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Zoning Commission
Date: 05/04/2021
Title: Zone Change 991 - Lenhardt Square Planned Development Amendment
Presented by: Nicole Cromwell
Department: Planning & Community Services
Presentation: Yes

Information

RECOMMENDATION

Planning staff recommends approval of the proposed amendments to the Lenhardt Square Planned Development zone based on the findings of the 10 review criteria.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

This is a zone change request to amend parts of the Lenhardt Square Planned Development agreement including:
  • Eliminate the Residential Single Family and Residential Multi-Family (four-plex) (MF-4) underlying zone district (single family and up to 4-unit dwelling units allowed - more than 4 units requires special review approval)
  • Change the underlying zoning of two parcels, Tracts 2A and 5A-1 of C/S 2063, currently zoned MF-4 to the Residential Multi-Family-Restricted (MF-R) zone. The MF-R zone allows any number of dwelling units in a structure based on lot area
  • Change building height measurement from numerical height in feet to number of building stories
  • Increase maximum average dwelling unit density in the MF-R zone from 20 to 21 dwelling units per acre and in the Mixed Use (MU) zone district from 20 to 35 dwelling units per acre.
  • Minor changes to wording and language to update the original 2008 Planned Development agreement and Master Site Plan
APPLICATION DATA
OWNER: Lenhardt Square Master Association - Allan R. Lenhardt
AGENT: Sanderson Stewart - Rick Leuthold, P.E.

LEGAL DESCRIPTION: All lots in the Lenhardt Square Planned Development 
ADDRESS: King Avenue West and 44th St West

CURRENT ZONING: Planned Development
EXISTING LAND USE: Developed and Undeveloped Land
PROPOSED USE: Residential and Mixed Use

SIZE OF PARCEL: 114.5 acres


The applicants conducted a pre-application neighborhood meeting on March 29, 2021, in a virtual format. Thirteen surrounding property owners or agents for owners attended the meeting. The surrounding owners were concerned with connection to and access from Shiloh Road, and the importance of allowing single family and two-family dwellings (not just multi-family) in the MF-R zone districts. One surrounding property owner, Sharon Wetsch owner of 4625 King Ave West, provided written comment to the Planning Division. Mrs. Wetsch's concern is building height, and multi-family apartments as opposed to single family or two-family dwellings. No other comments were received by the Planning staff.

SURROUNDING LAND USE & ZONING
NORTH: Zoning: Agriculture (A)
Land Use: Vacant land and Agriculture
SOUTH: Zoning: NX3 and CMU2
Land Use: Hoop Dreams Apartments and vacant land
EAST: Zoning: St V's Healthcare PD and RR1
Land Use: Vacant land
and signle family residences
WEST: Zoning: Agriculture (A) and RR1
Land Use: Agricultural and single family residences


In 2008, the original Planned Development for this family-owned farm property was proposed along with an annexation to the city. At the time, the water pressure for this area of Billings was not adequate to supply the number of potential dwelling units in the development, in addition to the surrounding developments in Montana Sapphire, Western Sky Subdivision, St. Vincent's Healthcare, Legends West Subdivision, Twin Pines development and the Morningstar Senior Living development, all west of Shiloh Road. The annexation was at first denied and then conditioned to allow only 600 dwelling units until the city resolved the water pressure issue by upgrading the existing reservoir system for this area. This water system upgrade has been installed and now there are no restrictions on the number of dwelling units based on water supply.

The market for all types of housing choices in Billings has significantly changed since 2008 and especially in the last year during the pandemic. Housing demand has reached a high level while supply of all types of housing choices has not kept up with the demand. At least two decades ago, our local planning and growth policy documents indicated a need for independent living units for aging residents who want to "downsize" from a maintenance heavy single family dwelling on a large lot to unit ownership or townhomes as well as rental apartments. The 2010 Census indicated Billings, like many other urban areas, saw a reduction in average household size to 2.3 persons. Smaller households, aging residents and the higher costs of all housing has driven the demand for apartments, townhomes, and smaller multi-family products. Developers have made robust investments in multi-family dwelling choices in Lenhardt Square already including the InterUrban and Interpointe Apartments, and the KWO Apartments. A new multi-family project is planned for the northern piece of Lenhardt Square. Several other multi-family developments have come on-line in the last 15 years around King Avenue West and Shiloh Road. Apartments, townhomes and unit ownership housing choices are still in high demand in Billings especially in areas close to shopping, schools and recreational opportunities.

