Jackson council directs staff to study 2-for-1 bonus and other LDR changes; limits on basement habitable area and third-story stepbacks prioritized

Jackson, Wyo. ' At a Jan. 20 workshop the Town of Jackson council asked planning staff to prioritize a suite of possible amendments to the town's Land Development Regulations (LDRs), focusing near-term work on the 2-for-1 workforce housing bonus, third-story stepbacks and how habitable below-grade floor area is treated.

Paul Anthony, planning director, presented a menu of options the council could direct staff to analyze, explicitly noting these were options for council consideration, not staff recommendations. "We adopted the 2-for-1 bonus 7 to 9 years ago," Anthony said, and staff outlined options including tightening the ratio (from 2:1 toward 1.5:1 or 1:1), capping the size of deed-restricted units, or limiting the share of bonus floor area on a single site.

Several councilors signaled interest in re-examining the bonus. "If the 2-to-1 is being so very successful ' we're leaving money on the table," Councilor Schechter said, urging analysis of changing the ratio to capture more public benefit. Councilor Beaman and others recommended capping unit sizes in incentive-driven deed-restricted units and exploring incentives that produce deeper affordability rather than only workforce units.

On building scale, staff presented options to slightly reduce heights, increase third-story stepbacks, or adopt more prescriptive volumetric or design standards to address bulk and scale. Council members converged on prioritizing third-story stepbacks and treating longer-term reductions or prescriptive rules as part of a design-guideline review or future comprehensive process.

Basement rules emerged as a clear near-term focus. Staff noted there is currently no limit on basement depth and that habitable basement area does not count against maximum building size. Options the council requested staff to study included limiting the number of below-grade stories or depth, counting habitable basement floor area toward maximum building size or FAR, and adding protections where basements intersect groundwater.

Public commenters from conservation, housing and design groups urged the council to preserve downtown character, limit oversized short-term-rental projects, strengthen environmental protections and require more deed-restricted affordability in exchange for larger building envelopes. "Bigger buildings alone do not solve the housing crisis," Rebecca McKay Singer of the Jackson Hole Conservation Alliance said; she recommended returning to a lower floor-area cap and ensuring larger envelopes only come with significant affordable housing public benefits.

Council action: the council moved to modify the FY26 planning work plan to reflect the workshop direction (including prioritized study of the 2-for-1 bonus, stepback rules, basement changes, short-term rental/ground-floor use options and design-guideline review). The motion, made by Councilor Dan Beaman and seconded by Councilor Speary, passed unanimously. The council also voted to continue broader "other" LDR items to a future workshop for additional discussion.

Next steps: staff will return with analysis, feasibility modeling and draft redlines for council and planning-commission review. The planning commission will be available to help work through technical items; councilors asked staff to present peer examples of outcomes and known unintended consequences alongside recommended redlines.

— Reporting based on Town Council workshop proceedings, Jan. 20.