Developing a business project is complicated. There are a million steps in converting an idea into an operating business entity. Steps get skipped. Many can be returned to. Some steps, however, are so critical they cannot be skipped.
Too often, entrepreneurs spend dozens of hours and tens of thousands, and on occasion, hundreds of thousands of dollars, investing in buildings, remodel costs, and acquiring other assets only to find too far down the line that the business they’re proposing to operate in a location will never be allowed by the local, jurisdictional governing entity like a planning or zoning department.
In child care, one of the first things people think about is licensing, so they turn to the state’s licensing agency. But don’t conflate state licensing with local, jurisdictional licensing. They are not the same. And in some jurisdictional cases, how local communities define child care differs from state regulations.
A business idea always has two sides to a coin, but it’s always one coin. One side is the idea. The other side is where the idea will be implemented.
The physical location of a building, a home or a commercial site is important because rules and definitions vary by jurisdiction. Just because a building appears to be within, for example, city limits, do not assume it is. Unincorporated plats of land exist within traditional boundaries of a city. And definitions can vary widely by jurisdiction.
Let’s explore why building a relationship early and engaging often with your community’s planning and zoning department is not only necessary, but vital, to ensuring you’ll be able to do what you’re proposing to do in the place you’re proposing to do it.
The Importance of Zoning and Planning Departments
Zoning and planning departments ensure that land is used in a way that promotes orderly growth, protects public health and safety, and preserves the character of neighborhoods.
When you propose to start, relocate, or expand a childcare facility, the first step is to check with your local zoning department to determine if childcare is an allowable use on the property in question.
This involves reviewing the zoning ordinance, which is a set of laws that define how properties in specific geographic zones can be used. Zoning ordinances are designed to separate incompatible land uses and ensure that new developments are in harmony with the existing community.
Common Zoning Types
Local jurisdictions typically have several zoning categories, each with its own set of permitted uses.
Residential (R) Zones: These zones are primarily intended for housing. Variations exist for single family and multi-family developments. Childcare facilities may be allowed in residential zones, but there may also be limitations.
Family child care (FCC), such as Relative Care Exempt (RCE), Family-Friend, Neighbor (FFN), Family (F), and Group (G) are likely eligible uses in residentially zoned areas. The creation of a Center (C) might be limited in Residentially zoned areas.
Commercial (C) Zones: These zones are designated for businesses and commercial activities.
Childcare centers are often permitted in commercial zones, especially in areas with high foot traffic, such as near shopping centers or office buildings.
Some childcare program types might be restricted or only allowed conditionally.
Industrial (I) Zones: These zones are intended for manufacturing and industrial activities. Childcare facilities are generally not permitted in industrial zones due to safety concerns and the nature of surrounding businesses.
Think about this one for a moment. If heavy machinery or manufacturing facilities are common in these areas, is it the safest place for children? Perhaps not. This is why we need to know more about how a community defines this zoning type.
Mixed-Use (MU) Zones: These zones allow for a combination of residential, commercial, and sometimes light industrial uses.
Childcare facilities may or may not be allowed depending on the mixed-use zone type, but specific regulations will vary by jurisdiction.
Permitted Uses, Conditional Use Permits, and Non-Permitted Zones
Understanding the different types of zoning permits and what they entail is the next detail for childcare professionals to understand. These help determine additional time or cost considerations:
Permitted Uses: These are uses allowed in a particular zoning district. Permitted uses may also vary by your program type (RCE, FFN, F, G, or C). Jurisdictions typically differentiate allowable uses by zone type based on the number of children in the program at any one time.
If childcare is permitted where your property is located, you can proceed with your plans, subject to compliance with other local health or safety regulations and building codes.
Conditional Use Permits (CUP): These permits allow for use not typically permitted in a zoning district but may be allowed under certain conditions.
Obtaining a CUP involves a review process, leading to more time and money, where the planning commission or zoning board evaluates the proposed use to ensure it will not negatively impact the surrounding area. Conditions may be imposed to mitigate any potential issues, such as traffic volume or noise based on the time of day.
Non-Permitted Zones: These are zones where childcare facilities of any type are not allowed under any circumstances.
If your desired property falls within a non-permitted zone, you will need to look for an alternative location or consider applying for a zoning variance, which is a request to deviate from the current zoning requirements. Don’t assume a jurisdiction will be willing to spot zone or waive zoning requirements. It’s worth asking, but be prepared for the answer to be no. This is where we see the most mistakes being made, time wasted, and money spent that will never be able to be recaptured.
Steps to Ensure Compliance
To ensure your childcare facility is compliant with local zoning laws, follow these steps:
Consult with the Zoning Department: Reach out to your local zoning and planning department to discuss your plans and determine the zoning classification of your property.
Review the Zoning Ordinance: Some jurisdictions have color-coded zoning maps and definitions published on a website. Reviewing those maps might be a good place to start but always seek confirmation directly from the source. Obtain a copy of the zoning ordinance and review the sections relevant to childcare facilities.
Apply for Necessary Permits: If your property requires a conditional use permit or zoning variance, prepare and submit the necessary applications. Be ready to provide detailed information about your proposed facility.
Here’s an example.
I live in Great Falls. To find my jurisdiction I entered “Great Falls MT Zoning Planning” into a search engine. The City of Great Falls Planning and Community Development Department website came up (https://greatfallsmt.net/planning/city-planning).
By clicking on the Zoning Map, I’m able to see the city’s color-coded map and enter an address into the search bar or click on a color. The map shows incorporated and unincorporated parts of the community. The colors visually define how areas are zoned.
I can then click on a color to have it tell me what the zoning for that area is. In the below example, the zoning is Commercial-2 (C-2) General Commercial.
For the City of Great Falls’ Planning and Community Development Department, their Zoning Map is accompanied by an Allowable Uses Chart linked on the same page.
The Allowable Uses Chart contains a table of uses. Child care facilities in Great Falls are referred to as Day care center, Family day care home, and Group day care home. The table indicates a P, a C, or a “-” to indicate if this use is allowed by zone.
We can then see where Centers, Family, and Group programs are Permitted (P), Conditionally (C) permitted, or Not Permitted (“-”).
Therefore, if the property you are looking at is in one of those zones, you can tell what might be allowable.
Conclusion
The example above, is not representative of all communities or jurisdictions.
Some, not all, jurisdictions (cities, counties, or towns) across Montana have something similar on relevant websites. Terminology and allowable uses will vary. Definitions will also vary. Additionally, the ease of use for these types of websites likely varies as well.
It is also important to not use a website as a confirmation, rather an indication, of what is possible. Go to the office location and talk directly with a person rather than relying fully on what is posted on a website. Rely on documentation from the office itself and follow the required procedures.
Many Planning, Zoning, or Community Development professionals may work within another department in a community. So, if you can’t find something online, go in person. These offices are often located in a community’s Civic Center, Town Hall, or another public building.
We recommend working with real estate professionals knowledgeable about residential and/or commercial properties when doing location analysis. However, it is always best to also work directly with the jurisdictional source to ensure you’re able to do what you’re proposing to do in the place you’re proposing to do it.
This level of upfront, early and often, due diligence will help you avoid potential pitfalls and ensure your time, effort, energy, and investments into a property can actually be done.
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Jason Nitschke is Zero to Five Montana and Montana Child Care Business Connect’s Senior Child Care Business Advisor. He is a nationally recognized economic development professional and former business owner.
Montana Child Care Business Connect is funded under a contract with the Montana Department of Public Health and Human Services. The statements herein do not necessarily reflect the opinion of the department.
