Hello HllHello Hello East Midtown Study...Introduction Goals • Protect and strengthen East Midtown...

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East Midtown StudyUpdate presentation II

February 28, 2013

IntroductionEast Midtown Area

uePa

rk A

venu- 70 million sf office space

- 250,000 jobs

- 14 Fortune 500 companies

- NYC financial core

- Unparalleled investment in infrastructure

GCT

- DCP East Midtown Study

Orthophoto Base Map Copyrighted by the New York City Department of Information

Technology and Telecommunications.All rights reserved.

IntroductionLong-Term Challenges

Building stock aging • 80% over 50 years old• Office buildings have outdated structural g

features like low ceilings and interior columns

Limited new development• Only two major new office buildings in last• Only two major new office buildings in last

decade

Limited success of current Grand Central zoning

• +1 milllion sf remaining on GCT• Requires onerous public review process

Pedestrian Network Challenges • Above- and below-gradeAbove and below grade

Competitor Cities• Replacing outdated office space in existing

office core districts


IntroductionGoals

• Protect and strengthen East Midtown as one of the world’s premier business addresses and key job center for the City y j yand region

• Seed the area with new modern and sustainable office buildings to maintain its preeminence as a Class A office districtpreeminence as a Class A office district.

• Improve the area’s pedestrian and built environments to make East Midtown a better place to work and visit

• Complement ongoing office development in Hudson Yards and Lower Manhattan to facilitate the long-term expansion of the City’s overall stock of office spaceCity s overall stock of office space


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As-of-right Development Framework for Qualifying Sites

• Intended to encourage limited and targeted as-of-right commercial development

Calibrated to enco rage de elopment in• Calibrated to encourage development in appropriate locations

• Improve landmark transfers within Grand Central and generate funding for area-

(for qualifying

sites)49th

g gwide pedestrian network improvements sites)

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IntroductionQualifying Site Mechanisms

District Improvement Bonus Landmark transferpHigher maximum FAR permitted as-of-right through contribution to fund for area-wide

pedestrian network improvements

Higher maximum FAR permitted as-of-right around Grand Central through floor area

transfers from landmark buildings


IntroductionSuperior Development Special Permit

T ll t di b ildi t

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• To allow extraordinary buildings at key sites, new special permit (full ULURP) to permit greater FAR

• Proposals must exhibit significant p gcontribution to the skyline, result in superior relationship to other buildings, result in a superior site plan and massing, and make a significant contribution to the

(for qualifying

Up to

24.0significant contribution to the pedestrian network

• Minimum site size – 40k around Grand Central, 25k along Park

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qualifying sites, via special permit)

Avenue

• Required District Improvement Bonus contribution or Landmark transfer (around Grand Central)

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Up to 30.0

transfer (around Grand Central)GCT

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IntroductionDIB/Public Improvements

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47th• Vanderbilt offers opportunity to create a significant gateway in East Midtown, adjacent to Grand Central Terminal

Gi en iconic location sho ld be an

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46th• Given iconic location, should be an elegant and distinguished space

• Intent would be to create a partially-pedestrianized public space while still

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45thp p pallowing crosstown access and access to surrounding buildings and Grand Central Terminal

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IntroductionDIB/Public Improvements

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IntroductionEast Midtown Update

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January’s Topics• Proposal Update

OUT

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nu• Boundary Change• Sustainability

• RWCDS Update

• DIB mechanism• Committee structure• Duties of Committee

U f f di• Use of funding

• Pedestrian Network –Findings


IntroductionEast Midtown Update

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Today’s Topics• Residential Uses

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• Historic Resources

• DIB Contribution Rate

• DIF Priorities

• Next Steps


Residential Uses


Proposal UpdateResidential Uses

• Residential uses are allowed in East MidtownResidential uses are allowed in East Midtown under existing zoning, and we are seeing as-of-right residential growth through new development and building conversions

Thi t d i t d t ti i th• This trend is expected to continue in the future; We assume nearly 1 million additional square feet of residential development in area through as-of-right construction

• The purpose of proposal is to maintain a strong commercial presence in East Midtown by encouraging new commercial development in East Midtown on Qualifying Sites

• Incentivizing residential uses on the limited sites of significant size that represent the best opportunities for commercial development in the area would be contrary to proposal’s goals and objectives

• We believe a mix of uses is best achieved by continuing to allow residential uses on non-qualifying sites


Sony Building1980s office building presently planned for

conversion to residential and hotel uses

qualifying sites

DEIS Historic Resources


Proposal UpdateDEIS Historic Resources

CEQR Technical Manual – Historic Resources in DEIS“Environmental review for historic and cultural resources includes a survey and planning process that helps protect New York City cultural heritage from the potential impacts of

j t d i CEQR Hi t i dprojects undergoing CEQR. Historic resources and archaeological sites are identified and evaluated, and if impacts are found, they are mitigated or avoided to the greatest extent practicable.

