County approves zone change reached in settlement with helicopter service, residents

The Yellowstone County commission voted unanimously to approve a zone change to highway commercial for a 20-acre parcel with frontage along Highway 3, west of the Billings Logan International Airport. The parcel had been zoned agricultural open space and is currently used for dryland grazing.

Commissioners followed the recommendation of the zoning commission.

Before the public hearing began, Commission Chairman John Ostlund again disclosed his longtime friendship with brothers Al and Gary Blain and the Blain family, who own and operate Billings Flying Service. Ostlund referred to an earlier county attorney’s letter saying there was no reason for him to abstain as long as he disclosed his ties to the Blains. Ostlund said he would vote based on the evidence.

Commissioner Robyn Driscoll thanked the parties for reaching a settlement. “I think you guys arrived at a great solution,” she said.

BFS sought the original zone change that involved 58 acres of private land west of the airport and north of Highway 3. The new zoning changed 18 acres on the northern portion to public zoning for the location of BFS and a helipad, 20 acres in the middle of the parcel to controlled industrial zoning and left 20 acres along Highway 3 frontage as agricultural open space.

The county commission in May approved the zone change, which drew strong opposition from residents and others who said the change was spot zoning, violated regulations regarding public zoning and would harm residential property values.

BFS began construction for its new headquarters in late spring and is expected to open later this fall, said Tyler Dugger, of the Tolliver Law Firm, which represents Aviation Properties LLC. BFS is an international helicopter flying and service company that has operated on the Blain family farm at 6309 Jellison Road for 52 years. The company, which owns and operates Chinook helicopters, is expanding and wanted to be closer to the airport.

Highway commercial zoning allows for mixed uses of residential, service businesses, retail, wholesale, offices, schools and other uses, said Nicole Cromwell, a planner and zoning coordinator for the City County Planning Department. Highway commercial zoning is found throughout Billings and in areas of the 4.5-mile jurisdictional area outside of the city.

The highway commercial zoning proposal drew only two comments during Tuesday’s public hearing — both from attorneys who represented parties in the lawsuit and who backed the zone change.

The latest zone change request for highway commercial was “a critical component” for negotiating a settlement with residents, Dugger said.

Aviation Properties, Dugger said, had pledged to cooperate with residents to find a solution and that the highway commercial zone is a “natural zone” for the future. “That cooperation has been met,” he said.

There are no immediate development plans for the 20 acres, Dugger said.

Tim Filz, a Billings attorney who represented the residents, told commissioners an agreement has been reached to settle the lawsuit. “We do believe it is the logical zone change. Hats off to Aviation Properties for negotiating a fair and reasonable deal,” he said.

Filz also noted that Yellowstone County Chief Deputy Attorney Dan Schwarz helped in the negotiations.

While Yellowstone County was named as a defendant in the lawsuit, the county is not a part of the settlement. However, the county will not oppose the dismissal of the suit, effectively settling the case for all parties, Dugger said. Motions to dismiss the case are expected to be filed in state District Court in early October, he said.