Docket Case:
PZ-26-65 (City of Hilliard Code Amendment – Section 1116.08(g))
Hearing:
Planning & Zoning Commission | October 8, 2026 | 6:00 PM (Council Recommendation Only)
Primary Impact Area:
I-270 Innovation & Commerce Corridor Subdistricts (I-3, I-6, I-FE, I-MR)
Staff Recommendation:
Positive Recommendation to City Council
The Big Picture
Hilliard is not downzoning or restricting rights along the outerbelt; it is substantially deregulating uses within the I-270 Corridor Summary of Uses Table (Code §1116.08(g)). Prompted directly by the 2026 Hilliard Housing Study (formally received via Res. 26-R-87 on September 14, 2026), the City is removing traditional office/tech ratio hurdles to accelerate workforce density and hospitality infill.
Regulatory Shift: Summary of Key Use Upgrades
Under current code, “Secondary Permitted” (SP) uses generally trigger a conditional threshold requiring at least 10,000 SF of primary office/technology floor area per acre. PZ-26-65 upgrades many of these uses to Permitted by-right (P):
|
Subdistrict |
Proposed Use |
Prior Status |
Proposed Status |
CRE & Underwriting Significance |
|
I-3 |
Multi-Family Dwelling |
Secondary (SP) |
By-Right (P) |
Major Adaptive Reuse Win. Unlocks conversions without requiring office components. |
|
I-3 |
Restaurant, Bar, Retail |
Not Listed |
Secondary (SP) |
Enables integrated ground-floor retail/F&B amenity bases. |
|
I-6 |
Hotel |
Not Listed |
By-Right (P) |
Opens direct competitive hotel pipeline; establishes by-right zoning for existing assets. |
|
I-6 |
Contractor Shops / Screened Storage |
Not Listed |
By-Right (P) |
Introduces low-intensity flex industrial/IOS adjacent to commercial corridors. |
|
I-6 |
Brewery / Distillery / Bar |
Secondary (SP) |
By-Right (P) |
Simplifies entertainment, hospitality, and taproom repositioning. |
|
I-FE (Flex Employment) |
Hotel / Bar |
Not Listed |
By-Right (P) |
Allows business-class lodging to co-locate in flex employment parks. |
|
I-MR (Mill Run) |
Hotel |
Not Listed |
By-Right (P) |
Codifies hospitality conforming status across the Mill Run interchange shed. |
Advisory Underwriting & Valuation Implications
- Hotel-to-Housing Conversions (I-3 District Only)
- The Play: If an underperforming hotel or corporate office asset sits inside the I-3 subdistrict boundaries, multi-family becomes permitted by right.
- The Strategic Benefit: Eliminates the cumbersome requirement of preserving 10,000 SF of office/tech space per acre to support residential units.
- The Caveat: I-3 is currently the only district where residential goes by-right. For parcels in I-6, I-FE, or I-MR, a residential conversion still requires a variance or PUD rezoning.
- RevPAR & Competitive Supply Risk (I-6, I-FE, I-MR)
- Allowing hotels by right across three separate outerbelt subdistricts removes a key barrier to entry for prospective competitors.
- Any pro forma underwriting an existing select-service or extended-stay property along Cemetery Road or Mill Run must factor in potential new room supply unconstrained by PUD public zoning hearings.
- Mixed-Neighbor Risk in I-6
- By permitting contractor offices, workshops, and screened outdoor accessory storage ( of lot) by right, I-6 can evolve into a hybrid light-industrial/commercial environment.
- Buyers and hospitality operators must review surrounding parcels to avoid placing upscale hospitality or public-facing assets adjacent to fleet operations or yard storage.
Watchdog Action Item
- Do not treat P&Z as the finish line: The Commission only issues an advisory recommendation on code text amendments.
- City Council Calendar: Track the subsequent City Council readings (likely late October / November 2026). Code text modifications will carry a standard 30-day post-passage effective buffer before permits can be pulled by-right under the revised table.