Virginia Village Overlay District Details

A new zoning overlay

As part of a series of actions taken on June 22, 2026, the City Council gave initial authorization to critical zoning changes for the existing Virginia Village affordable housing site. [Please see the Pulse post, Council Moves Virginia Village Redevelopment Forward, Issues RFP, June 24, 2026.]

The zoning text amendments were revised and came before the City Council for a new first reading on July 27, 2026. A key addition is an abbreviated special exception (SE) rather than a by-right process that would govern redevelopment of Virginia Village properties beginning on July 1, 2027. Staff urged that any accepted proposals in response to the Virginia Village Affordable Housing Opportunity Request for Proposals (RFP) for the redevelopment of the site currently with prospective developers would proceed by right. [See the Pulse post, Virginia Village Zoning, RFP Evaluation, Tenant Relocation Readied for Council Votes, July 22, 2026.]

During its July 27, 2026, action meeting, the City Council addressed citizen concerns about a staff proposal to increase the allowable height of any Virginia Village redevelopment to 4 stories or 50 feet along its boundary with the adjacent Winter Hill neighborhood. Council ultimately rejected this proposal, restoring the 40-foot limit pending a review of responses to the RFP. [See the Pulse post, City Receives Virginia Village Proposals, Launches Evaluation Committee, August 12, 2026.]

Overview

The Virginia Village Overlay District would replace the Mixed-Use Overlay District, or MUR-1 overlay currently in place, which the planning staff report maintains “is better suited for larger mixed-use redevelopments than what is anticipated for Virginia Village.”

According to the initial staff report, “The proposed amendments establish new regulations that would govern properties included in the zoning overlay district for Virginia Village and are intended to regulate potential future redevelopment within the Virginia Village neighborhood in a manner that reflects the vision and community values set forth in the Comprehensive Plan and Small Area Plan for this area.”

Thus, the proposed zoning ordinance for Virginia Village would apply not only to the City-owned properties, but also to the properties that remain in private hands, should they choose to access it.

Initially, the overlay district sought to encourage either an affordable housing or an open space contribution from potential developers by imposing one of two requirements:

1) Developers can access the overlay by providing a minimum number of committed affordable units, as measured across the combined project area, which would be affordable to households earning 60% of the Area Median Income (AMI) for the life of the project. A townhouse development application would need to provide the same number of affordable dwelling units prior to demolition or rehabilitation—a one-for-one replacement. A multifamily development application would have to make 50 percent of the total number of housing units affordable.

2) Alternatively, developers can provide a minimum public open space area equal to 60 percent of the combined project area that would be maintained for the life of the project as an alternative to the specified affordable housing contribution.

However, these requirements were amended by the City Council on July 27. Staff proposed and Council agreed that the affordable housing requirement apply to all by-right development applications, with an option for Council to permit open space in lieu of affordable housing after consideration of the needs of the City, market and economic conditions, special characteristics of the parcel being considered, and recommendations for the area as provided in the City’s adopted small area plans.

Council further clarified that there is no minimum open space requirement for by-right development and that the special exception for open space will be available immediately upon adoption of the ordinance, but that all other special exceptions will not be available until July 1, 2027.

Specifically, the new overlay district, as described by Senior Planner Jack Trainor and amended by Council on June 22 and again on July 27, calls for:

Special Exception Process

• Staff introduced a special exception requirement for all district applications that would take effect beginning on July 1, 2027. District applications submitted prior to June 30, 2027 would be considered by-right. This schedule accommodates a by-right site plan review of a Council-approved RFP proposal and anticipates that any additional redevelopment projects would not be submitted until the special exception process takes effect.
• The City Council will act on special exception development applications within 60 days of receiving a complete submission. The Council will consider whether the proposed development satisfies the district’s permitted uses, standards of development, and affordable housing and open space requirements. The development must be consistent with the City’s adopted Streetscape Design Standards and Comprehensive Plan policies and incorporate reasonable landscaping, screening, and other design features to mitigate the impacts on surrounding properties from vehicular traffic, parking, and site lighting.
• Council agreed to further clarify that the special exception may allow minor deviation from the standards of development and may allow greater but reasonable deviations from the permitted uses and affordable housing standard of this ordinance. [As of the July 27 first reading of this ordinance.]

