The de Blasio administration and other top city officials released earlier today the latest plan to preserve some fashion production elements in the struggling Garment District.
The plan includes zone changes, incentives to preserve manufacturing space in the Garment Center in Midtown Manhattan, supports a public-private partnership to acquire a building dedicated to garment production and institutes a special permit to curb hotel development in the district.
Administration officials say the plan follows recommendations from the Garment District Steering Committee. The city halted controversial zone change proposals for the Garment District after the release of the steering committee report last year.
The zoning changes associated with the latest plan will begin the city’s public review process on June 11.
“After decades of previous efforts, the de Blasio administration has delivered a plan, developed in collaboration with industry stakeholders, elected leaders and the local community, to stabilize and preserve New York City’s historic fashion industry in the Garment District for years to come,” said NYCEDC president and CEO James Patchett.
The plan creates the Garment Center IDA program, a tax incentive package through the New York City Industrial Development Agency that would allow property owners to offer long-term, affordable leases to fashion manufacturers, including companies that provide a service that supports the garment production supply chain.
The program requires property owners to offer 15-year leases with a maximum gross rent of $35-per-square-foot, which includes utilities and other expenses, and are subject to a penalty schedule and annual compliance review. In exchange, the participating property owners will receive discretionary tax benefits from the NYCIDA that range from $1- to $4-per-square-foot of manufacturing space that ranges between 25,000 square feet to 100,000 square feet. City officials say the NYCIDA currently has commitments to preserve 300,000 square feet of production space through this program.
The de Blasio administration has committed up to $20 million in city funding to facilitate the acquisition of a building in the Garment District. The commitment requires a public-private partnership with a non-profit organization to operate and manage the building as a dedicated production space. The city expects to release a request for expressions of interest on this project in September 2018.
The plan includes amendments to existing zoning and will be presented for certification into the city’s Uniform Land Use Review Procedure (ULURP).
The proposed targeted zoning changes would, if approved:
• Maintain existing manufacturing and commercial zoning;
• Lift the 1:1 preservation requirement of production space that the administration charges has proven ineffective in protecting garment manufacturers;
• Limit the development of new hotels through a hotel special permit;
• Allow property owners to improve their properties and
• Improve neighborhood character through new height, setback and signage regulations.
A host of city political leaders and representatives of the fashion industry expressed support for the new plan.
“After years of effort, we’ve got a plan that will preserve the heart and soul of the city’s iconic Garment District. We still have a long public process ahead of us and I’m looking forward to a collaborative process that includes feedback from all stakeholders, but I am confident that working together we will ensure that New York City remains the fashion capital of the world,” says New York City Council speaker Corey Johnson.
“This plan provides needed investments in the fashion manufacturing sector, while at the same time removing antiquated zoning restrictions that have simply failed to stop the exodus of jobs overseas,” says Barbara A. Blair, president, Garment District Alliance. She adds, “This plan offers the best opportunity yet to bolster the economic diversity of the area while offering a long-term sustainable solution for fashion manufacturers.”
The fashion industry is a significant contributor to the city’s economy, employing more than 5% of the city’s total workforce. Today, there are approximately 1,600 garment manufacturing firms citywide, and about 25% of these businesses, or approximately 400 firms, are in the Garment District. New York City apparel manufacturing employment has fallen by 83% during the period of 1990 to 2016, according to the US Census and in recent years a number of garment/apparel firms have relocated to other areas of the city.
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