What is it?
In 2018 the Asheville department of planning and urban design started with its proposal for a comprehensive plan to transition key areas of the city into what they call “Urban Centers”. The overall goal is to create a new zoning category to add value through denser land development patterns that also support a more walkable landscape as well as being more public transportation friendly.
What is happening at the moment with this idea?
In phase 1, properties would be rezoned to Urban Place zoning district… the plan is to continue to develop the zoning details over the coming months. Keep in mind this will prevent property owners from making changes that would not comply with the new zoning…more on that later. Following the rezoning, the city staff will develop and refine the zoning details over the course of 6-12 months.
In short, this new zoning is centered around the idea of high-density development, in close proximity to urban transit routes with minimal setbacks. Think mixed-use, up to 6 story buildings with multi-tenant commercial spaces at ground level and multifamily units above. As an example, think of areas such as Biltmore Park, Reynolds Village, and Gerber Village. Areas in which you can live, work, and play. Should you not live there then you can conveniently take public transportation to and then easily walk between locations.
What will this not allow?
A few usages that would have been previously approved for many of these designated areas that will no longer fly under the new zoning would be gas stations, heavy equipment, self storage, industrial sales, or any building whatsoever that would have parking located between it and the street.
The problem…
As a resident of Asheville that both works and plays in these proposed neighborhoods I wear many hats and can see this rezoning from numerous angles, both good and bad. The main problems I see with the current approach are the following. First, many of these locations are overlaying properties that currently have large single or multi-tenant facilities that require large parking areas in front of the building. These properties when listed for sale typically will only attract similar clients with like businesses. In real estate, one of our key elements of what we do is to find a properties highest and best use. It is without questions that many of the areas set to be rezoned are currently being utilized as their highest and best use due to the limited spaces in which we can place such business types.
Secondly, the restricting of any type of drive-through is another detriment to highest and best use in many of these areas as they already have numerous businesses operating drive-throughs. It’s easy to jump on board and think of these restrictions as simply less fast food places, but we have to keep in mind this would do away with your convenient trip to the bank or your early morning Starbucks run. And what about the elderly or disable that utilize the convenience of these drive through type businesses as walking between destinations just is not an option.
The key element I think our city needs to look at is to realistically put themselves in the real estate investors and business owners shoes. Sure, the existing businesses can continue to use their space as is but should they rebuild or sell the property it will be 100% subject to the new zoning. Consider for a moment you are a real estate investor and considering a property around Asheville. You find a parcel of land for sale, already developed with numerous commercial structures and tenants. You planned to come in and make notable updates to the property for future growth, you then find that upon your purchase your investment cannot operate as it has in the past and you will need to invest substantial money into making it comply with the Urban Center zoning. This is where the businessman within me wants to scream, “Why would anyone in their right mind invest in such a location that is so limited by experimental new zoning?” Developers are not typically a fan of saying…”ah I guess we will try it and see what happens”.
The positive…
The positive is I think the root of this idea is in line with the direction we should be headed as a city. I fully agree that we need to start targeting areas of fast growth that would benefit from residents having less personal car travel, being easily walkable, and creating more efficient public transportation. Facing the reality that our little city is growing faster than its infrastructure, the more we focus on developing areas where people can live, work, and play without ever getting behind a wheel is inevitably going to reduce pressure on our already overcrowded highway systems. I do in fact think this overall idea is the future of development.
A happy medium?
I think the key point the city is missing in this is their approach to such development being an instant rezoning that hurts current property owners and in my opinion will create areas of commercial real estate that will sit stagnant due to no new investors willing to take a chance on such restrictive new zoning standards. Good commercial real estate parcels are few and far between. The city needs to accept the reality that the type of investors that have the capital for such investments will simply turn their noses up at such properties and move on to the next city to fund such improvements where they know they will not be forced into such strict limitations on their investment. My proposal is this, why not identify these key areas and issue a suggested use program that would give incentives for such a transition of use. Rather than scare away the potential investors why not invite them to improve our great city? Much like the idea behind Opportunity Zones that I will cover in a future post, let’s think about tax incentives to promote this modern plan. Once they have been redeveloped then go down the road if rezoning. My fear is the city is dreaming of what can be without thinking about the reality of how such a city gets to that destination. No matter how great a vision, if the numbers don’t pencil a developer will not invest their time and money. Our city officials unfortunately seem to be on a track of making it harder and harder for investors to make the numbers work.
The cities planning & zoning commission is set to have a public hearing January 24th 2019. I encourage everyone to attend and ask questions. Lets not waste this great opportunity to advance the future of our city in a responsible way without hurting property owners and discouraging investment.