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A common question that makes it to the desks of many elected officials: Wouldn’t it be great if that underused area in town could somehow be transformed into a special place that attracts new residents and drives revenue for the community?
Or maybe it’s the opposite problem, one of trying to preserve the special place that already exists. When property rights go unchecked, city councils may be surprised when a private developer proposes a potentially controversial plan. They may not have as much control as they thought over the future of their community.
Instead of reacting to outside economic pressures or proposals, communities can proactively create a long-term vision that reflects citizens’ needs, tastes, and desires.
Zoning, usually part of a larger and more comprehensive land use code, is a type of law that determines how land can be used within districts in cities and towns throughout the United States. Zoning and land use maps are available to the public, so property owners understand the parameters for what they can build and the types of businesses they can operate.
Zoning codes can also serve as structures through which cities can collect additional taxes to reinvest in their districts to incubate growth. This is how some cities in the U.S. implement visions for a variety of entities, including new entertainment or business districts, which in turn support broader, citywide economic development initiatives that support the quality of life of residents.
While the concept is logical and, many times, helpful for cities and residents, the historical execution of zoning is complicated.
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The concept began back in the early 1900s when retail shops started buying out the mansions that once lined Fifth Avenue in New York City. This area became the high-end fashion district that it remains today thanks to the city’s zoning code, according to the Manhattan Institute.
City officials developed the protective code when store owners took exception to garment manufacturers setting up shop in the same area. The industrial workers made white-gloved shoppers uncomfortable and threatened the retail district’s economic development.
New York City’s zoning code was so effective in limiting land use turnover and influencing the look and feel of the area that other cities followed suit and developed their own codes. In the following decades, many states created planning laws that required cities to codify land use and zoning.
But history has shown that there are downsides to traditional zoning districts. Putting “like with like” has unintended consequences over time.
Zoning Issues Include:
Segregation: Both economic and social segregation are underscored and reinforced by zoning laws. Limiting multi-family and rental housing to less desirable areas often results in racial segregation as well.
Environmental Degradation: Urban sprawl also negatively impacts the natural areas within a community. Habitat loss, increased stormwater runoff from more asphalt, and fragmented ecosystems make regions less desirable to humans, animals, and plants alike. More cars also mean worse air pollution and carbon emissions.
Urban Sprawl: Low-density residential zoning codes spread out housing, leading to an increased dependence on cars, longer commutes, and greater public infrastructure costs.
Reduced Housing Affordability: Zoning can limit development with minimum lot size requirements or bans on apartment buildings, which in turn restricts the housing supply. This drives up prices and makes housing sometimes totally unaffordable to large parts of the community.
What’s more, outdated zoning codes can also stifle innovation and even cause unnecessary legal and administrative costs for cities.
By the early 1980s, trends in new urbanism offered an alternative. Cities and towns started to create mixed-use districts to allow residential and commercial structures on the same property. These compact, walkable districts offset the otherwise common suburban sprawl, providing new economic opportunities as well as lower costs for public services.
The following examples showcase cities that are using zoning as a tool to both protect and preserve the character of their communities and drive economic growth.
Sometimes, stifling growth isn’t a bad thing for the local economy. City officials in the town of Eureka Springs, Arkansas use zoning to protect its historic downtown from uses that would detract from the tourist-friendly bathhouses, restaurants, and shops.
“We’re very restrictive with our historic zoning. That’s our number-one attraction to the town,” said Terry McClung, a longtime city councilmember and a real estate broker in the area for almost 50 years. “In our residential neighborhoods, we use zoning as a tool to prevent homes from being opened up as short-term vacation rentals.”
Councilmember McClung said they also use zoning-specific spaces to create solutions for residents. When a new pawn shop proposed an unpopular request to sell guns along the commercial corridor of the town’s main highway, the planning commission was able to use the zoning code as a reason to turn down the variance request. (However, the property owner filed an appeal that’s still ongoing in court, the councilmember added.)
And when investors proposed turning a motel into long-term housing rentals for workers, it was the zoning code that welcomed multi-family units as a creative solution to the affordability crisis. The city’s code allowed for the apartments to be developed in the commercial corridor away from the historic downtown.
In this way, the city council used “zoning as a tool” to solve problems that come from balancing the desires of the 750,000 annual visitors with the needs of the 2,100 full-time residents, he explained.
“There are several motels that have been purchased and reconditioned as living quarters, because housing for the employee sector, the workforce housing, is really limited,” he said. “It’s the toughest equation we’ve ever come across.”
While the town’s residential zoning codes allow for smaller lot sizes than normal, development is still limited by the hilly terrain and limited commercial structures. To combat rising housing costs, city officials used the zoning code to prevent investors from buying up homes to rent to vacationers.
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Changing laws is never an easy endeavor — and for good reason. Old zoning, designed to preserve the status quo, can be an obstacle for planners and elected officials interested in bigger ideas for change within city limits. The trick, said Mayor Knox White of Greenville, South Carolina, is to listen to residents and be dynamic.
“Zoning has a huge impact on how a community grows,” he said. “We did a good job identifying issues, and we made a case that the best way to address the issues is to rezone the city top to bottom.”
Like many cities, Greenville had a “patchwork” zoning code that was last given focus back in the 1970s. So, Mayor White said it wasn’t a hard sell to encourage residents to embrace change rather than continue on with what some considered an outdated vision for the city.
By working with a private consultant and a forward-focused planning director, the council eventually voted on a plan that included creating mixed-use districts outside of downtown. They spent a lot of time gathering public input with the help of a large citizen committee. Listening actively to concerns and visions helped its success.
The whole process took about a year, which he knew was faster than other cities that embarked on similar efforts.
One reason the process was smooth was that through understanding resident concerns, city leaders were proactive in developing solutions through their policies. For example, the city provided frequent code reviews in the legislation to check if new growth patterns impacted issues like traffic and affordable housing.
The new zoning codes also allowed the city to collect Tax Increment Financing (TIF) funds. These TIF funds were funneled into public investments like streetscapes and widened sidewalks that enhanced the area. Today, green spaces like Falls Park on the Reedy and new private investments throughout the city continue to show that a renaissance is possible with the right effort.
“Zoning by definition injects rigidity into any growth pattern, and that’s a criticism of people who don’t like traditional zoning,” Mayor White said. “But our process itself wasn’t rigid. Our document is a living document. We are giving ourselves more flexibility.”
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