the zoning regulations to create an overlay district to allow separate off-street parking regulations to apply within the East Billings Urban Renewal District (EBURD), a tax increment finance district east of the Central Business District. The EBURD Master Plan identifies existing parking requirements in this area as a major deterrent to future development. Current code establishes off-street parking standards based on use. The requirements result in a substantial portion of the developable property to be set aside for parking. As a first step in implementing the EBURD Master Plan, the Planning Division requested the County Planning Board initiate this amendment and on July 28, 2009, the Board granted the request. The Zoning Commission opened the public hearing on February 2, 2010, for this amendment and agreed to continue the hearing until March 2, 2010, so additional information could be presented regarding the various changes to City Code. The Zoning Commission conducted a public hearing on March 2, 2010, and is forwarding a recommendation of approval, and inclusion of the Clawson property in the district on a 4-0 vote. The Zoning Commission also recommends the Council consider the policy changes suggested by the B.I.R.D. in their letter dated February 17, 2010 (See Attachment #3). These policy changes are in reference to the consultant's report dated January 11, 2010 (See Attachment #1). 

The Big Sky Economic Development Authority approved funds to hire a consultant to prepare a new Parking Overlay Zone for the EBURD. In October 2009, the Planning Division organized a steering committee to help select the consultant and work with the consultant to develop amendments to the city code for the EBURD area. The consultant, Nelson Nygaard Consulting Associates, has prepared a memorandum that reviews several tools for better management of parking demands within the district (Attachment A). The memorandum recommends six major tools the city could use:
• Eliminate the off-street parking minimum requirements within and near the EBURD district
• In conjunction with the elimination of off-street parking minimum requirements, adopt a policy goal to maintain 15% vacancy of on-street parking spaces within the district.
• Adopt a parking benefit district that uses permits and/or meters to manage on-street parking demand. Revenues would be returned to the district for on-street parking improvements and other enhancements to meet parking demand.
• Adopt local requirement for unbundled parking costs.
• Adopt local requirement for certain employers to allow employees to “cash-out” parking subsidies for off-street parking spaces.
• Adopt a multi-modal transportation impact fee district.

The steering committee reviewed the 6 major tools and held a public meeting on these options on January 21, 2010. Public input was received particularly on the first two options – elimination of the off-street parking minimums and the 15% vacancy goal for on-street spaces. There was concern expressed that elimination of the off-street parking minimums would have immediate impact on surrounding streets outside the district or could allow a development to push all its parking needs on to a street within the district.

Adoption of the Zone Change and Text Amendment should not have a direct financial impact on the City. Implementation of the new amendments could have a financial impact on the City depending on the level of support needed and how implementation is decided by City officials and the Council.

The proposed district consists of approximately 85 city blocks that equals approximately 175 acres of land not including the area for streets, alleys and other right-of-ways. Planning staff reviewed the existing available on-street and off-street parking spaces within the proposed overlay district. It appears there are an existing 1,950 on-street parallel parking spaces within the district. This assumes that each block front can accommodate 10 parallel parking spaces, excluding block fronts along principal arterial streets (6th Ave North, 4th Avenue North, 1st Avenue North and Montana Avenue). If these spaces were re-striped for angled parking, this number of available on-street parking spaces would increase to 3,120. A rough estimate of existing off-street parking using the latest aerial photography was targeted at 6,600 spaces. These off-street spaces are all privately owned and may or may not be paved. Total parking within the district is approximately 8,550 or about 3,000 fewer spaces than the Central Business District. The Central Business District includes 76 city blocks and four parking garages as well as metered parking lots and on-street spaces.

The steering committee believes it is imperative to adopt the goal of maintaining a 15% vacancy rate for on-street parking as part of the elimination of the off-street parking minimum requirements within the EBURD. The Central Business District (CBD) is an example of a district that is exempt from off-street parking minimum requirements but does not have a policy in place to maintain a minimum vacancy rate for on-street parking spaces. A minimum vacancy rate is crucial to the viability and value of adjacent businesses and offices. Vacancy rates can be adjusted by continually monitoring demand and adjusting rates or setting stricter time limits for high demand locations. Higher rates or lower time limits can help spread parking demand over a larger block area, minimize long term parking for street front spaces in retail and commercial areas and generally increase vacancy rates in a localized block area. A minimum vacancy rate means that customers arriving within the district can find a parking space easily without continuously circling a block trying to find a spot near their destination.

