The City Zoning Commission recommends approval of Zone Change 993 and adoption of the findings of the 10 review criteria.

Note: This zone change is for three properties to be included in the South Billings Boulevard Urban Renewal District (SBBURD). Property must be annexed and zoned with the appropriate City zoning to be included in the SBBURD. The City Council must act on this zone change as one of the steps at the meeting tonight so it can then take action to expand the SBBURD to include this and other properties.

This is a zone change request to change the zoning on three properties that are being annexed into the City and are proposed to be included in the South Billings Boulevard Urban Renewal District (SBBURD). The annexation process and SBBURD expansion process are being run in coordination with these zone changes. The zone change process for these properties is following BMCC Section 27-1615 since the properties must be annexed into the City to be included in the SBBURD, they also must be rezoned to City zoning districts as they come into the City. The property owners are all in support of this process as they all want to be included in the SBBURD.

The zoning proposed for the three properties, applicant information, tax identification, and current uses are as follows:

• 3508 S Frontage Rd: A zone change from A- Agriculture to CX – Heavy Commercial on Section 15, Township 1 South, Range 26 East, the South Fraction of Lots 2 & 3 (LESS HWY & C/S 2394) generally located at 3508 S Frontage Road, a 35.94 acre parcel of land, Torgerson's Real Estate Holding, LLC, owner. Tax ID: D01863. Property has been used for agricultural operations but has been purchased by Torgerson's, the farm equipment dealer in Billings for development.  
• Jackson Street (vacant property at the northeast corner of the intersection of Jackson Street and King Avenue East): A zone change from RR1 – Rural Residential 1 to NX1 – Mixed Residential 1 (south of 735 Jackson St) and N2 – Mid-Century Neighborhood (east and north of 735 Jackson St) on C/S 2367M, Parcel B2 a 3.522 acre parcel of land, generally located on Jackson St, Jason Adkins, owner. Tax ID: D01711B. Property is vacant but owner plans for residential development.

          The Planning Division did receive a valid protest for this property right before this memo was completed from property owners within 150 feet of the subject property. This will require the City Council to have a 2/3 majority vote to approve the zone change for this property of the present and voting members of the City Council on first and second reading of this zone change. Staff will have a separate ordinance prepared so that action may be taken on this property separately from the other two properties in this zone change.

• 6014 S Billings Blvd: A zone change from A- Agriculture to P2 – Public 2 on Section 17, Township 1S, Range 26 East, N2N2N2SE (Less .0774 acres -Highway) a 19.923 acre parcel of land, generally located at 6014 S Billings Blvd, City of Billings, owner. Tax ID: D01893. Property has been used for agricultural operations but was recently acquired by the City of Billings for future expansion of its service operations. 

PROCEDURAL HISTORY

• On December 7, 2020, the Council heard a presentation on expansion of the SBBURD and directed staff to move the process forward in 2021.
• On April 6 the South Billings Urban Renewal Association (SBURA) affirmed its support of expansion of the SBBURD.
• On April 13, the Yellowstone County Board of Planning acted affirmatively on a recommendation to the City Council as to the SBBURD expansion's consistency with the 2016 City of Billings Growth Policy.
• On May 10, the City Council approved a Resolution of Intent to Expand the SBBURD and also a Resolution of Intent to annex the City owned property described in this memo per state regulatory requirements for City-owned land. As part of these two actions, the City Council set public hearing dates for the Council meeting on July 12 to take action on the District expansion and the annexation.
• On July 12, the Council is scheduled to conduct public hearings on the annexations and zone changes of the three properties described in this memo.
• On July 12, the Council is also scheduled to conduct a public hearing and a first reading on an ordinance to expand the SBBURD.
• If the City Council approves the annexations, zone changes and ordinance modifying the SBBURD on first reading on July 12, the Council will conduct second readings of the zoning and Districy expansion ordinances on July 26. The ordinances will take effect 30 days after second reading.

