Soil testing underway at the northeast corner of 3rd Avenue and St. Mark's Place

[Photos by Steven]

Late last week, we spotted a Davey Drill in the empty lot on the northeast corner of St. Mark's Place and Third Avenue... where workers were taking soil samples ahead of the controversial new office building planned for the space...



Where we left off: On March 4, the City Planning Commission held a public meeting to discuss the air-rights transfer for the 10-floor building ... at which time local City Councilmember Carlina Rivera submitted joint testimony with Assemblymember Deborah Glick and State Sen. Brad Hoylman opposing the plan. Rivera holds the key vote when the proposal eventually comes before City Council.

This item won't likely advance any further for the time being. As the Village Preservation pointed out, the city approval processes have shut down for the time being during the coronavirus outbreak. The City Planning Commission still needs to cast its vote (all expect an approval) before it heads to City Council.

With the air-rights transfer, developer Real Estate Equities Corporation would be allowed to build 8,386 square feet larger than the current zoning allows.

Regardless of an extra 8,000 square feet, the project will continue.



Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

• New building plans revealed for 3rd Avenue and St. Mark's Place

• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Saturday's parting shot

St. Mark's Place and Third Avenue tonight...

Carlina Rivera states her opposition over plan to transfer air rights for new St. Mark's Place office building

[A rendering of 3 St. Mark's Place]

Local City Councilmember Carlina Rivera yesterday joined the chorus of opposition to the air-rights transfer for the new office building planned for the northeast corner of St. Mark's Place and Third Avenue.

To date, Rivera, who holds the key vote when the proposal comes before City Council, had previously expressed concerns about the project, but hadn't gone as far as officially opposing it.

During yesterday's City Planning Commission hearing, Rivera submitted joint testimony with Assemblymember Deborah Glick and State Sen. Brad Hoylman, which read in part:

"This development would clearly be out of context with the landmarked 4 St. Mark’s Place, as well as the surrounding street scape and character. It's clear that the developers, in the wake of numerous concerns raised by neighborhood groups, Community Board 3, several members of the Landmarks Preservation Commission, and elected officials, have not proposed or addressed any serious 'appropriate conditions and safeguards' that the 74-79 permit states should be considered in order to 'minimize adverse effects on the character of the surrounding area."

St. Mark's Place is the gateway to the East Village - a globally recognized center of music, art and culture. This project fell short of the community's expectations and the neighborhood it leads to.

That’s why I urged the City Planning Commission to reject it. https://t.co/iZjps2UZ5Z

— Carlina Rivera 利華娜 (@CarlinaRivera) March 4, 2020

The City Planning Commission will cast their vote at a later date as part of the city’s Uniform Land Use Review Procedure. They are expected to approve the plan to transfer air rights from 4 St. Mark's Place to the new development across the street at 3 St. Mark's Place. In issues such as this, City Council usually follows the lead of the local Councilmember.

Andrew Berman, executive director of the Village Preservation, has long been opposed to this plan. He said that he was pleased by Rivera's decision.

"We are hopeful that her statement ... will be followed by a no vote in the Council and a call to her colleagues to do the same," Berman said in an email. "We have said from the beginning that this proposal to increase the size of the planned tech office tower at the 'gateway to the East Village' is wrong, and would only serve to accelerate the spread of Midtown South and Silicon Alley to this neighborhood."

The Village Preservation and more than a dozen residents also spoke out against the plan yesterday.


[Photo yesterday via Village Preservation]

With the air-rights transfer, developer Real Estate Equities Corporation (REEC) would be allowed to build 8,386 square feet larger than the current zoning allows.

Regardless of an extra 8,000 square feet, the project will continue. Per Gothamist:

At Wednesday's public hearing, the project's architect Morris Adjmi emphasized a building of a similar height size could be built as-of-right, saying, "one could build this building without a special permit, without transferring any air rights, and it is 22 feet taller at the street wall and also more or less the same height overall."

A rep for the developers, Adam Taubman of the law firm Kramer Levin, also said at the hearing the currently vacant lot would see construction whether or not the permit is approved.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

• New building plans revealed for 3rd Avenue and St. Mark's Place

• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

City Planning Commission holding public hearing today on air-rights transfer for 3 St. Mark's Place

[EVG file photo]

--

Updated 5 p.m.
Local City Councilmember Carlina Rivera came out against the transfer today.

