Community Stymied Again in Effort to Rezone Seaport Area

For the second time this year, the Department of City Planning in July disappointed South Street Seaport residents who have long been trying to protect the architectural fabric of their historic, low-rise neighborhood.

At the eleventh hour, the department held off from starting a public review process for a rezoning proposal that would lower the allowable building height in the area.

It is the latest chapter in the community’s 18-year struggle to prevent Milstein Properties from constructing a tall building on a block-long site it owns at 250 Water St., which is now a parking lot.

Tired of the long battle, Community Board 1 for the past two years has worked quietly with City Planning on the proposal to rezone an area bounded by Pearl, Dover, South and Fulton streets, setting a maximum building height of 120 feet. And the City Planning Commisson was scheduled to "certify" the proposal and launch the review process on July 22 at 1 p.m.

"We were assured by City Planning and City Hall that everything was in order," said Gary Fagin, who until last month was the chair of CB1’s Seaport/Civic Center Committee. "Then at 12:30, Madelyn [CB1 chair Madelyn Wils] received a phone call that we should not submit the plan, that the city has to do a financial assessment."

Fagin and others promoting the proposal believe that Milstein lobbied behind the scenes to block the plan.

"If there are any opinions contrary to this rezoning, we want those comments aired in the sun, not arm-twisting in backrooms by powerful developers," Fagin said.

James Yasser, a spokesman for Milstein, did not return phone calls seeking comment.

Robyn Stein, a spokeswoman for City Planning, said that certification was delayed "because there were environmental issues we had to get information on." But the agency declined to discuss what those issues were.

In January, certification was delayed ostensibly to allow the new City Planning commissioner, Amanda Burden, to review the proposal.

The city’s Landmarks Preservation Commission must approve any construction in the historic district, but zoning rules still allow large-scale development.

Nine times in the last 18 years, community leaders rallied to block Milstein from moving ahead with building projects up to 43 stories tall—which zoning rules would have allowed but the Landmarks Commission rejected.