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
    Napa Valley hot-air-balloon business lists for $12M
    Napa Valley hot-air-balloon business lists for $12M
    Napa Valley hot-air-balloon business lists for $12M
    A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
    Nebraska lawmakers mull digging $1B recreation lake
    Nebraska lawmakers mull digging $1B recreation lake
    Maefield Development's Mark Siffin and 20 Times Square (aka 701 Seventh Avenue) (Getty, Edition Hotels)
    Massive loan on Maefield’s 20 Times Square in trouble
    Massive loan on Maefield’s 20 Times Square in trouble
    From left: 608 Fifth Avenue, 22 North Loop Road, 38 West 36th Street (608 Fifth, Weiss/Manfredi, Morphosis, and Handel Architects, Apartments, Getty)
    Top 10 Manhattan loans: Big lending enters deep freeze
    Top 10 Manhattan loans: Big lending enters deep freeze
    Sonesta Hotels’ John Murray and The Shelburne Hotel (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Affinia, Sonesta)
    TRD Pro: Biggest hotel sales of the past year
    TRD Pro: Biggest hotel sales of the past year
    Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
    Soloviev bets long-dormant Midtown East site in casino sweepstakes
    Soloviev bets long-dormant Midtown East site in casino sweepstakes
    CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
    Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
    Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
    PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
    Wall Street is bidding up housing stocks again
    Wall Street is bidding up housing stocks again
    arrow_forward_ios

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

    Loading...