This is a special review request to locate a beer and wine license, without gaming, for City Vineyard and for a drive through service window for City Brew in a proposed 12,000 square foot building in the Cardwell Ranch Planned Development Zone, with underlying Community Commercial (PD-CC) zoning. The property is Lot 9, Block 2, of Cardwell Ranch Subdivision, 1st Filing, a 2.22 acre parcel of land. The Zoning Commission conducted a public hearing on October 6, 2015 and is forwarding a recommendation of conditional approval on a 4-0 vote based on the findings of the 3 criteria. One Zoning Commission member abstained from the vote.

Special Review applications are reviewed using criteria referenced in the Alternatives Analyzed section of this memo. Special Reviews are not zone changes on property and are tied to specific uses that are allowed in a given zoning district but are subject to a review by the City prior to the use being allowed. Special Reviews, unlike zone changes, may be conditioned to mitigate possible impacts from the use on the subject property or surrounding properties.

The City Council may:

• Approve the request
• Conditionally approve the request
• Deny the request
• Allow the applicant to withdraw the request
• Delay action on the request for up to 30 days

The Zoning Commission has reviewed this application and is recommending conditional approval. 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 because it is in a district that allows drive-through services and on premise alcohol consumption.  It conforms to the second criteria in that the proposed building, landscaping, solid waste storage facility and other site work will meet the code requirements for this zone and all other requirements of zoning that will be reviewed when applying for a building permit.  New landscaping will be installed around the building and along the street frontages. The property will only have access to Golden Valley Circle, which intersects with Grand Avenue.  It conforms to the third criteria in that it is compatible with the surrounding uses.  There is commercial development across the street and the zoning on the west and east is commercial.  It is being screened from Will James Middle School by the Frontier Cancer Center to the east and all entrances into the proposed building and all outdoor seating areas are on the west  and north sides of the proposed building.

The proposal is consistent with goals of the 2008 Growth Policy by encouraging compatible uses and avoiding leapfrogging development beyond city services.  Planning staff recommended conditions for this special review based on the approval criteria for special review uses. The Zoning Commission recommends approval with conditions as follows:

1. The special review is limited to Lot 9, Block 2, of Cardwell Ranch Subdivision, 1^st Filing, generally located at 1335 Golden Valley Circle.
2. The special review approval is for the construction of a 12,000 square foot building of which 2,160 square feet is City Brew and the remaining square footage is City Vineyard with a drive-through service and a beer & wine license without gaming license. No other use or development configuration is intended or implied by this approval.
3. Any expansion of the proposed drive-through café or the remainder of the building use greater than 10 percent of what is shown on the submitted site plan will require an additional special review approval.
4. All exterior lighting, including security lighting, shall have full cut- off shields so no part of the fixture or lens projects below the cut-off shield. The maximum height of any light pole in the outdoor areas shall be 20 feet above grade. Exceptions to this requirement are allowed for entry doorway lighting.
5. No construction or demolition activity will occur before 7 am or after 8 pm daily.
6. New trees shall not be any of the following species: Carolina poplar, other populus subspecies including any variety of aspens, elms, lombardy poplar, silver leaf poplar, weeping willow, or box elder. All installed trees will be continuously maintained and replaced as necessary by the owner.
7. Any centralized solid waste storage shall be enclosed by a wall on 3 sides and a closing gate or gates. The wall and gates for the solid waste storage shall be similar or complimentary in color to the adjacent buildings and shall be sight-obscuring. The wall and gates shall be tall enough that no part of the interior dumpster(s) is visible from the outside.
8. The site will be developed in substantial conformance with the submitted site plan including landscaping, parking and building locations.
9. Any outdoor announcement system shall be operated so it is not audible beyond the property lines.
10. The owner is allowed to have background music and un-amplified, live entertainment on the outdoor patio. Amplified, live entertainment is not allowed at any time.
11. These conditions of special review approval shall run with the land and shall apply to all current and subsequent owners, operators, managers, lease holders, heirs and assigns.
12. 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 the requested use is approved, the property will be developed and property taxes and city service fees will increase. If the requested use is denied, the property may not develop at this time and the tax base will not increase.

This is a request to allow the construction of a new building that has two businesses in it, one with drive-through service. One business will occupy a space of 2,160 square feet and the other 3,200 square feet on the main floor with an 1,800 square foot mezzanine.  The property is approximately 2.2 acres in area and is located on the south side of Grand Avenue, at its intersection with Golden Valley Circle, just east of the intersection of Grand Avenue and Zimmerman Trail. The property to the north and east of the subject property is zoned and used for commercial purposes. The property to the west is also zoned for commercial uses but is currently used for farming purposes.  The property to the south in the PD is zoned Multi-family.  It is not currently developed and is actively farmed.

A special review is required when a drive-through service is proposed adjacent to or across an alley from a residential zone. The applicant has submitted a site plan that identifies the location of the drive-through, and site upgrades including landscaping and the proposed drive-through lane. If approved, a City Brew is planning to locate in the north end of the new drive-through café building with City Vineyard occupying the space that is south of the City Brew portion. The property drive approach will be to Golden Valley Circle, which intersects with Grand Avenue. There is no direct access to Grand Avenue.  Solid waste service will be located in an enclosure to meet city code and be approved by City Solid Waste.  The site plan shows adequate parking for the drive-through café and the City Vineyard.
 
The surrounding zoning is primarily commercial except for the zoning to the south. South of this proposed development is zoning for a multi-family neighborhood. Drive-through uses adjacent to or across the alley from a residential zone can create conflicts such as noise, traffic, litter and other impacts not compatible with residential uses. All of these potential impacts can be mitigated through application of conditions of approval and adherence to an approved site plan through the special review process. The Zoning Commission recommends several conditions related to noise, lighting, solid waste management, traffic and site control.
 
