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18097, Staff Report for the Alcohol Service Separation Exemption Standards
in the B-3 and B-2M Districts Zone Text Amendment
Public Hearing Dates: Zoning Commission, March 20, 2018
City Commission, April 2, 2018
Project Description: Zone text amendment limiting the restrictions set forth in 16-3-
306(1), Mont. Code Ann. for certain restaurants holding a State issued Beer with
Wine Amendment alcohol license. The amendment only applies to restaurants within
the B-3 and B-2M zoning districts.
Project Location: These amendments apply to properties within the B-3 (Central Business
District) and B-2M (Community Business Mixed-Use District) as detailed in the text.
Recommendation: Approval
Zoning Commission Recommended Motion: Having reviewed and considered the
application materials, public comment, and all the information presented, I hereby
adopt the findings presented in the staff report for application 18097 and move to
recommend that the City commission adopt Ordinance 1999 the Alcohol Licenses for
Beer with Wine Amendments exemption text amendment.
City Commission Recommended Motion: Having reviewed and considered the application
materials, public comment, Zoning Commission recommendation, and all the
information presented, I hereby adopt the findings presented in the staff report for
application 18097 and move to provisionally adopt Ordinance 1999 the Alcohol
Licenses for Beer with Wine Amendments exemption text amendment.
Report Date: February 5, 2018
Staff Contacts: Tom Rogers, Senior Planner
Agenda Item Type: Action – Legislative
18097, Staff Report for Alcohol Exemption Separation Standards Text Amendment Page 2 of 13
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Project Summary ................................................................................................................. 2
Unresolved Issues ............................................................................................................... 4
Zoning Commission Recommendation............................................................................... 4
City Commission Alternatives ............................................................................................ 4
SECTION 1 - MAP SERIES .................................................................................................... 5
SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 8
SECTION 3 - STAFF ANALYSIS AND FINDINGS ............................................................. 8
Section 76-2-304, MCA (Zoning) Criteria ......................................................................... 8
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 12
APPENDIX A - PROJECT BACKGROUND ....................................................................... 12
APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 13
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 13
FISCAL EFFECTS ................................................................................................................. 13
ATTACHMENTS ................................................................................................................... 13
EXECUTIVE SUMMARY
Project Summary
Local business owners have inquired as to the effect of the City’s exemption from the State
of Montana’s restriction regarding licensing of retail alcohol establishments within 600 feet
of a school or church1. The State currently has over 30 different types of alcohol licenses.
1 16-3-306. Proximity to churches and schools restricted. (1) Except as provided in subsections (2) through (4),
a retail license may not be issued pursuant to this code to any business or enterprise whose premises are within 600
feet of and on the same street as a building used exclusively as a church, synagogue, or other place of worship or as a
school other than a commercially operated or postsecondary school. This distance must be measured in a straight line
from the center of the nearest entrance of the place of worship or school to the nearest entrance of the licensee's
premises. This section is a limitation upon the department's licensing authority.
18097, Staff Report for Alcohol Exemption Separation Standards Text Amendment Page 3 of 13
Sect. 16-3-306(4), MCA, authorizes a local government to supplant the 600-foot rule. The
City of Bozeman has done so through adoption of 4.02.020.B, BMC2 but only for restaurant
beer and wine license holders. The City has not provided for an exemption from the State’s
distance rule for any other license type.
City staff have studied the issue, inquired about the alcohol licensing process with the State
of Montana, and analyzed through Geographical Information System (GIS) the appropriate
locations for an additional exemption to be permitted with conditions. Section 1, Map Series,
includes illustrations showing the location of current alcohol license holders in the B-2M and
B-3 districts. Currently 13 restaurants with a beer and wine license qualify for the exemption.
Representatives from the State Department of Revenue, the agency assigned to regulate the
sale of alcohol, estimate that in the future there may be only a few additional alcohol licenses
issued per year for the Bozeman area.
The Ordinance, as drafted, would amend the municipal code to allow holders of a State
issued Beer with Wine Amendment alcohol license to qualify for the Bozeman local 600-foot
rule exemption through the appropriate permitting process. In addition, businesses operating
with this alcohol license must meet and continue to meet the standards associated with a
Restaurant Beer & Wine license. These standards are detailed in Section 3 of Ordinance No.
1999 and include hours of operation, food must be the primary revenue generator, gambling
is prohibited, and alcohol can only be sold to patrons who order food.
