Sandpoint proposes split zoning to revive downtown storefronts

City staff introduced a significant rewrite of Sandpoint’s commercial A zoning at the Planning and Zoning Commission meeting on Jan. 10, proposing to divide the downtown area into two distinct districts — a downtown core and a downtown outer core — each governed by its own regulations intended to refocus activity toward the heart of town.

The proposal aims to concentrate commerce and make the downtown more of a unique destination. City Planner Bill Dean framed the effort as a push to intensify economic activity and rethink downtown geography. "We're talking about accelerating this place as an activity center, a unique destination," Dean said. "A couple big ideas tonight are, one, freeing ourselves to have some new thinking about the geography of downtown... and refining some land uses to help concentrate activity, in your core and enabling some additional flexibility in the outer core for residential uses."

Under the changes, ground-floor dwelling units would be allowed in the downtown outer core and elsewhere in the remaining commercial A zone. That represents a departure from the current rule that requires any new development in the zone to include a "storefront space" — a requirement critics said has too often produced empty ground floors rather than viable retail or service businesses.

The draft code also tightens what can operate in the downtown core. Uses such as laundromats, ancillary manufacturing, and vehicle sales would be prohibited in the core, and real estate offices would no longer be allowed on the ground floor in response to resident feedback. City staff also previewed a new set of design standards for both the core and outer core, described as more rigorous and intended to reflect Sandpoint’s historic character.

The zoning overhaul follows clear council pressure to prioritize these changes. At the City Council meeting Dec. 17, Councilor Kyle Schreiber urged staff to focus on zoning revisions before pushing other projects forward, signaling elected leaders see code reform as a prerequisite for downtown revitalization.

For local property owners, business operators and residents, the changes could reshape where commerce concentrates and how vacant storefronts are handled. Allowing housing in the outer core may bring more residents within walking distance of downtown businesses, potentially increasing daytime and evening activity. At the same time, new prohibitions and stricter design standards could force some businesses to relocate or adapt, and could raise compliance costs for developers and landlords.

The takeaway? This is a deliberate attempt to steer growth back into Sandpoint’s downtown spine. If you run a downtown property or small business, now’s a good time to watch the commission’s next steps and consider how a different ground-floor mix and tighter design rules might affect leasing, renovations and long-term plans. Our two cents? Keep an eye on meetings and talk to the planning department early so your project isn’t caught off guard.