Hell's Kitchen: City Planning Update 6/2/98

[Hellskitchen]

Hell's Kitchen Online                                    6/2/98
                 "All the News the Times Won't Print"
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In this issue...

* Update on City Planning Commission Vote, Wed. 6/3

* CSDC Press Release: Actors' Equity Modifies Position

* Joe Rose admits it's about Real Estate, not the theater industry
  Excerpts from City Planning Commission Review Sessions

* Actors' Equity Calls for Changes in Eighth Avenue Zoning Proposal
  news article from Playbill, 01-JUN-98

* Broadway Initiative: Key Committees Prepare Guidelines 
  news article from Backstage, May 29, 1998

* Theatre District Rezoning Endures CPC Review 
  news article from Backstage, May 29, 1998

=================================================================

UPDATE ON CITY PLANNING COMMISSION VOTE, Wed. 6/3

Here's an update on the City Planning Commission vote on the 
8th Avenue/Theater Subdistrict Zoning proposal.

City Planning's regular meeting will start at 10 a.m. in the
Old Board of Estimate Room (second floor) of City Hall.

However, there are a number of unrelated items that will happen
before the 8th Ave vote. We've been told by sources at City
Planning that the vote is expected sometime between 11 am and
12:30 pm. We urge you to come around 11 am, and please don't
mind if it doesn't happen right away.

Your presence is important because many from City Council are
looking at this issue. Peter Vallone, who is running for
Governor, is looking at this issue. If no one (or few) show
up, the politicians will figure no one really cares. On the other
hand, if we get a good turnout, they will (hopefully) take notice
and that will influence what happens at City Council. The developers
and theater owners are essentially using paid supporters. When
groups like Manhattan Theater Club come out in support, you have to
understand they get a lot of money (around $180,000) from the
Shubert Foundation which owns the Shubert theaters. What is interesting
is that other theaters that don't get financial backing from 
the Shuberts did not come out and speak in favor of the proposal.

It's important that Clinton/Hell's Kitchen residents show up and
let City Planning know there are real people who will be affected.

=================================================================

PRESS RELEASE FROM CLINTON SPECIAL DISTRICT COALITION, June 1, 1998

ACTORS’ EQUITY ASSOCIATION CALLS FOR MODIFICATION 
OF MAYOR’S EIGHTH AVENUE/THEATER SUBDISTRICT ZONING PROPOSAL 
TO PROTECT CLINTON/HELL’S KITCHEN NEIGHBORHOOD 
FROM EFFECTS OF AIR RIGHTS; CLINTON COMMUNITY WELCOMES EQUITY’S CONCERN.

The Council of Actors Equity Association (AEA) passed a resolution May 28th calling for the
elimination of the west side of Eighth Avenue from the controversial plan allowing free-floating
Air Rights in the Theater District and parts of the Clinton/Hell’s Kitchen neighborhood.

Equity’s resolution called for the elimination of the entire west side of Eighth Avenue from the
rezoning plan or an alternate plan that includes measures directly beneficial to the neighborhood.

In response to the resolution, the Clinton Special District Coalition (CSDC) commended Actors’
Equity for recognizing the larger implications of the zoning proposal, particularly that there
would be a significant adverse impact on the Clinton community to the west of Eighth Avenue.

CSDC spokesperson John Fisher stated, "Although we welcome Actors' Equity's consideration of the
Clinton neighborhood, many in the community feel the proposal calling for a 44% increase in bulk
just cuts too wide, too deep and too broad to leave the neighborhood intact. Any promises by this
administration of a few units of affordable housing is speculation at best and it won't even begin
to mitigate the impact of carving up the neighborhood. After all, it was City Planning
Commissioner Joe Rose who said to Equity's Council on January 27th that he would intercede to
enforce the anti-harassment provisions of the Clinton Special District. If anything, it's gotten
worse since then."

City Planning Commissioner Joe Rose steadfastly denies any impact would occur from the
construction of up to 22 skyscrapers, and has refused to conduct an Environmental Impact Statement
as normally required by the New York City Charter.

