The Senate passed a bill amending the state’s land use and development law to create incentives for downtown growth and to set new standards for building in less developed areas.

To encourage development in the state’s designated downtowns, the bill reduces the number of housing projects requiring a permit, sets up an expedited review process all projects, removes permitting fees and a sets up faster sewer permitting process.

The bill also seeks to limit urban sprawl by adding new criteria placing tighter restrictions on strip development.

Some lawmakers oppose the change to the Act 250 process because they say it makes it harder for businesses to locate in strip areas. Among them was Sen. Peg Flory, R-Rutland, whose amendment to remove that section from the bill was rejected Wednesday.

The Shumlin administration is proposing the changes to create tight-knit downtowns and reel in strip development.

Noelle MacKay, the commissioner of Housing and Community Development, said under the changes to Act 250 developers would be required fill in around big box stores to make them more pedestrian friendly. She cited the example of Williston Road in South Burlington.

“We don’t want strip development, we want that same amount of development to look different,” MacKay said.

Lawmakers say the bill does not stop development in areas that are considered to be part of a strip. Sen. Bob Hartwell, D-Bennington, who chairs the Natural Resources and Energy Committee, said developers will have to infill and use smart growth standards rather than “sloppy development” techniques.

“What we’re trying to do is infill (and) promote downtown development,” he said. “This is not about saying you can’t do it. It’s about saying you need to do it in a better way.”

Developers oppose the changes. They say the definition of strip development – broad road frontage, single-story buildings, a dependence on highway connections and limited walkability, for example – is unclear, and could give opponents of certain projects a case for litigation.

“I will be surprised if there is not litigation over it, and I think some permits will be denied,” said Katie Taylor, a lobbyist representing the Lake Champlain Regional Chamber of Commerce and the Greater Burlington Industrial Corp.

The Senate made several minor changes to the bill on Wednesday.

“I think what’s there now is much cleaner and clear and I think it will help both developers and district commissions to be on the same page,” MacKay said.

The bill now heads to a conference committee.

Twitter: @HerrickJohnny. John Herrick joined VTDigger in June 2013 as an intern working on the searchable campaign finance database and is now VTDigger's energy and environment reporter. He graduated...

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