SACO — As the city considers changes for the downtown B-3 district, it is looking at a size regulation that is more lenient than recommended by the Planning Board.

The B-3 district is a pedestrian-friendly district in the downtown that provides an urban area where businesses and residences compliment each other.

In September 2009, the council asked the Planning Board to review the B-3 zone and make any recommended changes.

The Planning Board had proposed limiting future commercial and retail development to 3,000 square feet, while the current proposal on the table limits development to 6,000 square feet.

The Planning Board had also recommended a residential replacement provision, which would require developers who remove a residential unit downtown to replace it or pay a $50,000 housing fee. The council is proposing to strike this proposed clause in order to further study the issue.

The suggested changes would also include extending the design review ordinance in the B-3 district so that one and two family buildings, building additions and conditional uses would be subject to design review.

Mark Johnston, who owns multiple buildings in the B-3 zone, said Saco’s downtown was thriving because the residential units in the area provided a customer base. He said that rehabilitating houses was cheaper per square foot than building new homes.

“The best thing we can do to keep affordable housing is rehabilitation, not reconstruction,” he said.

Johnston said that while $50,000 may be excessive, the city should consider keeping a housing fund fee for those who remove residential units and don’t replace them. He said the city needs to “set a tone” for all developers looking at the downtown.

Johanna Hoffman, who lives and runs a business in Pepperell Square, said she continually has customers who comment on how beautiful Saco’s downtown is. She said she strongly supported a 3,000-square-foot limit on development in the B-3 zone. If a large scale business were to move downtown, it would “forever change the integrity” of what the city has worked so hard to maintain, she said.

Former city councilor Ronald Morton said he felt the design review amendment made it difficult to provide additional affordable housing and he felt that the proposed changes were very restricting.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, Ext. 325 or egotthelf@journaltribune.com.