The City Zoning Commission has concluded a series of six public hearings reviewing the Zoning Code Amendments and Map Update through Project Re:Code, a three-year collaborative effort initiated by the Yellowstone County Board of Planning in June 2017. The mission of the initiative by the Board was to ensure the zoning regulations for the City and County were updated to help implement the Growth Policies and community goals. The current regulations were first adopted in the County in 1972 and have not been thoroughly updated since adoption.

This final public hearing is to review the amendments and map update and to make a formal recommendation on these changes to the City Council for their consideration. The City Council is scheduled to hold a public hearing and first reading on the amendments and map update on November 9, 2020.

Planning staff recommends approval of the proposed Zoning Code Amendment and Map Update based on the findings of the ten criteria for zone changes.

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The current zoning regulations for the City were adopted on May 3, 1972 and unified with the County zoning regulations in December 1997. Since 1972, the City has amended the text of the regulations and added several zoning districts. The city has amended the 1972 zoning code 166 times in the past 48 years since its adoption. Of those 166 amendments, six were major changes. The first occurred in 1977 when the code was updated in its entirety and re-adopted. The second major amendment added the new zoning district for the Medical Corridor in 1986. The next major amendment occurred in 1989 when the entire sign code was replaced with a new code. The combining of the City and County zoning codes took 3 years of editing and drafting and was finally adopted in 1997. In 2004 and 2005, the city adopted the Shiloh Corridor Overlay District to apply higher site design, landscaping and sign standards within this corridor. The sixth major change to the code happened in 2012 with the adoption of the new section for the East Billings Urban Renewal District (EBURD).

In 2017, in anticipation of a comprehensive code update, the City and County agreed to formally separate the zoning codes to aid in the process of the comprehensive update known as Project Re:Code.

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In 2016, the City Council adopted a new Growth Policy that updated a 2008 policy and presented several new community goals. These goals were stated in a set of "guidelines" under the seven major themes of the policy update:
1. Essential Investments (relating public and private expenditures to public values)
2. Place Making (enhance, maintain, preserve, and improve existing public places)
3. Community Fabric (attractive, aesthetically pleasing, uniquely Billings)
4. Strong Neighborhoods (livable, safe, sociable and resilient neighborhoods)
5. Home Base (healthy, safe and diverse housing options)
6. Mobility and Access (transportation choices in places where goods and service are accessible to all)
7. Prosperity (promoting equal opportunity and economic advancement)

The Growth Policy statement adopted by the City Council is:
"In the next 20 years, Billings will manage its growth by encouraging development within and adjacent to the existing City limits, but preference will be given to areas where City infrastructure exists or can be extended within a fiscally constrained budget and with consideration given to increased tax revenue from development. The City will prosper with strong neighborhoods with their own unique character that are clean, safe, and provide a choice of housing and transportation options."

The City/County Planning Board realized the existing zoning regulations, intended to implement the Billings and Yellowstone County adopted Growth Policies, were no longer effective tools for advancing these goals. The existing code was primarily based on a set of growth goals adopted before 1970 with some new code sections added to try and achieve smaller area goals. The Planning Board initiated this major code update in June 2017 and appointed an ad hoc Steering Committee to help guide the process of the code update. The City Council and Board of County Commissioners were in complete agreement with the need for a major code update.

The Steering Committee set to work and met monthly from August 2017 until December 2017. In December 2017, the Steering Committee finalized a set of Guiding Principles for the code update and appointed four Working Groups to handle the intensive, hands-on work of updating the code. Those groups included some Steering Committee members as well as interested residents. The four groups consisted of the County Issues Working Group, the Urban Issues Working Group, Sign Code Working Group and Landscaping Code Working Group. The groups met monthly from January 2018 until January of 2020 to review, draft, and accept public comment on the draft code sections. The City and County also agreed to fund the services of a consultant team to help the Steering Committee and Working Groups evaluate the code deficiencies, analyze the character of Billings and County neighborhoods, and help draft a new set of regulations.

