The City Zoning Commission recommends approval and adoption of the findings of the ten criteria for Zone Change 985 on a 5-0 vote.

This is a zone change request for two adjacent parcels of land at 3121 and 3125 Boulder Avenue. The lots are 20,250 square feet each and three dwellings exist on the parcels. The current owner is selling the property and the prospective buyer, Rob Pasquarello, is acting as the agent. The proposed zoning is Residential Multi-family-Restricted (RMF-R). The current zoning of R-60 allows single family and two family dwellings by right, but requires special review approval for three or more attached dwelling units (multi-family). Under current zoning, up to 10 units could be developed on each property in one apartment building with special review approval. Other configurations of multi-family dwellings could also be allowed based on the lot area. If the owner chose to use the "by right" development of single family or two family dwellings, each property could have up to five dwelling units. The proposed zone of RMF-R would allow a 10-unit building on each property by right and not by special review approval.

The prospective buyer conducted a pre-application neighborhood meeting at 3125 Boulder Avenue to discuss the proposed zoning and Mr. Pasquarello's plans for updating the property. Ten of the surrounding owners attended the meeting and several owners submitted a letter to Mr. Pasquarello with concerns about increased traffic, higher crime and lower property values for surrounding single family dwellings. One of the surrounding owners sent a letter to the City Council members for Ward IV. Planning staff received an email from Michael Klepperich a new owner at 3111 Boulder Avenue (directly east of 3121 Boulder Avenue). He stated concerns about more multi-family dwellings in the neighborhood as there seems to be an adequate supply, and the lack of sidewalks on Boulder Avenue a route to Boulder elementary school. During school hours, heavy vehicle and pedestrian traffic moves along Boulder Avenue, Colton Boulevard and 32nd Street West (the street fronting Boulder Elementary School). The traffic congestion leads drivers to drop off students along Boulder Avenue and Colton Boulevard and avoid the traffic directly in front of the school. Drivers look for ways to exit the area as quickly as possible.

Normal daily traffic on Rehberg Lane (east) is about 6,830 vehicle trips per day. There are no average daily traffic count numbers collected for Boulder Avenue, 32nd St West (Poly to Grand Ave), or Colton Blvd west of Rehberg Lane. Rehberg Lane serves as a major north/south connector between Rimrock Rd and Grand Avenue and is designated a collector street. Boulder Avenue and 32nd St West are local streets and are not intended or constructed as collector or arterial streets. There are over 470 students in Boulder Elementary School and it is likely daily traffic on Boulder Avenue and Colton Blvd west of Rehberg Lane during the school year in the morning and afternoon is quite heavy. If half the student population is dropped off by car each day that would be over 1,000 vehicle trips just for these students and would not include staff or school bus traffic. The school district staff along with the city staff manage the daily school traffic along 32nd St West in front of the school so the safety of students is ensured. Adding sidewalks to Boulder Avenue would be an additional safety measure for students walking to school and would make this street safer for residents of the area as well. Typically, new sidewalk is added when new development or significant re-development occurs.

Boulder Avenue has a diverse range of housing options on both ends of the choice spectrum - 17 single family detached dwellings (between Rehberg Ln and 32nd St West), eight 4-plex apartment buildings, 13, 8-unit apartment buildings (includes Rock Creek apartments), and four 4-unit townhomes (total of 16 single family attached units). The proposed zoning could allow any housing choice along this spectrum although the proposal is for smaller apartment buildings (not more than five in a single structure). A concept plan was submitted showing 11 dwelling units on the property with a shared private driveway off Boulder Avenue. The 5-unit building is shown on the north end of the property, a 4-unit building about mid-way and then a two-family dwelling at the frontage on Boulder Avenue. As drawn, the 5 -unit building would have access from the Rock Creek apartments internal driveway.

Planning staff reviewed the request and recommended approval to the Zoning Commission based on the proposed findings of the 10 review criteria. The Zoning Commission concurred with the recommendation. The Wolf Subdivision is an older county subdivision where lots were platted at a minimum of 1/2 acre in area to accommodate on site water wells and septic drainfields. The subdivision was annexed to the city in 1963, and these larger lots have gradually increased the number of dwelling units and housing choices over the past 57 years. The single family dwellings date to the mid 1940s to the mid to late 1950s. The oldest multi-family dwellings were constructed in the mid 1970s after city water and sewer was available. The water line was replaced in Boulder Avenue in 1989, but the sewer line is original from 1963 when the SID was approved and the property was annexed to the city. The City Engineering Division has not expressed any concerns with providing water and sewer to the project.

