Zoning run amuck

Gallatin Pike is one of the main commercial corridors in Nashville.  It is home to pay day lenders, pawn shops, and used tire stores.  In July 2007, NIMBY residents rezoned it for coffee shops, art cafes, and book stores.  Here is my take on the likely effect of the zoning.

• The Gallatin SP zoning creates mismatch between (zoned) supply and demand which causes reduced sales, investment, and tax revenue
  

• The alternate view, that SP zoning would create new demographics (higher density) to support the zoned uses seems unlikely because the compliance trigger reduces incentive of existing firms to renovate or rebuild