The consultant team was hired in April 2018 and consists of Elizabeth Garvin, of Community ReCode (CO), Leslie Olberholtzer of Codametrics (IL) and Randy Hafer of High Plains Architects (MT). This team met with each Working Group through the project development and helped the local residents create a code that is uniquely crafted for our local community goals. Best practices were brought to the table from around the Rocky Mountain region as well as similar communities throughout the country. A Code Assessment was presented to the community in October 2018 that helped the Steering Committee and Working Groups create a path forward to building the new code.

The Planning Division requested and was awarded VISTA members to assist with the code analysis in particular as it related to creating new attainable housing choices in Billings. The VISTA members created a Billings Pattern Guide which is an online publication and guide to the core neighborhoods of Billings. The VISTA members analyzed Home Mortgage Data to find out if there were neighborhoods in Billings where home loans might be skewed or denied due to race or ethnicity. Some Billings neighborhoods had much lower mortgage origination rates than others but there was no clear distinction based on the applicants race or ethnicity.

The VISTA members also completed special research to analyze the existing housing choices in Billings and identify gaps in market demand and housing supply. Their findings indicated a mismatch between the household size (1 & 2 person households >60% of Billings) and the housing choices available (3+ bedroom housing >60% of housing stock). We have a deficit of one and two-bedroom housing stock. A detailed research project was completed about the re-emerging housing choice of an Accessory Dwelling Unit (ADU) in the country. ADUs became very popular throughout the US in the post-WWII building boom and over 900 of these units still exist in Billings, although the 1972 zoning code made most of them non-conforming to code. All of this information and public education helped inform the work of the Urban Issues Working Group while they considered new neighborhood zone districts.

On July 21, 2020, the City Zoning Commission began its series of six public hearings on the new code. The first session covered the proposed new residential zone districts and the requirements for these new zone districts. There are currently 22 zone districts where residential uses are allowed and only 10 of those districts are restricted to just residential uses. The Code Assessment completed by the consultant team and accepted by the Steering Committee indicated our code could be less complicated by coding for the development style and character of our existing neighborhoods. This resulted in seven neighborhood zone districts based on those neighborhood characteristics and uses. Those seven zone districts are:
On July 22, 2020, the Commission met to review the special uses that may be allowed in these new zone districts and the proposed new zoning process called Planned Neighborhood Development (PND) to address new neighborhoods to be annexed. The special uses reviewed were Accessory Dwelling Units (ADUs) and Short Term Rentals (STRs). The current zoning code does not allow either of these particular uses within a residential area. Commission member Jack King asked the Zoning Commission to have a further discussion on the proposed ADU regulations in this final hearing. Current code recognizes every dwelling unit on a property as a "primary" use of property. For example, a property in a residential zone that requires 9,600 square feet for each dwelling unit, an owner could build two dwellings if the lot is at least 19,200 square feet (1/2 acre). This lot area would be required regardless of the size or location of the second dwelling unit. The current code does not categorize dwellings as "primary" or "accessory". The proposed code would recognize an "accessory" dwelling by its size, location and its less than "primary" use. The accessory dwelling could not be sold as a separate dwelling unit, it has to stay with the primary dwelling forever. The proposed code would require one of the dwelling units to be owner-occupied and an accessory dwelling could not be a third unit on the property. In other words, you could have a primary dwelling and an accessory dwelling but if you already have two primary dwelling units you cannot add a third as an accessory dwelling unit. There are several other restrictions on size, design and other site development requirements. The new code would apply to new construction and to existing ADUs if the owner wants to take advantage of the new code allowance. Only four zone districts will be allowed to have an ADU by right: N1, N2, NX1 and RMH. The N3 zone would require a special review approval by the City Council to add an ADU to a property. The new ADU regulations would not override subdivision covenants or restrictions.

