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The Daily Dirt: City Council keeps authority over landmarked air rights

City of Yes requiring special permit rules for some actions

City Council Restores Special Permit Rules for Air Right Transfers
(Illustration by The Real Deal; Getty)

It turns out the City Council is not keen on giving up its power over land use actions. 

Not much was surprising about how the City Council amended the City of Yes for Housing Opportunity text, perhaps least of all that the body did not want to relinquish its authority over certain actions through the city’s land use review process. 

The text amendment expands the Landmark Transferable Development Rights program to historic districts and low-density residential, meaning landmarks in these areas can sell their unused air rights to nearby properties. It also allows these rights to be transferred to sites on the same block as the landmarked property or across the street from that block, rather than just those adjacent to the landmark. 

The original version also set out to allow these transfers through a City Planning certification.

Last week, the City Council changed this to require a special permit, which must go through the Uniform Land Use Review Procedure, in cases where the air right’s transfer would increase the height of the project on the receiving site by more than 25 percent. 

The Council also restored special permit requirements for certain bulk modifications and for developments involving a railroad right of way on lots larger than 1.5 acres. 

City Planning indicated that these changes were aimed at encouraging more of these deals because only a handful have actually been completed, and the revenue can help landmarked buildings with much-needed repairs. The geographical expansion and added flexibility in where these rights can be transferred should help, though the months’ long land use review process may serve as a deterrent for some. 

Ahead of last week’s vote, Council member Kevin Riley said freeing all of these transfers from special permit requirements would “weaken the community’s input” on projects that could rise significantly higher than its neighbors. 

Maintaining special permit requirements for some of these actions means local City Council members will still have the final say over these projects.  

What we’re thinking about: What do you think about Trump’s pick of Scott Turner to run the Department of Housing and Urban Development? Send a note to kathryn@therealdeal.com

A thing we’ve learned: Retired boxer Floyd Mayweather Jr. has launched his own real estate firm, dubbed Vada Properties, Suzannah Cavanaugh reports. The company will be based at Trump Tower on Fifth Avenue. 

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Elsewhere in New York…

— Gov. Kathy Hochul on Friday signed a bill into law that will give the city’s Department of Design and Construction the ability to use alternative construction delivery, including “progressive design build” and “construction manager build.” The methods are expected to help shave time and costs off agency projects by, respectively, consolidating the bidding process and getting construction managers involved earlier.

— The city hopes that adding 500 new loading zones will cut down on double parking, a practice that is inconvenient at best and dangerous at its worst, Gothamist reports. “Nobody likes double-parking and blocked bike and bus lanes!” Department of Transportation Commissioner Ydanis Rodriguez said in a statement. “These new loading zones are helping to alleviate congestion and improve street safety and we encourage New Yorkers to report problem areas.”

— ICYMI, adultery is no longer illegal in New York. The governor signed into law a bill that repeals a 1907 regulation that, while rarely enforced, was still on the books and made the act a Class B misdemeanor, NPR reports

Closing Time

Residential: The priciest residential sale Monday was $13.3 million for a 4,492-square-foot condominium unit at 111 West 57th Street in the Plaza District. Kane Manera and Janet Wang of the Corcoran Group had the listing.

Commercial: The largest commercial sale of the day was $197 million for 72-76 Greene Street, 61-63 Crosby Street413-415 West Broadway and 40 Mercer Street. Blackstone purchased the portfolio of four properties with roughly 111,000-square-feet from ASB Real Estate Investments.

New to the Market: The highest price for a residential property hitting the market was $9.3 million for a 3,088-square-foot condominium unit at 20 East End Avenue in Yorkville. Deborah Kern of The Corcoran Group has the listing. 

Breaking Ground: The largest new building application filed was for a 133,881-square-foot, nine-story, 123-unit mixed use project at 52 West 116th Street in South Harlem. Jack Esterson of Think! Architecture + Design filed the permit on behalf of Procida Construction Corp.

— Matthew Elo

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