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File #: Int 1586-2017    Version: * Name: Amend local law number 50 for the year 2015.
Type: Introduction Status: Enacted
Committee: Committee on Housing and Buildings
On agenda: 4/25/2017
Enactment date: 5/30/2017 Law number: 2017/109
Title: A Local Law to amend local law number 50 for the year 2015, relating to the preservation of certain hotels, a moratorium and report relating to such preservation, and the expiration and repeal of such amendments, in relation to extending the effective period of the provisions of such local law and requiring a supplemental report relating to such preservation
Sponsors: Ritchie J. Torres, Carlos Menchaca, Laurie A. Cumbo, James G. Van Bramer, Donovan J. Richards, Mark Levine, Deborah L. Rose, Rafael L. Espinal, Jr., Rafael Salamanca, Jr., Helen K. Rosenthal, Ydanis A. Rodriguez, Vanessa L. Gibson, Margaret S. Chin, Andrew Cohen, Costa G. Constantinides, Chaim M. Deutsch, Daniel Dromm , Julissa Ferreras-Copeland, Vincent J. Gentile, Corey D. Johnson, Ben Kallos, Andy L. King, Karen Koslowitz, Rory I. Lancman, Brad S. Lander, Stephen T. Levin, Alan N. Maisel, Rosie Mendez, I. Daneek Miller, Annabel Palma, Bill Perkins, Antonio Reynoso, Mark Treyger, Jumaane D. Williams, Ruben Wills, James Vacca, Fernando Cabrera , Mathieu Eugene, Barry S. Grodenchik, Robert E. Cornegy, Jr., Elizabeth S. Crowley, Darlene Mealy, Inez D. Barron, Joseph C. Borelli, Eric A. Ulrich
Council Member Sponsors: 45
Summary: This bill would extend, by two years, the limitations placed on the conversion of certain hotel space for purposes other than use as a hotel, as imposed by Local Law 50/2015 which restricted hotels having 150 units or more from converting more than 20 percent of the floor area used for sleeping accommodations to a different use. As set out in Local Law 50/2015, in order to convert additional hotel space during the two-year period, a hotel owner will continue to apply to the Board of Standards and Appeals for a waiver in accordance with ยง 25-703 of the Administrative Code of the City of New York. The waiver procedure is already in place and would continue to be available after this bill becomes law. This bill would require a supplementary report to be prepared that analyzes the cumulative impact of the hotel industry, and particular sectors thereof, on the economy of the city.
Indexes: Report Required, Sunset Date Applies
Attachments: 1. Legislative History Report, 2. Summary of Int. No. 1586, 3. April 25, 2017 - Stated Meeting Agenda with Links to Files, 4. Int. No. 1586, 5. Committee Report 5/2/17, 6. Hearing Testimony 5/2/17, 7. Hearing Transcript 5/2/17, 8. Committee Report 5/8/17, 9. Hearing Transcript 5/8/17, 10. May 10, 2017 - Stated Meeting Agenda with Links to Files, 11. Fiscal Impact Statement, 12. Hearing Transcript - Stated Meeting 5-10-17, 13. Mayor's Letter, 14. Int. No. 1586 (FINAL), 15. Minutes of the Recessed Stated Meeting of May 10, 2017 held on May 24, 2017, 16. Minutes of the Stated Meeting - May 10, 2017, 17. Local Law 109
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/2/2017*Ritchie J. Torres City Council Recved from Mayor by Council  Action details Meeting details Not available
5/30/2017*Ritchie J. Torres Mayor Signed Into Law by Mayor  Action details Meeting details Not available
5/30/2017*Ritchie J. Torres Mayor Hearing Held by Mayor  Action details Meeting details Not available
5/10/2017*Ritchie J. Torres City Council Sent to Mayor by Council  Action details Meeting details Not available
5/10/2017*Ritchie J. Torres City Council Approved by CouncilPass Action details Meeting details Not available
5/8/2017*Ritchie J. Torres Committee on Housing and Buildings Hearing Held by Committee  Action details Meeting details Not available
5/8/2017*Ritchie J. Torres Committee on Housing and Buildings Approved by CommitteePass Action details Meeting details Not available
5/2/2017*Ritchie J. Torres Committee on Housing and Buildings Hearing Held by Committee  Action details Meeting details Not available
5/2/2017*Ritchie J. Torres Committee on Housing and Buildings Laid Over by Committee  Action details Meeting details Not available
4/25/2017*Ritchie J. Torres City Council Referred to Comm by Council  Action details Meeting details Not available
4/25/2017*Ritchie J. Torres City Council Introduced by Council  Action details Meeting details Not available

Int. No. 1586

 