The proposed Short Term Rental regulations were reviewed by the Commission and there were no concerns about this draft. This draft is a set of "starter" regulations the city will likely revisit in one or two years to make adjustments as the new code is implemented. On any given day there are several hundred short term rentals advertised within the city although most of these locations are within residential neighborhoods. The Code Enforcement Division handles between one and five complaints each calendar year on short term rentals. In most cases, the owners were not aware the use was not allowed in the residential zone and the short term renting is stopped. The proposed code would allow this use - either as a guest house (renting a bedroom or a space within an occupied dwelling) or as a tourist home (an unoccupied dwelling) in residential areas and in some mixed use zone districts. The STR would have to be registered with the city and a 24/7 contact person named for any complaints about disruptions from the guests or if there are issues with property maintenance.

On July 23, 2020, the Commission met to review the new Commercial, Mixed Use, Industrial and Public zone districts. The proposed zoning districts for Commercial and Mixed Uses include the following:  These eight zone districts will replace the current lineup of 12 zone districts. The EBURD zone districts east of downtown and the CBD zone district will remain essentially same as current code. The ten retired zone districts have corollary zone districts such as the Residential Professional (RP) zone district is similar to the proposed Neighborhood Office-Residential (NO) zone district. The Downtown Support (DX) zone district will replace the S 27th St Corridor zone and the CC zoning along North 27th Street from downtown towards the airport, along 6th Avenue North and west of downtown to Division Street. The CMU1 and CMU2 will replace the CC zoning along commercial corridors and some of the Neighborhood Commercial (NC) zoning along these corridors. The NMU and NO districts will replace the NC and RP zoning in character with the site development and proximity to neighborhoods. The CX zone will replace most of the Highway Commercial (HC) zoning and some of the CI zoning.

The Industrial zone districts are essentially the same as the current industrial districts but area re-named to Light Industrial (I1) and Heavy Industrial (HI). Most of the existing uses will remain the same along with the basic setbacks, lot coverage and height limitations. Some of the incompatible uses allowed in the CI or HI zone districts, such as hospitals, nursing homes, residential dwellings, are not being carried forward into the new industrial zone districts. Some of the areas currently zoned CI may not update to the I.V district because of these less than industrial property uses. For example, some of the CI zoning on the south side of King Ave West will update to the CMU2 or CX zone to better fit the established uses. 

The Public zone district will now have three sub-categories to better represent and predict the future uses of these zone districts. The proposed P1 zone will be for open space, parks and recreational property (public or private). The P2 zone district is a designation for schools, churches or religious institutions, cemeteries and civic uses with one or two structures on the property. The P3 zone is intended for larger campuses with three or more primary buildings focused on education, medical services or civic uses. These categories of Public zoning should help neighbors understand the expectations for the use and development of these adjacent parcels. 

On September 15, 2020, the Commission met in a joint session with the County Zoning Commission to review the new Landscaping and Off-street Parking requirements as well as the new Proportionate Compliance section. The County has already adopted the new landscaping regulations (May 2019). The city's new landscaping regulations are similar and are a point-based system where the developer and designer can make a wide variety of choices to meet the landscaping requirements. A new provision in the code is that all zone districts for all developments will need to meet the minimum street frontage landscaping requirements. For most of the city zone districts this requires one street tree for every 40 feet of street frontage, but downtown will require a street tree for every 25 feet of street frontage. The Downtown Business Alliance and the City Engineering Division agree this was a reasonable number of street trees given the urban design of downtown with little private property landscaping. The P1 zone district is exempt from this requirement. Street trees can be planted within the front yard (within 10 feet of the back of the sidewalk) or in the public right of way with City Engineering approval. 

The Off-street Parking requirements are not within the current city zoning code. The existing code section under the city code for Buildings will be retired and the parking requirements placed back into the zoning code. The construction specification for parking lots will remain under the purview of the City Engineering Division, but the parking ratio requirements will be part of the zoning code. The parking code has been updated based on an initial draft create by the Parking Advisory Board and staff in 2014. The Working Groups picked up where the 2014 draft left off and updated based on current understanding of parking demand, increasing demand for bike parking and the need for better walkability in commercial zones. Most of the mixed use zone districts will require off-street parking to be constructed to the side or rear of buildings so the building can be place along the main street frontage. Buildings that frame streets tend to slow traffic and provide more commercial visibility to drivers and pedestrians. It reduces the need for large freestanding signs since the buildings are prominent along the street frontage rather than a parking lot. There are provisions in the code that allow limited front yard parking in some of the zone districts and allow a double row of side yard parking in other zone districts. Downtown and the EBURD zone districts will continue to be exempt from minimum off-street parking requirements.

