Commissioner proposes overlay to limit large nontaxable uses near Broadway; staff to research legal options

Commissioner Holland opened a policy discussion proposing a zoning overlay for Broadway and other gateway corridors to limit large nontaxable uses and thereby protect future commercial tax revenue.

Holland described the area along State Road 67/300 West and Broadway as "a valuable piece of property for the town of Fortville" and said the goal is to preserve likely commercial acreage that can generate revenue. "I think we want to protect that," he said, arguing that overly large, tax‑exempt institutional developments could reduce the town’s future tax base.

Staff and legal counsel cautioned that a blanket prohibition on religious or other nonprofit uses could face constitutional or statutory challenge. Town staff noted that neighboring communities have pursued similar ordinances, but that those examples may have been worded differently or carved out certain uses. Tyler (staff) and legal discussion during the meeting emphasized the need to narrowly tailor any restriction to survive legal review.

Commissioners discussed alternatives, including allowing institutional or nonprofit uses but limiting maximum acreage or requiring a special exception process. "Maybe the compromise is to restrict the number of acres," Holland suggested; Tyler said a narrower approach is more defensible and recommended reviewing precedents (for example, language used in other towns) and crafting draft text for the commission’s February meeting.

The commission directed staff to prepare model language and legal analysis that would return for plan commission review; if the proposal passes the commission’s review it would move to town council for readings and potential adoption. No ordinance or formal action was taken at this meeting; the item was referred for staff research and a future draft text amendment.