Sandpoint planners unveil economic development framework and major zoning rewrite to boost housing and concentrate retail
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Summary
City planners presented a draft economic development strategy and a comprehensive rewrite of downtown and commercial zoning intended to concentrate retail in core nodes, allow more housing near services, and remove broad ground-floor retail requirements outside the downtown core.
City planners presented a draft economic development strategic plan and a major revision to commercial zoning that staff said will be the principal tool to deliver housing and protect downtown vitality.
Jason (Community Planning & Development) described pillars for the economic plan including industry diversification (aerospace, biomedical, mobile tech, small-scale manufacturing), infrastructure readiness near the airport, housing supply to support local employers, downtown vitality and workforce partnerships. "We need to harness competitive advantages and have a plan for developing them as reasons for companies to come here," Jason said.
Planning Director Bill explained a block-by-block commercial code rewrite designed to concentrate retail and pedestrian activity in a compact downtown core and selected nodes (for example near Division/Highway 2 and the SuperOne/Great Northern area) while allowing more residential development elsewhere. The draft framework sets downtown core building heights near 40 feet and an outer core up to about 55 feet, with most other commercial areas at 3590-45 feet depending on context. Staff said the goal is to allow residential uses on more parcels and remove inflexible ground-floor retail requirements outside the core so neighborhoods can evolve and small-scale neighborhood-serving uses (coffee, small professional services) are feasible without spreading large retail strips that compete with downtown.
Bill cautioned council that zoning changes influence investment and that broad allowances for retail on corridor parcels could "cannibalize" downtown or invite uses the city does not intend. He recommended targeted nodes, predictable standards and a phased roll-out: bring the downtown/commercial draft to planning commission for review this month, then return to council. "If we do this right, we can allow housing where it makes sense and concentrate retail where it will be most viable," Bill said.
State housing legislation: staff also warned that the Idaho legislature recently enacted bills changing ADU and lot-size rules in ways that could preempt local codes when population thresholds are met; planners said they will incorporate any legally required changes and asked council for guidance on goals and trade-offs.
Next steps: staff will return with drafts for planning commission review and a 90-day implementation calendar. Council members asked for public outreach materials and plain-language summaries before hearings.
