As diminishing revenues from red-light cameras press the city to seek long-term financial fixes, the Des Moines City Council and Planning Commission convened on Nov. 5, 2026, for a joint study session focused on reshaping downtown zoning.
Prompted by an evaluation from a consulting firm, local leaders grappled with how to balance state-mandated housing targets with the need for commercial spaces that generate vital sales tax revenue.
The discussion highlighted a delicate tug-of-war between easing developer restrictions to eliminate vacant lots and protecting public view corridors, historic structures, and the vibrant, walkable business district residents envision.
Joint City Council & Planning Commission Study Session
All six members of the Des Moines Planning Commission sat in on this city council study session in order to discuss potential zoning changes. The discussion was focused on the downtown core, and was preceded by a presentation by ECOnorthwest on the state of development and goals for the area.
Presenters said that developers like to see concentrated areas of retail activity and residences that open directly onto the street. They said that Des Moines currently has many overlapping restrictions on development. These restrictions effectively push developers to other cities where they can build what they know will pencil out. It was recommended that the city prioritize the most important regulations, and ease up on the rest.
The presenters said taller buildings tend to retain their value over time, while buildings with only one story may eventually be worth little more than the land they sit on. Tall buildings effectively add square footage to the city, increasing housing and business space, and are more profitable for developers.
Several public commenters expressed concerns about zoning changes that would affect their views. They asked the council not to marginalize the population that moved to Des Moines expressly for the gorgeous views. Commenters also thought that buildings over 50 years old should be preserved as historic, and worried about the loss of parking requirements for new developments.
Mayor Yoshiko Grace Matsui said the city budget has been saved in recent years by red light camera revenue. However, this revenue source is diminishing every year, so there needs to be another revenue source to make up for it. Development creates one-time revenue when it is built, and then ongoing revenue from any new businesses that move into the buildings. Developers are not clambering to build in Des Moines, and this discussion focused on how to appeal to them while maintaining local priorities.
Commercial development in particular generates revenue for the city, both in the form of one time taxes and ongoing sales or business taxes. Residential units, on the other hand, generate ongoing costs for the city in terms of services like police and fire, which must be increased to serve a growing population, and they do not provide ongoing revenue beyond a little property tax.
It was mentioned that mixed-use buildings, where the ground floor must be commercial, are not attractive to developers. Their profit tends to come from building residential units, and they often consider the commercial space to come at a loss. If the city allows for more floors of residential space, this is more beneficial for the developers’ bottom lines. In addition, Washington State has mandated that Des Moines add 3,600 new residential units in the next 20 years. Townhouses were put forward as an ideal development for downtown’s vacant lots. Ways to add height in certain locations with minimal impact to views were discussed.
There was some argument against giving up commercial requirements for developments. Councilmember Steinmetz said that a growing residential population would need more retail and commercial establishments. Councilmember Robyn Desimone said she wanted to make sure residents had things to do and places to spend money within the city. It was also argued that retail needs parking.
Some suggested that market forces would balance out over time: a growing population would be more appealing for developers to build retail once there was more of a market for it. Another suggestion was to allow businesses in every home, so that businesses could grow in place.
All agreed that the code for downtown should be simplified, perhaps even turned into one zone for simplicity. Councilmember Jeremy Nutting suggested that there should be facade codes that would help to beautify the downtown business corridor. Councilmember Desimone said the zoning should specify “retail” rather than simply “commercial”, as retail storefronts are more attractive for creating a walkable downtown core.
Councilmember Steinmetz said the priority should be on attracting development of the vacant lots, even if it means doing away with the “ground floor commercial” requirement. More residential units there would benefit the current retail in the area.
As City Manager Katherine Caffrey said, this was a discussion only. The meeting provided clarification as to the direction the council would like to go with downtown zoning. Potential zoning changes will be discussed more in the future before anything is decided. She expressed her own concerns with getting rid of ground floor commercial requirements, as it would eventually turn from a business district to a residential neighborhood, with dire revenue implications for the city.
Mayor Matsui added that there is a dearth of office space available downtown. Councilmember Nutting agreed that businesses have looked for space downtown and not been able to find it. He felt that some commercial space in appropriate places should be required. Mayor Matsui added that she would love to see the “three B’s” in Des Moines: a bakery, bookstore, and brewery.
Video
Below is full, raw video of this study session:
