HomeMy WebLinkAbout06-05-23 Amended CDB Agenda & Packet MaterialsA.Call to Order - 6:00 pm
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B.Disclosures
C.Changes to the Agenda
D.Public Service Announcements
E.Approval of Minutes
E.1 051523 Minutes (Sagstetter)
F.Public Comments
This is the time to comment on any matter falling within the scope of the Community
Development Board. There will also be time in conjunction with each agenda item for public
comment relating to that item but you may only speak once per topic.
Please note, the Community Development Board cannot take action on any item which does not
THE COMMUNITY DEVELOPMENT BOARD OF BOZEMAN, MONTANA
AMENDED CDB AGENDA
Monday, June 5, 2023
General information about the Community Development Board is available in our Laserfiche
repository.
If you are interested in commenting in writing on items on the agenda please send an email to
agenda@bozeman.net or by visiting the Public Comment Page prior to 12:00pm on the day of the
meeting.
Public comments will also be accepted in-person and through video conference during the appropriate
agenda items.
As always, the meeting will be streamed through the Commission's video page and available in the
City on cable channel 190.
For more information please contact Anna Bentley, abentley@bozeman.net
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appear on the agenda. All persons addressing the Community Development Board shall speak in a
civil and courteous manner and members of the audience shall be respectful of others. Please
state your name and place of residence in an audible tone of voice for the record and limit your
comments to three minutes.
General public comments to the Board can be found in their Laserfiche repository folder.
G.Action Items
G.1 Affirmative Obligations Text Amendment, Ordinance 2131, Application 23174 (Lyon)
G.2 Annexation Application 23016 requesting annexation of Two Parcels Approximately 1.06
Acres and Adjacent Right of Way for Willow Way and Amendment to the City Zoning Map
for the Establishment of a Zoning Designation of R-4 (Residential High Density District).
Subject site is located on the north side of Kagy Boulevard and the west side of Willow Way
(northwest corner of Kagy Boulevard and Willow Way), Application 23016.(Cramblet)
G.3 The Jarrett Zone Map Amendment Requesting Amendment of the City Zoning Map to
Change the Zoning on Two Parcels Totaling 39.9 Acres from R-1 (Residential Low Density
District) to R-2 (Residential Moderate Density District) and on One 8.4 acre Parcel from R-1
(Residential Low Density District) to PLI (Public Lands and Institutions District). The Project
Site Consists of Three Parcels that are Located on the Northwest Corner and a Portion of the
Southwest and Southeast Corner of W. Graf Street and S. 11th Avenue, Application
23047.(Cramblet)
H.FYI/Discussions
H.1 Upcoming Items for the June 26, 2023 Community Development Board Meeting (Bentley)
H.2 Overview of 2023 Montana Legislative Session and Impacts on On-Going City of Bozeman
Code Update Work(Bentley)
I.Adjournment
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
Citizen Advisory Board meetings are open to all members of the public. If you have a disability and
require assistance, please contact our ADA coordinator, Mike Gray at 406-582-3232 (TDD 406-582-
2301).
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Memorandum
REPORT TO:Community Development Board
FROM:Sam Sagstetter - Community Development Technician II
Lacie Kloosterhof - Community Development Office Manager
Anna Bentley - Community Development Director
SUBJECT:051523 Minutes
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Minutes
RECOMMENDATION:Approve
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:None.
UNRESOLVED ISSUES:None.
ALTERNATIVES:Approve with corrections.
FISCAL EFFECTS:None.
Attachments:
051523 CDB Minutes.pdf
Report compiled on: June 1, 2023
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Bozeman Community Development Meeting Minutes, May 15, 2023
Page 1 of 4
THE COMMUNITY DEVELOPMENT BOARD MEETING OF BOZEMAN, MONTANA
MINUTES
May 15, 2023
General information about the Community Development Board is available in our Laserfiche repository.
Present: Allison Bryan, Brady Ernst, Nicole Olmstead, Henry Happel, Padden Guy Murphy, Chris
Egnatz, Jason Delmue, Ben Lloyd
Absent: None
Excused: Jennifer Madgic
A) 00:02:02 Call to Order - 6:00 pm
B) 00:02:35 Disclosures
C) 00:02:46 Changes to the Agenda
D) 00:02:53 Approval of Minutes
D.1 050123 Minutes
050123 CDB Minutes.pdf
00:03:03 Motion to approve D) Approval of Minutes
Nicole Olmstead: Motion
Padden Guy Murphy: 2nd
00:03:22 Vote on the Motion to approve D) Approval of Minutes The Motion carried 7 - 0.
Approve:
Allison Bryan
Nicole Olmstead
Henry Happel
Padden Guy Murphy
Chris Egnatz
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Bozeman Community Development Meeting Minutes, May 15, 2023
Page 2 of 4
Jason Delmue
Ben Lloyd
Disapprove:
None
E) 00:03:51 Consent Items
E.1 00:04:10 Design Recommendation for Barnard Headquarters Site Plan on Royal
Wolf Way and Prince Lane, Application 23015
23015 Barnard HQ Community Development Board Staff Report.pdf
00:08:11 Motion to approve Recommend approval for the Barnard Headquarters Site Plan, Application
23015, to the Community Development Director as presented, and provide design recommendations
and board member discussion.
Nicole Olmstead: Motion
Chris Egnatz: 2nd
00:08:40 Vote on the Motion to approve Recommend approval for the Barnard Headquarters Site Plan,
Application 23015, to the Community Development Director as presented, and provide design
recommendations and board member discussion. The Motion carried 7 - 1.
Approve:
Allison Bryan
Brady Ernst
Nicole Olmstead
Henry Happel
Padden Guy Murphy
Chris Egnatz
Jason Delmue
Disapprove:
Ben Lloyd
E.2 00:09:17 Design Recommendation for North 3rd Apartments Affordable Housing
Project on North 3rd Street, Application 22375.
22375 N 3rd Apts Community Development Board.pdf
00:09:49 Hannah Rocks provides public comment.
00:12:40 Louise Bretney provides public comment.
00:15:53 Laura Rose provides public comment.
00:21:30 Item is moved into action items.
00:21:55 Lynn Hyde presents to the board.
00:32:16 Planner Lynn Hyde answers questions from the board.
00:54:11 Applicant Melanie Davies presents to the board.
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Bozeman Community Development Meeting Minutes, May 15, 2023
Page 3 of 4
01:01:53 The applicant team answers questions from the board.
01:32:12 Motion to approve Recommend approval for the North 3rd Apartments Site Plan, Application
22375, to the Community Development Director as presented, and provide design recommendations
and board member discussion.
Allison Bryan: Motion
Jason Delmue: 2nd
01:53:40 Vote on the Motion to approve Recommend approval for the North 3rd Apartments Site Plan,
Application 22375, to the Community Development Director as presented, and provide design
recommendations and board member discussion. The Motion carried 7 - 1.
Approve:
Brady Ernst
Nicole Olmstead
Henry Happel
Padden Guy Murphy
Chris Egnatz
Jason Delmue
Ben Lloyd
Disapprove:
Allison Bryan
G) 01:55:12 FYI/Discussions
G.1 01:55:21 Review of Bozeman Community Plan 2020, Chapter 5, Criteria for
Zoning Amendments
Bozeman_Community_Plan_2020_Chpt_5.pdf
01:55:21 Community Development Manager Chris Saunders presents to the board,
discussion of role of growth policy and state zoning criteria when considering
amendment applications, growth policy interpretation of growth policy criteria,
how board presents findings alternate to staff findings with appropriate
connection to criteria, need to focus on the application presented for
amendment.
G.2 02:53:09 Overview of 2023 Montana Legislative Session and Impacts on On-Going
City of Bozeman Code Update Work
2023 Legislative Summary.pdf
2023 Legislative Statistics.pdf
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Bozeman Community Development Meeting Minutes, May 15, 2023
Page 4 of 4
MT - How Bill Becomes Law.pdf
02:53:12 Details of Senate Bill 382 (pending) are discussed among other topics including a
Growth Policy interpretation bill, possible procedural changes via SB 382,
possible subdivision review process changes via SB 382, Montana Association of
Planners summary of legislative session and SB 382, county zoning bill,
combining review boards in certain counties, pending bill for changing
covenants, among other independent legislation proposals.
G.3 03:13:16 Upcoming Items for the June 5, 2023 Community Development Board
Meeting
H) 03:16:44 Adjournment
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
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Memorandum
REPORT TO:Community Development Board
FROM:Nakeisha Lyon, Associate Planner
Brian Krueger, Development Review Manager
Erin George, Deputy Director of Community Development
Anna Bentley, Director of Community Development
SUBJECT:Affirmative Obligations Text Amendment, Ordinance 2131, Application
23174
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Having reviewed and considered the staff report, draft ordinance, public
comment, and all information presented, I hereby adopt the findings
presented in the staff report for application 23174 and move to recommend
approval of Ordinance 2131.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The City regulates short term rentals (STRs) within our community through
Section 38.360.260 of the Bozeman Municipal Code. These standards set
forth where STRs are allowed to locate based on type, require STR hosts to
register their rental with the city prior to operation, and to submit annual
renewals. Such registration includes submittal of information, payment of a
registration fee, and completion of a safety inspection prior to city approval.
Since the adoption of these provisions, the prevalence of STRs has increased,
and monitoring of online listings has revealed a significant number of
unregistered STRs. The city has undertaken enforcement efforts to bring
more STRs into compliance, but these efforts are time-consuming and costly
for city staff.
On August 9, 2022, the City Commission directed staff to update STR
regulations in two phases. The first phase includes drafting an Ordinance
regulating short term rental hosting platforms as one measure to increase
compliance with existing regulations and to require regular reporting to
obtain more information about STRs in Bozeman. The second phase will
include analysis of the STR types and where they are allowed.
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As drafted, Ordinance 2131 (Attachment 1) implements the first phase –
regulating hosting platforms and other measures to increase compliance
with existing regulations. It revises the STR regulations within Sec.
38.360.260 to include obligations for hosting platforms such as hosting
permit requirements for booking transactions, quarterly reporting
requirements, and violation and enforcement provisions regarding the
removal of listings from hosting platforms without a hosting permit. The
proposed revisions also include administrative changes to improve
compliance and support enforcement, such as changing the term
“registration” to “permit”, allowing the City to issue administrative
subpoenas to obtain information, requiring hosts to disclose where they
have listed the STR, requiring regular safety inspections of STRs every three
years, and imposing specific civil penalties for a violation.
For more details, please see the attached staff report.
UNRESOLVED ISSUES:None.
ALTERNATIVES:1. Recommend ordinance not be approved based on findings of non-
compliance with the applicable criteria contained within the staff
report;
2. Recommend amendments prior to adoption; or
3. Open and continue the public hearing on the application, with specific
direction to staff to supply additional information or to address
specific items.
FISCAL EFFECTS:None at this time related to this Amendment.
Attachments:
23174 CDB Staff Report - STR Affirmative Obligations
Ordinance - Final.pdf
Attachment 1 - Draft Ordinance 2131.pdf
Attachment 2 - STR Affirmative Obligations Memo
01.03.2023.pdf
Attachment 3 - STR Focus Group Summary 02.07.2023.pdf
Report compiled on: May 30, 2023
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Page 1 of 14
23174 Staff Report for the Affirmative Obligations Text Amendment,
Ordinance 2131
Public Hearings:
Community Development – June 5, 2023
City Commission – June 27, 2023
Project Description: Amend Bozeman Municipal Code (BMC) Section 38.360.260. Short
term rentals to include regulation of hosting platforms that facilitate booking
transactions of short term rentals and revise administrative provisions.
Project Location: Revisions to the text are applicable City-wide in all zoning districts
where short term rentals are currently allowed per Division 38.310 – Permitted Uses.
Recommendation: Meets applicable criteria for approval.
Community Development Board Motion: Having reviewed and considered the staff
report, draft ordinance, public comment, and all information presented, I hereby
adopt the findings presented in the staff report for application 23174 and move to
recommend approval of Ordinance 2131.
City Commission Recommended Motion: Having reviewed and considered the staff
report, draft ordinance, public comment, recommendation from the Community
Development Board, and all information presented, I hereby adopt the findings
presented in the staff report for application 23174, and move to provisionally adopt
Ordinance 2131.
Report: May 31, 2023
Staff Contact: Nakeisha Lyon, Associate Planner
Agenda Item Type: Action – Legislative
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23174, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 2 of 14
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Project Summary ................................................................................................................. 2
Unresolved Issues ............................................................................................................... 3
Public Comment.................................................................................................................. 3
Alternatives ......................................................................................................................... 4
SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 4
SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS ....................... 4
Section 76-2-304, MCA Zoning Regulations Criteria (A-K) ............................................. 5
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 11
APPENDIX A - DETAILED BACKGROUND AND PROJECT DESCRIPTION .............. 11
APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 13
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 14
FISCAL EFFECTS ................................................................................................................. 14
ATTACHMENTS ................................................................................................................... 14
EXECUTIVE SUMMARY
This report is based on the proposed ordinance text and public comment received to date.
Project Summary
Starting in July 2016, The Bozeman City Commission began considering issues related to
short term rentals (STRs) within our community. This ultimately led to the adoption of
Ordinance 1974, the current standards for STRs denoted in Section 38.360.260 of the BMC.
These standards set forth where STRs are allowed to locate based on type, and require STR
hosts to register their rental with the City of Bozeman (City) prior to operation, and to submit
annual renewals. Such registration includes submittal of information, payment of a
registration fee, and completion of a safety inspection prior to city approval. Since the
adoption of these provisions, the prevalence of STRs has increased, and monitoring of online
listings has revealed a significant number of unregistered STRs. The City has undertaken
enforcement efforts to bring more STRs into compliance; these efforts are time-consuming
and costly for city staff.
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23174, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 3 of 14
Since 2020, the City Commission has received several public comments regarding STRs
from residents, primarily expressing concerns related to long-term rental availability in
Bozeman. Comments received from hosts and property management companies largely
focused on a desire for better enforcement of non-compliant STRs, while calling attention to
the role of STR income in hosts’ ability to meet their mortgage responsibilities and financial
security.
In an effort to balance these factors among other housing concerns, the City Commission
approved the Bozeman Community Housing Action Plan in November 2019, with
amendments in January 2020. This Action Plan recommends on-going evaluation of
regulatory policies related to STRs. Based on these recommendations, the Bozeman City
Commission held a work session in August 2022 to discuss short term rentals.
Within this work session, the City Commission directed staff to update STR regulations in
two phases. The first phase included drafting an Ordinance regulating short term rental
hosting platforms as one measure to increase compliance with existing regulations and to
require regular reporting to obtain more information about STRs in Bozeman. The second
phase will include analysis of the STR types and where they are allowed.
As drafted, Ordinance 2131 (Attachment 1) implements the first phase – regulating hosting
platforms and other measures to increase compliance with existing regulations. It revises the
STR regulations within Sec. 38.360.260 to include obligations for hosting platforms such as
hosting permit requirements for booking transactions, quarterly reporting requirements, and
violation and enforcement provisions regarding the removal of listings from hosting
platforms without a hosting permit. The proposed revisions also include administrative
changes to improve compliance and support enforcement, such as changing the term
“registration” to “permit”, allowing the City to issue administrative subpoenas to obtain
information, requiring hosts to disclose where they have listed the STR, requiring regular
safety inspections of STRs every three years, and imposing specific civil penalties for a
violation.
Unresolved Issues
None.
Public Comment
Written public comment will be archived and available through the project folder in the
City’s Laserfiche archive. Comments provided orally at public meetings will be available
through the recordings of those public meetings. Links to recordings will be added to this
report as the review of the project moves forward. No comments specific to this amendment
have been received to date.
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Alternatives
1. Recommend ordinance not be approved based on findings of non-compliance with the
applicable criteria contained within the staff report;
2. Recommend amendments prior to adoption; or
3. Open and continue the public hearing on the application, with specific direction to staff to
supply additional information or to address specific items.
SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a text amendment, the Staff finds the amendments
meet the minimum criteria for approval as proposed.
The Community Development Board in their capacity as the Zoning Commission will hold a
public hearing on these amendments on June 5, 2023, at 6 pm.
The City Commission will hold a public hearing on the text amendment on June 27, 2023 at 6:00
p.m. and decide whether the amendments should occur or not.
SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS
In considering applications for amendment approval under this title, the advisory boards and City
Commission must consider the following criteria (A-D) and guidelines (E-K). As an amendment
is a legislative action, the Commission has broad latitude to determine a policy direction.
A zone text amendment must be in accordance with the growth policy (criteria A) and be
designed to secure safety from fire and other dangers (criteria B), promote public health, public
safety, and general welfare (criteria C), and facilitate the provision of transportation, water,
sewerage, schools, parks and other public requirements (criteria D). Therefore, to approve a
zone text amendment the Commission must find Criteria A-D are met.
In addition, the Commission must also evaluate guidelines E-K as factors for consideration, and
may find the zone text amendment to be positive, neutral, or negative with regards to these
considerations. To approve the zone text amendment, the Commission must find the positive
outcomes of the amendment outweigh negative outcomes for guidelines E-K.
In determining whether these criteria and guidelines are met, Staff considers the entire body of
plans and regulations for land use and development. Standards which prevent or mitigate
negative impacts are incorporated throughout the entire municipal code but are principally in
Chapter 38, Unified Development Code.
The existing municipal code provisions regulating STRs were, at the time of adoption, found to
satisfy all of the required criteria. As such, the focus of this report is only on the amendments
proposed. Where a finding of neutral is presented, it represents that the criteria or guideline has
been considered and the change does not materially advance or detract from compliance.
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Therefore, a finding of neutral is not necessarily an indication of a deficiency in the proposed
amendments or the existing standards.
Section 76-2-304, MCA Zoning Regulations Criteria (A-K)
Zoning regulations must be:
A. Be in accordance with a growth policy.
Yes, criterion is met. The proposed amendments are in conformance with the growth policy.
As the growth policy provides a high level vision of how a community hopes to develop over
time, it does not dictate uses or specific standards to the level of detail contained in this
ordinance. However, it does identify issues and priorities for consideration with specific
goals and objectives that are desired outcomes.
The Bozeman Community Plan 2020 (BCP2020), adopted in November 2020, establishes the
City’s policies for growth and regulation of land uses and development. It continues concepts
and community priorities that were established in several prior growth policies. Prior growth
policies encouraged creation of development standards that supported predictable review
processes and addressed areas of community concerns.
The BCP2020 includes the following relevant goals and objectives:
R-1.1 Be reflective: use past experience to inform future decisions.
R-1.7 Be flexible: willingness and ability to adopt alternative strategies in response to
changing circumstances.
R-2.5 Technical Soundness: Identify solutions that reflect best practices that have been
tested and proven to work in similar local or regional contexts.
DCD-4.1 Implement a regulatory environment that supports the Community Plan goals:
Ensure that the Planning Department is supported with the resources required to
effectively implement this plan, to dedicate staff to long range and regional planning
efforts, and to process development applications expeditiously
With the increased prevalence of STRs within our community, the amount of unregistered
STRs has become a time-consuming and costly challenge for city staff to monitor and
address. In accordance with goal R-1.1, the City continues to be reflective in its discussions
regarding the existing regulation of STRs in order to inform policy decisions that are
appropriate in addressing code compliance issues. Based on the discussion between staff and
City Commission during the Short Term Rental Work Session, platform compliance is one
unique policy option to help improve and increase compliance with existing regulations by
placing more of a burden for compliance on the booking platforms.
The proposed amendments to Sec. 38.360.260 establish platform liability which gives the
City the right to enforce and enact rules and ordinances that penalize hosting platforms that
do not comply with these regulations. The specific obligations on hosting platforms include
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that each STR listing must include the City’s STR permit number prior to the occurrence of a
booking transaction, and hosting platforms are responsible for removing unregistered STR
listings from their software or portals to prevent the booking of unregistered STRs. These
proposed amendments strengthen enforcement mechanisms within the City’s STR program
to ensure platforms, hosts, and operators are in compliance with local regulations.
The proposed amendments demonstrate a willingness to adopt alternative strategies in
response to changing circumstances as it relates to STRs within our community per goal R-
1.7. With the rise in utilization of online booking agencies that facilitate STR transactions
such as AirBnB, HomeAway, and VRBO, municipalities across the nation have successfully
implemented affirmative obligation ordinances similar to Ordinance 2131 in order to verify
that homes offered as STRs are lawfully registered in accordance with applicable regulations.
The ability to identify a solution that aligns with national best practices and has worked in
jurisdictions with similar local and/or regional contexts per goal R-2.5 is also demonstrated
by the proposed amendments. Staff has reviewed the STR programs, ordinances, and hosting
obligation regulations of over a dozen municipalities as denoted within Attachment 2 in
order to draft Ordinance 2131 which incorporates best practices for hosting obligation
regulations that serve to improve compliance and the ability to enforce regulations on
platforms, owners, and operators within our community.
By meeting the three abovementioned goals, the City also is able to further goal DCD-4.1
which strives to implement regulatory environment that supports the Community Plan goals
by ensuring the Planning Department is supported with the resources required to effectively
implement this plan, to dedicate staff to long range and regional planning efforts, and to
process development applications expeditiously. The inclusion of obligations for hosting
platforms provides the necessary mechanisms needed for compliance by the Code
Enforcement Division under Community Development by allowing for a more proactive
administrative enforcement tool rather than only to assess violators after the fact. The ability
for violations to be placed on both hosts and hosting platforms alike promotes increased
awareness of local regulations and strengthens chances of compliance. These proposed
provisions also encourage hosting platforms to work closely with the City in order to ensure
listed STRs are in compliance and provides accurate STR reporting for comparison and
analysis against the City’s current monitoring and tracking software.
The proposed amendments furthers all four of the abovementioned goals by including
specific hosting permit and administrative changes to the existing regulations to provide a
more effective overall STR program. These proposed amendments improve the safety
inspection requirements associated with the STR hosting permit application process to create
a self-certification process for annual renewals, and a required three year fire inspection after
the initial application for active STRs. The incorporation of language regarding affordable
housing incentives and affordability covenants has also been included to ensure that
dwellings built under these affordability provisions may not be used as a STR. Additionally,
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language to more effectively administered the program, remove redundancies, and clarify
provisions regarding renewal of a STR hosting permit, termination of the use of a STR and
procedures for lapsed STR hosting permits have been included.
Finally, the level of detail associated with the text amendment is beyond the specificity found
and intended in the Community Plan.
No element of the proposed ordinance affects the future land use map as the process
amendments do not change land use designations or zoning district boundaries. Therefore, no
analysis of correspondence to the future land use map is provided.
