E. 94th St. Tower Project Reaches Deal To Boost Affordable Units & Lower Height

A rezoning plan for a residential tower that developers wants to erect on E. 94th St. has new parameters, which boost the number of affordable housing units in the building and knock 70 feet off its height.

It’s the result of an agreement negotiated between Council Member Julie Menin and the project’s principal developers, Freidland Properties and the Chapman Group.

The developers initially wanted to erect a 524 ft. tower, but backed down after facing pockets of opposition from certain community members. Even at its now-reduced height, the Yorkville skyscraper will be among the tallest buildings on the UES.

In an advisory recommendation issued back in November, Community Board 8 had given the project a tentative thumbs-up, accompanied by a long list of proposed changes. Indeed, these included cutting its height and adding more affordable housing.

The developers had paid $37.5 million for two parking garages that stood on the site back in 2016. The parcel used to be zoned for manufacturing.

The rezoning was formally stamped by the New York City Council’s Subcommittee on Zoning and Franchises, and will be the first Upper East Side development to participate in the Mandatory Inclusionary Housing (MIH) zoning program.

”We refused to accept that lowering the height and increasing the number of affordable units are mutually exclusive,” said Council Member Menin. “By securing this unprecedented agreement, we are ensuring that this development aligns with the priorities of the Upper East Side community and Community Board 8.”

These affordable units will reportedly encompass studio, one-bedroom, and two-bedroom apartments. After the deal, the affordable units now comprise 30 percent of all units in the building, up from its initial 25 percent.

In a further nod to locals worried about potential noise pollution that the ongoing construction will generate, a “Community Construction Task Force” will be convened to address noise mitigation strategies for the project. It will reportedly be composed of concerned locals, Community Board 8 members, and Menin.

Other elements of the deal include a $150,000 developer donation that will be directed towards improvements and “beautification enhancements” at James Cagney Plaza, located on E. 91st St.

Menin said that the developers agreed to make “efforts” to install a childcare facility on the ground floor of the development, and that the developers will “work with City agencies to pursue housing vouchers” for residents that need affordable units.

Crucially, the developers have also negotiated an agreement with 32BJ, who will represent the building’s service workers. Council Member Menin also noted that they’re holding out on bargaining with the New York City District Council of Carpenters, which would be predicated on a replacement of the now-expired 421-a tax break, which was granted to developers that build affordable housing. Some local elected officials are pressing the New York state legislature to renew some version of the tax break.

It seems that the carpenter’s union is optimistic about the rezoning. “It takes guts, a community-first focus, and leadership to get this done and thankfully Council Member Menin has all three,” said Joseph Geiger, the Executive Secretary-Treasurer of the organization. “This project is the kind of model we must follow if we are to truly solve both the housing and affordability crisis so that New York City remains the greatest city in the world.”

Valerie Mason, the chair of Community Board 8 and the president of the East 72nd Street Neighborhood Association, expressed happiness with the updated plan as well: “Council Member Julie Menin and her team have succeeded both in increasing the number of affordable apartments to be included in the building while at the same time reducing the building’s height. Not many districts can boast this double-sided win.”

The rezoning plan, initially announced in Nov. 2023, was hailed at the time by Borough President Mark Levine. He said that he viewed the project, and others similar to it, as a vital part of his mission to transform long-dormant manufacturing blocks into residential hubs. In doing so, Levine said that he hoped to battle the persistent affordable housing shortage afflicting the city, which he notably called the “biggest crisis facing the city” in his recent “State of the Borough” address on March 3.