How Portsmouth's New Zoning District Will Create More Homes
Portsmouth, NH’s city council took a major step the last week of October to encourage new housing development. According to City Planning Manager Peter Stith, the council voted to pass a second reading of a r Neighborhood Overlay District (GNOD). This vote was unanimous, adding parts of Commerce Way and Portsmouth Boulevard zoned for office research.
The vote for the third and final reading was on November 18, 2024. Stith stated that this area mostly has office buildings. He has stated that the GNOD’s passage would allow higher-density housing and extra workforce housing.
According to City Manager Karen Conrad, property owners in the GNOD have incentives permitting the construction of housing up to six stories, with 120 units per building. Several council members have pointed out the district’s proximity to restaurants, grocery stores, and other retail locations.
One of the key provisions permitted developers the right to build four stories with up to 24 units. Stith also informed the council that buildings with five stories and up to 80 units would require public realm improvements with approval from the Director of Planning and Sustainability. Six stories or 120 units involve the workforce housing requirement.
According to an ordinance draft and Stith, developers can choose from three options to meet the workforce housing requirement. The first option, of course, is for the developers to build workforce units themselves.
Developers can make a payment to the city in an amount based on the development makeup, instead of constructing workforce housing. A parcel of land can be transferred to the city, which requires City Council approval.
Officials have admitted that the proposed GNOD came from a decision by The Kane Company and city officials to stay lawsuits against each other for new zoning. City Attorney Susan Morrell has stated that many parcels in the GNOD are owned by either Michael Kane or his companies.
Kane is the CEO of The Kane Companies. During an unsuccessful attempt to redevelop the 2.1-acre downtown McIntyre federal property, Redgate/Kane did business under the SoBow Square name.
According to City Councilor Kate Cook, there was a lot of talk in 2022 about where to find more room for housing. Cook cited that this space is mostly underdeveloped and is close to several retail and restaurant spaces.
Cook also cited the easy access to bike routes. In areas with more dense housing, being adjacent to a commercial area is more desirable.
Mayor Deaglan McEachern has stated that ongoing property re-evaluation taught him which commercial properties had greater value. Office research properties had the least value demonstrating why commercial values didn't keep pace with residential values.
Because residential properties are the most valuable, the GZNOD provides the opportunity for developers to build more valuable properties. The parcels, formerly part of Mariner’s Villiage, featured office space with a demand that had since dried up.
City Councilor John Tabor acknowledged the discussion bringing up innovative ideas for an area with an otherwise low impact. The GNOD totals about 23 acres, making it handy for downtown businesses.
Tabor co-chairs the city’s Housing Committee. He pointed out that land transfer could create at least 80 new units for the Housing Authority or similar non-profit entities.
Tabor cited the need for below-market and market pricing. Tabor estimated that 1,500 units between 2024 and 2026 are necessary to balance the housing market.
City Councilor Beth Moreau addressed concerns that the effort was rushed. As a long-time Planning Board member, Moreau recalled these efforts going back to 2022.
When the 2023 Portsmouth Listens session occurred, residents expressed a desire for city planners to stop talking and do something about housing. Moreau stated she felt the GNID was in a great area for development.
The Planning Board also had a discussion about the overlay district. Anthony Coviello, a board member, expressed confidence that the GNOD would create housing but questioned how much would be below-market.
Coviello was concerned about the market being tenuous building at market rates. Much of the market-rate housing approved had yet to be built.
The board member compared previous efforts to providing an incentive for developers to build, then stopping before completion. He emphasized that the building was going to happen, and encouraged officials to let the buildings become taller.