Council prioritizes targeted LDR work: 2‑for‑1 housing bonus, basements, stepbacks and ground‑floor uses to be analyzed

Town planning staff outlined several potential near‑term amendments to Jackson’s Land Development Regulations (LDRs) on Jan. 20 and the council gave targeted direction about which items to prioritize over the next six months.

Planning director Paul presented six topic areas: modifications to the 2‑for‑1 workforce housing bonus, building height and third‑story stepbacks, use‑table changes including short‑term rentals in the lodging overlay, basement definitions and whether habitable below‑grade floor area should count against maximum building size, a comprehensive update to design guidelines, and several miscellaneous items such as landscape standards and lot‑aggregation rules.

On the workforce bonus, staff explained the existing 2:1 floor‑area incentive (two square feet of market housing allowed per one square foot of deed‑restricted housing provided) has been widely used and that roughly 590 bonus units remain in the pool. Options presented included tightening the ratio (to 1.5:1 or 1:1), capping unit sizes for deed‑restricted units, and limiting the amount of bonus floor area on a single project. “If the 2‑for‑1 is being so very successful…then that suggests that we're leaving money on the table,” Councilor Schechter said, urging staff to evaluate market feasibility before adopting changes.

Councilors and public commenters pressed staff to analyze unintended consequences and feasibility. Developers warned that heavy new restrictions would raise costs and reduce predictability, while housing and conservation advocates urged tighter rules (smaller deed‑restricted unit caps, limits on short‑term rental conversions and constraints on deep underground habitable floors). Several speakers urged moving quickly on basements after recent projects used multiple habitable below‑grade levels while not counting toward maximum building size.

Council members coalesced around a set of prioritized tasks: staff should analyze changes to the 2‑for‑1 bonus (ratio options, unit size caps and possible site caps), prepare options for third‑story stepbacks instead of broad city‑wide height reductions, research basement limits and whether habitable basement area should count toward FAR or maximum building size (with attention to groundwater and traffic impacts), and scope vertical zoning/ground‑floor commercial rules to maintain active first‑floor uses in the downtown lodging overlay. Staff said design‑guideline overhaul would require consultant support and more time (12–18 months) and is likely FY27 work.

Councilor Beaman moved to modify the FY26 planning department work plan to reflect the council’s directions; the motion passed unanimously. Item 6 (other, larger LDR work) was continued to the next available council workshop.

Staff will return with market and feasibility analysis, red‑line code options where appropriate, and an updated prioritized work plan for council and planning‑commission consideration.

Key next steps include a feasibility study for the 2‑for‑1 changes, proposed stepback language, options for basement treatment in the code, and the ground‑floor commercial/vertical‑zoning scoping report.