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3. Ordinance 1722 - Zoning Text Amendment - DewGood, LLC - 2nd ReadingPUNNING FOR THE FUTURE REPORT TO: FROM: SUBJECT MEETING DATE: Planning Department 201 1" Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kaHspell.com/planning Doug Russell, City Manager PJ Sorensen, Kalispell Planning Dept KZTA13-01 — Zoning Text Amendment - Accessory casinos March 18, 2013 (Second Reading) BACKGROUND: The Kalispell City Planning Board met on February 12, 2013, and held a public hearing to consider a request by Dewgood, LLC, to amend Section 27.34.040 of the Kalispell Zoning Ordinance as it relates to the maximum percentage of floor area allowed for casinos as an accessory use. The proposal would increase the percentage from 10% to 20%. The City Council reviewed the proposal at its regular meeting of March 4 and approved the amendment on first reading by a unanimous 7-0 vote. The changes to the current text of the code section are indicated below. Deletions are struck -out and additions are underlined. 27.34.040: Casinos (1) Casinos shall be a minimum of 300 feet from churches, schools, parks, city residential zones, and other casinos, measured from property line to property line. (2) Casinos may be located closer than 300 feet from churches, schools, parks, city residential zones, and other casinos, measured from property line to property line if the casino is considered a minor accessory use and meets the parameters of both Sections 3 & 4 below. (3) A casino is considered a minor accessory use to a primary use if the primary use (e.g. restaurant or bar, but not shopping center or other multi -use designation) and its associated facilities constitute at least 380% of the proposed floor space and the casino constitutes no more than 4-20% of the proposed use. In addition, the casino is generally shielded or screened from view of the primary use and patrons. (4) The following design standards as appropriate may be placed on the casino: (a) Limiting or prohibiting the on -premise signage or building from using the following: 1. Any terms such as gaming, gambling, cards, dice, chance, etc. 2. Any reference to any associated activity or any symbols or words commonly associated with gaming. 3. Any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site. 4. Neon Lighting. (b) Limiting the number and location of entrances into the casino. (c) Increasing landscaping requirements in order to create a buffer between the casino and adjacent land uses. About 12 years ago, the zoning ordinance listed casinos as a conditionally permitted use in the primary commercial zones. The definition of "casino' was somewhat lengthy and convoluted, but generally, anything with more than one card table, 15 or more machines, or with the word "casino' in the name or signage, was considered a casino. The City Council, at the time, was concerned about the proliferation of casinos in the city and looked at various options to minimize their impact in the community. The resulting regulations redefined "casino' as any form of legalized gambling (with a few exceptions) and required them to be spaced out by having a 300 foot buffer requirement from churches, schools, parks, city residential zones, and other casinos. These changes significantly limited the options for any new business wishing to offer any form of gaming, including many types of restaurants that wanted to operate with a liquor license. The connection with the liquor license is that the State of Montana issues a specified number of liquor licenses within a community through a rather complex formula. When a city, such as Kalispell, is at the maximum, a new business needs to purchase the license from an existing business. The limited supply of the licenses creates a market where the licenses become very expensive to obtain. Coupled with the general requirement that casino gaming licenses must be connected to a liquor license, many restaurants are faced with a choice of not offering liquor or providing gaming as a way to pay for the cost of the liquor license. The Council recognized the dilemma faced by new restaurants and in 2006 amended the code to allow for situations where accessory casinos are an option (i.e. where the primary use is a restaurant or bar, but where a limited amount of area, separated from the main part of the facility could be used for gaming). The specifics of the amended provision are our current rule as outlined above. The focus of this proposal is the limitation of the casino area to no more than 10% of the floor space for the proposed use. When working with the applicant on their project, it became apparent that the rule needs another review for two principal reasons. First, in order to reasonably function, there needs