Midtown South Rezoning Poised to Pass This Summer

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Midtown South could be weeks away from being rezoned. Property owners in the neighborhood may not be ready to act on any changes yet, though.

The Adams administration’s plan to rezone 42 blocks of Midtown South manufacturing districts for mixed-use development is moving toward City Council approval this summer, The City reported. The rezoning will potentially unlock nearly 10,000 housing units.

The rezoning targets four areas zoned for manufacturing, including outdated garment district buildings constructed in the 1920s. Under the proposal, high-density mixed-use zoning would replace manufacturing-only designations, allowing residential, commercial and community facility development.

One-third of the projected units would carry affordable rents. The rezoning will test the 467m tax incentive for office-to-residential conversions, offering 90 percent abatements for up to 35 years when affordable units are included.

Manhattan Borough President Mark Levine and Council members Erik Bottcher and Keith Powers support the plan, though the Council members are pushing for programs to assist fashion businesses that could be displaced. Their early endorsement represents an unusual move in the land use review process, where officials typically withhold support to maximize leverage for concessions.

The plan represents the first major test of state legislation permitting higher residential density, with some sites eligible for floor area ratios up to 18 times the lot size — a 50 percent increase from the previous 12 FAR cap established before the state lifted the city’s residential density limits last year.

The proposal also marks a major moment for zoning districts created under the City of Yes initiative.

The district has struggled since manufacturing restrictions were imposed in the late 1980s. While the de Blasio administration lifted many development restrictions in 2018, the housing prohibition remained.

The Penn Plaza/Garment District office availability rate sits at 15.3 percent, nearly double Hudson Yards’ 8.4 percent rate. Savitt Partners has struggled to lease upgraded space at 218 West 40th Street, where a move-in-ready eighth floor has sat vacant since the pandemic.

“The challenge for owners in the area is that it is not a vibrant neighborhood,” Bob Savitt said.

Community Board 4 recommended rejecting the proposal, seeking height limits and special permits for projects exceeding 12 FAR. Community Board 5 supported approval with conditions limiting 18 FAR areas.

Professionals expect Council approval with minimal modifications. Developers, however, anticipate several years before the zoning becomes actionable and many existing office buildings will remain unconverted due to economic constraints.

The rezoning forms part of Adams’ broader goal to build 100,000 Manhattan units over the next decade.

— Holden Walter-Warner