The Real Deal New York

City may call for an end to as-of-right hotels in light-manufacturing zones

Industry insider predicts special approvals will be needed
March 20, 2015 08:35AM

Mayor Bill de Blasio has yet to come out with his industrial policy agenda, leaving the city in suspense. But one industry insider predicts that the outcome will be an end to as-of-right hotel construction in light-manufacturing zones, along with a ban on new hotels in industrial business zones.

The described private-sector insider told Crain’s that, effectively, the policy change would require hotel developers to get some sort of waiver or special approval in order to construct hotels in light-manufacturing areas.

This would appease manufacturers, who are discouraged by the proliferation of hotels in such areas driving up land prices and encouraging industrial land-owners to sell. The Hotel Trades Council would also likely support the policy, as non-union hotels have become more and more common in manufacturing areas like Williamsburg and Long Island City.

Finally, the City Council would benefit, as it would increase their ability to demand concessions from hotel projects.

City Council Speaker Melissa Mark-Viverito has been particularly vocal about wanting to preserve industrial zones for manufacturing purposes, while the owners of Industry City recently requested a zoning change so that they can build a hotel on the site. [Crain’s] — Tess Hofmann


  • Lordyuyu

    i am not convinced that subsidizing/protecting manufacturing in the center of one of the most expensive cities in the US is necessary. manufacturing tends to consume a lot of space and might be better suited to areas in the outskirts of the city with lower property prices. so i hope we do get more manufacturing in NY – but not at the expense of other development

  • Convert M1 to C6

    Dumb Dumb Dumb… oh did I mention… Dumb

  • bill

    This is just another way for DeBlasio to cater to the unions…give them leverage to hijack hotel projects where they are perfectly legal otherwise. God forbid someone develop something without doling out protection money to the new mafia, aka our politicians and their union pals. And lets not forget what killed manufacturing here in the first place…massive oversight, uncompetitive costs, and prohibitively expensive union benefits. This is why the jobs went away to Kentucky, Tennessee, etc. Not the hotel industry. Just silly. If you want manufacturing to stay, or come back, how about giving more incentives to those who create manufacturing jobs, instead of letting them go without a fight to other states!

    • comment flagged

      apparel production moved south because of costs, yes, but the biggest cost savings is that you could pay someone in North Carolina half what you pay the same person to do the same thing in Manhattan and Brooklyn, regardless if they are union member or not. The biggest cost savings for corporations moving their head office to Dallas from New York is also labor, you can pay an executive $150,000 there when you’d have to pay them $300,000 to do the same thing with the same experience in Manhattan.

      • Paula A. R. DeAngelis, PhD


        New York City is the WORST venue in the entire USA to manufacture because it is run by LIBERAL LEFTIST DEMOCRATS!!!

        • comment flagged

          Wages and employee turnover are also high because of the high cost of living here. It’s much cheaper to building things where you can pay people $5/hour or less. That’s not New York City.

  • comment flagged

    The Cain’s article this is based off of is poorly sourced “one private-sector insider predicts… there might be…”. Why not try to get an insider who actually has a say in this to comment?

    If this actually happens, which it probably wont, this is going to kill a lot of deals people are working on with the assumption that hotels will be allowed in M-zones. There’s going to be a lot of pissed off developers, property owners, brokers, and lenders out there.

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