Fashion Stakeholders Said to Be Uniting to Air Concerns About Midtown Rezoning Plan

Yahoo

07-05-2025

As the Midtown South Mixed-use plan continues to be discussed among city officials, business owners and members of the public, a group of fashion designers are said to be uniting to present their concerns about the project.
The public review process for the plan, which calls for substantial rezoning and has the support of New York City Mayor Eric Adams, continued Wednesday with a public meeting. The project, which would require approval from the City Council, would cover four areas centered around Herald and Greeley Squares and stretching roughly between West 23rd and West 40th Streets and Fifth and Eighth avenues, with the Garment District comprising a portion of that.
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A group of stakeholders in the Garment District, including many designers, who are either based there or use various resources in the neighborhood are said to be drafting a joint letter to spell out their concerns.
Additional public review sessions are being planned. A vote by the City Planning Commission could be held this spring or early summer. If the commission votes to approve or modify the proposal, it would then go to the City Council for a public hearing and vote.
During Wednesday's City Planning Commission meeting, chair Dan Garodnick noted how the neighborhood has more than 7,000 businesses and 135,000 jobs, but vacancy rates are leaving some buildings unused especially since the pandemic. 'Inflexible outdated zoning has stymied housing growth and prevents the neighborhood from adapting and evolving. With a 1.4 vacancy rate fueling our dire housing crisis, it's unbelievable that if somebody wanted to build housing in this area, the city's own rules would not allow it.'
Garodnick said the status quo must be changed 'to advance every opportunity to create new homes and turn the tide on this crisis.' The MSMX project would do that and create a vibrant 24/7 neighborhood with a mix of commercial, manufacturing and residential uses, spurring the creation of an estimated 9,700 new homes including up to 2,900 permanently restricted affordable homes, allowing 20,000 New Yorkers from all incomes to live in some of the most centrally located and highest-density parts of Manhattan, according to Garodnick.
If approved, the plan would mark the first time that mandatory inclusionary housing would be available in Midtown. It would also give way to key changes that were made through Mayor Eric Adams-supported 'City of Yes' initiative including more flexible rules for office conversions, new high-density residential districts and new, more flexible zoning districts, Garodnick said.
Referring to the neighborhood's 'long and important legacy as an economic hub,' he said the plan would support that by increasing foot traffic day and night through nonresidential uses like light manufacturing, office space and retail. That would allow for transportation improvements and community facilities such as libraries and schools, Garodnick said.
Manhattan Community Board 5, the Manhattan Borough Board and its president Mark Levine have given the plan 'favorable recommendations,' according to the chair. But members of the fashion industry are not fully on board.
Sources said that a group of American fashion designers are uniting to relay their concerns about the plan. While they are said to understand how the neighborhood must evolve to keep up with housing and economic demands in the city, they are seeking safeguards for the fashion industry especially in relation to protecting affordable workspace and small businesses.
Some of the issues that the collective are rallying around are initiatives that have not panned out as expected. One example is how landlords had pledged a total of $25 million to the neighborhood BID funds; the bulk of the earmarked money was never distributed. Another topic is how the city had allocated $20 million for a centralized garment production space, but that has not transpired, and the funds were not redirected. Another matter that is being talked about is how a tax break that was geared for landlords who retained garment business tenants, was not activated, because no one opted in. Another issue with the designers is how during the pandemic shutdown, the city suspended the Fashion Manufacturing Initiative and a proposed Local Production Fund that would help small brands with local factories was never fully realized, sources said.
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