1998 zoning amendment required contribution to theater fund for transfer of development rights from certain theaters. On October 19, 2011, the City Planning Commission held a public hearing on a proposed amendment to the City rules that would increase the contribution to the Theater Subdistrict Fund connected to the transfer of development rights from 46 listed theaters in Manhattan’s Theater Subdistrict. The proposal was published in the City Record on September 15, 2011.

The City in 1982 created the Theater Subdistrict to halt further demolitions of Midtown theaters. The Subdistrict comprises an area generally bounded by West 40th and West 57th Streets and Sixth and Eighth Avenues. The Subdistrict restricted the demolition of designated theaters and permitted theaters to transfer development rights to other parcels in the area. A set of amendments to the Subdistrict approved in 1998 created a mechanism that permitted certain theaters to transfer development rights on an as-of-right basis. A theater could transfer its development rights if it committed to operate as a legitimate theater and if a financial contribution was made to the Theater Subdistrict Fund. The fund is administered by the Theater Subdistrict Council, which was created in 2007 and allocates grants to promote the theater industry.

The City Planning Commission is required to review and adjust the contribution amount no more than once every three years and no less than once every five years. The adjustment reflects changes in the assessed values of properties within the Subdistrict. In 1998, the contribution amount was set at $10 per square foot of transferred floor area and increased to $14.91 in 2006.  (more…)