Applicant: The project land includes unique conditions and constraints that impact Costco's ability to meet the specific parking siting requirements of the Zoning Code that do not apply to other properties in the same district.   These include an irrigation ditch that traverses the site between Zoo Drive and Shiloh Drive, and limited direct access to the surrounding street network. The irrigation ditch includes a 50-foot easement that prevents the siting of any structures along Shiloh Drive and significantly restricts the buildable area along the Zoo Drive frontages. Costco consulted with the irrigation district on potential solutions to mitigate the site impact of the canal. However, the functional and technical requirements prohibit any significant relocation of the canal. Costco would need to significantly reduce the size of the warehouse building in order to locate it along the Zoo Drive frontage and would not be able to construct the MDO. Additionally, the project area is effectively a corner property with only two frontages that have direct access to adjacent streets. Opportunities to create driveways from the two frontage streets are limited due to the size and design requirements of the building and fuel facility, as well as the setback restrictions of irrigation facilities in the northwest corner of the project site. Also, the driveway entrance to Shiloh Drive is restructured to a right in/right out and is generally fixed in location due to the intersection with Zoo Drive to the north and existing off-site driveways and the intersection with Pierce Parkway to the south. As a result, these access restrictions make it difficult to place the building closer to the street frontages without requiring the closure of at least one driveway. Limiting direct access to the surrounding streets' network would force members to use the shared driveway to the east of the site, creating unnecessary congestion for both Costco and the adjacent parcels. The combination of these unique conditions creates a significant hardship that restricts Costco's ability to meet the strict application of the surface parking siting standards without creating a detrimental impact to the layout or operation of the development.
Applicant Supplemental Information: In order to accommodate the project, the existing Canyon Creek irrigation ditch is being reconfigured and piped underground across the site. The proposed, piped condition is safer and provides increase development potential now and in the future.Preliminary pipe sizing with the constraints of the upstream and downstream connection elevations revealed that the irrigation pipe would need to be relocated. If the pipe were to be installed in its current configuration, the pipe would be above grade by a few feet. Our team coordinated with the Canyon Creek Ditch Company to find a route that allowed the ditch to be piped within the constraints of the existing grades, follows a path that minimizes disruption to site development, and maintains the flow characteristics needed to service downstream irrigation recipients. The relocation of the pipe will require a 50-foot easement restricting the development of any structures. Due to existing grades, the reconfiguration needs to avoid sharp bends because the ditch slope is very shallow and would lead to debris stagnating and blocking the canal over time. As a result, rerouting the ditch around the northwest street frontages is not a feasible option.

Staff: There are special circumstances that exist which are peculiar to the lot that are not applicable to other lots in the same district. The property is encumbered by the Canyon Creek Ditch that crosses the northwest corner of the property. The applicant has submitted supplemental information on the plan to pipe the ditch. Approximately 10% of the land area is on the north and west side of the ditch. It is not possible to re-locate the open ditch alignment or to place any structure over the ditch. It is possible to pipe and pave over the ditch crossing. Parking and driving over the piped ditch is feasible. This has been done in several areas to the north and east of the subject property where ditch water users no longer exist. The applicant has demonstrated the infeasibility of other building and fueling facility locations. The hardship combined with operational safety, site efficiency, traffic movements for customers and delivery vehicles supports the proposed site plan. If it was feasible to re-align the ditch to the edge of the property, then a site plan with the building in front of all the parking would have been feasible. The applicant's proposed site plan puts 61% of the surface parking between the building and Zoo Drive (the front yard). The applicant analyzed each of the prior staff proposed site layouts for feasibility. Those site plans and analysis are included in the attachments. Each of the three alternate staff layouts presents a deficit to either safety, site access, efficiency of the site or truck traffic.

2) That a literal interpretation of the provisions of this Chapter would deprive the applicant of rights commonly enjoyed by other tracts in the same district.

