The Real Deal New York

Lower East Side residents: Extell project “economic segregation”

Development plans call for a condo tower to rise next to an affordable housing building
June 19, 2014 03:40PM

Extell Development’s Lower East Side project has come under fire for promoting what some residents call “economic segregation.”

Neighbors decried Extell’s decision to split affordable housing and market-rate condos into separate buildings that will stand side by side during a Community Board 3 meeting last night, Curbed reported. Under the plan, a 13-story building at 229 Cherry Street will accommodate 205 below-market units, while a 68-story condo tower will rise at 250 South Street.

Extell president Gary Barnett said that plan is the company’s only option because it was impossible to secure financing for a mixed tower.

Residents also raised concerns about the loss of a Pathmark store that formerly occupied the site and the possibility it would be replaced by an expensive grocer. Barnett said the company had not approached any supermarket operators and listened to the attendees suggestions for a replacement. [Curbed]Tom DiChristopher

  • irock

    poor door may not be PC but it is economical because it allows you to build the affordable segment to lesser finishes and using inexpensive construction methods not to mention non union labor.

  • CommonSense

    Oh, I’m sorry. Is he offending all of the entitled people who get to live in an artificially cheap apartment while hard-working people get to pay market rents elsewhere? What a jerk. Maybe all of the outraged, “concerned” citizens can pool their money, raise some funds, take some risk, and build a building. Otherwise, they can stop making up words like “economic segregation”. We can lump this useless, meaningless phrase together with other nebulous terms like “social justice” and “fairness”.

  • funemployed

    People fight for below market rate rents. Developer builds them (of course because of incentives in zoning) – now you complain that they are not in the same building? They are still building 20+% of their project as below-market units, increasing the supply on the market. Why do you care if its a separate building? It’s not to say the wealthier want nothing to do w/ middle income – but if they are paying high rents they want nicer finishes (as irock mentioned in his post)