As appropriate, the lead agency may determine it is appropriate to consult or coordinate with the city’s expert technical agencies for a particular project. Here, the New York City Landmarks Preservation Commission (LPC) should be consulted for information technical review andshould be consulted for information, technical review, and recommendations for mitigation relating to historic and cultural resources.”

“For projects that may affect historic resources (see Section 200), the first step in evaluating a project's potential effects on historic resources is to consider what area the project might affect and then identify historic resources—whether officially recognized or eligible for such recognition—within that area ”


that area.


CEQR Technical Manual – Historic ResourcesCEQR Technical Manual Historic Resources in DEIS“Impact assessment is directly related to the proposed project and how it would affect the distinguishing characteristics of any resources identified.

The assessment asks three major questions:(1) would there be a physical change to the property?; (2) would there be a physical change to its setting,

such as context or visual prominence (also known p (as indirect impacts)?;

(3) if so, is the change likely to alter or eliminate the significant characteristics of the resource that make it important?”

Reviewed in various chapters including:• Historic Resources• Construction• Neighborhood Character• Shadows• Shadows• Urban Design and Visual Resources



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• 23 existing Landmark buildings in g gEast Midtown

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a) 275 Madison Avenueb) Bowery Savings Bank) Ch i B ildi

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tc) Chanin Buildingd) SOCONY-Mobile) Grand Central Terminalf) Chrysler Buildingg) Fred French Buildingh) New York Central Building

49thi jh) New York Central Building

i) Saks Fifth Avenuej) Waldorf-Astoriak) St. Patrick’s Cathedrall) Villard Housesm) St. Bartholomew’s Church

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n) GE buildingo) Summit Hotelp) Pierce Residenceq) Look Buildingr) Fisk-Harkness Building) R t Cl b

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b c d

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s) Racquet Clubt) Seagram’s Buildingu) America-Israel Cultural Foundationv) Lever Housew) St. Regis Hotel


a


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w• 23 existing Landmark buildings in East Midtown

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t• LPC has been actively reviewing the East Midtown area to identify other ‘potentially eligible’ historic resources

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a


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• LPC has identified 32 “potentially eligible” historic resources in East Midtown for the DEIS analysis*

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271) Encaustic Tile Bldg2) 18 East 41st St Bldg3) 22 East 41st St Bldg4) Chemists’ Club Bldg5) 299 Madison6) Lincoln Building

17) 400 Madison 18) Union Carbide Bldg19) Hotel Lexington20) Halloran House21) 18-20 East 50th St22) 437 Madison 21

23

26

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49th6) Lincoln Building7) Philip Morris8) Pershing Square Bldg9) Lefcourt National Bldg10) Met Life Bldg11) Graybar Bldg

22) 437 Madison23) Benjamin Hotel24) Girl Scouts Bldg25) R&M McCurdy Bldg26) 503 Madison27) Paley Park 15

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16 18 19

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46th 11) Graybar Bldg12) Title Guarantee Bldg13) Yale Club14) Roosevelt Hotel15) Postum Bldg16) Mercantile Library

27) Paley Park28) Citicorp Center29) Young Residence30) 417 Park Avenue31) Erdmann Residence32) Universal Pictures Bldg 10

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* Eligibility is a process defined by environmental review process. The designation of landmarks is subject to its own process set out by the Landmarks Preservation Commission and as


1 24defined under the NYC Landmarks law

DIB Contribution Rate


Proposal UpdateDIB Contribution Rate

District Improvement Bonus proposal is intended to ensure flexibility to identif and implement pedestrianidentify and implement pedestrian network improvement projects as funding is generated, while offering opportunities for public input and reviewreview

Zoning Text would describe:• District Improvement Fund (DIF)

