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1. Casino Zone Amendments DiscussionPLANNING FOR THE FUTURE MONT"A REPORT TO: Doug Russell, City Manager FROM: Jarod Nygren, Senior Planner SUBJECT: KZTA 15-01 — Casinos Text Amendment MEETING DATE: October 12, 2015 Planning Department 201 V Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalisnell.com/planninE BACKGROUND: The City of Kalispell is proposing a text amendment to Section 27.34.040 of the Kalispell Zoning Ordinance. The proposed text amendment would develop additional regulations for casinos within city limits. Any property within the jurisdictional boundaries of the City of Kalispell, where casinos are allowed as a conditionally permitted use, may be affected by the proposed changes. The City of Kalispell is proposing the amendment to the Zoning Ordinance to address public comment received regarding casino development within the city. On April 27, 2015, the Kalispell City Council held a casino work session to discuss the issues raised by members of the public. The City Council directed staff to proceed to the Planning Board, so that potential casino amendments could be evaluated. The Planning Board held three work sessions (May 12, June 9"' and July 14th) where they discussed options to address the following four issues regarding casinos: 1. Number of casinos (24 existing/22 potential). 2. Concentration of casinos. 3. Protecting entrance corridors. 4. Certain areas of city should prohibit casinos when there is not a historical pattern of development. Throughout the work sessions, the Planning Board explored nine options to address the four issues mentioned above: Limiting new casino development to only the I-2 Zone; Permitting new casinos as only a minor accessory use; Extending the minimum spacing to 600 feet; Extending the minimum spacing to 400 feet; Limiting casino development to the B-5 Zone; Drawing a line north of U.S. 2 (Idaho) prohibiting any new casino development north of the line; Drawing a line along Airport Way/Twin Acres prohibiting any new casino development south of the line; Creation of a casino overlay district; and Corridor standards. Ultimately, staff prepared the staff report and recommended the following text amendments to Section 27.34.040 of the Kalispell Zoning Ordinance: 0 Change the minimum spacing from 300 feet to 400 feet which will disperse the casinos more. • Add #5 to Section 27.34.040, which will address sign standards for casinos located within a designated entrance corridor. • Add #6 to Section 24.34.040, which would prohibit new casinos north of a line generally situated 300' north of Idaho Street and south of a line generally situated at Airport Way, Twin Acres and FFA Drive. The lines are situated in these locations because it limits the number of nonconforming casinos, and allows for casinos in the area of the city where there is a historical pattern of development. The majority of the casinos are located within the two designated lines with two casinos (one on the north end of town and one on south end of town) that will become nonconforming and subject to the nonconforming section of the zoning ordinance. The Kalispell Planning Board held a duly noticed public hearing September 15, 2015, to consider the proposed text amendments shown above. Staff presented staff report KZTA-15-01 providing details of the proposed text amendments. Staff recommended that the Kalispell City Planning Board adopt the staff report as findings of fact and recommend that the Kalispell City Council approve the text amendments to the Kalispell Zoning Ordinance During the public comment portion of the hearing, two members of the public spoke regarding the proposed amendments. Both members of the public highlighted the adverse impacts of casinos and mentioned that accessory use casinos should also be included in the amendment. The two members of the public also requested clarification of the existing ordinances and proposed amendments. There being no further public testimony, the public hearing was closed and a motion was presented to adopt staff report KZTA-15-01 as findings of fact, and recommend to the Kalispell City Council that the proposed amendments be adopted as provided in the staff report. There was lengthy discussion regarding the proposed amendments. Some members of the board were not favorable of the boundary lines being created on the north and south end of town, where casinos would be prohibited. Their general consensus was that they did not want to concentrate casinos into one area of the city and felt that the sign regulations would mitigate their use, so prohibitions were not needed. A motion was moved and seconded that would delete the amendment to the ordinance that prohibited casinos north of a line generally situated 300' north of Idaho Street and south of a line generally situated at Airport Way, Twin Acres and FFA Drive. The motion passed 4 in favor and 2 opposed. There was additional board discussion regarding the possibility of increasing the minimum spacing from 400 feet to 600 feet. Discussion concluded that changing the setback to 600 feet, although not as prohibitive as the boundary lines, would disperse casinos more appropriately. A motion was moved and seconded to change the minimum spacing from 400 feet to 600 feet. The motion passed 5 in favor and 1 opposed. There being no further discussion, the original motion, as amended, passed unanimously on a roll call vote. RECOMMENDATION: It is recommended that the City Council discuss the proposed text amendments to Section 27.34.040 of the Kalispell Zoning Ordinance. FISCAL EFFECTS: Approval of the request would have minimal fiscal impact to the City. ALTERNATIVES: Deny the request. ATTACHMENTS: Minutes of the September 15, 2015, Kalispell Planning Board KZTA staff report and associated materials c: Aimee Brunckhorst, Kalispell City Clerk KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING SEPTEMBER 15, 2015 CALL TO ORDER AND The regular meeting of the Kalispell City Planning Board and ROLL CALL Zoning Commission was called to order at 7:00 p.m. Board members present were: Chad Graham, Charles Pesola, Matt Regier, Steve