Special Permits Now Required for New Hotels in M1 Districts

Special permits are now required for new hotel developments in M1 districts. On December 20, 2018, the City Council adopted the M1 Hotel Text Amendment to the New York City Zoning Resolution (“ZR”). Proposed by the Department of City Planning, the amendment is meant to downgrade the proliferation of hotels in M1 districts, which are seen as detracting from other economic opportunities.

According to the already effective amendment, the City Planning Commission (“CPC”) must issue a special permit to:

(1) develop a hotel

(2) change/convert the use to a hotel

(3) enlarge a preexisting building to contain a hotel where one was not previously present, and/or

(4) enlarge/extend a hotel whereby the floor area increases by at least twenty percent (20%). See ZR § 42-111(a).

A special permit will be granted provided that CPC finds the following:

The site plan incorporates elements addressing potential conflicts between the hotel use and adjacent uses (e.g., a hotel and a residential building);
The site plan demonstrates that the proposed Street Wall and design/landscaping will result in a site design not impairing the character of the existing streetscape;
The hotel use will not cause undue vehicular or pedestrian congestion on streets, nor inhibit vehicular or pedestrian movement; and,
The hotel use will not impair the essential character of the surrounding area.

The amendment contains several caveats that apply differently based on permit status and construction commencement, amongst other things. For example, a special permit is not required for properties under the jurisdiction of the Port Authority of New York and New Jersey for airport use, Special Mixed Use Districts as defined in the ZR, or where any M1 District overlays a Residence District.

Protections are provided for developments that have already been issued building permits. For instance, pursuant to Section 11-30 et seq. of the ZR, construction may continue if the hotel’s foundation has been completed prior to December 20, 2018. Also, if a building permit for a Development was lawfully issued on or before April 23, 2018, construction may commence or be continued.

The M1 Hotel Text Amendment in intent and effect can pose obstacles for the new development of hotels in manufacturing districts in New York City. Local zoning counsel should be included in conversations on such projects moving forward.

*All capitalized terms are defined in Section 12-10 of the Zoning Resolution.

By Stuart A. Klein, Esq., and Justin Rostoff, Esq., Klein Slowik PLLC, New York, NY

This article is not legal advice. Please consult an attorney for counsel with regard to your individual circumstances.