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A Review and Analysis Of City Planning’s Theater Subdistrict Fund Proposal
September 7, 2016
If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds.
– Alexander Hamilton, Federalist No. 21, December 12, 1787
The Real Estate Board of New York (REBNY) reviewed the Department of City Planning’s (DCP) proposal to amend the contribution to the Theater Subdistrict Fund (“Fund”) for the listed theaters that transfer development rights within the Theater Subdistrict.
Currently, the contribution is established at $17.60 per square foot (psf) for development rights transferred. When the Fund was established in 1998, the initial rate was $10 with a requirement to review the contribution amount every three to five years using the assessed value of all properties in the Subdistrict. The contribution rate has since been raised twice: in 2006 to $14.91 and in 2011 to $17.60. The proposal is a timely reconsideration of the contribution amount to the Fund.
The proposal recommends that the contribution amount be established at the higher of: twenty percent of the transferred development rights sales price, or twenty percent of the psf of a “floor price”— established by a market study valuation equal to $347 psf and adjusted every three to five years. In addition, the funding agreement would require a Chairperson Certification, a ministerial action, not an Authorization.