How Zoning & Planning Can Help Main Street Efforts

By Joe Borgstrom, Director
Specialized Technical Assistance
& Revitalization Strategy (STARS) Division
Michigan State Housing Development Authority

Editor's Note: This week I have been privileged enough be involved in a conversation (via Facebook group) with a writer from Planning Commissioner’s Journal about how planning and zoning officials can aid in a community’s Main Street efforts. The following is an enhanced version of my response. I have linked to appropriate examples to help further illustrate my points. Click on the above Facebook group link to see the whole conversation.

Believe it or not, a number of communities’ zoning ordinances do not allow upper floor housing. Getting people living back downtown is a critical factor for a number of reasons. Here are the two biggest: 1) It significantly increases foot traffic and demand for goods and services downtown- thus making a bigger case for existing businesses to expand or to attract new ones. 2) By allowing the upper floors to generate new income, it lessens the need for the first floor commercial space to carry the full load of the mortgage payments for the building owner. Allowing upper floor income via housing significantly increases the cash flow an owner can use to make further improvements to their property and/or be able to be more flexible with potential commercial tenants. Some states (like Michigan) even have grants to help building owners renovate these upper floors into residential.

Communities should take steps to allow appropriate zoning for outdoor restaurant seating. This has two major benefits: allows a restaurant additional seating which translates directly into more $$$ which makes it more profitable (and desirable) to have an establishment downtown; and it increases the vibrant appearance of the downtown. The old adage goes, “Nothing attracts people like people.” People seeing other people enjoying outdoor dining makes them want to do the same.

Communities should include transportation considerations (traffic flow, volume, etc.) in their downtown’s plan, but it should not dictate it. Transportation experts are great at making sure people get from point A to point B in as little time and effort as possible. However, when it comes to downtowns, HOW they get from point A to point B can often make the difference between increased sales for merchants and making downtown a race track. Context sensitive designs can go a long way.

Another big thing planning and zoning officials can do to assist their Main Street’s efforts, in my opinion, is to throw out Euclidean-based zoning and establish Form-based codes. (The City of Miami's (FL) Miami21 project does a great job of comparing the two styles. Click here to see more.) In Michigan, our communities’ default thinking on infill or new construction is whether or not its use meets the B-1, B-2, or B-3 zoning. We don’t think about how the building fits in the surrounding built environment, whether or not its to scale with people (more often its to fit cars), if it makes use of a historic property or if its intent is mixed-use or not. This is the trap of Euclidean-based zoning. Form-based codes take all of these things into account and more.

I almost forgot the most important thing of all planning/zoning can do to help Main Street efforts: Get your downtown district on the National Register! This unlocks 20% federal tax credits (and newly minted additional 20% for Michigan credits) on properly done rehab projects on historic properties. This is a HUGE incentive for potential developers.

There are a multitude of ways planning & zoning officials can assist Main Street efforts. Always look to find common ground and achieve common goals. This makes everyone look good and, most importantly, does right by our communities!