Fisher continued, “In many ways, Equity’s change in position highlights the crux of the issue and
points out why a Special Permit and Public Review should be required prior to setting a city-wide
precedent allowing 2.4 million square feet of free-floating air rights over a sixty block area.
The public deserves to know from City Planning the depth of environmental, infrastructure and
community impact before it is too late.”

Kevin Finnegan, Chair of Manhattan Community Board #5 Land Use Committee stated, “Actors’ Equity
is the first union to examine the proposal with some scrutiny and not surprisingly, they have
problems with the proposal. As other unions begin to look at the proposal in more depth, we expect
they will also find it flawed and lacking.”

Proceeds from the sales of air rights will go to owners of landmarked Broadway theaters with a
portion going to the Broadway Initiative, a new industry organization. While much of the financing
of the Broadway Initiative remains unknown, theatrical unions are expected to provide the lion’s
share of the $10 million yearly operating budget. According to figures supplied by City Planning
and the Broadway Initiative, the amount of money coming from Air Rights sales from the west side
of Eighth Avenue amounts to only 1-2% of the projected budget of the Broadway Initiative.

Fisher noted that many questions related to the zoning proposal and the Broadway Initiative still
remain unanswered. “We hope Actors’ Equity will continue its investigation into the costs the
theatrical unions are expected to bear to finance the Broadway Initiative, whether the air rights
will provide suitable funding for general theater enhancement and the burdens placed on the
surrounding communities.”

The Clinton/Hell’s Kitchen neighborhood runs from 34th to 59th Streets, 8th Avenue to the Hudson
River, and has historically provided affordable housing for many in the performing arts. It is
home to Manhattan Plaza, New York’s largest dedicated artists’ housing and Theater Row, home to
many Off and Off-Off Broadway theaters.

# # #

=================================================================

Is City Planning Chairman Joe Rose a friend of
Theater and Jobs; or it really about Real Estate?

Excerpts from the New York City Planning Commission Review Sessions, May 11 and May 27, 1998. All
participants are NY City Planning Commissioners unless otherwise identified.


Edward Rogowsky:

How are we to make sure that this artistic revitalization of the art form will be served by this
proposal?

Chairman Joe Rose:

I don’t know... the Broadway Initiative will or won’t succeed...it’s whether the theaters do or do
not succeed in usage. That is the best we can do.

Jacob Ward:

How are theater owners funding this? How are members at Broadway Initiative funding this? I
haven’t seen a solution to make this a viable program.

William Grinker:

If Broadway Initiative is the “driving force” – a “crucial element” – then where are the other
elements... and where is funding coming from other than the “supposed” sale of air rights?

Chairman Joe Rose:

Regarding transfer of development rights and the Broadway Initiative, the two are related, but
distinct. TDR and the covenants are concerned with the preservation of theater [buildings] and
must include the 8th Avenue zoning change.

William Grinker:

...the theater industry called the Broadway Initiative the “driving engine.”

Chairman Joe Rose:

[responding] Broadway Initiative is important, but not paramount.

Richard Barth (City Planning Staff)

TDR fees were never intended to be the primary component of the Broadway Initiative. Rather, a
significant first step – seed capital for this enterprise.

Irwin Cantor:

Much is left to be said – the unions may drop out. We’re the only ones stepping up to the plate at
this point.

Chairman Joe Rose:

It may work out “in kind” contributions from the members... things are being “worked out” – not a
concern to us – our concern is land use – the Broadway Initiative will work out it’s [own]
funding.

Edward Rogowski:

I have trouble with two things. First, to have brought Broadway Initiative together was a
Herculean task – to have forged the unity – BUT this is not enough! Too much is left to promises.
Further, the audience development contingent’s needs to raise money may undercut existing efforts
of TDF. Further the amount of money we are told will come to the Broadway Initiative annually is
barely enough to make any impact on goals of the Broadway Initiative – maybe will help transfer
one production per year.

William Grinker:

[agreeing] Concept good. But the proposal must be more creative with the legal language to meet
the challenge of funding mechanisms to carry out commitments of Broadway Initiative beyond the
“seed money.” Contingent money must come into play. Can Legal get language to make it contingent?

