City Special Review 955 – 301 - 317 Covert Lane and 1739 – 1747 Cody Dr – Three 10-unit apartment buildings – A special review request to demolish three, 4-plex apartments and construct three, 10-unit apartment buildings in a proposed R-60 zone, on Lots 5, 6, 7 & 8, Block 7, Happy Hollow Subdivision, a 1.36 acre parcel of land. Presented by Nicole Cromwell, Zoning Coordinator.

Planning staff recommends conditional approval of 3, 6-unit buildings and adoption of the findings of the 3 criteria for Special Review 955.

OWNER: McDonald Lane Holdings, LLC
AGENT: Sanderson Stewart, Bryan Alexander
LEGAL DESCRIPTION: Lots 5-8, Block 7, Happy Hollow Subdivision
ADDRESS: 301 through 317 Covert Lane and 1739 through 1747 Cody Drive
CURRENT ZONING: Residential 7000, proposed Residential 6000
EXISTING LAND USE: 3, 4-unit apartment buildings
PROPOSED USE: 3, 10-unit apartments buildings
SIZE OF PARCEL: 1.36 acres total of the 4 lots

Zone Change 955 to change the zoning from Residential 7000 to Residential 6000.

Subject Property - There is a concurrent Zone Change with this special review to change the existing zoning from Residential 7000 to Residential 6000.

Surrounding Property - Property to the southwest did go through a special review for a church in 1998.  There have been 3 zone change request within this subdivision, 2 were granted 1 was denied. There has been 1 variance request that was granted.  There has been a minimum of zoning activity in this area that is predominantly residential in nature.

NORTH:	Zoning: R-70 Land Use: Single family homes
SOUTH:	Zoning: R-70 Land Use: Single family homes and duplexes
EAST:	Zoning: R-70 Land Use: Single family homes
WEST:	Zoning: Public, R-60 Land Use: City of Billings Park Land

This is a special review request to demolish three 4-plex apartments and construct three 10-unit apartment buildings in a proposed R-60 zone, on Lots 5, 6, 7 & 8, Block 7, Happy Hollow Subdivision. The site is located on the northeast corner of the intersection of Covert Lane and Cody Drive. The existing buildings appear to have been built on the land in 1965, 1966 and 1967 before current zoning was adopted.  The special review is required whenever 3 units per building or more are proposed on a single lot in Residential 6000 zoning.  There is residential zoning to the north, east and south of the subject property, with public zoning to the west. The overall proposed site plan shows 3, 10-unit residential buildings on the subject properties with parking provided on the back of the properties.  It is the applicants intent to relocate lot lines to have a final lot count of 3 lots instead of 4.

The surrounding neighborhoods to the northeast and west are developed.  Most of the surrounding property is single family residential development with a few exceptions along Covert Lane.  There are 3 duplexes on this block of Covert Lane.  There are some duplexes along Lake Elmo in the near neighborhood and one triplex. Farther out in the greater neighborhood, staff did find a 5-plex west of Walgreens, the one on Wicks and Main, and there are 4-plexes on Kelby Lane.  Staff was not able to find any buildings that are the size proposed, 10-units, in the area.  Mostly duplexes are scattered throughout the larger neighborhood.  This is an older neighborhood with many houses being built in the 1960's so it is an established area of the Billings Heights.  The existing buildings are showing their age and are in need of updating or replacement to provide better housing options in the area.

While Residential 6000 zoning does allow for multi-plexes, and there is enough land to have 10-unit buildings on the properties, staff finds 10-unit buildings are too much for the neighborhood.  The site plan shows the three buildings with the required parking in the back off the alley.  There is minimum space between buildings and very little green space for any type of outdoor activity.  Those who live in the apartments would be left with minimal outdoor space to have outdoor gatherings with friends or family.  There is no outdoor space of any size for small children to play.  There is parkland to the west that is undeveloped and would not be safe for smaller children to play with limited supervision.  At some times in the year, the undeveloped park can also have standing water in it due to stormwater.  Staff could not find any large multiplexes in the greater neighborhood with the exception of one 5-plex on Lake Elmo Road to the north.  Staff believes this request for 3, 10-unit buildings is too many units in one concentrated area given the suurounding neighborhood densiities and hosuing types.  It places a burden on the land and neighborhood without providing outdoor amenities for those living in the buildings. This would also increase traffic in the area going from 3, 4-unit buildings to 3, 10-unit buildings, more than doubling the number of potential vehicles in the area.