Lorch, Karlene Osorio-Khor and Doug Kauffinan. Rory Young was absent. PJ Sorensen, Jarod Nygren and Tom Jentz represented the Kalispell Planning Department. APPROVAL OF MINUTES Lorch moved and Kauffman seconded a motion to approve the minutes of the July 14, 2015 meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote by acclamation. PUBLIC COMMENT None. AGENCY EXEMPTION — Notice from the Flathead County Board of Commissioners that it FLATHEAD COUNTY intends to convert an existing single-family residence to a MAINTENANCE BLDG maintenance shop and garage at 1224 First Avenue West, Kalispell, Montana. The hearing is for the sole purpose of hearing public comment on the proposal, and the Board does not make any decision or recommendation on the matter. STAFF REPORT — KAE-15-04 PJ Sorensen, representing the Kalispell Planning Department, reviewed the staff report. Sorensen reviewed the state law that provides agencies exemptions for any agency of the state that provides notice that it intends to use land, contrary to what the local zoning ordinance would otherwise allow. The local jurisdiction sets a hearing providing a public forum to receive public comment to the agency. The board does not make any decision or recommendation on the matter. Sorensen continued the first request is for a single-family house, located at 1224 1st Avenue West, which the county is intending to use for a maintenance/storage facility. Sorensen reviewed the site plan and photographs of the site. There is no construction however there may need to be some ADA modifications. State law only exempts the agency from zoning requirements and not building, fire or ADA codes. PUBLIC COMMENT Linda Dale noted they own the property at 1304 1st Avenue West, which is a rental. She had the following concerns: • Noise • Alley utilities and large vehicles using the alley • 8 foot fence installation Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page I 1 Sorensen said there wouldn't be a lot of traffic in the alley since this is not a facility for the public, just the county maintenance employees. Mike Pence, Flathead County Administrator noted there would be approximately four employees who would use the facility and the equipment would be lawn mowers and small snow removal equipment. Pence added this would not be the main office for the maintenance department just for storing equipment. Vehicles could be parked at the county owned lot on the other side of the alley and this would also be where larger equipment would be stored. No damage will be done to the utility easement areas. It was noted that the 8 foot fence would only be on the alley side of the property. It is consistent with the fences on the city shops and Legend's Field. BOARD DISCUSSION None. AGENCY EXEMPTION — Notice from the Flathead County Board of Commissioners that it FLATHEAD COUNTY intends to construct an entry structure and signage at the Flathead FAIRGROUNDS SIGN County Fairgrounds at the entrance near the intersection of North STRUCTURE Meridian Road and Two Mile Drive. The property is located at 265 North Meridian Road. The hearing is for the sole purpose of hearing public comment on the proposal, and the Board does not make any decision or recommendation on the matter. STAFF REPORT — KAE-15-05 PJ Sorensen, representing the Kalispell Planning Department reviewed the staff report. Sorensen noted this item relates to an entrance structure and signage at the fairgrounds at the intersection of North Meridian and Two Mile Drive. Sorensen reviewed drawings of the proposed structure for the board. The reason they need the agency exemption is that there would be a 0 setback. PUBLIC COMMENT None. BOARD DISCUSSION None. CONDITIONAL USE PERMIT A request from Mountain Plains Equity Group, for a conditional - TIMBER MEADOWS use permit in order to construct a 40-unit multi -family (senior living SENIOR LIVING FACILITY facility) complex located at 41 Meridian Court, near the intersection of West Center Street. Board member Kauffinan recused himself due to a conflict of interest with his firm. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 12 STAFF REPORT Jarod Nygren, representing the Kalispell Planning Department, reviewed staff report KCU-15-03 for the board. Nygren noted the conditional use permit is a request to construct a 40 unit senior living facility in the B-1 (Neighborhood Business) zoning district. Multi -family residential units are allowed provided a conditional use permit is obtained. Nygren indicated that this property originally received preliminary plat approval as a six lot commercial subdivision in 2003. This site was to be accessed from Meridian Court with a city street that extended south onto 2nd Street West (Lot 13). Lot 13 was purchased by the developer and rezoned B-1 with the intent of developing it as a city street. However the project never went to final plat and has been abandoned. Lot 13 is still zoned B-1 but there are no plans to extend a city street through it. Nygren reviewed the surrounding zoning and growth policy designation and added this use conforms to the zoning and growth policy designation. Forty parking spaces will be provided, however they are only required to provide 28. Staff recommends that the Kalispell Planning Board and Zoning Commission adopt staff report KCU-15-03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the 12 conditions listed in the staff report. BOARD DISCUSSION Osorio-Khor asked if this facility would ever be used for assisted living and Nygren said the facility is for persons 55 or older but will not be an assisted living facility. She asked about the parking spaces that will be provided and Nygren explained the requirement for parking spaces for a facility of this type is one space per two units, however, the developer is supplying one space per unit — double what is required - plus additional spaces for guests and employees. PUBLIC HEARING Jason Cronk said he is the CEO for Immanuel Lutheran Communities which is a full -service retirement community that has been in Kalispell for 58 years. They offer independent living, assisted living, skilled nursing and memory care. Over the last several years they