City Council Restricts Hotel Development in M1 Zones

With a New York City Council vote just before the holiday in December, it will become harder to develop new hotels in certain areas of the city. A new City Planning Commission Special Permit will be required to construct new hotels and motels in light manufacturing (M1) zones. City Planning Director Marisa Lago said that because competition for buildable land is rising, particularly in light manufacturing districts, “the targeted, case by case, site specific approach…allows for new hotels in manufacturing zones when that is appropriate.”  The new zoning rules make vacant or undeveloped sites in M1 districts available for other light industrial uses to serve the needs of the nearby residents, according to its supporters. The Special Permit will require hotel developers in the restricted districts to go through a formal land use public review (ULURP) process.  Opponents of the measure, including hotel and real estate groups, argued that hotels are only a small portion of development in industrial areas and that new rules would hurt tourism. According to a recent analysis, the zoning change would eliminate the availability of 220 million square feet of as of right hotel construction space in the city.