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09-15-15KALISPELL 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 Kauffman. 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 1" 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 1" Avenue West, which is a rental. She had the following concerns: • Noise • Alley utilities and large vehicles using the alley Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page I 1 • 8 foot fence installation 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 Kauffman 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-I 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-I 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 Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 13 would be proud to operate. Don Stephan, President of Mountain Plains Equity Group stated 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 5th. 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 KZTA-15-01 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 Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 14 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 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 Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 15 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 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 Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 16 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 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. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 17 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 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 Kauffman seconded a motion 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. 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, Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 18 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. 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. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 19 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 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. Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 110 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. 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 5t' 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. /s/Chad Graham Chad Graham President APPROVED as submitted: 10/13/15 /s/Michelle Anderson Michelle Anderson Recording Secretary Kalispell City Planning Board Minutes of the meeting of September 15, 2015 Page 111