Jim Nix, a local architect working as an agent for Carrie Altemus, came to our last Neighborhood planning team to discuss his plans for 1607 East Cesar Chavez (The house just east of the Waterstreet Lofts.

They are planning a mixed use building with retail on the first floor, and a single apartment upstairs. He would like to expand the second floor apartment along the original footprint of the house, but because the house next door is a residence in a commercial zone, he needs city approval to build anything closer than 15 feet and the house is just 9 feet 4 inches from the east property line.

The lot is now zoned Commercial Services and he could easily convert the ground floor to retail without needing approval. In fact, he says they will convert the lower floor to a retail use regardless. They will probably build the apartment if at all practical.
The team was concerned that a retail store next to a residence might not be compatible and is currently working with Mr. Nix to see if we can develop a list of appropriate uses that might let us support a variance. Allowed uses for a commercial zone can be found here