The Central Business District (CBD) has been exempt from the off-street parking minimum requirements since at least 1972. In 1972, the CBD encompassed 20 city blocks and parking demand was minimal. As the CBD became successful and parking demand increased, the city expanded the CBD to 76 city blocks and created a revenue stream through meters and garages that helped meet that parking demand. Unfortunately, there are businesses on the edge of the CBD that have created “spill over” parking on to streets that have “free parking” with no time limits. The city does not have a policy of maintaining a 15% vacancy rate of on-street parking on a block-by-block basis within the CBD and does not have administrative authority to vary on-street parking rates based on demand. Currently, the Parking Division must apply to the City Council to raise or lower any municipal parking space rates. This has resulted in some areas of the CBD that have extremely low on-street parking vacancy rates.

The Planning Division staff supports the adoption of a mechanism and authority within the city code to create a parking benefit district for the EBURD in the future. This authority will allow the city to react quickly to any surge in on-street parking demand within the EBURD district. A parking benefit district would also allow generation of a revenue stream that could help improve access to municipal parking within the district.

The proposed overlay district does not change the underlying zoning of property, nor does it adopt regulation of on-street parking supply or a parking benefit district. These amendments must be part of other chapters of the city code including Sec. 6-1203 (Site Developments) and Sec. 24-451 (Parking Meters and Zones). These amendments have been finalized for City Council consideration at the same meeting it will consider this zone change to adopt the East Billings Parking Overlay District.

The overlay zone specifies the area where off-street parking minimum requirements will be eliminated. This includes a 7-block area outside the EBURD, between the existing CBD and the EBURD tax increment finance area. The steering committee believes the area should be included so as not to create an island that will be treated disparately from similar and surrounding property. (See Attachment B – blue highlighted area)

One surrounding property owner has requested that his property also be including in the overlay zone (See Attachment C – request from owner R. Clawson). This property is located on the east side of N 12th Street north of 6th Avenue North and is zoned Community Commercial (CC). The parcel was not included within the EBURD because it is in separate ownership from the 3 city lots that are directly adjacent to 6th Avenue North. The parcel requested for inclusion is highlighted in yellow on Attachment B. The Planning Division staff believes inclusion of this parcel is warranted given its location, size and zoning.

The Planning Division has reviewed the proposed overlay district and request from R. Clawson to include land on N 12th Street and is recommending approval to the Zoning Commission.

The Zoning Commission conducted a public hearing and is recommending approval of the zone change, and inclusion of Mr. Clawson's property within the proposed district on a 4-0 vote. The Zoning Commission also recommends the City Council consider the policy changes suggested by the B.I.R.D. letter of support dated February 17, 2010 (See Attachment #3) in reference to the consultant's report dated January 11, 2010 (See Attachment #1).

The Zoning Commission conducted a public hearing on March 2, 2010. The Planning staff gave a presentation on the proposed zone change and the companion city code amendments that will help manage public and private parking within the proposed overlay district. Matthew McDonnell, a member of the B.I.R.D., and a member of the steering committee, provided testimony in favor of the code amendments and provided an explanation of the B.I.R.D. letter to the Commission. No other testimony was received at the public hearing.

The City Council adopted the master plan for the EBURD in July 2009. The EBURD recommended changes to the site development code to better manage parking within this district. This zone change in combination with other city code amendments achieves the objectives of the master plan including:
A flexible and smart parking strategy for the study area
Provide supply responsive to the growing demand of a successful neighborhood
Provide future opportunities to generate funds for neighborhood transportation improvements
Address the need for an adequate supply of parking
Promotes multi-modal transportation