The Zoning Commission is recommending approval of Zone Change 987 and adoption of the findings of the 10 review criteria on a 4-0-1 vote.

This is a zone change request from Agricultural (A) to Highway Commercial/Heavy Commercial (HC/CX) on Tracts 1A and 1B of C/S 1889, a 20-acre parcel of land. A pre-application neighborhood meeting was held on December 9, 2020, at 3655 AJ Way, Billings, MT. Aviation Properties LLC is the owner. The request made by Aviation Properties is for land west of its current location for Billings Flying Service at 3655 AJ Way. The applicants purchased the property with the intent of providing additional land for ancillary and support businesses for the aviation industry. At one time, the Montana Air National Guard was in discussions with Aviation Properties about purchase and development on some of these acres to the west of Billings Flying Service. The owner has no definitive use or buyer for the land at this time. The zone change will entitle the owner to uses included in the new Heavy Commercial (CX) zone district for Tracts 1A and 1B of C/S 1889. The original application included an additional 118 acres (Tracts 2,3,4,5, 6A and 6B) proposed for Controlled Industrial/Light Industrial (CI - I1) zoning. The applicant withdrew these parcels from the request. The proposed HC zoning will update to Heavy Commercial (CX) zoning if the City Council approves the zone change. The City Council postponed the first reading and public hearing from February 22, 2021, on the request of the applicant. The Planning Division re-advertised the new hearing date and time along with the Zoning Commission recommendation. After the Zoning Commission hearing on February 2, 2021, the Planning Division and the City Council received numerous emails and letters of comment as well as petitions protesting the zone change. Enough protest petitions were received to achieve a valid protest of the zone change. A valid protest will require a super majority vote of the present and voting member of the Council in order to approve the request.

APPLICATION DATA
OWNER: Aviation Properties, LLC
AGENT: Jeff Kanning - Collaborative Design Architects
LEGAL DESCRIPTION: Tracts 1A and 1B of C/S 1889
ADDRESS: None assigned
CURRENT ZONING: A (Agriculture)
EXISTING LAND USE: Vacant - grazing land
PROPOSED USE: Same with potential heavy commercial uses
SIZE OF PARCEL: 20 acres for HC (CX)
CONCURRENT APPLICATIONS - Concurrent Petitions for annexation (AN 20-05A and 20-05B) petition for 46 acres of land on both sides of AJ Way, including existing CX zoned area of Tracts 13 and 14 of C/S 2037 to the east

The proposed zone change will cover 20 acres in two parcels of land described as Tracts 1A and 1B of C/S 1889. Most of this land has been used for low intensity agricultural uses such as grazing and dry land hay production. There is currently one physical access to the property (AJ Way) but an additional access point from Highway 3 may be proposed in the future on the west side of Tract 1A. Highway 3 is a high speed arterial that provides a unique entryway to Billings from the north and west. The City and County completed a corridor study in 2015 to achieve several safety, access and stormwater control objectives. The adopted study also included an objective to maintain the scenic entry to Billings, study the effects of the Inner Belt Loop (connecting to the west of this parcel) and to optimize the function of the highway corridor. The study predicted that average daily traffic on this corridor segment would grow about 1.9% per year over the 20-year study horizon. In the 5 years since the completion of the study, the increase in traffic year over year has matched this estimate. Currently, this segment of Highway 3 carries about 12,500 vehicles per day. This proposed zone change will likely increase the average daily traffic over these estimates. Any new development that adds a new type of traffic or includes a significant increase to the current traffic load will require a traffic study. The study would be reviewed and approved by both MDT and City Engineering.

The property is within the Airport Influence area adopted for land surrounding the Billings Logan Airport. This influence area was adopted originally in 1983 in order to protect the substantial public investment in the airport and ensure adjacent private development does not hamper the utility of the airport and future airport expansions. The influence area has a height restricted area as well as a noise gradient where certain uses - residential, hospitals or other noise sensitive uses - would have to provide additional sound-proofing in building materials to be compatible with the airport. The proposed zoning and associated land uses would not be incompatible with the airport influence area for height or noise-sensitive uses. Each building permit or development proposal would be evaluated based on the Airport Influence Area regulations (BMCC 5-400). As part of the annexation concurrent to this proposed zone change, city staff is recommending that as a condition of annexation approval, the city will be provided with a Perpetual Air Rights Easement over the property. This will grant to the City of Billings free and unobstructed navigation and passage of all types of aircraft in and through the airspace above the real property involved in the annexation.

