The CTR Overlay in Old City:
Regulatory Review or Regulatory Delay?
What 19 years of city data shows about how the Center City Overlay
impacts businesses in Old City
What We'll Cover
- What the CTR overlay does — and which uses it restricts
- How long the ZBA pathway takes — the headline finding
- How often the ZBA approves — quality control or rubber stamp?
- How much of the ZBA caseload the CTR drives
- What the RCO recommended — and what ZBA did
- Consequences — cost, delay, and applicants who never opened
What the CTR Overlay Does in Old City
Old City sits within the Old City Residential Area — a sub-area of the Center City Overlay District (Section 14-502). Table 14-502-2 overrides base zoning:
| Use | Base Zoning (CMX-3/4) | CTR Overlay Effect | Net Result |
| Sit-down restaurant | By-right | S — Special Exception | ZBA Required |
| Take-out restaurant | By-right | S — Special Exception | ZBA Required |
| Prepared food shop | By-right | S — Special Exception | ZBA Required |
| Body art / tattoo | By-right | N — Prohibited | Variance Required |
| Assembly / entertainment | Varies | N — Prohibited | Variance Required |
| Roof deck (commercial) | Special Exception | May add restrictions | ZBA at Minimum |
S = Special Exception (must go to ZBA but standard is achievable). N = Prohibited (needs a use variance — much higher legal bar).
Time at the ZBA Before Construction Can Start
~58 days
Median ZBA processing
(filing → hearing)
across all 162 appeals
No permit work can begin until the ZBA decides.
Quality Control or a Rubber Stamp?
98%
F&B approval rate
(approved ÷ decided)
1
F&B denial
across all F&B use types
in 19 years
Only 1 F&B denial on the merits in 19 years. Virtually every F&B application was approved.
CTR Touches Over Half the Appeals
53%
of ZBA appeals in our sample
(85 of 162)
are tied to a CTR-overlay trigger
36%
would not have happened
at all without the CTR
(59 of 162)
How Long Does the ZBA Process Take?
Even the fastest use types (roof decks, signage) still take ~7 weeks in the ZBA queue — before construction can begin.
What OCD Recommended, and What ZBA Did
Across 76 RCO meetings since 2012, OCD recommended approval in the overwhelming majority of cases. The two cases where OCD opposed split: 160-164 N 2nd St was denied by the ZBA, while 222 Market St (the smoking-lounge case) was approved over OCD's opposition. Community sentiment and ZBA decisions point the same direction in nearly every case.
Consequences of the Overlay
28
F&B applicants filed ZBA appeals
but never got a business license
$5K–$15K
Estimated cost per
ZBA hearing
~58 days
Median ZBA processing
(filing → hearing)
before construction can start
Some of these applicants won ZBA approval and still never opened.
Aside: The Smoking Lounge Case
222 Market St — Proposed a smoking lounge as part of an existing sit-down restaurant.
May 21, 2025: OCD's RCO voted to deny the recommendation.
Aug 5, 2025: The ZBA approved it anyway.
This is an n=1 case, but it illustrates that the ZBA process doesn't necessarily amplify community input — the board can and does override RCO recommendations.
The Smoke Shop Irony
Restaurants
Sit-down restaurants, take-out restaurants, and prepared food shops all require a special exception under the CTR overlay.
Cost: $5K–$15K in legal fees + months of ZBA processing time before construction can begin
Almost always approved anyway.
Smoke Shops
Smoke shops are classified as "Retail Sale of Food, Beverages, and Groceries" — a use that is by-right in Old City.
The sale of tobacco is preempted by state law. The city cannot regulate it.
No ZBA. No delay. No cost.
The overlay makes it harder to open a restaurant than a smoke shop. The uses the community wants most face the highest barriers. The uses many residents object to face none.
Key Takeaways
- The CTR overlay is at issue in over half (53%) of ZBA appeals in the Old City Residential Area
- The ZBA approves nearly all of them — F&B approval rate is 98%, with only 1 denial in 19 years
- The ZBA pathway adds months of delay before construction can begin — median ~58 days just for the hearing alone, plus further time for the decision and post-decision permitting
- OCD's own RCO recommended approval in 74 of 76 cases (2012–2026) — and ZBA outcomes tracked OCD's recommendations closely
- The overlay restricts business flexibility without measurably improving outcomes
More flexible use permissions = more options for property owners. If we can't regulate against smoke shops, we should give property owners and tenants the most possible options for productive commercial uses.
Appendix: Methodology
- Data: Public City of Philadelphia open data — business licenses, ZBA appeals, OPA parcels, L&I permits
- Period: January 2007 – February 2026 (19 years). Pre-2007 licenses excluded (no matchable appeals data).
- Geography: Intersection of CTR Old City Residential Area overlay polygon and OCD BID polygon (where both definitions agree it's Old City)
- Appeal scope: ZBA only. LIRB and BBS (L&I code-enforcement bodies) excluded.
- Approval rate: approved ÷ (approved + denied). Withdrawn and dismissed reported separately, not in denominator. Same rule across all charts.
- Timelines: ZBA processing time only — days from appeal filing to hearing, across all 162 appeals in scope. Permit application, permit review, and construction are not counted in this metric (they happen after the hearing).
- Use categorization: Single canonical classifier of appeal grounds into primary use type. Cross-cutting variance flags (roof deck, height, parking, signage, etc.) tracked separately.
- RCO data: Old City District provided 76-record voting log, 2012–2026. 74 of 76 matched to a ZBA appeal.
Supplementary Excel workbook with record-level data available for review.