Council briefed on zoning updates, middle housing rules and housing trust fund work

Committee members heard a series of zoning and housing policy updates from Director John Coleman, including text amendments, middle housing regulation drafting, new solar siting rules and work on housing trust fund policy and a payment-in-lieu ordinance.

Coleman said the cannabis moratorium was lifted after the council adopted new regulations that tightly limit where retail cannabis can operate. "Under policy ordinances and a number of changes, the cannabis moratorium was lifted because we adopted new regulations with significant limits where they can be," he said. He added the town is drafting middle-housing regulations to align with state law and allow certain multifamily configurations as of right in some zones.

On solar policy, Coleman said the town adopted new regulations that "basically make it very difficult for a solar array to be located in town of any type, in terms of using up, existing open space for solar arrays," and noted the commission controls arrays under a stated numerical threshold. He also said staff is preparing a pilot payment-in-lieu-of-taxes ordinance and housing trust fund guidance; he estimated the housing trust fund balance is approaching about $700,000 and warned that payments-in-lieu from major developments could create multi-million-dollar infusions requiring detailed administrative policies.

Councilors asked staff to bring draft ordinances and fee-schedule changes to upcoming meetings so the council can review and provide direction.