--

The City Planning Commission is holding a public hearing today on the application to transfer air rights to allow the pending office building at the northeast corner of Third Avenue and St. Mark's Place to grow 20 percent larger than the current zoning allows.

As you likely know, a 10-floor office building is in the works for 3 St. Mark's Place. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage.

This marks the second stage for the application. In round one, the Landmarks Preservation Commission voted to support the plan this past June, and issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution. The opposition to the application included Manhattan Borough President Gale Brewer, State Sen. Brad Hoylman and Assemblymember Deborah Glick, as well as Community Board 3 and other community groups, including Village Preservation. (Read about their efforts here.)

Stage two's route as part of the city’s Uniform Land Use Review Procedure will ultimately end up before City Council, who will have the final vote at a future date.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. Their development plans call for a 68,224-square-foot building with eight floors of office space, a fitness center, roof deck and retail.


[A rendering of 3 St. Mark's Place]

REEC is reportedly eyeing rents in the area of a Midtown-esque $150 per square foot.

Today's hearing is in the basement concourse of 120 Broadway between Cedar and Pine. The festivities start at 10, though this is the last item on the agenda. No word yet on an exact time.

Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

• New building plans revealed for 3rd Avenue and St. Mark's Place

• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Latest Post 'exclusive' is a story we reported on 11 months ago

In an "exclusive," the Post reports:

A developer paid an ethically tarred City Hall lobbyist — and the law firm that defended Mayor Bill de Blasio against pay-to-play allegations — to press the administration for permission to expand a 10-story office tower in the East Village, The Post has learned.

The Landmarks Preservation Commission, whose 11 members are all mayoral appointees, approved plans by Real Estate Equities Corp. to enlarge a building at 3 St. Marks Place that’s 20% larger than limits allowed by the area’s current zoning laws.

The plan was approved in June, although the $200,000 the developer paid to de Blasio lobbyist James Capalino and the law firm Kramer Levin Naftalis and Frankel LLP, were not reported at the time.

Correct, it was not reported at the time in June 2019 — it was actually reported several months earlier, on Feb. 13, 2019 in an EVG piece titled "The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place."

Anyway! The Post article includes several quotes about the project, now making its way through the city’s Uniform Land Use Review Procedure (ULURP). Here's local City Councilmember Carlina Rivera, who holds the crucial vote on the special permit to transfer air rights from the landmarked 4 St. Marks Place to increase the size of this development:

“I continue to share the same concerns that many in our community have brought up, including Community Board 3, regarding this project and its impact on the surrounding area, and I have not seen anything new presented that would make me consider it favorably as it proceeds through ULURP.”

CB3 hearing tonight about the air-rights transfer for new office building on St. Mark's Place

Tonight, CB3's Land Use, Zoning, Public & Private Housing Committee is holding a public hearing on the special permit to transfer air rights from the landmarked 4 St. Marks Place to increase the size of the proposed office building across the street.

As you likely know, a 10-floor office building is in the works for the northeast corner of Third Avenue and St. Mark's Place. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House to add more square footage, which is 20 percent larger than current zoning allows.

This marks the second stage for the application. In round one, the Landmarks Preservation Commission voted to support the plan in June, and issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution. The opposition to the application included Manhattan Borough President Gale Brewer, State Sen. Brad Hoylman and Assemblymember Deborah Glick, as well as Community Board 3, Village Preservation and other community groups.

Stage two's route as part of the city’s Uniform Land Use Review Procedure eventually includes a trip to the City Planning Commission and City Council, who will have the final vote at a future date.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. Their development plans call for a 68,224-square-foot building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail.


[A rendering of 3 St. Mark's Place]

REEC is reportedly eyeing rents in the area of a Midtown-esque $150 per square foot.

And these types of rent and development are the reasons that Village Preservation remains opposed to the plan. As they write:

[W]e do not want to see an even larger tech-related office tower rising at this location. This project has already resulted in the demolition of a nearly 200 year old house containing residential units. The replacement of low-rise, historic, and often residential buildings in this area south of Union Square by high-rise office towers is part of the city’s plan for this area in the wake of the approval last year of the Mayor’s 14th Street “Tech Hub,” with the support of Councilmember Carlina Rivera.

