The Real Deal New York

Curtain falls on de Blasio’s theater district air-rights plan

The administration was pushing a plan to take a bigger cut of profits from air-rights sales
February 28, 2017 07:00AM

The Theater District (Credit: Randy Lemoine via Flickr)

The de Blasio administration scrapped a plan to make theater owners hand over a bigger slice of the profits from air-rights sales.

Broadway theater owners pay $17.60 per square foot into the Theater Subdistrict Fund when they sell off their air rights.
The administration argued that was too little, and for months had been pushing a plan to make them pay 20 percent of any deal into the fund, Crain’s reported. It also wanted to introduce a minimum price per square foot of $346. However, on Monday, the Department of City Planning pulled the application, just before a City Council subcommittee was set to vote on it, because of a disagreement with legislators.

The Council opposed the floor price, and the Real Estate Board of New York had argued it would have a negative impact on theater owners in market downturns.

“The City Council shares the administration’s goal of fully protecting the public,” a Council spokesperson said, according to the publication, in a statement that accused the de Blasio administration of “depriving nonprofit theater groups of additional resources to support their mission.”

The city is also considering using a floor price in its rezoning of Midtown East,  which some argue may adversely affect nonprofits, churches and synagogues. [Crain’s]Miriam Hall