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Committee votes to remove downtown 'shrink-wrap' envelope rule to spur reinvestment
Summary
The committee voted unanimously to recommend code amendments removing sections of the so-called 'shrink-wrap' rule, allowing replacement buildings on affected downtown parcels to reconfigure footprints and heights without forfeiting existing noncomplying floor area; staff estimated modest housing potential but will provide parcel-level follow-up.
The Economic Development Committee voted unanimously to forward a staff-recommended text amendment that would eliminate portions of the downtown ‘‘shrink-wrap’’ regulation that currently prevents replacing noncomplying floor area with reconfigured building envelopes.
Senior historic planner Steven Switzer summarized the rule’s legislative history and how the 2016 enforcement effectively froze some downtown parcels by preventing owners from demolishing and rebuilding to reconfigure floor plates or increase floor-to-floor height without forgoing existing noncomplying area. The proposed change removes two code subsections and related grandfathering references so that a replacement building could maintain existing floor area without increasing the degree of noncompliance while complying with applicable site development regulations.
Applicant representative Ken Hayes and Charlie Widance of the Chamber argued the rule has limited downtown investment: staff noted no new building subject to the shrink-wrap provisions has been built in the downtown since the rule’s adoption. Proponents said removing the restriction encourages modernization, energy-efficiency upgrades, improved retail frontages, and potential mixed-use or housing redevelopment while not creating additional FAR or new development rights.
Staff explained approximately 66 downtown parcels fall under the affected provisions; of those, about 47 appear likely to be actively affected in the near term. Staff offered an illustrative estimate of roughly 100 potential residential units if owners pursued redevelopment that included housing; the committee asked staff for parcel-level analysis of housing implications and other impacts.
Councilmembers expressed broad support for the change and moved the staff recommendation. The motion passed unanimously; staff will follow up with additional analyses requested by the committee before council consideration.
Next steps: The recommended text amendment will be placed on the city council agenda for consideration, accompanied by a staff memo with parcel-level impacts, housing implications and any relevant policy trade-offs.