Tonight's CB3 committee starts at 6:30 p.m. at the Meltzer Senior Center, 94 E. First St. between Avenue A and First Avenue.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Financing comes together for the office building planned for the gateway of the East Village

Financing comes together for the office building planned for the gateway of the East Village

[Photo from yesterday]

All has been quiet on the northeast corner of Third Avenue and St. Mark's Place since workers cleared the lot in late summer of the assemblage of buildings that housed Korilla BBQ, the Continental and McDonald's, among other businesses.

For the foreseeable future, the RIP ST. MARKS message, which arrived over the summer on the west-facing wall of 5 St. Mark's Place, will continue to greet passersby.

As you likely know, a 10-floor office building with ground-floor retail is in the works here. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage, a move that has plenty of critics.

In June, the Landmarks Preservation Commission voted to support the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the Morris Adjimi-designed building. Those meeting dates have not yet been made public. (This Zoning Application Portal provides a project status. The most recent activity by the developer: filing the Land Use application on Oct. 3.)

Meanwhile, the financial elements are coming together for the project.

This press release — citing square footage even though it hasn't been determined — landed in our inbox last Friday:

Madison Realty Capital (MRC) has provided a $48 million senior loan for the funding of a $79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place ...

Hana Financial Group, a leading South Korean financial services company, provided Real Estate Equities Corporation (REEC), an experienced local developer with an additional $31.1 million of mezzanine financing to fully capitalize the project.

REEC’s development plans call for a 10-story, 68,224-square-foot modern boutique office building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail.

The property is well-located at the corner of St. Mark’s Place and 3rd Avenue in a section of Manhattan’s East Village that has seen significant growth in demand for quality office space from a mix of tech, finance, law, and family office tenants in recent years.

The site is adjacent to 51 Astor Place, a 400,000-square-foot office and retail asset developed by Minskoff Equities that is home to anchor tenants IBM Watson and St. John’s University, in addition to a strong retail roster that includes Shake Shack, Flywheel, Bluestone Lane and Orange Theory.

In reporting on this financing, The Real Deal noted:

The developers will be eyeing rents in the area of $150 per square foot. Such figures were once only seen in the most expensive locations in Midtown but now are commonplace for newly constructed office buildings in areas like the Meatpacking District, Soho and Greenwich Village.

[A rendering of 3 St. Mark's Place]

Madison Realty Capital, who provided the senior loan, is a familiar name for some EV residents. In the fall of 2015, they loaned $124 million to Rafael Toledano, a then 25 year old with no track record as a landlord so that he could buy a portfolio of 15 buildings, mostly in the East Village. He eventually defaulted on Madison's loan.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

What's left of the northeast corner of 3rd Avenue and St. Mark's Place

If the headline was a question, then the answer would be not much.

A look through the handy blogger portals on the plywood reveals the scattered remains of the northeast corner of Third Avenue and St. Mark's Place... the buildings that previously housed Korilla BBQ, the Continental and McDonald's are gone. (No word on what finally happened to the Continental's 6-shots-of-anything-for-$12 signage that was still intact as of last Thursday.)




[Photo yesterday by Derek Berg]

And with the demolition of the buildings, the RIP ST. MARKS message on the west-facing wall of 5 St. Mark's Place is now fully visible from across the street...



As you likely know, a 10-floor office building with ground-floor retail is due here. The total size of this new building has yet to be determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage, a move that has had its critics.

In June, the Landmarks Preservation Commission voted to support the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the Morris Adjimi-designed building. Those meeting dates have not yet been made public.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

The disappearing northeast corner of 3rd Avenue and St. Mark's Place

Workers continue to demolish the northeast corner of Third Avenue and St. Mark's Place... the building that previously housed Korilla BBQ is about half of what it used to be (the building that housed the Continental next door is still standing) ...



... you can catch a glimpse of what's left behind the construction shroud...



As you likely know, 3 St. Mark’s Place, 23 and 25-27 Third Avenue are coming down to make way for an office building with ground-floor retail.

The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage to their office building, a move that has had its critics.

In June, the LPC ultimately lent its support to the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the size of the Morris Adjimi-designed building.


[The proposed 3 St. Mark's Place as seen from Astor Place]

Meanwhile, as you may have noticed, someone recently wrote an obituary on the west-facing wall of 5 St. Mark's Place...