(2) However, the department may renew a license for any establishment located in violation of this section if the
licensee does not relocate an entrance any closer than the existing entrances and if the establishment:
(a) was located on the site before the place of worship or school opened; or
(b) was located in a bona fide hotel, restaurant, or fraternal organization building at the site since January 1,
1937.
(3) Subsection (1) does not apply to licenses for the sale of beer, table wine, or both in the original package for
off-premises consumption.
(4) Subsection (1) does not apply within the applicable jurisdiction of a local government that has supplanted
the provisions of subsection (1) as provided in 16-3-309.
2 Sec. 4.02.020. - License; exceptions.
A. The sale of alcoholic beverages is permitted only in districts authorized in chapter 38 of this Code to allow such
sales.
B. The limitations set forth in MCA 16-3-306(1) do not apply to restaurants holding a "restaurant beer and wine
license" also known as a "cabaret beer and wine license" nor to those owning a "catering endorsement" as those
terms are defined in the Montana Alcoholic Beverage Code. However, nothing in this article shall be construed
to allow the business license to be unilaterally approved and all must apply for and receive a conditional use
permit as set forth in chapter 38 of this Code.
18097, Staff Report for Alcohol Exemption Separation Standards Text Amendment Page 4 of 13
Unresolved Issues
None identified at this time.
Zoning Commission Recommendation
To be determined on March 20, 2018.
City Commission Alternatives
1) Adopt the ordinance as presented,
2) Direct revisions to the ordinance prior to adoption and request staff to respond with
proposed revision for consideration at a future hearing,
3) Do not adopt the ordinance, or
4) Request additional information and continue discussion on the ordinance.
Page 5 of 13
SECTION 1 - MAP SERIES
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18097, Staff Report for Alcohol Exemption Separation Standards Text Amendment Page 8 of 13
SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a municipal code text amendment, Staff
recommends approval as drafted.
The Zoning Commission will hold a public hearing on these text amendments on March 20,
2018, at 6 pm in the City Commission room located at 121 N. Rouse Avenue, Bozeman,
Montana.
The City Commission will hold a public hearing on these text amendments on April 2, 2018
in the City Commission room located at 121 N. Rouse Avenue, Bozeman, Montana.
SECTION 3 - STAFF ANALYSIS AND FINDINGS
In considering applications for approval under this title, the advisory boards and City
Commission shall consider the following criteria. An amendment is a legislative action;
therefore, the Commission has broad latitude to determine a policy direction.
In considering the following criteria, the analysis must show that the amendment
accomplishes zoning criteria A-D or is neutral. Zoning criteria E-K must be considered and
may be found to be affirmative, neutral, or negative. A favorable decision on the proposed
application must find that the application meets all of criteria A-D and that the positive
outcomes of the amendment outweigh negative outcomes for criteria E-K.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Yes. The growth policy does not dictate uses or specific standards to the level of detail
contained in the ordinance. It does identify issues and priorities for consideration and does
contain goals and objectives that are desirable outcomes. There is no prioritization of one
goal or objective over another. In determining appropriateness of a particular zoning
ordinance, the Commission needs to find a balance that best advances the interests of the
community. It is inappropriate to maximize one item to the detriment of the remainder of the
goals and objectives of the document. The City adopted the current edition of the growth
policy, the Bozeman Community Plan, in 2009. The Community Plan consists of 17 chapters
detailing community context, land use, community quality, arts and culture, economic
development to name a few. The text of Chapter 38 as amended is a balance of the various
goals and priorities in the Bozeman Community Plan and advances the plan overall.
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A number of goals and objectives in the Bozeman Community Plan apply to this text
amendment.
Goal LU-2 states the City ought to designate centers for commercial development rather than
corridors to encourage cohesive neighborhood development in conjunction with non-
motorized transportation. The Central Business District (CBD) or B-3 district is destination
for food, culture, with the associated consumption of alcohol. The highest density of
residence in the City is proximate to these services allowing for greater alternative
transportation than a vehicle. Midtown’s (B-2M) stated policy to encourage diverse and
active streets in the City. Midtown’s location and existing infrastructure facilitate this
outcome. Although the B-2M district may be applies elsewhere in the City, an areas that
qualifies for this designation would meet the general intent of these goals.
Chapter 8 addresses economic development. Relevant goals include Goal ED-1: Promote and
encourage the continued development of Bozeman as a vital economic center and Objective
ED-1.1: Support business creation, retention, and expansion. Emphasize small businesses,
‘green’ businesses, and e-businesses.