B. Secure safety from fire and other dangers.
Yes, criterion is met. Initial inspections by the City’s Fire department help ensure that
locations are safe to be used as a short term rental. As denoted in Sec. 38.360.230.H.3, a fire
inspection is required prior to the issuance of a hosting permit. Subsequent inspections will
occur every three years by the City’s Fire department with a self-certification of compliance
required during the years in which an inspection is not required as part of the annual renewal
of a STR hosting permit. If a permit lapses for any period of time, a new fire inspection is
required upon reapplication for a STR hosting permit. Additionally, upon evidence of non-
compliance, the City’s Fire Marshal may require a fire inspection as deemed necessary. For
example, STRs which lack adequate egress from sleeping areas, fire suppression or access, or
compliance with other adopted safety standards will not be approved.
All applicable development standards and building code standards for fire resistance, exiting,
and other protections remain in place and are applicable to receive a short tern rental permit.
Building and fire standards and codes are designed to mitigate impacts, provide a safe
environment, and protect from various dangers. Please see response to Criterion C also.
C. Promote public health, public safety, and general welfare.
Yes, criterion is met. The existing standards addressing this criterion remain in place such as
floodplain protections, provision of water and sewer services, and similar. Standards remain
for setbacks, light and air, emergency services, and other issues to protect public health and
physical safety. In addition to the fire inspection required prior to STR hosting permit
approval and issuance, the Health Department’s implementation of state law requires a public
accommodation license for all STRs. A public accommodation license requires an inspection
from a local sanitarian which addresses health and safety standards applicable to this use per
Montana Code Annotated § 50-51-301. Any structure which does not pass these inspections
will not be allowed a STR permit. The City continues to coordinate its review process for
STRs with the Health Department to ensure that all required inspections have been passed
prior to approval of use of an STR.
Sec. 38.360.230.K.1 includes additional suspension, revocation, and administrative and civil
remedies regarding the operation of a short term rental that may fail to comply with the
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Bozeman Municipal Code; create a public nuisance or breach of peace, cause danger to
public health, safety, welfare, or morals; cancellation of any associated licenses or
registrations; and securing a STR permit by fraud or misrepresentation. Civil penalties
denoted in Sec. 38.360.230.K.3 may be applicable to any violation not to exceed $500.00 per
day per violation which is applicable to an owner of any STR and a hosting platform.
Additional standards within the BMC remain unchanged by this ordinance; including a
previously adopted noise ordinance to ensure adequate public safety and a healthy
environment. Applicable noise standards are in Chapter 16, article 6, as applicable. See also
responses to Criteria B and D.
D. Facilitate the adequate provision of transportation, water, sewerage, schools, parks
and other public requirements.
Yes, criterion is met. Standards for the provision of municipal transportation, water,
sewerage, schools, parks, and other public requirements are not being altered with this
ordinance. STRs are the use of an existing dwelling within a residential or non-residential
zoning district. All dwellings must demonstrate adequacy of services at the time of site-
specific development review. The use of a residence as a STR does not materially change the
essential use of the property, demand for services, or the physical characteristics of the
residential use as it applies to this criterion. Therefore, any proposed STR has previously
demonstrated compliance with public requirements. Additionally, billing for sewer or water
consumption will follow standard practice and offset public expenses.
The city shall also consider:
E. Reasonable provision of adequate light and air.
Yes, criterion is met. No changes within these amendments impact basic standards for
setbacks, maximum building height, dedication of parks, on-site open spaces, or similar
standards The City’s development standards and building code ensure adequate provisions of
light and air through window and air circulation/venting provisions, as well as building
setbacks. The maximum occupancy standards for each STR type remain within Sec.
38.360.260.I. 3 & 4 in order to limit excessive occupancy within a residence. Considering the
code as a whole, the standards listed in this criterion are not being changed with these
amendments. These amendments serve to support and reinforce the existing standards
applicable to this criterion, therefore the standard continues to be met.
F. The effect on motorized and non-motorized transportation systems.
Yes, criterion is met. No changes within these amendments impact basic standards for
parking, sidewalks, dedication of right of way, provision of and construction of streets, or
similar standards. Transportation impacts and parking compliance are addressed at the time
of site-specific development review through an associated planning application and/or
building permitting process. During the application process for a STR hosting permit, the
number of provided off-street parking spaces available for guests’ use must be demonstrated.
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Considering the code as a whole, the standards listed in this criterion are not being changed
with these amendments. These amendments serve to support and reinforce the existing
standards applicable to this criterion, therefore the standard continues to be met.
G. Promotion of compatible urban growth.
Yes, criterion is met. An STR is a use of a previously approved dwelling. Any zoning district
that allows homes has been reviewed and found to be consistent with this criterion. These
amendments do not change any development standard which would relate to urban growth
within the City nor impede on the expansion of the City through urban development
practices. Existing standards have been adopted by the City to identify and avoid or mitigate
demonstrable negative impacts of urban growth within the applicable subdivision review
processes, site plan applications, and/or building permitting processes. Therefore,
considering the code as a whole, the standards listed in this criterion are not being changed
with these amendments and therefore the standard continues to be met.
H. Character of the district.
Yes, criterion is met. All zoning districts provide for a variety of principal and conditional
uses which vary by intensity and likely size dependent upon the intention of the district. No
single use defines the entirety of any zoning district. Residences, in some form, are a
principal use within all residential zoning districts. Within commercial, mixed use, and
industrial zoning districts, residential uses may be a principal, special or accessory use. Short
term rentals (STRs) are a form of a residential use and were previously determined to be
consistent with the overall character of each district at the time the adoption of Ordinance
1974. As the proposed “affirmative obligations” ordinance does not change where STRs are
allowed, this criterion remains met.
Structures that contain a STR must abide by the same physical standards for setbacks,
building heights, lot coverage and others which apply in each zoning district. The inclusion
of hosting platform obligations within Sec. 38.360.260.J adds reporting requirements for
hosting platforms to provide STR information to the city and obligates hosting platforms to
remove listings in violation per Sec. 38.360.260.J in addition to other enforcement provisions
within Sec. 38.360.260.K previously mentioned within criterion C. These reporting and
enforcement measures will enable better compliance with city requirements and will serve to
support the maintenance of the character of each zoning district. The combination of uses and
other characteristics remain intact and were previously found to be consistent with this
criterion. These amendments serve to support and reinforce the existing standards applicable
to this criterion, therefore the standard continues to be met.
I. Peculiar suitability for particular uses.
Yes, criterion is met. Any zoning district that allows homes and STR has been reviewed and
found to be consistent with the criterion. The proposed amendments do not change any
zoning districts, boundaries, or uses within the land development regulations. STRs are the
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use of an existing dwelling within a residential or non-residential zoning district which have
previously been found to be appropriate based on their location and conformance with
existing standards. The authorized use tables which denote the types of STRs allowed within
the City are not changing with this ordinance, and have been previously reviewed for
consistency with the intent and purpose of individual districts and found to be appropriate.
These proposed amendments revise the text only and not the zoning map. Placing affirmative
obligations on STR hosting platforms will support compliance with all laws and should result
in removal of listings of STRs that are not in compliance with laws. These measures will help
the City better be able to monitor the compliance of active STRs and ensure the regulatory
requirements are being met which were relied upon in finding zoning consistent with this
criterion. Therefore, considering the code as a whole, the standards listed in this criterion are
not being changed with these amendments and therefore the standard continues to be met.
J. Conserving the value of buildings.
Yes, criterion is met. The proposed amendments do not change any districts or uses which
would cause buildings to become non-conforming to the district in which they are located. The
hosting platform obligations for STRs do not alter the standards for building location, size, or
other physical development standards. The existing standards for STRs offset or prevent the
physical effects of their use. Adequate services such as parking and utilities must be provided
prior to approval of a hosting permit. Considering the code as a whole, the standards listed in
this criterion are not being changed with these amendments. These amendments serve to
support and reinforce the existing standards applicable to this criterion, therefore the standard
continues to be met.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Yes, criterion is met. The proposed amendments do not alter the allowed uses in zoning
districts nor growth policy designations adopted in the Community Plan 2020. The zoning
map and future land use map of the growth policy identify areas where specific uses, such as
varying forms of residences, are generally appropriate. The use of a dwelling as a STR has
been previously found to be an appropriate use and has similar impacts to other uses allowed
in the zoning districts as denoted in Criterion H. The types of STRs allowed remain
unchanged with this ordinance.
As both the zoning map and future land use map do not authorize construction of residences,
the existing site specific development processes serve to evaluate the appropriateness of a use
of land in this regard and ensure the use conforms to the necessary development standards.
These standards will continue to be required, therefore, if a dwelling has not already been
approved and deemed appropriate for an area, a STR will not be allowed under this
ordinance. The proposed amendments do change the review process for a STR and includes
additional obligations for hosting platforms which provide specific violation processes to
help ensure that this criterion is met.
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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.
The City will accept written protests from property owners against the proposal
described in this report until the close of the public hearing before the City
Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s)
of real property within the area affected by the proposal or by owner(s) of real property that
lie within 150 feet of an area affected by the proposal. The protest must be in writing and
must be signed by all owners of the real property. In addition, a sufficient protest must: (i)
contain a description of the action protested sufficient to identify the action against which the
protest is lodged; and (ii) contain a statement of the protestor's qualifications (including
listing all owners of the property and the physical address), to protest the action against
which the protest is lodged, including ownership of property affected by the action. Signers
are encouraged to print their names after their signatures. A person may in writing withdraw
a previously filed protest at any time prior to final action by the City Commission. Protests
must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230,
Bozeman, MT 59771-1230.
As of the writing of this report, no written protest against the changes have been received.
APPENDIX A - DETAILED BACKGROUND AND PROJECT
DESCRIPTION
The City Commission spent considerable time on the regulation of STRs in 2016 and 2017
culminating in the adoption of Ordinance 1974 (creating the current standards for STRs
found in the Bozeman Municipal Code in Sec. 38.360.260). The City Commission received a
memo from the Economic Development Department prior to the Short Term Rental Work
Session on August 9, 2022 which has a detailed background of the history of the
Commission’s discussion and direction on STRs, the regulatory structure of the City’s
existing STR policies, and any previous public outreach and research conducted. This work
session was held with the Commission to discuss short term rentals and their influence on the
local housing market and affordability.
During this discussion, staff presented several policy options for consideration by the City
Commission. This included policies regarding enhancing STR compliance, analyzing the cost
of services for administration of the STR program, further researching potential impacts on
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limiting STRs by zoning districts or types, and other regulatory methods. The City
Commission supported improving compliance of STRs with existing regulations by placing
more of the burden for compliance on the STR hosting platforms. Placing affirmative
obligations on STR hosting platforms, like Airbnb and VRBO, require compliance with all
laws, remove listings of STRs that are not in compliance with laws, include the City permit
number and the permit for all STR listings, and provide a quarterly report to the City about
STRs listed on their platforms within City limits. These measures will help the City better be
able to monitor the compliance of active STRs and ensure the regulatory requirements are
being met.
Based on this discussion, the City Commission directed staff to draft an Ordinance regulating
short term rental online booking platforms as one measure to increase compliance with
existing regulations. Since this direction was given, Staff has conducted additional research
in evaluating how imposing affirmative obligations on hosting platforms has been
implemented and functions in other communities, other hosting platform responsibilities, and
recommendations for the City Commission to consider which is detailed in Attachment 2.
This memorandum provides four key recommendations that the City should pursue which
have been incorporated into Ordinance 2131.
In addition to the City Commission’s direction to draft this Ordinance, staff was also directed
to engage with STR owners about potential interest to convert STRs into long term rentals
(LTRs) in order to gather feedback on motivations, incentives, and barriers to converting
STRs to LTRs. This focus group was held on January 18, 2023 between city staff from
Communications, Legal, Planning Division, and Community Housing Program and 13 STR
owners. Further details on these discussions are provided in Attachment 3. One of the main
concerns denoted within these discussions focused on the lack of enforcement and
compliance with existing STR regulations.
With these priorities and discussions in consideration, Ordinance 2131 revises the STR
regulations within Sec. 38.360.260 to include obligations for hosting platforms and
administrative changes to improve compliance and enforcement as discussed below:
Enforcement
• Inclusion of Sec. 38.360.030.J. Hosting Platform Obligations
o Quarterly reporting requirements of hosting platforms to the City of Bozeman
Reports to include; addresses of STRs that have conducted a booking
transaction, the name of the owner or responsible person associated
with said booking transaction, length of stay for said booking
transaction, and price paid for said booking transaction
o Requirement of the city STR permit number prior to booking transaction.
o Duty to remove STR listings which are in violation of these provisions and
others within the Bozeman Municipal Code
• Inclusion of Additional Violation Opportunities
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o Addition of City’s ability to impose administrative remedies and civil action
proceedings
o Addition of civil penalties to be recovered on a violation by an owner or
hosting platforms
Hosting Permit
• Language change from STR Registration to STR Hosting Permit
• Changes to Safety Inspections
o Inclusion of fire inspections every three years after initial for an active STR
o Self-certification on an annual basis
• Removal of noticing requirements for Type 2 STRs
• Removal of City requirement to maintain an online listing of all STR Hosting Permits
• Clarification on renewal process, termination of use, and requirement for new hosting
permit if lapsed
Administrative Changes
• Residences receiving affordable housing incentives and under affordability covenants
may not be used as a STR
• Inclusion of application to include all hosting platforms in which the STR will be
listed
• Addition of ability of the City to issue administrative subpoenas if necessary to obtain
information regarding a STR or booking transaction
Definitions
• Inclusion of booking transaction definition
• Expansion on hosting platform definition
• Inclusion of evidence to be provided for owner occupancy
• Removal of furnishing characteristic related to transient occupancy
APPENDIX B - NOTICING AND PUBLIC COMMENT
Notice for text amendments must meet the standards of 38.220.410 & 420. Notice was
published in the Bozeman Daily Chronicle on 5/20/2023 and 6/03/2023. The final notice will
be published in the Bozeman Daily Chronicle on 6/17/2023. These notices contain all
required elements. Notice was provided at least 15 days before the public hearing conducted
by the Community Development Board in their capacity as the Zoning Commission, and not
more than 45 days prior to the City Commission public hearing. Hearing dates are on the first
page of this report.
No written public comment has been received so far on this Ordinance. Comments are
available through the Laserfiche archive. If comments are received they will be placed in the
project folder in Laserfiche.
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APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF
Applicant: City o f Bozeman, PO Box 1230, Bozeman, MT 59771
Representative: Department of Community Development, City of Bozeman, PO Box 1230,
Bozeman, MT 59771
Report By: Nakeisha Lyon, Associate Planner
FISCAL EFFECTS
None at this time related to this Amendment.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715.
Attachment 1: Draft Ordinance 2131
Attachment 2: STR Affirmative Obligations Memo - January 3, 2023
Attachment 3: Short Term Rental Focus Group Summary - February 7, 2023
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Ord 2131
Page 1 of 13
ORDINANCE 2131
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA TO GENERALLY REVISE BOZEMAN MUNICIPAL CODE SECTION
38.360.260 – SHORT TERM RENTALS TO INCLUDE REGULATION OF HOSTING
PLATFORMS THAT FACILITATE BOOKING TRANSACTIONS OF SHORT TERM
RENTALS AND REVISE ADMINISTRATIVE PROVISIONS
WHEREAS, the City of Bozeman (the “City”) has adopted land development and use
standards to protect public health, safety and welfare and otherwise execute the purposes of
Montana Code Annotated §§ 76-1-102, 76-2-304, 76-3-102, and 76-3-501; and
WHEREAS, pursuant to the Bozeman City Charter, the City of Bozeman has adopted
and is hereby relying upon its self-government powers recognizing pursuant to Montana law
such self-government powers must be liberally construed in favor of such power; and
WHEREAS, after proper notice, the Community Development Board in their capacity as
Bozeman Zoning Commission held a public hearing on June 5, 2023 to receive and review all
written and oral testimony on the proposed amendments; and
WHEREAS, the Community Development Board acting in their capacity as the Bozeman
Zoning Commission recommended to the Bozeman City Commission that Ordinance 2131, be
approved as proposed; and
WHEREAS, after proper notice, the City Commission held its public hearing on June 27,
2023 to receive and review all written and oral testimony on the proposed amendment to the
subdivision regulations; and
WHEREAS, the City Commission has reviewed and considered the applicable
amendment criteria established in Montana Code Annotated § 76-2-304, and found that the
proposed amendments are in compliance with the criteria.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
Page 2 of 13
Section 1
Legislative Findings
The City Commission hereby makes the following findings in support of adoption of this
Ordinance:
1. The Montana Constitution, in Article XI, § 4 mandates to liberally construe the powers of
incorporated cities, and Article XI, § 6 of the Montana Constitution expressly authorizes a local
government with self-government powers to exercise any power not prohibited by the constitution,
law, or charter.
2. The City has adopted land development and use standards to protect public health, safety and
welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102, 76-2-304,
76-3-102, and 76-3-501.
3. The City adopted Ordinance 1974 in November 2017 placing restrictions on short-term rentals.
The City is aware that a significant portion of short-term rentals within the City are not currently
in compliance with adopted regulations. Requiring information from hosting platforms is
demonstrated by other communities to enhance compliance and the City Commission finds doing
so is reasonably related to assuring compliance with the City of Bozeman’s short term rental
regulations.
4. The City Commission approved The Bozeman Community Housing Action Plan on November
18, 2019, which was amended on January 13, 2020. The Action Plan recommends on-going
evaluation of regulatory policies including: prohibiting or limiting the use of homes for short-term
rentals in specified neighborhoods or zones; placing resident-occupancy requirements on units that
are rented short-term (e.g. rent bedroom only, ADU and primary home cannot both be an STR,
etc); requiring an owner to register the short-term rental and authorizing the city to charge fees; or
other options.
5. On August 9, 2022, the Bozeman City Commission held a work session to discuss short term
rentals and their influence on the local housing market and affordability. The City Commission
directed staff to draft an Ordinance regulating short term rental online booking platforms as one
measure to increase compliance with existing regulations, to require regular reporting to obtain
more information about short term rentals in Bozeman.
6. City staff prepared a report analyzing the required criteria for an amendment to the City’s
regulations for zoning review, including the amendment’s accordance with the BCP 2020, and
found that the required criteria of Montana Code Annotated § 76-1-304 are satisfied.
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
Page 3 of 13
7. The City Commission determines that the ordinance provides a proper balance of interests,
rights, and responsibilities of all parties affected by the ordinance.
Section 2
That Section 38.360.260 of the Bozeman Municipal Code be amended as follows:
Sec. 38.360.260. Short term rentals.
A. Purpose and intent. The purpose of this article section is to provide for the regulation of
short term rentals in certain zoning districts within the city in order to preserve
neighborhood character and promote a supply of long term rental housing stock, while
encouraging economic activity and diversity, and to promote public health, safety, and
welfare.
B. Applicability.
1. The provisions of this article section apply only to transient occupancy of a short term
rentals as defined herein.
2. This article section does not apply to any rental of a dwelling unit which is governed
and defined by The Montana Residential Landlord and Tenant Act of 1977 (Landlord
Tenant Act). This article applies only to transient occupancy of a short term rental as
defined herein.
3. A lower-priced or moderate-priced home subject to and defined by chapter 38, article
380, or a dwelling that received financial support from the city, including but not
limited to down payment assistance, impact fee payment, or other consideration
including affordable units developed using regulatory incentives, infrastructure
prioritization or assistance or a financial subsidy, may not be used as a short term
rental until such time as either the lien instrument against the property in favor of the
city securing the amount of such subsidy has been released and the release recorded
with the Gallatin County Clerk and Recorder's Office or the expiration of an applicable
affordability covenant. The prohibition on use as a short term rental under this
subsection will continue until the later of a lien release or expiration of an affordability
covenant.
C. Definitions. For purposes of this article, the following definitions apply:
1. Booking transaction means any reservation or payment service provided by a hosting
platform that facilitates a short term rental transaction between an owner and a
transient occupant.
12. Hosting platform means a person or entity that provides a means through which an
owner may advertise and offer for rent a short term rental to the general public.
participates in the short term rental business by collecting or receiving a fee directly or
indirectly for any booking transaction through which an owner may offer a dwelling
unit or portion thereof for transient occupancy. Hosting platform includes but is not
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
Page 4 of 13
limited to an online service and an individual using any other means to collect or
receive a fee on behalf of an owner for a transient occupancy of a short term rental.
23. Owner includes any part owner, joint owner, tenant in common, joint tenant, tenant by
the entirety, or lessee with exclusive possession under a valid long-term lease or rental
agreement.
34. Owner-occupied means the owner provides the city evidence the owner occupies the
dwelling as his or her principal residence for more than 50 percent of the calendar year.
45. Operate, oOperation of, or operating a short term rental means the short term rental has
been rented by or on behalf of the owner to the general public for compensation for
transient occupancy. “Operate” "oOperation of" or "operating" a short term rental does
not include mere advertisement of or offering to rent short term rental(s).
56. Responsible person means the person responsible for addressing all maintenance,
nuisance, and safety concerns related to a short term rental.
67. Short term rental is defined in article 7 of this chapter.
78. Transient occupancy of a short term rental means occupancy which has the following
characteristics:
a. The period of occupancy is less than 28 consecutive days, and
b. The renter has a principal residence other than the short term rental., and
c. The short term rental is furnished with personal property necessary to make the
unit ready for immediate occupancy by the renter.
D. Short term rental classifications. Short terms rentals are classified as:
1. Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling
while the owner is occupying the same dwelling unit for the entire rental period.
2. Type-2:
a. A short term rental of an owner-occupied dwelling if the owner is not occupying
the dwelling during the entire rental period.
b. A short term rental of a permitted accessory dwelling unit (ADU) whether or not
the ADU's owner is present in the primary dwelling unit during the rental period.
c. A short term rental of one dwelling unit within a duplex whether or not the
duplex's owner is present in the duplex's other dwelling unit during the rental
period.
3. Type-3: A short term rental that is not owner-occupied.
E. Where allowed. An owner may operate a short term rental in all zoning districts where such
use is authorized in Chapter 38, articles 8-11 and 14 subject to the requirements of this
article chapter.
F. Compliance with laws.
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
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1. In addition to the provisions of this article chapter, the short term rental owner must
comply with all other applicable local, state and federal laws, including but not limited
to city parking regulations, including time limitations and ADA parking restrictions;
lodging facility use tax and accommodations sales tax regulations; health department
permitting requirements; the Americans with Disabilities Act; fair housing laws;
building codes and fire codes, and the non-discrimination provisions in chapter 24,
article 10. Loss of any required permit or license will result in revocation of the short
term rental registration in accordance with subsection J of this section.
