It’s weird to think about zoning while the city is in chaos.
Yet, while a judge was asking the Department of Justice about its move to dismiss charges against Mayor Eric Adams on Wednesday, the City Planning Commission was still hearing testimony about Related Companies’ rezoning proposal for the western railyard at Hudson Yards.
The land use review process marched on, a mere 3-minute walk from the court.
Following news of the resignations of four deputy mayors over the weekend, including his boss First Deputy Mayor Maria Torres-Springer, Chair Dan Garodnick on Tuesday began a City Planning Commission meeting by acknowledging the “unprecedented moment we are in as a city.”
“It is my expectation that the transition will be managed so that city services are maintained without any noticeable interruption,” he said. “And as it relates to our work at City Planning, that will certainly continue.”
One administration source told me Garodnick or the Economic Development Corporation’s Andrew Kimball would be good contenders to step in for Torres-Springer, at least to take over her former portfolio as deputy mayor for housing, economic development, and workforce. The New York Daily News reports that the mayor is considering attorney Randy Mastro, his former pick for the city’s corporation counsel, for the first deputy mayor job.
In a statement, Kimball said EDC’s work continues and pointed to the recent approval of a life science and pointed to the recent approval of a life science campus in Kips Bay known as SPARC.
Garodnick told his staff on Tuesday that he plans to stick around.
For real estate folks, the departure of Torres-Springer creates a lot of uncertainty around the agencies the industry interacts with on a daily basis, including the Department of City Planning and the Department of Housing Preservation and Development. Torres-Springer played a key role in the negotiations over the City of Yes for Housing Opportunity, and her absence is sure to be felt on other major rezonings (Midtown South) and other controversial site-specific rezonings where the developer is seeking buy-in from the administration.
To what extent this uncertainty, or any gaps in leadership, affect housing initiatives and individual projects will depend on a number of factors. The most pressing, of course, is whether the mayor stays in office.
What we’re thinking about: Related Companies is seeking changes to its plans for the western railyards in Hudson Yards, a rezoning that was approved in 2009. The new proposal calls for a casino, and reduces the number of residential units from up to 5,762, to just over 1,500, though with the same number of affordable units. Related says two of the buildings originally planned would have sat on sites only suitable for large, luxury condos. During the City Planning hearing on Wednesday, a Related rep indicated that the potential market value of these condo units is significantly lower than the cost of building them and said such a project is not financeable today or in the foreseeable future.
This is a complicated site, but if you are in a similar boat with your condo project or have something to say about the state of financing ground-up, residential development, send a note to kathryn@therealdeal.com.
A thing we’ve learned: The just-completed conversion of the office building at 25 Water Street into 1,320 new apartments is the first project to use the 467m office conversion tax break, according to the Department of Housing Preservation and Development. The project, developed by GFP Real Estate, Metro Loft and Rockwood Capital, has 330 apartments affordable to those earning, on average, 80 percent of the area median income.
Elsewhere in New York…
— Trump to New York: Drop dead, congestion pricing. U.S. Transportation Secretary Sean Duffy on Wednesday sent Gov. Kathy Hochul a letter notifying her that his agency has revoked federal approval for the program, Gothamist reports. The MTA quickly responded with a lawsuit.
“We are a nation of laws, not ruled by a king,” Hochul said in a statement. “We’ll see you in court.” Trump touted the move on Truth Social, posting: “CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”
— U.S. District Judge Dale Ho did not rule on a motion to dismiss corruption charges against Mayor Eric Adams, but he hinted that will soon, Politico New York reports. During a hearing on Wednesday, Ho indicated that he had “very little discretion” to interfere with the Department of Justice’s efforts to throw out the case.
Closing Time
Residential: The priciest residential sale Wednesday was for a co-op unit at 550 Park Avenue $18 million. The Lenox Hill co-op is 7,000 square feet and was listed by Douglas Elliman’s Patricia Isen, Jacqueline Kinghan, Betsy Green and Joan Swift.
Commercial: The most expensive commercial closing of the day was $42 million for 154-71 Brookville Boulevard. The Queens Holiday Inn is 60,000 square feet and six stories. New to the Market: The highest price for a residential property hitting the market was $19 million for 46 Perry Street. The West Village townhouse is 7,000 square feet and was listed by Douglas Elliman’s Elana Zinoman and Christopher Riccio. — Joseph Jungermann