The Proportionate Compliance section of the code is intended to allow existing developed parcel incrementally increase site development amenities - such as landscaping and off-street parking - without triggering the full legal nonconforming compliance requirements. For example, a property developed along Grand Avenue in 1972, will likely not have much if any street frontage landscaping and may not meet the full off-street parking requirements. If the property were to change uses and a significant investment is proposed to upgrade the building, the Proportionate Compliance regulations can gradually allow some landscaping to be installed or parking spaces to be added without requiring full compliance with the new code.

A September 16, 2020 joint session with the County Zoning Commission was postponed to September 22 due to the lack of a quorum. This joint session on September 22, covered the new Sign Code, Nonconformities, Measurements and Definitions section. The new sign code was the result of gleaning the best features of the existing seven sign codes for the city and county, and two years of monthly meetings of the Sign Code Working Group. The resulting single sign code will result in new signs that make sense in the context of the zone district, the neighborhood and urban areas of Billings. The maximum height of freestanding signs is reduced from 30 feet to 25 feet, how to measure the size of the sign is clarified, and several signs not currently subject to regulations are included in this new code.

On September 23, 2020 the City Zoning Commission met a final time to review the draft Zoning Map Update and the Administrative Procedures in the new code. The zoning map update will move parcels in to one of the new zone districts based on the existing zone and current development of the property. The Planning staff and consultant team release an initial draft map in May 2019 and have been review and correcting errors as these or reported by property owners or found during an internal review. There are have eight map updates since May 2019. Final small corrections are still coming in and those will be added and corrected on the map as necessary up until the first reading of the update by the City Council.

The Administrative Procedures section has collected all of the processes currently scattered throughout the code into one code section for ease of understanding by the public and the administrators of the new code. Everything from internal staff review of building permits and site plans, to Zone Changes and Planned Neighborhood Developments is covered in this one code section. Flow charts and tables of processes are included throughout to help illustrate the sometimes obscure nature of zoning approvals. One item of note has changed from current practice and that is the way we define and process Special Review uses. Current code approaches a special review use as an "allowed" use. This puts the burden of proving a negative consequence on the City Council rather than the applicant. The proposed code defines a special review use as a special exception to the allowed uses in the zone district and will require the applicant to prove the use will not burden or have unmitigated impacts on the neighborhood. The new code has also reduced the number of special review uses listed in the use table so each zone district is more predictable for neighborhoods.

In all six sessions, the City Zoning Commission conducted a combined in-person/virtual and live broadcast meeting. The public could attend in-person, call in to the hearing or join and make comments via the Zoom meeting. Comments were received from Blaine Poppler with a concern about the off-street parking section and the requirement to place most new parking lots to the side or the rear of new commercial developments. The proposed Mixed-Use zone district do require this site development requirement so the business neighborhood can offer a more walkable environment. When parking is developed to the side of a building, the structure can be located at the street front, which adds visibility for people traveling by car or on foot. Framing the public street with buildings - rather than parking - contributes to lower  traffic speeds and enhances the visibility of signs. Some cities that have adopted similar parking rules have allowed "limited front yard  parking" (see attachments). This allows the development of a short section of a frontage road with some parking along the front of the buildings with safe access to the side and rear yard parking. This would allow some parking along the front of a building. The Working  Groups considered this proposal but agreed the new code would better allow for change over time on the existing commercial corridors.

