Downtown Neighborhood Initiative
In communities where the downtown is the economic center, there is often little opportunity or desire to establish it as a residential neighborhood, since the competition for land by non-residential uses tends to price residential development to the edges. In such downtowns, economic support for the non-residential components is region wide, and residential uses are viewed as augmenting other uses creating what is today termed a "twenty-four hour environment." Downtown Urbana is not the economic center of the region. Indeed, at present, it is the weakest of the competing centers within the region. Thus, it is important for downtown to create a character that will help to establish its market niche, and one element of that character is to present itself as a pedestrian-scaled, mixed-use environment.
At present, downtown has a very modest residential component. It is estimated that approximately 3,500 people live within the general boundaries of what is perceived as downtown. Downtown is surrounded by neighborhoods, primarily on the west, south and east edges. Elements of those neighborhoods take some of their identity from downtown. Indeed, the westerly neighborhood is probably most closely associated within an image of downtown.
Build Housing Downtown
Downtown has the potential to become a significant neighborhood, and one which is quite different from all others within the City and, indeed, the region. Within downtown, there is an opportunity to develop an environment that mixes living and working, creating a significant and attractive choice for persons who seek a dynamic, rather than a passive, living environment. The key to this is new housing, which not only accommodates downtown residents, but also creates customers of downtown businesses and a constituency for downtown growth and improvement. It is estimated that the development of a downtown neighborhood could increase area population 15 to 20 percent, from its present 3,500 to an estimated 4,200. While the numbers might be small, in terms of what is needed to grow businesses, this growth in downtown-focused customers can create a critical mass for many businesses. Moreover, it changes the local environment and begins to add interest and activity in a manner that will attract others to frequent the area.
Through public forums and a workshop to solicit input about downtown, Urbana residents identified three potential locations for new housing as illustrated in Figure 27, Where Would You Put New Housing? These locations include the area north of Main Street between Race and Vine Streets (Near North), the area around Lincoln Square Mall, and along the downtown’s eastern fringe. Other housing opportunities may result in the redevelopment of neighborhoods adjacent to downtown.

Residential density should increase as one moves from the fringe of downtown toward its center. Thus, new development in the “Near North” area along street frontage could consist of three-story structures that feature two levels of residential units located over ground level shops as depicted in Figure 28, “Near North” Redevelopment. Three-story residential structures could be located behind mixed-use structures. Housing in the Lincoln Square Mall area could vary from new single-family on the south side of California Street to mixed density, perhaps high-rise, placed upon, or in place of, the mall. Depending upon the strength of the hotel market downtown, it is possible that the Jumer’s building might see partial redevelopment into housing. Housing east of Vine Street might be predominantly row houses or two-story apartments.

As evidenced by the proposals illustrated in Figure 29, “Near North” Redevelopment (Broadway looking South), the redevelopment of the “Near North” area of downtown represents the greatest opportunity for downtown housing. This proposal suggests the creation of a unique housing and shopping environment unlike any other found in the region. Housing is located above ground level shops with outdoor dining located next to a new public square. Parking should be located in the interior of the blocks in order to maintain continuous street frontage. The structure located on the west side of Broadway could accommodate two levels of parking covered by a rooftop garden for residents.

Extend the Downtown Neighborhood Image Beyond the Core
In addition to encouraging housing within the downtown core, it is useful to expand the residential perception of a downtown neighborhood so as to increase downtown support and to reinforce the “urban” image downtown. Within the core, mixed-use and especially non-residential use, will create the dominant image. In the neighborhood periphery, residential use will continue to be the dominant image, but mixed-uses should also be accommodated. Local zoning should accommodate this difference, as should scale and style of building and parking requirements.
The size of this expanded neighborhood should vary to reflect local conditions. The development of an auto-oriented environment along University Avenue probably precludes any extension of the downtown image north of this major arterial. The modest housing area to the east of downtown should become part of the neighborhood, especially since the downtown is the closest commercial location for this area. To the south, the downtown neighborhood should extend to abut the High School since high schoolers present a strong market for downtown businesses.
The residential neighborhood extending west to Lincoln Avenue ought also to be considered the downtown neighborhood. This area sits between the downtown and University, and attachment to the downtown, especially for image purposes, is critical since Lincoln Avenue is a main entry for University tourists, and they need to be aware of the existence and attraction of downtown. Moreover, the area along west Main Street, from Central Avenue to Lincoln Avenue, has some of Urbana’s most historic homes. While this area also contains some newer multi-family development, consideration should be given to emphasizing this historic resource as a gateway to the larger downtown. One way to do this is to reduce the tendency towards new construction to accommodate mixed-use buildings under the MOR zoning district. This might be achieved by creating incentives to reuse existing buildings rather than constructing new. The process should begin with a careful review of the applicable development regulations, which often hinder reuse by requiring compliance with zoning and building standards which are very difficult to achieve in adaptive reuse projects. One possible change to the zoning ordinance would allow non-residential reuse of existing buildings which doesn’t change the character of a site as a permitted use, and make new non-residential construction a special use. Another option would be the adoption of performance-based zoning for the MOR district, rather than use-based zoning. Grant and loan programs to assist in adapting older structures to new uses should also be considered.
