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REPORT TO: Honorable Mayor&City Commission
FROM: Andrew Epple, Planning Director
Chris Kukulski, City Manager
SUBJECT: Costco UDO Text Amendment Application#Z-06047
MEETING DATE: Monday, May 15,2006
BACKGROUND: The proposed text amendment would eliminate Section 18.40.060.A of the
Unified Development Ordinance. This section of the UDO requires that automobile repair and/or
fuel sales businesses have at least one frontage on a major arterial street as designated in the
Bozeman growth policy. This amendment would apply Citywide. At their May 2, 2006 public
hearing the City of Bozeman Zoning Commission voted 1 in favor and 3 against to recommend
denial of this application. The concerns of the Zoning Commission were related to a hesitance to
amend this provision of the UDO, which would impact properties throughout the City, to
accommodate one business (Costco). The Zoning Commission preferred a site-specific review such
as a variance or PUD proposal.
UNRESOLVED ISSUES: 1. When and why this provision was inserted into the City's regulations?
Research has yielded evidence that this provision was included in the Fort Collins, CO zoning
ordinance which formed the basis for Bozeman's 1990 zoning ordinance; this provision was not
crafted specifically for Bozeman, but was "borrowed" from another community. 2. What other site-
specific review procedures are available to allow a gas station at Costco? A gas station proposal for
the Costco site could be reviewed as a PUD, but a PUD for an already developed site is problematic.
A variance is not an option because there is no hardship associated with the property.
RECOMMENDATION: The City Commission approves this application based on staff s analysis
presented in the staff report.
FISCAL EFFECTS: Fiscal impacts are undetermined at this time.
ALTERNATIVES: As suggested by the City Commission.
CONTACT: Please feel free to email Jody Sanford at jsanfordgbozeman.net or 582-2260 if you
have any questions prior to the public hearing.
Respectfully submitted,
t�
Andrew Epple, Planning Niector Chris Kukulski,City Manager
Attachments: Zoning Commission Resolution#Z-06047
Minutes of Zoning Commission's May 2,2006 public hearing
Staff report and applicants submittal materials
Report compiled on May 9, 2006
ZONING COMMISSION STAFF REPORT
COSTCO UNIFIED DEVELOPMENT ORDINANCE TEXT AMENDMENT FILE NO. #Z-06047
Item: Unified Development Ordinance Text Amendment Application #Z-06047, to
amend the text of the Unified Development Ordinance by eliminating Section
18.40.060.A.
Applicant: Costco Wholesale
999 Lake Drive
Issaquah,WA 98027
Representative: Barghausen Engineers
18215 72"d Drive
Issaquah,WA 98027
Date/Time: Before the Bozeman Zoning Commission on Tuesday, May 2, 2006 at 7:00
p.m. in the City Commission Meeting Room, City Hall, 411 East Main Street,
Bozeman, Montana. Before the Bozeman City Commission on Monday, May
15, 2006 at 6:00 p.m. in the Community Room, Gallatin County Courthouse,
311 West Main Street, Bozeman, Montana.
Report By: Jody Sanford, Senior Planner
Recommendation: Approval
PROTECT LOCATION
The proposed edits are applicable throughout the legal boundaries of the City of Bozeman.
PROPOSAL AND BACKGROUND INFORMATION
The applicant is proposing to amend the text of the Unified Development Ordinance (UDO) by eliminating
Section 18.40.060.A. This section of the UDO states the following:
18.40.060 AUTOMOBILE REPAIR AND/OR FUEL SALES
In addition to the requirements to be followed for all convenience uses as defined in this
title, and provided in �18.40.100 of this chapter, the following requirements shall apply to all
service station and automobile uses as listed below. Compliance with all criteria listed below
does not necessarily guarantee approval by the City.
A. At least one frontage is to be on a major arterial street as designated in the Bozeman
growth policy;
This amendment would allow the placement of automobile repair and/or fuel sales uses on sites that do not
front on at least one major arterial street for any business and not just for the applicant (Costco Wholesale).
#Z-06047 Costco UDO Text Amendment Staff Report 1
Automobile repair and fuels sales would remain conditional uses with the B-1 (Neighborhood Commercial),
B-2 (Community Commercial) and B-3 (Central Business) zoning districts. They are principal uses within
the M-1 (Light Manufacturing) and M-2 (Manufacturing and Industrial) zoning districts.