By Council Members Torres, Menchaca, Cumbo, Van Bramer, Richards, Levine, Rose, Espinal, Salamanca, Rosenthal, Rodriguez, Gibson, Chin, Cohen, Constantinides, Deutsch, Dromm, Ferreras-Copeland, Gentile, Johnson, Kallos, King, Koslowitz, Lancman, Lander, Levin, Maisel, Mendez, Miller, Palma, Perkins, Reynoso, Treyger, Williams, Wills, Vacca, Cabrera, Eugene, Grodenchik, Cornegy, Crowley, Mealy, Barron, Borelli and Ulrich

 

A Local Law to amend local law number 50 for the year 2015, relating to the preservation of certain hotels, a moratorium and report relating to such preservation, and the expiration and repeal of such amendments, in relation to extending the effective period of the provisions of such local law and requiring a supplemental report relating to such preservation

 

Be it enacted by the Council as follows:

 

Section 1. Declaration of legislative intent and findings. a. The council finds and declares that:                     

1. The Manhattan hotel industry alone generates almost $11.8 billion in economic activity and is responsible for generating over 65,000 jobs throughout the city.

2. Larger hotels, which include many upscale and luxury hotels, often provide enhanced services to guests and are a vital component of Manhattan’s hotel industry, serving as an important source of quality jobs for city residents. These larger hotels are at significant risk for condominium conversion, and indeed several hotels have converted to residential condominiums in the last decade, resulting in a significant loss of quality jobs. Because of this recent conversion history and current market trends, the council is concerned that more such hotels will seek to convert to residential condominiums or other non-hotel uses in the near future. 

3. The council continues to be concerned that once undertaken, such conversions are potentially irreversible and that, as elaborated in the legislative findings set forth in section one of local law number 50 for the year 2015, the loss of even a small number of such hotels creates a corresponding loss of these quality hotel industry jobs. This is coupled with the loss of economic activity generated by these hotels, which may not be replaced in their particular communities, posing a significant risk to the economy, market for quality jobs and quality of life for residents and visitors, both city-wide and in the particular communities where these conversions occur. The impact of such losses is not adequately counteracted through development of smaller and budget-quality hotels, as these hotels tend to employ less personnel and provide fewer on-site services.

4. In local law number 50 for the year 2015, the council required a report to examine, among other things, the short-term and long-term impacts of conversions of primary hotel space in Manhattan on the availability of quality jobs for city residents and other potential impacts of such conversions. A review of that report indicates a need for further research and analysis of the impacts of these conversions as well as substantive and particularized recommendations for addressing any impacts on the availability of quality jobs for city residents.

5. An in-depth supplemental report is therefore required in order to fully understand the current and projected impact of hotel conversions on the city, both in terms of their effect on the availability of quality jobs and, to the extent practicable, their other relevant impacts. Such report should also set forth particularized recommendations, as appropriate, in relation to promoting the preservation and enhancement of the hotel industry and particular sectors thereof.  Following the preparation of the supplementary report, additional time is required to allow the city to consider and, if deemed necessary, develop and implement the recommendations or other responsive policy.

b. As a result of the foregoing, the council finds that it is necessary and appropriate to extend the duration of local law number 50 for the year 2015 for a limited term in order to facilitate the preparation and consideration of a supplemental report to be completed by appropriate city offices or agencies, and to maintain the city’s inventory of these critical hotels pending the development and implementation of the recommendations of such report.

§ 2. Supplemental hotel industry report. No later than June 2, 2018, one or more offices or agencies designated by the mayor shall complete a supplementary report analyzing the cumulative impact of the hotel industry and particular sectors thereof, including hotels as defined in section 25-701 of the administrative code of the city of New York, on the economy of the city. Such report shall include, but need not be limited to:

a. An updated analysis of recent and projected conversions of primary hotel space, as such term is defined in section 25-701 of the administrative code of the city of New York, and other hotel space to other uses, and the short-term and long-term impacts of such conversions on the city’s economy, with particular attention to the availability of quality jobs for city residents and, to the extent practicable, other relevant impacts; and

b. Particularized recommendations for the preservation and enhancement of the hotel industry and particular sectors thereof, including hotels as defined in section 25-701 of the administrative code of the city of New York, and of tourism more broadly, including, as appropriate, recommendations relating to legislation, zoning text or map amendments, regulatory actions and financial or other incentives.

§ 3. Section four of local law number 50 for the year 2015 is amended to read as follows:

§ 4. This local law takes effect immediately, and expires and is deemed repealed [two years after its effective date] June 2, 2019.

 

§ 4. This local law takes effect immediately.

LS #10417

4/18/2017 5:02 PM