2. Compliance with all applicable laws and regulations is the sole responsibility of the
owner. and cCity approval of an application for short term rental registration in no way
waives or transfers to the city such responsibility. In addition, the owner is solely
responsible for verifying the use of a property as a short term rental is compatible with
insurance and mortgage contracts, home owners' association covenants, rental
agreements and any other contracts which govern the use of the property.
G. Administration. The director will collect all registration permit fees and will issue
registrations permits and renewals thereof in the name of the city to all persons qualified
under the provisions of this article chapter and has the power to:
1. Make rules. The director will promulgate and enforce all reasonable rules and
regulations necessary to the operation and enforcement of this article section. All rules
are subject to city commission review and modification.
2. Adopt forms. The director will adopt all forms and prescribe the information to be
given therein.
3. Obtain approvals. The director will submit all applications to interested city officials
for their approval as to compliance by the applicant with all city regulations which they
have the duty of enforcing.
4. Investigate. The director will investigate and determine the eligibility of any applicant
for a short term rental registration permit as prescribed herein.
5. Examine records. The director may examine the books and records of any applicant
when reasonably necessary to the administration and enforcement of this article
section. The city may issue administrative subpoenas as necessary to obtain
information regarding a short term rental or booking transaction.
6. Give notice. The director shall notify any applicant of the acceptance or rejection of the
application and will, upon the director's refusal of any registration, permit and at the
applicant's request, state in writing the reasons for the denial therefor and deliver it
them to the applicant.
7. Record keeping. The director will maintain at all times a record of registered permitted
short term rentals, including the full name of each registrant permittee, the address at
which such short term rental is operated, the date of issuance, the fee paid therefor, the
telephone and address of the applicant, and the time such registration permit will
continue in force effect.
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Page 6 of 13
H. Registration Hosting Permits. The following requirements apply to all short term rentals
registrations permits unless otherwise noted.
1. General. It is unlawful for any person to operate within the city a short term rental
without having first obtained approval for a registered the short term rental permit with
the department of community development. A separate permit registration shall be
required for each short term rental. Approval of a short term rental application results
in the city issuing a permit for the short term rental.
2. Application; submittal materials. The applicant must complete and submit an
application for a short term rental registration permit to the department of community
development using a form provided by the city. The form will include an
acknowledgement and agreement the short term rental meets and will continue to meet
the definition of short term rental classification (Type-1, Type-2, or Type-3) during the
registration permit term. Before the application will be accepted by the director, the
applicant must provide:
a. The name, telephone number, address, and email address of all property owners
and of the responsible person, if different. If the property owner is a business, the
name(s) and contact information of all business owners must be provided.
b. The Montana Department of Revenue tax registration number for the short term
rental.
c. A sketch plan with a description of the short term rental, including street address,
number of bedrooms, and number of off-street parking spaces available for guests'
use.
d. Certification the short term rental meets and will continue to meet the definition
of short term rental classification (Type-1, Type-2, or Type-3) during the
registration term.
e. For Type-2 and Type-3 short term rentals, certification the applicant has read and
understood the standards in subsection I of this section and the property applied
for meets the standards.
f. For Type-2 short term rentals in residential zoning districts, certification that
residents adjacent to the proposed short term rental have been provided written
notice in accordance with subsection 6 of this subsection.
g. All hosting platforms on which the short term rental is listed.
hg. The registration permit fee and fire inspection fee.
3. Safety inspections.
a. Initial inspection. Prior to issuance of the first short term rental registration permit
for any property, an inspection by the city fire department must be completed and
signed off by a city fire inspector, or by an NFPA or ICC-certified fire inspector
using an inspection form approved by the city fire marshal. A fire inspection
checklist form will be provided to the applicant with the application materials. If a
short term rental registration permit lapses for any period of time, upon
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
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reapplication for registration a permit an inspection must be completed and signed
off as described in this subsection before the short term rental registration permit
will be issued.
b. Re-inspection. If re-inspection or multiple visits by a fire inspector are required
before the inspection form may be signed, an additional inspection fees will apply
for each inspection after the initial inspection.
c. Subsequent inspections; self-certification. A short term rental must be inspected
by the city fire department every three years. The applicant must self-certify
continued compliance with each item on a fire inspection checklist upon annual
renewal of a permit for each year that an inspection is not required. The city fire
marshal may require a repeat inspection on a periodic basis, and at any time upon
complaint or evidence of noncompliance. Applications for annual renewal of
registration will include a self-certification by the applicant that they continue to
comply with the fire inspection checklist. By applying for renewal of registration,
the applicant will acknowledge and agree that the city may randomly select a
certain percentage, not to exceed ten percent, of the renewal applications for a full
inspection as described in subsection (a). If selected, the registration renewal will
be conditioned on completion of the fire inspection and payment of the fire
inspection fee. The owner of a short term rental selected for a full inspection will
be allowed to continue to operate the short term rental pending completion of the
inspection, provided all other renewal requirements have been met.
4. Safety hazards. The short term rental owner acknowledges that the city, or any
authorized representative thereof, have the right to suspend operation of any short term
rental when the city determines the rental is causing or contributing to an imminent
public health or safety hazard.
5. Fees. Short term rental registration permit and inspection fees shall be established by
resolution of the city commission.
6. Additional notice requirements for registrations permit and registration permit
renewals of Type-2 short term rentals in residential zoning districts. The applicant for
a Type-2 short term rental registration permit in a residential zoning district included in
section 38.310.030 must give notice on a form provided by the city to each residence
adjacent, including those residences adjacent across a public right-of-way and
properties connected to the applicant's property by property corners. The notice must
include a description of the proposed use and the name, address, telephone number and
email address (if any) of the responsible person.
67. Issuance of registration permit. Once the applicant submits the completed application
form, all required submittal materials, and registration and inspection fees, the director
will review the application form and submittal materials and determine whether the
short term rental meets all city requirements for registration permit. The city will
director may issue the short term rental registration permit when:
a. The director determines the short term rental meets all city requirements for
registration a permit; and
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b. The applicant has provided either a signed pre-operational inspection report from
the health department indicating the short term rental may operate as a public
accommodation or a valid and current public accommodation license issued by
the state of Montana department of health and human services pursuant to Title
50, Chapter 51, MCA.
8. Listing of registration. The short term rental registration form will require the applicant
to agree to inclusion in an online listing of short term rentals registered with the city.
79. Display of short term rental registration number. The owner must include the short
term rental registration permit number issued by the city in all listings and
advertisements, of the owner’s short term rental on any hosting platform and print
advertising.
810. Change in ownership. A short term rental registration permit does not run with the
land, and a change in ownership of the short term rental terminates the registration
permit. The new owner wishing to continue operation of the property as a short term
rental must apply for registration a new permit following the process described in this
section.
911. Expiration. Registrations Permits issued pursuant to this article section are valid for
one year from the month in which such registration permit is issued and will expire
automatically unless renewed in accordance with this section.
102. Renewal. The registrant may apply to renew the registration permit annually using a
form provided by the city. Renewals must comply with the requirements of this code
which are in place at the time of renewal. Failure of an applicant to renew a permit
results in the termination of the lawful use of a property as a short term rental. It is the
registrant's permitee’s responsibility to renew the registration permit on time even if a
courtesy reminder is not received by the registrant. prior to the expiration of the permit.
Failure of an applicant to renew a short term rental permit prior to the expiration of the
current permit period requires the applicant to file a new permit application for a short
term rental and is subject to the initial inspection and fee.
I. Short term rental standards. The following requirements apply only to Type-2 and Type-3
short term rentals unless otherwise noted.
1. Short term rental agreement; written rules for guests. The short term rental owner
must enter into a written rental agreement with the guest for each stay in the short term
rental.
a. The guest must be provided with a written list of rules applicable to the short term
rental with the rental agreement, and the rental agreement must include a written
acknowledgement by the renters of their agreement to comply with such rules.
b. The list of rules must include those rules required by this article section to be
included.
c. The list of rules must be prominently displayed within the short term rental.
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2. Responsible person. The applicant short term rental owner must designate a person
responsible for addressing all maintenance, nuisance, and safety concerns related to a
short term rental. The responsible person must be available to take and respond to
reports of concerns and complaints 24 hours per day, 7 days per week during the
registration term. The name and contact information for the responsible person must be
included in the list of rules.
3. Maximum occupancy for Type-2 and Type-3 short term rentals. The maximum
occupancy of a Type-2 or Type-3 short term rental is two persons per bedroom plus
two additional persons, except that this number may be reduced by the city based on
available parking spaces. The maximum occupancy will be noted on the short term
rental registration and must be included in the list of short term rental rules.
4. Maximum number of bedrooms that may be rented in a Type-1 short term rental;
maximum occupancy. The owner of a Type-1 short term rental may rent or offer for
rent up to two bedrooms in the dwelling, except that in a two-bedroom dwelling, only
one bedroom may be rented or offered for rent. No other area of the dwelling may be
rented or offered for rent. The maximum occupancy of a Type-1 short term rental is
two persons per bedroom.
5. Trash removal. The responsible person must ensure proper disposal of solid waste
pursuant to local and state rules, regulations and laws. The schedule for trash and
recycling collection and instructions for proper disposal must be included within the
short term rental rules.
6. Signage. Exterior signs identifying the unit as a short term rental are prohibited on
short term rentals. During a rental period, there must be a sign posted inside the front
door of the short term rental showing the locations of all fire extinguishers in the unit,
the gas shut-off valve, and fire exits.
7. Noise and nuisance.
a. The owner of the short term rental must ensure that use of the short term rental by
guests is in compliance with the noise provisions of chapter 16, article 6 and all
nuisance provisions of the Bozeman Municipal Code.
b. A prohibition against making loud noise in such a manner as to disturb the quiet,
comfort or repose of a reasonable person of normal sensitivity must be included in
the short term rental rules.
c. All outdoor activities producing noise discernible from a neighboring property
shall cease by 10:00 p.m. This requirement must be included in the short term
rental rules.
J. Hosting Platforms Obligations
1. Compliance with laws. In addition to the provisions of this section, a hosting platform
must comply with all other applicable local, state and federal laws.
2. Reporting requirements. A hosting platform must provide a report to the city on a
quarterly basis that includes, but is not limited to the following:
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
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a. The address of each short term rental located in the city for which it conducts a
booking transaction;
b. The name of any owner or responsible person for each transient occupancy for which
the hosting platform conducted a booking transaction;
c. The length of stay for each transient occupancy for which the hosting platform
conducted a booking transaction; and
d. The price paid for each booking transaction.
3. Required information for booking transaction. A hosting platform must include the city
permit number and the permit in all hosting platforms’ publicly available listings prior to
performing a booking transaction for each short term rental within the city.
4. Obligation to remove listings. If the hosting platform has reason to believe a short term
rental is in violation of any provision of this code, including but not limited to notice from
the city of a violation or an owner’s failure to supply to the hosting platform the city permit
number or the permit for the short term rental, the hosting platform must remove the listing
from its hosting platform within five business days.
JK. Violations; enforcement.
1. Registration suspension or revocation. The director may suspend or revoke a short
term rental registration permit, impose administrative remedies as provided herein, or
enforce a suspension or revocation through a civil action when the registrant permittee
commits one or more of the following acts or omissions:
a. Failure to comply with any provision of this article code;
b. Operating or allowing the operation of the short term rental in such a manner as to
create a public nuisance, cause a breach of the peace, constitute a danger to the
public health, safety, welfare or morals, or interfere with the rights of abutting
property owners;
c. Cancellation of the health department's public accommodation license, tax
authority registration, or any other required permit; or
d. The securing of the registration permit by fraud or misrepresentation, to
specifically include including but not limited to supplying false or incorrect
information on the registration permit application.
2. Procedure. Should the director decide to suspend or revoke a registration permit, the
registrant permittee will be given notice and an opportunity to respond following the
procedures in this subsection, except that should the director determine the short term
rental or its operation present a safety hazard or require immediate remedy, the director
may order operation of the short term rental to cease immediately.
a. The registrant will be notified in writing by the director at least seven days prior
to the action contemplated and the reasons therefore.
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b. Upon receipt of the notice, the registrant may request a meeting with the director.
Such request must be in writing and must be received by the director within seven
days of the registrant's receipt of the notice. Failure on the part of the registrant to
request in writing a meeting and within the specified time period shall be a waiver
of the registrant's right to a meeting.
c. If a meeting is requested by the registrant, the director will set a time, date and
place and will so notify the registrant, in writing.
d. When a meeting is conducted, the city will present the evidence supporting the
contemplated action. The director may request evidence be presented by other
parties. The registrant may present evidence. The director will take all evidence
admitted under advisement and once a decision has been made the director will
notify the registrant of the findings and decision in writing.
3. Civil Penalty. The director may recover the following civil penalties for any violation
of this section. Each day a violation continues constitutes a separate violation.
a. For any violation by an owner, the director may recover a civil penalty of not
more than $500.00.
b. For any violation by a hosting platform, the director may recover a civil penalty
of not more than $500.00.
34. Appeal. Any person An aggrieved person by a decision of the director will have the
right may file an application to appeal the matter to the city commission according to
by following the procedures in section 38.250.030.
45. Unpaid fee constitutes debt. The amount of any unpaid fee, the payment of which is
required hereunder, constitutes a debt due the city.
56. Violation constitutes a misdemeanor. In addition to suspension or revocation under
subsection A of this section, or the imposition of a civil penalty as provided herein, a knowing
violation of this article constitutes a misdemeanor punishable as described in section
38.200.160 except a person may not be imprisoned for a violation of this section.
Section 3
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of
the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 4
Savings Provision.
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This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 5
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 6
Codification.
This Ordinance shall be codified as indicated in Section 2.
Section 7
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the _____ day of ________________, 20__.
____________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
____________________________________
MIKE MAAS
City Clerk
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Ordinance No. 2131, (Generally Revise Regulations of Short Term Rentals)
Page 13 of 13
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 20__. The effective date of this ordinance is __________, __, 20__.
_________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
_______________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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Memorandum
REPORT TO: Jeff Mihelich, City Manager
FROM: Nakeisha Lyon, Planner II
Renata Munfrada, Community Housing Program Coordinator
SUBJECT: Affirmative Obligations for Short Term Rental Booking Platforms
DATE: January 3, 2023
Background
The evolution of the short-term rental landscape is persistent and city planners need to prepare a strategy
that allows communities to safely accommodate visitors and reap the rewards of this growth. Because
short-term rentals help meet a need for diverse income streams both now and in the future, communities
have a tremendous amount of tax, permit, and license revenue at stake through proper compliance
programs.
To implement any type of effective short-term rental regulation, local governments must expect to invest
some level of staff time and resources in compliance monitoring and enforcement. Local governments
may also adopt fine structures that adequately incentivize short-term hosts and booking platforms to
comply with the adopted regulations. Ideally, the fines should be proportionate to the economic gains
that potential violators can realize from breaking the rules, and fines should be increased for repeat
violators.
Booking Platforms
Booking platforms are businesses that provide online accommodation booking services for short-term
rental accommodations. Companies like Airbnb operate like an online marketplace to list, explore, and
book both short-term and long-term housing accommodations. Its platform connects hosts and guests,
facilitates communication with one another to reserve and book short or long-term rental
accommodations, and provides payment processing services at the time of booking.
A booking agency participates in the short-term rental business by providing, and collecting a fee for
booking services through which an owner may offer a dwelling unit for rent. Hosting platforms provide
booking services through an online platform that allows an owner to advertise the dwelling unit through
a website.
Airbnb charges no fees when a host lists a property on the platform, nor does it own or operate any of
the properties. Rather, it makes money by collecting a services fee from both the guest and the host,
determined as a percentage of the accommodation fee set solely by the host, which compensates Airbnb
for its publishing, listing, and booking services. The fee is collected instantaneously at the time of booking.
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Platform Compliance
Communities typically enforce their short-term rental obligations in accordance with a generally
applicable enforcement provision contained in the code of ordinances or zoning ordinance, or through a
specific enforcement provision incorporated into the short-term rental regulations. Violation of the short-
term rental ordinance is subject to the same penalties and procedures as a violation of any other provision
in the zoning code, which can include fines or a stop order.
One unique policy option that has seen success in other communities is to improve compliance with
existing regulations by placing more of the burden for compliance on the short-term rental booking
platforms.
Municipalities could require booking platforms like Airbnb, HomeAway, and Vrbo to verify that any home
offered for short-term rental is lawfully registered with the City before the platform may provide, or
collect a booking fee for booking service of the unit. In this way, the City will be better able to monitor
the compliance of active short-term rentals and ensure the regulatory requirements are being met.
The platform may also be required to submit a monthly report, or affidavit of compliance, to the City
affirming that they have exercised reasonable care to verify that hosts utilizing the service are lawfully
registered.
Establishing platform liability gives local governments the ability to enforce and enact rules and
ordinances that penalize platforms that do not comply with regulations. Placing affirmative obligations on
booking platforms strengthens enforcement mechanisms and helps ensure that short-term rental
operators are in compliance with local regulations.
Affirmative Obligations
An affirmative duty is a legal obligation that requires some effort, or reasonable care, to satisfy. According
to the American Law Register, “to constitute actionable negligence there must concur three essential
elements – a duty of care, a breach of that duty by negligent act or omission, and injury naturally resulting
therefrom.” Failure to exercise reasonable care results in negligence. This is the original conception of a
duty to take precaution to insure inevitable legal incidents are avoided.
A duty to prevent illegal activity arises when nonfeasance can be avoided by taking affirmative
precautions. These onerous positive duties usually deal with the obligations of the owners, possessors,
and users of real and personal property, and those carrying on business. In the context of short-term
rental booking activity, the booking agency is not a stranger to the transaction – collecting a booking fee
for booking service – and is rather a participant. Therefore, the agency may reasonably be required to
bear the burden along with the benefit.
In line with the concepts of duty of care and negligence, local policy makers have begun placing affirmative
duties – or requirements to confirm the legality of the rental listing – on booking platforms directly.
Models for Implementing Affirmative Obligations
In order to strengthen enforcement of short-term rental regulations, many major cities like Santa Monica,
San Francisco, Boston, Denver, and Honolulu have implemented affirmative obligations on booking
agencies like Airbnb. These cities have started citing booking platforms as accomplices to unlawful renting
activity – agencies that allow hosts to book unregistered short-term rental units are participants in each
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illegal transaction. Imposing onerous affirmative duties on these agencies effectively prevents illegal
transactions and boosts compliance.
Santa Monica, California
After maintaining a multi-decade prohibition against short-term rentals in residential districts, in 2015,
the City eased this prohibition by authorizing a form of short-term rentals known as home-sharing, which
permits City residents who obtain a City license to host visitors for compensation for a period of less than
31 days, as long as the resident and visitor are both present in the home. Un-hosted short-term rentals of
residential housing, known as vacation rentals, remain unlawful in Santa Monica. This legislation struck
an important balance by enabling current and prospective residents to supplement income through
home-sharing, while ensuring that Santa Monica’s housing units would not be surreptitiously or openly
converted into de facto hotels.
One of the chief issues facing local governments as they contend with regulation of short-term rental
marketplaces is the trouble of enforcing whatever framework they develop. In 2015 the Santa Monica
City Council adopted the Home-Sharing Ordinance thereby amending and revising Chapter 6.20 of the
Santa Monica Municipal Code to strengthen regulation of home-sharing and vacation rentals. In 2019
amendments to the ordinance containing listing and advertising requirements were adopted. The
ordinance imposes four obligations on short-term rental booking platforms: 1) collecting and remitting
applicable taxes; 2) regularly disclosing listings and booking information to the City; 3) refraining from
booking properties that are not licensed and listed on the City’s registry; and 4) refraining from collecting
a fee for ancillary services.
The administrative fine amounts for advertising, facilitating or operating a vacation rental start at $1000
per day, per violation, and increases if the violations continue. There may be other associated penalties
and costs in addition to administrative fines, including the cost of investigation. Failure to comply with
administrative citations may lead to referral to the City Attorney’s Office for prosecution or other legal
options.
HomeAway & Airbnb v. Santa Monica
The ordinance effectively prevents and penalizes online booking platforms for unlawfully booking short-
term vacation rentals of unlicensed properties. Airbnb and HomeAway argued that the City’s ordinance
ran afoul of the Communications Decency Act (CDA) and the First Amendment because it required the
platforms to monitor the content of third-party listings on their sites and remove listings for unlicensed
properties.
In 2019 the Ninth Circuit Court of Appeals (Montana is in the Ninth Circuit) reaffirmed its rejection of
Airbnb and HomeAway’s challenge to the City of Santa Monica’s Home-Sharing Ordinance. The court
found that the ordinance only prohibits processing transactions for unregistered properties and does not
proscribe, mandate, or even discuss the content of the listings that the platforms display on their websites.
The regulation only requires that the booking transactions include licensed properties.
The City’s Home-Sharing Ordinance thus stands absent a petition by the platforms to the United States
Supreme Court.
City of San Francisco, California
From 1986 to 2014, San Francisco banned short-term rentals, concerned that they would significantly
reduce the city’s affordable housing stock. In 2015, the city repealed this ban and imposed certain
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conditions on short-term rentals by permanent residents. In 2016, the city passed the Residential Unit
Conversion Ordinance, amending Chapter 41A of the Administrative Code to require hosting platforms to
verify a residential unit is on the City registry prior to accepting a fee for booking service. The ordinance
effectively makes it a misdemeanor to collect a fee for providing booking services for the rental of a unit
not registered with the city. The misdemeanor is punishable by a fine of up to $1000 per day, per listing
and potentially carries criminal penalties.
San Francisco was the first city to introduce rules that prohibited Airbnb from booking illegal listings. The
ordinance was adopted to help enforce compliance with the registration requirement by ensuring that
hosting platforms do business with law-abiding hosts. Because the ordinance was not motivated by a
desire to suppress speech, the conduct at issue is not expression, and the ordinance does not have the
effect of targeting expressive activity.
The ordinance regulates hosting platforms that provide booking services for short-term rentals; including
a framework for Airbnb and HomeAway to take reasonable care to verify listings are lawfully registered
before offering booking services. The ordinance stipulates that a hosting platform may provide, and collect
a fee for, booking services in connection with short-term rentals only when those residential units are
lawfully registered on the City’s registry at the time the unit is rented. Airbnb lost about 4,000 listings
after the regulation took effect.