REVIEW CRITERIA
According to Section 18.70.020 of the Unified Development Ordinance (UDO), the Bozeman Zoning
Commission shall cause to be made an investigation of facts bearing on each UDO text amendment
application. The Zoning Commission must provide necessary information to assure that the action of each
UDO text amendment application is consistent with the intent and purpose of the UDO. Specifically, the
investigation must address the following criteria as required in Section 76-02-304, Montana Code
Annotated.
A. Consistency with the City's growth policy.
Yes. There are six basic ideas that form a foundation for many of the land use policies in the growth
policy. One of these, the concept of center-based development rather than corridor-based
development, would be advanced by this amendment. The Bozeman 2020 Community Plan states
the following in regard to"centers:"
Centers. The first idea is for a renewal of a pattern of community
development which is oriented on centers rather than along corridors. A
corollary principle is for compact development. Focusing commercial
activities into mutually reinforcing centralized areas enables each business to
take advantage of the presence of customers and employees of other
businesses. It enables greater convenience for people with shorter travel
distances to a wide range of businesses and the opportunity to accomplish
several tasks with a single trip. This can facilitate the use of transportation
alternatives to single occupant motor vehicles and a corresponding reduction
in traffic and road congestion and air quality impacts. A central location
enables greater access to employment, services, and recreation with a reduced
dependence on the automobile, greater efficiencies in delivery of public
services, and corresponding cost savings in both personal and commercial
applications.
The center-based concept does not require less land for actual business
activities but does change the shape of the commercial areas. The center-
based development pattern is supported in this plan by locating centers at the
intersection of arterial and collector streets. Such locations allow not only
immediately adjacent residents but also passing travelers to support the
commercial activities. The centers are further supported through careful
location of higher density housing in a fashion that provides support for
commercial operations while providing amenities to residents.
The requirement for all automobile repair and fuel sales to front on at least one major arterial
reinforces the undesirable corridor-based development pattern by forcing these businesses to locate
on the major streets into and through the community.
#Z-06047 Costco UDO Text Amendment Staff Report 2
B. Lessening of congestion in the streets.
Yes. Obviously, automobile repair and fuel sales businesses are going to involve automobiles.
However, requiring automobile repair and fuel sales to front on at least one major arterial creates
traffic congestion because many of Bozeman's existing arterials are largely auto-oriented at this time.
Allowing these businesses in center-based commercial developments would at least offer the
potential for reduced congestion through reduced trip lengths and combining several tasks into one
trip.
C. Securing safety from fire, panic and other dangers.
Neutral. The development of automobile repair and fuel sales, regardless of the location within the
City, would be required to meet the zoning requirements including setbacks, lot coverage, height
limitations, and lot sizes. The development of any new automobile repair or fuel sales establishment
would be subject to applicable fire and building codes. The development of automobile repair and
fuel sales in the B-1, B-2 and B-3 districts would require a conditional use permit, with the
opportunity to add additional conditions or deny a proposal.
D. Promotion of health and the general welfare.
Neutral. Generally the standards of development, and accompanying development review processes,
will adequately address the issues of health and general welfare regardless of where automobile repair
and fuel sales businesses are located within the City.
E. Provision of adequate light and air.
Neutral. The standards of development allows sufficient space for development while maintaining
light and air through setback, building height, lot area and width, and lot coverage restrictions
regardless of where automobile repair and fuel sales businesses are located within the City.
F. Prevention of overcrowding of land.
Neutral. The setback, building height, lot size, lot coverage and parking requirements contained in
the Unified Development Ordinance are used to prevent the overcrowding of land regardless of
where automobile repair and fuel sales businesses are located within the City. Any development of
auto repair and fuel sales, regardless of the location within the City,would require review against the
requirements of the UDO.
G. Avoiding undue concentration of population.
Neutral. The setback, building height, lot size, lot coverage and parking requirements contained in
the Unified Development Ordinance are used to prevent the undue concentration of population
regardless of the proposed use. Any development of auto repair and fuel sales, regardless of the
location within the City,would require review against the requirements of the UDO.
H. Facilitating the adequate provision of transportation, water, sewerage, schools, parks and
other public requirements.
Neutral. This proposal should have no effect upon the provision of water, sewerage, schools and
parks. This proposal would impact the provision of transportation facilities, but staff finds that the
impacts would be minimal. The City's review process is rigorous enough to ensure that adequate
#Z-06047 Costco UDO Text Amendment Staff Report 3
street access exists for all new automobile repair and fuel sales businesses regardless of their
location.
I. Conserving the value of buildings.
Neutral. This proposal should have no impact upon the value of buildings.
