The New Coney Island - Brooklyn's Times Square by the Sea

Tuesday, June 16, 2015

WSJ - Coney Island Tower and Shopping Center

Excerpts -

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.

It 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 cost.”

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 center.

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 Buildings.

http://www.wsj.com/articles/developers-scramble-for-expiring-tax-break-1434416759



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