A long-awaited plan to bring new office towers to East Midtown is one step closer to becoming reality. But as our Michael Scotto reports, the city's powerful real estate lobby is not on board.
The office buildings in Midtown East are iconic, yet old.
But soon, officials say, new buildings may start going up after the de Blasio administration's plan to rezone a large swath of Midtown East cleared a key City Council hurdle Thursday.
"This is a plan that will establish East Midtown as the crown jewel of our business districts," said City Councilman Dan Garodnick.
The rezoning has been in the works for years. It is actually the second plan, after the City Council crushed one proposed toward the end of the Bloomberg Administration.
The proposal would rezone 73 blocks, allowing developers to build higher in return for contributions to a fund that would improve nearby subway stations.
"In order to build a building, a larger building than you can today, to literally be able to open that building you are going to have to be able to deliver a set of public realm improvements," said Deputy Mayor Alicia Glen.
Developers are expected to maximize the height of their projects by purchasing air rights from nearby landmarked buildings. Under the plan, the city would receive at least $61.50 per square foot from the proceeds of each sale and invest the money in public improvement projects.
But the Real Estate Board of New York says that's too high.
"As a result, it is less likely that the public improvements that are needed in greater East Midtown will be achieved," said REBNY President John Banks.
The city, though, claims the fund will raise hundreds of millions to improve the area.
One planned improvement involves creating privately owned public parks and plazas; another would make 43rd Street near Grand Central Terminal more pedestrian friendly.
"These are big issues for an area where thousands and thousands of people go to work every single day," said Manhattan Borough President Gale Brewer.
The full City Council is expected to vote early next month, and since the plan has already cleared some major hurdles, it is expected to pass.