Sheridan council clears second reading to rezone Coffeen Avenue property for Wyoming Downs; debate over spot zoning continues

Sheridan City Council approved the second reading of Ordinance 2291 (PL 24‑35) on Feb. 3, moving a request by Wyoming Downs to rezone property at 927 Coffeen Avenue from B‑1 (business) to M‑1 (industrial) forward to a third reading Feb. 18. The council recorded six votes in favor and one opposed.

The rezone request was filed after planning staff flagged a building permit and an earlier liquor‑license transfer that identified “gambling” as the primary use, which staff said was not permitted in the B‑1 district. City Planner Kelly Schroeder told the council the rezone was the applicant’s path to bring the property into compliance. “Planning is now included in, the review of any liquor license applications so that we can, catch these things before they get to this point,” Schroeder said.

Why it matters: opponents said the change would create a small M‑1 island surrounded by B‑1 property along Coffeen Avenue and could set a precedent for spot rezoning in an area that the city has been working to keep free of heavy industrial uses. Legacy Pregnancy Center submitted a letter of opposition; its director, Marine Metcalfe, told the council Legacy had not negotiated a fence with Wyoming Downs and pushed back on what she described as a conditional offer. “Legacy is not nor have we been in negotiations with Wyoming Downs for a fence,” Metcalfe said. She added that an offer that would allow the applicant to “control the size, proximity, contractor, and the type of material” was not acceptable to Legacy.

Applicant and supporters said the rezoning is practical given surrounding M‑1 zoning nearby and the applicant’s planned investment in the site. Casey Terrell, attorney for Wyoming Downs, said the company is putting money into renovations and argued M‑1 is the correct zoning if the city interprets B‑1 as excluding the proposed use. “Wyoming Downs is investing, I think, north of $1,500,000 in renovating this property,” Terrell said. Project manager Dusty Korn said Wyoming Downs’ general counsel will attend the third reading on Feb. 18.

Planning process and public notice: Schroeder reviewed the city’s rezone notice procedures and said the city published legal ads as required by state statute and mailed courtesy notices to property owners within 300 feet (the city said the owner list comes from county assessor records and may include PO boxes or out‑of‑area addresses). She also noted planning commission recommended approval after a January public hearing; the city reported it mailed notices to 16 surrounding property owners and received one written opposition from Legacy Pregnancy Center.

Fence dispute: The applicant offered to provide a privacy fence as a mitigation measure; Terrell said the company offered up to $30,000 for a six‑foot vinyl fence to address privacy concerns. Legacy provided the council a separate estimate indicating a more extensive fence and landscape solution it said could cost about $150,000; Legacy said the two sides were not negotiating. Terrell said Wyoming Downs remains willing to discuss options. “If it would make Legacy happy, we could consider talking about it. I don’t have authority to say that we would definitely do it one way or another,” he said.

Council concern and vote: Councilors discussed whether the change would amount to spot zoning and whether the existing split zoning on adjacent parcels affects the analysis. Opponents pointed to the property’s proximity to Coffeen Elementary School; one speaker noted the property is “less than 500 feet away” from the school. After extended discussion and public comment from Legacy Pregnancy Center, a supporter of Legacy and the applicant, the council approved the second reading and scheduled the third reading for Feb. 18.

What’s next: The ordinance will return for a third reading and final consideration on Feb. 18. If rezoned to M‑1, the city said pending updates to the M‑1 regulations would require heavy industrial uses to obtain a special exemption from the Board of Adjustment and meet findings of fact intended to limit incompatible uses.

Votes at a glance: Second reading of PL 24‑35 / Ordinance 2291 (Wyoming Downs, 927 Coffeen Ave.) — motion approved; roll‑call votes recorded as: Council member Wood: yes; Council member Lumen: yes; Council member Weitzel: yes; Council member Patzak: no; Council member Brance: yes; Council member Lightnam: yes; Mayor Bridger: yes. Third reading scheduled Feb. 18.

Community context: The council and planning staff said the rezone request has stretched existing local debate about M‑1 uses along Coffeen Avenue and how to address future land‑use transitions in the corridor. Several councilors said they will continue to review the pending M‑1 code revisions and consider neighborhood impacts before the final vote.