The Planning Division has reviewed this application and is recommending conditional approval of three, 6-unit buildings. 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 2016 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 in so far that the zoning regulations adopted by the City Council have designated all R-60 zoning districts can have multi-plex buildings as long as they go through the special review process for buildings with 3 or more units per building. There are requirements for landscaping ad site design with the 3-units per building or larger.

The application meets criteria from the second requirement as it is consistent with some of the objectives of the 2016 Growth Policy:

• Essential Investments: Infill development and development near existing City infrastructure may be the most cost effective.

The proposed special review will promote development of a residential parcel in a residential neighborhood and has easy access to City services and infrastructure. This will provide an additional housing choices to residents within the neighborhood and throughout Billings Heights.

• Strong Neighborhoods: Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels. Implementation of the Infill Policy is important to encourage development of underutilized properties

The proposed development will provide housing choices for residents of Billings in an established neighborhood and allow for better use of the property.  Conditions of approval will be proposed to ensure this development does not impact neighbors with excessive noise, light and other intrusions.

• Home Base: A mix of housing types that meet the needs of a diverse population is important.

 The proposed special review will support a new housing option in this established neighborhood.

The application also meets the third criteria, staff has found, if the number of units is three 6-unit buildings, in that the lower number of units will be more compatible with surrounding land uses, density, and neighborhood.  This site was originally developed in the mid 1960's and is in need of major remodeling or replacement.  The applicant is proposing replacement with three 10-unit buildings. Staff finds this building unit size would increase the traffic dramatically in the area, put a burden on open space by not providing open space on site, and create building mass in the neigborhood that would be out of place with the single and duplex units in the im,ediat area.  With a reduction of units to three 6-unit buildings it would lower the amount of additional traffic, would provide some options on the properties for open space for residents to have outdoor activities and play space for smaller children, and result in buildings that fit better with the surrounding residential buildings.  The conditions recommended with the special review should mitigate impacts on the site and the surrounding properties.  

RECOMMENDATION
The Planning Division recommends conditional approval.

PROPOSED CONDITIONS
1. The special review approval is limited to Lots 5, 6, 7 & 8, Block 7, Happy Hollow Subdivision generally located at the northeast corner of the intersection of Covert Lane and Cody Drive.
2. The special review is for the construction of apartment buildings with associated open space and parking for the building residents.  No other use is intended or implied.
3. There shall only be three, 6-unit buildings constructed on the subject site with accompanying minimum required parking for the building residents.
4. The developer will meet the minimum required landscaping according to code.  In addition, the developer will plant a street tree every 40 feet along both street frontages of Covert Lane and Cody Drive, in the boulevard between the curb and sidewalk. This landscaping will help to reduce the impact of the larger apartment structures along the street frontage and help the new development fit into the neighborhood.   Trees not allowed to be planted are any tree from the genus Populus, Salix or Ulmus.
5. 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.

**NOTE** Approval of this Special Review does not constitute approval of a building permit, sign permit or fence permit. Compliance with all applicable local codes will be reviewed at the building permit level. This application is for a Special Review as noted above and no other request is being considered with this application. The Planning Division points out that the use and development of the property must be in accordance with the submitted site plan.

Zoning Commission Action
The City Zoning Commission shall make a recommendation to the City Council to:
1. Deny the application for a special review use.
2. Grant the application for a special review use.
3. Conditionally grant the application for a special review use.
4. Delay action on the application for a period not to exceed thirty (30) days.
5. Give reasons for the recommendation.

Before approving a special review use, the Zoning Commission shall find that the contemplated use:
1. Complies with all requirements of this Article (27-1500);
2. Is consistent with the objectives and purposes of Chapter 27 and the Comprehensive Plan;
3. Is compatible with surrounding land uses or is otherwise screened and separated from adjacent land in such a way as to minimize adverse effects.

Further the Zoning Commission shall consider and may impose modifications or conditions concerning, but not limited to the following:
1. Street and road capacity;
2. Ingress and egress to adjoining streets;
3. Off-street parking;
4. Fencing, screening and landscaping;
5. Building bulk and location;
6. Usable open space;
7. Signs and lighting; and/or
8. Noise, vibration, air pollution and similar environmental influences.
 

Staff recommends conditional approval of 3, 6-unit apartment buildings and adoption of the findings of the 3 criteria for Special Review 955.