A Crain’s article claims Barney Greengrass’ rent could go up as a result of a new local rezoning proposal. Proponents say the article has its facts wrong.
The city has drafted a proposal to rezone much of the Upper West Side to keep the neighborhood’s storefronts small. The plan would make sure that most stores take up less than 40 feet of sidewalk space, thus keeping big box stores from gobbling up retail space and keeping the sidewalks vibrant (more detail from us here and here’s the resolution passed by the community board). It’s been hailed as a way to save mom-and-pop stores — that’s probably an overstatement, given that small stores face a lot more challenges than zoning can fix. But the plan has enjoyed strong support in the community and Community Board 7 passed it 37-0. The City Council still needs to vote on it.
That said, it certainly has its detractors, particularly in the real estate world. And it could cause some unintended consequences. An article this week in Crain’s argues that Upper West Side stores that are in larger retail spaces (over 40 feet wide) could see their rents rise as much as 20% as landlords place an even higher value on those spaces (because current spaces that are more than 40 feet would be “grandfathered” in).
“[M]ore than two dozen large (and beloved) mom-and-pops could face skyrocketing rents when their outsize footprints are grandfathered and become coveted by the very chain businesses that rezoning supporters want to curtail.”
Among the stores that could be affected are Popover Cafe, Barney Greengrass and Albee Baby Carriage, the piece says.
But some proponents of the plan say the article gets the facts wrong and relies on sources who are protecting their own interests in the real estate community. City Councilwoman Gale Brewer, who called on the city to create the zoning amendment, sent us an email responding to the article:
“The Crain’s article’s focus is misguided. Our proposal is not going to exacerbate the shortage of large spaces but, rather, it’s going to protect the small spaces that might otherwise fall victim to assemblage. There’s really no shortage of large spaces in the broader area – the urban renewal areas of Amsterdam and Columbus, as well as Broadway, have an abundance of spaces >40’ frontage. But the proposal will ensure that hundreds of small storefronts along the more historic stretches of Amsterdam and Columbus will remain accessible to long-standing and new small businesses. A reduced supply of these smaller storefronts would have a much greater negative impact on the small businesses in the area than a fixed supply of larger storefronts.
The Crain’s article is also full of factual errors. Three of the four establishments called out are essentially irrelevant to their point: “Unintended victims could include Upper West Side institutions like Barney Greengrass and Albee Baby Carriage Co., which have been in business on Amsterdam Avenue for 100 and 80 years, respectively; longtime cafés, funeral homes and hardware stores; and Mediterranean- inspired mainstays such as Columbus Avenue’s Isabella’s and Amsterdam’s Gennaro.”
Albee Baby and Gennaro are on the east side of Amsterdam in the West Side Urban Renewal Area/WSURA (reflective of the reality that there are plenty more larger storefronts in the WSURA, where the built character is very different), and the WSURA is not included in our proposal. Barney Greengrass is measured at 40′. Isabella’s is the only establishment they call out by name that would actually be made noncompliant, and our proposal is bringing them into commercial compliance by giving them the overlay they don’t currently have.”
Mel Wymore, a former community board chairman and current City Council candidate, also told us the benefits of the plan far outweigh the risks.
“In the end, we have to weigh the advantages vs. the potential for unintended consequences. We don’t know how the market will shift for the larger spaces, but we do know there’s been a growing trend toward storefront conglomerations that deaden our streets. This zoning proposal will stem that trend.”
Take our poll and let us know what you think:
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The proposed zoning provides no advantages or protections for small businesses. It doesn’t protect them against increases in rent or evictions. Protection against assemblage will not stop large supermarket class businesses in spaces larger than 6000SF that are exempt from the regulation from moving in. All the zoning does is keep storefronts small, so they match the “character” of the neighborhood. That doesn’t mean a small retailer gets the space. As for banks, the proposed zone on Amsterdam Avenue has no banks. Twenty five foot limits will make Amsterdam and Columbus Avenues an ideal place for ATM storefronts creating the feared deadened streets. Columbus Square has all of the characteristics of the new zoning except for banks and no small businesses. Landlords will always offer their properties to higher paying tenants and the small retailer will always lose. The smaller retailer will have to pay more to stay in the game. More retail space is needed not storefrontage limitations.