City re-evaluates zoning during leasing moratorium

With the City of Oak Ridge North's 90-day moratorium on leasing some vacant retail space for office use expiring at the end of January, officials are hoping amendments to the city's zoning ordinance will boost sales tax revenue.

On Nov. 1, the city enacted a moratorium that temporarily disallowed vacant retail space along the city's I-45 highway district to be leased to non-sales tax generating businesses, such as doctor's offices. City Manager Vicky Rudy said that while the city wants and needs medical practitioners, the lack of sales tax revenue hurts.

"A lot of our Tier 1 retail is being leased as office [space]," Rudy said. "It's a real problem if our only good retail space is office and there is no good retail sales tax."

During the moratorium the city's Zoning Commission has been evaluating the zoning ordinances for potential changes to increase its tax base.

"Our Zoning Commission has met and proposed some changes to the ordinance that would take away some uses, such as antiquated uses that don't apply to today's market," Rudy said.

The ordinance may also enact some controls on office use, with the ability for the city to grant specific use permits or waivers, such as for buildings that have little or no value as retail space, Rudy said.

The zoning ordinance evaluation is part of a comprehensive plan Oak Ridge North is undertaking.

"We're getting ready to review requests for proposals for comprehensive planning," Rudy said. "We will take a really hard look at the commercial environment in the city and get a better idea of what we want the freeway [business] to look like in three to five years."

At the end of January, the Oak Ridge North City Council will have the opportunity to renew the moratorium for another 90 days. However, Rudy said she expects the council to instead vote on amendments to the city's zoning ordinance "so that [the changes] will be permanent."