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Council backs $15,000 pilot to encourage second‑story housing and mixed uses downtown
Summary
City manager proposed a $15,000 pilot to incentivize second‑story residential development on and near the downtown square. Council directed staff to draft a resolution and program details for the next meeting; funding was identified from the hotel/motel fund.
City Manager Nate told the council the administration wants to encourage more residences above commercial storefronts in Perrysquare-area buildings and recommended a small seed fund to offset renovation costs for qualifying projects.
"My recommendation is that we start with $15,000," Nate said, proposing a limited pilot round and asking council to direct staff to return with a formal program and application materials. He described the fund as a way to reduce the up‑front cost barrier for businesses and developers renovating older downtown buildings while helping increase downtown foot traffic and the city’s tax base.
Councilmembers discussed geographic scope and eligibility. Several councilmembers favored a pilot focused on the immediate square (roughly a one‑block radius) to target historic buildings most in need of investment; others suggested using the broader Main Street or East District if the pilot proves successful. Staff said applications could come from both existing businesses seeking renovation and new owners developing mixed‑use projects.
Funding and administration Council asked where the $15,000 would come from; staff identified the hotel/motel (lodging) funds as the source. No final awards were made; the council’s direction was to have staff draft a program resolution and bring it back for formal consideration. Staff said they will return with a proposed resolution, an attachment describing eligible costs and a proposed application and review process.
Why it matters Council framed this as an implementation of the city’s strategic plan goal to boost downtown quality of life and the local tax base. A modest pilot will allow the city to test program design and demand before committing additional funds.
Next steps Staff will prepare a draft resolution, a program map or boundary recommendation (staff discussed a one‑block pilot vs. the larger Main Street district), eligibility criteria and an application form for a future council meeting.