Applicant: As demonstrated by the enclosed alternative layouts, the literal application of the surface parking siting standards on this specific site makes it practically infeasible to place the building along either street frontage. Due to the location of the irrigation ditch and associated no-build easement, there is no area along the Shiloh Drive frontage that can accommodate the warehouse building. Similarly, the available developable area along Zoo Drive is not large enough to accommodate the warehouse, which requires access on the east side of the building for the tire center and the west for loading. The limited space would also prohibit the future addition of the MDO. In order to meet the strict application of the surface parking standards, Costco would need to reduce the size of the warehouse and limit future growth at this location. This would significantly restrict Costco's ability as a regional retail operator to meet the anticipated demand of its members and would limit its rights to fully utilize the development standards and allowances of the CX zone, which is intended to support heavy commercial uses.
Applicant Supplemental Information: A. Relocated to Zoo Drive Frontage (Attached as Staff Alternate 1): This alternate layout shows the warehouse located along the Zoo Drive frontage in a north to south orientation, with the main entrance located at the northwest corner of the building directly adjacent to Zoo Drive. As a result, only a small portion of parking is located near the main entrance requiring members to travel up to 1,000 feet to reach the furthest areas of parking. Additionally, parking areas to the south and east of the building are not visible from the warehouse entrance, impacting on-site way-finding and will be less desirable and potentially less safe.This layout reduces access to the surrounding transportation network to four points: one on Zoo Drive, two on Pierce Parkway, and one on Shiloh Road, which is limited to right-in/right-out access. But more significantly, it creates a narrow, congested corridor for vehicles to access the parking area from the main access point on Zoo Drive, which is anticipated to be signalized. In order to place the fuel facility so that it is visible from the entrance, it would most likely need to go in the southwest corner of the site. This reduces parking near the entrance and creates a source for traffic congestion. More specifically, the confluence of driveways from the surrounding street access points creates a single, congested intersection south of the building at the junction of the warehouse parking area and gas facility. The alternative location for the Fuel Facility would be to the east of the warehouse, which is not visible from the warehouse entrance and is the least preferred option by the neighboring properties. This increases potential conflicts between trucks, vehicles and pedestrians, and impacts circulation for the tire center and MDO operations.For the reasons outlined above, and as specifically noted on the attached exhibit, this proposed Site Plan will not work.
B. Zoo Drive Orientation – Relocated to Center of the Site (Attached as Staff Alternate 2): This alternate layout shows the warehouse located in the center of the site in an east to west orientation, with the main entrance located at the southeast corner of the building.There are two fatal flaws to this plan; (i) the fuel facility is behind the building and (ii) a significant amount of parking would need to be placed behind the building. If parking were to be located along Zoo Drive, it would be underutilized due to the excessive travel distance and lack of visibility from the main warehouse entrance. It also introduces safety concerns due to its location. In addition, if the fuel facility was relocated to the eastern side of the building, it would create poor interaction with the entrance and require even more parking to be placed behind the building.Functionally, this option would need to be modified further in order to create the necessary space along the eastern façade to operate the Tire Center, which requires a 30-foot drive aisle and associated parking.The entrance from Shiloh Road would require a long throat into the site, requiring vehicles to circulate around the back of the warehouse to the driveway entrance from Zoo Drive, in order to reach the warehouse entrance and loading area. This will result in a bottleneck at the Zoo Drive intersection and require delivery trucks to circulate past the warehouse entrance. Additionally, the congestion at the intersection with Zoo Drive will be exacerbated by traffic from vehicles traveling between the fuel facility and warehouse through this same intersection. As a result, this would direct all vehicles near the warehouse entry/exit area, increases the mixing of trucks, vehicles, and pedestrians.For the reasons outlined above, and as specifically noted on the attached exhibit, this proposed Site Plan will not work.
C. Shiloh Road Orientation – Relocated to Zoo Drive (Attached as Staff Alternate 3): This alternate layout shows the warehouse located along Zoo Drive with a south to north orientation, with the main entrance located at the northeast corner of the building. Similar to the aforementioned alternate shown on Exhibit B, this option would need to be modified further in order to create the necessary space along the eastern façade to operate the Tire Center, which requires a 30-foot drive aisle and associated parking. Also, only a small portion of parking is located near the main entrance requiring members to travel over 1,300 feet away to reach the furthest areas of parking. Additionally, a majority of the parking is located out of view from the main building entrance, impacting on-site way-finding and making the site less desirable and safe for members who will need to circulate around the building. More critical to the safety concerns of this option is the fact that the proximity of the entrance to the primary access point from Zoo Drive creates significant member vehicle interaction that is avoided with the project plan. This layout reduces access to the surrounding transportation network to four points: one on Zoo Drive, two on Pierce Parkway, and one on Shiloh Road. Similar to the other Zoo Drive facing alternate, this layout creates a narrow, congested corridor for vehicles to access parking area. As mentioned above, the confluence of driveways from the surrounding street access points creates a single, congested intersection at the junction of the warehouse parking area and gas facility. This increases potential conflicts between trucks, vehicles and pedestrians, and impacts circulation for the Tire Center and MDO operations. For the reasons outlined above, and as specifically noted on the attached exhibit, this proposed Site Plan will not work.