The platform compliance provision of the ordinance requires the hosting platform to submit a monthly
affidavit to the Office of Short Term Rentals (OSTR) affirming that they have exercised reasonable care to
verify that hosts utilizing their service are lawfully registered. The ordinance defines a booking service as
any reservation or payment service provided by an entity that facilitates a short-term rental transaction
and collects a fee in connection with the reservation.
Another provision pertaining to monitoring hosting platforms gives the OSTR the power to issue and serve
administrative subpoenas as necessary to determine whether owners, business entities, and hosting
platforms have complied with the administrative code.
Airbnb v. San Francisco
Airbnb filed for a preliminary injunction against the ordinance, arguing that it would essentially require
the company to monitor and verify information provided by third-party hosts. The court once again held
that the Communications Decency Act (CDA) was not applicable because the ordinance did not obligate
Airbnb to perform the typical duties of a “publisher” such as monitoring, editing, withdrawing, or blocking
content submitted by third-party hosts.
Hosting platforms often perform two distinct functions. They post listings for rental units, and they
provide booking services in connection with the rental of those units. The ordinance does not impose
liability for housing platforms’ decisions about what to post or for the substance of listings contained on
their websites. Compliance with the law would not require them to review or vet or remove any user
content.
To the contrary, a hosting platform can publish whatever listings it wants without violating the ordinance,
and faces potential liability only if and when it steps outside its role as a publisher by providing specified
booking services to an unregistered host in return for a fee. Providing payment and reservation services
is not a publication function.
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In sum, none of the arguments raised or cases cited by Airbnb and HomeAway enable them to avoid the
binding Ninth Circuit precedent establishing that, because the ordinance does not seek to treat hosting
platforms as publishers of third-party content, the CDA and the First Amendment simply do not apply
here.
This decision could make Airbnb susceptible to regulatory violations in pending litigation in other
jurisdictions where Airbnb has made similar arguments to those that failed in this case. Another outcome
of this decision is that Airbnb agreed to help San Francisco develop measures to verify the registration
status of short-term rentals.
Settlement Agreement
In 2017, the City and County of San Francisco including the OSTR and Airbnb entered into a Settlement
Agreement. While Airbnb continued to object to the ordinance, the company entered into the agreement
because it provides a safe harbor for compliance under the ordinance and permits the creation of a Pass-
Through Registration (PTR) system developed in cooperation with the City that facilitates the online
registration of hosts from the Airbnb website.
Airbnb also recognized the importance of being a constructive partner with the City and continuing to
work with it on various policy issues relating to short-term rentals, including preventing short-term rentals
from impacting the availability and cost of permanent housing for City residents.
The PTR system sends host registration application information directly to the OSTR. Airbnb also processes
renewals of OSTR registrations for hosts with existing registrations through its PTR system. Airbnb pre-
populates a field on the host’s Airbnb listing with their registration number and expiration date.
In addition, Airbnb reimbursed the City $40,000 in immediately available funds for the costs to build a
system that facilitates pass-through registration from Airbnb. Airbnb also pays the City $5,000 annually to
reimburse the City of its costs for maintaining and operating the system.
City of Boston, Massachusetts
In 2018, Boston enacted Docket #0764, an ordinance allowing short-term residential rentals in the City of
Boston, amending Chapter 9-14 of the Boston Municipal Code. The ordinance includes required
registration for those looking to rent out their property through platforms like Airbnb. In addition to
punishing individual homeowners who disregard these rules, the ordinance fines intermediaries like
Airbnb $300 per day for each ineligible rental booked on the site.
According to the enforcement provision in the ordinance, the Commissioner shall enter into agreements
with booking agents for assistance in enforcing the provisions of the law, including an agreement whereby
the booking agent agrees to remove a listing from its platform that is deemed ineligible for use as a short-
term rental, and must prohibit a host from listing any unit without a valid registration number from the
City.
Furthermore, any booking agent that fails to enter into such agreements to actively prevent, remove or
de-list any ineligible listings shall be prohibited from conducting business in the City. In addition, the
booking agent must provide to the City, on a monthly basis, an electronic report of the listings advertised
by the booking agent within the City.
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Airbnb v. Boston
In 2018, Airbnb sued the City of Boston. Airbnb claimed that three sections of the ordinance – the
Enforcement Provision, the Data Sharing Provision, and the Penalties Provision – are preempted by or
violate the CDA, the First, Fourth, and Fourteenth Amendments.
The First Circuit Court of Appeals denied Airbnb’s motion for a preliminary injunction pertaining to the
provision requiring monthly reporting of publicly available information, and the penalties provision.
However, the court approved the injunction for the enforcement provision of the ordinance.
The court maintained that because the penalties provision is aimed at regulating Airbnb’s own conduct,
and not at punishing it for content by a third party, the CDA does not preempt it. The record established
that Airbnb plays multiple related but distinct roles in the online platform it has established. Airbnb acts
as both a publisher of third-party rental listings, and as an agent that books rental agreements between
users and hosts and collects and distributes payments when such a deal is made. The penalties provision
threatens a fine only if Airbnb accepts a fee for booking an ineligible units.
The court also maintained that Airbnb did not establish that it is likely to succeed in showing that a
relatively modest fine – imposed not for something one of Airbnb’s hosts or users published online, but
because of Airbnb’s independent act of collecting a fee after facilitating an illegal rental transaction –
meaningfully implicates, let alone obstructs, Congress’s desire to allow website operators to engage in
blocking and screening of third-party content, free from liability for such good faith efforts.
To the extent that data reporting provision compels Airbnb to provide monthly lists limited to information
appearing in its public listings for Boston rental properties, the Court found that Airbnb did not establish
a likelihood that it will succeed with this challenge. Neither Airbnb nor its users can reasonably claim an
expectation of privacy in information included in public listings.
According to the 2020 report Airbnb provided to the City of Boston, implementation of the ordinance had
a dramatic impact on short-term rental listings on the platform. Listing dropped from 3,775 in November
2018 to 2,593 in November 2019. With full implementation on December 1, 2019, the listings fell to 1,122
on December 4, 2019 – a 70% decline in listings from the year prior.
City and County of Denver, Colorado
The City and County of Denver initially passed legislation regarding short term rentals in 2016 and required
a license in 2017. The jurisdiction from the beginning included a requirement of the short-term rental to
be a primary residence of the hosts. A study in 2019 revealed that this has prevented several negative
impacts of short-term rentals within the community.
The ordinance has been revised throughout the years, most recently on November 23, 2020 in which the
Denver City Council adopted Council Bill CB20-1229, which prohibits booking service providers from
processing transactions for accommodations at properties not properly licensed as short-term rentals and
imposing fines for infractions. Effective on February 1, 2021, this ordinance made it unlawful for a booking
agency to receive payment from an unlicensed short-term rental located in the City and County of Denver
with penalties starting at $1000 per violation per day.
The assessment of affirmative obligation came from the Short Term Advisor Committee that sought out
further compliance of short-term rentals within the City and County of Denver. The committee includes
representatives for Airbnb. During the introduction and discussion of the ordinance, Airbnb pushed back
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due to fears of profit loss. Airbnb attempted to reach an agreement or memorandum of understanding
with Denver which would denote that the company would attempt to do their best to verify compliance
with the municipality. However, Denver refused to enter in to such an agreement and included affirmative
obligations in the ordinance to ensure a mandatory requirement was in place for the hosting platforms
and others to conform to this standard.
As of February 2022, the jurisdiction has yet to cite Airbnb or any other booking platform. The City and
County of Denver reserves the right to enforce and believes that from a policy perspective, the
expectation for compliance is clear. The jurisdiction has an 80% short-term rental compliance rate.
City and County of Honolulu, Hawaii
Per Ordinance 22-7, it is unlawful for a hosting platform to receive a fee for a transient vacation unit that
is not permitted or licensed. The revised ordinance places the burden on the hosting platform which must
exercise reasonable care to confirm if a transient vacation unit is permitted or licensed. Each booking on
the hosting platform must include an identifying tax map key number which is the tracking and
identification mechanism utilized by Honolulu. Airbnb and other hosting platforms must remove listings
or bookings in prohibited areas. The City and County of Honolulu worked with the various hosting
platforms prior to the roll out of the new ordinance and received some push back in the beginning.
However, hosting platforms have begun to cooperate.
The ordinance which was introduced in April 2022, also reduced the permitted or conditional use of bed
and breakfast homes from 13 zoning districts to three zoning districts, with transient vacation units
remaining permitted or conditional within the existing three zoning districts, essentially permissible only
in the resort district and two apartment districts on the island. Those units, now non-conforming, were
granted an opportunity after the introduction of the revised ordinance to claim a grandfathered status,
and now must keep up with renewal on an annual basis or lose their status.
Prior to the ordinance change, approximately 10,000 short-term rentals were advertised with only 800
short-term rentals approved. Now, about 2,000 to 3,000 short-term rentals are eligible to be registered.
Violations are not less than $1,000 and not more than $10,000 per violation per day which is assessed on
the property owner. Honolulu included a 180 day introductory period which allowed staff to roll out the
changes and included a cleanup ordinance for any issues that occurred. The City and County is seeking to
establish a short term rental division under code enforcement with several inspectors and a manager to
monitor the host compliance software, HAMARI.
Currently, the jurisdiction has a hold on any short-term rentals between 30 to 89 days due to an injunction
filed by Hawaii Legal STR Alliance. The revised ordinance allows for transient occupancy up to 90 days
rather than up to 30 days. Hawaii Legal STR Alliance filed the lawsuit based on a takings claim for the
removal of the permitted and conditional short-term rentals in non-resort and apartment zoning districts
as well as claims that the ordinance conflicts with state law. Additionally, the lawsuit includes claims that
the violations are excessive.
City of Chicago, Illinois
The City of Chicago enacted a Shared Housing Ordinance in June 2016 which regulates short-term
residential rental activities. Prior to 2021, licensed rental intermediaries (hosting platforms) would
register on the owner’s/tenant’s behalf and the City of Chicago would then determine their eligibility. As
the City of Chicago developed an online home sharing registration portal, all registration processes are
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now handled directly with the City of Chicago. As hosts must register their units, online hosting platforms,
and Shared Housing Companies must also have license to operate and advertise listings in Chicago.
There are two types of internet platforms: 1) Short Term Residential Rental Intermediary; and 2) Short
Term Residential Rental Advertising Platforms. A Short Term Residential Rental Intermediary is a person
or company, who for compensation or a fee, uses an internet platform to connect patrons to shared
housing units, which are dwelling units with six or fewer sleeping rooms that are rented out for a period
of 31 or fewer consecutive days. Rental intermediaries must remove unlicensed hosts, and must apply
and collect hotel accommodation taxes on behalf of the City of Chicago.
A Short Term Residential Rental Advertising Platform is a person or company, who for compensation or a
fee, uses internet platforms to connect patrons to short-term rentals, vacation rentals, or hotels. These
agencies are required to comply with local laws and regulations regarding the collection and payment of
taxes, including but not limited to the Chicago Hotel Accommodation Tax Ordinance.
Regardless of the hosting type, each must ensure that the license number for the short-term rental is
included in their advertisements. If not, it “creates a rebuttable presumption that the business is operating
without a license” and is subject to penalties. These include a rental of ineligible units by licensee or
licensee’s family members which may be fined between $500 to $1,000 within 14 days of notice and
$1,500 to $3,000 on or after the 15th day and before the 28th day of notice, and $5,000 after the 28th day
of notice with separate offenses and violations thereafter.
Other Hosting Platform Responsibilities
Minneapolis, Minnesota
The City of Minneapolis, Minnesota requires a license to act as a hosting platform. According to the city’s
Short-Term Rental Hosting Platform ordinance, entities are prohibited from engaging in the activity of a
short-term rental hosting platform in the city without a license issued pursuant to the Minneapolis Code
of Ordinances. The license application requires specific information about the applicant and the applicant
must meet certain qualifications, including being in compliance with city ordinances.
In cases where rental fees for lodging are collected by the hosting platform, the applicant must comply
with all requirements of the State of Minnesota Department of Revenue to accurately collect and remit
applicable taxes attributable to short-term rental transactions. Each licensee is required to provide data
pertaining to its operations, property addresses of listings, annual number of rental days, amount charged,
fees and taxes, as needed to audit and determine compliance with tax regulations. The hosting platform
must also provide notice directing hosts to Chapter 351 of the Minneapolis Code of Ordinances.
Las Angeles, California
The City of Los Angeles, California has a Home-Sharing Platform Agreement with Airbnb. The agreement
establishes the platform’s responsibilities pursuant to the City’s Home-Sharing Ordinance. According to
the ordinance, the hosting platform may complete booking service transactions only as authorized by the
municipal code.
In order to ensure the legality of bookings, it is mandatory for the platform to include and display the
registration number on each short-term rental listing. The platform must also remove any categorically
ineligible listings. The hosting platform must also display a link to the city’s webpage, including information
regarding penalties associated with failing to obtain a valid registration.
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9
In addition, the booking platform must develop, create, and maintain an interface system to monitor and
determine the validity of listings. The system must track certain data including unique listing identification
numbers, listing web addresses, registration number, physical location of the unit, etc. This data can help
municipalities have a better understanding of the local short-term rental landscape.
Fillmore, California
Hosting platforms are prohibited from completing any booking transaction for short-term rentals in the
city. Hosting platforms must provide the city with the names and contact information of any person
attempting to use the platform to complete any booking transaction. Any hosting platform in violation
will be ordered to remit all illegally obtained rental revenue to the city so that it may be returned to the
home-sharing visitors
Fresno, California
The hosting platform must be listed on the owner’s short-term rental permit application, or the property
owner must submit a written request and receive written approval from the city to lists on another hosting
platform.
Panama City Beach, Florida
Hosting platforms which display user-inputted City-issued business tax receipts but fail to verify the
validity of the data is exempt from penalties. However, the platform shall remove the listing within ten
days of notice from the city.
Hickory Creek, Texas
It is unlawful for an owner to advertise a short-term rental in any medium, including but not limited to
newspaper, magazine, brochure, website, or mobile application without including the current permit
number assigned by the city.
Big Bear Lake, California
A property owner may not hold more than two short-term rental licenses per year. One license is required
per rental unit. Any person operating an unlicensed vacation rental property shall be permanently
ineligible to operate a vacation rental in the city.
Los Gatos, California
Short-term rental hosts must provide proof of permanent residence with at least two of the following: a
motor vehicle registration, driver’s license, voter registration, tax document, or utility bill. A person may
only have one primary residence and must reside there for a minimum of nine months per year.
If the host is planning to advertise the short-term rental unit, the listing numbers or URL/website
addresses of where the short-term rental is advertised must be provided.
Short-term rental licenses are capped at 5% of the housing stock in the Town of Los Gatos. If the number
of valid short-term rental licenses issued exceeds that percentage, the issuance of licenses will cease and
additional applicants will be placed on a first-come first-served waiting list.
In a hosted rental, the number of nights that the property can be used for short-term rental purposes shall
be limited to 180 nights per calendar year. If un-hosted, the number of nights shall be limited to 30 nights
per year.
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10
Short-term rentals are prohibited in new accessory dwelling units, senior housing, and below market price
units. Short-term rentals are prohibited in all apartment complexes. Commercial or assembly uses, such
as weddings, corporate events, and parties are prohibited short-term rentals.
Conclusion
The rise and growth of short-term rental platforms such as Airbnb, Vrbo, and HomeAway has created
plenty of debate amongst local governments, the hotel industry, the real estate lobby, housing activists,
and local residents about the impact of such rentals on the availability and affordability of long-term rental
housing.
According to a recent article in the Harvard Law & Policy Review, the theory behind the “Airbnb Effect”
goes as follows: short-term rentals reduces the affordable housing supply by distorting the housing market
in two interconnected mechanisms. The first such mechanism is one of simple conversion: any housing
unit that was previously occupied by a city resident, but is now listed on Airbnb year round, is a unit that
has been removed from the rental market and has essentially been added to the community’s supply of
hotel rooms. This leads to a real, but likely mild, increase in rents, an effect that is concentrated in affluent
or gentrifying neighborhoods along the community’s central core. More disconcertingly, conversion
reduces the community’s already limited supply of affordable housing.
The second mechanism is “hotelization.” So long as a property owner or leaseholder can rent out a room
on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the
residential market, there is an overpowering incentive to list each unit in a building on Airbnb rather than
rent to local residents thereby creating mini “home-hotels.” This decreases the supply of housing and
spurs displacement and segregation.
Given that the short-term rental market has grown by 800% since 2011, it is therefore not hard to see
why many people are concerned about the industry’s impact on affordability and availability of long-term
rental housing. While not the primary cause of affordable housing problems, the conversion of long-term
housing into short-term rental use are such a concern that it’s becoming a major rationale for regulating
short-term rentals.
Recommendation
Staff recommends that the City of Bozeman pursue four types of affirmative obligations:
1. In order to ensure the legality of bookings, the booking platform must include and display the
registration number on each short-term rental listing.
2. Short-term rental hosts must upload a signed and approved copy of the City-issued short-term
rental permit along with the registration number for each unit listing.
3. If the host is planning to advertise the short-term rental unit, the listing numbers or website
addresses of where the short-term rental is advertised must be provided.
4. The booking platform must provide to the City, on a predetermined basis, an electronic report of
the listings advertised by the booking agent within the City.
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Short Term Rental Focus Group Summary
The City Commission prioritized efforts to better understand how regulation of Short Term Rentals
(STRs) in Bozeman may influence housing supply and affordability. According to available data from
Host Compliance, there are 918 active Short Term Rental (STR) listings in the Bozeman area (based on
City's jurisdiction limits). Out of 20,988 total households, STRs make up roughly 4.4% of the overall
housing supply. The city’s STR registration process requires owners of STRs to register with the city. Only
253 or 27.5 % of STRs are registered with the City.
After a City Commission work session in summer 2022, staff were directed to engage with owners of
STRs about potential incentives to convert STRs into long term rentals. The purpose was to gather
feedback from local STR owners on motivations, incentives, and barriers to converting short term rentals
to long term rentals.
On Wednesday, January 18th, city staff from Communications, Legal, Planning Division, and Community
Housing Program facilitated and recorded conversations with 13 STR owners at City Hall. Participants
were selected from the city’s current list of registered STR owners to represent diversity across duration
of time registered with the city, number of STRs owned, and location across the city.
Summary of Themes
What we heard from participants is summarized into five main themes:
1.Financial benefits of STR over LTR
o Participants stated that the income earning potential is greater with STRs
o Helps some participants pay their mortgage
o Some mentioned STRs as a long-term financial investment for their future (retirement)
o About 1/3 of participants voiced support for a financial subsidy to convert their STR to
an LTR
“Big Sky does it; it’s a short-term solution”
“As an owner, it would help bridge that gap”
o About 2/3 did not support financial subsidy to convert their STR into an LTR
“Tax payers won’t want to foot the bill for a program that only benefits STR
owners, and it likely wouldn’t incentivize them anyway”
“Subsidy is a recipe for failure. Would not incentivize them to convert. Better off
putting subsidy toward building affordable housing”
“Focus on future planning. Incentivize developers, not hosts”
“Big Sky Rental program is an example of what didn’t work”
2.Lack of enforcement of existing STR regulations
o Participants viewed the city as not enforcing or following through on STR regulations
and wanted staff to focus on compliance rather than converting or banning STRs
“We haven’t seen what enforcement can do – and there are problems w/ the
permit system”
“People are doing STRs illegally”
“Enforce a business license for a type 3”
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“The data suggests 5,000 STRs for Bozeman may be healthy. We should enforce
it, and celebrate it”
3. Flexibility and convenience of STR over LTR
o Some participants brought up how STRs are more flexible than LTRs for owners as they
want to be able to use it part of the year or have family and friends use the property
4. Challenges with landlord/tenant relationships and property maintenance with LTRs
o Participants talked about challenges with LTRs when it comes to tenants. There is
increased wear and tear on LTRs
o Some hosts had long-term rentals and decided to convert to STRs due to bad
experiences
“Tenants not paying rent, or are late with rent, and the eviction process is
daunting”
o Many viewed long-term leases as a bigger liability and STRs as less risky.
5. Potential solutions
o Bulk leases for large employers –
“Hospitals are desperate to find housing. May ease some concerns about finding
reliable tenants”
o Limits on number of STR licenses per owner –
“I shouldn’t be able to have 15 vacation rentals”
“Restrict 2nd and 3rd homes as STRs. Prevent out-of-state investors”
“Give developers incentives to ban STRs in subdivisions and CC&Rs to prevent
future proliferation”
o Prohibiting certain types of STRs –
“No new Type 3s”
“Type 3s have increased drastically. City needs to look at that”
“We should all be in favor of more restrictions as long as we are grandfathered
in.”
o Regulating STRs by location –
Setting up a points system on top of existing regulations (seniority, priority in
higher intensity zoning districts, fast track ADU eligibility, STR core
areas/allowing more in areas with existing STRs)
o Create a program to educate, match, and “certify” reliable renters and landlords –
Create a pool of funds (from deposits and fees paid by the tenant) to pay for
background checks; underwrite leases; offer insurance coverage for damages
(like Airbnb)
o City and County investment in buying land, developing housing
Many view lack of housing and increased rental costs are causing the housing
crisis, not STRs.
Instead of focusing on STRs, focus on how we can create a housing market and
environment that creates more LTRs.
Look at vacant land in the County to build housing
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Memorandum
REPORT TO:Community Development Board
FROM:Elizabeth Cramblet, Associate Planner
Chris Saunders, Community Development Manager
Erin George, Deputy Director of Community Development
Anna Bentley, Director of Community Development
SUBJECT:Annexation Application 23016 requesting annexation of Two Parcels
Approximately 1.06 Acres and Adjacent Right of Way for Willow Way and
Amendment to the City Zoning Map for the Establishment of a Zoning
Designation of R-4 (Residential High Density District). Subject site is located
on the north side of Kagy Boulevard and the west side of Willow Way
(northwest corner of Kagy Boulevard and Willow Way), Application 23016.
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Having reviewed and considered the staff report, application materials,
public comment, and all information presented, I hereby adopt the findings
presented in the staff report for application 23016 and move to recommend
approval of the 1801 & 1805 Willow Way Zone Map Amendment, with
contingencies required to complete the application processing.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The proposed application includes annexing two parcels totaling
approximately 1.06 acres into the City limits and establishing an initial zoning
of R-4 (Residential High Density) district. The property is currently zoned
Residential Suburban (RS) within the county. The same RS county zoning is
also to the north, west, and east. Directly south of Kagy Boulevard is zoned
Agriculture Suburban (AS) within the county.
