Ferguson Township needs to consider a bold new direction for development along North Atherton Street. The proposed Nittany Gateway District is a mixed-use zoning plan designed to address pressing housing needs, modernize commercial spaces, and improve transportation and sustainability. By allowing residential and commercial uses in the same buildings and offering incentives for building up instead of out, the district presents a smart growth strategy tailored to the evolving needs of the Centre Region.
Read the report here: Ferguson Nittany Gateway District Proposal 2025.04.01
The Nittany Gateway District is a proposed zoning update in Ferguson Township designed to modernize development along North Atherton Street. Currently zoned as General Commercial, this area permits hotels, restaurants, banks, and drive-through establishments, but limits residential uses to only group homes and personal care facilities. The proposed district would allow for full mixed-use development, enabling commercial spaces on the ground floor and residential units above, creating a more walkable and vibrant neighborhood.
One of the major goals of the Nittany Gateway District is to encourage higher-density development while maintaining flexibility for current businesses. Many commercial buildings today follow what urban theorists Robert Venturi, Denise Scott Brown, and Steven Izenour described in their book Learning from Las Vegas as “decorated sheds”—functional boxes with signage to communicate purpose. These low-rise, car-centric structures are common along North Atherton. The proposed zoning does not eliminate this model but encourages businesses to consider building upward.
To promote vertical development, the Township proposes a set of incentives. Developers who build higher may be eligible for increased building coverage—up to 80%—and reduced side yard setbacks. Additional height bonuses may be available for projects that include public amenities like transit hubs or plazas. These changes are designed to maximize land use and support a shift toward pedestrian-friendly design.
Sustainability is a central component of the district. While the current impervious surface limit is 80%, the new zoning would allow up to 100% impervious coverage if developers use modern stormwater management systems, such as green roofs, underground retention tanks, or permeable paving. This approach enables more dense development while still protecting environmental quality. In addition, the proposal reduces parking requirements for projects that support alternative transportation methods, such as bike racks, e-scooter stations, or transit access.
Economically, the Nittany Gateway District is expected to benefit both residents and local businesses. Increased residential density will create a larger customer base for commercial tenants, while mixed-use buildings can accommodate a range of businesses and housing types. This type of growth supports local job creation, expands the tax base, and provides more housing options in a region experiencing significant housing pressure.
When comparing a 1-acre site under current General Commercial zoning versus the proposed Nittany Gateway District, the difference is clear. A standard two-story commercial building might produce around 39,000 square feet of total building space with no residential units. In contrast, a five-story mixed-use building in the Nittany Gateway District could reach 126,000 square feet in total area, with 25,200 square feet of ground-level commercial and 100,800 square feet of residential space above—enough for approximately 84 three-bedroom units.
The proposed zoning would also provide better overall land use. While the current model might support around 78 parking spaces, the proposed model—with reduced parking ratios and integrated transit incentives—could include 269 spaces across both residential and commercial uses, along with dedicated areas for bikes and micromobility infrastructure.
The Nittany Gateway District presents a future-focused approach to zoning that balances economic growth, environmental stewardship, and livability. With its combination of incentives, flexible land use, and integrated infrastructure, it is designed to transform a key corridor in Ferguson Township into a dynamic and resilient urban district.
Read the report here: Ferguson Nittany Gateway District Proposal 2025.04.01
Conclusion
The Nittany Gateway District represents more than just a zoning change—it’s a forward-thinking blueprint for how Ferguson Township can grow responsibly and vibrantly. By combining housing, commerce, and transit in a single walkable district, the township can meet the demands of the future while preserving its unique identity. Whether you’re a resident, business owner, or developer, this proposal offers a promising path to a more connected and sustainable community.
Rendering of what North Atherton could look like in the Nittany Gateway District
