This is a zone change request for a property at the intersection of Lake Elmo Drive and Josephine Drive in Billings Heights. The existing zoning is Residential Multi-family (RMF) and the proposed zoning is Community Commercial (CC). The equipment repair business and the storage yard for boats & RVs, were made non-conforming uses when the county adopted the RMF zoning for the property in 1973. The zoning was not changed when the city annexed the property in 1984. The owner now is trying to sell the parcel and would like to remove the cloud of legal non-conformity. The legal description of this 1.72-acre parcel is Lot 15 of Josephine Subdivision, less 3,167 square feet for Lake Elmo Dr. The property is owned by Orville Kurtz and the agent is David Goodridge. A pre-application meeting was held at the subject property on April 27, 2018. The Zoning Commission held its public hearing on June 5, 2018 and forwarded a recommendation of approval. The City Council held a public hearing approved the zone change on 1st reading on June 25, 2018. A second reading is required to approve a zone change ordinance. The zoning will go into effect 30 days after 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:

• Strong Neighborhoods: Neighborhoods that are safe and attractive and provide essential services are much desired.

The proposed zoning will allow the owner to sell the property without the burden of a non-conforming use. The new owner can continue the commercial use of the property in conformance with the zoning regulations. The new owner, City Cab, needs a property where there is space to store the cab fleet, do minor repairs and maintenance on the vehicles and where the business owner can reside. This property provides these essential qualities. Cab and taxi service is in high demand in Billings, where the aging population will need to rely on alternative modes of transportation in the decades to come.

• Prosperity: A diversity of available jobs can ensure a strong Billings’ economy; Retaining and supporting existing businesses helps sustain a healthy economy.

The proposed zoning will allow the new owner to re-locate within the city limits in order to sustain and grow his business. Transportation services provides a strong economic foundation for the Billings community. Supporting and retaining existing transportation companies is a goal of the 2016 Growth Policy.

• Prohibit high intensity commercial development in residential areas by implementing the preferred future land use map for the Heights Neighborhood Plan to guide development through zoning requests.

The 2006 Billings Heights Neighborhood Plan adopted a preferred land use map. The area between Lake Elmo Drive and Main Street was designated as a commercial mixed use area. The proposed zoning aligns with the preferred land use map.

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning, as do all standard zoning districts, requires separation between buildings and setbacks from property lines. This should 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 been a legally non-conforming use of land since 1973 – 45 years. A property with this type of legal limitation on its entitlement can bring down adjacent property values. Property owners tend not to invest, re-finance or upgrade these properties due to the inherent financial difficulties. Providing this property with a conforming zoning district will support the general welfare by taking this property out of financial jeopardy.

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 sewer and the Billings Heights Water District provides water 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 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 be sold without the legal and financial burdens of a legal non-conforming land use. The property, and the businesses located here, are part of the fabric of this area of Billings Heights. The area between Main Street and Lake Elmo Drive is recognized as an area for mixed uses including residential, offices, service businesses as well as retail businesses.

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 of the subject property and is an appropriate zone with the adjacent businesses and collector streets.

9. Will the new zoning conserve the value of buildings?
The value of existing buildings and the parcel will be improved and conserved by the proposed zoning. The existing zoning would not allow the reconstruction or re-use of some of these building except for an identical use.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will encourage the maintenance and sale of the property by allowing new and similar uses. This is the most appropriate use of the land at this location.

If the zone change is approved, it could improve the property and market values of the subject property. Investing, selling or completing improvements to a property that is not correctly zoned can be difficult and can artificially depress the property value. If the zone change is not approved, the owner would need to sell to an owner who is willing to conform to the existing multi-family residential zoning or continue to use the property for RV & boat storage and a single family residence.

Staff recommends the City Council approve Zone Change 967 including adoption of the findings of the 10 criteria.