The proposal, approved 42-0, updates the area’s zoning code to incentivize new, dense development and revitalize the flagging business area in order to compete with the Financial District and Hudson Yards. The 78 blocks in the area are currently home to more than 250,000 jobs and generate ten percent of the city’s property tax base, according to a New York Daily News article penned by Councilman Daniel Garodnick. The city anticipates 6.5 million square feet of office space being added to East Midtown.
Developers can build higher and gain more floor-area-ratio (FAR) by either buying landmarked air rights or making specific transit improvements (targeted mainly at subway stations). Several recent changes include the lowering of the air rights minimum: developers can purchase air rights at $61.49 per square foot, of which the proceeds will go toward a public realm fund. Developers are also required pay upfront for transit improvements if they choose to go that route; buildings will not be occupiable until those improvements are finished.“The goal is to improve Midtown, not keep it as it is,” Councilman Garodnick said at the meeting.
The city has committed $50 million to start improving public spaces—before anything is built—and the first project includes a shared street on 43rd Street, near Grand Central Terminal. Over the next 20 years, the city estimates that up to 16 properties could take advantage of the rezoning.