This is a zone change request from Residential 6,000 (R-60) to Controlled Industrial (CI) on the south 2 acres of the north 4 acres of Lot 5
in the SW1/4 of Section 9, Township 1 South, Range 26 East, a 2-acre parcel of land generally located at 505 and 521 S Billings Blvd. A pre-application neighborhood meeting was held on May 24, 2016 at 430 S Billings Blvd. The Zoning Commission conducted a public hearing on July 5, 2016, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria on a 4 to 0 vote.

Zone Change applications are reviewed using statutory criteria referenced in the Alternatives Analyzed section of this memo. Zone Changes require approval through an ordinance. Zone Changes allow the change from one type of zoning district to another types of zoning – e.g. residential single family to residential multi-family or residential to commercial. A Zone Change cannot have conditions of approval and if approved, permits the owner to use the land for any purpose allowed within the zoning district.

 

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.

The Planning Division reviewed the zone change and the 10 criteria for the application and recommended approval to the Zoning Commission. The Zoning Commission concurred. The zoning is compatible with the existing zoning to the north and west. The proposed special review use, a wrecking yard, will need to be approved prior to the expansion on to this property. The special review will have several conditions of approval to mitigate the potential impacts on the surrounding neighbors to the south and east. The zone change will not alter the character of the adjacent
neighborhood because of site development requirements and no access will be allowed to Newman Lane. The proposed zoning is mostly compatible with the surrounding zoning and neighborhood character.

Prior to making a decision on the zone change request the City Council shall consider the following:
 
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 allow the expansion of the existing 11 acre wrecking facility directly north of the subject property. The existing land use, 2 single family dwellings, under-utilizes the 2-acre site. Re-development under the existing zoning could allow up to 12 new dwelling units, although this is unlikely given the shape of the lots, the access to a principal arterial street and the surrounding commercial development. The zoning district is compatible with the neighborhood character and land use patterns. Adjacent residential zones will be protected through the special review process for the proposed use.
• The Infill Policy encourages development of vacant and undervalued property within the city limits with emphasis on efficient use of existing city infrastructure and services.

 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 and public safety will be promoted by the proposed zoning. Re-development of the vacant land in the City will promote the public health and safety as well as the general welfare by improving the appearance of the area, reducing the number of driveway openings on the arterial street and adding value to the tax increment district. The adjacent residential neighborhood will be protected through the conditions of special review approval for the proposed use.
 
4.   Will the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The proposed zoning will have little impact on the surrounding transportation systems. The City Engineering Division will work closely with the owner to ensure any impacts are minimized.

Water and Sewer: The City will provide water and sewer to the property if requested. There will be no additional impact to the system from the proposed zoning.

Schools and Parks: Schools and parks should be unaffected by the proposed zone change.

Fire and Police: The subject property is served by city public safety services. The Police Department had no concerns with the zone change and the Fire Department will be involved in any development plan and building permit(s).
 
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?
The new zoning will have an effect on vehicle and pedestrian traffic. Removing 2 drive approaches from S Billings Blvd will improve the safety of the multi-use trail on the east side of the street. Construction and demolition on the site may disrupt traffic patterns for short periods of time.
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will allow commercial activity on an underutilized property as an infill project.
 
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 a the proposed use.
 
9.   Will the new zoning conserve the value of buildings?
The property is currently developed with 2 older single family dwellings at a density of 1 dwelling unit per acre. The existing homes can remain but the proposed development plan is to demolish the dwellings if the zoning and special review are approved.
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will permit commercial and industrial uses similar to surrounding uses to the north and west. Existing residential neighborhoods to the south and east will be protected through the application of conditions during the special review.  

 

If the zone change and special review are approved, the property will be re-developed for an expansion of Hanser's vehicle wrecking yard. The City will assess fees based on the new zoning and property value will increase based on the new development. The existing wrecking yard to the north pays about $2,593/acre in property taxes. The current property tax on the subject property is about $750/acre.

The subject property is a 2 acre property directly south of the existing Hanser's "pick-a-part" vehicle wrecking yard. The current zoning is R-60 and was previously approved for this zoning by the county in May, 1974. The zoning remained the same when it was annexed to the City in the 1980s. Property north of the subject property was changed from R-96 to R-60 and then to RMF in the mid 1970s and early 1980s. In 2004, Hanser's purchased these tracts of land and subsequently requested zone changes and special review approval to convert the property from vacant land to a vehicle wrecking facility. Hanser's completed these requests and expansion from 2004 until 2010. The current facility on the east side of S Billings Blvd. is approximately 11 acres in area. Hanser's also operates an approximately 7 acre wrecking yard, office and towing service on the west side of S Billings Blvd. directly across the street from the subject property.

