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tide of a business district plan. 1'he village is
<br />draftin§ a new list of permitted and speciat
<br />uses for the business district. According to vil-
<br />lage planner Edmond Cage, the village is "not
<br />looking to oved¥ restrict these particular uses;
<br />they just want the ability to review them."
<br /> Because the village does not have any
<br />sales taxes, and has a limited amount of avail-
<br />able commercial property, the proliferation of
<br />new bank branches in the business district
<br />has raised concerns for township officials.
<br />Cag'e says, "Banks predominandy have raised
<br />the concern, but whether it is a bank or an
<br />office buildin§ does not matter. The result is a
<br />loss of sales taxes." According to Cage, the
<br />purpose of the moratorium and the proposed
<br />ordinance is to assure that "whatever com-
<br />mercial development comes into Long Grove
<br />is the best that Long, Grove can get."
<br /> Batavia established a moratorium on the
<br />issuance of new permits for banks in its retail-
<br />odented business district. This ordinance was
<br />enacted in response to the proliferation of new
<br />hank branches in the city's prime retail corridor.
<br />Itwas passed based on the idea that, because
<br />banks do not rely on drive-by traffic, they are
<br />inherently destination uses, which unnecessar-
<br />iJy compete with strictly retail uses, which do
<br />rely on drive-by traffic and parking facilities.
<br />According to the ordinance, if the bank prolifera-
<br />tion trend continues, the city will see a detri-
<br />mental impact on the economic health and
<br />vitalib/of the business district.
<br /> Batavia p~anner and zonin§ officer Rick
<br />Smeaton ~ays the cib/is using the moratorium
<br />to "look at the effects of banks on traffic, pedes-
<br />trian, and parking pa~terns to see if they are
<br />compatible with the surroundin§ retail uses."
<br /> Libertyviile adopted a more genera( ordi-
<br />nance in March zoo4 that allows village com-
<br />missions ID establish temporary moratoriums
<br />on any land use in the village. Although a mora-
<br />torium on nonretail uses has not yet been
<br />established, the ordinance 'NaS passed in
<br />response to the proliferation of banks and non.
<br />sales tax generators in the downtown district.
<br /> fhe I. ibertyville zoning ordinance already
<br />limits ID ~o p.ercent the total first-floor street
<br />frontage that may be occupied by office uses
<br />in the downtown commercial district. After
<br />that limit has been exceeded, new office uses
<br />in the district require a special permit.
<br />Itowever, uccordin§ to John 5poden, director
<br />of community development, "The district
<br />already exceeds {hat percenta§e, and the
<br />
<br />requirement has been difficult to enforce."
<br />Spoden says the current requirement is based
<br />on the linear street frontage, and there have
<br />been questions about which buildings are
<br />covered under the ordinance.
<br /> In response to these concerns, the
<br />LibertyviJ[e planning commission created a
<br />subcommittee consisting of representatives
<br />from the economic development commission,
<br />the Main Street program, and city staff, which
<br />recommended revising the or.nonce. "What
<br />we are ~ooking at," Spoden says, "is putting
<br />aside this percentage requirement and saying
<br />that, in the front 35 feet of all buildings,
<br />offices and financial institutions are not
<br />a(lowed on the first floor." However, the rest
<br />of the footprint on the first floor may still be
<br />used for office and financial uses. Spoden
<br />notes that the 36-foot dimension is based on
<br />studies of the footprints and dimensions of
<br />buildings in the downtown area. The village
<br />has scheduled public hearin§s to discuss the
<br />proposal. Spoden says, "We are trying to
<br />increase the retail opportuni~ in the down-
<br />town while recognizing that we do have a
<br />pedest~:ian-oriented downtown."
<br /> Buffalo Grove passed a moratorium in
<br />March 2oo4 on the development of new banks
<br />and financial institutions in the village's busi-
<br />ness districts, citing a recent d~astic increase in
<br />the number of development proposals for these
<br />uses. According to Assistant Village Manager
<br />Ghida Neukirch, the village's concerns inciuded
<br />the increased security attention ~nd service
<br />from the local police department that banks
<br />require, the long-term needs of financial institu-
<br />tions, and sates taxes. The village is considering'
<br />possible changes to its zonin§ ordinance to
<br />address the issue.
<br /> Two other suburban Chicago communi-
<br />ties have also passed moratoriums. Lake
<br />Forest passed a moratorium on development
<br />of nonretail uses in nonresidential districts in
<br />order to review use regulations in business
<br />districts in the city. The issue is being' ana-
<br />lyzed in order to prese~e the vitaiit¥ and
<br />commercial character of the central business
<br />district. Hinsda[e passed a moratorium in
<br />March 2004 for. new first-floor uses that do
<br />not generate retail sa[es taxes in business dis-
<br />tricts. The ordinance includes a tist of 76 non-
<br />retail sales tax-§enerating uses that are coy-
<br />ered by the moratorium, including banks,
<br />beau£y shops, real estate offices, tax prepare-
<br />tion services, and travel agencies.
<br />
<br /> Although each of these communities has
<br />approached this issue differently, one com-
<br />mon factor is that the proliferation of bank
<br />branches in retail districts was the impetus for
<br />reviewing' the impacts of eonretail uses in
<br />retail districts. The-moratoriums were enacted
<br />because of concerns about the impact of non-
<br />retail uses on pedestrian traffic, parking, eco-
<br />nomic development; sales taxes, and the
<br />quality of the business mix, and to give city
<br />officials time to devise possible solutions. As
<br />Cage says, "The concern was that there was
<br />going to be a bank on every corner."
<br />Rebecca Retzla~ AICP, is a researcherwith the
<br />American Planning As.~ociadon ~nd a Ph.D.
<br />student in urban planning ~nd policy ot the
<br />Universi~/ of Illinois ot Chicago.
<br />
<br />A complimentary pocket of information on con-
<br />trolling the proliferation of bank branches and
<br />other nonretafl uses is available to Zoning
<br />Practice subscribers by contacting Michael
<br />Oevidson, Co-£ditor, Zoning Practice, American
<br />Planning Associotion, ~22 South Michigon
<br />Avenue, Suite z6oo, Chicago, IL 60603, or send
<br />an e.mail to mdavidson@planning, org.
<br />
<br /> VOL. ~:, NO. 5
<br /> Zoning Practice (formedy Zoning ~tews) is a monthly
<br /> publication of the American Planning Association.
<br /> Subscriptions are available for $65 (U.S.) and $9o (for-
<br /> el§n). W. Pout Farmer, AICP, Executive. Director; William R.
<br /> ~qein, AK:P, Director of Research.
<br />
<br /> Zoning Practice (ISSN ~548-oz35) is produced at APA. Jim
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<br /> Morris, AICP. Rebecca Retzlaff, AICP, Lynn M. Ross, Reporters;
<br /> Kathleen Quirsfe~d, Assistant Editor; Lisa BaMon, Design and
<br /> Production.
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