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The Daily Dirt: Developers on edge, waiting on the City of Yes 

"We are having to design our buildings both ways”

City of Yes Heads to City Planning Vote
Magnusson Architecture and Planning's Magnus Magnusson and Department of City Planning's Dan Garodnick with Melrose Commons (Magnusson Architecture and Planning, Dan Garodnick, Google Maps, Getty)

As the City of Yes moves closer to a City Council vote, some are weighing the possibilities for their projects. 

Magnusson Architecture and Planning is working on the final project of the originally planned sites that make up Melrose Commons, the redevelopment of 33 blocks in the South Bronx.

The site, dubbed Cornerstone B2, could have more residential space if Universal Affordability Preference is included in the City of Yes for Housing Opportunity text amendment. That policy provides a 20 percent increase in density, so long as that extra space is dedicated to permanently affordable housing. With UAP, along with a separate request to lift a height cap, the project could have 200 apartments instead of 94.   

“We are having to design our buildings both ways,” the firm’s founder, Magnus Magnusson, told me in a recent interview. “It is a strange period, which could actually be delaying housing production.”

That holding pattern should be temporary, given that the proposal will head to a final vote before the end of the year. 

Herrick attorney Mitch Korbey agreed that developers and owners are thinking about how aspects of the text amendment could change their projects, including a proposal that would allow the city to map districts to permit residential buildings that are 15 or 18 times the size of their lot.

Changes that would allow more office-to-residential conversions and the elimination of parking mandates could also make a big difference to projects. Even more technical changes, such as the reduction in rear and side yard requirements, could go a long way, Korbey said.  

The City Planning Commission is expected to vote on the text amendment Sept. 25. The proposal then heads to the City Council, which is where things will get interesting: Will the Council preserve parking mandates in some areas of the city? Will it water down UAP or the accessory dwelling unit proposal? 

In the meantime, Magnusson believes Melrose Commons could serve as a template for comprehensive and sustainable development. It has been 30 years since the master plan for the project was approved, and Magnusson’s firm just released a report outlining key lessons learned from the development. 

What we’re thinking about: When will a hearing be held on the hotel licensing bill? Send a note to kathryn@therealdeal.com

A thing we’ve learned: The 127 Sale, touted as the world’s largest yard sale, spans six states, according to the New Yorker. It was started in 1987.

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Elsewhere in New York…

— Department of City Planning Director Dan Garodnick on Friday tapped Lin Zeng and Kathi Ko to serve, respectively, as director and deputy director of the agency’s Queens office. Zeng most recently worked for the School Construction Authority, and Ko has been with the Queens office since 2014. 

— Sen. Jessica Ramos announced that she’s running for mayor next year, City & State reports. At least two of her colleagues in the legislature, Assembly member Emily Gallagher and Sen. Julia Salazar, took to social media site X on Friday to call on Mayor Eric Adams to step down amid various federal investigations. 

—  Council member Lincoln Restler has introduced a bill that would scrap the mayor’s rule that elected officials must fill out a form before meeting with members of his administration, Gothamist reports. “The role of city agencies is to work with all elected officials,” Restler told the website. “That is what the [city] charter directs our parks [and] sanitation [departments] and [the] NYPD to do — and the mayor has tried to insert himself into the middle of this process.”

Closing Time

Residential: The priciest residential sale Friday was $43.5 million for a 7,587-square-foot condominium at 217 West 57th Street in Midtown. Timothy Hsu and Janice Chang of Douglas Elliman had the listing. 

Commercial: The largest commercial sale of the day was $20 million for a portfolio of seven apartment buildings with a combined 57 units.The properties are located at 437-450 61st Street in Sunset Park.

New to the Market: The highest price for a residential property hitting the market was $20 million for a 5,225-square-foot townhouse at 19 East 92nd Street in Carnegie Hill. Craig George of Sotheby’s International Realty has the listing.

Breaking Ground: The largest new building application filed was 140,233-square-feet for a proposed 18-story mixed-use project at 200 West 88th Street on the Upper West Side. Isaac & Stern Architects filed the permit. — Matthew Elo

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