Fort Collins Plans to Reconsider Height Limits in Campus Commercial Zones
Fort Collins may restore five-story building heights in commercial zones surrounding Colorado State University's campus after the city reduced maximum heights to four stories less than two years ago, potentially unlocking stalled development projects in transit-rich areas near the university.
The Planning and Zoning Commission heard testimony October 16 from development professionals who said multiple mixed-use projects have failed to move forward since the city lowered height limits from five to four stories in the Community Commercial and General Commercial zone districts effective January 1, 2024.
Sam Coutts, principal land planner at Ripley Design, told commissioners the height reduction has prevented projects from penciling out financially in areas well-suited for taller buildings.
"There are many developments in those zone districts that have been developed to five stories," Coutts said during public comment. "In my profession, there's been talks of other projects occurring in these areas that haven't come to fruition because it was lowered from five to four."
The commercial zones span both sides of CSU's campus along College Avenue and Elizabeth Street, areas characterized by high transit service, pedestrian infrastructure, and student-oriented businesses.
Recent Code Changes Reduced Heights
Fort Collins City Council reduced the maximum building height from five to four stories in the CC and CG zones as part of Phase One of comprehensive land use code updates that took effect January 2024, according to city council meeting records.
The reduction aimed to incentivize affordable housing by creating a base height of four stories that could increase to five stories if developers included income-restricted units. City planning staff believed the approach would encourage affordable housing production while maintaining neighborhood compatibility near established residential areas.
Noah Beals, Fort Collins development review manager, told the Planning and Zoning Commission that consultant analysis found the height incentive structure isn't working under current market conditions.
"With our consultants in that analysis, we found that that wasn't even penciling out," Beals said. "It would pencil out just to be a market rate at five. We'd start to see those developments."
City staff now recommend restoring the five-story limit in the General Commercial zone without requiring affordable housing components. The proposed changes were presented to commissioners as part of broader commercial corridor and centers land use code updates.
Transit Overlay Already Permits Greater Heights
Large portions of the CC and CG zones fall within Fort Collins' Transit Oriented Development Overlay district, which runs along College Avenue and other high-frequency transit corridors.
Within the TOD overlay, buildings can reach six or seven stories through incentive programs that provide additional height for structured parking, affordable housing, or other community benefits. The base height in TOD areas covered by CC zoning currently stands at four stories.
Beals explained that properties located in both the CC zone and TOD overlay face the four-story base limit, though they can access the overlay's height bonuses. A small portion of CC zoning exists outside the TOD boundary along Elizabeth Street, where the four-story cap applies without access to additional height incentives.
City planning staff indicated they haven't completed full analysis or public engagement on whether to restore five-story heights in the CC zone but expressed openness to the change based on the same market feasibility concerns driving the CG zone recommendation.
Development Community Supports Height Restoration
Coutts urged commissioners to support returning both CC and CG zones to five-story maximum heights, citing substantial transit infrastructure, pedestrian amenities, and existing five-story buildings that provide context for similar development.
"I think there's a lot of context that supports that from a building height standpoint, a lot of transit and pedestrian infrastructure, perfect place for some five-story buildings through there," Coutts said.
David Katz, speaking at 1418 Paddle Court, also voiced support for the proposed land use code updates during public comment, though he focused primarily on other aspects of the commercial corridor changes.
Fort Collins planning documents show the city reduced CC and CG heights in 2024 to balance increased development capacity with neighborhood character concerns, particularly in college-adjacent areas. Staff reports from the Phase One update cited resident feedback about contextual fit and transitions to lower-density neighborhoods as factors in the decision.
The proposed restoration to five stories reflects a policy shift prioritizing housing production and development feasibility over the incentive-based approach adopted less than two years ago.
Planning Commission Recommends Code Updates Move Forward
The Planning and Zoning Commission voted 7-0 to recommend City Council adopt the commercial corridors and centers land use code updates, which include the proposed height changes for the CG zone.
The commission's recommendation includes language asking council to ensure any code modifications avoid creating more restrictive outcomes than current regulations, particularly regarding change-of-use provisions for existing buildings.
Fort Collins City Council will consider the land use code amendments at first reading October 21, with second reading potentially scheduled for December 2. Staff will present the Planning and Zoning Commission's recommendations along with any additional analysis on the CC zone height limits before council action.
For more information about the commercial corridors and centers land use code updates, contact Noah Beals, development review manager, through the Fort Collins Planning Department.