Mayor pulls Theater District air rights plan after disputes with City Council over floor price

Posted On Tue, February 28, 2017 By

Posted On Tue, February 28, 2017 By In Midtown West, Policy

The de Blasio administration pulled the plug Monday on proposed legislation that would give the city a 20 percent cut of any air rights sales in midtown Manhattan’s Theater District, according to Crain’s. The reversal followed disputes with City Council members over a key element–a floor price for the sales. The proposal had been part of a long effort to get theater owners to up the amount they contribute to a fund used for venue maintenance and support for smaller theaters. There is now speculation as to whether the move could cast a shadow on the administration’s Midtown East rezoning plan, which is a similar policy initiative.

As 6sqft previously explained, “when developers purchase air rights from theaters between West 40th and West 57th Streets from Sixth to Eighth Avenues, they pay $17.60 per square foot to the Theater Subdistrict Fund. Because so many Broadway theater buildings are landmarked, transferable development rights can usually only be used for adjacent properties, but the city created the special district in 1998 to help the theater industry thrive amid sharply rising real estate prices; within the district, air rights can be moved more freely in a larger area outside the usual ‘arms length’ restrictions.” In turn, the fund uses the money to support emerging companies, subsidize smaller productions, and help make expensive tickets more accessible.

The de Blasio administration felt theater owners weren’t paying enough to the fund, and proposed that a 20 percent slice of any air rights sales would replace the old flat fee, with a minimum price per square foot of $346. The proposal included a floor price to deter sellers from claiming a low value to reduce the amount of their fund payment, then adding the remaining value in another transaction.

The city council opposed the floor price, as did the Real Estate Board of New York (REBNY), on the grounds that it could falsely inflate prices and keep theaters from being able to sell during economic downturns. The council reportedly removed the floor price from the proposal, replacing it with a provision for the Department of Finance to conduct audits instead. This alteration led the Department of City Planning to pull its application just before a vote on it by the council subcommittee. A council spokeswoman said in a later statement, “The City Council shares the administration’s goal of fully protecting the public,” and feels that the de Blasio administration is “depriving nonprofit theater groups of additional resources to support their mission” by scrapping the proposal.

A similar air rights opportunity has been proposed by the city in its Midtown East rezoning plan; it’s not known whether Theater District proposal’s demise will hamper that initiative; REBNY and a number of area churches already oppose the addition of a floor price there.

[Via Crain’s]

RELATED:

Tags : , , , ,

Neighborhoods : Midtown West

MOST RECENT ARTICLES

  • Park Slope co-op with custom bookshelves reaching 18 feet asks $1.65M

    Park Slope co-op with custom bookshelves reaching 18 feet asks $1.65M

    A renovation for this Park Slope co-op left it in lovely condition. The lofty floorplan–which boasts 18-foot ceilings–was taken full ...
  • Weekly highlights: Top picks from the 6sqft staff

    Weekly highlights: Top picks from the 6sqft staff

    Swale floating park returns this spring with a new look Kushner Cos. vision for 666 Fifth Avenue has Zaha Hadid ...
  • Stackable furniture line from Debra Folz Design makes storage stylish

    Stackable furniture line from Debra Folz Design makes storage stylish

    There are all types of stackable furniture out there, and while many of them function perfectly well, they’re not always ...
  • This $4M Riverdale mansion, known as the Esmeralda, was built in 1899 and still impresses today

    This $4M Riverdale mansion, known as the Esmeralda, was built in 1899 and still impresses today

    The historic mansions of Riverdale never fail to impress, and this gem is no exception. Built in 1899 and known ...
  • Renzo Piano’s 565 Broome Street on the rise; the world of Hamilton at Green-Wood Cemetery

    Renzo Piano’s 565 Broome Street on the rise; the world of Hamilton at Green-Wood Cemetery

    After launching sales in September, Renzo Piano’s two-towered 565 Broome Street is finally on the rise. [CityRealty] The quest to ...
  • FREE RENT: This week’s roundup of NYC’s rental concessions

    FREE RENT: This week’s roundup of NYC’s rental concessions

    Upper West Side Beaux Arts Beauty ‘The Willard’ Offering Two Months Free, 1-Bedrooms From $2,996/Month [link] Live at LIC’s Hayden: ...
  • 432 Park would have generated $30M for affordable housing with de Blasio’s mansion tax

    432 Park would have generated $30M for affordable housing with de Blasio’s mansion tax

    Outside of 432 Park Avenue, Mayor de Blasio held a press conference on Thursday to discuss his mansion tax. The ...
  • City reveals garment district rezoning plans, citing incentives to move makers to Sunset Park

    City reveals garment district rezoning plans, citing incentives to move makers to Sunset Park

    At a Manhattan community board meeting Wednesday evening, city officials told garment industry representatives of plans to remove Midtown‘s manufacturing ...
  • The Urban Lens: Behind the counter and into the caves at Murray’s Cheese

    The Urban Lens: Behind the counter and into the caves at Murray’s Cheese

    6sqft’s ongoing series The Urban Lens invites photographers to share work exploring a theme or a place within New York City. ...
  • New renderings revealed for NYCHA’s raised earth Red Hook Houses by KPF

    New renderings revealed for NYCHA’s raised earth Red Hook Houses by KPF

    When Superstorm Sandy hit the community of Red Hook, thousands of residents were left without power and basic necessities for ...
  • Judge once again stops work at Pier 55 over environmental concerns

    Judge once again stops work at Pier 55 over environmental concerns

    If you thought the roller coaster that is Pier 55 was over since construction began in November, you may not want ...
  • Amtrak will provide additional weekend service between Boston and New York

    Amtrak will provide additional weekend service between Boston and New York

    Amtrak will soon offer more weekend service options between Boston and New York, the railroad company announced Thursday. Those who ...

SIGN UP FOR OUR NEWSLETTERS

Thank you, your sign-up request was successful!
This email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.