The city adopted an Infill Policy in 2011, that supports the re-development of vacant or under-developed land within the city limits. Land where the building value and the land value are nearly equal or where the land value  exceeds the building value demonstrate where re-development or significant building upgrades are needed to ensure adjacent property values are sustained. Under-development includes unfinished site improvements such as unpaved driveways, lack of walkways, missing curbs, gutters, sidewalks, small dwellings on very large lots and similar characteristics. The proposed zoning and development is in character with the surrounding development as 80% of the area is devoted to apartments. The owner could also build a townhome (unit ownership) project where each unit would have a separate owner with property maintenance accomplished by an HOA. This would be similar to two developments across the street from the subject property. Townhomes are a type of housing choice that is in demand now.

Before making its decision on the zone change request the City Council shall consider the recommendations of the Zoning Commission:
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:

• Zoning regulations that allow a mixture of housing types provide housing options for all age groups and income levels
• Neighborhoods that are safe and attractive and provide essential services are much desired

Home Base:

• 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
• To provide safe, good quality and affordable housing and develop patterns that are compatible with existing neighborhoods.

The proposed zoning will allow another housing choice in an area with primarily the two ends of the housing choice spectrum - multi-unit apartment buildings or single family dwellings. This area is about 20% single family detached or attached dwellings, 20% small apartment buildings (4 units) and 60% large apartment buildings. The new zoning will allow the owner to make an informed choice of the type of housing choice in demand for this area. This will likely be a mix of building types and choices on this large parcel of land.

2. Is the new zoning designed to secure from fire and other dangers?
The new zoning requires minimum setbacks, open and landscaped areas and building separations. The new zoning, as do all zoning districts, provides adequate building separations and density limits to 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. Re-development of the property will improve the health and safety of the neighborhood. Vacant or buildings with maintenance deficits tend to create opportunities for vandalism and trespassing and bring down adjacent property values. Well maintained property and new construction tends to bring property values up.

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 a measurable effect on the existing transportation system. If the zone change is approved, the re-development of the property will require either installation of sidewalk, curb & gutter or a guarantee of a future contribution to the sidewalk construction. Current vehicle traffic from the two dwellings is about 20 to 26 vehicle trips per day. If 20 apartments were constructed then this would contribute approximately 133 vehicle trips per day, a significant increase.
The concept site plan shows 11 dwelling units. The current "by right" zoning would allow five dwelling units per parcel or 10 dwelling units total. The increase in traffic from either scenario would be about 3 times the current traffic generation for 2 single family dwellings. Boulder Avenue is a local street. The city recently did an overlay of the asphalt surface to preserve the pavement for a few more years, but no further improvements were made. The street has the necessary construction to handle this small (10%) increase in total traffic volume.
Water and Sewer: The City provides water and sewer to the property. If new service lines are required, these will be installed at the time of property re-development.
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 setbacks to allow for adequate separation between structures and adequate light and air.

6. Will the new zoning effect motorized and non-motorized transportation?
There will be a slight effect and increase of motorized transportation. The current street and intersections should be able to handle the additional traffic. If the zone change is approved, the renovation work on the property will require the developer to install sidewalk, curb and gutter or provide a future guarantee of its installation.

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 re-develop into a better housing choice in the area and is compatible with the existing neighborhood.

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 will allow a housing choice that is in demand in the area. The proposed zoning will allow the existing out of date buildings to be removed and new, safer buildings to be constructed.

9. Will the new zoning conserve the value of buildings?
Approval of the zone change will conserve the value of the property by allowing renovation of the existing property, potentially increasing the value of the existing property and surrounding properties.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed zoning will allow re-development of the land and upgrade the current use. This is the most appropriate use of the land.

The Zoning Commission conducted a public hearing on October 6, 2020, and received the Planning staff recommendation, testimony from the agent, Rob Pasquarello, Travis McDowell, architect for the agent, Brem Fellman (listing real estate agent), and two neighbors opposed to the application: Bethany Schatzke of 3133 Boulder Avenue and Jack Kuntz of 3139 Boulder Avenue.