Staff: This application is a request of first impression, meaning the Board of Adjustment has not ever considered an application to deviate from the parking location requirement. Under the previous zoning code for the city, parking lots were allowed in any location on a lot in relation to the building and street frontage. Most of the nearby developments have the buildings centered on the lots with parking lots surrounding the structure. (See attachments). Several of the existing hotels on the north/east side of Zoo Drive close to the interstate are placed close to the front property line with fewer than 50 parking spaces between the building and Zoo Drive. Large front yard parking lots are an outdated pattern of suburban commercial development. It is inefficient and a costly development pattern to sustain over time. The right to place parking in the front of a building is commonly enjoyed by some previous developments in the area. The rights commonly enjoyed by others in the district are now considered non-conforming site characteristics. It would not be consistent with current regulations to grant a variance based on prior development standards. New developments are required to meet current regulations - not prior regulations.

Staff proposed several alternate building locations and site plans for the previous BOA meeting to consider. Since this meeting was postponed, the applicants have taken the time to thoroughly review each alternate location and to consider how the prior site plan could be modified to address the zoning code intent and staff concerns. The supplemental information (above) along with the attachment demonstrate the proposed site plan is the applicant's preferred approach to address the site constraints, the zoning requirements and mitigate the impact of this variance on the surround properties. 

3) That granting the variance requested will not confer on the applicant any special privilege that is denied by this zoning code to other land in the same district.

Applicant: Granting the requested variance to the Zoning Code parking siting standards is supported by this narrative, along with the enclosed proposed and alternative layouts and associated parking waiver. As described in this narrative, Costco intends to develop a warehouse, fuel facility, and future MDO to address the limitations of its current facility in Billings and continue to serve its members in the surrounding region. The layout of the facility, including the location and amount of parking, is based on a demand analysis prepared for this specific location. Reviewing the alternative layouts demonstrates that strict compliance with the Zoning Code's parking siting standards creates unnecessary hardship and limits the rights of Costco to develop this project in a way similar to other tracts within the surrounding district. Specifically, applying those standards would result in a layout that restricts adequate access to the site, limits building size, and constrains site circulation. As a result, these combined findings support the decision to grant the requested variance based on the merits of the project and would not act as a special privilege to the applicant that would be otherwise denied within the same zoning district.

Staff: Granting any requested variance may confer on the applicant a privilege and even more so when a variance is the first of its kind before the board. Careful analysis and consideration for special circumstances is necessary. While surrounding properties may have developed in a similar way under the previous zoning regulations, the new zoning code is intended to move away from this style of development. Variance requests should tend to be the minimum required to accommodate the proposed construction. Through the supplemental information and analysis of several alternate plans, the applicant has demonstrated support for the proposed site plan. Staff does not believe granting this variance, based on this analysis, the site constraints and the proposed mitigation, will grant a special privilege to the applicant. Staff does not believe granting this variance will make it easier for future developers in the area to receive similar variance. The criteria for approving this variance are site specific and based on careful analysis. 

4) That the granting of the variance will be in harmony with the general purpose and intent of this zoning code and with the Growth Policy.