J. Reasonable consideration to the character of the district.
AND
K. Reasonable consideration to the peculiar suitability of the property for particular uses.
Neutral. This amendment would apply to the entire City. Therefore, an evaluation of the character
of the (zoning) district and the peculiar suitability of the property cannot be provided.
L. Encouraging the most appropriate use of land through the municipality.
Yes. The requirement that automobile repair and fuel sales businesses front on at least one arterial is
a dated concept. In the past, these types of businesses have typically located along arterials to be
more visible to customers and to be more convenient for the motoring public. Major arterials were
considered to be the most appropriate location for these auto-oriented businesses. Now, much of
Bozeman's commercial enterprise is being directed away from the major thoroughfares and into
commercial centers. Further, some proprietors of automobile repair and fuel sales businesses want
to locate their business off of major arterials. Business owners should be allowed more flexibility in
selecting a site for their establishment, provided that the site complies with the requirements of the
UDO and applicable fire and building codes.
Automobile repair and fuel sales businesses would still be conditional uses within the B-1, B-2 and
B-3 zoning districts. The conditional use permit allows a greater degree of review and the placement
of additional conditions of approval. Also, the conditional use permit allows a proposal to be
denied if it is not appropriate for the site and neighborhood.
STAFF FINDINGS/CONCLUSION
Planning Staff has reviewed this application for a Unified Development Ordinance text amendment against
the criteria set forth in 18.70.020 (Amendments and Rezonings — Investigation Required) of the Unified
Development Ordinance. Staffs analysis finds that this application satisfies the required criteria. Based on
the evaluation of said criteria and findings by the Planning Staff, staff recommends APPROVAL of the
requested amendment.
The recommendation of the Bozeman Zoning Commission will be forwarded to the Bozeman City
Commission for consideration at its public hearing on May 15, 2006. The City Commission will make the
final decision on the application.
PUBLIC COMMENT
No public comment had been received when this report was prepared.
#Z-06047 Costco UDO Text Amendment Staff Report 4
ATTACHMENTS
Applicant's Submittal—The applicant's response to the text amendment criteria.
cc: Kim Sanford, Costco Wholesale,999 Lake Drive, Issaquah,WA 98027
Chris Ferko,Barghausen Engineers, 18215 72nd Drive,Issaquah,WA 98027
#Z-06047 Costco UDO Text Amendment Staff Report 5
Costo UDO Text Amendment
RESOLUTION#Z-06047
RESOLUTION OF THE CITY OF BOZEMAN ZONING COMMISSION
RECOMMENDING DENIAL OF AN APPLICATION FOR A UNIFIED
DEVELOPMENT ORDINANCE TEXT AMENDMENT APPLICATION THAT
WOULD ELIMINATE SECTION 18.40.060.A WHICH REQUIRES THAT
AUTOMOBILE REPAIR AND/OR FUEL SALES HAVE AT LEAST ONE FRONTAGE
ON A MAJOR ARTERIAL STREET AS DESIGNATED IN THE BOZEMAN GROWTH
POLICY.
WHEREAS, the City of Bozeman has adopted zoning regulations and a zoning map
pursuant to Sections 76-2-301 and 76-2-302,M.C.A.; and
WHEREAS, Section 76-2-305, M.C.A. allows local governments to amend zoning
regulations if a public hearing is held and official notice is provided;and 4
WHEREAS, Section 76-2-307, M.C.i1. states that the Zoning Commission must conduct a
public hearing and submit a report to the City Commission for all zoning regulation amendment
requests;and
WHEREAS, the City of Bozeman Zo Commission has been created by Resolution of
AF
the Bozeman City C mmission as provided for in� coon 7622-307,M.C.A.; and
WHEREAS, Chapter 18.68 of the Bozeman Unified Development Ordinance sets forth the
procedures and review criteria for zoning regulatiomendments;and
WHEREAS, Costco Wholesale applied for a Unified Development Ordinance text
amendment, pursuant to Chapter 18.68 of the Bozeman Unified Development Ordinance, to
eliminate Section 18.40.060.A;
WHEREAS, the proposed text amendment request has been properly submitted, reviewed
and advertised in accordance w' the procedures set forth in Chapter 18.70 of the Bozeman Unified
Development Ordinance and to 76,Chapter 2,Part 3,M.C.A.;and
WHEREAS, the City of Bozeman Zoning Commission held a public hearing on May 2,
2006, to formally receive and review all written and oral testimony on the proposed text amendment;
and
WHEREAS, one member of the public commented on the proposal and expressed support
for the proposal;and
1
Costo UDO Text Amendment
WHEREAS,three members of the public commented on the proposal and expressed
opposition to the proposal related to making all fuel distributors play by the same rules; and
WHEREAS, the Zoning Commission discussed other existing gas stations in town, that are
not located on arterial streets, and how they came to be;and
WHEREAS, the Zoning Commission discussed other review processes, including the PUD
and variance processes,that might allow Costco to sell fuel without a UDO text amendment; and
WHEREAS, after considering discussion amongst Commission members and public
testimony, a majority of the Bozeman Zoning Commission was not able to find that the proposed
Unified Development Ordinance text amendment complied,-,with the required review criteria.