The proposed changes to the Planned Development will adjust the maximum average dwelling unit density for the majority of the subdivision from 20 dwelling units an acre to 21 dwelling units an acre. This is a minor adjustment and the existing and proposed developments in the MF-R zone will not be perceptively larger than current code allows. This minor increase will not alter the current forms and styles in Lenhardt Square that are already close to the 20 dwelling units/acre maximum average density. The calculation of this density is based on the gross acres of the parcel minus the open-space and pathways. For example, Tract 5A-1 is 11.56 acres total and 1.08 acres is intended to be open-space and pathways. The proposed increase from 20 dwelling units per acre would add only 10 dwelling units over this 10.5 acre development area. The proposed density increase in the MU zone appears to be more significant, however the existing zone district uses and intention for a landmark building or building complex on this King Ave W frontage lot can handle the additional dwelling units. This level of mixed use and dwelling unit density is not usually found in Billings outside the downtown area. The intent of the MU zone is to allow an urban design and to distinguish this location as a neighborhood center. The Shiloh Commons development at Shiloh Rd and Central Avenue is the most recent mixed use development in Billings. Each of these four buildings has ample parking with a first floor of retail and service business. The dwelling unit density of Shiloh Commons is about 26 dwelling units per net acre of land. This works well with the 4-story design with ground-floor commercial, retail, services and offices. Closer to downtown, the Avenue C Apartments northwest of the West Park Plaza are at about 30 dwelling units per net acre of land. This is also a 4-story apartment building with amenities and parking but no ground-floor commercial businesses. Several apartment building downtown are in the range of 40 to 45 dwelling units per net acre of land, such as the Pinehurst Apartments at 6th Ave N and N 30th St or the apartments in the Montana Power Building at 113/115 N Broadway.

The Montana Department of Transportation (MDT) in partnership with the City of Billings manages the access to and development of King Avenue West at this location. Several planned intersection improvements will help ameliorate the poor performance of these locations. These include future traffic control measures and accommodations for turning lanes. A traffic study has been completed and updated for Lenhardt Square when new developments are proposed. In 2009 at the time of the first filing of Lenhardt Square Subdivision, MDT indicated a likelihood that King Avenue West at this location west of Shiloh would someday need to be a 5-lane arterial street to accommodate all the traffic from the adjacent developments and to continue the favorable east/west arterial traffic flows. Current construction is a three to four lane street from the Shiloh roundabout up to 44th St West that narrows down to a 2 lane street west of 44th St West. Existing traffic counts for average daily traffic are not yet significant, however peak travel times - morning and late afternoon - can cause long wait times to make safe turn movements into and out of the adjacent neighborhoods onto to King Ave West. Another portion of Monad Rd, to the north end of Lenhardt Square, will likely be built this coming season to accommodate the new 4-year medical college planned for the adjacent St. Vincent's Healthcare Subdivision (east). This will not complete the road section all the way to Lenhardt Square, but additional development on the north end of Lenhardt Square will require completion of the full road section to create a second access into and out of the property. This connection is essential to further development.

The Planning staff has reviewed the proposed amendments and has proposed findings of the 10 review criteria that support a recommendation of approval of the amendments to this Planned Development agreement for Lenhardt Square. The original development document would have allowed about 2,000 dwelling units on this 114-acre parcel of land or about 17.5 dwelling units per gross acre. The proposed increase in the dwelling unit average density increases this amount by about 14% or about 2.5 more dwelling units per acre after the remaining vacant parcels are developed - if the lots are developed at the maximum allowed average density of 21 dwelling units and 35 dwelling units per acre. There will still be a diversity of actual dwelling unit density based on the form and housing choice proposed by each developer. The city, state and private developers have invested in the necessary infrastructure to support this additional development density in West Billings. The city's new Capital Improvement Plan for the coming fiscal year includes additional investments as well.

There are challenges to an area of urban development that is on the edge of the city limits. These challenges include ensuring the adjacent county property owners and uses are protected as much as possible from conflicts with the new urban neighborhood residents and uses. This is not meant to ensure similarity or homogenous development patterns between the city and county, but the development plan includes buffering, connectivity where and when needed, and recognition of similar goals for both types of property. The 2016 Billings Growth Policy and the 2001 West Billings Neighborhood Plan goals and policies support the proposed change to the Planned Development agreement. The West Billings Neighborhood Plan goals and objectives stated the need to locate compatible uses and offer a range of housing choices and development densities. The proposed changes support these goals. The 2016 Billings Growth Policy supports a broad range of housing choices, encourages more walkable neighborhoods with connectivity to other transportation options, and building the community fabric through urban designed public spaces. The proposed zone change supports these goals as well.

Before making a recommendation to the City Council on the proposed zone change, the Zoning Commission shall consider the following findings:
 
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 and the West Billings Neighborhood Plan (2001):
The West Billings Neighborhood Plan goals and objectives stated the need to locate compatible uses and offer a range of housing choices and development densities. The West Billings Plan adopted a number of Goals, Policies, and Implementation Strategies. The proposed amendments to the Planned Development agreement and the master plan map changes are consistent with the following adopted Policies of Planned Growth Goal 1: Establish Development Patterns that Use Land More Efficiently
Policy R “Encourage innovative land-use planning techniques to be used in building higher density and mixed-use developments as well as infill developments."