• DIF Committee

• District Improvement Bonus (DIB) provisions



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• EDC, on behalf of the Department of City Planning, procured a development rights valuation study from LandauerValuation & Advisory, a subsidiary of Newmark Grubb Knight Frank

49th• Goal of study was to determine a contribution rate for DIB that reflects market rate for commercial development rights

46th • Study valued the commercial development rights created under this proposal at $250 per square

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foot and DCP is recommending that this be the required DIB contribution rate

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‘Overbuild’ Discounted RateThe discounted rate to rebuild ‘overbuilt’ floor area would be 50% of base rate ($125 per sf)

Annual AdjustmentCity is continuing to study

49thadjustment mechanism that would track changes in market values over time

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A f i ht DIB t ib tiAs-of-right DIB contributions• East Midtown DIB would generate

$605 million (in 2013 dollars) for pedestrian network improvements

t 20 b dover next 20 years, based on Projected Development in DEIS

• Each Qualifying Site estimated to t ib t f $50

49thcontribute an average of $50 million to DIB (range $30m-$100m)

• Assumes use of all landmark G d C t l S b fl

46th Grand Central Subarea floor area (5% of GCT sales go to improving Terminal building)

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S i l P it f S iSpecial Permit for Superior Development - DIB contributions• DEIS will also study the conceptual

use of special permit on three sites

• If approved at maximum FAR (24.0, 30.0), these developments would generate additional $145

illi f d t i t k49th

million for pedestrian network improvements in East Midtown

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T t l f di f d t i t kTotal funding for pedestrian network improvements generated over long term by DIB through development on Projected Sites in DEIS scenario and in special permit conceptual analysis:special permit conceptual analysis:

As-of-Right DIB $605mConceptual Special Permit DIB $145mTotal DIB $750m

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$

Represents the best estimate of proceeds available through the DIB over the long term

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DIF Priorities


Proposal UpdateDIF – Early Priorities

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GC Subway Station - Lexington Line• Greatly improves user experience in subway station

Vanderbilt Avenue• Opportunity to create significant new public space adjacent to Grand Central Terminal


• Can improves running of overall Lexington Line

• New distinguished ‘address’ for new commercial construction

Proposal UpdateDIF – Below-grade

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Potential below-grade improvements•Grand Central station • 5th/53rd st station• Lex/53rd st station 53rdLex/53 st station 53

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Proposal UpdateDIF – Below-grade

Grand Central Subway Station


5th/53rd station Lex/53rd Station

Proposal UpdateDIF – Above-grade

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Potential above-grade improvements• Key Street improvements• Vanderbilt connections

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Vand

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- DCP East Midtown StudyMadison Lexington


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Key Street improvements• Opportunity to develop comprehensive improvements to streets with high pedestrian activity – Madison, Lexington, 53rd streets• Could include sidewalk widenings andCould include sidewalk widenings and bumpouts, subway grate replacements, street tree planting, or other design interventions•Specific designs would be further developed in the future including analysis

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- DCP East Midtown StudyMadison Lexington

developed in the future including analysis, design and public consultation


Park Avenue

Vanderbilt ConnectionsWo ld pro ide opport nit to e pand

45th Street Connection

Depew Place

• Would provide opportunity to expand Vanderbilt pedestrian space network to surrounding area• Create outdoor network around Grand Central Terminal

Vanderbilt

Loop Road

Grand Central Terminal

Porte Cochere

Pershing EastPershing West

42nd Street Connection

Library Way


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Lex.

Proposal UpdateDIF

P ibl DIF l l t f

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Lexi

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Possible DIF value over long term of $600m-$750m (based on DEIS development scenario and conceptual use of special permit)

53rdImprovementsIdentified below-grade improvements• GC subway station • 5th/53rd st station• Lex/53rd st station

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Lex/53rd

station5th/53rd

station

• Lex/53rd st station

Identified above-grade improvements• Vanderbiltpedestrian space• Lexington Avenue sidewalks • Madison Avenue sidewalks• 53rd street sidewalks• Vanderbilt connections Va

nder

bilt

GC Subway

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Subway

Next Steps


Proposal UpdateNext Steps

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Next Steps

Next Tri-Board meeting• Vanderbilt design concepts• Height and setback controls• Sustainability update

49thApril ULURP Certification Date

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Hello HllHello Hello East Midtown Study...Introduction Goals • Protect and strengthen East Midtown...

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