The Daily Dirt: UES rezoning marks shift in housing vibe 

A compromise on the Upper East Side shows how conversations around housing are changing. It also demonstrates the challenges ahead.

Friedland Properties and the Chapman Group and Council member Julie Menin reached an agreement last week for a residential project planned for 207-245 East 94th Street.

The original plan called for a 452-unit building, in which 113 apartments would be affordable (15 percent for tenants making an average of 60 percent of the area median income, and 10 percent at 40 percent AMI). The project would have risen 484 feet.

Now, under the announced deal: 

— The building will rise 414 feet, a haircut of 70 feet

— It will include 487 apartments, 146 of them affordable (30 percent)

— The developers will spend $150,000 to improve James Cagney Plaza.

It is a big deal that the development is moving forward. This will be the Upper East Side’s first (!) Mandatory Inclusionary Housing project — MIH passed in 2016 — and it’s on a mid-block site, no less.

A caveat: The developer has indicated that the project can’t move forward without a new 421a, according to Patch. As part of the deal, if Albany restores the property tax break, the developers agreed to negotiate with the New York City District Council of Carpenters to have its members work on the project.

Those are a lot of ifs. Not to mention, in order to get to a “yes,” the developer had to shave 70 feet off the project and add 33 affordable rentals. To make the math work, the number of studio apartments was increased, while the number of one-, two- and three-bedroom units were decreased.

The AMIs were also increased, meaning the tenants will be higher earners than under the original plan.

I asked Menin if the rezoning should be viewed through the lens of progress tempered by the fact that the developers still needed to make a number of concessions to secure approval.

Menin said this agreement achieved “two wins that are historically at odds with each other,”  decreasing height while increasing the number of affordable units. Her predecessor, Ben Kallos, repeatedly clashed with developers looking to build in his district. She believes the deal can serve as a paradigm for future projects.

“At the end of the day, we need to build affordable housing,” she said. “We can’t just turn our backs on that. It is a duty and an obligation we have to ensure that our city stays affordable, and this project is making an enormous contribution toward that.”

The project also includes parking. I asked Menin if she supports the Adams administration’s City of Yes for Housing Opportunity, which would get rid of parking requirements in new development. The proposal would also repeal the city’s Sliver Law, a policy defended by Kallos. Menin indicated that she is still reviewing it. The Council will decide its fate.

What we’re thinking about: Who will be tapped to lead the New York Apartment Association? Send a note to kathryn@therealdeal.com.

A thing we’ve learned: The Department of Housing Preservation and Development is making efforts to have Daniel Ohebshalom arrested and extradited to NYC, Suzannah Cavanaugh of TRD reports. He is believed to be in California, according to Gothamist.

Elsewhere in New York…

— The Adams administration claims proposed budget cuts would not result in dramatic cuts to City University of New York programs. But university officials say the cuts would result in “a broad range in reduction in services,” Gothamist reports.

— At least five members of Community Board 5 have resigned since Samir Lavingia was elected chair, Crain’s New York reports. He is the campaign coordinator of Open New York, the pro-housing nonprofit, which has four members on the community board and persuaded 18 others to vote for Lavingia.

— Former transit officer Lorna Beach-Mathura filed a detailed complaint against Mayor Eric Adams on Monday, alleging that in 1993 he pressured her to perform a sex act in exchange for career advice, Politico New York reports. “While we review the complaint, the mayor fully denies these outrageous allegations and the events described here; we expect full vindication in court,” the mayor’s corporation counsel, Sylvia Hinds-Radix, said in a statement. “Additionally, in 1993, Eric Adams was one of the most prominent public opponents of the racism within the NYPD, which is why the suit’s allegations that he had any sway over promotions of civilian employees is ludicrous.”

Closing Time

Residential: The priciest sale recorded Monday was $9.95 million for a 3,200-square-foot condominium unit at 553 West 30th Street in Hudson Yards. 

Commercial: The most expensive commercial closing of the day was $22.2 million for an 88,000-square-foot office building at 225 West 39th Street in the Garment District. 

New to the Market: The priciest residential property to hit the market Monday was $45 million for a 4,500-square-foot condominium unit at 1 Central Park South. Marie-Claire Gladstone and Jason Karadus of the Corcoran Group have the listing.

Breaking Ground: The largest new building filing of the day was a 79,000-square-foot, five-story residential building in Staten Island. Permits were filed by Newman Design Architects. — Matthew Elo