What Makes CD12 Unique?
Special Purpose District Zoning codifies incentives for development with the preservation of highly valued or unique elements that enhance urban living. For example, the scenic view easement is a zoning designation that protects NYC’s extraordinary view corridors across great distances of the urban landscape. Huge sections of Washington Heights and Inwood look outward across the Hudson or into the Bronx that should be highly valued. If tall buildings are built, a portion of this view “windfall” should go to adjacent property owners with the inclusion of affordable housing. This is not a new idea, it is why Grand Central Terminal remains and the buildings around it are much taller. What is the difference between this "solution", and one that "exacts" the cash value of a view of the Hudson in trade for stabilized affordable housing?
If and when things like this happen, "Who Cuts the Deal?"
Setting a successful climate for zoning change negotiations comes in one of two forms, 1) the Community Benefits Agreement, also definable in some instances as a Good Neighbor Agreement or development disposition agreement with a single site and developer, and 2) the Memorandum of Understanding. Both require corporate entities as signatories to an economic formula based on sharing or dividing a set of anticipated resources and revenues. The product of the formula is at its best when it is economically self-renewing and includes an immediate “payout” often in the form of a tangible capital improvement. A pre-defined set of services, as well as, a general outline of the baseline responsibilities of signatories produces minimum and maximum “upset” figures.
Washington Heights and Inwood should start talking about the kind of corporate entity required to conduct negotiations coupled with the quality of governance needed.
Public Partnership: Add TIF to Inclusionary Zoning
Programs such as tax increment financing (TIF) pledges the increase in real property taxes to pay the costs of associated public investment. For example, if a housing development project will generate $10 million in additional tax each year, that $10 million is pledged for the same period required to cover a $100 million bond to secure a housing trust fund for a community district. In other words, zoning changes the taxable basis and it can be altered as an incentive to act, with resources prevent, or mitigate damage.
Looking for ideas on how this could happen?
This is an "either/or" condition for all Manhattan real estate. Either it is full market rate, leading to tax increment bond financing for local housing affordability programs, or it is fully stabilized with a permanent stock of affordable housing providing a minumum of 20% of units or with bonus floor area more based on local need and AMI.