Building Scale and Density Transitions

• Step-down approach:
  • 10-foot building step-back requirement for any portion of a building above 40 feet or 3 stories in height (R-district and public park-adjoining buildings).
  • Increasing building setback-to-height-ratio requirement respective to Gundry Drive properties and Big Chimneys Park (“bulk plane”) of 45 degrees.

• Building heights:
  • 6 stories maximum building height, or 75 feet, whichever is less. [amended from 7 stories on June 22 by Council and proposed by staff and approved by Council on July 27].
  • Bulk plane plane and specific building height restrictions ensures building height transitions to tallest peaks toward S Maple Avenue, from 3-4 stories on the north side of Shirley Street; 5-6 stories on the south side of Shirley Street; and 6 stories on Gibson Street and S Maple Avenue.
  • Maximum height of buildings located within 150 feet of any property line of a property that fronts on Gundry Drive shall not exceed 4 stories or 40 feet in height, whichever is less. [staff proposed to substitute 50 feet in lieu of the 40 foot height limit on July 27, leading to citizen opposition and Council’s restoration of 4 stories or 40 feet in the proposed ordinance].

• Buffers and setbacks:
  • At least 35-foot setback from the abutting property line of any Gundry Drive address or public park property line (external to the overlay).
  • At least 18-foot setback from S Maple Avenue face of curb.
  • At least 18-foot setback from Gibson Street face of curb.
  • At least 20-foot setback from the abutting property line of any property within the district that is zoned R-M.
  • At least 15-foot setback from the abutting line of a commercially-zoned property.
  • At least 15-foot setback from the Shirley Street face of curb.
  • By-right developments in the district, shall provide a minimum tree canopy on the development site, such that when measured 20 years after the first certificate of occupancy is issued, the tree canopy shall cover at least 10% of the development site.
  • Screening requirements between internal-external overlay uses including:
    • 15-foot-wide landscape strip.
    • Vegetation & shade tree requirements.
    • 6-foot-tall screening element (masonry wall or wood fence).

• Architectural style:
  • The new overlay district may include general guidance about neighborhood compatibility but stop short of codifying architectural standards. Clarification: Council agreed that no architectural mandatory requirements will be imposed on by-right development, but neighborhood compatibility will still be requested. [As of the July 27 first reading of the ordinance.]

Housing and Affordability

• Unit mix:
  • Permits a variety of housing types (multifamily, townhouse) and loosens density restrictions.
• Affordability:
  • Establishes a minimum one-for-one replacement of any existing housing units for committed affordable units, or a minimum of 50% of total new housing units as committed affordable units, whichever is greater, included within a redevelopment at 60% AMI and below for the life of the project.
  • Note: This requirement was structured to apply to all properties within the overlay district; however City-owned properties subject to the request for proposals (RFP) released on June 24, 2026, will have a substantially higher expectation for their affordable housing contribution under two of the RFP’s three scenarios (b and c).

Open Space and Connectivity

• Big Chimneys Park:
  • Vegetative buffers and public open space requirements can serve as complementary and connecting links to Big Chimneys and surrounding trails. A minimum of 4 evergreen trees has been included to buffering and screening requirements between abutting residential districts.
  • Access to development incentives found in the new overlay district will also include a minimum 60 percent public open space contribution as an alternative means for qualification, beyond the affordable housing contribution stated above.
• Pedestrian Links:
  • New construction will be subject to City streetscape design standards, improving pedestrian and bicycling facilities.
  • Vegetative buffers and public open space requirements can also connect pedestrians to Big Chimneys and surrounding trails.
  • Most of these improvements are established as expectations in the RFP, given that the City-owned properties represent the northern and southern edges of Virginia Village.
• Parking:
  • All redevelopment will be subject to off-street parking requirements included in Sec. 48-1004.
• Placemaking:
  • Redevelopment and new public open space can incorporate “sense of place” wayfinding and signage.

Complementary Uses

• The overlay permits childcare, supportive services, and other residential-supporting uses, and neighborhood serving retail as accessory uses to principal residential uses.