have realized the need for more affordable living for seniors who are on a low or fixed income. As a result they have made a plan to find a quality type of structure that they thought would be a great place for Kalispell seniors who would meet the criteria. It is more than just an apartment building it is a community that offers a standard of living that Immanuel Lutheran would be proud to operate. Don Stephan, President of Mountain Plains Equity Group stated Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 13 they are based in Billings although they serve a three -state area including Montana. They help provide financing for low income housing through, primarily the use of the low income housing tax credit program through the Montana Board of Housing. They do not have the tax credits yet and the application is due October 51n For a $7.4 million dollar project the tax credit financing will account for about $6.3 million. If they are successful in obtaining the tax credit financing they will then work with local bankers and lenders to make up the difference. This is senior housing facility — limited to seniors 55 and older. It is also income qualified so if you make too much money you would not be eligible to live in this type of facility, based on the median income of the area. Of the 40 units 20 are two -bedroom units and 20 are one -bedroom units. Osorio-Khor said she thinks this is a wonderful project and she is glad to hear that our community was picked because we are in need of affordable housing. Sterhan added the applications are due in October and the Board of Housing will make a decision in January of 2016. If they are successful they plan to break ground in the Spring. MOTION Lorch moved and Osorio-Khor seconded a motion to adopt staff report KCU-15-03 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the 12 conditions listed in the staff report. BOARD DISCUSSION Graham also thinks this is a well thought out project and he will be glad to have it in our community. ROLL CALL The motion passed unanimously on a roll call vote. TEXT AMENDMENT - A request from the City of Kalispell, for a text amendment that CASINOS would impose additional regulations on casino development within city limits. Doug Kauffman took his seat. STAFF REPORT — KZTA-15-01 Jarod Nygren representing the Kalispell Planning Department, reviewed staff report KCU-15-03 for the board. Nygren noted the text amendment would impose additional regulations on casino development within city limits and any property within city limits where casinos are allowed with a conditional use permit, would be affected by the proposed changes. The City of Kalispell is proposing the amendments to the Zoning Ordinance to address recent public comment received regarding casino development within the city. The public Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 14 comments stemmed from the new casino located on West Reserve Drive on the north end of town. April 7, 2015 the Kalispell City Council held a work session to discuss the issues raised by the public that relate to casinos in Kalispell and directed staff to proceed to the planning board to evaluate potential casino text amendments. The Kalispell Planning Board held three work sessions and public comment received included the following issues that needed to be addressed: • There are 24 casinos in the city with the potential of 22 additional casinos. The 22 figure comes from the existing liquor licenses within 5 miles of the Kalispell city limits and there are some liquor licenses within the city limits that are choosing not to operate a casino at this time, but could. • The current concentration of casinos within the city, protecting the entrance corridors, and noting there are certain areas within the city that should prohibit casinos where there is not a historic pattern of development. During the work session the board discussed nine options which included limiting new casino development to only the I-2 zones; permitting new casinos as only a minor accessory use; extending the minimum spacing to 600 feet or 400 feet; limiting casino development to the B-5 zone; drawing a line north of US Hwy 2 or Idaho Street, which would also prohibit any new casino development north of the line; drawing a southern line along Airport Way or Twin Acres prohibiting any casino development south of the line; creation of a casino overlay district and corridor standards. The board ultimately directed staff to proceed with the following amendments: 1. Increasing the minimum spacing from 300 feet to 400 feet; 2. Create gateway entrance standards; 3. No casinos north of the line situated 300 feet north of Idaho Street's northern R/W line; 4. No casinos south of the line generally situated at the R/W lines of Airport Way, Twin Acres Drive and FFA Drive Nygren provided more detail of the amendments for the board and members of the public who were present, and further detail of the boundaries proposed. He noted the sign regulations that would be applied to new casinos along entrance corridors are currently the regulations in the Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 15 existing zoning ordinance. Staff recommends that the Kalispell Planning Board adopt the findings of fact and recommend to the Kalispell City Council that the proposed zoning text amendments be adopted as provided in the staff report. BOARD DISCUSSION Lorch expressed his concern that the sign regulations would only pertain to casino development and not be the same for all businesses in the entrance corridors. Sign standards that apply to entrance corridors should apply to all businesses in the corridor. Jentz said the intent is to prevent the type of gaudy signage typically associated with casinos. Graham said when they looked at the B-5 zone it was noted it would create non -conforming uses and asked for clarification. Nygren said some members of the planning board didn't feel comfortable with creating non -conforming uses because it could create enforcement issues. Jentz added there was also a recommendation from the board that they didn't want to take a lot of businesses that today were legal and tomorrow they