The second installment of Mayor Adam’s plan to update zoning, “City of Yes for Economic Opportunity,” is officially in motion as of March 6, 2024. Prepare for major changes, and read on for the breakdown.
With plans to boost business throughout the greater NYC area, this initiative includes 18 proposals which remove outdated restrictions and revitalize commercial spaces. Changes include allowing for businesses to operate on upper floors, introducing corner stores in residential areas, and revamping streetscape requirements.
These changes aim to address 4 primary goals:
- Making it easier for businesses to expand and find space close to customers
- Reducing obstacles for growing industries
- Delivering safe, business-friendly streetscapes
- Creating new opportunities for businesses to open
DCP Director Garodnick said in a press release, “For too long, small business owners have had to navigate a byzantine mix of outdated zoning rules that have stymied their growth and led to vacant storefronts in our neighborhoods. ‘City of Yes for Economic Opportunity’ will cut the red tape and provide the flexibility needed for our mom-and-pops, and our neighborhoods, to succeed. To have a modern economy that works, we need our zoning to meet the moment, and that’s what this proposal will do. We look forward to a robust public review process as we move towards a more prosperous city.”
The last zoning resolution passed in 1961, so NYC is long overdue for modernization. Updating zoning regulations means adapting urban infrastructure to its interior life — a change that will hopefully facilitate both efficiency and harmony in an already fast-paced city.
Expanding Businesses
Many outdated restrictions still apply to where businesses can locate or expand, limiting their potential for economic growth. City of Yes revises many of these limitations, simplifies district-based rules, and encourages business adaptation over time. The proposed changes include:
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- Vacant storefronts: Vacant retail spaces may be reoccupied, provided that the commercial use does not close for more than two years.
- Business types on commercial streets: The proposal will allow the same range of uses in C1 and C2 districts, match the range of uses allowed in C4 and C5 districts to those currently allowed in C6 districts, and remove distance from streetwall restrictions in C4, C5, and Special Purpose Districts.
- Small-scale clean production: Small-scale, clean production will be able to use up to 5,000 sq ft on the ground floor in C1 and C2 districts, and up to 10,000 sq ft on the ground floor in C4, C5, C6, and C7 districts, with no restrictions above the ground floor.
- Loading dock rules: Additional loading berths will no longer be required for a change of use in an existing building, allowing existing buildings to evolve more easily over time.
- Upper floor commercial activity: The proposal will allow commercial uses on the second story of all mixed buildings in C1, C2, and C3 districts, as well as low-density Commercial Overlay Districts. In C4, C5, and C6 districts commercial uses may occupy separate parts of the same story or locate above residences.
- Business zoning classifications: Use Group terms will be overhauled to better reflect modern commercial and industrial activities.
Supporting Industries
Current NYC zoning has rules for telegraph offices, but none for smartphone repair shops; it’s clear that commercial industries in the 21st century have evolved beyond what initial city planning could anticipate. The City of Yes proposal matches the needs of emerging industries with a host of new guidelines:
- Indoor agriculture: Indoor urban agriculture will be permitted in commercial districts to support sustainable food production.
- Life science companies: The proposal updates the use definition of laboratory to clearly include life sciences, and will allow commercial laboratories to co-locate with hospitals and universities, alongside non-profit research labs.
- Nightlife common-sense rules: Current zoning restricts dancing and live entertainment for certain eating and drinking establishments, despite the repeal of the Cabaret Law in 2017. The proposal will clarify the restrictions based on capacity instead of use.
- Amusement opportunities: Experiential retail businesses such as arcades, bowling alleys, etc. will be classified as “amusement or recreation facilities” or “amusement parks,” with new limitations and allowances.
- Home-based entrepreneurship: The proposal will remove limits on uses and size restrictions for home businesses, allowing them to expand in size up to 49% of floor area, or no more than 1000 sq ft.
Streamlining Streetscapes
Streetscape regulations are necessary to keep the built environment of NYC in harmony with the pedestrian experience. No two city streets are the same — therefore, planners must take many factors into account to preserve a neighborhood’s character. City of Yes intends to establish consistency among streetscaping rules, without compromising the case-by-case approach. The proposed changes include:
- Corridor design rules: A standardized approach to corridor design will be established for new buildings, with three district-determined tiers that align with local street character.
- Auto repair shop and pedestrian conflicts: Auto servicing businesses will be grouped into “light” or “heavy” shops, with applicable zoning restrictions per category.
- Micro-distribution deliveries: “Micro-Distribution Facilities” are a new use introduced by this proposal, emphasizing the need for small-scale distribution centers in commercial areas and replacing the "moving or storage office" use identified by the DOB to describe online grocery micro fulfillment centers.
Growing Opportunities
Beyond adapting to the present, City of Yes intends to plan for the future. Zoning can be a powerful tool for unlocking economic potential, and the proposals listed promote significant job and economic growth:
- Commercial space on residential campuses: Larger scale commercial spaces up to 15,000 sq ft will be allowed in Residence Districts on campus sites, after Community Board approval.
- Corner stores in residential areas: Up to 2,500 sq ft of retail, service, or office space will be allowed in Residential Districts, as long as the storefront is located within 100 ft of an intersection.
- Business waiver process: The proposal will introduce a new permit for retail/service, amusement, and production uses to reduce restraints for growing businesses.
- New zoning districts for future job hubs: The proposal also introduces a range of new job-intensive, non-residential zoning options.
- New M3A “Core” districts
- New M2A “Transition” districts
- New M1A “Growth” districts
- New C7 districts
Zoning changes can be tricky to navigate, and the City of Yes initiative introduces numerous regulations to decode. If you are looking for assistance understanding the new proposal, please reach out to Outsource Consultants, Inc. for expert guidance.
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