Center for Rethinking Development at the Manhattan Institute
Rezoning Hunters Point Few neighborhoods do a better job of displaying to the naked eye
the wreckage of New York's industrial past and the contradictions
of New York's post-industrial future than Long Island City,
Queens. The luxury towers, for example, rising on the Hunters Point
waterfront, directly across from midtown Manhattan,
stand in contrast to the decaying inland jumble of light
industrial uses, contract office space, small wooden-frame
houses, and converted lofts. The decay exists because the
area has not been allowed to develop naturally - or even
upgrade - since 1961, when city government revised the zoning code to mandate an industrial
future for Hunters Point.
Nonetheless, New Yorkers in search of space are a determined lot,
and many printers, bakers, small manufacturers, consultants,
architects, and artists have moved into the old industrial
buildings - some illegally. While hip new bars and restaurants have followed,
Hunters Point remains distinctly "industrial in landscape and melancholy in personality,"
laments the Village
Voice. City Planning is hoping to change that with its bold rezoning plan.
REZONING Large, undeveloped properties encompassing some 50,000 square feet
exist in part because zoning had made them unmarketable. Zoning
is one of local government's basic means of redistributing
wealth, conferring riches on some property owners while
withholding development rights from others. The favored few are
permitted to develop their land to its highest and best use,
while others are severely restricted. Property that is zoned
incorrectly - confined to a use that is no longer economic - may become virtually useless,
preventing owners from responding flexibly to market changes.
Rezoning underused land, which the Bloomberg administration has
rightly made a
priority in the boroughs, corrects some old injustices but nearly always introduces new ones.
Property that can be developed to 10 stories becomes worth far
more than adjacent property developable to only 4 stories. Even more
serious from the point of view of the 4-story property owner, the
smaller-scale blocks may well lose value as they become
overwhelmed by their large neighbors. They end up with the worst
of two worlds: less valuable property but without the charm and
peace of the usual low-rise, residential neighborhood.
Almost everyone agrees that high-density, mixed-use development
is appropriate for Hunters Point, which is well-served by mass
transit and major roads - though poorly served by schools and completely lacking in supermarkets.
The question is: how much density and on which blocks? And what happens to the midblocks that get left behind, engulfed by high-density but trapped in low-density zoning?
CITY PLANNING'S PROPOSALS Consisting of Hunters Point, Court Square, and Queens Plaza
sub-districts, the new Special Long Island City Mixed Use District
anticipates about 5 million square feet of new office development
and 300 new housing units plus retail and institutional
development. Residential districts will be paired with manufacturing districts
in four areas, allowing development of 10 to 12 story buildings in some manufacturing areas,
and 4 to 7 in others.
Much of this is based on admirable principles, including as-of-right development of most light manufacturing, commercial, and residential uses. Certainly City Planning is correct to urge
high-density, tall residential development at Queens Plaza and
Court Square, which are served by two transit hubs and are now
marred by many large vacant or underused sites. And certainly John Young, the director of City Planning’s Queens office, is right to predict that rezoning will produce an “upturn” in the market.
Richard Maltz, chairman of Griener-Maltz, an industrial and commercial broker active in Queens,
told the New York Times that a typical 10,000-square-foot factory building in the area now sells for
$120 to $140 a square foot, or $1.2 million to $1.4 million. But a builder who can put up a
30,000-square-foot residential tower on the same site will find that the value of his property has
nearly doubled to between $2.1 million and $2.5 million.
What's troublesome, though, is City Planning's insistence that
it is protecting the neighborhood by maintaining the low density
of the mid-blocks that now have small row houses and factories.
With the exception of the one tiny historic district of
Italianate row houses on 45th Avenue,
these low-density blocks have almost no economic future for their current character.
Despite their funky appeal, the wood-frame houses tend to have old-fashioned lay-outs - often railroad
flats - and inadequate plumbing. Many have been poorly maintained, in part because financing has been
almost impossible to obtain to rehabilitate a house in a manufacturing zone.
John Malloy, a property owner and life-long resident of Hunters
Point, is most worried about the fate of the midblocks on either
side of Vernon Boulevard between 48th avenue and 47th avenue.