Before making a recommendation to the City Council, the City Zoning Commission will consider the findings of the ten review criteria for zoning changes and map updates:
1) Whether the new zoning is designed in accordance with the growth policy;
The proposed Zoning Amendments and Map Updates are consistent with the 2016 Billings Growth Policy Statement and Growth Guidelines:
Statement:
Growth Guidelines:

• Essential Investments (relating to public and private expenditures to public values)
  • Planning and construction of safe and affordable interconnected sidewalks and trails are important to the economy and livability of Billings.
  • Developed parks that provide recreation, special amenities (community gardens, dog parks, viewing areas), and active living opportunities are desirable for an attractive and healthy community
  • Natural landscapes are important because they define the uniqueness of Billings and help protect the environment
  • Landscaping of public rights-of-way and entryways makes Billings more visually appealing to residents and visitors
  • Infill development and development near existing City infrastructure may be the most cost effective
  • The history and heritage of Billings are cornerstones of our community
  • Neighborhoods that are safe and attractive and provide essential services are much desired
  • Infrastructure and service investments that stabilize or improve property values, secure future utility costs, consider maintenance costs, and improve our environmental quality far into the future (i.e.. energy efficient) are desirable
• Place Making (enhance, maintain, preserve and improve existing public places):
  • Enhancement and maintenance of public spaces and buildings through City stewardship is integral to a vibrant community
  • Public and private partnerships are valuable for creating enhanced entryways into Billings
  • Locally grown foods help sustain agriculture, provide healthy options, and support local businesses
  • Encouraging the installation of art in public spaces enhances the places and showcases the talents and diversity of the community
• Community Fabric (attractive, aesthetically pleasing, uniquely Billings)
  • Developed landscape areas in commercial areas encourage more pedestrian activity and vibrant commercial activity
  • Attractive street scapes provide a pleasant and calming travel experience in urban and suburban neighborhoods
  • Outdoor public spaces provide casual and relaxing gathering areas for people
  • Cost-effective landscaping of public rights-of-way and entryways makes Billings more visually appealing to residents and visitors
• Strong Neighborhoods (livable, safe, sociable and resilient 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
  • Safe and livable neighborhoods can be achieved through subdivision design that focuses on complete streets, pedestrian-scale street lights, street trees and walkable access to public spaces
  • Implementation of the Infill Policy is important to encourage development of underutilized properties
• Home Base (healthy, safe and diverse housing options)
  • A mix of housing types that meet the needs of a diverse population is important
  • The Housing Needs Assessment is an important tool to ensure Billings recognizes and meets the demands of future development
  • Common to all types of housing choices is the desire to live in surroundings that are affordable, healthy and safe
  • Homes that are safe and sound support a healthy community
  • Accessory dwellings units provide an important type of affordable housing options if compatible
• Mobility and Access (transportation choices in places where goods and services are accessible to all)
  • Connecting people to places with transportation choices is vital to the well-being of Billings’ residents, businesses and visitors
  • Safe and accessible transportation systems benefit everyone’s quality of life
  • Affordable public transit is much desired
  • Development oriented to transit routes will provide more transportation choices and is preferred
• Prosperity (promoting equal opportunity and economic advancement)
  • Predictable, reasonable City taxes and assessments are important to Billings’ taxpayers
  • A diversity of available jobs can ensure a strong Billings’ economy
  • Successful businesses that provide local jobs benefit the community
  • 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

As the Steering Committee and Working Groups considered each code section for the City of Billings, these Growth Guidelines and the Guiding Principles set forth by the Steering Committee in January 2018 were front and center to the discussions and decision making. The proposed Zoning Code and the Zoning Map update meet and exceed each one of the guidelines listed above. The proposed code conserves the un-renewable resource of land so the city can better meet the needs of all its residents, businesses and visitors now and into the future. 

2) Whether the new zoning is designed to secure from fire and other dangers;
The new zoning requires minimum setbacks, open and landscaped areas and building separations in most of the new zone districts. The new zoning, as do all zoning districts, provides adequate building separations and density limits to provide security from fire and other dangers. The proposed code is more predictable for public safety services by eliminating the unlimited height in the multi-family zone districts, and by making site design for safe access part of the development requirements for new construction.

