Developer argued City inadequately considered rezoning’s economic impact. In May 2008, the Department of City Planning proposed rezoning 111 blocks in Manhattan’s East Village and Lower East Side neighborhoods. Planning proposed the contextual rezoning in order to preserve the area’s low- and midrise character and channel new construction to blocks suitable for development. The plan included rezoning large mid-block portions above Houston Street from R7-2 to R8B to establish height limits while providing an increase in total floor area. The plan also included applying a more restrictive R7B zoning district to three mid-blocks located between East 4th and 7th Streets and Avenues A and B.

After three years of public review, the City Planning Commission prepared a final environmental impact statement which concluded that the rezoning would have no significant impact on the environment. The City Council approved the proposal. 5 CityLand 165 (Dec. 2008). (more…)