"The only way to protect us is to allow us to equitably develop
our own properties," he argues. "We've been given the lowest
zoning in all of Long Island City, which permits us only to
build to four stories. Yet in the name of saving industry,
City Planning is permitting high-rise development in the
areas that are primarily industrial." He emphasizes that he and
his neighbors are not against development, "which is in the
interest of everyone," but "we don't want stagnation." He also objects to the ban on
midblock commercial use, since that means no restaurants or coffee shops.
It's hard to see what's wrong with his position. City Planning should agree to take another look at the
restrictions imposed on midblock development. Malloy contends that in the near future
"somebody will jump over the Fifth Street border," which divides Queens West’s luxury towers
from the inland low-rise factories and houses, "and develop this property, after the city has long
since forced us out."
MANUFACTURING JOBS
Friedman's group is urging the city to create an Industrial
Employment District, much like Chicago's Planned
Manufacturing Districts, which restrict as-of-right uses to those
involving the production, assembly, storage or transportation of
physical goods. Other uses would require special permits. This solution, however, might
in practice be a return to the old, centrally planned zoning that so injured industrial
districts to begin with. Government has not proved itself to be a good arbiter of which
uses should be permitted and which forbidden.
WHATS NEXT The City Planning Commission is in the midst of its public review
process on the proposals. It approved the application
for zoning map and text amendments on June 23, 2004, and sent the
package to the City Council, which must respond in late August.
Copyright
Manhattan Institute
Julia Vitullo-Martin, July 2004
Long Island City has long been heralded as New York’s
next major central business district,
and most of City Planning's current rezoning proposals for achieving this are good. Their idea is to
"facilitate commercial development at increased densities and
allow new residences to mix with commercial and light industrial
businesses," while taking advantage of Long Island City's
excellent mass transit (8 subway lines) and its "supply of large, underdeveloped properties."
Existing low-density light manufacturing zones will be replaced by higher-density, mixed commercial and
residential zones to allow as-of-right developments, including office buildings. (Click on the Department of City Planning map below to enlarge current land-use details.)
The 37-square-block area to be rezoned lies at the eastern end of
the Queensboro Bridge, bordered roughly by 23rd Street on the
west, 41st Avenue on the north, and the Sunnyside Yards on the
east. The rezoning adds 34 blocks to the 3 blocks at Court Square
that were rezoned for high-density development in 1986, allowing
the construction of the 1.25 million square-foot Citibank
office tower. Opened in 1989, Citibank (now Citicorp) stood as a
48-story beacon that failed, until very recently, to attract any
other development. That's changing fast. While renovating its Manhattan space,
the Museum of Modern Art, for example, has temporarily relocated nearby, joining P.S. 1,
the Socrates Sculpture Garden, and the Isamu Noguchi Garden Museum.
The Metropolitan Life Insurance Company is erecting a 404,000-square-foot
building to house some 2,000 employees now working in Manhattan. Citicorp is itself putting up a new building across the street from its first,
which remains the largest New York building outside Manhattan.
City Planning’s 2002 in-depth survey of all industrial uses and employment in Hunters Point
found some 3,300 industrially classified jobs in 90 firms. But
industry is clearly on the decline in Hunters Point itself,
though Long Island City as a whole retains roughly 27,000 industrial jobs. Adam Friedman,
director of the New York Industrial Retention Network,
a citywide economic development organization
that advocates for manufacturers, believes that while New York
lost many jobs to lower production costs overseas, most of
Long Island City's remaining industrial jobs are with firms that
are committed to being in New York. "The city is right to want to
increase housing and density in some areas, but the question is
how to target that development without having a negative impact
on jobs in adjacent areas. Yes, we need a new office district
and we need to upzone in this area, but we also need to increase
protections elsewhere. As one manufacturer told us: we want to
stay in New York, so just tell us where to go, where there's some stability.
We'll play by the rules, but we have to know what they are." Firms in Hunters Point
include jewelry makers, wholesale bakers, theatrical equipment assemblers, woodworkers, and metal platers.
(http://www.manhattan-institute.org)