The proposed zoning is CI, for the purpose of expanding the existing Hanser's wrecking yard, located immediately north of the subject property. The vehicle storage yard is primarily used as a "pick-a-part" yard where customers may come into the yard and take parts off vehicles themselves. Prior to storage in the yard, all vehicles are drained of fluids and any hazardous materials. Vehicles are not stacked and rows of vehicles are spaced apart for easy and safe access by staff and customers. The 11 acres north of the subject property has been converted from residential
zoning to CI zoning and special reviews were approved to allow this use.

The property has frontage on S Billings Blvd., a principal arterial street, on the west and frontage along Newman Lane on the east. Newman Lane is a local residential street. No access is proposed from this property to Newman Lane. Access to the subject property will be through the existing wrecking facility to the north. The two existing dwellings on the site will be demolished for the development. S Billings Blvd. currently carries about 10,000 vehicle trips per day north of King Avenue East. South of the subject property is Newman Elementary School and west across S Billings Blvd is Amend Park, a regional soccer complex. Improvements to S Billings Blvd over the past 10 years have added traffic volume capacity including a center turn lane. There is no on-street parking along this section of roadway. The existing street improvements include a 10-foot wide multi-use path on the east side of the street in addition to a curb walk on the west side. There are two existing curb cuts to the subject property. These will be removed and the boulevard will be restored when the development of the property occurs.

Zoning surrounding the property is mixed from CI to the north and west to R-70 and R-60 to the south. Normally, the uses allowed in a CI zone, would be incompatible with the existing zoning and development in the residential zones. The proposed use, a "pick-a-part" wrecking facility storage yard, will have less impact than many other allowed uses in the CI zone. The existing storage yard has been a benign use of the property and has little impact on the surrounding neighbors since it was first development more than 10 years ago. The wrecking yard will need a license from the State of Montana  as well as the zoning approval of the City Council. The proposed zone change and special review use are supported by the Southwest Corridor Task Force.
 

The Zoning Commission conducted a public hearing on July 5, 2016, and received the staff recommendation and testimony from the applicants, Ralph Hanser and Scott Hanser, and the agent, Bill Morgan from Sanderson Stewart. The Zoning Commission received a written letter opposed to the zone change. The letter was not signed and was submitted from the current tenant at 505 S Billings Boulevard. No other testimony was received.

Ralph Hanser stated the property was recently purchased but the development of the area for the expansion of the wrecking yard will come in the future when the need for additional area occurs. Mr. Hanser stated they have been in contact with the renter at 505 S Billings Blvd and working on cleaning up and improving the lot. He stated Hanser's has been in business for 51 years, employs between 80 and 90 full time employees, provides full benefits to all employees, and has an annual payroll of just about 5 million dollars. He stated there are 4 business lines at Hanser's and the expansion of the wrecking yard is the salvage business line. He stated Hanser's brings in about 60% of their annual revenue from outside the City and those dollars are put to use in the local economy through payroll and purchasing. He stated they run the salvage operation in a very clean manner and will continue to do so in the future. He stated the inventory in the salvage yard is sold throughout the United States and some parts are sold globally.

Bill Morgan stated the entire salvage yard site is governed by a state-issued Storm Water Pollution Prevention Permit that requires continuous monitoring of the site, the collection basins and control of any runoff from the site. He stated all the vehicles are drained of fluids on the main Hanser's property on the west side of S Billings Blvd before they are placed on the salvage lot on the east side. He stated the 2 driveway crossings will be removed and will improve pedestrian and bicyclist safety on the multi-use path on this side of S Billings Blvd. In response to a question from Commission member Larson, Mr. Morgan stated the new area will be graded so the south side of the property more closely matches the adjacent residential properties. He stated the existing drainage catch basin is about 16 feet below the surface so the new grading is doable.

Scott Hanser stated he runs the salvage business line and is very conscious of the neighborhood concerns with the storage yard operations. He stated that all debris is removed daily from the storage yard, and before vehicles are placed in storage, all trash or loose items are removed. He stated the yard is always clean. He stated there are about 400 vehicle models on the road today and keeping 1 vehicle of each model available for parts does take a lot of area. He stated the current 11.5-acre facility still has room for additional vehicles, but the purchase and development of this area is planned for the future when it is needed. He stated Hanser's always takes care of the property and the community in the area. In response to a question from Commission member Ulvestad, Mr. Hanser stated the expansion area will probably serve their needs for the next 15 to 20 years. Mr. Hanser stated as vehicles are exhausted of parts they are rotated out to a steel storage facility Hanser's owns on Hillcrest Road. He stated when the price of steel increases, those stored vehicles are taken to Pacific Steel for shredding and recycling.

The public hearing was closed and Chairman Dan Wagner called for a motion. Commission member Larson moved to recommend approval and adoption of the findings of the 10 criteria for the zone change. The motion was seconded by Commission member Mariska. The motion was approved on a unanimous voice vote (4-0).

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