Planning commission backs allowing ground-floor residential in downtown central business district as conditional use

Assemblymember O’Neil, the ordinance sponsor, told the planning commission on May 27 that the proposal responds to builders’ concerns that current CBD rules prohibit ground-floor residential and thereby limit development options downtown.

The change matters because the borough’s recently adopted downtown plan identifies areas as urban core or mixed-use preferred-residential and specifies a push for higher-density residential development in parts of downtown; staff said adding ground-floor residential as a conditional use gives the commission and staff discretion to weigh site-specific compatibility with nearby businesses.

“We’ve been working to look at the easy low-hanging fruit of what we could start to implement,” Assemblymember O’Neil said in opening remarks. Kellen Spillman, the staff presenter, described the ordinance as a narrow amendment: it modifies the Central Business District intent language and lists residential ground-floor uses as eligible for a conditional use permit rather than permitting them outright.

Spillman said the conditional use process allows the commission to apply the downtown plan’s objectives — including density targets and mixed-use preferences — when evaluating proposals. He walked through two hypothetical examples: a single-family home on a dense downtown lot that staff would likely recommend against because the urban core calls for at least 13 dwelling units per acre, and a multi-unit apartment proposal in a mixed-use preferred-residential area that would be consistent with the downtown plan.

Chris Miller, representing downtown interests and speaking as a local business advocate, said the Downtown Association had reviewed the ordinance and voted unanimously to support it; Miller said the change reduces the need for small, ad-hoc rezonings and can help activate ground-floor space where appropriate.

Commissioners voiced support for the conditional-use approach as a modest, flexible implementation step that retains review safeguards. Commissioner Olivia (first name provided in the record as a commissioner) said the proposal, combined with recent parking-code changes, could enable new downtown housing choices; Commissioner Corinne echoed the need for conditional review to protect active street-level uses while enabling housing that aids seniors and mobility-limited residents.

The commission voted 7–0 to recommend the ordinance (Ordinance 2025-O5) to the borough assembly for consideration; staff said the ordinance will be scheduled for an upcoming assembly meeting.