Planning Staff recommends approval and adoption of the findings of the ten review criteria for Zone Change 1003, a Mixed Residential Planned Neighborhood Development zone change from Agriculture (A) to Suburban Residential Neighborhood (N3), Mixed Residential 1 (NX1), Neighborhood Mixed Use (NMU) and Public 1 (P1). This recommendation includes all Phases (1-3) although only Phase 1 will be annexed at this time. 

This is a zone change request for a new Planned Neighborhood Development zone change for 104.42 acres of land to be annexed in three phases south of Alkali Creek Road, north and east of the Billings Airport, and west of Foothill Drive.  The proposed Mixed Residential PND will include 62.4 acres of N3, 4.9 acres of NX1, .9 acres of NMU zoning, and about 16.4 acres of open space (P1). The first Phase will consist of 56.52 acres on the eastern portion of the property with N3, NX1 and Public 1 zoning districts. The PND is a new zoning tool to help guide the coordination of annexation, subdivisions, and master planning for new city neighborhoods. The previous zoning code allowed urban-type zoning districts in both the city and the county. In many cases, developers were "pre-zoning" parcels in the county prior to annexation. The new PND tool will allow developers to process all the zoning with the City Council, phase the annexation of the property (if necessary), and coordinate both of these processes with subdivision or master site plan review. The new tool applies a level of certainty to all stakeholders, including the surrounding property owners.

This zone change is for a Mixed Residential PND and includes some mixed residential zoning (NX1) in the southeast corner of the property (5%), Suburban Residential Neighborhood (N3) zoning for about 60% of the net land area and the remaining area in Neighborhood Mixed Use (NMU) and Open Space (P1 - 16%) districts. There are neighborhood scale open spaces shown on the plan as required by the PND regulations as well as an open space conservation area in Public 1 zoning for Alkali Creek. A master plan for the use and development of this open space is not yet completed. The applicant also owns another 139+ acres of land to the south and west that is remaining in the county and is zoned A - Agriculture. The owner recently sold 72.8 acres of land to the Billings Airport as an area to be protected from development due to its proximity to the main runway.  

APPLICATION DATA
OWNER: Ali and David Mitchell
AGENT: IMEG, Kolten Knatterud, P.E.
LEGAL DESCRIPTION: Portions of C/S 3795 Tracts A, B & D
ADDRESS: Generally located south of Alkali Creek Rd and northeast of Billings Airport
CURRENT ZONING: Agriculture (County) - A
EXISTING LAND USE: Agriculture - vacant land
PROPOSED USE: New Mixed Residential Neighborhood
SIZE OF PARCEL: 104.42 acres

CONCURRENT APPLICATIONS:
Petition for Annexation 21-14 - The Timbers Subdivision (city)

SURROUNDING ZONING AND LAND USE:
NORTH: Zoning: Agriculture (A)
Land Use: Agriculture - vacant land
SOUTH: Zoning: Agriculture (A)
Land Use:Agriculture - vacant land
EAST: Zoning: Agriculture (A)
Land Use: Agriculture and vacant residential land
WEST: Zoning: Agriculture (A)
Land Use: Agriculture - vacant land

This area of Billings in the Heights has not experienced any new major development in several years. The High Sierra Subdivision to the north and east has been building out for about 15 years. The anticipation of the connection of the Inner Belt Loop near this area of Billings will bring additional development. Development on the west side of Main Street tends to be mostly single family and two-family dwellings with few other housing options planned or developed. There is a great demand for other housing options in Billings Heights including 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. Housing types in the immediate area do not include many options for attached single family dwellings, smaller dwellings on small lots (less than 1/4 acre), or apartments of any kind. Many of the neighborhoods in the area were developed as County subdivisions and then annexed to the city when septic systems or on-site water supplies failed. The closest neighborhood - Sun Valley Subdivision - is still in the County and does not have access to water or sewer services. This neighborhood is zoned N4 - Large Lot Suburban Residential Neighborhood. 

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 2006 Billings Heights Neighborhood Plan goals and policies support the proposed Mixed Residential PND. The Billings Heights Neighborhood Plan goals and objectives stated the need to develop housing patterns that are compatible with existing neighborhoods, encourage high density multi-family development along arterial routes and maintain similar housing in established neighborhoods.The proposed zone change supports these goals. The 2016 Billings Growth Policy included a land use planning scenario for this area of Billings Heights due to the alignment of the Inner Belt Loop and the potential of immediate development in the area. The "Public Preferred Growth Scenario" included a mix of housing types although a denser pattern than previous patterns as well as some limited commercial development. In general, the 2016 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.