would be non -conforming, and limit their ability to expand in the future. Lorch said normally the expansion of a non -conforming use is an expansion of the floor space. He asked if staff anticipates that they would actually count the number of machines in a casino and Jentz said no, we haven't counted the number of machines in each casino in Kalispell. That is what they do in Whitefish where more machines would be an expansion of the use. Pesola asked how do the amendments apply to the new Town Pump in north Kalispell and Jentz said they are grandfathered in at this point and are protected. PUBLIC HEARING Mayre Flowers, Citizens for a Better Flathead, 35 4th Street West, Kalispell stated they appreciate the board's continued diligence on this issue. Flowers had the following comments: • They support the increase in buffer from 300 — to 400 feet however, under 92 they would suggest that the exception for the accessory use be removed so that accessory uses would also have to comply with the 400 foot distance requirement. • In addition the accessory uses should be within the boundaries that have been established for casinos. If you don't limit the additional accessory uses you are continuing to support the expansion of casinos in the community. • (3) — Second line — hotels should be added to this list as it Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 16 could be a very large use. Flowers suggested there may be a better way to define that section. Flowers asked for justification for the 80-20% use for accessory uses and if that should be reduced, particularly for buildings over a certain square footage; and the final sentence of 93 the word generally should be removed. • (4) The first sentence is missing a word or phrase; and as appropriate should be removed. • Page 2 — Is it appropriate to address the signage restrictions as a corridor -wide issue. • (4)(b) Limiting the number and location of entrances on a casino should be further clarified. • (5) Second line - remove the word "new" to read: "apply to casinos located..."; and within the 150 feet of the right-of- way should be replaced with: "along the right-of-way boundary". She added with the 150 R/W if the intent is to capture the impact of the signs along that corridor it might be better not to have the 150 feet included. • (6) The boundaries for the casino district should be clarified to the east and west. • Finally it would be important with the zoning district to clarify the position of the city and that the public does not support casinos lining the corridors from Whitefish to Kalispell and Kalispell to Bigfork/Lakeside. Most districts have a description of the definition of the district and it would be important particularly in guidance to businesses seeking annexation or when businesses come to the county for approval and need to be consistent with city zoning. Flowers noted the staff report particularly on Page 4 states: "The sign standards were created for minor accessory use casinos to mitigate the negative impacts associated with waiving the setback requirements normally associated with a casino." She would like some clarification on what setbacks have been waived. Jenny LaSorte, 275 Sulky Lane thanked the board for the work they have done to propose the amendments to restrict casinos within the City of Kalispell. She would also like to echo the remarks of Ms. Flowers in that she thinks it is extremely important to include minor accessory use casinos in those areas where they are prohibited or any restrictions would be negligible. LaSorte reminded the board members of her previous remarks of the adverse effects of gambling on the people who can least afford it, and she added the city officials are supposed to be looking after our interests. LaSorte added it is absolutely criminal that there are 24 casinos within the city limits of Kalispell and a little Vegas should not be created along the Highway 93 corridor from Kalispell to Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 17 Whitefish. She noted the tourists to this area want a family - friendly Flathead Valley and when you have that many casinos in one place it is not family -friendly. She concluded by saying please reconsider and prohibit minor accessory use casinos and she asked for an explanation of why the city isn't following the state standard of 600 feet between the boundary line of another casino, churches, schools, and parks. MOTION Regier moved and Kauffinan seconded a motion to adopt staff report KCU-15-03 as findings of fact and recommend to the Kalispell City Council that the proposed amendments be adopted as provided in the staff report. BOARD DISCUSSION Osorio-Khor asked if there is a state standard of 600 feet and PJ Sorensen said one of the important things to keep in mind is that when it comes to casinos their operations are governed by state law because they are tied to liquor licenses. The city can't do anything that is less restrictive than what the state requires so it is clear that the city is in compliance. He added the state does not measure from property line to property line but from door to door so under state law you could actually have two casinos immediately adjacent to each other, with a zero setback, as long as they put a door around the corner instead of on the same street. To avoid having odd results like that the city came up with 300 feet from property line to property line. Osorio-Khor asked about the setbacks and Nygren said for minor accessory use casinos the 300 foot setback (proposed to be increased to 400 feet) does not apply. Instead additional signage requirements were placed on the property that the required the casino use be separated from the main use, such as a restaurant or bar. Osorio-Khor noted the incomplete sentence in (4) and Nygren said that was a typo and it should read: "placed on the casino." Osorio-Khor asked if the city has a process for non -conforming use and Nygren said yes. She asked for a definition of minor accessory use which Sorensen provided. He also provided examples of accessory casinos such as the Montana Club, Brannigan's and the Hilton Hotel where they have casinos but it is accessory to the main use. The casino is screened and separated from the primary use, the size of the casino is limited to a certain percentage of the overall building, and the signage is limited. Osorio-Khor asked by keeping minor accessory use casinos in place would we be creating something that has no teeth and Sorensen said no because there are a limited number of licenses available so it is capped. Sorensen explained further. