Council hears proposals to increase housing capacity in business and commercial zones

City planning staff presented zoning text amendments on Jan. 5 intended to increase housing capacity in business and commercial districts.

David Carey, director of Planning and Development Services, said the proposed change to the B-2 district would effectively double the allowable residential units by reducing the required square-footage-per-unit from 2,000 to 1,000. Using a four-acre example, Carey said allowable dwelling units would increase from 87 to 174 under the proposal.

Carey also described a proposal to allow ground-floor residential by right in the O2 district — a corridor largely along O Street — to reduce barriers for developers and property owners who want to add housing along commercial corridors. He framed both changes as efforts to remove "somewhat arbitrary limitations" in the zoning code and to expand housing opportunities as demand increases.

On a related item, Carey described a change-of-zone application in the three-mile jurisdiction to convert a parcel from AG to AGR, consistent with the comprehensive plan and allowing potential subdivision to a three-acre minimum. Separately, NeighborWorks Lincoln presented a proposed PUD amendment for the South of Downtown plan unit development to reduce lot-area and lot-width minimums for two-family dwellings to allow renovation of nonstandard lots and to encourage affordable rental rehabs. Dylan Mermin said NeighborWorks plans to renovate an existing property and rent units at or below 60% area median income.

Council members offered positive remarks but did not take final votes on the zoning text amendments during the Jan. 5 meeting; these items remained in the public hearing/consideration stage.