The Effectiveness of Zoning in Solidifying Downtown Retail By Alexandra B. Jacobson B.A. in International Relations, 1994 Boston University Submitted to the Department of Urban Studies and Planning in partial fulfillment of the requirements for the degree of Master in City Planning at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY June 2001 ( 2001 Alexandra B. Jacobson. All Rights Reserved. R/vo- The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part. Author Department of ban Studies and Planning A May 17, 20W Certified by Professor Terry C'zold Department of Urban Studies and Planning A Thesis Supervisor Accepted by Professor Dennis Frenchman Chair, MCP Committee Department of Urban Studies and Planning The Effectiveness of Zoning in Solidifying Downtown Retail By Alexandra B. Jacobson Submitted to the Department of Urban Studies and Planning on May 17, 2001 in partial fulfillment of the requirements for the degree of Master in City Planning ABSTRACT Once the downtown was the regional hub of shopping, but the downtown retail sector has faced significant struggles to stay alive against the forces of suburban shopping malls, big box retailers, and the dominance of downtown office uses. Recognizing the importance of retail to provide services and bring vitality to the downtown, many cities in the United States have responded by modifying their zoning regulations. New regulations have introduced retail use requirements, street level design standards, and incentives to reward developers for incorporating retail spaces. By exploring examples in three U.S. cities, namely Washington D.C., Boston, and Seattle, this thesis looks at how effectively zoning has worked to solidify the downtown retail core and how other factors influence the existence, character and form of downtown retail. The case studies indicate that zoning is effective in creating an inventory of retail spaces and preventing other types of uses from migrating into areas targeted for retail. However, insufficient market demand can leave such spaces vacant for long periods of time until economic conditions change. Zoning can be an important tool in orienting retail to the street and improving the overall pedestrian environment. The zoning was most effective when it allowed a measure of flexibility in creating retail spaces of different sizes and forms, and when it was applied in an area with a predisposition for high pedestrian traffic and retail uses. Other factors beyond zoning play an important role in solidifying retail districts. Economic conditions that drive the development activity are the single most important factor determining whether the zoning is even activated. The city government plays a key role in catalyzing downtown investment. Often the guidance of a downtown management entity like a business improvement district is essential in shepherding a retail district. The overall population and density cannot be underestimated in importance from a retailer's perspective. Thesis Supervisor: Terry S. Szold, Adjunct Associate Professor of Land Use Planning Thesis Reader: J. Mark Schuster, Professor of Urban Cultural Policy Acknowledgements First and foremost, I would like to thank my family for instilling in me from the start a curiosity about the world and a love of learning, and for providing love throughout my life. Mom, I depend on your unflagging support and generosity. Though I may not have inherited your passion for shopping, the many hours we spent together at the mall are deeply embedded in this thesis. Dad, I miss you so much since you left us three long years ago, but I carry so much of you in me, your spirit gives me strength. Kyle, you come to the rescue without complaint when I need help again and again. You are truly a unique and special brother, one who I appreciate in so many ways. Without the assistance of so many people both at MIT and beyond, this thesis would not have been possible. Terry Szold, my academic and thesis advisor, deserves special thanks for her counsel and support throughout my planning education as well as during the creation of this thesis. My thesis reader, Mark Schuster, was instrumental in the steering of this thesis with his probing questions, his ability to frame issues coherently and his generosity of time. When undertaking case studies in cities that were largely unfamiliar to me, I relied on the kindness of strangers to help me gain a sense of history and orientation during my site visits and also as I tried to make sense of the complex issues from afar. So many people went out of their way to help me with my research, but a few truly made a significant difference. Nathan Gross of Arnold & Porter in Washington D.C. deserves a special thanks for going far beyond the call of duty to help me out. He demonstrated great patience and kindness when my questions never ended. Joe Sternlieb of the Downtown D.C. BID, Mike Podowski of