The Jackson Town Council on Oct. 6 approved LDR text amendment P25-031 to add a narrowly drawn exemption from affordable workforce housing mitigation for qualifying public/semi-public nonprofit uses outside the Public/Semi-Public (PSP) zoning district. The change was requested by Mental Health & Recovery Services (MHRS) to avoid a mitigation fee estimated in staff's calculation at roughly $195,000 for a 2,912-square-foot expansion at 640 East Broadway that would consolidate several programs into one building.

Planning staff and the Planning Commission recommended approval with more restrictive language than the applicant proposed. Planning Director Andrew Bowen told council staff had added criteria intended to narrowly limit eligibility: the use must (1) be allowed in the PSP zone, (2) be operated by a 501(c)(3) nonprofit, (3) provide a community service required by law or court orders, and (4) derive at least 50% of annual funding from federal, state or local government sources (staff clarified the intent was that the 50% threshold could be met by a combination of those government sources rather than a single source).

Bowen said the exemption as drafted prevents rezoning the site to PSP (staff viewed rezoning as inappropriate for the neighborhood fringe) while still allowing certain public-semi-public uses to qualify. The amendment also requires an affidavit affecting title that states future change of use or structural expansion not meeting the exemption criteria would be subject to applicable housing mitigation, preventing an exempt use from being sold and repurposed to avoid mitigation.

MHRS Executive Director Deidre Ashley addressed council and said consolidating services into the expanded Broadway site would allow integrated mental health and substance-use treatment under one roof, reduce annual rent costs by about $150,000 and support mandated county services including Title 25 involuntary hospitalization assessments and 24/7 crisis response.

Councilors called the amendment a narrowly tailored approach that preserves neighborhood scale while allowing the nonprofit to consolidate services. Council voted to approve the text amendment and directed staff to prepare an ordinance for first reading. The motion was made and seconded in council and passed by voice vote.

Why it matters: The change allows a designated county mental-health provider to consolidate services without paying the full housing mitigation that would otherwise be required for a building expansion in the current zoning. Council and staff framed the amendment as narrowly targeted to providers that perform government-mandated services and receive the majority of their funding from government sources.

What comes next: Town staff will prepare the implementing ordinance for first reading at a future council meeting.