hmm... i think it'd be a great idea to allow residential developments. something along the lines of
downtown beirut, just with different architectural styles of course. and no buildings taller than 5 or 6 floors.
it'd be an awesome place for outdoors coffee shops and restaurants. storefronts would look amazing. and keeping the buildings close to each other instead of one large building will give it more on an european feel to it.
of course in reality people will demand parking (maybe underground near the ferry terminal), they'll want late night ferry runs, and i imagine there would be opposition from many people.