NOW,THEREFORE,BE IT RESOLVED that the City of Bozeman Zoning Commission,
on a vote of 1 in favor and 3 against, officially` ecommends to the Bozeman City Colyn fission that
the application to amend the text of the Unified Development Ordinance by eliminating Section
18.40.060.A be denied.
DATED THIS DAY OF , 2006, Resolution #Z-06047
Andrew Epple, Planning Director JP Pomnichowski, Chairperson
Dept. of Planning&Community Development City of Bozeman Zoning Commission
2
THE CITY OF BOZEMAN ZONING COMMISSION
TUESDAY,MAY 2, 2006 AFT
MINUTES DR
ITEM 1. CALL TO ORDER AND ATTENDANCE
Chairperson JP Pomnichowski called the meeting to order at 7:00 p.m. and directed the secretary
to record the attendance.
Members Present Staff Present
Peter Harped Andrew Epple,Director, Planning and Community Development
Nicholas Lieb Carol Schott, Recording Secretary
Nathan Minnick
JP Pomnichowski
Visitors Present
Greg Schatz Chris Ferko David Lapinski Doug Alexander
Gary Tschache Jessica Hansen Bryan Kelsey Don Alexander
Duane Lapinski Carl Solvie Leo Keller Marcia Youngman
Ted Lange Rob Pertzborn Camden Easterling
ITEM 2. PUBLIC COMMENT(0-15 MINUTES)
{Limited to any public matter within the jurisdiction of the Zoning Commission and not
scheduled on this agenda. Three-minute time limit per speaker.}
Chairperson Pomnichowski called for public comment on any public matter within the jurisdiction
of the Zoning Commission and not scheduled on this agenda, and asked participants to limit their
comments to three minutes or less.
Marcia Youngman, 1214 West Koch Avenue, distributed an invitation to a special meeting to be
held on May 10, 2006. She noted it is a land use facilitated meeting to discuss the addition of a mixed use
zoning designation to the UDO. She described the content of the discussion.
Chairperson Pomnichowski asked, if the amendment would be heard by both the Planning Board
and Zoning Commission, and if there would be an ex parte conflict. Director Epple noted the amendment
would be a UDO amendment and would be heard by both parties. He stated he had discussed the ex parte
issue with legal staff, and the initial determination was that there would not be an ex parte conflict
because it is a legislative act. Ms. Youngman noted advertising has declared it to be a public meeting.
ITEM 3. MINUTES OF MARCH 28,2006
Chairperson Pomnichowski called for additions or corrections to the minutes. Hearing none, she
declared the minutes approved as submitted.
City of Bozeman Zoning Commission Minutes—May 3,2006 1
ITEM 4. PROJECT REVIEW DRAFT
Unified Development Ordinance Text Amendment Application-
#Z-06047 - (Costco Wholesale). A Unified Development Text Amendment requested by
Costco Wholesale, represented by Barghausen Engineers, to propose an amendment to the
text of the Unified Development Ordinance to eliminate Section 18.40.060.A. This
amendment would allow the placement of automobile repair and/or fuel sales on sites that
do not front on at least one major arterial street. (Sanford).
In the absence of Senior Planner Jody Sanford,Director of Planning and Community
Development Andrew Epple presented the Staff Report in which staff recommends approval of the
application.
Chris Ferko,Barghausen Engineers and applicant's representative, noted they are supportive of
the staff report contents. He described the rationale for the amendment.
Mr. Lieb asked how much extra traffic would be generated by a fuel station at Costco. Mr. Ferko
noted the amendment is for the whole city and not just for Costco. However,he noted, there will not be a
substantial increase in traffic as most users already shop at Costco.
Chairperson Pomnichowski asked why an amendment request and not a variance request.