RIP St. Mark's...



This wall was once home for years to the John Spacely "Gringo" mural... from 1983 to the early 2000s ...


[Image via]

And a view from 1983 via the "Lower East Side: Back In The Days" Facebook group...



Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

Report: LPC approves transfer of air rights across St. Mark's Place

[The proposed 3 St. Mark's Place as seen from Astor Place]

As expected on Tuesday, the Landmarks Preservation Commission (LPC) approved developer Real Estate Equities Corporation's (REEC) plan to transfer air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add square footage to their office building coming to the northeast corner of Third Avenue and St. Mark's Place.

As previously reported, REEC wants to buy $4 million in air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place. According to terms of the deal, 5 percent of the $4 million — $200,000 — would go to maintaining No. 4, whose history includes being home to Alexander Hamilton's son and Trash & Vaudeville. The circa-1831 building was recently privy to a full gut renovation over the course of two years.


[4 St. Mark's Place as seen in January]

Here's Curbed with coverage from Tuesday:

LPC commissioners had reservations about the proposal, but ultimately relented and gave it the green light to ensure the continued maintenance of the Hamilton-Holly House.

“This is an important building to get right and I think it’s a tradeoff that we’re talking about,” said Frederick Bland, LPC vice chair, during the Tuesday vote. “We’re going to have that building, so let’s have the building with the landmark.”

Commissioners didn’t have say over the design of the building because it isn’t within a historic district; instead, they were tasked with reviewing restoration plans for the landmark and determining how “harmonious” a specific sliver of the new building created out of the air rights exchange is with the Hamilton-Holly House.

Gothamist was also at the meeting, and pointed out the opposition to this plan:

All told, the commission said it had received 390 emails campaigning against the project.

Despite that, of the 11 commissioners, only one voted against the transfer of air rights. Among the conditions that must be met for the city to grant the air rights is that the project must have a “harmonious relationship” with the landmarked site.

“I just can’t seem to wrap my head around this,” said Michael Goldblum, the commissioner who voted against the application. “The historical context of the landmark was a continuous row of three-to-four story buildings. That is the context in which this landmark has been seen for decades, at the very least.”

Goldblum added that he could not see how a building of this scale “could be deemed as a positive enhancement to the landmark.”

Up next: The project now moves before the City Planning Commission as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say.

Even if the LPC had rejected the plan, REEC's office building with ground-floor retail would still happen — only without the extra square footage from the air-rights deal.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Air rights transfer to make 3 St. Mark's Place larger returns to the Landmarks Preservation Commission today

Updated 6/19: The LPC "reluctantly" approved the plan, per Curbed.

The Landmarks Preservation Commission (LPC) will review — and possibly vote on — a revised application today to allow an air rights transfer from 4 St. Mark’s Place across the street to a planned new office building on the northeast corner of St. Mark’s Place and Third Avenue.

As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House to add square footage to their office building.

In April, the LPC asked REEC reps to alter their proposal to incorporate the commission’s recommendation that they lower the structure’s first setback to better align with the St. Mark’s Place street wall, among other items, as Curbed reported at the time.

And here are some updated renderings from the latest application (PDF here) ...





The proposed air rights transfer must be approved by the Landmarks Preservation Commission, the City Planning Commission and ultimately City Council.

The Village Preservation, who have lobbied against the transfer, noted the following about the approval process in an email on Friday: "As the [LPC and City Planning Commission] are controlled by appointees of the Mayor, we expect them to likely approve the plan. Which means the final decision will likely come down to the Council, which will defer to local Councilmember Carlina Rivera for their decision."

During the April LPC meeting, Jeremy Unger, Rivera's spokesperson, voiced skepticism of the precedent the project could set for the East Village and other neighborhoods, according to Curbed.

Community Board 3, State Sen. Brad Hoylman and Assemblywoman Deborah Glick have all spoken out against the bulk waiver.

Regardless of the outcome, REEC will still be able to build a slightly less bulky mixed-use office building with ground-floor retail.



Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Workers shrouded the exterior here on the northeast corner of Third Avenue and St. Mark's Place last week as demolition enters the final phase.

As previously reported, 3 St. Mark’s Place, 23 and 25-27 Third Avenue are coming down to make way for an office building with ground-floor retail.