Nearby municipal zoning to the east, southeast, and west is R-4, Residential
High Density and R-2, Residential Moderate Density with REMU, Residential
Emphasis Mixed Use towards the southeast and further south of the subject
site. The Future Land Use Map in the Bozeman Community Plan (BCP) 2020
designates the property as “Urban Neighborhood” which includes the R-4
district as an implementing zoning district. The property is bordered by
Willow Way to the east (a Bozeman classified local street), and Kagy
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Boulevard to the south, (a Bozeman classified principal arterial). The
proposed annexation would bring in additional right of way to build out Kagy
Boulevard to the City’s principal arterial standard adjacent to the subject
property as would be required with future development.
UNRESOLVED ISSUES:There are no identified conflicts on this application at this time.
ALTERNATIVES:1. Approve the application;
2. Recommend modifications to the requested zoning;
3. Deny the application based on findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing on the application, with specific
direction to staff or the applicant to supply additional information or
to address specific items.
FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds
will be changed by this Annexation or Zone Map Amendment.
Attachments:
23016 1801 & 1805 Willow Way-ZMA CDB SR.pdf
Report compiled on: May 23, 2023
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Page 1 of 30
23016 Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA
Public Hearing Dates : Zoning Commission – June 5, 2023
City Commission – June 6, 2023
Project Description : Annexation application 23016 requesting annexation of two parcels
approximately 1.06 acres and adjacent right of way for Willow Way and amendment
to the City Zoning Map for the establishment of a zoning designation of R-4
(Residential High Density District).
Project Location: Located on the north side of Kagy Boulevard and the west side of
Willow Way, and legally described as Tract 7 and Tract 8, of Beatty’s Subdivision,
located in the SW ¼ of Section 13, Township 2 South, Range 5 East, Principal
Meridian, Gallatin County, Montana.
Recommendation: Meets standards for approval with terms of annexation and
contingencies .
Recommended Zoning Commission Motion: Having reviewed and considered the staff
report, application materials, public comment, and all inform ation presented, I
hereby adopt the findings presented in the staff report for application 23016 and
move to recommend approval of the 1801 & 1805 Willow Way Zone Map
Amendment, with contingencies required to complete the application processing.
Recommend ed City Commission Annexation Motion: Having reviewed and considered
the staff report, application materials, public comment, and all information
presented, I hereby adopt the findings presented in the staff report for application
23016 and move to approve the 1801 & 1805 Willow Way annexation subject to the
terms of annexation and direct staff to prepare an annexation agreement .
Recommended City Commission Zoning Motion: Having reviewed and considered the
staff report, application materials, public comment , recommendation of the Zoning
Commission, and all information presented, I hereby adopt the findings presented in
the staff report for application 23016 and move to approve the 23016 Willow Way
Zone Map Amendment with contingencies of approval necessary t o complete
adoption of an implementing ordinance .
Report: May 23, 2023
Staff Contact: Elizabeth Cramblet, Associate Planner
Lance Lehigh, City Engineer
Agenda Item Type: Action - Legislative
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Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 2 of 30
EXECUTIVE SUMMARY
This report is based on the application materials submitted and public comment received to
date. This report addresses both the zoning amendment for Zoning Commission as well as
the annexation and the zoning amendment for the City Commission. Application materials
available at 1801 & 1805 Willow Way, Application 23016 (External link)
Unresolved Issues
There are no identified conflicts on this application at this time.
Project Summary
The proposed application includes annexing two parcels totaling approximately 1.06 acres
into the City limits and establishing an initial zoning of R-4, Residential High Density
district. The property is currently zoned “Residential Suburban” (RS) within the county. The
same RS county zoning is also to the north, west, and east. Directly south across Kagy
Boulevard is zoned “Agriculture Suburban” (AS) within the county.
Nearby municipal zoning to the east, southeast, and west is R-4, Residential High Density
and R-2, Residential Moderate Density with REMU, Residential Emphasis Mixed Use
towards the southeast and further south of the subject site. The Future Land Use Map in the
Bozeman Community Plan (BCP) 2020 designates the property as “Urban Neighborhood”
which includes the R-4 district as an implementing zoning district. The property is bordered
by Willow Way to the east (a Bozeman classified local street), and Kagy Boulevard to the
south, (a Bozeman classified principal arterial). The proposed annexation would bring in
additional right of way to build out Kagy Boulevard to the City’s principal arterial standard
adjacent to the subject property as would be required with future development.
In determining whether the criteria applicable to this application are met, staff considers the
entire body of plans and regulations for land development. Standards which prevent or
mitigate possible negative impacts are incorporated in many locations in the municipal code
but are principally in Chapter 38, Unified Development Code. References in the text of this
report to Articles, Divisions, or in the form xx.xxx.xxx are to the Bozeman Municipal Code.
Project Background
Originally there was a single household dwelling on each parcel (1801 and 1805 Willow
Way). Over the years the owner has constructed additional units on each parcel without
obtaining permits from the county. Over the years, two additional units were constructed on
1801 Willow Way and three additional units were constructed on 1805 Willow Way, all
without the benefits of permits. The original 1,000 gallon septic system on 1801 Willow Way
was never upgraded to handle the added capacity of the additional units. The septic system
eventually failed from the overload, and the owner alerted the County Health Department
that sewage was regularly backing up into the house. The owner had to pump the tank on a
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Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 3 of 30
regular basis to prevent it from overflowing. The property owner requests approval to
connect with the city sewer system as soon as possible. Both parcels have access to the
existing city sewer system along Willow Way and Kagy Boulevard that is less than 100 feet
from each parcel. The County Health Department is working with the property owner to
remediate the hazardous situation while city planning staff is moving forward to process the
annexation and zoning request to allow for immediate connection with city sanitation
services and water system.
In determining whether the criteria applicable to this application are met, Staff considers the
entire body of plans and regulations for land development. Standards which prevent or
mitigate possible negative impacts are incorporated in many locations in the municipal code
but are principally in Chapter 38, Unified Development Code. References in the text of this
report to Articles, Divisions, or in the form xx.xxx.xxx are to the Bozeman Municipal Code.
Alternatives
1. Approve the application;
2. Recommend modifications to the requested zoning;
3. Deny the application based on findings of non-compliance with the applicable criteria
contained within the staff report; or
4. Open and continue the public hearing on the application, with specific direction to staff
or the applicant to supply additional information or to address specific items.
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Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 4 of 30
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Unresolved Issues ............................................................................................................... 2
Project Summary ................................................................................................................. 2
Alternatives ......................................................................................................................... 3
SECTION 1 - MAP SERIES: ................................................................................................... 5
SECTION 2 - RECOMMENDED TERMS OF ANNEXATION ............................................ 9
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT... 12
SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS ...................................... 12
Annexation ........................................................................................................................ 12
Zone Map Amendment ..................................................................................................... 12
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS ................................ 13
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS ........... 19
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 27
APPENDIX A - NOTICING AND PUBLIC COMMENT .................................................... 28
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING ................... 28
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF ............................ 29
APPENDIX D – ADVISORY COMMENTS......................................................................... 29
FISCAL EFFECTS ................................................................................................................. 30
ATTACHMENTS ................................................................................................................... 30
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Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
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SECTION 1 - MAP SERIES:
Map 1: Project Vicinity Map
Fowler Lane 19th AVE Subject Property
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Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 6 of 30
Map 2: BCP 2020 Future Land Use Map
Urban Neighborhood
Subject
Property
Community
Commercial
Mixed Use
Community
Commercial
Mixed Use
Urban
Neighborhood
Residential
Mixed Use
Residential
Mixed Use Willow Way 56
Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 7 of 30
Map 3: Existing City Zoning
Res. Office
Subject
Property
Subject
Property Willow Way 57
Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 8 of 30
Map 4: Applicant Proposed Zoning Map
REMU
R-4 Subject
Property
Kagy Boulevard Willow Way 58
Staff Report for the 1801 & 1805 Willow Way Annexation and ZMA, Application 23016
Page 9 of 30
SECTION 2 - RECOMMENDED TERMS OF ANNEXATION
The following terms of annexation are recommended to enable the application to comply
with the City’s Annexation Policy and the requirements of state law for the provision of
services.
Recommended terms of annexation:
1. The documents and exhibits to formally annex the subject property must be identified as
the 1801 & 1805 Willow Way Annexation.
2. An Annexation Map, titled 1801 & 1805 Willow Way Annexation Map with a legal
description of the property and including any adjoining un-annexed rights-of-way and/or
street access easements for Willow Way and Kagy Boulevard must be submitted by the
applicant for use with the Annexation Agreement. The map must be supplied as a PDF
for filing with the Annexation Agreement at the County Clerk & Recorder, and a digital
copy for the City Engineer’s Office. This map must be acceptable to the Director of
Transportation and Engineering and City Engineers Office, and must be submitted with
the signed Annexation Agreement.
3. The applicant must execute all contingencies and terms of said Annexation Agreement
with the City of Bozeman within 60 days of the distribution of the annexation agreement
from the City to the applicant or annexation approval shall be null and void.
4. The Annexation Agreement must include the following notices:
a. The Annexation Agreement must include notice that, prior to development, the
applicant will be responsible for preparing a storm water master plan in
conjunction with future development. The storm water master plan shall address
maintenance and operations until and unless the City affirmatively assumes
responsibility for maintenance and operations of stormwater facilities within the
area of the annexation.
b. The Annexation Agreement must include notice that there is no right, either
granted or implied, for Landowner to further develop any of the Property until it
is verified by the City that the necessary municipal services are available to the
property.
c. The Annexation Agreement must include notice that, prior to development, the
applicant will be responsible for installing any facilities required to provide full
municipal services to the properties in accordance with the City of Bozeman's
infrastructure master plans and all City policies that may be in effect at the time of
connection and development.
d. The Annexation Agreement must include notice that utility easements may be
required to be provided by the landowner at the time of development to ensure
necessary municipal services are available to the property.
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e. The Annexation Agreement must include notice that charges and assessments
may be required after completion of annexation to ensure necessary municipal
services are available to the property.
f. The Annexation Agreement must include notice that the City will assess system
development and impact fees in accordance with Montana law and Chapter 2,
Article 6, Division 9, Bozeman Municipal Code.
5. All procedural terms necessary to establish the Annexation Agreement in conformance
with state law and municipal practice will be included with the final Annexation
Agreement.
6. The applicant must properly abandon the existing on-site septic tanks and leach fields
prior to connection to the City sanitary sewer system. The applicant must report the
abandonment to the City Water and Sewer Superintendent for inspection, and the
applicant must report the abandonment to the Gallatin City County Health Department. In
addition to abandonment of the septic tank and leach field, the applicant must
demonstrate that the sanitary sewer service to the septic tank has been completely
disconnected from the old septic system prior to connection to the City sanitary sewer
system.
7. The applicant must completely disconnect the on-site well from the house prior to
connection to the City water system to protect the City’s system from cross
contamination. The applicant must contact the City Water and Sewer Superintendent to
inspect the disconnection prior to connection of water service from the house to the City
water system.
8. If they do not already exist the applicant must provide and file with the County Clerk and
Recorder's office executed Waivers of Right to Protest Creation of Special Improvement
Districts (SIDs) for the following as part of the Annexation Agreement:
a. Street improvements to Kagy Boulevard between South 19th and South 11th
Avenue, design and engineering, paving and subsurface improvements, curb and
gutter, sidewalk and stormwater drainage facilities, and fiber optic conduit.
b. Intersection improvements at South 19th Avenue and Kagy Boulevard, including
lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm
drainage.
c. Intersection improvements at South 11th Avenue and Kagy Boulevard, including
lighting, signalization/channelization, paving, curb/gutter, sidewalk, and storm
drainage.
The document filed must specify that in the event an SID is not utilized for the
completion of these improvements, the developer agrees to participate in an alternate
financing method for the completion of the improvements on a fair share, proportionate
basis as determined by square footage of property, taxable valuation of the property,
traffic contribution from the development, or a combination thereof. The applicant must
provide a copy of the SID waiver prior to the adoption of Resolution of Annexation.
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9. ROW Term 1, Kagy Boulevard is classified as a primary arterial in the Bozeman
Transportation Master Plan (TMP), which has a minimum right-of-way (ROW) width.
The applicant must provide their respective portion of Kagy Boulevard ROW so that
there is a total of 60 feet ROW from the centerline of the existing ROW and to the north
as a public street and utility easement where Kagy Boulevard is adjacent to the property.
Any easement necessary to create the full width of 60 foot public street and utility
easement must be provided prior to the adoption of Resolution of Annexation.
10. No water rights or a cash-in-lieu of water rights will be required with this annexation.
Upon future development, compliance with the water adequacy is required.
11. Sewer Services: The applicant of 1801 Willow Way, at its own expense, must connect
any future sanitary sewer service to the 10-inch PVC sewer main located in either Kagy
Boulevard or Willow Way. The applicant must properly abandon the existing on-site
septic and leach field prior to connection to the City sanitary sewer system.
12. Sewer Services: The applicant of 1805 Willow Way, at its own expense, may connect
future sanitary sewer service from either the 10-inch PVC sewer main located in either
Kagy Boulevard or Willow Way. The applicant must properly abandon the existing on-
site septic tank and leach field prior to connection to the City sanitary sewer system.
13. Water Main Extension and Services: The applicant, at its own expense, must extend a
City standard water main (8-inch diameter) within the public street and utility easement
located within the Willow Way right-of-way in order to provide future water service to
both 1801 and 1805 Willow Way. The water main extension must extend to the northern
property boundary of 1801 Willow Way and must include the installation of a City
standard fire hydrant at the end of the northern property boundary. Both 1801 and 1805
Willow Way must connect to the Willow Way water main extension to take water
service. Water service must not be taken from the 12-inch main located in Kagy
Boulevard. The applicant must completely disconnect the on-site well from the house
prior to connection to the City water system to protect the City’s system from cross
contamination.
14. The land owners and their successors must pay all fire, street, water, and sewer impact
fees at the time of connection; and for future development, as required by Chapter 2.
Bozeman Municipal Code, or as amended at the time of application for any permit listed
herein.
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP
AMENDMENT
Please note that these contingencies are necessary for the City to complete the proc ess of the
proposed amendment. These contingencies only apply in the event that the related annexation
request has previously been approved.
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Recommended Contingencies of Approval:
1. The applicant must submit a zone amendment map, titled 1801 & 1805 Willow Way
Zone Map Amendment, acceptable to the Director of Transportation and Engineering,
as a PDF which will be utilized in the preparation of the Ordinance to officially
amend the City of Bozeman Zoning Map. Said map shall contain a metes and bounds
legal description of the perimeter of the subject property including adjacent rights-of-
way for Kagy Boulevard and Willow Way, and total acreage of the property.
2. The Ordinance for the Zone Map Amendment shall not be drafted until the applicant
provides an editable metes and bounds legal description prepared by a licensed
Montana surveyor.
3. That all documents and exhibits necessary to establish the amended municipal zoning
designation of R-4 (Residential High Density) shall be identified as the 1801 & 1805
Willow Way Zone Map Amendment.
4. All required materials shall be provided to the Department of Community
Development within 60 days of a favorable action of the City Commission or any
approval shall be null and void.
SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS
Annexation
Having considered the criteria established for an annexation, the Development Review
Committee (DRC) recommends approval of the requested annexation.
The City Commission will hold a public meeting on the annexation on June 6, 2023. The
meeting will begin at 6 p.m. Instructions on joining the meeting will be included on the
meeting agenda.
Zone Map Amendment
Having considered the criteria established for a zone map amendment, the Staff recommends
approval as submitted. The Zone Map Amendment (ZMA) is in conjunction with an
annexation request. Staff’s recommendation and staff responses are predicated on
approval of the annexation, application 23016.
The Development Review Committee (DRC) considered the amendment. The DRC did not
identify any infrastructure or regulatory constraints that would impede the approval of the
application.
The Community Development Board acting in their capacity as the Zoning Commission will
hold a public hearing on this ZMA on June 5, 2023 and will forward its recommendation to
the City Commission on the zone map amendment.
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The City Commission will hold a public hearing on the zone map amendment on June 6,
2023. The meeting will begin at 6 p.m. Instructions on joining the meeting will be included
on the meeting agenda.
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS
In considering applications for approval of the requested annexation, the advisory boards and
City Commission shall consider the following:
Commission Resolution No. 5076 Criteria
Commission Resolution No. 5076 Goals
Goal 1: The City of Bozeman encourages annexations of land contiguous to the
City.
Criterion Met. The property in question is contiguous to the City limit to the south along
Kagy Blvd right of way. In addition, it is wholly surrounded by the City, see Goal 2 below.
Sanitary sewer and water connections are available less than 100 feet awa y along Willow
Way and Kagy Boulevard.
Goal 2: The City encourages all areas that are totally surrounded by the City to annex.
Criterion Met. Properties adjacent to the subject site are in the county; however the site and
all adjacent properties are wholly surrounded by the City (see Map Series in Section 1).
Municipal services are available for immediate connection.
Goal 3: The City encourages all properties currently contracting with the City for City
services such as water, sanitary sewer, and/or fire protection to annex.
Criteria Not Met. While the properties are currently not contracting with the City, the
applicant is ready to connect to the sewer and water main upon approval. The existing septic
system is failing. The applicant has indicated the desire to connect with City services as soon
as possible. Connection with the sanitary sewer and water system is required per the terms of
annexation (See Terms of Annexation #11 & 13).
Goal 4: The City of Bozeman requires annexation of all land proposed for development
lying within the existing and planned service area of the municipal water and sewer
systems as depicted in their respective facility plans, any land proposed for
development that proposes to utilize municipal water or sewer systems.
Criterion Met. The subject property lies within the planned service area of the municipal
water and sewer services. The applicant will connect with municipal water and sewer
services as soon possible following approval. The subject site will be required to utilize
municipal water or sewer systems as discussed in Recommended Terms of Annexation #11
and #13 above.
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Goal 5: The City encourages annexations within the urban area identified on the future
land use map in the current Bozeman Growth Policy.
Criterion Met. As shown in Section 1, the subject property is planned as ‘Urban
Neighborhood’ and is within the urban area of the growth policy. See the discussion under
Criterion A of Section 6 of the report for more information on the growth policy.
Goal 6: The City of Bozeman encourages annexations to make the City boundaries
more regular rather than creating irregular extensions which leave unannexed gaps
between annexed areas or islands of annexed or unannexed land.
Criterion Met. The proposed annexation is wholly surrounded by the City. Adjacent
properties remain in the county, however, over time, parcels are choosing to annex into the
City. The second parcel west of the site recently annexed into the city. Annexing this subject
site consisting of two parcels would help fill in a ‘gap’ that is wholly surrounded by the city.
Goal 7: The City of Bozeman encourages annexations which will enhance the existing
traffic circulation system or provide for circulation systems that do not exist at the
present time.
Criterion Met. The subject property will provide additional right of way for Kagy Boulevard,
a designated principal arterial upon future development. In the Capital Improvement Plan
(CIP) Project Report for Fiscal Years 2024-2028, an identified project is scheduled for FY25
& FY26 to reconstruct Kagy Boulevard to add lanes, bike lanes and a sidewalk. Easements or
future easements for Kagy Boulevard are required by the terms of annexation (see Terms of
Annexation #9 above).
Goal 8: The City prefers annexation of parcels of land larger than five (5) acres in size,
but will allow annexation of smaller parcels if factors such as topographic limitations,
sanitary disposal needs, fire access, maintenance of public facilities, etc., justify a
smaller annexation.
Criterion Met. The subject property is less than five (5) acres in size, however, one of the
parcels has a failing onsite septic system creating a hazardous condition for those living in
the existing units. The applicant is requesting to connect with city services including the
sanitary sewer and water systems as soon as possible to ensure public health and safety.
Therefore, the criteria is met due to sanitary disposal needs.
Goal 9: The City seeks to obtain water rights adequate for future development of the
property with annexation.
Criterion Met. After annexation, the subject property will be required to connect with the
City water main as detailed in terms of annexation (see Terms of Annexation #13). The
landowner will consent to this requirement by signature on the annexation agreement. Upon
future development compliance with the water adequacy is required.
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Goal 10: The City of Bozeman encourages annexations for City provision of clean
treated water and sanitary sewer.
Criterion Met. The subject property is located within the City’s planned water and sewer
service area. See Goal 4 above. Upon annexation approval, the subject site will connect with
the sanitary sewer system and city water (see Terms of Annexation #11 & #13).
Per Term of Annexation #11 & #13, the annexation requires the applicant to design
extensions of services to meet the City’s adopted infrastructure standards. These include
provisions for minimum water pressure and volumes, adequate sewer flows by volume,
gravity flow of sewers, and other standards necessary to protect public health and safety and
ensure functional utilities.
Resolution No. 5076 Policies
Policy 1: Annexations must include dedication of all easements for rights-of-way for
collector and arterial streets, adjacent local streets, public water, sanitary sewer, or
storm or sewer mains, and Class I public trails not within the right of way for arterial
or collector streets. Annexations must also include waivers of right to protest the
creation of special or improvement districts necessary to provide the essential services
for future development of the City.
Criterion Met. As discussed in Section 5, Goal 7, additional right of way is being included
for Kagy Boulevard. The Recommended Terms of Annexation include requirements for this
right of way provision (see Terms of Annexation #9). Waivers of right to protest the creation
of special or improvement districts is listed in Terms of Annexation #8 as well.
Policy 2: Issues pertaining to master planning and zoning must be addressed prior to
or in conjunction with the application for annexation.
Criterion Met. The subject property is planned for Urban Neighborhood. No change to the
growth policy is required. The application includes a request for initial zoning of R-4. See the
zone map amendment section of this report for analysis of the zone map amendment criteria.
Policy 3: The application for annexation must be in conformance with the current
Bozeman Growth Policy. If a Growth Policy Amendment is necessary to accommodate
anticipated uses, the amendment process must be initiated by the property owner and
completed prior to any action for approval of the application for annexation.
Criterion Met. The property is designated “Urban Neighborhood” on the future land use map.
No growth policy amendment is required. See discussion under zone map amendment
Criterion A.
Policy 4: Initial zoning classification of the property to be annexed will be determined
by the City Commission, in compliance with the Bozeman Growth Policy and upon a
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recommendation of the City Zoning Commission, simultaneously with review of the
annexation petition.
The City Zoning Commission will review the requested zoning district designation on June 5,
2023. The Community Development Board’s recommendation, acting in their capacity as the
Zoning Commission, will be passed along to the City Commission for review and
consideration along with the annexation request on June 6, 2023.
