It’s an appeals board, not a magic wand.
The big news Tuesday was that Zohran Mamdani will be New York City’s next mayor.
The other big news was that member deference, the tradition of the City Council voting based on the opinion of the local member on land use issues, is dead.
Except, it isn’t completely dead.
Voters approved three ballot measures that weaken the City Council’s hold on certain housing project approvals.
One of the proposals creates housing fast-track options that bypass City Council approval. Another creates a condensed review process for “modest” housing projects that does the same. Those proposals straightforwardly free projects from member deference, at least more so than the third.
The third proposal creates a three-person appeals board, consisting of the mayor, City Council speaker and appropriate borough president, that can reverse the City Council’s rejection of a project that would result in affordable housing.
The appeals board could mean some developers will pursue projects in districts that they otherwise would have avoided due to opposition from the local council member. But success in those districts would rely on winning over two out of three of the people on the appeals board. The three members of the appeals board most likely aren’t going to rubber-stamp projects — not if they want to have a good relationship with individual members, not to mention the Council at large.
Perhaps some City Council members will be given more deference by the appeals board than others. But with this dynamic, it seems like it is in the best interest of the developer and local Council member to reach an agreement rather than bring the appeals board into the fray.
“I don’t think two of the three parties on the appeals board are going to make these decisions lightly,” Rachel Fee, president of the New York Housing Conference, told me recently.
We won’t know for sure until these changes are implemented. Developer Bruce Teitelbaum cautioned today that these changes aren’t a “silver bullet.”
Keep an eye out for more coverage on these ballot measures this week!
What we’re thinking about: I still want to hear from you about the election! Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Vornado Realty Trust is in talks with prospective tenants to anchor its tower that is planned for the former Hotel Pennsylvania site, known as Penn 15, my colleague Elizabeth Cryan reports. Perhaps one of the tenants will take the plunge if Vornado rebrands the tower (including, or exclusively, its name)?
Elsewhere in New York…
— Mayor-elect Zohran Mamdani on Wednesday announced who will lead his transition team. Grace Bonilla, president and CEO of United Way of New York City; Melanie Hartzog, president and CEO of the nonprofit New York Foundling; Lina Khan, former Federal Trade Commission chair; and Maria Torres-Springer, former First Deputy Mayor, will serve as transition co-chairs. Elana Leopold, a political strategist, will serve as executive director of the transition team.
— Democratic candidate Shirley Aldebol ousted Republican incumbent Council member Kristy Marmorato, who represents Throgs Neck, Pelham Bay, Morris Park and City Island in the Bronx, Gothamist reports. Marmorato was the sole Republican Council member in the Bronx.
— ICYMI, New Jersey elected Democratic Rep. Mikie Sherrill as its next governor.
Closing Time
Residential: The top residential deal recorded Tuesday was $16.8 million for a 6,200-square-foot, single-family home at 48 East 81st Street on the Upper East Side. Sarah Williams and Peter Stack of Societe Real Estate had the listing.
Commercial: The top commercial deal recorded was $17.1 million for three properties in Kingsbridge. They include 5760-5790 Broadway and 3632 Kingsbridge Avenue, which is across the street. Fedricson Equities sold the properties to an LLC tied to Leonid Yevdayev.
New to the Market: The highest price for a residential property hitting the market was $11.9 million for a nine-room co-op unit at 19 East 72nd Street in Lenox Hill. Serena Boardman with Sotheby’s International Realty has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 45,195-square-foot, 54-unit project at 913 Pierce Avenue in Morris Park. Victor Han filed the permit on behalf of Vlash Parubi.
— Matthew Elo