The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more floors and square footage to their office building, a move that has its critics, including Community Board 3 and State Sen. Brad Hoylman and Assemblywoman Deborah Glick, who reportedly called on the Landmarks Preservation Commission to deny the bulk waiver.

REEC has already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner. If the air rights deal is ultimately OK'd, then the Morris Adjimi-designed building at 3 St. Mark's Place could bulk up to 10 stories.

Yesterday, the Daily News looked at the lobbyists tied to the project — those who happen to have connections with Mayor de Blasio. (We explored this angle back in February.)

Andrew Berman, executive director of Village Preservation, told this to the News:

"The mayor’s prodigious fundraiser, lobbyist Jim Capalino, is seeking favors from City Hall for his clients to lift restrictions and facilitate inappropriate development in the East Village. The number of projects this lobbying firm has gotten approvals for in this neighborhood is mind-boggling.

"Each new favor builds upon the next,” he continued. "First he got permission for an upzoning south of Union Square for an oversized ‘tech hub.’ Now he’s seeking air rights transfers to continue the spread of ‘Silicon Alley’ to St. Mark’s Place. The mayor’s pay-to-play practices are utterly transforming this neighborhood."

Capalino's spokesperson, Kenneth Fisher, had this response:

"Projects like these require multiple levels of public review and hearings and consideration of the merits by numerous public officials and professionals. Perhaps [Berman] would be more successful arguing on these merits rather than spreading absurd rumors."

As far as next steps, here's Curbed after the previous LPC meeting in April:

REEC will return to LPC at a not-yet-scheduled public meeting once they have altered their proposal to incorporate the commission’s recommendation that they lower the structure’s first setback to better align with St. Mark’s street wall and other feedback.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Demolition nearing for the northeast corner of 3rd Avenue and St. Mark's Place

Workers yesterday started erecting the sidewalk bridge around the northeast corner of Third Avenue and St. Mark's Place, marking the next phase of demolition. (H/T Steven, Nick Solares and @unitof!)

Until yesterday, the prep work was going on inside the vacant assemblage of buildings — 3 St. Mark’s Place, 23 and 25-27 Third Avenue. This has been a long time coming: Permits were filed in March 2018 to tear down the existing structures to make way for an office building with ground-floor retail.


[Photo yesterday afternoon by Steven]

The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more floors and square footage to their office building.

REEC has already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner. If the air rights deal is ultimately OK'd, then the Morris Adjimi-designed building at 3 St. Mark's Place would rise to 10 stories.



The Landmarks Preservation Commission heard the application to transfer the air rights back on April 9. In the end, they asked REEC and Adjimi to return with some modifications.

REEC picked up the 99-year leasehold for the properties — housing McDonald's, the Continental, Korilla BBQ and Papaya King, among others — for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

Meanwhile, the once-completed sidewalk bridge should make for a popular hangout this coming summer.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Landmarks Preservation Commission to hear air-rights transfer proposal today for 3 St. Mark's Place

This afternoon, the Landmarks Preservation Commission (LPC) will hear an application to transfer air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to enable an increase in the size of a planned office building on the northeast corner of Third Avenue and St. Mark's Place.

This is the next step in the approval process for Real Estate Equities Corporation (REEC), the leaseholder of 3 St. Mark's Place.

Patch summarized the steps ahead for REEC in an article from February:

REEC is asking asking the Landmarks Preservation Commission to issue a report to the City Planning Commission to allow for 10-story building. If the LPC gives the greenlight, REEC would then apply for a special permit for around 8,300 square feet of air rights and modify part of the zoning resolution through a special permit.

Once in City Planning's hands, the special permit would snake through the Uniform Land Use Review Procedure (ULURP), which is ultimately sent to City Council where the local councilmember, Carlina Rivera, would have a binding vote. Rivera has not yet weighed in, but her spokesman said the councilmember is listening to community feedback.

On Feb. 13, REEC reps appeared before CB3's Landmarks Committee, who voted 2-1 against the special permit. (You can read the recaps at Curbed ... Gothamist ... and Patch.)

On Feb. 26, the full CB3 board voted to oppose the proposed transfer of development rights — 8,386 square feet in total, per the meeting minutes.

