Municipalities seeking economic revitalization should look to small developers as key partners, according to Haltom United Business Alliance Communications Director Joe Palmer. He argues that cities like Haltom City, Texas, can reap significant benefits by removing regulatory hurdles that disproportionately hinder small-scale projects.
Palmer points to successful policy changes in other cities as a blueprint. Chicago recently passed a major zoning ordinance slashing parking mandates across most of the city, making projects more financially feasible for small developers. Similarly, Philadelphia implemented the Capital Consortium policy, a streamlined, single-application portal for small developers seeking loans, to address financing challenges.
The impact of supporting small developers is evident in smaller communities as well. In Staunton, Virginia, a program offering free design assistance for façade restoration inspired widespread downtown revitalization, resulting in five vibrant historic districts. The Village of Mount Morris, New York, created a revitalization program providing developers with a detailed inventory of downtown buildings, which spurred a significant increase in private investment.
"Unlike large-scale projects that can drastically alter a city's character, small developers tend to focus on less sizeable and more affordable projects," Palmer said. This focus often reduces community opposition and leads to smoother development processes. Small developers frequently renovate existing properties, aiding preservation and community revitalization by converting underutilized sites into well-maintained developments.
These local developers also possess a keen understanding of local market dynamics, allowing them to design projects that meet specific community needs. However, they often face significant challenges with financing and complex regulations. Palmer identifies several actionable steps Haltom City could take to support them.
The first and most critical step, according to Palmer, is eliminating restrictive zoning laws, particularly parking minimums. "These outdated and unnecessary parking requirements significantly increase development costs, and effectively serve as a deterrent for small developers," he said. Removing these mandates is a foundational reform that can benefit communities of any size.
Palmer also advocates for simplifying and streamlining the permitting process, which he describes as often lengthy, complex, and expensive. He suggests implementing automatic approvals for small projects that meet specific criteria, bypassing lengthy public hearings. Furthermore, he recommends reducing or waiving administrative, planning, and impact fees for small projects, as these costs disproportionately affect small developers.
To provide direct financial incentives, Palmer suggests cities offer subsidies, tax credits, grants, and low-interest loans for small projects. Providing access to vacant or tax-delinquent lots can also offer an affordable path to ownership. Beyond financial support, cities can initiate programs offering mentorship, resources, and technical assistance, including training on project management, financing, and navigating local policies. Hosting workshops and assigning a city government liaison to guide small-scale projects can help navigate bureaucratic processes.
The importance of these measures lies in their potential to reverse economic decline and spur sustainable, community-centric growth. By lowering barriers to entry for small developers, municipalities can encourage the renovation of existing structures, preserve neighborhood character, and stimulate local investment. This approach fosters a more resilient and diverse local economy, creating jobs and strengthening the tax base without the disruptive scale of large, out-of-town developments. For cities like Haltom City, embracing these strategies could be pivotal in transforming underutilized areas into vibrant, productive community assets.