The county has approved three zone changes for the 60 acres directly east of the subject property. The original zone change for these parcels in 2016 was controversial, especially in regard to the proposed heliport just west of the airport. In addition, the CI zoning was the first instance of this zone district above the Yellowstone Valley. The CI zoning was chosen to support uses that would serve the heliport including avionics, aircraft engine repair and rebuilding. The County Commissioners approved the zone change but adjacent landowners appealed the approval to District Court. As part of the court settlement with the owners, the CI zone district was reduced from 20 acres to about 12.5 acres between the Public zone on the north and the HC zone along the highway frontage. A large concern was the aircraft noise from the heliport and impact on residential properties just below the rim top. The heliport has been in operation since early 2017. There are several smaller fixed wing aircraft on the property as well for storage. The largest building is the hangar for the helicopters. There is also a shop/repair building to the south and a storage building to the west of the hangar.

The applicant has adjusted the zone change request from 118 acres of CI (I1) and 20 acres of HC (CX) to include just the proposed 20 acres of HC (CX) zoning. The proposed CX zone allows a wide variety of commercial uses and will provide all the flexibility the owner desires for potential marketing and buyers of this 20 acres and the adjacent 26 acres to the east.

Planning staff reviewed the proposal and recommended approval to the Zoning Commission based on the proposed findings of the 10 review criteria. The Zoning Commission concurred with this recommendation. The proposed zoning is in conformance with the 2016 Billings Growth Policy Guidelines and the Preferred Growth Scenario for this area of Billings Heights. The location is separated from nearby residential neighborhoods by the high-speed state Highway 3. The adjacent city airport land increases the possibility of uses that support aviation in general and cater to the business services in demand for aviation. The existing Airport Influence regulations within the city code will keep incompatible uses from developing on the property that might interfere with airport activity. The area does support some very low density agricultural uses that are compatible with the airport and can be compatible with any future uses on the subject property. The city has the ability to serve the property with municipal water and sewer at least in the first phase of the annexation.
 

The Zoning Commission conducted a public hearing on February 2, 2021, and received the staff report, testimony from the applicant and agent, and from the public. In addition, the Zoning Commission received 12 letters of comment (See Attachments) from surrounding owners and the Rimrock Neighborhood Task Force. All of these letters of comment were opposed to the zone change request.

Surrounding owners who called in comments include Brenda Dosset of 3420 Masterson Circle, Jim Scott of 224 Stoney Ridge Drive, Bill Cole of 3733 Tommy Armour Circle, Alice Lahren of 108 Sky Ranch Drive, Tim Blattie of 2745 Highway 3, Paul Scarpari of 3440 Masterson Circle, Howard Evans of 3481 Masterson Circle, and Steve Payne of 3441 Masterson Circle. The surrounding owners expressed concern about changes in traffic volume and patterns, effect on the property value of their residences, and possible location of prisons or junkyards in the proposed zoning.

Mr. Kanning, agent for Aviation Properties, explained while there is no firm development plan for the property, the zoning would not allow prisons or junkyards and the city's billboard moratorium is still in place. The intent is to market the property to larger format retailers, or those in need of a small shop or warehouse space close to the airport and close to a major transportation corridor. Some callers requested a delay or a change in the requested zoning from HC/CX to a Corridor Mixed Use zone district. Mr. Kanning stated some of the marketable uses in the CX zone are not allowed in the CMU zone districts such as contract storage warehousing or similar uses. Mr. Kanning stated these uses are allowed in Highway Commercial and this is why they requested this zone that would be an analogous zone to the new CX zone. Tyler Dugger, attorney representing Aviation Properties, stated the CX zoning is already in place on the directly adjacent property to the east, and this is just a request to add 20 acres of the same zoning along a high-speed highway corridor.

Commission member Trina White made a motion to recommend approval and adoption of the findings of the 10 criteria. The motion was seconded by Commission member Dan Brooks. The motion was approved on a 4-0-1 vote. Commission member Jack King recused himself from the hearing and voting on this request based on a conflict of interest.

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.

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

Prior to any decision on the zone change request, the City Council shall consider the findings of the 10 review criteria as recommended by the City Zoning Commission.

1. Is the new zoning designed in accordance with the City of Billings 2016 Growth Policy?
The proposed zoning does conform to the following City of Billings 2016 Growth Policy and guidelines:

• 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·
• Continued workforce training benefits the community and helps attract and retain businesses·
• Strategically placed industrial parks will encourage a more diverse city economy, and will better help manage effluent and emission from industrial processes

The potential uses with a HC (CX) zone are currently limited until the property is annexed to the city limits. The proposed zoning is consistent with the character of the area and the preferred land use patterns along high speed highway corridors. This area includes zoning for agriculture including commercial greenhouses, commercial horse stables, riding arenas, veterinaries, commercial dog kennels as well as low density residential uses. The adjacent property has been developed for a heliport and support services for Billings Flying Service. The 2016 Billings Growth Policy examined this area of Billings Heights to identify a preferred growth scenario. The Inner Belt Loop will provide a much-needed transportation connection from the northern part of the Heights to Highway 3 west of the airport. This corridor will activate some development interest west of Main Street and north of the airport. The preferred growth scenario included some heavier commercial uses west of the airport along Highway 3. There is a growing demand for a workforce skilled in aviation and aviation support. The proposed zoning will help support the growth in this economic sector. The proposed zoning can also support a wider range of commercial uses and services than a less intense commercial district that is more appropriate to a slower speed transportation corridor.

