The Real Deal New York

Gary Barnett: “Poor door” makes financial sense

Extell chief defends 40 Riverside entrances, says condo income subsidizes affordable units

August 26, 2014 06:15PM

40 Riverside Drive and Extell's Gary Barnett

40 Riverside Drive and Extell’s Gary Barnett

Extell Development CEO Gary Barnett defended the “poor door” planned for his 33-story building at 40 Riverside Boulevard, arguing that it would have made no financial sense to incorporate affordable rental units into the condominium tower without it.

Developers told the New York Times that a condo-and-rental building with separate entrances allows them to reserve the best location and amenities for condos seeking a high price. The income from those condos subsidizes the construction of the affordable-housing component, developers said.

Barnett equated combining entrances at the property to “giving away” the apartments with the highest value.

Inclusionary zoning regulations — which gives developers bonuses for building affordable units — have long allowed for those affordable units to be in a separate building. But in 2009, the regulations changed to allow for the separation to be done on the same site. Therefore, Manhattan Borough President Gale Brewer has said, Extell’s separate entrance for low-income residents is in line with existing zoning law. [NYT]Mark Maurer

  • hellooo

    preach, gb. preach

  • RiversideBlvd

    I’ve read a number of these posts and I’m not so sure it’s the “poor people” that are complaining. It’s the self-righteous crowd who are ranting and whining. In fact most reasonable people would be thrilled at living in that location paying less than $1,000 month for an extremely nice apartment. I imagine they would also be fine with not having access to the pool/gym that the folks with the mortgage and maintenance are paying for.

  • David Brown

    You obviously don’t understand the concept of pass through. Yes the developer receives “millions” in tax breaks but that is passed through to the affordable tenants in the form of lower rents. In fact the millions received in tax breaks usually doesn’t cover the subsidies and the market rate tenants subsidize the affordable tenants as well.

  • ralphpetrillo

    You sound so sensitive and your hero are billionaires. So funny what happens in life when deals are made to build for the middle income and low income with tax breaks, and then sidelines want to defend the super wealthy. Very funny. How much of a tax break did he get to build these units? Either way you will always defend and side with the wealthy.

  • ralphpetrillo

    Have not heard many developers complain about building 80-20 for they got to use tax benefits from government bonds. Do some research. He is losing respect on this issue, and looks petty for no real reason. Almost child like or comical.