How Recode Knoxville will affect your commercial property

Michael Moore | Guest columnist

Show Caption Hide Caption Indya Kincannon defeats Eddie Mannis in Knoxville mayoral election Indya Kincannon will be Knoxville’s next mayor.

With final Recode approval, Knoxville will be implementing the first major overhaul of city zoning and codes in 50 years starting Jan. 1. As with any major zoning overhaul, there will be land owners, landlords and developers who will benefit from the changes and others who may be negatively impacted.

While current uses will be grandfathered for continued operation, a change in use or major renovations could trigger adherence to the new form-based code. In several districts and overlays, parking criteria have been reduced, with the push toward making Knoxville more walkable, bikeable and public transportation friendly.

Here are some ways Recode may affect your commercial investment.

Broad strokes?

In conversation with local stakeholders, there is concern that the recode has been applied with too broad of a brush.

Over the years, somewhat of a kaleidoscope of zoning overlays has been applied to the city. Recode has made an aggressive effort to bring these areas into more homogeneous uses and aesthetics. This will bring more uniform development in the future and try to drive businesses deemed appropriate into more specific areas.

While grandfathered uses will still be acceptable, the concern will come to light when a property seeks a major change in use or undergoes major renovations or expansion – a change that would trigger design and use review.

Parking requirements

In portions of the new commercial zoning overlays, the minimum parking requirement has been reduced. This change will appeal to many owners and developers wanting a maximum footprint, the thought being that the more space you can use to build, the more you can sell and rent.

The challenge is Knoxville is still an automobile-driven city. So the question is whether the general public will evolve toward more walking, biking, ride share or public transportation options.

As everyone has experienced, downtown parking garages fill up rapidly on the weekend. South Waterfront street parking overflows into the residential areas.

The concern I’m hearing is whether those parking-limited locations will be able to attract visitors who are coming too far to conveniently use public transportation or ride share. Will those people start to avoid the crowds in favor of more car friendly areas?

Hillside protection

While there was conversation that this should be more expressly applied to residential districts and applied more leniently to commercial development, it was agreed that the hillside protection overlay shall apply to all areas within city limits impacted by slopes of 15% or more in regard to maximum land disturbance area for both commercial and residential uses, with maximum density applied for residential districts.

This was a major point of debate within the Recode conversation.

This is a sliding scale with density and lot disturbance decreasing apportioned to slope. There are mechanisms within the code that would offer property owners and developers the opportunity to decrease these limits per special-use application, site plan review and planning commission process on a case-by-case basis.

Knoxville wants mixed-use

With above street level residential becoming more and more popular within the city and around the country, Recode has continued to push for mixed use within commercial, general office and industrial-mixed use districts.

While not necessarily appropriate for all parts of Knoxville, this has been successful in providing vibrancy in areas after standard business hours and has helped to maintain a consistent client base for area businesses.

This trend affords commercial investors flexibility in development and broader income potential within their projects. It’s a concept that has been very successful in the downtown area and helped Knoxville become a town that no longer rolls up the sidewalks after sunset.

Everyone likes a pretty town

While much of Recode is concerned with driving future development, significant portions of the new code offer guidance on aesthetics and promote homogeneous uses in particular areas.

Knoxville will forever be known as “The Scruffy City”; however, more people and businesses have relocated to the area in the past 10 years.

Natural beauty, trendy districts and curb appeal will continue to bring new people and developments into the area. Implementing modern, organized growth and design criteria should continue to bolster this boom.

Check your zoning now

Change always causes anxiety. Knoxville’s codes have been generally static for the better part of half a century, so it’s normal for landlords, developers, businesses, attorneys and brokers to have a certain level of apprehension. They’re all long accustomed to working through the zoning with a comfortable level of understanding.

There will be a sharp but mandatory learning curve. Remember that Recode has been formed with an eye on the future. Knoxville is a diverse city that has adapted to change well over time and should continue to do so.

Remember too that there will be winners and losers in this transition. It would be wise to check your Recode zoning now: There’s an opportunity to appeal any new overlay applied to a commercial property until Aug. 13, 2022.

Michael Moore is a commercial real estate advisor with NAI Koella|RM Moore, Inc. He has over 15 years of experience in commercial real estate. He specializes in land development, retail sales and leasing. He can be reached at mmoore@koellamoore.com.