Council debates Mixed-Use Overlay Zone; cautious over applying it to single-family lots

Planning and Building Administrator Greg Sant presented a draft Mixed-Use Overlay Zone amendment to Title 9, explaining the Planning Commission recommended an overlay approach to allow additional uses while preserving underlying zone standards and requiring a development agreement for each application.

Greg said the overlay preserves setbacks and lot-coverage rules while allowing additional uses and density through a development agreement. Town Manager Bret Howser emphasized the procedural distinction: overlay approvals are legislative actions and the Council retains discretion to deny an application on policy grounds. "The development agreement is the linchpin," Bret said, arguing it keeps the Council involved in approving the precise development outcome rather than granting a permanent zone change.

Mayor Calloway raised fairness concerns about applying the overlay to R-1 single-family neighborhoods, noting homeowners bought under existing rules. Council Member Freeberg opposed R-1 application, suggesting a significantly larger minimum lot size (e.g., 10 acres) could limit spot-commercial uses. Council Member Tidwell supported mixed-use in commercial and higher-density zones and suggested the overlay could be used to negotiate affordable housing commitments in development agreements.

The Council reached consensus to support the overlay for General Commercial, Village Commercial, and Light Industrial zones and to include R-2 and R-3 in the framework but remained divided about R-1; the item was tabled pending revised language and return to the Planning Commission.