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Midtown East Rezoning Will Make Some Rich People Extra Rich
By
Rebecca Fishbein
Published Aug 2, 2013
Modified Aug 2, 2013
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Municipal Arts Society
By
Rebecca Fishbein
Published Aug 2, 2013
Modified Aug 2, 2013
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It looks like the city's going full-steam ahead when it comes to getting Bloomberg's Midtown East rezoning plan approved; the administration has recently made a number of amendments to their proposal to bring new office space development to the area, and they're going to make some people very rich.
The plan, which would allow for the development of office buildings potentially taller than the Empire State building in the area surrounding Grand Central Terminal, has seen some opposition from city officials since initial plans were unveiled last summer, with council members like Dan Gorodnick, who represents the area, voicing concern that added development will increase congestion and put too much stress on public transportation. The Municipal Arts Society of New York has been particularly vocal about the rezoning's potential consequences for the city, noting that increased development could dwarf iconic landmarks like the Chrysler Building, in addition to further stressing the area's infrastructure.
But Bloomberg's people have made a number of amendments to their initial proposal, including one that would give landmarked buildings permission to sell their unused development rights to office tower developers. This would give landmarked buildings like St. Patrick's Cathedral and St. Bartholomew’s Church some much-needed added cash for improvements and upkeep; for the 21-story landmarked Lever House, however, the amendment would put the development rights profits right in the owners' pockets, bringing them an estimated $75 million.
Lever House's owners, the Korein family, also has stock in properties all over Manhattan, and critics are arguing that their financial benefit shows a major flaw in the new amendment. "This exception undermines the intention of the air rights transfers for historic properties," State Senator Brad Hoylman told the Times. "The beneficiaries in this case don’t have an obligation to invest the proceeds in the preservation of the landmark." Naturally, though, the Korein family says everyone should just deal with it. "We believe it can be worked out in a way that’s beneficial for everybody,” James Korein, the CEO of the management company that owns Lever House's land said. “The specifics are out in the future."
Another concession in the rezoning plan has garnered support from some city officials: Manhattan Borough President Scott Stringer announced this week that he'll back the plan, after an amendment promising upfront public transit funds for the area was brought to the table. Bloomberg announced the amendment in a Daily News op-ed on Wednesday, pledging to advance funds for improvements to the 4, 5 and 6 trains in addition to open space improvements. "The administration's current commitment to fund Grand Central improvements will not only accommodate the 16,000 new jobs to be created by this proposal, but will benefit all New Yorkers who rely on East Side transit," Stringer said in a statement this week. "In order to make east midtown's plan a success, greater density in east midtown should follow significant investments in its infrastructure."
ut Bloomberg's not placating everyone; Gorodnick gave his own statement this week noting that while many of the changes to the plan were positive, problems with the proposal remain. "Most significantly, the public needs clear and certain assurances on infrastructure and pedestrian flow improvements in an area that desperately needs them," Gorodnick said. "These issues exist with or without any rezoning, and we need to address these problems today."
And MAS, which has opposed the rezoning essentially since the proposal's inception, will be testifying against the plan in front of the Department of City Planning on Wednesday. "MAS will testify on August 7 regarding many of the persistent issues we’ve laid out in the past, including the need for area infrastructure and public realm improvements to be in place before new development occurs, and the need to ensure that important historic resources are protected," the organization announced in an e-mail to supporters this week. We've reached out to MAS for an additional statement, and will update when we hear back; for now, though, you might want to get on Instagramming that unobstructed view of the Chrysler Building while you still can.
Tagged
bloomberg
lever house
midtown
midtown east
rezoning
scott stringer
Rebecca Fishbein
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