L.L. 2015/050

Enactment date: 6/2/2015  

Int. No. 592-A

By Council Members Johnson, Chin, Torres, Reynoso, Richards, Levine, Miller, Van Bramer, Kallos, Rodriguez, Dromm, Lander, Ferreras, Lancman, Rose, Constantinides, Deutsch, Espinal, Eugene, Gentile, Gibson, King, Levin, Maisel, Cumbo, Rosenthal, Mendez, Menchaca, Cohen, Treyger, Arroyo, Cabrera, Koslowitz and Wills

A Local Law to amend the administrative code of the city of New York, in relation to the preservation of certain hotels, a moratorium and report relating to such preservation, and the expiration and repeal of such amendments

Be it enacted by the Council as follows:

Section 1. Declaration of legislative intent and findings.

   a.   The council finds and declares that:

      1.   As one of the world's premier travel destinations, the city depends on a diverse group of visitors for its economic health and wellbeing, and spending by such visitors, which generates over $3.7 billion in taxes annually, provides a crucial source of revenue for the city and supports 360,000 jobs.

      2.   Larger hotels, which often provide additional services to guests, are a vital component of the city's hospitality industry. These hotels are a critical source of quality jobs for city residents and are essential for attracting business and convention travelers and affluent visitors. Several such hotels have converted to residential condominiums in recent years, resulting in, among other impacts, a significant loss of quality jobs. Because of this recent conversion history and current market conditions, the council is concerned that more such hotels will convert to residential condominiums or other non-hotel uses in the near future; in fact, the owners of several such hotels in Manhattan have already announced their intention to undertake conversion of at least some of their hotel rooms to residential apartments.

      [3.   Reserved.]

      4.   Once undertaken, such conversions are potentially irreversible, and the loss of even a small number of such hotels, coupled with the inability to reliably predict that the jobs and tourism-related revenues and economic activity generated by these hotels will be replaced in their particular communities, poses a significant risk to the city's economy, its tourism, its market for quality jobs and the quality of life for city residents and visitors. It is unclear whether the impact of such losses may be counteracted through development of smaller hotels.

      5.   Determining the full extent of such risks, and the appropriate responses thereto, requires further study.

   b.   The council finds that it is necessary and appropriate to place limited, short-term restrictions on the conversion of larger hotels in Manhattan to other uses to facilitate the preparation and consideration of a comprehensive 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.

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[Consolidated provisions are not included in this Appendix A]

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§ 3. Hotel industry report.

   a.   Not later than six months after the enactment of this local law, one or more offices or agencies designated by the mayor shall complete a 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:

      1.   An 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, including tourism and the availability of quality jobs for city residents, and the potential economic, land use and other impacts of restrictions on such conversions; and

      2.   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, but not limited to, recommendations relating to legislation, zoning text or map amendments, regulatory actions and financial or other incentives; provided that such recommendations shall not seek to prohibit any conversion of primary hotel space or covered timeshare space exempted by the definition of "covered hotel conversion" in section 25-701 of the administrative code of the city of New York.

   b.   In preparing such report, the designated offices or agencies shall consult with stakeholders, including representatives of the hotel industry, elected officials, community groups, labor, real estate investors and the real estate industry, and others, and may hold public hearings to obtain comments and testimony.

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