Plan seeks to address pressure for residential development in the area. On January 7, 2008, the Planning Commission launched public consideration regarding KMG Greenwich’s proposal to rezone a five and a half block northern portion of Hudson Square, roughly bounded by Morton, Hudson, Clarkson, and West Streets. The proposed rezoning would facilitate the conversion of the building located at 627 Greenwich Street from commercial to residential as well as the development of a new 80,000-square-foot residential building on 111-115 Leroy Street.

In 2002, a Department of City Planning study on land use conditions and trends in Hudson Square recommended that the City rezone portions of the historically industrial area to allow residential use. City Planning proposed such a rezoning in 2003, which the Commission approved. The City Council, however, excluded from the plan the northern portion of Hudson Square, the same portion which is the subject of KMG’s proposal, because of concerns that the proposed rezoning would have a detrimental impact on the nearby Mitchell-Lama development known as the West Village Houses. The West Village Houses, however, are no longer part of the Mitchell-Lama program, clearing the way for a re-analysis of the issue.

Under KMG’s plan, the area would be rezoned as an M1-5/R7X district to allow a maximum FAR of 5.0 for residential, community facility, commercial, and manufacturing uses. Under the current zoning, new residential development is not permitted as-of-right. According to KMG’s environmental assessment, the rezoning would likely result in the displacement of 20 businesses and 413 employees.

Manhattan Community Board 2 will hold a public hearing on the proposal February 14th and vote on the matter February 21st.

CPC: Application – Hudson Square North Rezoning (C 070 575 ZMM – map amend.) (Jan. 7, 2008) (Greenberg Traurig, LLP, for KMG Greenwich LLC).