The downtown strategic plan, drafted by Red Bank-based Heyer Gruel & Associates, reviews the existing zoning downtown, most of which is located within the Central Business District (CBD) Redevelopment Area, so most of the zoning is controlled by that redevelopment plan.

Existing Zoning

Other zones included downtown are:

• Arts District Redevelopment Area
• B-4 Service Business Zone
• I-L Light Industrial Zone
• O Open Space Zone
• R-2 Medium-Density Single-Family Zone
• R-3 Low-Rise Multi-Family Zone

A portion of downtown located along Elizabeth Avenue is within the “Parts of Blocks 226, 227, and Block 228 ” Redevelopment Plan Overlay Area. That Redevelopment Plan governed the development of Meridia Brownstones, a four-building, 487-unit complex at the former site of Wheatena factory.

The CBD and Arts District Redevelopment Plans supersede the underlying zoning. Within the CBD Redevelopment Plan, there are 6 Subdistricts that vary in terms of maximum units per acre, square footage, and maximum building height:

• CBD-1 (West Milton to Poplar) – No maximum
• CBD-2 (River Place and Station Place) – 75 units/acre, 100/acre for properties 20,000 square feet or more
• CBD-3 (Hamilton, Bridge and Pierce streets) – 50 units/acre, 75 for 20,000 square feet or more
• R-2 Medium Density Single Family
• R-4 High Rise Multi-family
• MX Mixed Use District (City Hall Plaza) –  143 units/acre, maximum building height of 5 stories

The R-2, R-4, and MX zone subdistricts are governed by the existing standards for these zones within the city’s ordinance. The strategic plan describes the CBD-1 zone as permitting the most intense development within the area, with permitted intensity declining through CBD-2 and CBD-3, respectively.

Existing Planning Documents

• 2019 Master Plan Reexamination Report: The city adopted a Master Plan Reexamination Report in 2019. Most of the goals and objectives in the 2010 Master Plan Reexamination Report remained valid, according to the report, including to “encourage the revitalization of the downtown area of the city through partnerships between the public and private sectors.”
• Central Business District Redevelopment Plan: Most of the recent development downtown was permitted under the CBD Redevelopment Plan, however, the Redevelopment Plan has not been updated since 2013.
• Arts District Redevelopment Plan: Adopted in 2020, it provides zoning to encourage uses related to the Arts and to contribute to placemaking within the Area to define it as a creative location through various place making initiatives.
• Downtown Rahway Parking Study: Parking has been an ongoing concern, particularly as new projects are developed, according to the strategic plan. In 2019 a parking study was completed to evaluate the existing and projected parking supply downtown.

The majority of buildings downtown are between 1 and 4 stories tall. Several newer residential and mixed-use developments, including The Mint and Meridia Lafayette, are 5 stories. Carriage City Plaza, Rahway Plaza Apartments, and Golden Age Towers are the only developments that exceed 5 stories, measuring 16, 12, and 9 stories, respectively.

The Rahway River is a defining physical feature of downtown and a “significant portion” of downtown is located in the floodway.  The downtown strategic plan identified 130 parcels entirely or partially within the 100-year floodplain and 63 parcels entirely or partially within the 500-year floodplain but not in the 100-year floodplain.