This is a zone change request from Residential 7,000 (R-70) to Residential 6,000 (R-60) on Lot 10A, Block 5 of Curtis Subdivision, 3rd Filing, a 23,800 square foot parcel of land. A pre-application neighborhood meeting was held at Territorial Landworks, 3333 2nd Ave. North on November 11, 2016. The owner is Shahan Enterprises. The Zoning Commission conducted a public hearing on January 3, 2017, and is forwarding a recommendation of approval and adoption of the findings of the 10 criteria.

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 staff reviewed the request and recommended approval based on the proposed findings of the 10 criteria for zone changes. The Zoning Commission concurred. The multi-family dwellings have existed within this neighborhood for over 60 years and are well maintained. The proposed zoning will stabilize the property value, allow for future investment in maintenance without risk to the property owners, provides a needed housing choice in this area of Billings, and is supported by the City's Infill Policy and 2016 Growth Policy. The guidelines for Strong Neighborhoods and Home Base in the 2016 Growth Policy include: "Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels, walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, good will and social interaction, a mix of housing types that meet the needs of a diverse population is important, and homes that are safe and sound support a healthy community". The proposed zone change is supported by these guidelines. The proposed zoning would allow the property to be converted to a unit-ownership in the future, allowing for more homeownership in the neighborhood.

Prior to making a decision on the requested zone change, 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 guidelines of the 2016 Growth Policy:

• Home Base: A mix of housing types that meet the needs of a diverse population is important; Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe;

The proposed zoning would allow the existing 4-plex dwellings to be conforming to the zoning. The current zoning discourages investment in the property for regular maintenance or improvements since the structures could not be re-built. Financing improvements or sale of the property is unnecessarily complicated by the current zoning. The property provides a desirable and needed housing choice in the area dominated by single family and two-family dwellings. The neighborhood is stable, safe and conveniently located near services.

• Strong Neighborhoods: Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels; Walkable neighborhoods that permit convenient destinations such as neighborhood services, open space, parks, schools and public gathering spaces foster health, good will and social interaction; Neighborhoods that are safe and attractive and provide essential services are much desired.

The proposed zoning will allow the current 4-plexes to remain and the new owner to convert the apartments to a unit-ownership development. Each resident would own their dwelling and a part of the common area of the property. The property is within walking distance of services along Grand Avenue and 13^th Street West. The apartments at this location have fit in well with the neighborhood for over 60 years.  
 
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. The current zoning of the parcel does not provide certainty for future re-construction of the two 4-plexes and encourages the property owner to not invest in regular maintenance or upgrades of the property. This tends to have a negative effect on the surrounding properties and neighborhood. Ensuring the zoning is conforming to the development will promote the public health, safety and general welfare of the area.
 
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 not have any effect on the existing transportation system.
Water and Sewer: The City provides water and sewer to the property. There will be no additional impacts to the system from the proposed zoning.   
Schools and Parks: Schools and parks should not be affected by the proposed zoning.  
Fire and Police: The subject property is served by city public safety services. The Police and Fire Departments had no concerns with the zone change.
 
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 no effect on transportation systems.
 
7.   Will the new zoning will promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will allow this parcel to continue at this location and the use is compatible with the existing neighborhood.
 
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 the proposed use. The proposed zoning is identical to the zoning south and west of the subject property and is an appropriate zone with the adjacent residential neighborhood to the north and east.
 
9.   Will the new zoning conserve the value of buildings?
The property is currently developed with two 4-plex dwellings, a nonconforming use in the existing R-70 zone. Approval of the zone change will make the current development conforming to zoning and will conserve the value of the existing buildings. The value of existing buildings and the parcel will be improved and conserved by the proposed zoning.  
 
10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will allow the existing development to continue and to be re-constructed if necessary in the future. This is the most appropriate use of the land at this location.
 

If the zone change is approved city fees for arterial construction and storm water will be adjusted to the new zoning designation of R-60. The property value of the buildings will be stabilized and may increase over time when improvements are completed on the property. Denial of the zone change could de-stabilize the property value and lead to future dis-investment in building maintenance.  

In 1983, the property proposed a zone change from R-70 to Residential Professional but the application was withdrawn by the applicant. The owner wanted to build a doctor's office on the corner where the current multi-family garage is located. The Planning staff and Zoning Commission did not support the zone change for this purpose. Surrounding property zoning has changed over time and the City has reviewed several zone changes in the area since the adoption of zoning in 1972. Eight of these zone changes were to change from a low density  residential zoning to a higher density zone such as R-70, R-60 or RMF-R. Three of these 8 zone changes were recently approved for existing 2-family or multi-family properties to eliminate the non-conformity between the adopted zoning and the actual property development. These zone changes were approved. The remaining 5 zone changes date from the 1970s  and 1980s. Three of these zone changes were approved, 1 was withdrawn and 1 was denied.

This is a zone change request to allow an existing multi-family development to be conforming with zoning for the purposes of future financing, re-construction or conversion to unit ownership. A unit ownership would allow each apartment to be individually owned and group ownership of the common elements. The current zoning, R-70, only allows single family and two-family dwellings. The proposed zoning, R-60, also allow
multi-family dwellings. The property consists of two 4-plex multi-family buildings (1236 and 1240 Avenue D) and a garage storage building facing 13th Street West. The 4-plex apartments were constructed in 1950 and the 9-stall garage building was constructed in 1994. The garage units provide off-street parking and storage for the apartment residents.

The property is located on the southeast corner of the intersection off Avenue D and  13th Street West, a central and stable neighborhood in the City. There is a mix of zoning designations in the area including a Public zone for Evergreen Park - a wide boulevard style neighborhood park on Avenue D from 13th Street West to 15th Street West. There are 2 properties on 13th Street West zoned RP and developed for a dental office and general office space. North and east of the property is R-70 zoning and these lots are developed with single family and two-family dwellings. West across 13th Street West were several zone changes in the 1980s. Three of these zone changes were approved, 1 was R-60 zoning along Avenue C north of the Evergreen IGA. These lots are developed with single family and two-family homes. The zoning on the south side of Avenue C to Grand Avenue is CC. The intersection of 13th St West and Grand Avenue is a commercial node with a variety of businesses serving the adjacent  neighborhoods including 2 grocery stores, pharmacies, gas stations as well as 3 bars and casinos.

13th Street West is a Collector Street that carries about 8,100 vehicle trips per day north of Grand Avenue. Avenue D is a local street so no traffic counts are taken on this street. The intersection is a 2 way stop controlled intersection. 

The Zoning Commission conducted a public hearing on January 3, 2017, and received the staff recommendation and testimony from the applicant's agent, Kolton Knatterud of Territorial Landworks. No other testimony was received.

In response to a question from Commissioner Larson, Mr. Knatterud stated other issues addressed at the neighborhood meeting included the condition of the alley south of the property and whether any existing off-street parking on the site would be eliminated. Mr. Knatterud stated the new owner intends to pave the off-street spaces that abut the alley, but the City would be in charge of any grading or improvements to the alley. He also stated the off-street parking situation should improve since the garage spaces currently are not being used to park tenant vehicles but are used for general storage purposes. In response to a question from Commissioner Ulvestad, Mr. Knatterud stated the new owner would like to start renovations and site improvements as soon as possible but no firm time frame has been established.

Commissioner Larson made a motion to recommend approval and adoption of the findings of the 10 criteria. The motion was seconded by Commissioner Ulvestad. The motion was approved on a 5-0 vote.

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