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Land Use Reform: Critical to Industrial NYC's Future
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The title of an article published this week in City and State Magazine makes an arresting point -- U.S. Art And Manufacturing Are On The Rebound, But New York City May Not Have The Space. The article notes that expanding the City's manufacturing and industrial base can be a key strategy for addressing our widening income gap and quotes key industry leaders who say that their businesses and economic sectors could grow.
The City and State article presents the unfortunate reality for today's industrial and manufacturing sector - a possible revival of industrial jobs nationally may not come to New York City due to a lack of space. While it is certainly true that industrial space is "being gobbled up by a residential real estate market that is serving a wealthy global clientele willing to pay any price to have a tony New York City address," it is equally true that the current situation is a result of City land use policies that are in serious need of reform. The trends reported in City and State's article highlight specific challenges that manufacturers face and the need for broader reform. Speculation on industrial-zoned properties, as mentioned by the president of the Manufacturers Association of New York City, drives up rents, pricing out industrial businesses while simultaneously reducing the supply of available manufacturing space for those looking to expand.
The biggest threats to the remaining industrial and manufacturing businesses in New York are the limitations inherent in the current zoning code. Non-compatible, higher-paying uses, such as hotels and entertainment spaces, are allowed as-of-right in areas intended for industrial businesses. Vertical expansion is limited as a result of strict density restrictions on Manufacturing Zones. And Mixed-Use Zoning, meant to spur combined residential, commercial, and manufacturing areas, has become synonymous with Residential Zoning.
The current industrial and manufacturing zoning framework, written in 1961 and only slightly modified since, does not speak to our city's current economic development needs and real estate market reality. Hotels, big box retailers, and self-storage facilities do not provide a dense supply of quality job opportunities that meet our real economic development needs. But they are allowed as-of-right in manufacturing zones. The failure of the current zoning policy to adequately sustain the remaining industrial sector is clear in North Brooklyn, where properties like the Wythe Hotel and Level Hotel are being built in the center of the Greenpoint-Williamsburg Industrial Business Zone. The situation should be better in the Industrial Business Zones, which were specifically established to support concentrations of industrial and manufacturing uses. But while the IBZ's are a crucial programmatic tool, they have the same actual zoning language as other industrial areas. Both inside and outside of the IBZ's, the City lacks the zoning tools it needs to maintain space for industrial businesses and jobs.
The City Council's report, Engines of Opportunity, rightfully highlights these concerns and suggests the establishment of new zoning designations, including Industrial Employment Districts, to solidify the significant role that industrial manufacturers play in our communities and our citywide economy. New York City can and should have space for good industrial jobs now and into the future - but we will need new zoning tools in order to make that happen.