Establishment of BID in Bedford- Stuyvesant appears successful. On February 11, 2009, the City Council’s Finance Committee held a hearing on the Department of Small Business Services’ plan to create a new Bed-Stuy Gateway Business Improvement District for 357 tax lots and 267 property owners. The BID’s boundaries would extend along Brooklyn’s Nostrand Avenue, from Halsey Street to Atlantic Avenue, and on Fulton Street, from Classon to Troy Avenues. The BID’s first year budget would be $675,000, and the median annual BID assessment would be approximately $99 per month for a typical 20-ft. wide storefront.

At the Committee hearing, Council Member Albert Vann, whose district would include the BID, stated that there had been many failed attempts over the past twenty years to create a BID in Bedford- Stuyvesant. He credited the leadership of the Bedford-Stuyvesant Restoration Corp. for working with the Fulton-Nostrand United Merchants Assoc. to garner support for the BID. As of Nov. 19, 2008, the BID had obtained support from 98 percent of the assessed value property owners. (more…)

Project approved after concerns over potential adverse effects on small businesses addressed. On February 26, 2009, the City Council approved a special permit application to facilitate construction of The Shops at Gateway, a retail shopping center at the corner of Flatlands and Fountain Avenues in East New York, Brooklyn. The developer, Morgan B. Realty LLC, intends to build three one-story buildings with about 230,000 sq.ft. of retail space for approximately 25 commercial tenants. The development site is zoned M1-1, which limits certain retail uses to 10,000 sq.ft. of floor area. The majority of retail stores will range in size from 2,000 – 5,000 sq.ft., but the developer also intends to construct two or three stores larger than 10,000 sq.ft. The special permit allows for larger retail stores because it removes the floor area limitation on some retail and service uses, including variety, clothing, and department stores.

At Council’s Zoning & Franchises Subcommittee hearing, Morgan’s attorney, Howard Goldman, stated that the project would benefit the community by providing a wider variety of shops and services than is currently available in the area. He also stated that the City Planning Commission found that the larger retail stores would not adversely affect local businesses, and pointed out that the project would create approximately 700 jobs for local residents. Council Member Charles Barron, whose district includes East New York, stated that he thought the project could have been successful providing only small retail space, and expressed concerns about the negative impact the large stores might have on small businesses. Council Member Larry B. Seabrook asked if the developer had set any goals regarding the use of minority contractors. The developer responded that he was willing to work closely with the community and Barron on this issue. Barron asked that the vote be laid over so that he could meet with the developer for further discussions. (more…)

Willets Point, as envisioned by EDC. Image: EDC.

Eminent domain supported if negotiations with local businesses fail. On September 24, 2008, the City Planning Commission approved a modified version of the Willets Point Redevelopment Plan, and sent the contentious plan to the City Council. EDC’s plan calls for the creation of the Special Willets Point District, an Urban Renewal Area designation, and a rezoning for the 61-acre area known as the “Iron Triangle” in Queens. 5 CityLand 57 (May 15, 2008).

The plan has drawn criticism from local businesses and elected officials, and has led to the filing of at least one lawsuit against the City. At the June 13, 2007 City Council Land Use Committee and Economic Development Committee joint oversight hearing on EDC’s proposal, Land Use Chair Melinda Katz criticized EDC’s decision to begin the land use process before selecting a developer, while other Council Members questioned EDC’s plan to develop the entire site as opposed to a more stepped approach that would allow existing businesses to remain in the area. 4 CityLand 87 (July 15, 2007). (more…)

Appellate Division reverses lower court in a three-two opinion. GAC Catering Inc. purchased a one-family home on the corner of Otis Avenue and Hylan Boulevard in Staten Island, across the street from its catering business. GAC demolished the house, and applied to BSA for a variance from residential zoning in order to construct a two-story commercial building to be used as a photography studio in conjunction with GAC’s catering hall. In support of its application, GAC claimed that commercial uses predominated the neighborhood, and that its broker was unable to sell or lease the property as a residence because of the heavy traffic on Hylan Boulevard. GAC also submitted an economic feasibility study indicating that development in strict conformity with the current residential zoning would not yield a reasonable rate of return.

BSA granted the variance, and Edward J. Vomero, a next door neighbor, filed an Article 78 petition seeking to annul BSA’s determination. Vomero argued that the hardship was self-created since GAC was aware of the residential zoning prior to purchasing the lot. Vomero submitted proof that a buyer had offered to buy the property for $415,000, and also claimed that because the property was bought for $275,500 and its market value had recently been appraised at $384,000, it was possible for GAC to receive a reasonable rate of return. (more…)

Architect of pre-designation renovations also chosen to design new residential addition. On October 14, 2008, Landmarks voted to approve the construction of a four-story addition with a penthouse to the two-story structure at 172 Duane Street in the Tribeca West Historic District. The site was originally home to an 1872 store-and-loft building, used for a wood importing business.

More recently, in the 1980s, owners of 172 Duane hired architect Vincenzo Polsinelli and undertook extensive renovations, which eliminated most of the building but left the restored cast-iron facade as a free-standing sculptural element, and built a glass brick-faced building seven feet behind the facade, creating a glowing effect at night. The newest owner of 172 Duane, 172 Realty LLC, also retained Polsinelli to design a residential addition to the existing building. Polsinelli’s original proposal, presented at Landmarks on June 10, 2008, won praise for the inventiveness of its design, but Commissioners ultimately concluded that its bulk was excessive for the historic district. 5 CityLand 99 (July 15, 2008).

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