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 18 Osorio-Khor continued on (3) there was concern about the use of the word "generally shielded or screened". Sorensen said using the term "generally" has been in the ordinance for some time. When putting the ordinances together they try to maintain some flexibility for what makes sense down the road. The word "generally" allows evaluation of the proposal on the merits. She said she understood there was only one other opportunity for a casino and Nygren said within the boundaries yes, however accessory casinos could be allowed as the amendments are primarily written for stand-alone casinos. Osorio-Khor said the board has worked hard to determine what they want the city to be and it is not a little Vegas but a family - friendly community and to protect the corridors. She asked if the east/west boundaries have been clarified and Nygren said yes. He explained further and added the corridors are protected because any new casino would not be permitted south of the line and in between that boundary if there is an area where a casino could be located it would have to be within 150 of the R/W where the sign restrictions would apply. Nygren clarified the proposal is not for an overlay district but setting boundaries and sign standards. Lorch said he is concerned that the level of the regulation that is being proposed has not been vetted with the public very well. It could be a lack of interest, with the exception of the people who have regularly attended the meetings, which is appreciated, but he feels like it is something half -cooked to be sent to the city council. Pesola said he supports the expansion of setbacks but struggles with the need for the boundary lines and whether or not the sign restrictions should apply to all businesses. Graham agrees with Lorch regarding the lack of community participation. He also agrees with Pesola that he likes the increase in setbacks to 400 feet and the 150 R/W buffer however, he cannot support the amendment with the boundary lines included. There was lengthy discussion regarding the lack of public participation and not discounting the public that has participated; the boundary lines and uses that could change the boundaries in the future; not pigeon -holing casinos in one part of the city; and the negative impacts of gambling on citizens and the city. Jentz brought the board back to why they are here. The council voted 5-4 to approve the last casino on West Reserve because there was nothing in our books to stop it. Council sent the casino standards back to the planning board to work on it and staff Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 19 developed the amendments based on the board's input. It is the board's job to send a recommendation forward to the city council. Regier said he hasn't heard any positive comments to expand casinos so he will be supporting the amendments with the boundary lines. Further discussion was held. MOTION — DELETE (6) THAT Lorch moved and Pesola seconded a motion to delete (6) that ESTABLISHES BOUNDARIES establishes the boundaries where casinos would be prohibited. BOARD DISCUSSION Lorch said if you have the signage and visibility controls, the city is meeting that intent and it would preclude any significant casino from entering into any of those areas. Kalispell's market is pretty well saturated as well so he doesn't feel it is a major threat. He also agrees that different areas of Kalispell shouldn't be treated differently — it should be a standard that applies across all zoning districts. Osorio-Khor said she never saw this as putting one area in more jeopardy than another or that it discriminates and she doesn't want to lose site of the overall importance. ROLL CALL — DELETE (6) The motion passed on a vote of 4 in favor and 2 opposed. BOARD DISCUSSION Pesola said sending a proposal that has the setback change, while it may not encompass everything that everyone is looking for in the form of lines, it does bring something to the council to discuss. It will probably be a big issue for council no matter what the recommendation will be. Osorio-Khor thanked the citizens who came to the meetings and she appreciates that they took the time to participate and making the board aware of their concerns. Regier noted that without the boundaries these negative dots (casino locations) will just continue to spread. Regier suggested changing the setback to 600 feet instead of the proposed 400 feet. Lorch said he wouldn't support that increase because he doesn't see a major public outcry and the city council didn't say we should figure out how to stop them. Further discussion was held regarding the increase in the setback. Jentz noted that the major effect of increasing the setback makes more sense because we are not talking about the small lots in downtown but the larger suburban lots. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 110 MOTION — CHANGE (1) TO Regier moved and Graham seconded a motion to change (1) from 600 FEET 400 feet to 600 feet. ROLL CALL — CHANGE (1) The motion passed on a vote of 5 in favor and 1 opposed. ROLL CALL — ORIGINAL The original motion, as amended, passed unanimously on a roll MOTION call vote OLD BUSINESS: None. NEW BUSINESS: Jentz reviewed the items on next month's agenda. Jentz noted the Timber Meadows project will be on the October 51h council agenda however, the city council may wish to have a work session on the casino text amendments prior to it being scheduled. ADJOURNMENT The meeting adjourned at approximately 9:05 p.m. WORK SESSION: No work session was held. NEXT MEETING The next regular planning board meeting is scheduled for October 13, 2015 beginning at 7:00 p.m. and located in the Kalispell City Council Chambers, 201 1" Avenue East, Kalispell. Chad Graham President APPROVED as submitted/corrected: / 115 Michelle Anderson Recording Secretary Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page111 CITY OF KALISPELL — ZONING REGULATIONS KALISPELL PLANNING DEPARTMENT STAFF REPORT #KZTA-15-01 This is a report to the Kalispell City Planning Board and the Kalispell City Council regarding a request for a text amendment to Section 27.34.040 of the Kalispell Zoning Ordinance to develop additional regulations for casinos. A public hearing has been scheduled before the Planning Board for September 15, 2015, beginning at 7:00 PM in the Kalispell City Council Chambers, The Planning Board will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION A. Petitioner: City of Kalispell P.O. Box 1997 Kalispell, MT 59903 B. Area Effected by the Proposed Changes: Any property within the jurisdictional boundaries of the City of Kalispell where casinos are allowed as a conditionally permitted use may be affected by the proposed changes. C. Proposed Amendment: The changes to the current text of the code Section 27.34.040 are indicated below. Deletions are struck -out and additions are underlined. 27.34.040: Casinos (1) Casinos shall be a minimum of 00 feet _from churches, schools, parks, _ - - comment [JN1]: Planning Board changed to city residential zones, and other casinos, measured from property line to Boo feet property lute. (2) Casinos may be located closer than h40d feet from churches,_schools, _ - Comment []N2]: Planning Board Changed to parks, city residential zones, and other casinos, measured from property soo feet 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 casino: (a) Limiting or prohibiting the on -premise signage or building from using the following: Page 1 of 7 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, adjacent land uses. (5) On -premise sign standards as required by Section 27.34.040.4(a), shall apply to a new casino located within 150 feet of the right-of-way boundary_ of a gateway entrance corridor. The gateway entrance corridors are identified as Highway 93 North from Church Drive to Wyoming Street, U.S. 93 South from Auction Road to I Ph Street, U.S. Highway 2 from Spring Creek Road to Meridian Road and Whitefish Stage Road from Reserve Drive to Church Drive. (6) Casinos are prohibited north of a line extending 300 feet north of the northerly right-of-way line of U.S. 2 (Idaho) and south of a line beginning at the intersection of the West boundary of the Kalispell city limits and the South 1/16 section line of Section 19 Township 28 North Ran a 21 West - thence continuing easterly along the South 1/16 section line of Section 19 and 20 of Township 28 North, Range 21 West, to U.S. Highway 93; thence continuing easterly along Twin Acres Drive and FFA Drive in Section 20 and 21 of Township 28 North, Range 21 West, to the easterly Kalispell city limits boun _ - Comment []N31: Planing Board rernmed D. Staff Discussion: The City of Kalispell is proposing an amendment to the Kalispell Zoning Ordinance to address recent public concern regarding casino development within the city. A significant amount of public comment was received regarding a new casino located at 859 West Reserve Drive, necessitating review of the current casino regulations. The Kalispell City Council held a duly noticed Public Hearing on April 6, 2015 to consider a conditional use permit request from Eureka Town Pump, Inc, for a new casino. The council had a lengthy discussion regarding the proposed casino and whether or not it should be approved. Ultimately, the council voted five in favor and four opposed to approve the conditional use permit for the casino. The reasoning for the approval was based on the fact that the applicant had done their due diligence, and was within the rules of the city at the time the application was submitted. The majority of the council felt that it would not be fair to the applicant to delay their application while new casino regulations were Page 2 of 7 considered. Prior to this casino, there were no casinos located on the north end of town. There was a perception in the community that casinos were prohibited in areas where there has been no previous casino development. Contrary to what was perceived by the public, the city does not have a policy that would prevent the establishment of a casino in any location of town, as long as it meets the applicable regulations. This amendment seeks to address many of the issues brought up by the public while also balancing casinos right as a legitimate use. On April 27, 2015 the Kalispell City Council held a casino work session. At that work session a summary of the existing City of Kalispell casino regulations and other city regulations were provided for them to review. The generalized questions considered by council were whether the current regulations were sufficient, should minimum spacing be expanded, should overlay areas be created within the city, and should casinos be prohibited north of the U.S. 2 corridor. The options were briefly discussed and council felt that the ordinance options should be considered more thoroughly. Accordingly council directed the planning staff to take the issue before the Planning Board for their review. The Planning Board held three work sessions to discuss possible casino ordinance updates. Initially, the Planning Board looked at the ordinance options originally discussed at City Council and expanded on them to address the issues raised by the public. The possible ordinance update scenarios considered by the Planning Board included: 1) limiting new casino development to only the I-2 Zone; 2) permitting new casinos as only a minor accessory use; 3) extending the minimum spacing to 600 feet; 4) extending the minimum spacing to 400 feet; 5) limiting casino development to the B-5 Zone; 6) Drawing a line north of U.S. 2 (Idaho) prohibiting any new casino development north of the line; 7) Drawing a line along Airport Way/Twin Acres prohibiting any new casino development south of the line; 8) Creation of a casino overlay district; and 9) corridor standards. Ultimately, all of these scenarios were looked at to address the