Planning Commission officials spent the summer working out the details of a new zoning overlay for East Callowhill, in hopes of transforming the narrow area separating Old City and Northern Liberties from an industrial desert into a walkable neighborhood with new apartments and commercial projects.

The legislation, which was recommended by the Commission on Tuesday, rezones the area bounded by 2nd, 6th, Spring Garden and Callowhill streets—31 parcels in all—to CMX-3, a medium-density commercial category that matches the zoning of the Central Delaware. The area is currently zoned I-2 for industrial development.

Under the terms of the bill, projects on the north side of the overlay would have a base height limit of 65 feet, but could climb as high as 144 feet if developers claim any of a variety of bonuses for things like stormwater management, open space, through-block connections, and mixed-income housing. Projects on the south side of the overlay, facing Interstate 76, would be limited to 100 feet, but could rise to 340 feet with bonuses.