The Michigan Economic Development Corporation (MEDC) typically focuses on economic development rather than specific zoning laws. Zoning policies for three-story buildings would more likely be regulated by local city or county zoning ordinances rather than by the MEDC itself.

MEDC tends to focus on policies that encourage mixed-use developments, walkability, and economic revitalization in towns. 

Some common zoning recommendations for three-story buildings and economic development might include:

Common MEDC-Inspired Zoning Strategies:

1. Mixed-Use Zoning:
• Encourages integrating commercial, residential, and office spaces within the same building.
• Typically allows for retail on the ground floor and residential or office units on upper stories.
2. Incentives for Higher-Density Development:
• Zoning that allows taller buildings in specific areas to promote economic density and use of vertical space.
• Incentivizes developers to add residential units, office space, or co-working hubs.
3. Flexible Parking Requirements:
• Reduced minimum parking requirements to accommodate multi-story developments, making the building project more feasible and maximizing the buildable area.
4. Design Standards:
• Focus on making three-story buildings visually appealing, incorporating active street-level designs, and ensuring building facades are attractive and context-sensitive.
5. Infill Development and Adaptive Reuse:
• Encouraging redevelopment of underutilized lots with three-story or taller structures.
• Incentivizing conversion of older or historic structures into multi-use buildings.

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1. Mixed-Use Zoning for Economic Resiliency

Mixed-use zoning is a core strategy promoted by the MEDC for revitalizing downtown areas, small towns, and older suburban districts. This type of zoning encourages the combination of residential, commercial, and even light industrial uses within a single building or neighborhood, promoting walkability, boosting local businesses, and creating a sense of place. For three-story buildings, the ground floor might typically be designated for retail or commercial use, while the upper floors are used for residential units or office spaces. This mixed-use format can increase foot traffic and diversify the tax base, which helps to stabilize local economies during economic shifts .

2. Reduction of Parking Requirements

Traditional zoning often mandates minimum parking requirements, which can pose barriers to compact, mixed-use developments, especially in smaller communities. The MEDC supports reducing or eliminating these requirements for three-story mixed-use buildings to encourage denser development patterns, making it easier to build vibrant, pedestrian-friendly areas without the added cost and space consumption of large parking lots .

3. Form-Based Codes and Contextual Zoning

The MEDC suggests using form-based codes or contextual zoning to ensure new developments are in harmony with the surrounding neighborhood’s character. Contextual zoning regulations focus on the physical form and scale of buildings rather than just their use, allowing for a cohesive streetscape. For three-story buildings, this could mean specific façade treatments, setbacks, and height restrictions that align with existing historical buildings or desired future architectural styles .

4. Encouragement of Upper-Floor Residential Use

The MEDC highlights the value of upper-story residential uses in three-story buildings, particularly in downtown areas. Revitalizing vacant or underutilized upper floors for residential use can enhance a downtown’s vitality by adding permanent residents, which supports local businesses and helps create 24/7 activity, reducing the perception of empty, dormant downtowns .

5. Tax Incentives and Redevelopment Programs (TIF) (Boyne City either used this or some people were trying to finance I think, a parking lot with this. 

The MEDC also supports the use of tax increment financing (TIF), community redevelopment programs, and other incentives to make it financially viable for developers to pursue three-story mixed-use projects. This can include façade improvement grants, historic preservation tax credits, and other resources aimed at reducing the cost of construction and renovation for multi-use, multi-story properties .

By leveraging these zoning strategies, communities can facilitate the construction of three-story buildings that contribute to economic growth, increase housing options, and create vibrant, walkable neighborhoods.