Special Permits Could Be Required to Develop a Hotel in New York City

"The [New York] Department of City Planning on Monday released its long-awaited proposal for requiring special permits for new hotels and expansions throughout the city," reports Kathryn Brenzel.

The permitting system would be designed to curb projects that cause 'conflicts or create nuisances,' according to Brenzel. The permitting system "would apply to all zoning districts where hotel construction is permitted as-of-right, and would take the place of special permits already required in Midtown East, the Garment District and light manufacturing zones. No new hotels have been built in light manufacturing zones since 2018, when the city started requiring permits in those areas."

Included in the draft scope of work released by the Department of City Planning are some brutal facts about the state of the hotel industry in New York during the pandemic. "The city estimates that between January and September 2020, 135 hotels and 39,244 rooms have closed, representing declines of 20 and 31 percent, respectively," reports Brenzel. Despite the industry headwinds, 30,331 hotel rooms were "either under construction or in the late planning stages as of October."

The article mentions opposition to the proposed permitting system from Real Estate Board of New York President Jim Whelan, but doesn't mention political support for the new system outside of the Mayor's Office. As noted by Brenzel, in November the de Blasio administration abandoned plans to implement special permits for hotel construction in Manhattan south of Union Square to focus on the citywide regulations. A separate article by Mark Hallum tells that story.