Director Epple noted about 6 years ago Costco came forward with a variance application. He stated legal
staff determined that the variance was not the proper vehicle, a code amendment would be more
appropriate.
Chairperson Pomnichowski OPENED THE MEETING FOR PUBLIC COMMENT.
Leo Keller, 3599 Cottonwood Road, stated he has lived near Costco gas stations much of his life
and he'd like to see one here.
Doug Alexander, 132 Peace Pipe, stated he is a representative for private citizens involved in the
sales of petroleum products. He asked that the Commission recommend denial of the request. He noted
the argument is about fairness. He noted the ordinance was established in 1988 and the current small
businesses that sell petroleum products have abided by those rules. He noted the owners of Costco
situated their store in that location on purpose and had a choice of other sites within the subdivision. He
stated Costco was the first development in the subdivision. He asked that Costco be required to solve
their problem by purchasing land along Valley Center Road.
Karl Solvie, 1901 South Tracy Avenue, stated he is opposed to changing the code as it would
create an unleveled playing field. He noted privileges come with following the rules. He stated he was
opposed to deleting the sentence in the ordinance.
Dan Alexander, 206 Sanders Avenue, noted he is a member of a members-only fuel group and has
been denied the opportunity to locate off an arterial in Bozeman. He stated he was opposed to the
proposal.
City of Bozeman Zoning Commission Minutes—May 3,2006 2
DRAFT
Chairperson Pomnichowski called for further public comment, and hearing none, she CLOSED
THE PUBLIC HEARING.
Mr. Ferko clarified that Costco had only approached the City once for the privilege of selling fuel
products. He asked that the Commission consider the proposal as it opens land for fuel-sales businesses.
He stated codes change due to changes in times and thinking.
Mr. Minnick asked if anyone had been advised to apply for a text amendment in the past. Director
Epple noted he was not aware of any such request. He stated any citizen can propose an amendment to
the code.
Mr. Lieb asked for the driving force to change the wording of the code. Director Epple noted in
the past arterials were deemed the most appropriate locations for fuel stations; however, current thinking
is to disperse traffic to commercial centers. He noted there may have been residential conflicts in the
past, however, there are review processes in place,through the CUP application, to determine if the use is
appropriate in a certain area. He stated he reviewed codes back to 1990 and found the reference linked to
arterials.
Chairperson Pomnichowski asked how a gas station could be installed at Casey's Corner or the
Kwik Way or College and 8th . Director Epple noted they were either done as a PUD or predated the
current code. Chairperson Pomnichowski noted Costco could apply for fuel sales by amending or
submitting a PUD. Director Epple concurred.
Mr. Lieb asked when philosophy changed from an arterial based plan to a center based plan.
Director Epple noted it was in 2001 when the 2020 Plan was adopted.
Chairperson Pomnichowski stated she was concerned as the deletion would change the code for a
specific application,which would allow fuel sales on any and all collector streets. She noted the twelve
criteria may not be met, and listed several criteria she felt were not met. She noted a PUD application
submitted today could handle the Costco need. Director Epple noted legal counsel has stated there is no
"hardship"to qualify a variance approval.
Mr. Harried asked what criteria have to be met for a PUD. Director Epple noted there are several
requirements, such as -minimum acreage sizes, single ownership of the parcel, and others in the code.
Mr. Harried noted the amendment is for a specific business. He stated the UDO was thought out
very carefully. He noted the move to center-based commercial plan may be great for the city as it moves
businesses away from the arterial and collector streets.
Chairperson Pomnichowski noted the application reaches farther than just getting cheaper gas. It
would change the code city-wide.
MOTION: Mr. Harried moved, Mr. Minnick seconded,to recommend approval of application
#Z-06047. Mr. Minnick noted he has the same concern as Chairperson Pomnichowski and Mr. Lieb with
the changing of the code; however, there are code requirements to be met and the community seems to be
moving towards community centered developments. Chairperson Pomnichowski noted she has the same
concern. She noted Casey's Corner and others exist due to provisions within the code.
City of Bozeman Zoning Commission Minutes—May 3,2006 3
The motion failed by a 1-3 vote with Mr. Harried voting for the application.
DRAFT
ITEM 5. ADJOURNMENT
The meeting was adjourned at 7:50.
Andrew Epple, Director JP Pomnichowski, Chairperson
Planning and Community Development City of Bozeman Zoning Commission
City of Bozeman Zoning Commission Minutes—May 3,2006 4