REEC has already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner. If the air rights deal is ultimately OK'd, then the Morris Adjimi-designed building at 3 St. Mark's Place would rise to 10 stories.

REEC picked up the 99-year leasehold for the properties — the prepped-for-demolition 1 St. Mark's Place, 3 St. Mark’s Place, 23 and 25-27 Third Ave. — for nearly $150 million in November 2017.

The LPC public hearing is expected to start today at 1:45 p.m. in the Municipal Building, 1 Centre St., 9th Floor North, public hearing room. Village Preservation is rallying opposition to the transfer. Read more from them at this link.

Updated 7:45 p.m.

Patch had a reporter at the hearing:

Landmarks sent REEC and the architect back to the drawing board recommending they lower the structure's first setback to better match St. Mark's street wall — though some commissioners were generally supportive of air rights transfer.

Previously on EV Grieve:
Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Next steps for the proposed office building on St. Mark's Place and 3rd Avenue

[The current northeast corner of St. Mark's Place at 3rd Avenue]

As I first reported on Feb. 3, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more floors and square footage to their office building in the works for the northeast corner of Third Avenue and St. Mark's Place.

In the first step in this process, REEC reps appeared before CB3's Landmarks Committee on Wednesday night. The committee ultimately voted against the special permit (it was a 2-1 count). This nonbinding vote goes to the full CB3 board on Feb. 26.



Three media outlets had reporters at the meeting. You can read the recaps at Curbed ... Gothamist ... and Patch.

And a few excerpts from the various coverage. Per Curbed:

"I think a number of us are concerned. This is the entrance of St. Mark's place which is a really historic street in our neighborhood," said Carolyn Ratcliffe, a member of the board’s landmarks committee, who noted a 19th century apartment building will be demolished and small businesses booted to make way for the new office building. "It's about how we feel about that street and the entrance to that street and it’s like having the whole corner turned into a modern glass [building]."

And in response...

REEC pushed back and said neighborhood advocates are being shortsighted about the deal’s implication’s for the Hamilton-Holly House.

“People are talking about preserving the neighborhood and the way it feels but they’re not thinking about the long-term benefits of the preservation of 4 St. Mark’s (the Hamilton-Holly House) going forward simply because people are upset that there might be a building on the corner seems out of spite to want to hurt the individual landmark building,” said Brandon Miller, a managing partner at REEC.

Under the approved deal, REEC would pay $4 million for the air rights to Castellan Real Estate Partners, the owner of 4 St. Mark's Place. During the meeting, Miller said the company also contributed $500,000 toward the recent restoration of No. 4. And 5 percent of the air rights sale proceeds — $200,000 — would go into a dedicated account for future maintenance of No. 4.

And Patch lays out the complicated steps ahead:

REEC is asking asking the Landmarks Preservation Commission to issue a report to the City Planning Commission to allow for 10-story building. If the LPC gives the greenlight, REEC would then apply for a special permit for around 8,300 square feet of air rights and modify part of the zoning resolution through a special permit.

Once in City Planning's hands, the special permit would snake through the Uniform Land Use Review Procedure (ULURP), which is ultimately sent to City Council where the local councilmember, Carlina Rivera, would have a binding vote. Rivera has not yet weighed in, but her spokesman said the councilmember is listening to community feedback.

Regardless, REEC already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner.

The full CB3 board meeting is Feb. 26 at 6:30 p.m. Location: P.S. 20, 166 Essex St. (between East Houston and Stanton).

Previously on EV Grieve:
Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Updated 2/14: The CB3 committee reportedly voted down the air-rights transfer.

Tonight, reps for Real Estate Equities Corporation (REEC) will appear before CB3's Landmarks Committee at 6:30 to discuss transferring the air rights from the landmarked — and under-renovation — Hamilton-Holly House across the street at 4 St. Mark's Place.

With these air rights and approved zoning variance, the Morris Adjimi-designed building REEC planned for the northeast corner of St. Mark's Place and Third Avenue would rise to 10 stories — twice the size of the original plans.

And as you sort through the various zoning documents (this link goes to the PDF on the CB3 website with details on the proposal) and public records for REEC, some familiar names emerge from behind the scenes.

As public documents show, REEC has several lobbyists working on their behalf, including Capalino & Associates and Kramer Levin Naftalis & Frankel LLP.