to be a certain minimum amount of area for machines and tables to be placed and people to flow. While the 10% limit appears to allow that for larger restaurants, smaller restaurants, especially those trying to redevelop existing space downtown, may not be able to generate enough casino area to properly function. Second, since the 2006 amendment was written, the typical types/dimensions of machines has changed. Previously, machines were generally 17 inches wide. Newer machines are generally 28 inches wide or wider, which means that more area is typically needed today to allow the same level of function that the ordinance contemplates. Please note that in Montana, a casino cannot operate more than 20 video machines. The proposal would not change any of the standards requiring screening or limitations on signage, neon lighting, and number of entrances. It is simply trying to get the existing rules to work more equitably for smaller restaurants. No one spoke at the public hearing regarding the amendment, although one written comment was submitted and provided to the Planning Board at the hearing. The proposal was forwarded to the Council with a positive recommendation on a 4-1 vote. The amendment was approved on first reading by the Council on a unanimous 7-0 vote. RECOMMENDATION: A motion to approve the requested amendment. FISCAL EFFECTS: Approval of the request would have minimal fiscal effect to the City. ALTERNATIVES: Deny the request, which would maintain the current maximum floor area for an accessory casino at 10%. Respectfully submitted, r P Sorensen Kalispell Planning Dept Report compiled: March 5, 2013 c: Theresa White, Kalispell City Clerk c: DewGood, LLC, P.O. Box 10007, Kalispell, MT 59904 ORDINANCE NO.1722 AN ORDINANCE AMENDING THE KALISPELL ZONING ORDINANCE (ORDINANCE NO. 1677), BY AMENDING SECTION 27.34.040, CASINOS, AND DECLARING AN EFFECTIVE DATE. WHEREAS, DewGood, LLC has submitted a written request to amend the Kalispell Zoning Ordinance, by amending the maximum percentage of floor area allowed for casinos as an minor accessory use; and WHEREAS, the request was forwarded to the Kalispell City Planning Board and Zoning Commission by the Kalispell Planning Department after having been evaluated under 27.29.020, Kalispell Zoning Ordinance; and WHEREAS, the Kalispell City Planning Board and Zoning Commission recommended that the text of the Kalispell Zoning Ordinance be amended so as to allow the maximum percentage of floor area for a casino to be twenty percent (20%) of another primary use; and WHEREAS, the City Council has reviewed the KPD Report and the transmittal from the Kalispell City Planning Board and Zoning Commission and hereby adopts the findings made in Report #KZTA-13-01 as the Findings of Fact applicable to this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. The City of Kalispell Zoning Ordinance, Ordinance No. 1677, is hereby amended as follows on Exhibit "A". SECTION II. All parts and portions of Ordinance No. 1677 not amended hereby remain unchanged. SECTION III. This Ordinance shall take effect thirty (30) days after its final passage. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 18TH DAY OF MARCH, 2013. ATTEST: Theresa White City Clerk Tammi Fisher Mayor EXHIBIT "A" 27.34.040: Casinos (1) Casinos shall be a minimum of 300 feet from churches, schools, parks, city residential zones, and other casinos, measured from property line to property line. (2) Casinos may be located closer than 300 feet from churches, schools, parks, city residential zones, and other casinos, measured from property line to property line if the casino is considered a minor accessory use and meets the parameters of both Sections 3 & 4 below. (3) A casino is considered a minor accessory use to a primary use if the primary use (e.g. restaurant or bar, but not shopping center or other multi -use designation) and its associated facilities constitute at least 80% of the proposed floor space and the casino constitutes no more than 20% of the proposed use. In addition, the casino is generally shielded or screened from view of the primary use and patrons. (4) The following design standards as appropriate may be placed on the casino: (a) Limiting or prohibiting the on -premise signage or building from using the following: 1. Any terms such as gaming, gambling, cards, dice, chance, etc. 2. Any reference to any associated activity or any symbols or words commonly associated with gaming. 3. Any words, terms, figures, art work, or features intended or designed to attract attention to the fact that a casino is on site. 4. Neon Lighting. (b) Limiting the number and location of entrances into the casino. (c) Increasing landscaping requirements in order to create a buffer between the casino and adjacent land uses.