public comment that was received. Throughout the public process there was a significant amount of public comment received regarding casino development within the city and where they are located. Currently, there are 24 casinos within city limits. Only two of those casinos are located at the far north and south ends of the city, one of them being the recently approved casino located at 859 West Reserve Drive. The public was of the perception that casinos were prohibited at the north end of town, where new development had occurred without any casinos. When the new casino was proposed there was concern that the casino did not coincide with the existing development and historical nature of the area. Public comment received also emphasized the number of casinos already within the city limits, where they are concentrated primarily along the U.S. 2 and 93 South corridors. There was a growing concern in the community about the proliferation of casinos and they felt like the city was not doing enough to minimize their impact. Further complicating the issue is the number of potential casinos that could be within city limits. According to the Department of Revenue, a casino can be associated with an all beverage liquor license and beer and wine liquor license. There are currently 32 all beverage and 14 beer and wine licenses issued within city jurisdiction and within five miles of the city limits. Based off the number of licenses issued by the state, there is a potential for 46 (24 existing/22 potential) casinos within city limits. The additional 22 potential casinos come from the 8 Iiquor licenses within the city that are currently not choosing to operate a casino, and the 14 liquor licenses within five miles of the city that could move into city limits at any time. Page 3 of 7 The Planning Board discussed all the possible casino regulation scenarios and directed staff to move forward with the following: 1) Increase the minimum spacing from 300 feet to 400 feet; 2) create entrance corridor standards; 3) create a boundary line 300 feet north of Idaho where new casinos are prohibited north of the line; 4) create a boundary line at Airport Way and Twin Acres where new casino development would be prohibited south of the line. City of Kalispell casino regulations require that any new casinos have a 300 feet minimum spacing from churches, schools, parks, city residential zones, and other casinos measured property line to property line. The proposal is to increase the minimum spacing to 400 feet. One of the concerns of the public throughout the hearing process was proliferation and concentration of casinos within the city. A majority of the casinos within the city are located along the U.S. 2 and Highway 93 South corridors, which is the core of the city. Increasing the minimum spacing to 400 disperses the casinos more so as to create less of a concentration. State law requires a 600 foot spacing requirement; however, they use different measurement techniques which can be difficult to interpret consistently. A 400 foot minimum spacing measured property line to property line is easy to interpret and is not overly burdensome compared to state law. Gateway entrance sign standards for new casinos are being proposed. The proposed sign standards are the same as those that apply to minor accessory use casinos. The sign standards were created for minor accessory use casinos to mitigate the negative impacts associated with waiving the setback requirement normally associated with a casino. No changes are being made to the sign standards other than applying them to entrance corridors. The regulation proposed would place standards pertaining to signage on any new casino being proposed within 150 feet of the right-of-way of a designated entrance corridor. The designated entrance corridors are Highway 93 North from Church Drive to Wyoming Street, U.S. 93 South from Auction Road to 11" Street, U.S. 2 from Spring Creek Road to Meridian Road and Whitefish Stage Road from Reserve Drive to Church Drive. All of these corridors are used heavily by those that reside within the city and others visiting. The sign standards will enhance the community through improved design. Kalispell entrance corridors are scenic in nature and need to be protected and enhanced. These standards were placed on the new casino at 859 West Reserve Drive to mitigate the site's location on a transportation corridor, and proximity to other commercial developments. The new casino at 859 West Reserve Drive was the first casino north of the U.S. 2 corridor, Although historically there was never a casino on the north end of town, there were no regulations that would prohibit the use. Accordingly, the community voiced their frustration stating that certain areas of the city should be prohibited from future casino development. The Planning Board was clear that they did not want to make all existing casinos nonconforming by creating a district that prohibited casinos. To alleviate the Planning Board's issue and the public's concern, two boundary lines were created at the north and south ends of Kalispell where casinos would be prohibited because historically there has not been a pattern of development. The northern boundary line is situated 300 feet north of Idaho Street's northern right-of-way. The boundary line runs parallel to Idaho Street from west to east to city limits. The boundary line was situated in this location because it puts the line north of the commercial zoning along Idaho Street and does not create a nonconforming issue with a majority of the northern casinos. The southern boundary line is generally situated (legal description mentioned above) at the right-of-way lines of Airport Way, Twin Acres Drive and FFA Drive. Wbere Airport Way turns north the boundary line continues on a linear line following the southern boundary of Ashley Park Subdivision. Likewise to the northern boundary, the line was situated in this location because it does not create a nonconforming issue with a majority of the southern casinos. The proposed boundary lines are Page 4 of 7 shown in the attached Exhibit "A". The proposed boundary lutes create two nonconforming casinos, one on the far north end of town and one on the far south end of town. Those two casinos would be subject to the nonconforming section of the Kalispell Zoning Ordinance. The area in between the two lines is the area of the city where there has been a historical pattern of casino development. 