Massive rezoning proposed for Long Island City

Real Estate Weekly, Jan 17, 2001 by Natalie Keith

The city wants to boost commercial development in Long island City by rezoning 37 blocks near the Queensboro Bridge, officials announced recently.

"This rezoning will transform Long Island City into a major business district, joining the city's other central business districts in Midtown Manhattan, Lower Manhattan, and Downtown Brooklyn," said Joseph Rose, chairman of the city's Planning Commission.

The proposed rezoning area is at the eastern end of the bridge, and encompasses a triangular-shaped set of blocks bounded by Sunnyside Yards on the east, 23rd Street on the west, and 41st Avenue on the north. The Citibank building, built in 1989, is located in the area, which also has two subway stops at Court Square and Queens Plaza. City officials expect the change will result in five million square feet of new office development over the next ten years.

In December, planning officials certified the changes, which will be considered by the local community board, borough president, and City Council.

John West, chairman of the planning and area development committee of the Long Island City Development Business Corporation, said the zone changes are essential to the development of office buildings in Long Island City. They are important to the city as a whole.

"There are very few locations where there is potential for sites and the infrastructure to support it," West said. "If New York City is going to be able to hold onto jobs, it has to provide the office buildings."

The proposed changes would create a new Special Long Island City Mixed-Use District including the following general regulations:

* New commercial, residential and community facility uses will be allowed as-of-right, in addition to light manufacturing uses, to reflect the area's mixed-use character and to facilitate 24-hour activities.

* High-density development (floor area ratio of 12) would be allowed on blocks at Queens Plaza and Court Square and moderate-density development (floor area ratio of 5 and 8) would be allowed on blocks on surrounding blocks

* Floor area bonuses (an additional 3 FAR) will be granted for new developments on two blocks adjacent to the Dutch Kills and Hunters Point neighborhoods that include publicly accessible open space

* A lively pedestrian-oriented environment would be fostered by requiring new developments to have ground-floor glazing treatments and requiring sidewalks to be widened along principal corridors at Queens Plaza and Northern Boulevard

The rezoning stems from planning details outlined in a 1993 report called "Plan for Long Island City: A Framework for Development." The report called for enhancing the area's multipurpose character through creating a new Long Island City central business district, establishing low-density manufacturing districts in surrounding industrial areas, and encouraging new infill residential development in the Hunters Point area.

"The position of the Long Island City Business Development Corporation is that we would like (the rezoning proposal) to be more aggressive, but we understand the environmental limitations," West said.

With office rents in Manhattan skyrocketing over the past decade, many companies have been moving to alternate locations. With its close proximity to Manhattan, transportation infrastructure, and lower rents, Long Island City is a prime neighborhood for businesses seeking to flee high-priced areas in Midtown and Downtown Manhattan.

The rezoning will allow companies to build "as-of-right," or without having to seek zoning changes first. This speeds up the building process and makes it easier for developers to find tenants for potential projects, West said.

"Tenants don't like to be pioneers. The zoning changes will show that there is a plan for the neighborhood," he said.

In conjunction with the rezoning, the city is encouraging development in the area by proposing the sale of the municipal parking garage located at the intersection of Queens Plaza South and Jackson Avenue. Under the rezoning, the site could be redeveloped with a 1.5 million-square-foot structure. The city's Economic Development Corporation issued a request for proposals for the site and responses were due Jan. 8.

Among companies that will receive assistance from the New York City Industrial Development Agency for expansion or relocation plans include Fresh Direct, which will undertake facility upgrade and equipment purchases at 20-30 Borden Ave. Fresh Direct plans to hire 350 employees within the next three years and has been approved to receive approximately $1.779 million in mortgage recording tax waiver and sales tax exemptions, Mayor Rudolph Giuliani announced recently.

Complete Management Services plans to open a Long Island City facility by purchasing and renovating a 77,000-square-foot facility at 47-22 Pearson Place. CMS plans to relocate its affiliated company Global Research Distribution in this location. CMS will receive approximately $3 million in real estate and sales tax benefits over a 25-year period, the mayor said.