the Seattle Office of Strategic Planning, and Sarah Pedersen of the Downtown Seattle Association were also very helpful. Both Alice Boelter and Larissa Brown have been tremendous teachers and friends to me as I make my way in the world of planning. I am grateful to them both for sharing their experiences with me, taking the time to help me get my start, and encouraging me to push my own limits. It has been wonderful learning from and beside my friends at DUSP, especially Ana, Adam, Chris, Josh, Tasha, and Trish. I feel so lucky to have been part of such a great community of planners. During the thesis crunch, my most vexing thesis complications were always resolved by a trip to 10-485 and a conversation with a friendly DUSPer offering good insight. I am fortunate to be blessed with such dear friends as Claudia, Esty, Pedro, Nancy, Birgit, Steffi, Jill and Nicole. Although I may not have seen as much of you during these past months, I look forward to many happy times together ahead. And finally, Koko has been the real strength behind me through this whole process. With love and kindness, he continually soothed my frayed nerves, reminded me of the humor in life, and provided incredible support, research and editorial assistance, and nourishment to keep me healthy and happy. CONTENTS Chapter One Introduction ChapterTwo Downtown Retailing Overview of Case Cities 24 Chapter Three Case Study: Washington, D.C 25 ChapterFour Case Study: Boston ChapterFive Case Study: Seattle 68 ChapterSix Summary & Conclusions 88 Bibliography 98 Appendix A: Glossary 106 Appendix B: Street Level Uses 107 Appendix C: Survey and Results 110 'Throughout most of human history, men and women held settled identities based on religion, class and region, strengthened byfamiy and tribalaffiliations going back for centuries. America would weaken those ties, if not sever them altogether. Tocqueville...: The woof of time is every instant broken and the track ofgenerations effaced'. In such a setting, individuals - the rich no less than the rest of us - would have to discover who they were, even invent themselves. And the chief vehicle in this quest would be personal consumption. America became the best-stocked supermarket in the world, from which citizens would select those products and pleasures most expressive of their personalities. Together, our wardrobe, the tapes and records we collect, the vacations we take, combine to establish each of us as unique. This may not be the most elevated approach to individuality, but it is America's way." Quote from Andrew Hacker in the New York Times Book Review when reviewing the book Money and Class in America by L.N. Lapham, 1988. (ones and Simmons, p. 17.) Chapter One: Introduction As shopping migrated from the traditional downtown retail district to the suburban shopping mall in the 20* century, the center city lost an important function. After losing significant retail market share, many department and specialty stores closed their downtown operations. The empty spaces further perpetuated the decline of downtown's retail prominence. The once-crowded and thriving streets suffered from neglect and underutilization. Much of what remained of downtown shopping were convenience shops serving the daytime workers, locking their doors at the end of the workday. Cities recognized that to be truly vibrant they must offer a mix of uses for living, working, playing, and shopping. Without the full spectrum of activity, cities are inconvenient places to live and uninteresting places to visit. Even with all the advantages of convenience that a suburban shopping mall offers, it fails to replicate the diversity and energy of the urban core. With this asset in mind, cities have made many attempts to shore up their downtown retail districts. To counter the loss of downtown retail, many cities across the U.S. have modified their zoning code to require retail uses. Generally retail uses are required in the traditional shopping districts and on key streets in the city, though the actual amounts required differ dramatically across cities. At the same time, cities have introduced design guidelines to reinforce the pedestrian environment and to resurrect the shop-lined streets of yesteryear instead of fortress-like malls that allow no interaction between the shop and the street. Finally, cities have begun to reward developers with development bonuses for incorporating valuable public amenities such as department stores, performing arts theaters, or overhead weather protection for sidewalks into their projects. In some cities, the required retail space is automatically rewarded with a density bonus and/or is exempted from the overall density calculation. As zoning regulations are activated upon new development or a change in use, zoning is dependent upon an active development market to have an effect. In the absence of market demand, zoning's powers remain dormant.