Finally, the level of detail associated with the text amendment is beyond the specificity found
and intended in the Community Plan.
B. Secure safety from fire and other dangers.
Yes. All other applicable development standards and building codes will apply to a utilize
this special exemption to establish or provide alcoholic beverages on a given property.
Building and fire standards and codes are designed to mitigate impacts, provide a safe
environment, and protect from fire and other dangers. The City has extensive experience with
these standards and monitors and amends standards as needed. The standards meet this
criterion.
Setbacks and other development standards facilitate emergency service access. See also
criterion C.
C. Promote public health, public safety, and general welfare.
Yes. The essential standards for provision of public services such as water and sewer will
not be modified. The balance of proposed standards are expected to prevent overcrowding or
other negative impacts. Specific standards are proposed designed to mitigate negative
outcomes of including this alcohol sales license type. All State required performance
measures are unchanged. In addition, annual business licenses are required as with all
business operating in the City limits.
Chapter 4, Alcoholic Beverages, of the Bozeman Municipal Code includes other provisions
that are not modified by this text amendment detailing the City’s alcohol policies to insure a
safe and healthy environment for its residence. Section 4.04.010.C states, “It is the intent of
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the city commission to address those areas related to alcohol access, consumption and usage
which are not otherwise addressed by the current law in the state. Violations such as
Endangering Welfare of Children (MCA 45-5-622), Unlawful Transactions with Children
(MCA 45-5-623), Unlawful Attempt to Purchase or Possession of Intoxicating Substance
(MCA 45-5-624), Driving under the Influence of Alcohol or Drugs or Operation with
Alcohol Concentration of .08 or More (MCA 61-8-401 and 61-8-406), and Operation of
Vehicle by Person under Twenty-One with Alcohol Concentration of .02 or More (MCA 61-
8-410) have all been specifically addressed by state law as noted and will be enforced within
the city under those laws. Disorderly Conduct and Public Nuisance (MCA 45-8-101 and 45-
8-111) violations shall be addressed by state code.”
The City also has adopted noise ordinances to insure adequate public safety and a healthy
environment. Applicable noise standards are in Chapter 16, article 6, as applicable.
Therefore, this criterion is met.
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Yes. Standards for provision of public facilities are not being altered. Any proposed business
falling under this use classification will be required to meet all other applicable standards for
transportation, water and sewer utilities.
E. Reasonable provision of adequate light and air.
Neutral. The basic standards for setbacks, dedication of parks, on-site open spaces, etc. that
affect this criterion continued with the proposed ordinance. However, building designs and
locations vary by site layout and programmatic needs. The B-2M and B-3 districts are
designated areas for commercial use and development. The City’s commercial development
standards insure adequate provisions of light and air. Building reuse or new construction
must meet applicable building construction standards with adequate fire protection.
F. Effect on motorized and non-motorized transportation systems.
Yes. The proposed amendments support multi-modal transportation by encouraging
restaurant uses in the primary commercial areas in the central part of the City. The B-2M and
B-3 district are located in area with ample street network, sidewalks, pedestrian pathways,
designated bike lanes, public transportation routes, and private ride-hailing services. Ride
sharing in Bozeman has not yet been established.
G. Promotion of compatible urban growth.
Yes. The amendments promote the continued growth of the City by providing more urban
development standards. The standards, as shown in other criteria, are consistent with the
development standards and patterns of the City.
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H. Character of the district.
Yes. All zoning districts provide for a variety of principal and conditional uses. Those uses
vary by district. The uses range in intensity and likely size. No single use defines the entirety
of any zoning district. Restaurants are a permitted use in both the B-2M and B-3 districts.
On-premise consumption of alcohol is a permitted use in the B-2M and B-3 districts once
securing a Conditional Use Permit or a Special Use Permit after March 31, 2018 (see
Ordinance No. 1978).
These amendments further the goals of the Design and Connectivity Plan for the N. 7th
Corridor (2006) and the Midtown Urban Renewal Plan. The creation of the B-2M District
was expressly focused on continuing and evolving the character of the district. This
amendment to expand the exemption will continue the evolution of this district and promote
infill revitalization and development.
Similarly, it is the intent of the B-3 central business district is to provide a central area for the
community's business, government service and cultural activities and to encourage high
volume, pedestrian-oriented uses. Therefore, this criterion is met.
