Just six days before the expiration of a lucrative tax break for
real-estate developers, the New York City Department of Buildings issued
a flurry of permits for the construction of a 40-story rental tower and
shopping complex a few blocks from the Coney Island boardwalk.
was part of a surge in activity by developers and architects looking to
make sure buildings qualified for tax incentives under the program
known as 421-a. The program, which conveys more than $1 billion a year
in benefits to developers, expired at midnight Monday.
If Mayor Bill de Blasio’s
plan is adopted by the state Legislature as drafted, it would extend
the deadline until the end of the year, giving the city time to develop
new rules for the program, a mayoral aide said.
In April, 5,546 New York City residential units received
construction permits, the most during any single month in the past five
years, according Census Bureau figures. April was the most recent month
for which figures were available.
About 80% were in Manhattan and Brooklyn, some concentrated in very large buildings.
Under 421-a, new construction of multiple dwellings receives partial tax exemptions for up to 25 years.
“Our goal is to get our permits as quickly as possible,” said Dennis Hasher,
who is working on the 418-foot-high Coney Island tower for developer
Cammeby’s International Group. “Real-estate taxes are a very significant
The Coney Island tower—on Neptune Avenue near Brighton Beach and
Sheepshead Bay—is to have 544 apartments, 890 parking spaces in a
three-story garage, spaces for 296 bicycles and a renovated shopping
A permit application was filed in January, but it wasn’t
until June 1 that the project got zoning approval. On Tuesday, the
building permit was issued, after four separate reviews by Department of