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 to provide security from fire and other dangers. Buildings developed within the city limits will comply with building and fire safety codes.

3. Whether the new zoning will promote public health, public safety and general welfare?
The proposed zoning may promote the health and general welfare. The proposed HC (CX) zoning will allow the owner to ensure future development is not intrusive to property across Highway 3 while still allowing compatible uses adjacent to the CX & I1 zoning to the north and east.

4. Will the new zoning facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements?
Transportation: The proposed zoning will have a measurable effect on traffic generation. The property currently has one access point. The primary access is along the east property line of tract 1B and tract 13 of C/S 2037 to the east. The access is named AJ Way. The current use of the property – occasional grazing of livestock – generates little or no traffic on a daily basis. When new development is proposed, the state MDT and City Engineering will review the proposal and any traffic access plan for the use. Traffic control and potential mitigation of impacts may be necessary. The City and County recently completed a Highway 3 Corridor transportation study in partnership with the Montana Department of Transportation (MDT). The study has several recommendations for improving traffic safety, pedestrian access and storm water management. The study included traffic volume projections out to 2035. It appears Highway 3, with improvements, may handle any additional traffic. The study recommended upgrades to the intersections with Rod & Gun Club Road and to Zimmerman Trail. The types of traffic generated from CX zoning are different than current traffic patterns in the area. MDT may require some traffic analysis and improvements depending on the type and volume of traffic generated from specific developments on the property. The City Traffic Engineer may require a traffic impact analysis to determine the appropriate mitigation or street development to accommodate the new uses.

Water and Sewerage: The property will be served by public water and sewer systems when it is annexed to the City. There is a pending petition to annex the subject property and a portion of the adjacent property to the east.

Schools and Parks: The proposed zoning should not impact the student population. Residential uses are not planned for the property.

Fire and Police: The subject property is serviced by BUFSA and the Yellowstone County Sheriff’s Department. Once annexed, fire protection and building plan review will be done at the time of building permit application. Public safety services will be provided by the City Police Department.

5. Whether the new zoning will provide adequate light and air.
The proposed zoning would require minimum setbacks, maximum building heights and maximum lot coverage. The Airport Influence and Noise Overlay zone will also limit some uses and building heights. These requirements should allow adequate light and air to reach the subject property and adjacent properties.

6. Whether the new zoning will effect motorized and non-motorized transportation.
The proposed zoning itself will not generate more traffic on any of the adjacent streets. When development is proposed, impacts to transportation systems will be evaluated. Pedestrian traffic in the area is limited due to the lack of sidewalks and trails on a high-speed state highway. The Highway 3 Corridor Study identified the need for a multi-use trail on the north side of Highway 3 at this location and pedestrian tunnel connections to the south side of Highway 3 to access the public park area along the rims. Residential development is generally located south of the property and the main motorized access to the rim top parks are along the south side of Highway 3.

7. Whether the new zoning will promote compatible urban growth.
The proposed zoning is compatible with the adjacent zoning and existing urban growth in the vicinity. Property west of the subject parcels is zoned A (agricultural) and is used for occasional grazing and very low density residential purposes. Property to the south is zoned for higher density residential neighborhoods within the city limits. This area is within the City’s Limits of Annexation Map and is petitioning for annexation for a portion of the property with future phases of annexation. The proposed zoning is compatible with the adjacent zoning and existing land uses.

8. Whether the new zoning considers the character of the district and the peculiar suitability of the property for particular uses.
The subject property is in an area adjacent to a high-speed highway entry corridor to the City and County. The property is near Billings Logan Airport property and there are several aviation and highway oriented land uses to the east. The current and proposed zoning is compatible with the character of the highway and aviation uses to the east. There are no immediate developments plan for the subject property.

9. Whether the new zoning will conserve the value of buildings.
The new zoning is not expected to alter the value of any buildings in the area. It is not known if its proximity to residential property in the area will affect the value of residential buildings. The value of the residential homes on the south side of Highway 3 are based on their location with the valley view as opposed to frontage along a highway corridor. Any development of the property will need to meet the site development requirements in the zoning code, including landscaping, screening, building heights and setbacks.

10. Whether the new zoning will encourage the most appropriate use of land throughout the City of Billings.
The proposed zoning does encourage the most appropriate use of land in this area of the City given it is adjacent to the Billings Airport and allows the same uses as are permitted on the Airport property. It is also in an area where aircraft are arriving and departing regularly. CX zoning could allow more intense uses than currently allowed in adjacent zoning districts but the potential universe of intense uses may be limited based on the Airport Influence area regulations.