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OCR for page 67
Case Studies 67 Baltimore: The Maritime Industrial Zone Overlay District (MIZOD) Background Principal Findings Baltimore, Maryland, is the farthest inland deepwater port city on the U.S. East Coast. The city, founded in 1729, is now approximately 80 square miles and has grown to a population over Creating protected 630,000 within an urban area population of approximately 2.7 million (U.S. Census 2010). industrial zones in The waterfront has always been viewed as one of the city's most valuable assets. During the real urban centers estate boom of the late 1990s and early 2000s, the city converted numerous waterfront industrial where there are properties to mixed-use development with significant high-end residential housing. These con- versions occurred mainly through City Council and mayor-approved planned unit developments restrictions placed (PUDs) for sites in the existing industrial zone. In 2004, the city enacted a Maritime Industrial by the planning Zoning Overlay District (MIZOD) to protect its maritime industries by identifying waterfront authority on resi- areas with deepwater drafts of 18 feet or more and reserving them for industrial use. The Balti- more Department of Planning (DOP) annually evaluates the MIZOD's effectiveness in retaining dential, retail, and the maritime industry. Based on its success in bringing jobs to the city, the MIZOD has been leisure develop- extended to 2024 and is being considered for permanent rezoning. ments can safe- The Story guard commercial Baltimore Development Corporation (BDC) is the City of Baltimore's economic development centers and attract agency. BDC conducts annual outreach meetings with businesses throughout Baltimore City. new business. This During the real estate boom in the early 2000s, many of the maritime and industrial businesses policy is particularly began raising concerns about real estate developers buying industrial waterfront parcels and hav- ing them rezoned as PUDs (see Exhibit 7-1). Developers began building high-end residential applicable to port housing, "hop-scotching" over industrial parcels and quickly moving to take over the waterfront. sites where water- As real estate developers urged "highest and best use" zoning, elected officials made decisions to rezone land as PUDs without vetting through the city's Planning Department. The limited and front land, which is valuable waterfront land needed for port-based industrial development was disappearing. vital for vessel man- The port/maritime industries, once a powerful lobby, seemed to have lost their voice. Although agement, could be the State of Maryland assumed administration of some Baltimore cargo terminals in 1972, the lost to residential Maryland Port Administration and the City of Baltimore had communicated only infrequently about issues of land use and zoning since then. development, alter- When the city finally introduced legislation to address zoning practices, residents in new PUDs ing the land use of were also voicing concerns about the noise, truck traffic, and dirt generated by the industrial uses. the area forever. Many new residents said developers led them to believe that industrial uses would be gone in 2 to 3 years. When businesses and residents became more vocal, the BDC and DOP teamed up to preserve maritime industries in Baltimore. A 2002 BDC report stated that private-sector investments in port facilities were in danger of being deferred over uncertainty about city zoning policies. In addition, the study suggested that when a deepwater site was rezoned for mixed-use develop- ment, it was very unlikely to revert to maritime use. The report recommended zoning as one method available for protecting deepwater access for maritime shipping and related activities. In 2004, in response to study findings, the City of Baltimore adopted a Maritime Industrial Zoning Overlay District (MIZOD) land parcel designation. The new zoning designation over- laid the heavy industrial (M-3) zone and protects waterfront land with a draft greater than 18 feet that is already industrial and has good highway or rail access. The city limited the MIZOD to a 10-year life; however, shortly after MIZOD establishment, the industrial community suc- cessfully lobbied to have its life extended to 2024.

OCR for page 67
68 Guidebook for Understanding Urban Goods Movement Exhibit 7-1. Boundaries and dates of adoption of PUDs around the MIZOD. Source: City of Baltimore Department of Planning, MIZOD Summary and Evaluation 2009-2010. The MIZOD preserves the areas within the district for maritime industrial use by Disallowing PUDs, which are currently the principal method of converting industrial zoning to mixed-use; Prohibiting hotels, motels, taverns, and all other uses not permitted in an M-3 district; Allowing offices and restaurants as accessory uses only; and Maintaining the underlying heavy industrial (M-3) zoning. The 2004 MIZOD legislation required the DOP to produce an annual report to track its effec- tiveness in retaining maritime industries. The annual report has shown that about 16,700 direct jobs can be connected to the port. Since 2007, approximately 100 new firms have located to the MIZOD area that now boasts over 160 businesses. Because of the global recession in 2009, there were 1,713 vessel calls, down from a 2005 high of 2,119. Lessons and Conclusion Although annual totals vary from year to year, the annual average investment in the MIZOD since 2000 is $26.3 million. Currently, the city is rewriting its 30-year-old zoning code and consid-