Critical Real Estate Alert: Mayor’s Plan Would Require Special Permits for All Hotels in All Manufacturing Zones Citywide

It was reported today that Mayor de Blasio is proposing a significant expansion to an earlier announced plan to protect the City’s industrial businesses. This new proposal would require all hotels in all manufacturing zones City-wide to obtain discretionary special permits. In November of last year, the Mayor, with the support of key members of the City Council called for new zoning restrictions which focused on protecting the City’s 21 Industrial Business Zones (IBZs), including a ban on rezoning IBZ land for residential use and the elimination of as-of-right development of hotels in these areas.

The Mayor’s new plan now calls for requiring all hotels in all manufacturing zoning districts throughout the City, where such hotels are now permitted as-of-right, to obtain a special permit under the City’s Uniform Land Use Review Procedure (“ULURP”). ULURP, which requires approval from both the City Planning Commission and the City Council, is a lengthy, complex and uncertain process, which can easily add up to two years to the development process.

Creation of this hotel special permit will require an amendment to the New York City Zoning Resolution. It was reported that the anticipated timeline for creating the special permit is one year; though it is possible it could be accomplished in less time. The creation of this City-wide special permit is heavily supported by the New York City Hotel and Motel Trades Council, and it is reported that key City Council Members have signed to the expanded plan.

Hotel projects already underway and those planned on affected sites are able to vest the right to be built without a special permit if they secure a building permit based on a complete set of building plans and fully construct their foundations prior to the enactment of the amendment.

We are actively following this proposal and will keep you updated. Should you have any questions generally, or about a specific project site, please contact:

Mitchell A. Korbey at +1 212 592 1483 or mkorbey@herrick.com