Applicant: The uses associated with the project are all allowed as-of-right and granting of a variance to the surface parking siting requirements would allow for the development of a uniquely constrained parcel and would remain consistent with the purpose of the CX zone. Specifically, the CX zone is designed to provide standards and use allowances to accommodate large, auto-oriented commercial uses that are suited for corridors located away from residential and mixed-use areas. Allowing a variance to provide flexibility to the surface parking siting requirements does not alter the type or intensity of uses associated with the project in a way that would be out of character for the surrounding area or the intent of the CX zone. The project is consistent with the types of large-format auto-oriented commercial uses in the surrounding CX zoning district. Granting of the variance to allow for the development of this parcel is also consistent with the guidelines described in the 2016 Billings Growth Policy. Specifically, it supports the broad goal of "Essential Investments" by allowing Costco to relocate its existing operations to a neighborhood that is zoned for the type of regional retail services it provides. As a result, Costco is able to continue providing essential goods and services to members within the surrounding region, a stated guideline within the Growth Policy. A variance also allows Costco to develop an area that currently sits vacant with a high-quality building, provide attractive landscape along the street frontages, and contributes to the "Community Fabric" of an established commercial area that includes similar auto-oriented commercial uses. The addition of the Costco development to this area also contributes to providing "Strong Neighborhoods" that are designed to be safe, attractive, and provided essential services to the greater community. Based on the findings provided in response to the required decision- making criteria, the approval of a variance for this project would support a Costco development that is harmonious with the intent of the Zoning Code and stated goals and guidelines of the City Growth Policy.
Supplemental Applicant Information: We believe that the above responses, together with the enclosed revised plans, landscape perspectives, and alternate layout analysis exhibits address the feedback received from both the Staff Report and our subsequent discussions, and demonstrate the key considerations Costco made in meeting the intent of the Heavy Commercial design standards. This variance request is the minimum necessary deviation from the City parking siting Code in order to allow the project to meet the Costco's operational requirements within the constraints of the site.

Staff: Granting this variance as requested will meet the general purposes and intent of the zoning regulations and the 2016 Growth Policy. The Growth Policy guidelines support new developments that support existing investments in infrastructure, stabilize and grow the city's tax base and enhance entryways to the city. The proposed mitigation measures, landscape plan, activity centers on Zoo Drive, along with the investment in a regionally significant commercial center, will support these goals and guidelines. The zoning regulations were adopted to specifically require the placement of surface parking lots to the side or rear of buildings to minimize the inefficient use of land on the street frontage, create street frontages that benefit the community at large, minimize the need for over-sized signs, and allow for the sustainable and adaptable use of commercial land. The zoning regulations were also adopted to recognize that not all regulations can apply everywhere in all circumstances especially when geography and topography create hardships. While the area that is impacted by the Canyon Creek Ditch is relatively small in comparison to the overall site, the applicant's unique building requirements allow this constraint to have a larger impact on the site design and layout. The intent of the zoning regulations is also to recognize when these site hardships occur and to grant variances from strict adherence to the code requirements. 

Section 27-1627.E
2) In granting any variance, the Board may prescribe appropriate conditions and safeguards in conformity with this Zoning Code. Violation of such conditions and safeguards, when made a part of the terms upon which the variance is granted, shall be deemed a violation of this Zoning Code;

Staff is recommending conditions for the variance request:

1. The variance is to allow up to 535 of the surface parking spaces to be in the front yard of the proposed warehouse building at 3840 Zoo Drive. The front yard is a yard extending along the full length of the front lot line which is situated between the warehouse building and the front lot line on Zoo Drive. The variance would be granted based on the April 18, 2022 site plan and the April 25, 2022 Concept Landscape Plan (L1.1, L12 and L1.3), Costco provided and that is attached to this variance memo. No other variance is intended or implied.
2. The variance is limited to Lots 1-8 and 9A of Block 2, Shiloh Business Park Subdivision, Amended and generally located at 3840 Zoo Drive.
3. The applicant will install and provide ground markings for two safe pedestrian pathways through the front yard parking lot from Zoo Drive to the warehouse building, as described in Supplemental Item number IV (page 7) that is attached to this variance memo.
4. The applicant will install the gazebos and pavilions as shown on Concept Landscape Plan sheet L1.2. Minor modifications to the location of these structures is specifically allowed.
5. The street frontage landscaping on Zoo Drive and South Shiloh Rd will not include any evergreen trees or shrubs that are intended to obscure the subject property either at the time of installation or at maturity. All street trees installed shall be trimmed up so the lowest branch height at installation is at least 8 feet above grade. The Concept Landscape Plan will be a starting basis for a final landscape plan submitted with the Building permit application.
6. No outdoor announcement system shall be audible beyond the exterior property lines.
7. The applicant will apply for a building permit within 2 years of Board approval and complete the project within 5 years of Board approval.
8. Any structures not shown on this approved site plan, will comply with all zoning regulations and other city regulations in place at the time of development.
9. All other zoning regulations, except for this specific variance, and any other applicable city regulations apply to the development of the warehouse structure, the fueling facility and the MDO future expansion on the warehouse building.
10. Failure to begin or complete actions required by this approval within the time limits set forth shall void this variance.
11.These conditions of variance approval shall run with the land described in this authorization and shall apply to all current and subsequent owners, operators, managers, lease-holders, heirs and assigns.