Well first thing I'd do if I was you would be get out a questioneer and circulate it among all residents, particularly home and property owners in the area, asking them how the visualise the area, what they would like to see happening to it in the future, what areas they hope to see preserved, what kind of industry (small industry/manufacturing/tourism) they wish to attract to the town.
When you have an idea of the hopes and aspirations of the populice it may be easier to decide on what way to approach the next stages of re-zoning etc.
I think you're right - public input is essential. Having attended a few public meetings in the past, I know we're in for some contentious times!