Planning staff recommends condition approval of the requested variances and adoption of the findings of the review criteria for Variance 1349.

This is a variance request from Section 27-504 requiring a building height limitation of 50 feet whenever a structure in a Public 3 - Campus zone district is within 150 feet of a Corridor Mixed Use 1 (CMU1) zone district. This is a new requirement for the Public 3 -Campus zone districts implemented when the city adopted its new zoning code in January 2021. Prior to this time, the Medical Corridor Permit zone district had a similar intent to ensure buildings near the edge of the district were compatible in bulk and height with existing developments. The previous requirement was part of a "point system" for development in the corridor. The Medical Corridor Permit point system had "absolute criteria" and "relative criteria". The absolute criteria had to be met by every proposal and then a certain number of points from the relative criteria had to be achieved for the project to move forward. The building bulk and height limitations were included in the relative criteria.

The new P3-Campus zoning allows three types of districts - Medical, Education and Civic. The subject property is part of the Medical P3-Campus zone for this area. The campus districts used the previous Medical Corridor zone district as a foundation to build a more predictable zone district for all types of medical, educational and civic campuses throughout Billings and in the County zoning area. Each type of campus has a list of primary and accessory uses, and Section 27-500 has regulations that ensure the "edges" of the campus are compatible as possible with adjoining and nearby zone districts and neighborhoods. For example, there are no height limits for buildings within a P3-Campus district unless that building is within 150 feet of the zone boundary of another zone district. Similarly, lot coverage, setbacks or build-to zone requirements are not in effect for interior portions of a P3-campus.

The proposed building will replace the existing hospital current located on the north side of 12th Ave N between N 30th St and N Broadway. The challenge with constructing a new hospital in this location is the existing hospital must continue to function until the new building is complete and ready for patients. The area for the relocation is small but does place the building on N 27th Street between 11th Ave N and Poly Drive. Due to the smaller developable area, the building has to increase in height to accommodate the necessary number of patient beds, off-street parking, separation of emergency services from in-patient services and similar considerations for a medical facility of this size and scope.

The applicant has demonstrated a new facility cannot be constructed within the existing campus and conform to the maximum building height for two sections of the building - one along N 27th St and one near the northwest corner of the new building. The least encumbered property within the campus are on the parcels subject to this application. Other parcels are fully developed or would require extraordinary re-locations of existing services. In addition, the existing hospital must remain fully operational until the new facility is complete.

Zoning across N 27th St (east side) is Corridor Mixed Use 1 (CMU1) and has a variety of commercial businesses including hotels, restaurants, small medical services, coffee and drive through food services. This zone district is "one lot" deep east of N 27th Street and shares an alley with residential neighbors in the North Park neighborhood. The CMU1 zone district has a building height limit of 4 stories. This is generally equivalent to a 50-foot building height. The proposed new hospital will have nine stories for the patient care tower (see attachments) and a short section of the tower along N 27th Street will be within 150 feet of the CMU1 zone district on the east side of N 27th Street. This portion of the patient care tower will be approximately 160 feet above grade. 

Zoning of the property to the northwest - owned by the Foundation for MSU - is also zoned CMU1. The previous zoning of the property was Community Commercial (CC). This lot contains MacDonald Hall where the College of Business and International Studies are located for the MSU-Billings. The building is connected to the main campus across Poly Drive by a sky bridge to the parking garage. A portion of the northwest corner of the patient care tower will be within 150 feet of this zone district. The maximum height of this building section is proposed to be about 145 feet above grade and nine stories tall. 
 

Planning staff sent a mailed notice to surrounding owners, posted the property and published a legal ad twice in a newspaper. In addition, the application materials were published on-line. As of the date of this report, no comments were sent in response to the variance request notification.

The Board of Adjustment may:

• Conditionally approve the requested variance and adopt the proposed findings of fact for the review criteria as recommended by the Planning staff;
• Approve the requested variance with different or added conditions, or no conditions;
• Deny the requested variance and amend the findings of fact for the criteria;
• Allow the applicant to withdraw the variance request; or
• Delay action on the variance to a future BOA meeting.

Approval or denial of the requested variance will have no financial effect on the Planning Division budget.

Prior to approval, the Board of Adjustment shall ensure that the determinations for variances (Sec. 27-1627.D and E.), as outlined below, have been satisfied:
Section 27-1627.D
1) That special conditions and circumstances exist which are peculiar to the land, the lot or something inherent in the land which causes the hardship, and which are not applicable to other lands in the same district.
Applicant: When considering the design/construction of a full-service replacement hospital, the limited undeveloped and/or potentially available property contained within this urban campus creates a hardship. The area being proposed to locate this new hospital facility is at a minimum distance from the current hospital to support the new construction while minimizing impact on the existing hospital operations and the delivery of care to the community while under development. It is also the least encumbered with structures and infrastructure and is therefore easier and more cost-effective to develop. Hospital Function and Efficiency: The hospital property zoning (P3) does not define a height limit for structures, so most of the proposed development is accommodated within the current zoning allowances. The only exception is the height limitation triggered by the 150' setback from the Commercial zoning that impacts two areas of the patient care tower as previously described. We have been diligent about minimizing the building footprint but to fit the new facility into the available land on the campus, we are requesting that the two small portions of the upper floors of the north and east patient care towers that encroach into this height setback be allowed. This encroachment is essential for the success of the replacement hospital for several reasons:

• It will support a new hospital and patient care tower that takes advantage of vertical construction to enhance function, workplace efficiency, and to expedite life-saving medical treatment to patients.
• It optimizes the available land on the campus by stacking patient rooms and hospital services, thereby reducing horizontal growth/sprawl.
• Efficient use of the redevelopment property through minimizing horizontal construction allows for the continued operation of current hospital facility throughout construction and occupancy of the new hospital facility.

