This is a zone change from Residential 9,600 (R-96) to Residential 6,000 (R-60) on Lots 15-19, Block 1, College Subdivision, 1st Filing, a 17,500 square foot parcel of land, for an existing 6-plex multi-family dwelling, generally located at 1229-1239 Poly Drive. The City Council initiated this zone change on January 12, 2015 at the request of the property owner. The Zoning Commission conducted a public hearing on March 3, 2015, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria on a 4 to 0 vote.

City Council may:

• Approve the zone change and adopt the findings of the 10 criteria as recommended by the Zoning Commission ;
• Deny the zone change and adopt different findings of the 10 criteria;
• Allow the applicant to withdraw the zone change; or
• Delay action on the zone change request for up to 30 days.

If the zone change is approved the property will become more financially secure and sustain its property value in the future.

The City has processed at least 7 zone changes in the general area of this property most from the R-96 zone to a zoning district that allows for two-family or multi-family dwellings. The Hiland Shadows Subdivision was re-zoned to Planned Development in the 1980s to allow for two-family and four-family dwellings. Further east, the city has approved zone changes on Parkhill Drive and Beverly Hill Boulevard for similar developments. The Pines Condominiums (three, two-family dwellings) at 910 Poly Drive were approved through a special review process in 1990, although the zoning remains R-96. The Sennet Condominiums at 918 – 928 Poly Drive (two, three-family dwellings) was approved through a variance in 1984. These two projects were approved through non-zone change processes that are no longer used. The special review and variance processes must be for allowed uses within the existing zoning district and cannot be used
to allow prohibited uses.

The City Council recently approved Zone Change 926 (R-96 to R-60) for another 6-unit multi-family dwelling in the College Subdivision constructed just prior to the city-wide re-zoning in 1972. Mr. Gustafson, owner of this property, requested a zone change in 1966 from R1 (single family) to R3 (multi-family). That request was denied, however the City Council granted special permission to construct the 6-unit, multi-family dwelling although the zoning was unchanged. This was allowed under the zoning regulations prior to 1972. The current zoning regulations do not allow multi-family by special review in the R-96 zoning district. The city-wide re-zoning resulted in placing Mr. Gustafson's property in a legal nonconforming use status. Section 27-400 of the zoning regulations allows legal
nonconforming uses to continue, but does not allow those uses to be re-built or re-constructed if they are damaged by more than 50% of the replacement value at the time of destruction.

The Planning Division could not issue a "re-build" letter for this property except for 1 (one) single family residence. The owner wishes to secure his property investment to re-build a 6-unit multi-family dwelling if necessary in the future. The proposed zoning and lot area would allow this use to continue and to be re-built in the future. Although the zoning surrounding this property is all R-96, many of the lots were developed prior to the 1972 zoning. There are several 2-family dwellings as well as lots of less than 9,600 square feet within the immediate area. During the review of the previous City Council initiated zone change for property on 13th Street West, Planning staff research showed approximately 30% of the lots in the College Subdivision, 1st Filing, were non-conforming
for uses such as 2-family or multi-family dwellings. The College Subdivision consists of three filings that developed in 1945 and 1946. Many homes were built with “in-law” living quarters in the basement or developed with a front house and rear house to accommodate relatives. The post-war housing demand saw this type of development throughout the city.

The Zoning Commission conducted a public hearing on March 3, 2015, and received the staff recommendation and testimony from the property owner. No other testimony was received.

The Zoning Commission is recommending approval and adoption of the findings of the 10 criteria on a 4 to 0 vote.

The Planning Division reviewed the zone change and recommended approval based on the findings of the 10 criteria. The Zoning Commission concurred with this recommendation. The property is within an established neighborhood of mixed housing types and choices. The current building is well maintained and has not caused traffic, parking, noise or other neighborhood challenges in the area. Poly Drive is a high volume minor arterial carrying approximately 10,000 vehicles per day in this area just east of the signal controlled intersection with 13th Street West, also a minor arterial street. Veteran's Park is 1 block to the west along with Rocky Mountain College just west of the park.

The 2008 Growth Policy encourages predictable land use decisions that are compatible within neighborhoods and to preserve the neighborhood integrity. The existing zoning is not compatible with the existing neighborhood since it does not allow an existing established apartment complex to be re-built if necessary. The mixture of housing types in the College Subdivision makes this area stable, affordable, and marketable.

Disinvestment can occur in areas where a homogenous zoning district does not match the existing development. Legal nonconforming uses are difficult to finance, sell or insure. Most often these properties sell to a cash buyer who makes an offer based on their assumption of substantial risk since the property cannot be re-built if destroyed. Investment in the nonconforming use is diminished over time and disrepair and deferred maintenance becomes apparent. This situation also leads to diminishing market value for surrounding properties that may be conforming to the zoning but near the nonconforming use. The proposed zoning of R-60, will allow the use to become a conforming use so it will continue to be part of the neighborhood now and in the future. Any re-development of the property requires compliance with the new zoning and the ability to meet site development requirements and traffic safety standards.

Prior to any decision on the request, the City Council shall consider the following findings of the 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 the existing multi-family apartment to continue in conformity with the zoning. The development has fit in well with the existing neighborhood for more than 40 years and continued investment in the property will preserve the neighborhood integrity. The proposed zoning, R-60,  is consistent with the neighborhood character and land use patterns on Poly Drive.  

• More housing and business choices with each neighborhood. (Land Use Element Goal, page 6) 

The existing zoning is restricted to single-family only residential uses. The proposed zoning will allow the retention of the multi-family apartments on Poly Drive. This will allow the housing choice in this neighborhood to remain diverse. 
 
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.
 
3.   Whether the new zoning will promote public health, public safety and general welfare?
Public health, safety and general welfare will be promoted by the proposed zoning. The nonconforming zoning discourages investment in the property.
 
4.   Will the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation:  The proposed zoning should have no impact on transportation. 

Water and Sewer:  The City provides water and sewer services to the property. 
 
Schools and Parks:  There should not be any impact to schools from the proposed zone change.

Fire and Police:  The subject property is currently served by the city Public Safety Services.
 
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 the apartments will not change since the maximum number of units on the lot has existed since 1967. 
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The new zoning will allow investment in the property increasing property value over time.
 
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 district and the suitability of the property for multi-family uses. The location of the property on a minor arterial street near a signal controlled intersection makes it suitable for this use.
 
9.   Will the new zoning conserve the value of buildings?
The existing multi-family apartment value will be conserved by the new zoning.
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit an existing housing type in the neighborhood to continue and is the most appropriate use of the property.