City Variance 1280 – 1333 N 27^th St – Lot Area, setbacks - A variance from Section 27-310(e) requiring dwelling units in a Community Commercial (CC) zone meet the same requirements as a Residential Multi-family-Restricted (RMF-R) zone to allow a lot area of 7,336 square feet for 8 (eight) attached dwelling units; reduce the required front setback from 15 feet to 0 feet; reduce the required arterial centerline setback from 60 feet to 50 feet; reduce the required side setbacks from 8 feet (2-story) to 0 feet in a Community Commercial (CC) zone, on Parcel 1A1, C/S 463. The purpose of the variance is to allow the conversion of a vacant office building to eight 1-bedroom apartments. The east half of the 1953 office building has been demolished. Presented by Nicole Cromwell, Zoning Coordinator

Planning staff is recommending conditional approval based on the findings of the 7 criteria for Variance 1280.

OWNER: Slow River LLC
AGENT: Shaun Shahan
LEGAL DESCRIPTION: Parcel A1A, C/S 463
ADDRESS: 1333 N 27th Street
CURRENT ZONING: Community Commercial (CC)
EXISTING LAND USE: Vacant office building
PROPOSED USE: 8 apartments with a small 6-unit parking lot to the east
SIZE OF PARCEL: 7,336 square feet

Building Permit BP-18-00708 - Remodel and Change in Use permit for the re-development of the existing structure submitted March 30, 2018.
Site Development Variance OP-17-01 - Approved by City Council on April 24, 2017 to allow 0 off-street parking spaces for the re-development of the office building as apartments.

Subject Property: Community Commercial (CC) is the original zoning (1972) of the subject property. Variance 293 was approved for an adjacent property at 1315 N 27th Street (The Rodeway Inn) for a reduction in the arterial setback from 60 feet to 40 feet in 1981. The existing building was constructed in 1953.

Surrounding Property: In the Sunnyside Subdivision to the east and south there have been 22 variances requested. Further south and east in the Billings First Addition subdivision there have been 6 variances requested. Fourteen of these variances were for lot area reductions for either new development or existing development. One of these lot area variances was denied. The remaining lot area reductions were approved. The denial involved a property at 722 N 17th Street in 2009 (Variance 1063). The building permit history on the parcel did not support the applicant's contention the duplex on the property was constructed as a duplex. The building permit history indicated the duplex was submitted as a single family residence and subsequently converted without permits to an up/down duplex.

Five requests to reduce the arterial setback were submitted and 1 of those was withdrawn (Variance 384 in 1983). The remaining requests were approved to reduce the arterial setback from 60 feet to centerline to 40 or 50 feet from centerline. The application withdrawn was for property at 1203 N 27th Street, the former Rimrock Inn. The N 27th Street corridor was under consideration for widening and the Rimrock Inn wanted to insure the ability to re-construct at the front property line if the Montana Department of Transportation condemned the existing motel.

NORTH:	Zoning: Public (P) Land Use: Billings Bench Water Association Canal (BBWA) and MSU Billings - Alterowitz Physical Education Building & Bjorgum Field
SOUTH:	Zoning: Community Commercial (CC) Land Use: The Rodeway Inn and Billings Family Animal Hospital
EAST:	Zoning: Residential Multi-family (RMF) Land Use: Single family residence at 1258 N 26th Street
WEST:	Zoning: Public Land Use: Apsaruke Hall and Art Annex at MSU Billings

This is a variance request to reduce the lot area requirements, reduce the side, front and arterial setbacks to allow the remodeling and reuse of a vacant out-of-date office building at 1333 N 27th Street. Except for the lot area variance, the setbacks variances would allow the existing structure to remain or be re-built in its current location. The lot area requirement is to allow the number of dwelling units to exceed the maximum allowed in a Community Commercial (CC) zone. The requirement for dwellings in a commercial zone must follow the same requirements as the Residential Multi-family-Restricted (RMF-R) zone. The RMF-R zone only allows 2 dwelling units on a lot of 7,336 square feet.

The owner, Slow River LLC, purchased the property in April 2017 with the intent to develop a new style of dwelling unit in the Billings market. These units are considered "micro housing" units since they are all under 600 square feet of living space. The units range in size from 404 to 580 square feet but do include full kitchen facilities, laundry facilities and only 1 is considered a "studio" without a separate bedroom area. Two of the 8 proposed units will not have a private outdoor patio or deck area. These 2 units are on the lower level on the north side of the building. These units will have window wells for egress windows. There is a proposed communal deck on the east end of the upper level hallway that will overlook the small parking area.

The owner applied for and received an off-street parking variance from the City Council in April 2017. The variance will allow the owner to provide no off street parking for the new use. In the past 12 months, the owner has decided to provide at least 6 off-street parking spaces to better meet the needs of the future tenants. A recent Housing Needs Study for downtown and the East Billings Urban Renewal Area, indicated there is an immediate market for rental units in this area if any were available.

North 27th Street is a principal arterial street, owned and managed by the Montana Department of Transportation (MDOT). North 27th Street carries about 22,000 vehicles each day and consists of 5 lanes at this location. A traffic signal at Poly Drive and N 27th Street is south of this location with a pedestrian crossing signal. There is a pedestrian underpass about 200 feet north of the subject property. The only vehicle access to the subject property will be from the alley behind the property to the east.

The zoning to the north and west is Public (P) and this property is owned by MSU Billings and developed as part of its main campus of higher learning. To the south is CC zoning and is developed for the Rodeway Inn and Billings Family Animal Clinic. To the east is RMF zoning and the parcel across the alley is developed with one single family dwelling. Further south on the east side of the alley, lots are developed as single family or two-family residences.

Planning staff has considered the application and the 7 criteria for variances and is recommending conditional approval to the Board. The proposed lot area variance is significant in comparison to what is currently allowed on the property. The request is 4 times the allowed "density" of development on this CC zoned lot. The staff, however, found the proposed variance is not out of character for this area of North 27th Street due to the proximity of public accommodations - hotels and motels - as well as the college campus dormitories on the west side of N 27th Street. A lot area variance granted in 2013 for 1045 N 25th Street allowed 2 existing duplexes on a lot of 7,000 square feet, and reduced 3 setbacks (Variance 1138). On the corner to the north of 1045 N 25th Street is an 8-unit apartment building development on a 7,000 square foot lot. These 2 locations are of similar density increase as requested by this applicant.

Planning staff found 15 properties in the area with insufficient lot area for the number of dwelling units that had no record of zoning variances. The Skyline Court Townhomes at the intersection of N 26th St and 7th Ave N will have 10 dwelling units on a 10,603 square foot parcel when fully built out. Thirteen of the 14 variance requests to reduce lot area requirements have been granted in this area of Billings. Four of the 5 variance requests for reduction in arterial setbacks and front setbacks have been granted. Two of those arterial variances were granted for the Rodeway Inn buildings directly south of this property. It is not likely additional right of way will be needed to expand the number of lanes on N 27th Street and no concerns were received from Engineering. Building code requirements for fire resistive construction will be met as part of the complete renovation of the building. The Planning staff is recommending conditions of approval to insure the compatibility of the development during and after construction.