3) Whether the new zoning will promote public health, public safety and general welfare;
Public health, public safety and the general welfare will be promoted by the proposed zoning code update. The proposed neighborhood zone districts remove the unnecessary 1972 suburban zoning designation from Billings' first neighborhoods, restoring property equity throughout these districts. The new neighborhood zone districts reflect the development character of existing zones rather than imposing a pattern that does not exist and never existed in these areas of Billings. The new code allows developers and builders to choose this historical development pattern for new neighborhoods as well. The Planned Neighborhood Development zoning tool will allow the city to plan new neighborhoods in partnership with owners so these newly annexed areas fit better. The PND rules allows the city to be a full participant at the table rather than accepting a zone decision and neighborhood plan developed without city input. 

4) Whether the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements;
Transportation: The proposed zoning code should help the city provide transportation across the entire spectrum of options from public transit, private vehicles, walking and biking. Sprawling development patterns of homogenous land uses separated by miles from different land uses is an unsustainable development pattern. It unnecessarily increases vehicle trips, drives up demand for parking spaces, wider and more abundant high speed arterial streets, contributes to air pollution and unhealthy life styles. The proposed code will allow new neighborhoods to be close to everyday services, will require amenities that support walking (street trees), and allow compact site designs that are currently prohibited by our out-of-date zoning.
Water & Sewer: The proposed code will make extension and renewal of existing city water and sewer services more sustainable by allowing traditional development patterns to persist and to be replicated in new neighborhoods.
Schools and Parks: Schools and parks should be sustainable with the new zoning code. The creation of new Public zone districts specific for these public facilities will help maintain these large pieces of the community fabric in neighborhoods. Demand for additional classroom space further and further from the urban core may persist for some time, but the sustainability and renewal of close in neighborhoods should provide more opportunity for in-fill that will maintain student populations within existing schools. Parks will be part of every new Planned Neighborhood Development and will be developed. The requirement can count towards the state requirement for dedication of parkland for new residential subdivisions (or payment of cash-in-lieu), but every new neighborhood will have at least a small gathering space to improve the sociability and resiliency of these new areas.

5) Whether the new zoning will provide adequate light and air;
The proposed zoning, as does the current zoning, provides for sufficient setbacks to allow for adequate separation between structures and adequate light and air.

6) Whether the new zoning will effect motorized and non-motorized transportation;
The new zoning has updated off-street parking requirements that better reflect the parking demand for land uses. This will allow businesses to supply the right amount of parking and for neighborhoods to be assured off street parking is adequate for new developments. The new code supports the efforts of many of our neighborhoods by allowing existing neighborhood service business to stay in place. Non-motorized travel should also be improved with the new standards for zone districts that require street front landscaping for all new development, and the provision for at least one bike parking rack at new businesses.

7) Whether the new zoning will promote compatible urban growth;
The new zoning does promote compatibility with urban growth. The City and County will have separate zoning codes but the new code requires the use of a Planned Neighborhood Development (PND) process to ensure compatibility between the city and the county.

8) Whether the new zoning considers the character of the district and the peculiar suitability of the property for particular uses;
This criteria is not necessarily applicable other than the Zoning Map Update will place each zoned parcel into a new zone district that correlates to the existing zoning of the property and the existing or intended uses of the property. For example, a manufacture home park in a single family zone district would update to Residential Manufactured Home.

9) Whether the new zoning will conserve the value of buildings;
In general, the new zoning code should conserve the value of buildings throughout the City. The Zoning Map update seeks to ensure that current development and zoning is preserved and not placed in a nonconforming status whenever possible.

10) Whether the new zoning will encourage the most appropriate use of land throughout the City of Billings.
 The zoning map update will encourage the most appropriate use of land in the City of Billings.
 

Planning staff recommends approval of the proposed Zoning Code Amendment and Map Update based on the findings of the ten criteria for zone changes.