Chelsea Hotel reno can resume after housing department drops fight

Recently recovered document shows hotel is exempt from needing certificate of no harassment

New York /
Jan.January 11, 2021 11:30 AM
Chelsea Hotel with Ira Drukier and Richard Born (Getty)

Chelsea Hotel with Ira Drukier and Richard Born (Getty)

The city’s Department of Housing Preservation and Development has dropped its fight against the owner of Chelsea Hotel, allowing a long-planned renovation of the legendary hotel to move forward.

The housing agency reached the decision because of a 1997 document recently found in city archives, The City reported.

The document was brought to the agency’s attention by a consultant working for BD Hotels, the firm headed by Richard Born and Ira Drukier that bought a stake in the property in 2016. The archived document shows that the Chelsea Hotel’s previous owner had obtained an exemption to the standard requirement for a “certificate of no harassment,” based on the building’s status as a “luxury hotel.”

BD Hotels and the housing department were locked in a battle over whether planned upgrades to the building should be allowed to proceed. The agency in March asserted that the renovation work should not continue because a “certificate of no harassment” couldn’t be issued to the owner, as the property’s ongoing renovation has created unsafe conditions, amounting to tenant harassment. But the 1997 document — which the city only became aware of at the end of 2020 — allows the developers to get around that. A lawyer representing the hotel’s remaining residents called for an investigation into the circumstances surrounding the recovery of the notice.

In the meantime, with HPD’s case closed, construction can once again resume.

In May, a judge dismissed a lawsuit against the hotel owner by five tenants who argued their new landlord never got a proper certificate of occupancy. [The City] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
    Former SL Green exec Isaac Zion joins Acram Group
    Former SL Green exec Isaac Zion joins Acram Group
    (Photo illustration by The Real Deal)
    Inside mall owner Namdar’s rapid growth story
    Inside mall owner Namdar’s rapid growth story
    15 Park Row (Google Maps)
    J&R Music founders sell Park Row apartment tower for $140M
    J&R Music founders sell Park Row apartment tower for $140M
    Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
    Brooks Brothers’ Madison Ave store could give way to Midtown East tower
    Brooks Brothers’ Madison Ave store could give way to Midtown East tower
    Gov. Andrew Cuomo (Getty)
    Industry reacts to Cuomo’s proposed commercial eviction ban
    Industry reacts to Cuomo’s proposed commercial eviction ban
    Merchants Hospitality Inks Club Deal at Cachet Hotel (Google Maps, Playboy Club)
    Nightlife veteran John Blair inks deal for Hell’s Kitchen club
    Nightlife veteran John Blair inks deal for Hell’s Kitchen club
    Financial disclosures show extent of Trump Org losses
    Financial disclosures show extent of Trump Org losses
    Financial disclosures show extent of Trump Org losses
    Developers pitch New York City casino
    Developers pitch New York City casino
    Developers pitch New York City casino
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...