Haltom City, Texas, is looking to learn from other municipalities that have successfully attracted small developers by reforming zoning laws and streamlining regulations. A key lesson comes from Chicago, where the City Council passed a major zoning ordinance slashing parking mandates across most of the city. By removing the expensive requirement for a minimum number of parking spaces, the city made it more financially feasible for small developers to undertake projects, especially infill projects—the reconstruction or redevelopment of buildings on smaller lots in existing urban areas, such as former industrial sites.
Philadelphia, Pennsylvania, realized that access to financing frequently prevented small developers from taking on projects. To remedy that, they implemented the Capital Consortium policy, a streamlined process that provides a one-stop, single-application portal for small developers seeking loans for projects.
Smaller cities have also seen benefits. Staunton, Virginia (population about 26,000), saw its Historic Staunton Foundation offer free design assistance to small business owners who agreed to restore the façades of their downtown buildings. This inspired other business owners, leading to a revitalized downtown with five vibrant historic districts. In the Village of Mount Morris, New York (population 2,847), leaders set up a revitalization program that provided developers with an inventory of all downtown buildings, including ownership, rental costs, and physical characteristics. This effort led to a significant increase in private investment in downtown buildings.
According to Haltom United Business Alliance Communications Director Joe Palmer, small developers offer a wide range of benefits for a small municipality like Haltom City. "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. "Their participation sometimes can help reduce community opposition, making the development process smoother and more predictable. Since small-scale projects are often more in character with the existing neighborhoods, these developers tend to face less vocal opposition than large-scale developments."
Palmer noted that small developers often lean toward renovating existing properties, which translates to preservation and community revitalization. They are willing and able to convert underutilized properties into well-maintained, small-scale developments. Additionally, small developers have an advantage over larger firms due to their familiarity with local market dynamics, allowing them to design projects that meet the unique needs of the community.
Despite these benefits, small developers often face challenges with financing and regulations. Palmer said there are several simple steps Haltom City can take to give a boost to small developers, starting with the elimination of restrictive zoning laws, especially parking minimums. "These outdated and unnecessary parking requirements significantly increase development costs, and effectively serve as a deterrent for small developers," Palmer said. "Most importantly, the parking minimums need to be eliminated."
Another way Haltom City can encourage small developers is to simplify and streamline permitting. "There are basic steps our leaders could take to make the permitting process far more user-friendly," Palmer said. "If a small project meets specific criteria, approval is given without making everyone grind through a long public hearing process." Palmer also suggested reducing or waiving administrative, planning, and impact fees for small projects, as they tend to disproportionately affect the finances of small developers. "They can offer subsidies or tax credits to provide incentive for small developers," Palmer said. "Grants and low-interest loans for little projects can provide a much-needed shot in the arm for small developers. And offering vacant or tax-delinquent lots is a great way to give small developers an affordable path to ownership."
City leaders can also initiate programs to provide small developers with mentorship, resources, and technical assistance, including training on project management, financing, and navigating local policies. Hosting workshops to help small developers understand the process for bidding on city-related development contracts and assigning a city government liaison to guide small-scale projects can ensure the process flows smoothly and doesn't get bogged down by bureaucratic red tape.