Commission member Dan Brooks asked Planning staff to explain why after 50 years Boulder Avenue still does not have any sidewalks, curbs, gutters or street lights. Planning staff explained that most "incomplete" streets within the city are updated as time and resources allow. Boulder Avenue received a pavement overlay a few years ago and it is not a designated "safe route" to Boulder Elementary School. Colton Boulevard - a parallel street to Boulder Avenue and one block south - is a complete street with sidewalks on both sides of the street and a crosswalk at 32nd St West and is designated a "safe route" to Boulder Elementary. Students living in residences on Boulder Avenue will still walk to school on Boulder Avenue and probably other students do as well who live further east. Completion of the street will likely take a neighborhood SID to make those improvements.

Mr. Pasquarello explained the condition of the existing homes and the size of the lots would lend itself to a complete renovation and build out the property in the same pattern as the majority of the neighborhood. Mr. Pasquarello stated the homes on the property have been rentals since the early 1960s and the neighborhood has experience problems with the quality of the tenants over the years. He stated if the zone change is approved he intends to build out his half of the street improvements (curb, gutter, sidewalk) and hopes this might inspire the rest of the neighborhood to also work on completing the street. He stated he has heard from neighbors about the lack of sidewalks but when he asked if they would pay to build a sidewalk in front of their residence, most answered in the negative. He stated the realtor Brem Fellman and his architect Travis McDowell have worked on a concept drawing for the development with 11 dwelling units - a five unit building accessing the Rock Creek Apartment internal driveway, a four unit building and a two unit building along the street frontage. He stated even though this is only one more unit than can be built "by right" (five duplexes are allowed by right), he listened to the neighbors concerns about the street front character and the size and height of new buildings in the area. Commission member Trina White asked if Mr. Pasquarello had spoken with the owner of 3131 Boulder (just to the west of 3125 Boulder Ave) to see if there was interest in selling. Mr. Pasquarello stated he did speak with the residents, a daughter of the owner, but the owner was not interested in selling at this time. 

Travis McDowell, an architect with Bluewater Design, stated he has worked with Mr. Pasquarello to develop an initial concept plan for the site and believes the mixed of housing styles and choices will be a great fit for the neighborhood.

Brem Fellman, listing agent for the seller, stated the proposed offer and use by this buyer is the best use of the property as it currently sits. He states this is an ideal location for young families and within walking distance to the school and park and just a short distance from shopping and businesses. Mr. Fellman stated the back yards of the homes has been a challenge to monitor and maintain over the years with just a single rental home on a 1/2-acre property.

Bethany Schatzke of 3133 Boulder Avenue stated she did not understand the need for a zone change to add just one additional unit to the property. She stated Mr. Pasquarello could building 10 units right now (five duplexes) so it seems like a lot of effort for one unit based on the concept plan for 11 units in three buildings. She stated the possible density under the RMF-R zone would be too much of a burden for Boulder Avenue at its current state of construction without sidewalks, gutters or street lights. She stated there are several single family homeowners in the neighborhood who feel the same way.

Jack Kuntz of 3139 Boulder Avenue stated he was opposed to the zone change. He stated he did not understand why a zone change is necessary if the owner needs just one additional dwelling unit. He was concerned the new buildings would be out of character with the existing homes in the area. He stated his biggest concern is the amount of density the new zone could allow - up to 20 dwelling units. He stated Boulder Avenue was an unpaved road and it took 25 years before the city relented and put down some decent pavement. He stated the neighborhood is a good neighborhood even though there might be a few bad apples. He stated the zone change should not be approved to add more units than currently allowed until the city installs sidewalks on Boulder Avenue. He stated he even called the city earlier this year to ask for a renewal of the existing pavement because it is starting to wear out in places.

Mr. Pasquarello provided response to the comments. He stated he agrees there should be sidewalks on Boulder and he intends to install his portion of the sidewalk when he develops the property. He urged other residents and owners to do the same. Mr. Pasquarello stated the concept plan is still a concept and it may change over time but it is an initial plan. He stated the 5-unit building would make a nice addition to the Rock Creek neighborhood but he needs to finalize the zoning so he can finalize the agreement with Rock Creek Apartments. He stated he does not intend to build the maximum number of units on the property the zoning could allow.

The Zoning Commission closed the public hearing. On a motion by Dan Brooks, seconded by Greg McCall, the Zoning Commission is recommending approval and adoption of the findings of the ten criteria for Zone Change 985, on a 5-0 vote.
 

The City Council may:

• Adopt the findings of the 10 criteria as recommended by the Zoning Commission and approve the application; or
• Amend the findings of the 10 criteria as recommended by the Zoning Commission and approve or deny the application; or
• Delay action up to 30 days.

Approval of the Zone Change will have no direct impact on the Planning Division budget.