Transportation Commission recommends approval of TOD overlay changes, including allowance for small car rentals

The Transportation Commission recommended approval Nov. 19 of proposed changes to the city’s Transit Oriented Development (TOD) overlay, including an amendment to allow car‑rental and car‑share uses within the overlay.

Planning staff presented the rationale and text changes in Legislative File 25016. Colin Punt, a planner in the city’s Planning Division, said the overlay implements the city’s comprehensive plan by concentrating higher‑intensity, mixed‑use development near high‑frequency transit and BRT corridors. He described the package of changes as intended to encourage housing and transit‑supportive development while tightening controls on auto‑oriented uses.

Among the principal changes in the draft ordinance, staff described these provisions: allow 3‑ and 4‑unit residential buildings as permitted uses in residential districts inside the TOD overlay; require all new drive‑through facilities in the overlay to be located inside buildings at least three stories tall whose building footprint covers at least 60% of the lot for proposals seeking a new drive‑through; prohibit new standalone surface parking lots, new car washes and new auto‑sales businesses within the overlay; and carve out ‘auto rental’ as a distinct use that could remain allowed (the proposed alder amendment would prohibit auto sales but allow rentals in some locations).

“Transit‑oriented development is pedestrian‑oriented, compact, mixed‑use development centered on quality public transit,” Punt said, explaining the overlay’s intent to reduce parking demand and support walkable neighborhoods. He noted the overlay covers about 17% of Madison’s land area but has accounted for roughly 42% of new dwelling units approved since 2023.

Katie Bannon, zoning administrator, clarified an amendment proposed by Alder Tishler would treat the University Hill Farms National Register Historic District differently by making new 3‑ and 4‑unit buildings in that district conditional uses rather than permitted uses, providing an additional level of review. “This area has not opted to become a local historic district,” Bannon said, “so they don’t have the same oversight as some of the local historic districts.”

Commissioners asked about car sharing and smaller rental operations (Zipcar‑style services), large auto rental lots or automated car towers, the 60% building coverage threshold for drive‑throughs and whether prohibiting standalone lots would impede park‑and‑ride or public parking. Jacob Moskowitz, assistant service manager, said that small car‑share arrangements have not historically been treated the same as centralized auto‑rental businesses and that existing car‑share parking had not required separate occupancy certificates.

Commissioner Chris McHale moved that the Transportation Commission recommend approval of the proposed changes to the TOD overlay, including the proposed amendment to allow auto rentals; Alder Harrington McKinney seconded. After a brief discussion confirming the version before the commission did not incorporate all pending alder amendments, the chair called for unanimous consent and the motion carried unanimously. The commission’s action is a recommendation to the Plan Commission; Plan Commission will in turn advise the Common Council, which will make the final decision.

What’s next: The commission’s recommendation and staff reports accompany Legislative File 25016 to the Plan Commission for further consideration. Specific alder‑sponsored amendments (for example regarding historic districts or allowable rental uses) may be introduced and considered in that subsequent process.