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The city of Hillsboro had grand plans for a vacant downtown parcel: a locally owned natural grocery store topped by 74 new apartment units.

But after officials selected the mixed-use development proposal, they realized that its density would exceed limits established in city code.

Now the Hillsboro Economic Development Department is working to simplify its downtown zoning codes and several others to become more developer friendly. City officials say amendments would ensure that Hillsboro doesn’t miss out on future tax-generating opportunities.

“We found a great opportunity and then we realized it couldn’t happen under the city’s current code,” said Karla Antonini, the project manager working on the code update. “Our zoning ordinance is so complex that no one even wants to read it. So we decided to simplify it.”

After being awarded a Transportation and Growth Management grant from the state, the city audited its codes and uncovered a handful in downtown that were redundant or hindered potential development. The most glaring one limited housing density to 36 units per acre.

The city is proposing to completely eliminate the maximum density in downtown and instead opt for a five-story limit. This would allow developers, and the market, to determine the number of units in future projects.

This amendment alone, Antonini said, would open the door for the mixed-use development being pitched by Gresham-based Tokola Properties. But officials decided to go further, she added.

The other major change being proposed would be consolidation of Hillsboro’s three present downtown zoning types into one. Thirty uses – from neighborhood community to permanent open space – could then be attached to any parcel in the downtown zone.

“The three downtown zones are very similar now, but they are different enough to cause problems,” Antonini said. “By consolidating them into one code it provides a level of predictability for both those people looking to do projects in downtown and the city as well.”

If approved, the amendments also would remove minimum parking capacity for all new developments in downtown. The city learned from a 2007 study that it has an abundance of parking spaces not being used. Plus, Antonini pointed out, banks consider parking when reviewing loan applications, so another development hurdle would be redundant.

Another possible code change would create a 100-foot buffer zone around the entire downtown core for commercial and mixed-use development, but with a two-story height limit. This would provide a transition between mostly commercial development in the core and residential neighborhoods in Hillsboro’s outskirts.

The proposed code amendments were reviewed by city planners and presented to the public during an open house. Next, citizens will be able to comment on the record during a hearing in front of the Planning Commission, at 6:30 p.m. on March 17 in the Hillsboro Civic Center’s auditorium.

The commission is expected to vote on the proposal by mid-April.