(The views and opinions expressed in this blog are strictly those of the author, Daniel Lesser, president and CEO of New York City-based LW Hospitality Advisors)
On April 23, New York City’s Planning Commission commenced a public review process for the M1 Hotel Text Amendment, which would require new hotels located in certain manufacturing districts to acquire a discretionary special permit. The proposed zoning amendment will be reviewed by the city’s community boards and the five borough presidents, and it is expected to be voted on by the Planning Commission and city council this year.
The proposed amendment would apply to all new transient hotels in all M1 zoning districts throughout the city, with several exceptions. Furthermore, transient hotels operated either by the city or the state or organizations under contract with the city as homeless shelters, are proposed to be exempt from the permit requirement.
The hotel and tourism industries are a vital part of the city’s economy, generating tens of thousands of jobs, US$2 billion in tax revenue, and over US$64 billion in economic impact during 2016. Recently my firm, LW Hospitality Advisors (LWHA), was retained by Gene Kaufman, principal of Gene Kaufman Architect, to prepare a comprehensive M1 Zoning Hotel Market Analysis. The report identifies the potential unintended economic and social impacts for New York City if the proposed special permit to limit new hotel development in M1 zoning districts is adopted, and concludes that the current plan to adopt the special permit is misguided and will reduce potential long-term economic and social benefits to the city.
Our report determined that if the special permit is granted, the city’s economy would be denied revenue generated by projected hotel development between now and 2028, including: US$55.5 billion in economic impact, US$37.1 billion in direct visitor spending, US$25.6 billion in wages and salaries, 202,409 jobs, US$11.7 billion – including US$4.24 billion in local taxes – generated by tourism, and household tax savings of US$1,290 resulting from the tourism industry.
Read the rest at Lesser’s blog: “What’s the Deal”