South Billings Urban Renewal Association Coordinator Jim Tevlin, working with City staff in the past 10 months, has been in contact with property owners and agents interested in having property included in the South Billings Boulevard Urban Renewal District. Five properties in total are proposed to be brought into the SBBURD. Several of these properties face significant hurdles to development with property conditions and cleanups, and public infrastructure needs that align with the goals and purpose of urban renewal efforts in South Billings. City staff also is proposing that recently purchased City property just south of the Billings Operation Center be included in the District expansion. The total acreage of all of the property under consideration is about 80 acres. Several of the properties to be included in the District expansion must also be annexed into the City prior to the Council formally expanding the SBBURD. These properties also must be zoned as they come into the City per Section 27-1615, resulting in this zone change being brought to the City Zoning Commission for review and recommendation and now the City Council at this meeting.

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 the staff recommendation and has forwarded a recommendation of approval to the City Council. The proposed zoning is in conformance with the 2016 Billings Growth Policy Guidelines.
 

The main stakeholders in this zoning process and the SBBURD expansion are the property owners whose property is to have the zoning changed. However, public discussion and opportunity to comment on the SBBURD expansion process and the elements of the expansion - annexation and zoning - has occurred at two City Council meetings already, at the Zoning Commission Meeting on June 1, and will also occur at this City Council Meeting. Further, surrounding property owners were notified via mail for all three of these properties subject of this zone change per the zoning process, and the three properties were posted with information about the Zoning Commission and the City Council meetings. Staff fielded several calls from property owners that received the surrounding property owner notice letters for the locations of this zone change as this memo was being prepared. They all were just curious and wanted clarification as to what was going on and if it affected their property directly. Staff also received four letters of opposition to the rezoning of the Adkins property included in this zone change at the corner of Jackson Street and King Avenue East. The concerns included allowing the pastoral, park-like property to be developed; allowing more than single family residential development because multi-family development increase crime; increased traffic; and increases in neighborhood conflicts. The four letters are attached to this memo for reference.

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.

Not approving the zone change will create a conflict where properties just approved for annexation into the City do not have City zoning applied to them.

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

Before making a decision on the proposed zone change, the City Council shall consider the following findings 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:

• 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·

• Walking Paths and Trails – Construct sidewalks, trails and pathways throughout the District with landscaping to ensure the safety of children and all pedestrians, as well as provide access to neighborhoods and services.
• The safety of all users and the connectivity of the transportation system are important criteria to consider in roadway designs and transportation plans
• Infill development and development near existing City infrastructure may be the most cost-effective
• 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

• Planning and construction of interconnected sidewalks and trails are important to the livability of Billings

• A mix of housing types that meet the needs of a diverse population is important

The zoning proposed for these three properties as part of the annexation and SBBURD expansion process includes CX (Heavy Commercial) for the Torgerson property; Residential zoning of NX1 and N2 for the Adkins property; and P-2 zoning for the City Owned property. Overall, infrastructure improvements that will occur at all three of these properties match the Growth Policy goals in Essential Investments listed above - pedestrian facility additions, development near existing utilities and services, and protection of the environmental quality of the Yellowstone River.

Torgerson Property - The CX zoning on the Torgerson property along the south frontage road fits in with the surrounding zoning and uses in the area. Property on the east and west of the subject property are zoned CX and are both already in the City Limits. Commercial development in this area fits with the major transportation access and frontage along the I-90 corridor, development in the City in this area is important to avoid septic systems and wells in proximity to the Yellowstone River, and the new owners of this property, Torgerson's Equipment, intend to expand their existing business in Billings to this site.

Adkins Property - NX1 and N2 zoning in the Adkins property provide housing choices per the goal of the Home Base element of the Growth Policy in this area of Billings and match well with the residential and commercial zoning at the corners of Jackson Street and King Avenue East, as well as north along Jackson Street. The NX1 zoning allows up to four housing unit structures at the corner, while N2 allows for single and two-unit housing structures on the majority of the property north along Jackson Street.

City Owned Property on South Billings Boulevard - P2 zoning for the City property correctly aligns the nature of the future development of this property as additional City service facilities just south of the City's current Operation Center. Development of this property also will begin to extend pedestrian facilities and public infrastructure south along South Billings Boulevard in an area that still has a rural road cross-section.

