The Zoning Commission recommends approval and adoption fo the findings of the 10 criteria for Zone Change 988 on a 4-1 vote.

This is a zone change request from Agricultural (A) to Residential-7000 (R-70), on Tract 2A-1 of Certificate of Survey 2317 2nd Amended, a 16.41-acre parcel of land. A pre-application neighborhood meeting was held on December 14, 2020, via virtual Zoom meeting. BCJM Properties, LLC is the owner. The subject property currently outside the city limits and is zoned Agriculture, a county zoning district. The proposed zoning of R-70 would update to the new N2 zone district upon annexation and the effective date of the new zoning code and districts. The N2 and R-70 zone districts are analogous and both districts allow one or two-family dwellings on mid-sized lots. The current zoning uses a minimum lot area for zoning and the new zoning uses minimum lot frontage per principal structure for lot design. Both zone districts can allow single family dwellings on individual lots or on common land as in a townhome style development.

The adjacent property has gone through four zone change processes over the past 35 years. In 1985, the owners of the former gravel mine on this property proposed a manufactured home park. The proposal was met with stiff resistance from the surrounding owners and was well beyond the city limits making city service provision challenging. This application was withdrawn. In 1991, the owners proposed a small zone change from the A-1 zone to R-70 on the northern 29 acres of Lot 3A. This area was annexed and the zoning approved but was never developed. In 2003, the remaining 100+ acres of Tract 3A was annexed to the city and zoned R-96 and single family only zone district. In 2004, the owner proposed a zone change to R-70. This was also approved but had much opposition from the surrounding owners, county neighborhoods and Heights Task Force. The owners signed a pre-subdivision covenant and restriction for Tract 3A stating no lot within a future subdivision of Tract 3A would be used for "a duplex or multi-family use", and that lots along the perimeter of Tract 3A on the south and east would be at least 9,600 square feet in area. This covenant does not apply to Tract 2A-1, the subject property of this zone change request. In early 2005, the city approved the last zone change for Lot 3A (Bitterroot Heights, 1st Filing and 2nd Filing) from R-70 to R-70-R. This zoning district allowed smaller lots (7,000 square feet) but restricted uses to single-family only on any lot in the subdivision. Private covenants and restrictions for Bitterroot Heights, 1st and 2nd Filings included the restriction on "duplex or multi-family uses". The original covenant from 2004 for Tract 3A expires in 2029.

APPLICATION DATA
OWNER: BCJM Properties, LLC
AGENT: Performance Engineering - Rob Neihart
LEGAL DESCRIPTION: Tract 2A-1 of C/S 2317
ADDRESS: 2526 Hawthorne Lane
CURRENT ZONING: Agriculture (A)
EXISTING LAND USE: Vacant
PROPOSED USE: Single family and two-family dwellings
SIZE OF PARCEL: 16.41 acres
CONCURRENT APPLICATIONS
AN 21-01 Petition for Annexation

The proposed 2004 subdivision master plan for Bitterroot Heights included Tract 2A - now Tract 2A-1. The layout of the lots was not definitive but the filings of the subdivisions intended to connect streets and utilities throughout. This proposed zone change could allow the same level of density in the existing filings of Bitterroot Heights of about 4 to 6 dwelling units per acre. Any new subdivision would require compliance with city engineering requirements, street designs, utility design and stormwater control. The current number of dwellings in the first two filings of Bitterroot Heights is 115 single family dwellings on about 35 acres of land (including street right of ways). The Billings Heights Neighborhood Plan (2006) indicates this area of Billings Heights should continue to develop with the same types of housing and density. In the adopted plan, the areas closer to Bench Boulevard, Main Street and Lake Elmo Road were chosen for higher densities and for mixed uses including mixed use buildings. New development tends to sustain and support existing development property values especially in new neighborhoods.

The property has a legal and physical access at the gate at the dead end of Hawthorne Lane. There is one existing storage building on the property. The proposed zoning should not affect the value or utility of this existing structure. Any development of the property for a subdivision will require two full access points. A connection to the existing Bitterroot Heights Subdivision is possible although the owner may choose a different second access point.

The Planning staff reviewed the request and recommended approval to the Zoning Commission based on the findings of the 10 review criteria. The Zoning Commission concurred. The adjacent zoning and development is similar and will provide continuity between the developments. County land uses to the north and west are agricultural but there is sufficient land area to ensure compatibility. Planning staff received one letter of comment concerned about the possibility of townhomes (two-family dwellings) and not just single family dwellings for sale on individual lots. The adopted Growth Policy of Billings does support compatibility of development however, single family and two-family dwellings are not considered incompatible uses. The type of two-family townhomes developed by this owner include units on the 800 block of Avenue D that command a market price of up to $400,000 per unit ($800,000 per structure). This area of Billings Heights is at the edge of the limits of annexation, and is the last piece of the owner's property to petition for annexation. The proposed zoning and uses are conforming to the growth policy and development can occur without disrupting the existing neighborhood fabric.
 

The Zoning Commission conducted a public hearing on February 2, 2021 and received the staff report and testimony from the applicant's agent, and surrounding property owners. In addition, the Zoning Commission received eight letters of comment from surrounding owners against the zone change and a four-page petition against the zone change (See Attachments).

Rob Neihart of Performance Engineering provided testimony to the Zoning Commission explaining the need for the zoning to allow a few housing options in this next phase of the Bitterroot Heights Subdivision. He stated as currently drawn, this phase will have about 12 lots capable of having a two-unit townhomes on the property. The total number of lots in this next phase will be about 70. He stated the owner has developed similar townhomes in the city and those townhomes are currently marketing for 300K to 400K per unit. This is a similar price point to some of the new single family detached homes in the neighborhood. Mr. Neihart stated there is land between the existing homes in Bitterroot Heights and this phase so no one in an existing single family residence will be directly adjacent to one of the new townhome lots. He also stated that a future subdivision and annexation will require further review and approval by the City Council.

The surrounding neighbors who called in include Lindsay Richardson of 2905 Spring Gulch Way, Warren Schaff of 2523 Bowles Way, LuAnn Herring of 2626 Meadow Creek Loop, Joey Kiernan of 2526 Strapper Lane, Thomas Klunder of 2650 Meadow Creek Loop, Dennis Dirks of 2514 Bowles Way, and Marty Edwards of 2520 Bowles Way. The primary concern of the callers was the fact the developer showed and marketed the entire area, including the subject property, as a single family only exclusive area. The owners are concerned about turning the area into a rental property that will lead to additional crime. The neighbors were concerned the proposed zoning was only to make some additional money from the property but at the expense of their property values.

Mr. Neihart stated the new full second access to Bitterroot Heights Subdivision will be the Hawthorne Lane access from Mary Street. The current emergency access from the end of Strapper Lane can then be retired. He stated townhomes or twin homes are already prohibited on any lot in the existing Bitterroot Heights Subdivision including the remainder of Tract 3A-1 to the south as that tract is subject to the 2004 restrictive covenant. He stated with a price point of 300K per townhome unit it is not likely the units would become rentals. He stated the concern about "doubling" the traffic is not true given the number of potential twin home lots is 12 out of the 70 planned lots. He stated if City Engineering requires an update to the already completed traffic analysis for Bitterroot Heights Subdivision, they will provide the update. 

Commission member Dan Brooks made a motion to recommend approval and adoption of the findings of the 10 review criteria for Zone Change 988. The motion was seconded by Commission member Trina White. The motion was approved on a 4-1 vote. Commission member Jack King voted in opposition to the motion.

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 or denial of the requested zone change should have no effect on the Planning Division budget.