Chapter 2.3
Fresh Water Coastal Hazards

• ALL
• Remove Code Barriers
• Create Incentives
• Fill Regulatory Gaps

Preferred Development Sites

INTRODUCTION

Preferred development areas, also known as priority or target development areas, are locations that have been identified by a local government as favored for residential, commercial, and office growth based on adopted growth management policies and plans.[1] Development can involve new construction, redevelopment, and adaptive reuse of buildings.[2] Local governments may offer incentives, such as reduced fees or increased housing density, to developments in these areas in order to make them more attractive to developers. Local governments may choose where to best situate these areas, but often they specify that they be near public transit or existing infrastructure in order to promote utilization of public facilities, keep development costs as low as possible, and steer growth away from critical wildlife habitats. In addition, local governments often place design standards on new construction in the preferred development areas in order ensure compatibility with the existing developments.

Although similar to urban growth boundaries, these proposed ordinances are distinguishable in that instead of restricting development outside the urban growth boundary, plans or development code provisions identify the preferred development area. Any development within the area may qualify for incentives provided it accomplishes the goals and regulations of the designated area (see Create Urban Growth Area). The preferred development areas may be implemented through overlay zoning districts that can encompass more than one base district. In these areas, local governments may also place additional restrictions that cover a wide array of issues such as provisions addressing affordable housing.

EFFECTS

Prioritizing development in specific areas that encourage mixed-use and compact developments allows a community to limit sprawl and protect wildlife habitat. By concentrating development to areas that are already largely developed and serviced by utilities, natural resources consumption is limited.[3] There are many other benefits in addition to helping preserve wildlife habitat.  For example, development costs for both the developer and local government may be decreased.  Moreover, because sprawl promotes the separation of uses and automobile reliance, by facilitating development in mixed-use areas local governments can reduce the number of vehicle miles traveled, thus reducing greenhouse gas (GHG) emissions.[4] Additionally, different modes of transportation (walking, biking, etc.) become more feasible and traffic is reduced.[5] Creating compact, walkable environments can encourage healthier levels of activity and social interaction.[6] Furthermore, prioritizing redevelopment and adaptive reuse of buildings ensures that a community is able to preserve some of its historical characteristics.[7]

These proposed ordinances also offer local governments a great amount of flexibility. Depending on the specific needs of a community, local governments can tailor a district to meet the community’s values. For instance, the area could provide incentives for housing developments in areas that have a low supply. Further, creating incentives for business or commercial developments can lead to increased job growth. In short, local governments can tailor these areas to promote a variety of community goals that are relevant to numerous critical sustainability issues, including climate change, affordable housing, and biodiversity.

EXAMPLES

Norwich, CT

Norwich established an Incentive Housing Overlay (IH) district in order to encourage housing affordability in residential and business districts that have the necessary infrastructure and connections to transportation to support new development.[8] The City has also established three subzones within the IH districts in which different uses are permitted.[9] The subzones—townhouse, multi-family, and mixed-use—may overlay each other as well as the underlying district.[10] Developments in an IH district are subject to increased bulk requirements that vary according to the density level and type of use. For example, mixed-use developments in a level one density area are permitted either a 25% increase in bulk requirements or thirty units per acre, whichever is higher.[11] Housing only developments in a level one density area are permitted a 15% increase in bulk requirements.[12] Additionally, developments in an IH district, where the underlying district is also residential, may be subject to reduced setback requirements.[13] The city also places restrictions on development within these districts. For private applicants, at least 20% of all dwelling units are required to be “sold or rented at, or below, prices that will preserve the units as housing for which persons pay 30[%] or less of their annual income, where the income is less than or equal to 80[%] or less of the median income,” for at least thirty years after their initial occupancy.[14] For public applicants, 100% of dwelling units are subject to the price restriction.

To view the provision, see Norwich, CT Code of Ordinances § 3.9 (Current through 2018).

Milford, DE

The city of Milford established a Downtown Development District incentive program that provides incentives for any new residential or commercial construction, redevelopment, or expansion provided that it meets the following criteria: located in the target area, material and labor cost exceed $15,000, is for commercial, office, and/or residential use, and conforms to the intent of the ordinance.[15] The target area is the Downtown Development District.[16] Qualifying developments are subject to a full waiver of impact fees, as well as one-time waivers of building permit fees and fees associated with preliminary or final site plan review.[17] Additionally, incentive beneficiaries may receive property tax abatements for up to ten years.[18] New construction projects are permitted full tax abatements from City property taxes for five years.[19] Rehabilitation projects that improve the value of the property by more than 50% can receive full tax abatements for ten years, while those that improve the value of the property less than 50% receive partial abatements for ten years.[20]

To view the provision, see Milford, DE Code of Ordinances § 19-9 (2018).

ADDITIONAL EXAMPLES

Costa Mesa, CA Code of Ordinances § 13-83.62 (2016) (establishing a residential incentive overlay district permitting higher-density residential uses).

Corpus Christi, TX Unified Development Code § 6.12 (2011) (establishing a target area redevelopment special overlay district in order to encourage and facilitate the rehabilitation of distressed neighborhoods).

Milwaukee, WI Code of Ordinances § 295-1007 (2016) (establishing a development incentive overlay zone to promote compatible new developments and a pedestrian-friendly environment).

Hartsville, SC Code of Ordinances app. A, art. IX § 15 (2016) (establishing a strategic investment overlay zone in order to accommodate growth by encouraging development on vacant or underutilized parcels).