[Click on image for more detail]

James Capalino, arguably New York's most prolific lobbyist, has ties to the Rivington House scandal... and last spring he reportedly agreed to a $40,000 settlement with the state's ethics watchdog that investigated his dealings with a nonprofit created to promote Mayor de Blasio's agenda. (In August 2016, de Blasio said that he cut ties with Capalino, who has represented several big-money developers seeking City Hall approval for their projects.)

Meanwhile, as the Post reported last November, the city paid Kramer Levin Naftalis and Frankel LLP $2.6 million, de Blasio's legal-defense bill during investigations by state and federal prosecutors starting in 2016. Investigators closed the probes in 2017 without bringing charges against the mayor. (In late January, City Council passed a bill that allows elected officials to fundraise to pay off legal bills, though it excludes lobbyists, holding companies and corporations from donating, as The Wall Street Journal reported.)

Public documents show the scope of lobbying work that the firm Kramer Levin Naftalis and Frankel is doing on behalf of REEC...


[Click on image for more detail]

This past October, REEC filed plans for a 5-story, 29,030-square-foot building at 3 St. Mark's Place.

A retainer agreement from Capalino to REEC on public record (PDF here) dated from last May 8 shows that there were already plans in place for a building larger than the current zoning allowed. The letter doesn't state dimensions for the building, only that: "Consultation will provide pre-certification and post-certification government relations expertise regarding the Uniform Land Use Review Procedure [ULURP]."

Tonight's public meeting is the beginning of the review process, which requires an application to the LPC followed by an application to the City Planning Commission for the special permit. (Read this primer on an explanation of the ULURP process.)

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

The CB3 Landmarks Committee meeting tonight is at the JASA Green Residence, 200 E. Fifth St. at the Bowery.

Previously on EV Grieve:
Report: NE corner of St. Mark's Place and 3rd Avenue will yield to a 7-story office building

Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Developers of 3 St. Mark's Place are looking to double the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Updated 2/14: The CB3 committee reportedly voted down the air-rights transfer.

As I first reported, reps for Real Estate Equities Corporation (REEC) will appear before CB3's Landmarks Committee tomorrow night at 6:30 (Feb. 13) to discuss transferring the air rights from the landmarked — and under-renovation — Hamilton-Holly House across the street at 4 St. Mark's Place.

With these air rights and approved zoning variance, the Morris Adjimi-designed building REEC planned for the northeast corner of St. Mark's Place and Third Avenue would rise to 10 stories — twice the size of the original plans. (This link will take you to the PDF on the CB3 website with details on the proposal.)

Meanwhile, the Greenwich Village Society for Historic Preservation expressed its objections to the transfer and additional height of the building. According to a new post on the GVSHP website:

The planned 10-story, 175 ft. tall office tower is part of the growing wave of office development we are seeing in this area along 3rd and 4th Avenues and University Place and Broadway, spurred on by the growth of the expanding tech industry’s "Silicon Alley," and the recent approval by the City Council of the Mayor’s Tech Hub just a few blocks away on 14th Street.

The transfer of the air rights to increase the size of the planned tower ... is subject to the approval of various city agencies. We feel strongly that the city should not abet oversized and inappropriate office development in this area. The planned office tower displaces several long-time local businesses, as well as a nearly 200-year-old house.

Tomorrow's meeting is the beginning of the review process, which requires an application to the LPC followed by an application to the City Planning Commission for the special permit.

The CB3 Landmarks Committee meeting is open to the public (and is open to public comment). The meeting is at the JASA Green Residence, 200 E. Fifth St. at the Bowery.

The links below have more history about what has transpired on this corner...

Previously on EV Grieve:
Exclusive: After 40 years, punk rock mainstay Trash and Vaudeville is leaving St. Mark's Place

4 St. Mark's Place is for sale

More residential units and a 5th-floor addition in the works for landmarked 4 St. Mark's Place

You'll be back: Look at the renovated Hamilton-Holly House on St. Mark's Place

The Shake Shack effect? McDonald's on 3rd Avenue at St. Mark's Place has closed after 20 years

Report: NE corner of St. Mark's Place and 3rd Avenue will yield to a 7-story office building

Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

The Continental gets a 3-month reprieve

New building plans revealed for 3rd Avenue and St. Mark's Place

Developers of 3 St. Mark's Place are looking to double the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

[Photo from Saturday]

Updated 2/14: The CB3 committee reportedly voted down the air-rights transfer.

