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CITY PLANNING COMMISSION July 20, 1998/Calendar No. 3 N 980314 ZRM IN THE MATTER OF an application submitted by the Department of City Planning, pursuant to Section 201 of the New York City Charter, to amend various sections of the Zoning Resolution of the City of New York relating to the establishment of a Special Lower Manhattan District (Article IX, Chapter 1), the elimination of the Special Greenwich Street Development District (Article VIII, Chapter 6), the elimination of the Special South Street Seaport District (Article VIII, Chapter 8), the elimination of the Special Manhattan Landing Development District (Article IX, Chapter 8), and other related sections concerning the reorganization and relocation of certain provisions relating to pedestrian circulation and subway stair relocation requirements and subway improvements. The application for the amendment of the Zoning Resolution was filed by the Department of City Planning on February 4, 1998. The proposed zoning text amendment and a related zoning map amendment would create the Special Lower Manhattan District (LMD), a new special zoning district in the area bounded by the West Street, Broadway, Murray Street, Chambers Street, Centre Street, the centerline of the Brooklyn Bridge, the East River and the Battery Park waterfront. In conjunction with the proposed action, the New York City Department of Housing Preservation and Development is proposing to amend the Brooklyn Bridge Southeast Urban Renewal Plan (located in the existing Special Manhattan Landing District) to reflect the proposed zoning text and map amendments. The proposed zoning text amendment controls would simplify and consolidate regulations into one comprehensive set of controls for Lower Manhattan. The proposal supports the continuing revitalization of the area by allowing a wider range of uses, eliminating outdated controls and providing simplified height and setback regulations that are more consistent with the character of existing development. The objectives of the proposed zoning text amendment are to: foster the reuse of existing underused commercial buildings, allow a wider range of commercial uses that better support an increasing residential population, assure development that is more consistent with the historic fabric, including the existing scale and density of the area, remove obsolete zoning controls that do not respond to present day needs, and promote the orderly growth and development of the Lower Manhattan waterfront area. The proposed text amendment also includes several changes to other sections of the zoning resolution. These proposed changes would consolidate various regulations from special districts into one section in the zoning resolution so that the same regulations can be made applicable to several special districts. In addition, the Special Lower Manhattan Mixed-Use District (LMM) would be renamed the Tribeca Mixed-Use District, and Area A3 of the LMM would be eliminated from the district and added to the proposed LMD. RELATED ACTIONS In addition to the amendment of the Zoning Resolution which is the subject of this report, implementation of the proposed zoning text amendment also requires action by the City Planning Commission on the following applications which are being considered concurrently with this application: C 980315 ZMM Zoning map changes to amend Zoning maps 12b and 12d to establish a new Special Lower Manhattan District, to eliminate the Special Greenwich Street Development, the Special Manhattan Landing Development and the Special South Street Seaport districts, modify the boundaries of the Lower Manhattan Mixed-Use District and rename it as the Tribeca Mixed-Use district and other zoning map changes. C 980316 HUM Eighth amendment to the Brooklyn Bridge Southeast Urban Renewal Plan. 2 N 980314 ZRM BACKGROUND Lower Manhattan occupies a valuable and unique position in New York and indeed the world. Its workforce of 375,000 makes it the third largest business district in the United States after Midtown Manhattan and the Chicago Loop and it contains more office space than Atlanta and Boston combined. In spite of its unique character, Lower Manhattan experienced many of the difficulties of older American cities, including the substantial loss of jobs that occurred in the late 1980's and early 1990's. The vast majority of these jobs were from the financial services sector which has traditionally been the dominant industry in Lower Manhattan. The primary cause of the loss was the downsizing and consolidation in this sector during the late 1980's. Additionally, Lower Manhattan had been losing jobs to the surrounding suburban areas where the costs of doing business were lower. Lower Manhattan's commercial vacancy rate continues to be higher than in Midtown Manhattan and it was slower to respond to the revitalization of the City's economy. The area is further hampered by its aging building stock in which 35 percent of its floor area is in buildings constructed before World War II. Limited transit access to Lower Manhattan, particularly from the suburbs of Long Island and Westchester County, also has limited its desirability for first class office development. THE 1994 PLAN FOR THE REVITALIZATION OF LOWER MANHATTAN In response to the growing job losses, decreasing assessed valuations, and increasing vacancy rates in Lower Manhattan, the Mayor convened a task force in 1994 to develop the PLAN FOR THE REVITALIZATION OF LOWER MANHATTAN. It identified a number of critical issues including: 3 N 980314 ZRM the loss of 10,000 jobs per year to the surrounding suburban areas because the costs of doing business in Lower Manhattan are too high, the decline by over 29 percent of the assessed value of buildings in Lower Manhattan between 1991 and 1994, the decline in city tax revenues of $115 million between 1991 and 1994, the high vacancy rate of over 20 million sq ft of the building stock, the structural problems of Lower Manhattan. Its reliance on a few industry sectors, aging building stock and lack of direct commuter rail access are permanent problems and will continue even as the economy of the rest of the city improves. The plan recommended a series of actions to revitalize Lower Manhattan and make it more competitive by building on its vast strengths, diversifying its economic base, and encouraging investment in existing buildings for both commercial reuse and retention, and conversions of obsolete office buildings to residential use. The Revitalization Plan included several elements including tax benefits, transportation, historic preservation, and planning and zoning components. The tax benefit component provides a comprehensive package of short- and long-term tax incentives that encourage investment in commercial buildings by tenants and owners, and conversion of obsolete commercial space to residential use. The transportation component of the plan recognizes that providing easier access to and within Lower Manhattan is crucial to retaining existing uses and to expanding the area's economic base. Improving commuter rail access to Lower Manhattan was identified as a top priority, and the Metropolitan Transportation Authority is now studying the feasibility and cost of bringing the Long Island Rail Road and Metro North rail service to Lower Manhattan. 4 N 980314 ZRM The historic preservation component of the plan was designed to protect and reinforce Lower Manhattan's unique history and resources, recognizing it as one of the area's strongest assets. This history gives Lower Manhattan its special design character and accentuates it position as the origin of the modern city. The plan recommended several initiatives such as increasing tourism and cultural activities to diversify the economy and bring in new economic users. The Landmarks Preservation Commission (LPC) has designated the Stone Street Historic District that recognizes the historic value of this largely untouched part of Lower Manhattan and preserves its unique streetscape. The LPC has also expanded its program for identifying and designating individual buildings as landmarks. The Department of City Planning (DCP) has been active in studying ways to improve the pedestrian environment and to encourage the revitalization of obsolete commercial buildings. In conjunction with the Department of Transportation, DCP has recommended a series of street improvements that would contribute to downtown's rejuvenation as an appealing and vibrant community by improving pedestrian circulation, reducing congestion, improving safety, and providing better pedestrian access to mass transit, offices, the waterfront, open spaces, and tourist attractions. The City will be implementing tests of these recommendations. These improvements are complemented by the streetscape and street design improvements such as signage, lighting, new street furniture and special pavement treatments, being coordinated by the Alliance for Downtown New York. The Revitalization Plan recommended zoning changes to facilitate the conversions of obsolete office buildings to residential use. In response, the Department initiated two zoning text amendments -- adopted in 1995 and 1996 -- that reduced the minimum average size of dwelling units in converted buildings; made more flexible the home occupation regulations; permitted off-street parking in converted buildings; and permitted the conversion of non- residential buildings to residential use that were built between 1961 and 1977 to follow the more liberal rules available to buildings constructed before 1961.
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