This is a zone change request from the EBURD-Industrial Sanctuary (EBURD-IS) zone to the EBURD-Central Works (EBURD-CW) zone to allow the Kairos Center property to continue its re-development plan. The current zone does not allow residential dwellings by right, only employee or caretaker units in the former Pierce Packing Plant, now known as the Kairos Center. In addition, the EBURD-IS zone does not allow retail uses. The re-development plan for this building now includes residential apartments and some retail uses. The legal description of this 5.64 acre parcel of land is Lots 1 through 24 of Block 122; Lots 1 through 24 of Block 123, less a portion of Lot 19 of Block 123 deeded to the State of Montana, Billings Original Town, together with abandoned streets and alleys. The owner is Kairos Center LLC, and the agent is Martin Connell. The owner held a pre-application meeting on April 30, 2018, with the surrounding owners at the subject property. The Zoning Commission held its public hearing June 5, 2018, and forwarded a recommendation of approval. The City Council held a public hearing and approved the zone change on 1st reading on June 25, 2018. A second reading is required to approve the zone change ordinance. The new zoning will into effect 30 days from 2nd reading.

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.

Prior to making a decision on the proposed zone change, the City Council shall consider the following findings of the 10 review criteria:
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 developer to include residential uses as part of this mixed use building. The City recently completed a Housing Needs Assessment for the EBURD and Downtown areas. The study found there will be an increasing demand for a wide variety of housing choices in the EBURD and Downtown. The current zoning does not allow residential uses. Financing improvements or sale of the property is unnecessarily complicated by the current zoning. The property will provide a unique housing option in this area of the EBURD.

• 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 owner to develop apartments within the current building and complete the re-development of the property. The residential uses will fit with the existing and potential uses in the area.

• Prosperity: A diversity of available jobs can ensure a strong Billings’ economy; Community investments that attract and retain a strong, skilled and diverse workforce also attracts businesses; Retaining and supporting existing businesses helps sustain a healthy economy.

The proposed zoning will allow the owner to offer retail spaces within the existing building. This will assist in filling the remaining vacant areas within the building and help retain and grow new local small businesses.

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning is a form-based code that requires site development standards and regulates uses to a lesser degree. The implementation of the form-based code along with Building and Fire codes during re-development will 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 property has the potential to allow apartment dwelling units. Daytime and evening
occupancy of the building will provide more security in the area. A full re-development of the building and grounds will benefit the general welfare.

4. Will the new zoning 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 significantly affected by the proposed zoning, even with the addition of a residential component.
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 building separations to allow for 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 promote compatible urban growth?
The new zoning does promote compatibility with urban growth. The proposed zoning will allow this parcel to continue and complete its redevelopment and allow compatible uses to be included in this revitalization plan.

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 north and west of the subject property and is an appropriate zone with the adjacent businesses and arterial streets.

9. Will the new zoning conserve the value of buildings?
The building on the property has been remodeled and re-purposed over the past 18 years. Approval of the zone change will conserve the value of the property and will allow the redevelopment plan be responsive to the market in this area of Billings. The value of existing buildings and the parcel will be improved and conserved by the proposed zoning. Since purchasing the property in 2000, the property tax revenue generated to the city has increased from about $12,000/year to over $65,000/year. This increase in value is much greater than surrounding properties. Finalizing the re-development will stabilize this investment.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will encourage the full redevelopment of the property by allowing 2 additional uses. This is the most appropriate use of the land at this location.

Approval of the zone change will help complete the redevelopment of the property. This will add value to the City's tax base and increase the tax increment available in this district to fund future public improvements. Since purchasing the property in 2000, the property tax revenue generated to the city has increased from about $12,000/year to over $65,000/year. If the zone change is not approved, the redevelopment will take longer to complete and may extend the time its takes the city to realize the increase tax benefits.

Staff recommends the City Council approve Zone Change 966 including adoption of the findings of the 10 criteria.