PLANNING AND ZONING COMMISSION AGENDA ITEM
ACTION REQUESTED:
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Conduct the public hearing regarding amendments to various sections of Title 6 (Zoning Ordinance) pertaining to banks and financial institutions in the B4 (Downtown Core) zoning district
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Allison Laff, AICP, Deputy Director
ENTITLEMENTS REQUESTED:
Amend Chapter 1 (Zoning Title, Purpose, Definitions) and Article D (B4 Downtown Core District) and Article E (B5 Secondary Downtown Direction) of Chapter 7 (Business Districts) of Title 6 (Zoning Ordinance) in regards to banks and financial institutions.
BOARD/COMMISSION REVIEW:
Notice of the public hearing was published in the Naperville Sun on Sunday, March 2, 2025; Wednesday, March 5, 2025; and Sunday, March 9, 2025. On March 3, 2025, written notice was additionally sent to the property owners and customers of B4 zoned property currently improved with a bank or financial institution.
BACKGROUND:
At its February 4, 2025 meeting, the Naperville City Council directed city staff to initiate a proposed amendment to the Naperville Municipal Code to amend the B4 (Downtown Core) zoning district provisions to prohibit banks and financial institutions from locating on the first floor in the City’s B4 (Downtown Core) zoning district, unless granted a zoning variance.
The proposed amendment has been prepared in response to Council’s direction.
DISCUSSION:
Section 6-1-6 (Definitions) of the Naperville Municipal Code currently classifies banks as commercial services and financial institutions as general services which are regulated differently in the City’s B4 (Downtown Core) zoning district. Commercial services and general services are further differentiated as follows:
- Commercial Service: The business or occupation of doing convenience work for others for a fee with the services performed on-site and goods available for purchase on-site. Commercial services depend on visibility to attract walk-in customers.
- General Service: The business or occupation of doing work for others for a fee with a primary business, office, showroom or training component. General services are typically scheduled by appointment.
Per Code, general service uses (including financial institutions) in the B4 district are restricted to the second floor or above, while commercial services (including traditional, retail banking locations which focus more on walk-in-customers) are permitted on the first floor. These requirements are intended to maintain and/or support the development of a walkable retail/commercial focused downtown district at street level, as recommended by the Naperville Downtown2030 plan.
If a general service seeks to locate on the first floor in the B4 district, that tenant is required to first receive approval of a variance. Such a variance was recently requested for Fidelity Investments, which is a financial institution (general service), at 47 E. Chicago in Naperville. In contrast to Fidelity’s required variance, Wells Fargo (also at 47 E. Chicago) was permitted to locate on the first floor by right given its banking (commercial service) designation.
During Council’s review of the Fidelity variance on February 4, 2025, Council directed staff to amend Title 6 (Zoning Ordinance) to prohibit both banks and financial institutions from locating on the first floor in the B4 district, unless granted a zoning variance.
In response to this direction, the proposed amendment (draft attached):
- Modifies the definition of “commercial services” to exclude banks.
- Modifies the definition of “general services” to include both banks and financial institutions.
- Modifies the B4 (Downtown Core) conditions to note that banks and financial institutions are classified as general services.
- Modifies the general services listing in B5 (Secondary Downtown) to include banks and financial institutions as permitted uses.
- Any bank that is currently legally operating on a B4 zoned property will become non-conforming upon passage of the proposed amendment. Non-conforming uses are subject to Chapter 10 (Non-Conforming Uses) of the Naperville Municipal Code (attached for reference).
Staff is supportive of the proposed amendment, as written, finding that it further promotes the retail/commercial tenancy intended for the first floor of downtown Naperville properties.