Policy 5: The applicant must indicate their preferred zoning classification as part of the
annexation petition.
Criterion Met. The applicant has requested a zoning designation of R-4, Residential High
Density district. See Section 6 of this report for analysis of the requested zoning.
Policy 6: Fees for annexation processing will be established by the City Commission.
Criterion Met. The appropriate application processing and review fees accompanied the
application.
Policy 7: It is the policy of the City that annexations will not be approved where
unpaved county roads will be the most commonly used route to gain access to the
property unless the landowner proposes a method to provide for construction of the
road to the City’s street standards.
Criterion Met. The subject property is accessed on the west by Willow Way which is a paved
local street. Additional access to the site is by Kagy Boulevard which is a paved principal
arterial. The applicant is required to provide an easement for Kagy Boulevard to create the
full required street width prior to adoption of Resolution of Annexation (see Terms of
Annexation #9).
Policy 8: Prior to annexation of property, the City will require the property owner to
acquire adequate and usable water rights, or an appropriate fee in lieu thereof, in
accordance with Section 38.410.130 of the municipal code, as amended.
Criterion Met. After annexation, the subject property will be required to connect with the
City water main as detailed in terms of annexation (see Terms of Annexation #13). The
landowner will consent to this requirement by signature on the annexation agreement. No
water rights or a cash-in-lieu of water rights will be required with this annexation. Upon
future development, compliance with the water adequacy is required.
Policy 9: Infrastructure and emergency services for an area proposed for annexation
will be reviewed for the health, safety and welfare of the public and conformance with
the City’s adopted facility plans. If the City determines adequate services cannot be
provided to ensure public health, safety and welfare, the City may require the property
owner to provide a written plan for accommodation of these services, or the City may
reject the petition for annexation. Additionally, the parcel to be annexed may only be
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provided sanitary sewer service via the applicable drainage basin defined in the City
Wastewater Collection Facilities Plan.
Criterion Met. The area proposed for annexation is surrounded by the City. City
infrastructure and emergency services can be extended to the subject property. The property
is located adjacent to existing service areas including the Hyalite Fire District. The property
is located near the City’s water and sewer service areas located along Willow Way and Kagy
Boulevard. Expansion of municipal utility and park facilities to serve the subject site will
occur immediately following approval of annexation. 1801 Willow Way has a failing septic
system creating a hazardous condition for those living in the existing units. To ensure the
safety and health of existing and future tenants, the applicant is requesting to connect with
city services including the sanitary sewer and water systems as soon as possible. Present
emergency services are provided by Hyalite Fire District and the Gallatin County Sherriff.
Policy 10: The City may require annexation of any contiguous property for which city
services are requested or for which city services are currently being provided. In
addition, any person, firm, or corporation receiving water or sewer service outside of
the City limits is required as a condition of initiating or continuing such service, to
consent to annexation of the property serviced by the City. The City Manager may
enter into an agreement with a property owner for connection to the City’s sanitary
sewer or water system in an emergency conditioned upon the submittal by the property
owner of a petition for annexation and filing of a notice of consent to annexation with
the Gallatin County Clerk and Recorder’s Office. The contract for connection to city
sewer and/or water must require the property owner to annex or consent to
disconnection of the services. Connection for purposes of obtaining City sewer services
in an emergency requires, when feasible as determined by the City, the connection to
City water services.
Criterion Met. Currently there are multiple household dwellings on both parcels, one of
which has a failing septic system creating a hazardous situation for existing tenants. The City
is requiring immediate connection with the sanitary sewer system and water system if
approved (see Terms of Annexation #11 & #13). Water and sewer is readily available about
100 feet from the subject site. The owner will be required to abandon the well and septic
systems on 1801 Willow Way (See Terms of Annexation #6). The owner will have an option
of connecting 1805 Willow Way to the sanitary sewer system or retaining the existing septic
system that is functional (See Terms of Annexation #12).
Policy 11: The annexation application shall be accompanied by mappin g to meet the
requirements of the Director of Public Works. Where an area to be annexed can be
entirely described by reference to a certificate of survey or subdivision plat on file with
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the Gallatin County Clerk and Recorder the mapping may be waived by the Director of
Public Works.
Criterion Met. Mapping to meet the requirements of the Director of Transportation and
Engineering must be provided with the Annexation Agreement. Mapping requirements are
addressed in Recommended Term of Annexation 2. The map must include adjacent right of
way and therefore cannot be described solely by reference to platted lands.
Policy 12: The City will assess system development/ impact fees in accordance with
Montana law and Chapter 2, Article 6, Division 9, Bozeman Municipal Code.
Neutral. The annexation does not require immediate payment of fees. The annexation
agreement will provide notice of obligations to pay impact fees at times of triggers as
required in ordinance. See Term of Annexation #4.
Policy 13: Public notice requirements: Notice for annexation of property must be
coordinated with the required notice for the zone map amendment required with all
annexation. The zone map amendment notice must contain the materials required by
38.220.410, BMC.
Criterion Met. Notices of the public hearing have been mailed, published in the Bozeman
Daily Chronicle twice, and posted on the site as required. See Appendix A for more details.
Policy 14: Annexation agreements must be executed and returned to the City within 60
days of distribution of the annexation agreement by the City, unless another time is
specifically identified by the City Commission.
Criterion Met. This policy will be implemented only if the Commission acts to grant
approval. If the application is denied then no annexation agreement will be necessary.
Policy 15: When possible, the use of Part 46 annexations is preferred.
Criterion Met. This annexation is being processed under Part 46 provisions.
Policy 16: Where a road improvement district has been created, the annexation does
not repeal the creation of the district. The City will not assume operations of the district
until the entirety of the district has been annexed. Any funds held in trust for the
district will be used to benefit the district after transfer to the City. Inclusion within a
district does not lessen the obligation to participate in general city programs that
address the same subject.
Neutral. No road improvement district is associated with this application.
Policy 17: The City will notify the Gallatin County Planning Department and Fire
District providing service to the area of applications for annexation.
Criterion Met. The necessary agencies were notified and provided copies of the annexation
and zoning application information.
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Policy 18: The City will require connection to and use of all City services upon
development of annexed properties. The City may establish a fixed time frame for
connection to municipal utilities. Upon development, unless otherwise approved by the
City, septic systems must be properly abandoned and the development connected to the
City sanitary sewer system. Upon development, unless otherwise approved by the City,
water wells on the subject property may be used for irrigation, but any potable uses
must be supplied from the City water distribution system and any wells disconnected
from structures. The property owner must contact the City Water and Sewer
Superintendent to verify disconnects of wells and septic systems.
Criterion Met. The applicant is requesting immediate connection with city sanitary sewer and
water services if approved. The City is requiring immediate connection with the sanitary
sewer system and water system if approved (see Terms of Annexation #11 & #13). If
approved, the owner will be required to abandon the well and septic system on 1801 Willow
Way (See Terms of Annexation #6 & #13).
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND
FINDINGS
In considering applications for approval under this title, the advisory boards and City
Commission must consider the following criteria (letters A-K). As an amendment is a
legislative action, the Commission has broad latitude to determine a policy direction. The
burden of proof that the application should be approved lies with the applicant.
A zone map amendment must be in accordance with the growth policy (criteria A) and be
designed to secure safety from fire and other dangers (criteria B), promote public health,
public safety, and general welfare (criteria C), and facilitate the provision of transportation,
water, sewerage, schools, parks and other public requirements (criteria D). Therefore, to
approve a zone map amendment the Commission must find Criteria A-D are met.
In addition, the Commission must also consider criteria E-K, and may find the zone map
amendment to be positive, neutral, or negative with regards to these criteria. To approve the
zone map amendment, the Commission must find the positive outcomes of the amendment
outweigh negative outcomes for criteria E-K.
In determining whether the criteria are met, Staff considers the entire body of plans and
regulations for land development. Standards which prevent or mitigate negative impacts are
incorporated throughout the entire municipal code but are principally in Chapter 38, Unified
Development Code. The Bozeman Community Plan 2020 (BCP2020), pages 73-78, describe
how the City applies these criteria.
Section 76-2-304, MCA (Zoning) Criteria
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A. Be in accordance with a growth policy.
Criterion Met. The Bozeman Community Plan (BCP) 2020 (External Link), Chapter 5, p. 73,
in the section titled Review Criteria for Zoning Amendments and Their Application, discusses
how the various criteria in 76-2-304 MCA are applied locally. Application of the criteria
varies depending on whether an amendment is for the zoning map or for the text of Chapter
38, BMC. The first criterion for a zoning amendment is accordance with a growth policy.
Future Land Use Map
The proposed amendment is a change to the zoning map. Therefore, it is necessary to analyze
compliance with the future land use map. Chapter 3 of the BCP 2020 addresses the future
land use map. The introduction Chapter 3 discusses the importance of the chapter. Following
are some excerpts.
“Future land use is the community’s fundamental building block. It is an illustration of
the City’s desired outcome to accommodate the complex and diverse needs of its
residents.”
“The land use map sets generalized expectations for what goes where in the community.
Each category has its own descriptions. Understanding the future land use map is not
possible without understanding the category descriptions.”
The area of this application is within the anticipated growth area of the City. As shown on the
maps in Section 1, on the excerpt of the current future land use map, the property is designated
as Urban Neighborhood. The Urban Neighborhood designation description reads:
“This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. Large areas of any single type of housing are discouraged. In
limited instances, an area may develop at a lower gross density due to site constraints
and/or natural features such as floodplains or steep slopes. Complementary uses such
as parks, home-based occupations, fire stations, churches, schools, and some
neighborhood-serving commerce provide activity centers for community gathering and
services. The Urban Neighborhood designation indicates that development is expected
to occur within municipal boundaries. This may require annexation prior to
development.
Applying a zoning district to specific parcels sets the required and allowed density.
Higher density residential areas are encouraged to be, but are not required or
restricted to, proximity to commercial mixed use areas to facilitate the provision of
services and employment opportunities without requiring the use of a car.”
The correlation between the future land use map of the growth policy and the zoning districts
is presented in Table 4 of the Bozeman Community Plan 2020. As shown in the following
Correlation with Zoning Table excerpt, the R-4 district is an implementing district of the
Urban Neighborhood category.
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Goals and Policies
A zoning amendment is also evaluated against the goals and policies of the BCP 2020.
Most of the goals and policies are not applicable to this application. Relevant goals and
objectives have been identified by staff. Conflict with the text of the growth policy hasn’t
been identified.
The Short Term Action list on page 63 of the BCP 2020 describes 14 items to implement
the growth policy. The first two relate to direct changes to the zoning map in support of listed
goals and objectives. These include increasing the intensity of zoning districts in already
developed areas. Beginning on page 71 of the BCP 2020 in the section titled Zoning
Amendment Review, the document discusses how the City implements zoning for new areas,
amendments to areas, and revisions to existing text. This section includes a discussion of
when the City may initiate a zoning change to a more intensive district to increase
development opportunities. This section demonstrates that the City, as a matter of policy, is
supportive of more intensive zoning districts and development. It is inconsistent with this
approach to zone at annexation for lower intensities than what infrastructure and planning
documents will support. This policy approach does not specify any individual district but
does lean towards the more intensive portion of the zoning district spectrum.
N-1.1 Promote housing diversity, including missing middle housing.
N-1.3 Revise the zoning map to lessen areas exclusively zoned for single-type housing.
Goal N-3: Promote a diverse supply of quality housing units.
The requested R-4 district supports all three of the above as it authorizes a wide range of
housing types, lot sizes, and services to create a mix of housing. The uses presently on the
site are allowed by the R-4 district.
Goal DCD-1: Support urban development within the City.
The proposed zoning is occurring in conjunction with an annexation. Currently within the
subject site are multiple units on two parcels. The applicant requests immediate connection
with city services to remediate a hazardous condition on the subject site. Any future
development will be required to occur at urban densities and will be within the City.
DCD-1.11 Pursue annexations consistent with the future land use map and adopted facility
plans for development at urban intensity.
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DCD-2.2 Support higher density development along main corridors and at high visibility
street corners to accommodate population growth and support businesses.”
1805 is on the corner of Kagy Boulevard and Willow Way. 1801 Willow Way is directly
north of 1805. The 2017 Transportation Master Plan has Kagy Boulevard as a designated
primary arterial street and Willow Way as a local street that connects to Kagy on the north
side. Both streets are paved. In the Capital Improvement Plan (CIP) Project Report for Fiscal
Years 2024-2028, an identified project is scheduled for FY25 & FY26 to reconstruct Kagy
Boulevard to add lanes, which will increase capacity, bike lanes and a sidewalk. Easements
or future easements for Kagy Boulevard are required as part of this application. Should the
owner decide to develop the site further there is a street network already and close to existing
municipal services.
The proposed zoning is consistent with the future land use map and is within the current
facilities plans.
Goal RC-3: Collaborate with Gallatin County regarding annexation and development
patterns adjacent to the City to provide certainty for landowners and taxpayers.
Gallatin County has been notified of the proposed annexation. The County’s land use
plan for the area calls for higher intensity residential development. The Triangle Community
Plan created by both Gallatin County and the City of Bozeman supports annexation of
properties proposed for development within water and sewer service areas, see Section 4.8.
Although this site is outside of the Triangle planning area the principle is still valid.
RC-3.3 Prioritize annexations that enable the incremental expansion of the City and its
utilities.
The property in question, while not adjacent to a parcel in the city, is wholly surrounded
by the City. The subject site is adjacent to county parcels within Beatty’s Subdivision and
Beatty’s Alder Court Subdivision. A parcel two doors west of 1805 Willow Way recently
annexed into the city in 2022. The subject site is adjacent to areas served with water and
sewer and extensions to service this site are in the water and sewer facility plans.
RC-3.4 Encourage annexation of land adjacent to the City prior to development and
encourage annexation of wholly surrounded areas.
Refer to previous response (RC – 3.3 response)
B. Secure safety from fire and other dangers.
Criterion Met. Currently there are multiple household dwellings on both parcels, one of
which has a failing septic system creating a hazardous situation for existing tenants. If
approved, the City is requiring immediate connection with the sanitary sewer system and
water system. The owner will be required to abandon the well and septic system on 1801
Willow Way. This will alleviate the current hazardous situation. The existing buildings are
constructed of unknown quality, fire, and safety measures. Upon future development, any
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removal and replacement must meet the development standards of the City. The property is
not within any delineated floodplain nor does it have other known natural hazards. Upon
annexation the subject property will be provided with City emergency services including
police, fire and ambulance. Future development of the property will be required to conform
to all City of Bozeman public safety, building and land use requirements. No obstacles have
been identified in extending service to this parcel.
C. Promote public health, public safety, and general welfare.
Criterion Met. The proposed zoning designation will promote general welfare by
implementing the future land use map and identified policies in the BCP 2020. Public health
and safety will be positively affected by requiring existing development to connect to
municipal sanitary sewer and water systems, which will prevent further damage to the
property and alleviate the hazardous condition onsite. Additionally, it will prevent
groundwater pollution and depletion by wells and septic systems.
Should the owner decide to develop the site further, infrastructure needs will be evaluated
through the applicable review process. Development proposals go through extensive review
to ensure compliance with the City’s zoning and building codes when submitting for
planning and building permits. As noted in Criterion B, further development and
redevelopment must be in accordance with modern building, access, stormwater, pedestrian
circulation, ingress and egress to the site, and full connection to the greater transportation
network for users ensuring the promotion of public health, safety and general welfare.
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Criterion Met. This property is included in future planning areas for transportation, parks,
sewer, and water. The City conducts extensive planning for municipal transportation, water,
sewer, parks, and other facilities and services provided by the City. The adopted plans allow
the City to consider existing conditions and identify enhancements needed to provide
additional service needed by existing and future development. The City implements these
plans through its capital improvements program that identifies individual projects, project
construction scheduling, and financing of construction. As noted in the BCP2020, page 74,
the details of development are generally unknown at the time of annexation. Therefore,
reliance on the adopted plans and implementation through subsequent development is
reasonable if the amendment is consistent with planned system expansion.
As stated in 38.300.020.C, the designation of a zoning district does not guarantee approval of
new development until the City verifies the availability of needed infrastructure. All z oning
districts in Bozeman enable a wide range of uses and intensities. At time of future subdivision
or site plan review the need for individual services can be more precisely determined. No
subdivision or site plan is approved without demonstration of adequate capacity.
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38.300.020.C, “Placement of any given zoning district on an area depicted on the zoning
map indicates a judgment on the part of the city that the range of uses allowed within that
district are generally acceptable in that location. It is not a guarantee of approval for any
given use prior to the completion of the appropriate review procedure and compliance with
all of the applicable requirements and development standards of this chapter and other
applicable policies, laws and ordinances. It is also not a guarantee of immediate
infrastructure availability or a commitment on the part of the city to bear the cost of
extending services.” See also comments under Criterion C.
E. Reasonable provision of adequate light and air.
Criterion Met. The R-4 zoning designation has requirements for setbacks, height, and lot
coverage which provide for the reasonable provision of adequate light and air. Any future
development of the property will be required to conform to City standards for setbacks,
building design, height, lot coverage, and buffering. The criterion is not about personal
preferences but about protection of public health and safety. The adopted standards address
protection of public health and safety.
In addition to the zoning standards, adopted building codes contain more detailed
requirements for air circulation, window placement, and building separation that further
ensure the intent of this criterion is satisfied.
F. The effect on motorized and non-motorized transportation systems.
Criterion Met. The proposed zoning will allow for a higher density of uses than is currently
allowed under Gallatin County zoning. Currently each site is allowed one single family
dwelling per parcel within Gallatin County. Such low-density development is inherently auto
dependent. The site, however, is presently occupied with multiple household dwellings
within walking distance to MSU making it a prime location for student and/or staff housing
for the university. The project site sits on the northwest corner of Kagy Boulevard (a
principal arterial street) and Willow Way (a local street). Future development under
Bozeman R-4 zoning may generate slightly more traffic, on foot, bicycle, or vehicle, than the
existing multi-household lots.
The subject property will provide additional right of way for Kagy Boulevard, a designated
principal arterial upon future development. In the Capital Improvement Plan (CIP) Project
Report for Fiscal Years 2024-2028, an identified project is scheduled for FY25 & FY26 to
reconstruct Kagy Boulevard to add lanes, bike lanes and a sidewalk from S. Willson Avenue
to 19th Avenue which will increase capacity. To meet the adopted standards of 38.400
(External Link), when a development is proposed, existing conditions will be considered and
additional on and off-site improvements will be determined to meet additional demand
expected from new development. The zoning amendment itself does not authorize any
construction nor change travel demand.
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G. Promotion of compatible urban growth.
Criterion Met. The intent of the R-4 zone is to provide for high density residential
development through a variety of housing types to serve the varying housing needs of the
community’s residents. The subject property is adjacent to low-density residential uses
within the county to the north, south and west and an undeveloped parcel within the county
limits east of the site. Spanning out about two parcels east, southwest, southeast, and east are
all within city limits. Lots west of the site have recently been rezoned to R-4, northwest is
zoned R-2, southwest of the site across Kagy Boulevard is an undeveloped lot zoned REMU,
southwest of the site across Kagy Boulevard is zoned R-4, and east is also zoned R-4. The
City’s zoning policy encourages continued development of mixed uses. Since the location of
the subject site is less than a quarter of a mile from MSU, the higher density housing could
provide essential housing options for students and staff.
In addition, this property is accessed by Kagy Boulevard which is designated as a principal
arterial in the Bozeman Transportation Master Plan (TMP) and Willow Way, a designated
local street providing ample access to a standard street network. The proposed zoning is in
accordance with the Bozeman Community Plan’s future land use designation of Urban
Neighborhood.
H. Character of the district.
Criterion Met. Section 76-2-302, MCA says “…legislative body may divide the municipality
into districts of the number, shape, and area as are considered best suited to carry out the
purposes [promoting health, safety, morals, or the general welfare of the community] of this
part.” Emphasis added.
This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts as
created by those standards remains intact.
As noted above, the City Commission has latitude in considering the geographical extents of a
zoning district. There are multiple household dwellings existing on both parcels. Application
of R-4 zoning district to the subject property will only slightly alter the existing moderate
density character of the subject property. The intent and purpose of the R-4 district is available
in 38.300.100 (External link) and in Appendix B of this report.
The City has defined compatible development as:
“The use of land and the construction and use of structures which is in
harmony with adjoining development, existing neighborhoods, and the goals
and objectives of the City's adopted growth policy. Elements of compatible
development include, but are not limited to, variety of architectural design;
rhythm of architectural elements; scale; intensity; materials; building siting;
lot and building size; hours of operation; and integration with existing
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community systems including water and sewer services, natural elements in the
area, motorized and non-motorized transportation, and open spaces and parks.
Compatible development does not require uniformity or monotony of
architectural or site design, density or use.”
The City has adopted many standards to identify and avoid or mitigate demonstrable negative
impacts of development. These will support the ability of future development in R-4 to be
compatible with adjacent development and uphold the residential character of the area. As
noted in the growth policy under discussion of this criterion a local street is considered an
adequate separation between different uses and districts to minimize impacts, see page 77.
The BCP2020, page 76, says “If the amendment is accompanying an annexation request there
is often a substantial change in use that will occur. In this case, the Commission must look at
what the growth policy recommends for the area, as there is less built context to provide
guidance.”
The existing character of the site has been changed over the years from single family household
to multiple household dwellings on each parcel. The proposed change in zoning will only
slightly modify the essential character of the property. As previously discussed, beyond the
adjacent properties within the county, there are R-4 zoning districts to the west, southeast, and
east of the subject site and REMU to the southwest across Kagy Boulevard. The site is near to
Montana State University and large scale development to the south and west. The zoning
amendment is in conjunction with annexation of the property. The requested zoning is
consistent with nearby high density and mixed use zoning. It is appropriate to zone the
annexing area consistent with the current growth policy designation of Urban Neighborhood
and other standards of the City. The amendment does not alter the allowed uses or standards
within the adjacent unzoned rural subdivision.
I. Peculiar suitability for particular uses.
Criterion Met. The property is within the City’s planning area for land use and utility
extensions. There is frontage for one of the parcels on Kagy Boulevard, a designated primary
arterial and frontage for the second parcel on Willow Way, a designated local street. The
subject property will provide additional right of way for Kagy Boulevard to the south
allowing future expansion for Kagy Boulevard. Municipal utilities and emergency services
can be extended to the area. The proposed R-4 zoning designation is suitable for the
property’s location and adjacent uses.
