City planner Kelly Schroeder told the Sheridan City Council on Jan. 13 that Wyoming Downs has applied to rezone 927 Coffeen Avenue (the former Ollie’s Pizza site) from B‑1 Business District to M‑1 Industrial District to permit gambling uses at the property.

Schroeder said the site is east of the interstate and north of Fifth Street and that the project was flagged when a building permit in fall 2024 raised zoning compliance questions. "Planning flagged the application as not being in compliance with our zoning regulations, because it was our interpretation that gambling was not a permissible use in the B‑1 zoning district," Schroeder said.

Schroeder described the parcel as adjacent to M‑1 zoning and noted the city’s future land‑use map designates the area as commercial. She said staff discussed options with the applicant, who chose to pursue a rezone to M‑1. "A rezone to M‑1 would be compatible with surrounding properties and the proposed land use of gambling," Schroeder said, while acknowledging the city is working on updates to the M‑1 district to prevent heavy industrial uses on Coffeen Avenue.

Schroeder said staff sent notices to 16 surrounding property owners and received one letter from Legacy Pregnancy Center opposing the rezone. She told council that the applicant’s agent (WWC) and Wyoming Downs were discussing splitting the cost of a fence with Legacy Pregnancy Center to address privacy and safety concerns. "Their biggest concern was keeping their clients safe, and having privacy for their clients," Schroeder said when summarizing Legacy’s objection.

Council members asked whether nearby existing businesses that sell alcohol and allow gambling, such as the Derby Club, are in conformance. Schroeder said Derby Club is zoned B‑1 and that the city has contacted that property about bringing it into conformance; she said Derby Club has not submitted a rezone application.

Police Chief (unnamed) told council the department receives calls for service at locations where alcohol is consumed and said he understood Legacy’s concerns but could not state definitively whether the pregnancy center should be concerned. Several council members encouraged Wyoming Downs to remain a good neighbor and to continue working with Legacy on mitigation measures.

No final council vote on the rezone occurred during the study session; Schroeder said the matter will proceed to planning commission and be brought back to council for formal action.