This past October, Real Estate Equities Corporation (REEC) filed new permits for 3 St. Mark's Place (the address of the former Papaya King) for a 5-story, 29,030-square-foot building with ground-floor retail.

These plans were actually smaller than the original specs reported for this northeast corner of Third Avenue and St. Mark's Place. According to The Real Deal in November 2017, a seven-story office building was slated for this soon-to-be-demolished assemblage of buildings.

In any event, hold everything on those 5-floor plans.

On Feb. 13, reps for the developer will appear before CB3's Landmarks Committee to discuss transferring the air rights from the landmarked — and under-renovation — Hamilton-Holly House across the street at 4 St. Mark's Place.

With these air rights and approved zoning variance, the Morris Adjimi-designed building at 3 St. Mark's Place would rise to 10 stories. Here's a look at the rendering posted to the CB3 site...



This link will take you to the PDF on the CB3 website with details on the proposal.

Here's part of the pitch, per their overview:

The Applicant is requesting the Landmarks Preservation Commission (the "LPC") to issue a report to the City Planning Commission pursuant to Section 74-79 of the New York City Zoning Resolution to facilitate the construction of a ten-story building (the "Proposed Development"! located at 3 St. Mark's Place ...

The special permit would (a) allow a transfer of 8,386 square feet of development rights from the zoning lot located at 4 St. Mark's Place (which is occupied by the Hamilton-Holly House (the "Landmark"), an individual landmark, and (b) modify the provisions of ZR Section 33-432 to allow the Proposed Development to penetrate the maximum front wall height and sky exposure plane within the 20-foot initial setback distance on St. Mark's Place. This waiver allows for a better relationship to the adjacent buildings on St. Marks Place and allows for better office floorplates.

As a condition of the special permit, the owner of the Landmarks Building has agreed to undertake additional work — more expansive in scope than the originally approved work — to restore the Landmark Building to a sound, first-class condition, and to thereafter implement a cyclical maintenance plan for the Building.

These commitments will be set forth in a restrictive declaration, binding upon the owner and its successor and assigns in perpetuity, implementing the approved continuing maintenance program.

[Photo of 4 St. Mark's Place from last month]

The Feb. 13 meeting is the beginning of the review process, which requires an application to the LPC followed by an application to the City Planning Commission for the special permit.

Back to the overview for the plan for more zoning jargon...

In its report, LPC will comment on the restoration work and continuing maintenance plan as well as the manner in which the requested waiver of the otherwise applicable height and setback regulations contributes to a harmonious relationship between the Landmark and the Proposed Development. LPC is not reviewing the actual work on the Landmark because this work has been previously reviewed and approved.

After the special permit application is filed with CPC and certified pursuant to ULURP, the request for 74-79 Special Permit will be referred back to the Community Board for the second step in the review.

So this marks just the beginning of the Uniform Land Use Review Procedure (ULURP). Read this primer on an explanation of the process.

The CB3 Landmarks Committee meeting on Feb. 13 is open to the public (and is open to public comment). The meeting is at the JASA Green Residence, 200 E. Fifth St. at the Bowery. And this certainly isn't the last we'll hear on this variance request.

REEC picked up the 99-year leasehold for the properties — 1 St. Mark's Place, 3 St. Mark’s Place, 23 and 25-27 Third Ave. — for nearly $150 million, per The Real Deal in November 2017.

The Continental was the last business on the corner, with the last call happening on New Year's Eve.

The corner assemblage is owned by the Gabay family.

Previously on EV Grieve:
Exclusive: After 40 years, punk rock mainstay Trash and Vaudeville is leaving St. Mark's Place

4 St. Mark's Place is for sale

More residential units and a 5th-floor addition in the works for landmarked 4 St. Mark's Place

You'll be back: Look at the renovated Hamilton-Holly House on St. Mark's Place

The Shake Shack effect? McDonald's on 3rd Avenue at St. Mark's Place has closed after 20 years

Report: NE corner of St. Mark's Place and 3rd Avenue will yield to a 7-story office building

Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

The Continental gets a 3-month reprieve

New building plans revealed for 3rd Avenue and St. Mark's Place