On June 7, 2017, the NYC City Planning Commission approved the establishment of the East Midtown Subdistrict, which extends from 39th Street to 57th Street between Fifth Avenue and the east side of Third Avenue.  The purpose and goal of the East Midtown Subdistrict is to maintain and reinforce East Midtown as one of the premiere business districts in the world, by permitting on an as-of-right basis an increase in floor area by providing transit improvements and allowing the transfer of development rights from landmark sites to receiving sites within the Subdistrict.  The proposal to establish the Subdistrict has generated much interest from the real estate community, transit advocates, and owners of landmark buildings.

CPC enthusiastically endorsed the proposal which it modified as follows:

  1. East Midtown Subdistrict regulations shall apply to zoning lots with 50 percent or more of their lot area within the East Midtown Subdistrict.
  2. CPC clarified the proposed height and setback regulations, allowing for greater flexibility in the design of as-of-right commercial buildings at higher densities.
  3. CPC modified the composition of the group that will oversee the distribution of funds generated by district floor area bonuses (and paid by developers), by requiring that a representative of a citywide civic organization and a Mayoral appointee be included in the group.
  4. The proposed regulations will prohibit transient hotel use as-of-right and require new hotels to obtain a special permit. The CPC clarified that hotels existing before enactment of the Subdistrict are considered conforming uses and are permitted to maintain.

The City Council Committee on Zoning and Franchises has scheduled a public hearing on June 20, 2017 to discuss the proposal. It is expected that there will be additional discussions after June 20th; however, City Council's final vote must occur on or by July 27, 2017.

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