I. Peculiar suitability for particular uses.
Neutral. No changes to the zoning boundaries are proposed with these amendments. The
location of zoning districts has previously been found to be appropriate. The authorized use
tables have been reviewed for consistency with the intent and purpose of individual districts
and found to be appropriate.
J. Conserving the value of buildings.
Neutral-positive. No changes to the zoning boundaries are proposed that would cause
buildings to become non-conforming to the district in which they are located. Other portions
of the municipal code require buildings to be maintained in a safe and secure condition to
avoid decay and public hazards. The building design standards of Article 5 minimize
negative impacts of development on adjoining properties. The community design standards
of Article 4 ensure adequate street circulation, parks, and other necessary features.
Recent development has shown considerable investment is associated with adapting existing
buildings and constructing new buildings to house restaurants and establishments for on
premise consumption of alcohol. If the original tenant moves on, the improvements remain
which may elevate the updated/new building and adjacent properties value.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Yes. No changes to the zoning boundaries are proposed with these amendments. The uses
authorized in the use tables for each district are consistent with the district purpose. The
zoning boundaries are in substantial compliance with the land use map of the growth policy,
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which establishes the broad policy for location of uses. As described in Criterion A, the
proposed zoning is consistent with the growth policy overall. The proposed amendments do
not make material changes to the zoning districts.
PROTEST NOTICE FOR ZONING AMENDMENTS
IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE
OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT
AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A
PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT
BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING
MEMBERS OF THE CITY COMMISSION.
For this text amendment application the applicable calculation of protesting owners would
include all owners of all properties in all districts of the City for issues affecting the entire city
such as review processes and generally applicable standards. For issues affecting a defined
subsection of the city such as an individual zoning district the calculation of protesting owners
would include all owners within the affected area. This protest does not apply to provisions
relating to subdivision review as there is no state authority for protest of subdivision regulations.
As of the writing of this report, no written protest against the changes have been received.
APPENDIX A - PROJECT BACKGROUND
As described in the executive summary the Commission directed preparation of the text
amendments described in this report and attached as Ordinance No. 1999. Local business owners
have inquired as to the effect of the City’s exemption from the State of Montana’s restriction
regarding licensing of retail alcohol establishments within 600 feet of a school or church. The
State currently has over 30 different types of alcohol licenses. Sect. 16-3-306(4), MCA,
authorizes a local government to supplant the 600-foot rule. The City of Bozeman has done so
through adoption of 4.02.020.B, BMC but only for restaurant beer and wine license holders. The
City has not provided for an exemption from the State’s distance rule for any other license type.
City staff have studied the issue, inquired about the alcohol licensing process with the State of
Montana, and analyzed through Geographical Information System (GIS) the appropriate
locations for an additional exemption to be permitted with conditions. Section 1, Map Series,
includes illustrations showing the location of current alcohol license holders in the B-2M and B-
3 districts. Currently 13 restaurants with a beer and wine license qualify for the exemption.
Representatives from the State Department of Revenue, the agency assigned to regulate the sale
of alcohol, estimate that in the future there may be only a few additional alcohol licenses issued
per year for the Bozeman area.
18097, Staff Report for Alcohol Exemption Separation Standards Text Amendment Page 13 of 13
The Ordinance, as drafted, would amend the municipal code to allow holders of a State issued
Beer with Wine Amendment alcohol license to qualify for the Bozeman local 600-foot rule
exemption through the appropriate permitting process. In addition, businesses operating with this
alcohol license must meet and continue to meet the standards associated with a Restaurant Beer
& Wine license. These standards are detailed in Section 3 of Ordinance No. 1999 and include
hours of operation, food must be the primary revenue generator, gambling is prohibited, and
alcohol can only be sold to patrons who order food.
APPENDIX B - NOTICING AND PUBLIC COMMENT
This application is for an amendment to the municipal code. Therefore, the required notice is
publication in the newspaper per Table 38.40.030, BMC. The Zoning Commission and City
Commission published notice on March 4 and 18, 2018, exceeding the minimum standard, in the
Bozeman Daily Chronicle before the public hearings.
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF
Applicant: Bozeman City Commission, PO Box 1230, Bozeman MT 59771
Report By: Tom Rogers, Senior Planner
Chris Saunders, Community Development Manager
FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be changed by
this amendment. The City will incur periodic costs to administer the process.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715. The complete application includes
presentations, notes, comments, questionnaires used to create the draft code being reviewed.
Draft Ordinance 1999