Staff: Staff agrees with the applicant's assessment of the constraints to conformance with the regulation. Although from a 2-dimensional aspect it appears to be a small shift to the south and a small shift to the west from where the proposed building is located, significant issues arise including encroachment on right of ways, and less than adequate clearance from existing facilities that support the continuation of hospital operations at 1233 N 30th St. The design could add more height to reduce the footprint of the structure but this would likely introduce additional challenges to meet building and fire safety codes. Another alternative is to reduce the height and spread the footprint of the building however this would cause the same challenges as shifting the building to the west and south.

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: The St. Vincent property is zoned P3 which supports the use, density and vertical development required for a major medical center and Hospital of the Future. The hardship encountered when abutting or near to the Commercial zone district CMU1 is the imposed setback that influences the building height of the upper floors. This negatively impacts the ability to design a compact and efficient hospital as is supported by the P3 zoning and commonly leveraged by surrounding properties/owners in the medical corridor. Our Patient Care Tower setback encroachment is so minor that there will be minimal to no negative impact on these commercial properties.
Staff: The existing hospital at 1233 N 30th Street is seven stories at its highest point and within close proximity to the residential neighborhood to the west (North Elevation). There are other buildings within the former medical corridor that are more than 50 feet in height and within 150 feet of other zone districts such as CMU1, N1, NX2 and DX. The prior zoning regulations did not have a specific height limit for medical facilities but did require taller structures to be setback further from the corridor edges. There were several height variances granted in the area for building height but none were ever required within the medical corridor district. The existing hospital (seven stories) and the Billing Clinic hospital (five stories) are the two main healthcare facilities in the campus district.

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: We are seeking an accommodation for a minor setback encroachment to support a new structure that is designed to meet all other P3 zoning criteria. Existing development on the St. Vincent campus and on other properties within this zone currently supports the use, development density and height. Granting this request does not provide any special privilege beyond what other land in the district already allows.
Staff: There are several height variances of record in the surrounding area and the campus is within walking distance of the Central Business District where there are no building height limits. Granting this variance is not a special privilege based on the prior zoning history and the existence of taller and larger buildings within the area.

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 general purpose/intent of the P3 zone as described in the City's Zoning Code supports large scale, vertical structures like we are proposing so the new replacement hospital will be in harmony with that purpose/intent. Attached as a separate document are thoughts on alignment of this facility with the growth policies. (See application and site plan attachment)
Staff: The application is supported by the 2016 City Growth Policy guidelines and the Infill Policy (2011). The proposed development will address the need to allow incremental increases in development intensity in the downtown core to support all the existing infrastructure investments for water, sewer, public safety, streets and other core civic functions. The medical facilities in this part of Billings provide a central location for families - local and visiting - to find health services. This activity in turn supports additional economic activity in the downtown core.

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 requested is approved: Billings City Code Section 27-504 requiring a maximum building height of 50 feet within 150 feet of a CMU1 zone district to allow a maximum building height up to 155 feet for a 70-foot wide section of the proposed building’s east elevation 115 feet west of a CMU1 zone district; and a building height up to 145 feet for a diagonal portion of the northwest building elevation 100 feet south and east of a CMU1 zone district. No other variance is intended or approved by this application. 
2. The development of the new hospital will be in substantial conformance with the submitted site plan (footprint) and proposed building maximum height within the 150 feet of the CMU1 zone districts. Minor changes to the site plan will be allowed to accommodate site specific issues as part of the building permit process.
3. The applicant will submit the first building permit for the project within 3 years of Board of Adjustment approval.
4. The applicant will complete the new hospital building within 9 years of Board of Adjustment approval.
5. All other zoning regulations, except for this specific variance, and any other applicable city regulations apply to the development of the proposed new hospital.
6. Failure to begin or complete actions required by this approval within the time limits set forth shall void this variance.
7. This variance is approved, subject to the conditions set forth herein, and shall become effective immediately upon approval of the Board of Adjustment, shall run with the land described in this authorization, and shall apply to all current and subsequent owners, operators, managers, leaseholders and their heirs and assignees.
    

3) The Board shall prescribe a time limit within which the action for which the variance is required shall be begun or completed, or both. Failure to begin or complete such action within the time limit set shall void the variance.
Staff is recommending the first permit be submitted within 3 years and the entire hospital structure be completed within 9 years of Board approval.

4) Under no circumstances shall the Board grant a variance to allow a use not permissible under the terms of this zoning code in the district involved. A variance shall not be a grant of special privilege inconsistent with limitations placed upon other properties in the district.
The granting of this variance would not allow a use that is not allowed in the zoning district. Hospitals and medical facilities are allowed uses within the P3-Campus Medical zone district.