Usually means: Reduce allowable density in zoning.
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We found 9 dictionaries that define the word downzone:

General (8 matching dictionaries)
  1. downzone: Merriam-Webster
  2. downzone: Oxford Learner's Dictionaries
  3. downzone: American Heritage Dictionary of the English Language
  4. downzone: Collins English Dictionary
  5. downzone: Wiktionary
  6. downzone: Infoplease Dictionary
  7. downzone: Dictionary.com
  8. downzone: TheFreeDictionary.com

Business (1 matching dictionary)
  1. downzone: Financial dictionary

Definitions from Wiktionary (downzone)

verb:  (US, politics) To change an area or property to a less restrictive zoning

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