Communities ranging from major metropolitan areas to small towns are discovering that supporting small developers can yield significant revitalization benefits. According to Haltom United Business Alliance Communications Director Joe Palmer, small developers offer distinct advantages for municipalities like Haltom City. "Unlike large-scale projects that can drastically alter a city's character, small developers tend to focus on less sizeable and more affordable projects," Palmer said. Their familiarity with local market dynamics allows them to design projects that meet community needs while often renovating existing properties, contributing to preservation efforts.
Despite these benefits, small developers frequently encounter financing and regulatory obstacles. Palmer identified several policy changes Haltom City could implement, starting with eliminating parking minimums that significantly increase development costs. "These outdated and unnecessary parking requirements significantly increase development costs, and effectively serve as a deterrent for small developers," Palmer emphasized. Chicago recently passed a zoning ordinance eliminating parking mandates across most of the city, making projects more financially feasible for smaller-scale developers.
Streamlining permitting processes represents another crucial reform. Palmer suggested creating expedited approval pathways for small projects meeting specific criteria, avoiding lengthy public hearing requirements. Reducing or waiving administrative, planning, and impact fees for small-scale developments could also alleviate financial burdens that disproportionately affect smaller developers. Philadelphia implemented the Capital Consortium policy, creating a streamlined application portal at https://www.phila.gov/services/permits-violations-licenses/get-a-license/business-licenses/ for developers seeking financing.
Additional support mechanisms include offering subsidies, tax credits, grants, and low-interest loans through programs like those described at https://www.haltomcitytx.com/government/departments/economic-development. Providing vacant or tax-delinquent lots at affordable rates could give local developers accessible ownership opportunities. Municipalities can further assist by establishing mentorship programs, hosting workshops on project management and local policies, and assigning government liaisons to guide small-scale projects through bureaucratic processes.
Smaller municipalities have seen comparable success with targeted programs. Staunton, Virginia, with approximately 26,000 residents, offered free design assistance to business owners who restored downtown building façades, resulting in five vibrant historic districts. The Village of Mount Morris, New York, established a revitalization program providing developers with detailed inventories of downtown properties, which spurred increased private investment.
The experiences of Chicago, Philadelphia, Staunton, and Mount Morris demonstrate that communities of various sizes can benefit from policies supporting small developers. As Palmer noted, removing parking mandates serves as an effective first step to encourage local investment, with the resulting benefits achievable by any community regardless of size. For Texas municipalities seeking economic growth while preserving local character, adapting these proven strategies could unlock significant revitalization potential through empowered small developers.
