City staff propose zoning change to allow dwellings in certain commercial zones to support 'missing middle' housing

Planning staff briefed the Board on a proposed zoning-code amendment, Ordinance O2628, that would allow dwellings in certain commercial zone districts where residential reuse had been restricted in the March 1, 2025 zoning code update.

Kathy Selman said the earlier code had removed dwellings as permitted uses in commercial zones (other than the Central Business District), which created unintended barriers to reusing older commercial properties and to developing missing‑middle housing. The proposed amendment would restore residential allowance in specified commercial zones, making it easier to convert vacant or underused commercial structures into homes, subject to code compliance and any applicable site plan/zoning approvals.

Selman told the Board that the Planning Commission at a duly advertised meeting voted 7–0 to accept staff findings and recommended adoption; staff said the ordinance text amends the use matrix (table 8‑1, section 162‑8.2) and related definitions to permit dwellings in defined commercial districts.

Directors pressed for clarification that the amendment would apply to existing structures once they meet code; staff confirmed reuse would be allowed if the property becomes code‑compliant. The ordinance will appear for formal consideration at the Board’s July 7 meeting.