Grand Avenue is a principal arterial street that carries up to 23,000 vehicle trips per day with a posted speed limit of 35 mph. There is a curb-walk sidewalk on the north side of Grand Avenue and a boulevard walk on the south side, fronting this property.  The applicant is showing boulevard walks along Golden Valley Circle.  The intersection of Grand Avenue and Golden Valley Circle is a ‘Right-in, Right-out’ intersection.  The proposed drive-through will be on the east side of the building with traffic flowing north and west around the front of the building. This flow pattern will have the least impact on the adjacent neighborhood. Traffic impact to the residentially zoned property to the south will be minimal as it would appear most of the traffic will exit the access point that is nearest additional commercial zoning to the west.    
 
This application does not meet one of the requirements of zoning which is the required separation of 600 feet between property lines from an eating and drinking place serving alcohol from any building that is predominantly used as a church or school or from a public park that contains a children’s play area.  The distance from the southeast corner of the subject property to the northwest corner of the Will James Middle School property is approximately 104 feet.  Section 27-612 (a) (1) contains exceptions that may be considered and will allow waiving this requirement if they are met.  The exceptions are that an Arterial Street separates the properties; that a building or buildings obstruct the view between the separate uses, or; there is no direct physical access between the two uses.
 
The proposed structure sits on the north part of the lot and it will not be possible to see the proposed City Brew/City Vineyard from most of the Will James Middle School building because of the intervening Frontier Cancer Center.  Also, Will James Middle School is a closed campus and has a chain link fence enclosing the grounds, except for the school's street frontage on 30^th Street West.  Therefore, this application meets two of the three exceptions and only one must be met to waive the 600 feet separation requirement

The Zoning Commission conducted a public hearing on October 6, 2015, and received the staff report and recommendation.  Planning staff explained this special review is for the drive up service window and for a beer and wine license without gaming.   One of the requirements for businesses selling beer and wine is a 600 foot separation between property lines from any building that is predominantly used as a church or school, or from a public park that contains a children’s play area.  The southern tip of this property is across a private street from the northwest corner of the property that belongs to School District #2 and is the location of Will James  Middle School.

Zoning Commission Chairman Leonard Dailey called for questions from the members of the Commission. Commissioner Members asked staff to clarify Condition #2. Chairman Dailey suggested changes to Condition of Approval #3 to read: Any expansion of the proposed drive-through café or the remainder of the building use greater than 10 percent of what is shown on the submitted site plan will require an additional special review.
 
There were questions from the Commission about multi-family uses and the 600 foot separation requirement, if there have been other waivers of the 600 foot requirement and if alcohol would be served on the outdoor patio. Staff stated that there is no separation requirement from multi-family residential uses and noted the design depicts an enclosed outdoor structure for the alcohol service. Staff noted that there have been several instances of waivers granted by the City Council. Another question was asked about the Frontier Cancer Center Building providing separation and staff responded that a 2-story building has been taken into consideration before as a visual obstruction providing separation.
 
Discussion by the Commission members followed on traffic flows and whether or not a traffic study has been conducted.  Staff said these questions should be referred to the City Engineering Division, but staff was not aware that a traffic study had been completed at this time.
 
Chairman Dailey then asked for presentation by the applicant. The applicant's agent Steve Corning stated he is developing this building on behalf of Beckie Reno, a co-owner of City Brew. “The Vineyard” concept is to create a "laboratory store" to develop retail service lines that can be expanded off of the wine.  He said the owners wish to have as much flexibility as possible in order to allow development of an environment with a broad set of offerings, and to offer a new market to Billings. The project is not intended to be a bar setting and there is no gaming, Corning stated. He also added that the agent and applicants have met with the Will James Middle School Principal and Pat Cobb, the owner of the Frontier Cancer Center, and neither had concerns with the proposal. Mr. Corning stated he would contact Superintendent Terry Bouck, and School District #2 Facility Coordinator Lou Anderson.

Public Hearing:
Chairman Dailey opened the public hearing and called for proponents or opponents of City Special Review #932.
 
One member of the public not involved in the project commented neither in support or opposition to the application but voiced concern a precedent will be set if the request is approved with the waiver of the 600 separation requirement. She said the Will James Middle School track and field are in near proximity to the subject property and she felt that the argument for the visual obstruction by the Frontier Cancer Center is questionable.
 
Applicant representative Ryan Nordlund and property owner Charlie Yegen also testified, sharing information on the orientation of the building and how it is facing away from the school property.  They commented that the nature of the business was a good fit with what the Yegens vision is for the area, and this is not a proposed night club but an up-market wine and beer establishment with a coffee shop.  It was pointed out that the Cardwell Ranch Planned Development also has private covenants and they restrictive than the city zoning requirements.

Steve Corning was given the opportunity to rebut any of the public testimony. He said that city code stipulated items that allow conditional approval of this request. The Cancer Center is 38-40 feet tall and presents a visual barrier.  He said City Vineyard and City Brew will coexist in the same building and there has never been an incident with minors in the other business locations.  He pointed out Enzos and McKenzie River Pizza that are across Grand Avenue to the northeast both serve beer and wine.

The public hearing was closed.

Commission Member Mike Boyett made a motion to approve Special Review 932 with the conditions as amended. Commission Member Dennis Ulvestad seconded the motion. The Commission approved the Motion on a 4-0 vote.  Commissioner Hawkins abstained from voting.
 
Several days after the Zoning Commission meeting and hearing, the Planning Division received a letter from School District #2 Superintendent Terry Bouck asking that the Zoning Commission (and City Council) not approve of the waiver of the 600 foot separation from Will James Middle School property.  The letter has been attached to this memo.
 

The consistency with adopted policies and plans is discussed in the Alternatives Analyzed section above.