22 of the 24 casinos are located within the two boundary lines and any new casino development would have to occur within that area. Minor accessory use casinos would not be impacted by these proposed amendments. 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. The proposed amendments would primarily affect stand-alone casinos, where the casino is the primary use of the property. The following report evaluates the amendment request in accordance with state and local regulations. The statutory basis for reviewing a change in zoning is set forth by Section 27,29,020 of the Kalispell Zoning Ordinance and 76-2-303 M.C.A. Findings of Fact for the zone change request are discussed relative to the itemized criteria described by 76-2-304, M.C.A. EVALUATION BASED ON STATUTORY CRITERIA Is the zoning regulation made in accordance with the growth policy? The Kalispell Growth Policy encourages the use of zoning as a tool for the implementation of the growth policy goals and objectives. The proposed amendment would generally promote the goals and objectives of the growth policy plan. 2. Does the zoniniz regulation consider the effect on motorized and nonmotorized transportation systems? The proposed amendment would not impact existing uses allowed in a district and would therefore have no impact to increase or lessen congestion. Traffic associated with casinos within the designated zoning districts would not generally be affected. 3. Is the zoning_ regulation designed to secure safety from fire and. other dangers? The proposed amendment would not reduce any safety provisions for fire or other health and safety issues since the use of a casino will still be required to obtain a conditional use permit. Through the conditional use permit process the proposed casino will be reviewed so as to not compromise public safety. Additionally, this amendment does not affect the fire and building codes that would be required prior to construction of a new casino. Is the zoning regulation designed to promote public health, public safety, and the general welfare? Page 5 of 7 The general health and welfare of the public will still be maintained if the proposed amendment is approved because casinos will still be reviewed as a conditional use permit, which includes an evaluation of the proposed use and whether it will be detrimental to adjacent properties and the neighborhood in general. Does the zoning regulation consider the reasonable provision of adequate light and air? Light and air between and surrounding buildings would not be altered or impacted by the proposed change. These issues would be addressed through the development standards of the various districts that deal with lot size, setbacks, building height and the types of uses allowed within the various zoning districts. 6. Is the zoning re elation designed to facilitate the adequate provision of trans ortation water, sewerage, schools, parks, and other public requirements? The amendment would not impact the availability of public services. A casino would still be required to obtain a conditional use permit prior to construction, at which time the applicable public services and utilities would be reviewed. 7. Does the zoning regulation consider the character of the district and its peculiar suitabilitX for particular uses? The proposed amendment does take into account the historical nature of casino development within city limits. The proposed amendments would prohibit development of casinos in areas of the city where there has not been a historical pattern of development, making them unsuitable. Casinos would still be permitted in areas where there has been a historical pattern of development. New casino uses would also be subject to increased spacing requirements. The increased spacing further disperses the casinos so they are not as concentrated within city limits. In addition, casinos would still be required to secure a conditional use permit which, during review, would determine if the particular site is suitable for the proposed casino. The public would be involved in the review process as well as the Kalispell Planning Board and Kalispell City Council. Does the zoning regulation consider conserving the value of buildings? The value of buildings will be conserved by encouraging compatible uses in these districts and implementing all the applicable standards that apply to new construction. The proposed amendment will not be detrimental to conserving the value of buildings. Does the zoning regulation encourage the most appropriate use of land throughout the municipality? The most appropriate land uses throughout the jurisdiction are promoted by encouraging complementary and compatible uses which promote the general well-being of all citizens of the community. The proposed text amendments encourage the appropriate use of land by prohibiting casinos from being developed in areas where there has not been a historical pattern of development. Casinos would still be permitted in areas where there has been a historical pattern of development. Additionally, the amendments further disperse the Page 6 of 7 casinos so they are not as concentrated within city tunits and protect the entrance corridors through improved sign design. Casinos will still be required to obtain a conditional use permit. Review of a conditional use permit request and subsequent hearings will provide the Planning Department, Planning Board and City Council with the oversight and regulatory authority to determine if a particular site is an appropriate location for a casino. RECOMMENDATION Stag recommends that the Kalispell City Planning Board adopt the findings in staff report KZTA- 15-01 and recommend to the Kalispell City Council that the proposed amendment be adopted as provided herein. Page 7 of 7 Exhibit A Church Or Church Dr a Church Ur - -- y. 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