Garment District Plan Passes City Council

MIDTOWN MANHATTAN, NY — The New York City Council voted to pass a plan to protect Midtown Manhattan's garment manufacturing industry and bolster the strength of the industry in other parts of the city.

The council strongly approved of the New York City Economic Development Corporation's multi-faceted plan that features a tax abatement plan for landowners leasing space to garment manufacturers, the creation of dedicated garment manufacturing space in Midtown and Brooklyn, a rezoning of Midtown's Garment District and other services such as workforce development and outreach to garment businesses.

The reception of the plan is a far-cry from the city's first attempt at rezoning Midtown's Garment District. The new plan was released in June, ten months after the EDC delayed a previously-proposed zoning change for the district that was met by opposition from local elected officials and fashion industry businesses.

"What we've negotiated here is a real plan to strengthen that foundation, and now it’s critical that we follow through on every element of it – including maximizing the success of the IDA program, and making sure we purchase permanent space for manufacturing in the Garment Center," Manhattan Borough President Gale Brewer said in a statement.

The main component of the plan is the Garment Center IDA program, a tax incentive through the New York City Industrial Development Agency which allows landlords to benefit from offering long-term leases to fashion manufacturers. Landlords can cash in on the incentives by offering 15-year leases at $35 per square foot to any business involved in the garment production supply chain such as pattern-making, embroidery and dyeing, according to the EDC.

City officials also moved to strike zoning protections passed in the 1980s that required Garment District landlords to maintain a 1:1 ratio of garment manufacturing space compared to space for other uses, such as residential or retail. City officials claimed that the zoning protections actually failed to protect garment manufacturing businesses.

The city is also seeking a partner to acquire and operate a space in the Garment District that will become a dedicated fashion manufacturing space, according to a Request for Expressions of Interest launched in October. The city is committing $20 million toward the acquisition costs for the facility, officials said.

The zoning changes and programs in Midtown will be supplemented by the creation of a 200,000-square-foot garment manufacturing space in Sunset Park, Brooklyn, city officials said.

Photo by Kevin Foy/REX/Shutterstock