The proposed adjustments to the underlying zoning map are compatible with goals of the West Billings Neighborhood Plan. The proposed amendment will accommodate uses that are compatible in a mixed-use environment. The proposed development will also have good access to outdoor activities and is in close proximity to commercial centers and transportation options.
The proposed amendment is also in line with the adopted 2016 Growth Policy goals for:

Strong 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, goodwill 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
  • Neighborhoods that are safe and attractive and provide essential services are much desired
  • Implementation of the Infill Policy is important to encourage development of underutilized properties
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
  • Planning and construction of interconnected sidewalks and trails are important to the economy and livability of Billings
  • Public safety and emergency service response are critical to the well-being of Billings’ residents
  • Homes that are safe and sound support a healthy community

The proposed change to the PD agreement will expand the density allowed for multi-family development and even mixed-uses where neighborhood service businesses are paired with apartments. The efficient and economical use of land will continue to support the significant investments made and planned for in this area of West Billings. Lenhardt Square has additional master design guidelines and restrictions that govern most lot landscaping and the zoning for Lenhardt Square includes specifications for street frontage improvement, open-space and pathways throughout. The design guidelines and zoning requirements will ensure the compatibility between this urban neighborhood and the county areas to the north and west. The proposed landscaping and street scape will ensure the livability of this neighborhood.

2. Is the new zoning designed to secure from fire and other dangers?
The zoning requires minimum setbacks, open and landscaped areas and building separations. The zoning realignment would not change provisions for adequate building separations and the proposed density limits will 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 change. Undeveloped city land can create uncertainty for surrounding owners and prolong the inconvenience for residents dealing with development activity in a new neighborhood. This 114-acre parcel has been under development since 2009 but only about 26 acres has been developed during that time. Public health, safety and welfare will be promoted by these adjustments to the zoning that encourages and supports a steady rate of development. Areas where major portions of a subdivision remain undeveloped, experience lower or stagnant property values and a more challenging market for new builders and buyers.

4. Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The city has reviewed a traffic study for the entire subdivision and proposed uses. The developer will be implementing the required mitigation and traffic improvements stipulated by Engineering. As new developments are proposed, the City will re-review the traffic study to ensure the requirements are still sufficient. City Engineering may require periodic updates to the study.
Water and Sewer: The City will provide water and sewer to the property. There will be no additional impacts to the system from the proposed changes.
Schools and Parks: Schools and parks may be effected by the proposed amendment, but this would depend on the demographic of the new residents. SD #2 did not provide any comments. 
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?
Non-motorized travel – walking and biking – is an essential part of the circulation plan both within the proposed development and connecting to adjacent areas including the multi-use trail on Shiloh Road and to the nearby Shiloh Conservation Area Trail system to the east. Pedestrian connections will be ensured through the development, and the property is close to a fixed route MET bus line. Traffic counts in the area on King Ave West and 48th St West are well below the expected volume on a principal arterial street. King Avenue West has an average daily traffic volume of 8,010 vehicles per day at this location, less than Poly Drive at 13th Street West. 48th Street West is less than most local streets with about 860 vehicles per day. As development increases in the area, these 2 arterial streets will need to build in additional controls, management facilities and safety features. MDT retains jurisdiction over the management of King Avenue West

7. Will the new zoning will promote compatible urban growth?
The proposed increase in the overall development density is compatible with urban growth and the provision of city level services to the new residents. The proposed zone district boundaries are consistent with the urban growth in this area and will be compatible with the surrounding 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. This area between Shiloh Road and 48th St West is an area undergoing rapid urban development and growth. Demand for local neighborhood and commercial services is increasing. Increasing the area for these services is suitable for this location.

9. Will the new zoning conserve the value of buildings?
The property is a combination of developed and undeveloped parcels. Approval of the zone change will continue to provide certainty to surrounding landowners and may help to maintain property values of adjacent buildings.

10. Will the new zoning encourage the most appropriate use of land throughout the City of Billings?
The proposed amendment may encourage the most appropriate use of this land in Billings.

ALTERNATIVES

The City Zoning Commission may:
  • Adopt the findings of the 10 review criteria and recommend approval to the City Council; or,
  • Adopt different findings of the 10 review criteria and recommend denial to the City Council; or
  • Delay the decision on the proposed zone change until the next available meeting date; or
  • At the request of an applicant, allow the proposed zone change to be withdrawn.

FISCAL EFFECTS

Approval or denial of the proposed zone change should not have an effect on the Planning Division budget.

Attachments