The applicant and agent conducted a pre-application neighborhood meeting on September 27th and September 28th, 2021 and about 27 surrounding owners attended. The meeting on September 27th was held in a virtual format and the meeting on September 28th was held in person to accommodate owners without internet formats. The surrounding owners asked questions about the proposed improvements, connections to the city water and sewer for existing homes, and the type of proposed development. Concerns ranged from noise, to crime, forced annexation, sidewalks, wildlife and protection for Alkali Creek. A summary of the meeting is included as an attachment. A PND zone change requires notification of all owners within 1/4-mile of the subject property. The list for this zone change includes over 100 owners.

As part of the PND zone change process, the applicant is also required to hold a pre-application Concept Review meeting with city staff to address any concerns with the street layout, zone districts, access, parks, utilities and similar infrastructure provisions. Staff was generally supportive of the proposed street layout and distribution of the zone districts.

Planning staff did not receive any comments prior to completing the staff report for the zone change.

The Zoning Commission may:

• Recommend approval and adoption of the findings of the ten review criteria for Zone Change 1003; or,
• Recommend denial and adopt different findings of the ten review criteria for Zone Change 1003; or,
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the zone change request.

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

Before making a recommendation to the City Council, the Zoning Commission shall consider the following findings of the ten review criteria for Zone Change 1003:
 

• To provide safe, good quality and affordable housing in the Heights.
• Develop housing patterns that are compatible with existing neighborhoods.
• Encourage high density multi-family development along arterial routes.
• Maintain similar housing in established neighborhoods.

The proposed PND is compatible with goals of the Billings Heights Neighborhood Plan. The proposed zone change and street layout will accommodate uses that are compatible in a mixed-residential environment. The proposed development will also have good access to outdoor activities and is in proximity to a natural greenway park (Pow Wow Park) Alkali Creek Road is an arterial street but there are no nearby neighborhood services or higher density housing. The proposed PND will accommodate a couple of small areas for these uses to begin to fill out these needs.
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 layout for the Timbers subdivision will allow the higher density housing - the NX1 - in a small 4.9-acre area on the south and east portion of the 56.52 acre Phase 1 annexed parcel. The NX1 zone allows 1-4 family dwellings and these can develop on fee simple lots or on larger lots in a common area arrangement or unit ownership. A majority of the neighborhood will be zoned for single family dwellings (N3 - 60%). The proposed Public zoned area is contiguous and surrounding Alkali Creek. There is no master plan for this 16+ acres as of this time but it will include trails and connectivity to Alkali Creek Road. These areas as shown meet the minimum requirements for the PND zone process. 

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 assembly and street layout is designed to secure the development from fire and other dangers. The Planning staff may recommend minor adjustments of the street layout during the subdivision review process.

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. Approval of the overall zoning plan and street layout will provide certainty both for the property owner and the surrounding owners. Annexation and provision of public health and safety services from the city will promote the general welfare of the area.

4) Will the new zoning facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirement?
Transportation: The applicant will prepare a traffic impact study in coordination with City Engineering and as part of the subdivision review process. This will ensure access from the full build-out of the development will be safe and have adequate traffic controls and management in place. The city and county will need to coordinate management of Alkali Creek Rd since the right of way jurisdiction will not be continuous from the existing city limits to the subject property. 
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 zone change and development of a new city neighborhood. SD #2 did not provide any comments.
Fire and Police: The subject property will be 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 future connections to adjacent areas including Pow Wow Park along Alkali Creek. Alkali Creek crosses Alkali Creek Rd approximately 750 feet east of the subject property. There are no pedestrian facilities along this section of Alkali Creek Road. It is a connecting road from Main Street to Highway 3 (Molt Road) to the west and has a posted speed limit of 45 mph. Alkali Creek Rd only carries about 770 vehicle trips per day in the most recent traffic counts (2020). The Inner Belt Loop Corridor Study indicated this volume is expected to increase to about 1,900 vehicles trips per day using historic growth information and up to about 3,500 vehicles trips per day under and "aggressive" growth model. The design of the intersections for the subdivision will need to accommodate the traffic in a worst case scenario. 

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 neighborhoods.

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 northeast of the Billings Airport and close to the Inner Belt Loop alignment will be a new growth area for Billings. There is a demand for a wide range of housing choices and the proposed zoning is suitable for this area.

9) Will the new zoning conserve the value of buildings?
The property is an agricultural parcel. There are no existing buildings on the property. The closest structure is the Morledge home at 1562 Alkali Creek Rd, 750 feet to the east. There should be no effect on the value of this structure from the proposed zoning. It can continue to be used for residential and agricultural purposes. Approval of the zone change will provide predictability 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 Mixed Residential PND will encourage the most appropriate use of this land in Billings.