These zone changes also align with the goals of the SBBURD Urban Renewal Plan and South Billings Master Plan:

SBBURD Urban Renewal Plan - These zone changes and future development of these properties supports multiple goals of the Urban Renewal Plan:

Conservation and Support of Housing (pg 19) - Providing the District with housing opportunities is vital to the sustainability of the District.  With housing opportunities, individuals and families can live and work within the District.  This provides a dual benefit; first, the commute to work for individuals will be reduced and second, the businesses within the District will have a local work force to draw from. The Adkins property rezoning will address additional housing choices in the area.

Transportation and Pedestrian Circulation (pg 20) - The transportation and circulation situation in the TIF District should be a major focus during redevelopment of the area. Traffic patterns and access issues can affect the function and livability of a community or neighborhood. All three of these zone changes will facilitate development and pedestrian and street improvements in this area of Billings.

Infrastructure and Utilities (pg 21) - The District has infrastructure and utilities deficiencies that need to be addressed prior to any large influx of redevelopment or new building construction.  Water and sewer conditions need to be addressed due to out of date installations, inadequate lines, or increases in impacts to existing structures. All three of these zone changes will result in development that includes new public infrastructure to help serve new development and existing businesses and residents of the area.

South Billings Master Plan - These and future development of these properties supports multiple goals of the Master Plan:

Goals (pg 12) - Make SBBURD a desirable destination for reinvestment; Provide better streets and more diverse housing choices; Ensure the availability of City sewer and water, and complete streets with integrated stormwater and expanded transportation choices; Reduce blight and encourage reinvestment.
 
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 CX zoning will allow compatible uses adjacent to the CX zoning to the east and west. The proposed NX1 and N2 zoning will fit well with the neighborhoods around the intersection of Jackson Street and King Avenue East. The P2 zoning will enable the City to add to its service facilities adjacent to its existing Operation Center.

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. However, all of these properties are adjacent to Principle or Minor Arterial Streets, that can handle additional traffic volumes generated by both commercial and residential development. Future development of these properties also will involve traffic impact analysis to determine if any traffic improvements are needed based on the uses and traffic volumes generated from the development.

Water and Sewerage: The properties will all be served by public water and sewer systems when annexed to the City. Further, inclusion in the SBBURD will enable consideration of added infrastructure investment adjacent to these properties that will enhance the experience and safety of pedestrians and the traveling public.

Schools and Parks: The proposed zoning of CX and P2 for two of the properties should not impact the student population. Residential development on the Adkins property will have some affect on schools in the area. Schools are in proximity to the property, enabling students to walk or bicycle to school.

Fire and Police: The subject properties are all currently 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 through the Billings Building Division and Fire Department. 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. 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 or gaps in pedestrian facilities. However, with these zone changes and inclusion of the properties in the City, development of the properties will include pedestrian infrastructure as well as other street improvements to enhance both non-motorized and motorized transportation.

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. The CX zoning on the Torgerson property will match the existing CX zoning of property already in the City to the east and west of the property. The proposed zoning is compatible with the adjacent zoning and existing land uses. The NX1 and N2 zoning of the Adkins property will fit well with the surrounding residential and neighborhood commercial zoning in the area of the intersection of Jackson Street and King Avenue East. And the P2 zoning for the City property will fit the existing Billings Operation Center property directly to the north and facilitate future City service delivery.

8. Whether the new zoning considers the character of the district and the peculiar suitability of the property for particular uses.
The subject properties and the proposed zoning for each of them are designed to fit the neighborhoods and areas of Billings where they are located. The commercial uses allowed in CX will serve existing and new commercial development needs for Billings and the area. The NX1 and N2 residential districts will add to the housing choices and quantity in this area of Billings, which already has well established residential neighborhoods. The P2 zoning for the City property will accommodate expansion of City service facilities and the ability of the City to deliver services to its residents.

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.  Any development of the properties will need to meet the applicable site development requirements in the zoning code, including landscaping, screening, building heights and setbacks for the applicable commercial or residential district.

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 these three areas of the City. The Driscoll property is an area of continued commercial development. The Adkins property is in an established residential neighborhood where added housing opportunities are an appropriate use of the land. The City property is adjacent to its existing operation center and not near any residential development, so expanded city service facilities is a good fit for that area of the City.