What is an example of a tool that city authorities can use to encourage mixed-use developments?

Density concessions are a powerful tool that city authorities can employ to encourage mixed-use developments. This approach involves offering developers the ability to exceed standard zoning limits on the number of units or the floor area ratio in exchange for including components that align with community goals, such as affordable housing or public amenities. By providing these concessions, municipalities can effectively promote developments that combine residential, commercial, and recreational spaces, fostering vibrant communities where people can live, work, and play in close proximity.

In contrast, while tax incentives, densification regulations, and permitting fees can also influence development, they operate in different manners. Tax incentives may provide financial benefits but do not directly alter zoning; densification regulations set parameters for how dense a development can be but may not incentivize mixed-use projects specifically; and permitting fees are typically a cost associated with the development process rather than a mechanism to encourage specific types of development. Thus, density concessions directly align the goals of city planners with the interests of developers, making them a particularly effective tool for fostering mixed-use environments.