J. Conserving the value of buildings.
Criterion Met. There are multiple household dwellings on each parcel with associated
outbuildings on the subject property. The amendment is for the zoning map and does not alter
allowed uses on adjacent properties.
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K. Encourage the most appropriate use of land throughout the jurisdictional area.
Criterion Met. The proposed R-4 zoning designation will encourage the most appropriate use
of land as the property is near high density residential uses to the east, southwest, southeast,
and west. Upon approval, the applicant will immediately connect with available sewer and
water lines and will have access to all city services, including local emergency and fire
districts. Should the owner consider future higher intensity development within the
parameters of R-4 zoning, existing conditions will be considered and additional on and off-
site improvements will be determined to meet additional demand expected from new
development. There is currently access to the city’s services, including streets, thus the site is
able to support a higher intensity of uses as allowed within the R-4 zoning district.
Furthermore, the proposed R-4 zoning designation is consistent with the BCP 2020 future
land use map designation of “Urban Neighborhood”, is adjacent to substantial streets, and
education/employment/services as discussed in Criteria A
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.
The City will accept written protests from property owners against the proposal
described in this report until the close of the public hearing before the City
Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s)
of real property within the area affected by the proposal or by owner(s) of real property that
lie within 150 feet of an area affected by the proposal. The protest must be in writing and
must be signed by all owners of the real property. In addition, a sufficient protest must: (i)
contain a description of the action protested sufficient to identify the action against which the
protest is lodged; and (ii) contain a statement of the protestor's qualifications (including
listing all owners of the property and the physical address), to protest the action against
which the protest is lodged, including ownership of property affected by the action. Signers
are encouraged to print their names after their signatures. A person may in writing withdraw
a previously filed protest at any time prior to final action by the City Commission. Protests
must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230,
Bozeman, MT 59771-1230.
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APPENDIX A - NOTICING AND PUBLIC COMMENT
Notice was published in the Bozeman Daily Chronicle on May 13th and 20h, 2023. The notice
was posted on site and notices mailed by the applicant as required by 38.220 (External link)
and the required confirmation provided to the Planning Office. Notice was provided at least 15
and not more than 45 days prior to any public hearing.
As of the writing of this report on May 23, 2023, no written comments have been received on
this application. Any received comments will be made available through the City’s Laserfiche
(External link) system.
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING
Adopted Growth Policy Designation:
The property is designated as “Urban Neighborhood” in the Bozeman Community Plan 2020.
“This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. Large areas of any single type of housing are discouraged. In
limited instances, an area may develop at a lower gross density due to site constraints
and/or natural features such as floodplains or steep slopes. Complementary uses such
as parks, home-based occupations, fire stations, churches, schools, and some
neighborhood-serving commerce provide activity centers for community gathering and
services. The Urban Neighborhood designation indicates that development is expected
to occur within municipal boundaries. This may require annexation prior to
development.
Applying a zoning district to specific parcels sets the required and allowed density.
Higher density residential areas are encouraged to be, but are not required or restricted
to, proximity to commercial mixed use areas to facilitate the provision of services and
employment opportunities without requiring the use of a car.”
Proposed Zoning Designation and Land Uses:
The applicant has requested zoning of R-4, High Density Residential district whose intent is
to:
Residential high density district (R-4). The intent and purpose of the R-4 district is to
establish areas within Bozeman that are high density residential in character and to
provide options for a variety of housing types within the city with associated service
functions. These purposes are accomplished by:
1. Providing for minimum lot sizes in developed areas consistent with the
established development patterns and provide greater flexibility for clustering lots
and mixing housing types in areas with new development.
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2. Providing for a diverse array housing types, including single and multi-family
household dwellings that will serve the varying and changing needs of the
community.
3. Allowing office use as a secondary use that is measured by percentage of total
building area.
Use of this zone is appropriate for areas adjacent to mixed-use districts, commercial districts,
and/or served by transit to accommodate a higher density of residents in close proximity to jobs
and services.
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF
Owner/Applicant: 1805 Willow Way, LLC, P.O. Box 4730, Bozeman MT 59772
Representative: IMEG, 1143 Stoneridge Drive, Suite 11, Bozeman MT 59718
Report By: Elizabeth Cramblet, Associate Planner, Community Development Department
APPENDIX D – ADVISORY COMMENTS
The following informational items are provided for consideration during the design of
development on the site in the future. These comments are for information only at this time.
Compliance with noted requirements will occur during future subdivision or site plan review.
General
1. BMC 38.410.070 Municipal water, sanitary sewer and storm sewer systems – The
applicant is advised that 38.410.070 must be satisfied as part of the infrastructure design,
review, and submittal process.
Infrastructure Review – DSSP Plans and Specifications Review Policy A – Plans,
specifications, and submittals for the required water main extension must be submitted to
the City Engineer Department through the engineering Project Dox Portal
https://www.bozeman.net/services/development-center for infrastructure review.
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FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be changed by
this Annexation or Zone Map Amendment.
ATTACHMENTS
The full application and file of record was electronically submitted and can be viewed at Project
Information Portal (External link). Select ‘Project Documents’ and navigate to application
23016 to view the full application. Digital access is also available at the Community
Development Department at 20 E. Olive Street, Bozeman, MT 59715.
Application materials direct link:
Application 23016 (External link)
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Memorandum
REPORT TO:Community Development Board
FROM:Elizabeth Cramblet, Associate Planner
Chris Saunders, Community Development Manager
Erin George, Deputy Director of Community Development
Anna Bentley, Director of Community Development
SUBJECT:The Jarrett Zone Map Amendment Requesting Amendment of the City
Zoning Map to Change the Zoning on Two Parcels Totaling 39.9 Acres from R-
1 (Residential Low Density District) to R-2 (Residential Moderate Density
District) and on One 8.4 acre Parcel from R-1 (Residential Low Density
District) to PLI (Public Lands and Institutions District). The Project Site
Consists of Three Parcels that are Located on the Northwest Corner and a
Portion of the Southwest and Southeast Corner of W. Graf Street and S. 11th
Avenue, Application 23047.
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Having reviewed and considered the staff report, application materials,
public comment, and all information presented, I hereby adopt the findings
presented in the staff report for application 23047 and move to recommend
approval of the Jarrett Zone Map Amendment, with contingencies required
to complete the application processing.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:
The proposed project rezones two parcels totaling 39.9 acres from R-1
(Residential Low Density District) to R-2 (Residential Moderate Density
District) and one 8.4 acre parcel from R-1 (Residential Low Density District)
to PLI (Public Lands and Institutions District). The site is currently
undeveloped and there are no structures on the property. The site has been
annexed for many years. Future development plans have been submitted to
the city for this site as a preliminary plat subdivision application (23072) for
the eastern side of the property to include a total of 106 residential lots.
The property consists of three parcels, two of which are located in the
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northwest corner of S. 11th Avenue and Graf Street. A portion of the third
parcel is located in the bottom of the northwest corner of S. 11th Avenue
and Graf Street which also extends into the area just south of Graf Street on
the east and west side of 11th Avenue. S. 11 th Avenue and Graf Street are
both designated Collectors according to the Bozeman Area Transportation
Plan, 2017 Update.
The primary differences between the R-1 and R-2 districts are permitted uses
and dimensional standards. R-2 allows for two-household dwellings and two
attached townhouses and row-houses. R-2 has smaller lot size requirements
per dwelling, higher allowable floor area ratio, and two more feet in height.
The intent of the PLI district is to provide for major public and quasi-public
uses for the surrounding communities.
Nearby municipal zoning to the north and southeast is REMU (Residential
Emphasis Mixed Use). West and east of the parcel is R-1 (Residential Low
Density) with a small pocket of R-2 (Residential Moderate Density) north of
Graf Street. South of the site is the Alder Creek Subdivision zoned R-2
(Residential Moderate Density).
UNRESOLVED ISSUES:There are no identified conflicts on this application at this time.
ALTERNATIVES:1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended zoning;
3. Deny the application based on findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or
the applicant to supply additional information or to address specific items.
FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds
will be changed by this Annexation or Zone Map Amendment.
Attachments:
23047 Jarrett ZMA CDB SR.pdf
Report compiled on: May 23, 2023
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Page 1 of 21
23047, Staff Report for the Jarrett Zone Map Amendment
Public Hearing Date(s): Community Development Board acting in their capacity as the
Zoning Commission will hold a public hearing on June 5, 2023 at 6:00 pm.
City Commission public hearing will be held on June 6, 2023 at 6:00 pm.
Project Description : The Jarrett z one map amendment requesting amendment of the City
Zoning Map to change the zoning on two parcels totaling 39.9 acres from R-1
(Residential Low Density District) to R -2 (Residential Moderate Density District) and
on one 8.4 acre parcel from R -1 (Residential Low Density District) to PLI (Public
Lands and Institutions District).
Project Location: The site consists of three parcels that are on the northwest corner and a
portion of the southwest and southeast corner of W. Graf Street and S. 11 th Avenue
and more thoroughly described as Lot 1, Lot 2, and Lot 3 of Amended Plat of Lot 1,
Block 9, Allison Subdivision Phase 4A (Pl at Reference J -702) & the SE ¼ NW ¼
Section 24 of C.O.S. 252 & C.O.S. 792.
Recommendation: Meets standards for a pproval
Recommended Community Development Board Motion: Having reviewed and considered
the staff report, application materials, public comment, and all information presented,
I hereby adopt the findings presented in the staff report for application 23047 and move
to recommend approval of the Jarrett Zone Map Amendment , with contingencies
required to complete the application processing.
Recommended City Commission Zoning Motion: Having reviewed and considered the staff
report, application materials, public comment, recommendation of the Community
Development Board , and all information presented, I hereby adopt the findings
presented in th e staff report for application 23047 and move to approve the Jarrett
Zone Map subject to contingencies required to complete the application processing.
Report Date: May 23 , 2023
Staff Contact: Elizabeth Cramblet, Associate Planner
Lance Lehigh, City Engineer
Agenda Item Type: Action – Legislative
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23047 Staff Report for the Jarrett Zone Map Amendment Page 2 of 21
EXECUTIVE SUMMARY
Unresolved Issues
There are no identified conflicts on this application at this time.
Project Summary
The proposed project rezones two parcels totaling 39.9 acres from R-1 (Residential Low
Density District) to R-2 (Residential Moderate Density District) and one 8.4 acre parcel from
R-1 (Residential Low Density District) to PLI (Public Lands and Institutions District). The site
is currently undeveloped and there are no structures on the property. The site has been annexed
for many years. Future development plans have been submitted to the city for this site as a
preliminary plat subdivision application (23072) for the eastern side of the property to include
a total of 106 residential lots. Details about the subdivision application (23072) can be found
at the direct link: Application 23072 External Link).
The property consists of three parcels, two of which are located in the northwest corner of S.
11th Avenue and Graf Street. A portion of the third parcel is located in the bottom of the
northwest corner of S. 11th Avenue and Graf Street which also extends into the area just south
of Graf Street on the east and west side of 11th Avenue. S. 11th Avenue and Graf Street are both
designated Collectors according to the Bozeman Area Transportation Plan, 2017 Update.
The primary differences between the R-1 and R-2 districts are permitted uses and dimensional
standards. R-2 allows for two-household dwellings and two attached townhouses and row-
houses. R-2 has smaller lot size requirements per dwelling, higher allowable floor area ratio,
and two more feet in height. The intent of the PLI district is to provide for major public and
quasi-public uses for the surrounding communities.
Nearby municipal zoning to the north and southeast is REMU (Residential Emphasis Mixed
Use). West and east of the parcel is R-1 (Residential Low Density) with a small pocket of R-2
(Residential Moderate Density) north of Graf Street. South of the site is the Alder Creek
Subdivision zoned R-2 (Residential Moderate Density).
In determining whether the criteria applicable to this application are met, Staff considers the
entire body of plans and regulations for land development. Standards which prevent or mitigate
possible negative impacts are incorporated in many locations in the municipal code but are
principally in Chapter 38, Unified Development Code. References in the text of th is report to
Articles, Divisions, or in the form xx.xxx.xxx are to the Bozeman Municipal Code.
Application materials can be viewed on the City’s development map at the following link.
Application 23047 (External Link)
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23047 Staff Report for the Jarrett Zone Map Amendment Page 3 of 21
Public comments have been received by the production of this report.
Alternatives
1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended zoning;
3. Deny the application based on findings of non-compliance with the applicable criteria
contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or the applicant to
supply additional information or to address specific items.
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23047 Staff Report for the Jarrett Zone Map Amendment Page 4 of 21
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Unresolved Issues ............................................................................................................... 2
Project Summary ................................................................................................................. 2
Community Development Board (Zoning Commission) Summary ................................... 2
Alternatives ......................................................................................................................... 3
SECTION 1 - MAP SERIES .................................................................................................... 5
SECTION 2 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT..... 9
SECTION 3 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 9
SECTION 4 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS ........... 10
Section 76-2-304, MCA (Zoning) Criteria ....................................................................... 10
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 19
APPENDIX A - NOTICING AND PUBLIC COMMENT .................................................... 19
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING ................... 19
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF ............................ 20
FISCAL EFFECTS ................................................................................................................. 20
ATTACHMENTS ................................................................................................................... 20
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Page 5 of 21
SECTION 1 - MAP SERIES
Figure 1: Vicinity Map (2021 image)
Subject
Property
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23047 Staff Report for the Jarrett Zone Map Amendment Page 6 of 21
Figure 2: Future Land Use Designations (2021 image)
Industrial
Subject
Property
Urban
Neighborhood
Residential
Mixed Use
Public
Institutions
Residential
Mixed Use
Community
Commercial
Mixed Use
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23047 Staff Report for the Jarrett Zone Map Amendment Page 7 of 21
Figure 3: Current Zoning Map (2021 image)
PLI
Subject
Property
R-1
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Figure 4: Applicant Proposed Zoning Map
R-2
PLI
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Page 9 of 21
SECTION 2 - RECOMMENDED CONTINGENCIES OF ZONE MAP
AMENDMENT
Please note that these contingencies are necessary for the City to complete the proc ess of the
proposed amendment.
Recommended Contingencies of Approval:
1. That all documents and exhibits necessary to establish the amended municipal zoning
designation of PLI and R-2 shall be identified as the “Jarrett Zone Map Amendment”.
2. The applicant must submit a zone amendment map, titled “Jarrett Zone Map Amendment”,
acceptable to the Director of Transportation and Engineering, as a PDF which will be
utilized in the preparation of the Ordinance to officially amend the City of Bozeman Zoning
Map. Said map shall contain a metes and bounds legal description of the perimeter of the
subject property including adjacent rights-of-way, and total acreage of the property.
3. The Ordinance for the Zone Map Amendment shall not be drafted until the applicant
provides an editable metes and bounds legal description prepared by a licensed Montana
surveyor.
Advisory Comments for Future Development
1. The Allison Subdivision Phase 4A is located within the City’s Spring Creek Sewershed
Drainage Basin. The applicant is advised that a downstream sewer capacity issue exists
within the sewershed. Further analysis is needed to demonstrate adequate sanitary sewer
capacity for future development exists for the subject property. The applicant s hould
review future sewer capacities associated with the subject property with City Engineering
Staff.
SECTION 3 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a zone map amendment, the Staff recommends
approval as submitted. The Development Review Committee (DRC) considered the
amendment. The DRC did not identify any infrastructure or regulatory constraints that would
impede the approval of the application.
The Community Development Board acting in their capacity as the Zoning Commission will
hold a public hearing on this zone map amendment on June 5, 2023 and will forward its
recommendation to the City Commission on the zone map amendment. The meeting will begin
at 6 p.m. Instructions on joining the meeting will be included on the meeting agenda.
The City Commission will hold a public hearing on the zone map amendment on June 6,
2023. The meeting will begin at 6 p.m. Instructions on joining the meeting will be included
on the meeting agenda.
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SECTION 4 - ZONE MAP AMENDMENT STAFF ANALYSIS AND
FINDINGS
In considering applications for plan approval under this title, the advisory boards and City
Commission must consider the following criteria (letters A-K). As an amendment is a legislative
action, the Commission has broad latitude to determine a policy direction. The burden of proof
that the application should be approved lies with the applicant.
A zone map amendment must be in accordance with the growth policy (criteria A) and be designed
to secure safety from fire and other dangers (criteria B), promote public health, public safety, and
general welfare (criteria C), and facilitate the provision of transportation, water, sewerage, schools,
parks and other public requirements (criteria D). Therefore, to approve a zone map amendment
the Commission must find Criteria A-D are met.
In addition, the Commission must also consider criteria E -K, and may find the zone map
amendment to be positive, neutral, or negative with regards to these criteria. To approve the zone
map amendment, the Commission must find the positive outcomes of the amendment outweigh
negative outcomes for criteria E-K. In determining whether the criteria are met, Staff considers the
entire body of regulations for land development. Standards which prevent or mitigated negative
impacts are incorporated throughout the entire municipal code but are principally in Chapter 38,
Unified Development Code.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Criterion met. The BCP 2020, Chapter 5, p. 73, in the section titled Review Criteria for Zoning
Amendments and Their Application, discusses how the various criteria in 76-2-304 MCA are
applied locally. Application of the criteria varies depending on whether an amendment is for
the zoning map or for the text of Chapter 38, BMC. The first criterion for a zoning amendment
is accordance with a growth policy.
Future Land Use Map
The proposed amendment is a change to the zoning map. Therefore, it is necessary to analyze
compliance with the future land use map. Chapter 3 of the BCP 2020 addresses the future land
use map. The introduction to that chapter discusses the importance of the chapter. Following
are some excerpts.
“Future land use is the community’s fundamental building block. It is an illustration of the
City’s desired outcome to accommodate the complex and diverse needs of its residents.”
“The land use map sets generalized expectations for what goes where in the community.
Each category has its own descriptions. Understanding the future land use map is not
possible without understanding the category descriptions.”
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23047 Staff Report for the Jarrett Zone Map Amendment Page 11 of 21
The area of this application is within the annexed area of the City and where there is anticipated
redevelopment within the City as discussed below. As shown on the maps in Section 1, on the
excerpt of the current future land use map, the property is designated as Urban Neighborhood.
The Urban Neighborhood designation description reads:
“This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. Large areas of any single type of housing are discouraged. In
limited instances, an area may develop at a lower gross density due to site constraints
and/or natural features such as floodplains or steep slopes. Complementary uses such
as parks, home-based occupations, fire stations, churches, schools, and some
neighborhood-serving commerce provide activity centers for community gathering and
services. The Urban Neighborhood designation indicates that development is expected
to occur within municipal boundaries. This may require annexation prior to
development.
Applying a zoning district to specific parcels sets the required and allowed density.
Higher density residential areas are encouraged to be, but are not required or
restricted to, proximity to commercial mixed use areas to facilitate the provision of
services and employment opportunities without requiring the use of a car.”
The correlation between the future land use map of the growth policy and the zoning districts
is presented in Table 4 of the Bozeman Community Plan 2020. As shown in the following
Correlation with Zoning Table both the R-2 and PLI districts are implementing districts of the
Urban Neighborhood category.
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23047 Staff Report for the Jarrett Zone Map Amendment Page 12 of 21
Goals and Policies
A zoning amendment is also evaluated against the goals and policies of the BCP 2020.
Most of the goals and policies are not applicable to this application. Relevant goals and
objectives have been identified by staff. Conflict with the text of the growth policy have not
been identified.
The Short Term Action list on page 63 of the BCP 2020 describes 14 items to implement
the growth policy. The first two relate to direct changes to the zoning map in support of listed
goals and objectives. These include increasing the intensity of zoning districts in already
developed areas. Beginning on page 71 of the BCP 2020 in the section titled Zoning
Amendment Review, the document discusses how the City implements zoning for new areas,
amendments to areas, and revisions to existing text. This section includes a discussion of when
the City may initiate a zoning change to a more intensive district to increase development
opportunities. This section demonstrates that the City, as a matter of policy, is supportive of
more intensive zoning districts and development, even within already developed areas. This
policy approach does not specify any individual district but does lean towards the more
intensive portion of the zoning district spectrum.
The Applicant argues the proposed zone change is in accordance with the Growth Policy
by arguing, “Yes, the proposed PLI zoning will be used for the planned city park at the
northwest corner of this parcel. This zoning is allowed within the designated future land use
of Urban Neighborhood. The proposed ZMA from R-1 to PLI will allow for a public park to
serve the future residents of the surrounding proposed subdivisions.
The proposed zone map amendment from R-1 to R-2 will allow for increased residential density
in a geographically compact, walkable area to serve the varying needs of the community’s
residents. This supports goal N-1 of the growth policy, which states: “Support well-planned,
walkable neighborhoods.”
The applicant continues to suggest numerous goals and objectives that are broadly served with
this application. Staff is in general agreement with the list but note some goals and objectives
are only marginally promoted by the application. These include:
Goal N-1: Support well, planned, walkable Communities.
N-1.1 Promote housing diversity, including missing middle housing.
N-1.3 Revise the zoning map to lessen areas exclusively zoned for single-type housing.
The intent of the R-2 residential moderate density district is to provide for one- and two-
household development by utilizing minimum lot sizes in developed areas consistent with
the established development patterns nearby to enable greater flexibility for clustering lots
and housing types in newly developed areas. This district provides options for slightly
higher density while respecting the residential quality and nature of the surrounding
neighborhoods. The location of the subject site approximately one mile south of MSU
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provides possible home ownership opportunities for those working at MSU and other
nearby commercial nodes.
Goal DCD-1: Support urban development within the City.
DCD-1.1: Evaluate alternatives for more intensive development in proximity to high
visibility corners, services, and parks.
The R-2 residential moderate density district provides for moderately higher density
housing than R-1 with some flexibility on housing types other than single family
households. The proposal includes a zoning amendment from R-1 to PLI for one of the
parcels in the northwest corner to provide for public and quasi-public uses outside of the
other districts. The intent of this parcel is to provide a public park for future residents and
visitors within the community.
B. Secure safety from fire and other dangers.
Criterion met. The subject property is currently served by City of Bozeman Fire and Police
Departments. Future development of the property will be required to conform to all City of
Bozeman public safety, building and land use requirements, which will ensure this criterion
is met. The change from R-1 to R-2 and PLI is not likely to adversely impact safety from fire
and other dangers.
C. Promote public health, public safety, and general welfare.
Criterion met. City development standards included in Chapter 38, Unified Development
Code, building codes, and engineering standards all ensure that this criterion is met. Adequate
water and sewer supply and conveyance provide for public health through clean water. Rapid
and effective emergency response provides for public safety. The Cit y’s standards ensure that
adequate services are provided prior to building construction which advances this criterion.
General welfare has been evaluated during the adoption of Chapter 38 and found to be
advanced by the adopted standards. Provision of parks, control of storm water, and other
features of the City’s development standards also advance the general welfare. Compliance
with the BCP 2020 as described in Section 4, Criterion A shows advancement of the well-
being of the community as a whole. See also Criterion B.
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Criterion met. The BCP 2020, page 74, says the following regarding evaluation of Section 4,
Criteria B, C, & D for zoning amendments:
“For a map amendment, all three of the above elements are addressed primarily by
the City’s long range facility Plans, the City’s capital improvements program, and
development standards adopted by the City. The standards set minimum sizing and
flow requirements, require dedication of parks, provision of right of way for people
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and vehicles, keep development out of floodplains, and other items to address public
safety, etc. It is often difficult to assess these issues in detail on a specific site.
The City conducts extensive planning for municipal transportation, water, sewer, parks,
sustainability, and other facilities and services provided by the City. The adopted plans allow
the City to consider existing conditions; and identify enhancements needed to provide service
to new development. See page 19 of the BCP 2020 for a listing. The City implements these
plans through its capital improvements program (CIP). The CIP identifies individual projects,
project construction scheduling, and financing of construction for infrastructure. Private
development must demonstrate compliance with standards prior to construction
The subject properties are within the City’s land use, transportation, parks, and utility planning
areas. Those plans show this property as developing within the Cit y when development is
proposed. In terms of the subject site, there are some limitations regarding the existing sewer
system. Engineering has advised the applicant and owner that prior to any future development,
further analysis is needed to demonstrate adequate sanitary sewer capacity.
As stated in 38.300.020.C, the designation of a zoning district does not guarantee app roval of
new development until the City verifies the availability of needed infrastructure.
38.300.020.C, “Placement of any given zoning district on an area depicted on the
zoning map indicates a judgment on the part of the city that the range of uses allo wed
within that district are generally acceptable in that location. It is not a guarantee of
approval for any given use prior to the completion of the appropriate review procedure
and compliance with all of the applicable requirements and development standards of
this chapter and other applicable policies, laws and ordinances. It is also not a guarantee
of immediate infrastructure availability or a commitment on the part of the city to bear
the cost of extending services.”
Staff agrees with the applicant who states “this property fronts Graf Street and South 11th
Avenue which are collector streets as well as Arnold Street which is classified as a local street.
Access to the site will be available from S. 11th Avenue, Arnold Street, as well as Graf Street
in the future. These streets will allow access to the site for residents, visitors, and any necessary
public services such as postal service or emergency access.”
All future construction must extend services in conjunction with subdivision and site
development. Those extensions must meet current standards and will advance this
standard.
E. Reasonable provision of adequate light and air.
Criterion met. The R-2 and PLI districts provide adequate light and air through the Bozeman
Unified Development Code’s standards for park and recreation requirements, on-site open
space for residential uses, maximum building height, lot coverage, and setback requirements.
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Any future development of the property will be required to conform to City standards for
setbacks, height, lot coverage, and buffering. The criterion is not about personal preferences
but about protection of public health and safety. The adopted standards address protection of
public health and safety.
In addition to the zoning standards, adopted building codes contain more detailed requirements
for air circulation, window placement, and building separation that further ensure the intent of
this criterion is satisfied.
F. The effect on motorized and non-motorized transportation systems.
Criterion met. Potential future development within a zoning district of R-2 will affect the City’s
motorized and non-motorized transportation system with increased traffic. The proposed
zoning will allow for a higher density of uses than is currently allowed under R -1. The City’s
transportation plan is used to evaluate transportation needs over the long term throughout the
City and will evaluate impacts of motorized vehicles along with bikes and pedestrians. The
parks and trails plans also examine and specify options for extensions of the existing trail
network through this site. Future site development will examine impacts on the transportation
network, parks, and trails system, and municipal facilities. Furthermore, these future
development reviews will ensure that development under the new zoning will comply with the
City’s standards for the provision of onsite parking for bicycles and vehicles, as well as the
requirements for onsite circulation.
Traffic impacts will be studied by the development team to demonstrate compliance with the
City’s long-range transportation plans. Future project development will ensure compliance
with the acceptable traffic limits identified in the transportation plans, as well as provide for
the dedication of rights of way, construction or reconstruction of streets and trails, payment of
impact fees, and other contributions as will be applicable to this project.
Future development and redevelopment of the property will be requir ed to comply with
transportation-related standards and reviewed for impacts on the surrounding streets,
intersections, and sidewalks, and improvements to the transportation network to serve the site,
which will improve the overall transportation system. These improvements include provisions
for non-motorized transportation systems. The change in zoning district will have minimal
effect on required road improvements, pedestrian or bicycle facilities, or similar compliance
with standards. The site is adjacent to or crossed by two collector streets which have capacity
to carry additional traffic.
G. Promotion of compatible urban growth.
Criterion met. The Bozeman Community Plan establishes a preferred and compatible
development pattern. “The land use map sets generalized expectations for what goes where in
the community… The land use categories and descriptions provide a guide for appropriate
development and redevelopment locations for civic, residential, commercial, industrial, and
other uses. The future land use designations are important because they aim to further the
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vision and goals of the City through promoting sustainability, citizen and visitor safety, and a
high quality of life that will shape Bozeman’s future.” (Community Plan p. 51).
The City’s future land use map designates the properties as Urban Neighborhood in the BCP
2020. This designation correlates with several zoning districts including the R-2 and PLI
districts proposed by the applicants. The districts were developed by the City to promote
appropriate urban growth compatible with the areas of the City and provide for public and
quasi-public uses outside of other districts as identified on the future land use map. Based on
the land use map designations and correlated zoning districts in the plan and proposed by the
applicants, the zone map amendment would promote compatible urban growth and provide
valuable open space for nearby residents and the surrounding community. Also see the
discussion in (H) below.
The intent of the R-2 zone district is to provide for one- and two household residential
development at urban densities within the city in areas with few or no development constraints.
This is accomplished by providing for minimum lot sizes in developed areas consistent with
the established development patterns while providing greater flexibility for clustering lots and
housing types in newly developed areas, and to provide community facilities to serve the
development while respecting the residential quality and nature of the area. The use of this
zone is appropriate for areas with moderate access to parks, community services and/or transit.
There are undeveloped parcels in the city limits to the east and west that are zoned for low
density uses and moderate density residential to the south within the Alder Creek Subdivision.
North of the site is a partially developed site zoned residential emphasis mixed use with an
existing apartment community (The Arrow). The subject site is accessed by S. 11th Avenue
and Graf Street which are designated collector streets allowing for easy access to the project
site. The proposed zoning is in accordance with the Bozeman Community Plan’s future land
use designation of Urban Neighborhood.
Section 38.300.010 says in part “The purpose in having more than one residential district is to
provide opportunities for a variety of housing types and arrangements within the community
while providing a basic level of predictability. There is a presumption that the uses set forth
for each district will be compatible with each other when the standards of this chapter are met
and any applicable conditions of approval have been satisfied.” The application provides for
zoning either the same as or similar to the adjacent zoning. All future development must
comply with subdivision and zoning standards at time of construction. No evidence of non-
compliance with standards has been submitted.
H. Character of the district.
Criterion Met. Section 76-2-302, MCA says “…legislative body may divide the municipality
into districts of the number, shape, and area as are considered best suited to carry out the
purposes [promoting health, safety, morals, or the general welfare of the community] of this
part.” Emphasis added.
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This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts as
created by those standards remains intact.
As noted above, the City Commission has latitude in considering the geographical extents of a
zoning district. It is not expected that zoning freeze the character of an area in perpetuity.
Rather, it provides a structured method to consider changes to the character. This is especially
true when applying zoning to undeveloped areas as any new construction will alter the physical
characteristics of the area.
The City has defined compatible development as:
“The use of land and the construction and use of structures which is in harmony with
adjoining development, existing neighborhoods, and the goals and objectives of the
City's adopted growth policy. Elements of compatible development include, but are not
limited to, variety of architectural design; rhythm of architectural elements; scale;
intensity; materials; building siting; lot and building size; hours of operation; and
integration with existing community systems including water and sewer services,
natural elements in the area, motorized and non-motorized transportation, and open
spaces and parks. Compatible development does not require uniformity or monotony of
architectural or site design, density or use.”
The City has adopted many standards to identify and avoid or mitigate demonstrable negative
impacts of development. These will support the ability of future development in the proposed
R-2 district to be compatible with adjacent development and uphold the residential character
of the area.
Residential Moderate Density district—intent and purpose.
1. The intent of the residential moderate density district (R-2) is to provide for one- and
two-household residential development at urban densities within the city in areas that
present few or no development constraints. These purposes are accomplished by:
a. Providing for minimum lot sizes in developed areas consistent with the
established development patterns while providing greater flexibility for
clustering lots and housing types in newly developed areas.
b. Providing for community facilities to serve such de velopment while respecting
the residential quality and nature of the area. Use of this zone is appropriate
for areas with moderate access to parks, community services and/or transit.
The proposed zone district allows the applicant to construct a variety of housing, including
missing middle housing like townhomes, rowhomes, and condominiums. MSU is located
approximately one mile north of this loc ation providing home ownership opportunit ies for
people working at MSU and the surrounding community. East and west of the subject site is
zoned R-1, with a small pocket of R -2. North and southeast of the site is zoned REMU , and
directly south is zoned R -2. The proposed zone map amendment is comp atible and in
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harmony with the surrounding area considering the surrounding zone districts and variety of
possible uses.
Public comment s were submitted questioning the appropriateness of a potential change in
character from the adjacent R2 zoned area, a p ortion of which was developed for single
homes. The Bozeman Community Plan 2020 on pages 76 -77 says in part “Nothing in the
zoning amendment or site review criteria requires the Commission restrict one owner
because an adjacent owner chooses to not use all zoning potential.” The adjacent Alder Creek
development is a mix of single and two home dwellings. It is not inconsistent with the
character of the district to allow the same latitude to the land subject to the application.
I. Peculiar suitability for particular uses.
Criterion Met. The subject site is accessed by S. 11th Avenue and Graf Street which are
designated collector streets allowing for easy access to the project site. The property has access
to water lines and sewer extensions along S. 11th and Graf Street and is currently be served by
the City of Bozeman Police and Fire Departments. The proposed zoning is in accordance with
the Bozeman Community Plan’s future land use designation of Urban Neighborhood. Staff
agrees with the applicant who states “R-2 zoning will allow for similar and additional
compatible uses and allow for increased residential density in a more compact, walkable area
to serve the varying needs of the community’s residents. The proposed PLI district will allow
for a public city park to be built on this property that will serve the future residents of this and
surrounding communities. The proposed R-2 and PLI zoning is suitable for the site given the
current zoning of R-1 and the adjacent Urban Designation to the west and east, Residential
Mixed Use land use designation to the north, and R-2 zoning directly south. In addition, there
is convenient access to city roadway, water and sewer mains adjacent to the properties to serve
the future development.”
J. Conserving the value of buildings.
Neutral. The subject site is currently undeveloped. The proposed amendment is for the zoning
map and does not alter allowed uses on adjacent properties. The amendment does not modify
the existing standards of the R-2 district. The R-2 zone is residential in nature and allows a
variety of housing types with a minimum density of 6 dwelling units per acre.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Criterion met. Future land use map has this site designated as Urban Neighborhood. Within
that designation is R-2 as an implementing zone district of Urban Neighborhood and will
encourage the most appropriate use of land as the property is near residential and mixed uses.
Upon future development, municipal services will be extended to the subject site where there
is also frontage on S. 11th Avenue and Graf Street, both of which are existing collector streets.
The site will be able to support a higher intensity of uses allowed in R-2 with a community
park within the PLI district, which is consistent with the Bozeman Community Plan 2020
future land use map designation of Urban Neighborhood. The applicant adds that “based on
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the future land use map designations and existing residential development to the south, the
proposed zoning does encourage the most appropriate use of land.” The Unified Development
Code contains standards, protections and review processes to ensure the land is developed in
ways that are appropriate to a site’s context and according to the BCP 2020.
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.
The City will accept written protests from property owners against the proposal
described in this report until the close of the public hearing before the City Commission.
Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s) of real property
within the area affected by the proposal or by owner(s) of real property that lie within 150 feet
of an area affected by the proposal. The protest must be in writing and must be signed by all
owners of the real property. In addition, a sufficient protest must: (i) contain a description of
the action protested sufficient to identify the action against which the protest is lodged; and (ii)
contain a statement of the protestor's qualifications (including listing all owners of the property
and the physical address and legal description of the property), to protest the action against
which the protest is lodged, including ownership of property affected by the action. Signers
are encouraged to print their names after their signatures. A person may in writing withdraw a
previously filed protest at any time prior to final action by the City Commission. Protests
must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230,
Bozeman, MT 59771-1230.
APPENDIX A - NOTICING AND PUBLIC COMMENT
As required by 38.220 (external link), notice was sent via US first class mail to all owners of
property located inside the site and within 200 feet of the perimeter of the site. The project site
was posted with a copy of the notice. The notice was published in the Legal Ads section of the
Bozeman Daily Chronicle on May 6th and May 13th, 2023. Notice was provided at least 15 but
not more than 45 days prior to any public hearing. The Community Development Board
hearing is scheduled for June 5, 2023 and the City Commission public hearing is scheduled for
June 6, 2023.
Public comments have been received on this application at the time of writing this report.
Any received comments will be made available through the City’s Laserfiche (external link)
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APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING
Adopted Growth Policy Designation:
The project site is designated as “Urban Neighborhood” in the Bozeman Community Plan
2020 future land use map – see descriptions below.
“This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. Large areas of any single type of housing are discouraged. In
limited instances, an area may develop at a lower gross density due to site constraints
and/or natural features such as floodplains or steep slopes. Complementary uses such
as parks, home-based occupations, fire stations, churches, schools, and some
neighborhood-serving commerce provide activity centers for community gathering and
services. The Urban Neighborhood designation indicates that development is expected
to occur within municipal boundaries. This may require annexation prior to
development. Applying a zoning district to specific parcels sets the required and
allowed density.”
The PLI district within the Urban Neighborhood designation is to “provide for major
public and quasi-public uses outside of other districts. Not all public and quasi-public
uses need to be classified PLI. Some may fit within another district, however larger
areas will be designated PLI.”
Proposed Zoning Designation and Land Uses:
The applicant has requested zoning of R-2, Residential Moderate Density district whose intent is
to:
Residential moderate density district (R-2). The intent and purpose of the R-2 district is to provide
for one-and two-household residential development at urban densities within the city in areas that
present few or no development constraints. These purposes are accomplished by:
1. Providing for minimum lot sizes in developed areas consistent with the established
development patterns while providing greater flexibility for clustering lots and housing
types in newly developed areas.
2. Providing for community facilities to serve such development while respecting the
residential quality and nature of the area.
Use of this zone is appropriate for areas with moderate access to parks, community services and/or
transit.
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APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF
Owner: Yvonne Jarrett, 4124 Stimson Lane, Belgrade, MT 59714
Applicant: Madison Engineering, 895 Technology Boulevard, Suite 203, Bozeman, MT 59718
Representative: Madison Engineering, 895 Technology Blvd., Suite 203, Bozeman, MT 59718
Report By: Elizabeth Cramblet, Associate Planner
FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be changed by
this zone map amendment.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development Department
at 20 E. Olive Street, Bozeman, MT 59715. In addition, application materials can be viewed on
the City’s development map at the following link: Application 23047 (external link)
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Deputy Director
Anna Bentley, Community Development Director
SUBJECT:Upcoming Items for the June 26, 2023 Community Development Board
Meeting
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Information only, no action required.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The following project review items are presently scheduled for the June 26,
2023 Community Development Board meeting.
1. Alcoholic Beverages Sale Limitation Text Amendment 23064 - Reviewed in
role as Zoning Commission
The following non-project review items are presently scheduled for the June
26, 2023 Community Development Board meeting.
1. Overview of residential density and and requirements for successful
commercial uses in mixed use development - presentation from Economic
Planning Systems and Economic Development staff.
2. Midtown Urban Renewal District - Determination of consistency with
growth policy for amendments to urban renewal plan to revise language
regarding Boards consolidation.
3. Northeast Urban Renewal District - Determination of consistency with
growth policy for amendments to urban renewal plan to revise language
regarding Boards consolidation.
4. Impact fee study update kickoff - Overview presentation by TischlerBise
and staff of update process.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None.
FISCAL EFFECTS:None.
104
Report compiled on: June 1, 2023
105
Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Deputy Director
Anna Bentley, Community Development Director
SUBJECT:Overview of 2023 Montana Legislative Session and Impacts on On-Going City
of Bozeman Code Update Work
MEETING DATE:June 5, 2023
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Receive information
STRATEGIC PLAN:4.1 Informed Conversation on Growth: Continue developing an in-depth
understanding of how Bozeman is growing and changing and proactively
address change in a balanced and coordinated manner.
BACKGROUND:The Montana Legislature meets for 90 days every two years in odd
numbered years. The 2023 legislative session concluded on May 2nd. It was
an active session with many bills relating to land use and development being
introduced. A summary of tracked land use related bills relevant to the City
is attached. This is a finalized version of the materials provided on May 15th
when several bills had yet to be acted on by the Governor. This is provided
for information only at this time.
UNRESOLVED ISSUES:None
ALTERNATIVES:None
FISCAL EFFECTS:No funds are used with this item.
Attachments:
2023 MT Legislative Session - Final.pdf
Report compiled on: June 1, 2023
106
2023 MT Legislation With Status and Effective Date Updated May 26, 2023
Bill # Subject Status Effective Date
HJ 15 Study for shared use paths Died in standing committee
HJ 22 Interim study of accessory dwellings Died in process
HJ 34 Short Term Rentals Died in process
HJ 35 Interim study of permitting process Died in process
HB 114 Revise timelines for water right permit process Signed ‐ Effective 1‐Jan‐24
HB 187 Private covenants ‐ daycare is residential use Signed ‐ Effective Passage and approval
HB 211 Subdivision review process Signed ‐ Effective 1‐Oct‐23
HB 241 Restrict requirement for solar panels or EV chargers Signed ‐ Effective 1‐Oct‐23
HB 246 Authorizes cities to zone for "Tiny Dwelling Units" Signed ‐ Effective 1‐Oct‐23
HB 299 Enforcement of zoning ordinances allowed re: businesses Signed ‐ Effective Passage and approval
HB 337 Minimum lot sizes ‐ restrict local authority Tabled in Committee
HB 364 Subdivision/sanitation reviews ‐ DEQ and extension of municipal utilities Signed ‐ Effective 1‐Jan‐24
HB 369 Require referrendum for growth policy adoption or amendment Tabled in Committee
HB 465 Revise use of building permit revenues Signed ‐ Effective 1‐Oct‐23
HB 483 Subdivision exemptions ‐occassional sale Tabled in Committee
HB 553 ADU ‐ zoning preemption Tabled in Committee
HB 606 Home based businesses ‐ limit local authority Tabled in Committee
HB 642 Exempt wells Tabled in Committee
HB 675 Consolidation of water and sewer districts Signed ‐ Effective 1‐Oct‐23
HB 724 Public notice requirements for agendas Signed ‐ Effective 1‐Oct‐23
HB 748 Zoning authorization to separate uses Vetoed
HB 825 affordable housing funding Missed transmittal
HB 874 Amend subdivision exemption costs Signed ‐ Effective 1‐Oct‐23
HB 914 Annexation and non‐conforming uses, contract conflicts of interest Died in process
HP 918 DPHHS daycare registration and relation to zoning Signed ‐ Effective
SB 72 Judicial administration of water rights Tabled in Committee
SB 94 Recovery residences Signed ‐ Effective 1‐Oct‐23
SB 131 change subdivision exemption review timelines Signed ‐ Effective 1‐Oct‐23
SB 142 Impact fees ‐ refunds and claims Signed ‐ Effective 1‐Jan‐24
SB 152 Revise tract of record requirements for subdivision Signed ‐ Effective 1‐Oct‐23
SB 158 Subdivision exemption review Signed ‐ Effective Passage and approval
SB 170 Minor subdivision review Signed ‐ Effective 1‐Oct‐23
SB 178 Restrict zoning re cryptocurrency Signed ‐ Effective Passage and approval
SB 195 Building code fire sprinkler and religious usage temporary Signed ‐ Effective Passage and approval
SB 208 Limit local restrictions on energy choices Signed ‐ Effective Passage and approval
SB 215 Requirement to connect water sewer from outside user Signed ‐ Effective Passage and approval
SB 220 Annexation of infrastructure and parks Signed ‐ Effective 1‐Oct‐23
SB 228 Prohibit local bans on petroleum fuels Signed ‐ Effective Passage and approval
SB 240 Subdivision sanitation review exemption Signed ‐ Effective Passage and approval
SB 245 Zoning requirement to allow multiple dwelling in commercial areas Signed ‐ Effective Passage and approval
SB 247 Covenant enforcement limitations Signed ‐ Effective Passage and approval
SB 262 Business licensing limits Signed ‐ Effective 1‐Oct‐23
SB 268 Short Term Rentals Died in process
SB 285 Sanitation in subdivision exemptions Signed ‐ Effective Passage and approval
SB 319 Subdivision exemptions Tabled in Committee
SB 323 Require multiple home buildings in all residential districts Signed ‐ Effective 1‐Jan‐24
SB 327 Water well location in setbacks Signed ‐ Effective Passage and approval
SB 331 Subdivsion exemption for condominiums Signed ‐ Effective Passage and approval
SB 335 Fraternity placement near campus Tabled in Committee
SB 376 Covenant duration and renewal ‐ recheck Tabled in Committee
SB 379 Zoning restrictions Tabled in Committee
SB 382 Replaces all land use plan, subdivision, and zoning enabling acts Signed ‐ Effective Passage and approval
SB 406 Only state adopted building codes may be used Signed ‐ Effective 1‐Oct‐23
SB 407 Limit use of board in application review Signed ‐ Effective 1‐Oct‐23
SB 467 Short Term Rentals Died in process
SB 500 Uniform duration of latecomer agreements Tabled in Committee
SB 517 STR fee to fund housing Tabled in Committee
SB 528 Accessory dwellings required and standards limited Signed ‐ Effective 1‐Jan‐24
SB 130 Cities & counties both allowed to consolidate planning board, zoning comm Signed ‐ Effective 1‐Oct‐23
107