Chairman Joe Rose:

This is a land use tool, not a budget item. It’s the City’s first involvement with the Broadway
theaters.

William Grinker:

Well, others must step up to the plate!

Jacob Ward:

You’re asking me to put up my money so you’ll put up yours! If the unions don’t participate, the
City has to do what?

Melanie Meyers, City Planning attorney

The Theater Subdistrict Council appointed by the Mayor is the mechanism if the Broadway Initiative
doesn’t generate the funding.

Chairman Joe Rose:

If the Broadway Initiative doesn’t pay up, we can find another way.

Brenda Levin:

If you want us to vote for an unprecedented change in zoning (linked to the Broadway Initiative),
they should sit down, lock themselves in a room, and tell the Commission “this is what we intend
to do!...”  We were told at the hearing that if no air rights were sold, and if the theater owners
therefore put no money in the pot – that the unions and other members of the Broadway Initiative
would have to come up with the funding.

Jacob Ward:

Why should we be getting involved in this?

Brenda Levin:

The Broadway Initiative is not going to work without these commitments in specifics…

Chairman Joe Rose:

I’m completely confident this mechanism will work to support use and maintenance of the theaters.
Whether or not the Broadway Initiative accomplishes its goals is up to them.

Brenda Levin:

Without the sale of air rights in a bad year, with 20% of the funding going to inspect the
theaters, etc., I don’t see how this is going to do much good.

Chairman Joe Rose:

...the $10 per square foot is enough – the Broadway Initiative is separate – separate the
entrapreneurial from the land use. The minimum that the $10 per square foot can do is the
inspections, the reports, etc. “In kind” contributions are expected... In terms of Off-Broadway
and OOB, etc., moving shows – those are speculative – a lot of contributions will be “in kind” –
that needs a lot of time to be worked out. We are concerned with inspections of theaters and use –
NOT other aspects. That’s up to them.

=================================================================

Actors' Equity Calls for Changes in Eighth Avenue Zoning Proposal
Playbill, 01-JUN-98
by Robert Simonson

Actors' Equity has passed a resolution calling for a major revision in New York City's proposal to
rezone a span of Eighth Avenue covering the theatre district. The actors' union called for the
elimination of the west side of Eighth Avenue from any rezoning plan, thereby cutting neatly in
half the amount of land that would be available for increased development. The move stands in
contrast to an earlier Equity resolution in which the union more or less supported the plan.

"Many in the community feel the current proposal cuts too wide, too deep and too broad into the
Clinton neighborhood," said John Fisher of the Clinton Special District Coalition. "We welcome
Equity's consideration." The west side of midtown Eighth Avenue is part of Clinton and many
residents have objected to the plan, which they say benefits real estate and theatre interests to
the detriment of the surrounding neighborhood.

Put forth as a cure for the ailing Broadway industry, the Department of Planning's proposal would
allow theatre owners to sell the "air rights" to their landmarked buildings to developers who
wished to build along Eighth Avenue between 40th and 57th streets in excess of current zoning
laws. A portion of the money theatre owners would cull from such a windfall, meanwhile, would be
deposited into a Theatre Fund, intended for the upkeep of landmark theatres and the development of
new plays and used by the Broadway Initiative Working Group -- a coalition of theatrical
management and union groups.

Manhattan Borough President C. Virginia Fields, while endorsing the city's Eighth Avenue Zoning
Proposal, has also recommended the exemption of much of the west side of the street from the plan
and the requirement that any air rights transfer require a special permit. Still, Fields' has been
the most positive reaction the proposed rezoning has yet elicited. In recent months, the proposal
has been strongly, and, in some cases, unanimously rejected, first by Community Boards 4 and 5
(which encompass Clinton and the Theatre District) and then the Manhattan Borough Board. Broadway
interests have argued that the plan would be beneficial to the city's billion-dollar theatre
industry and necessary for its continued health and survival. The City Planning Commission is
scheduled to vote on the proposal on June 3. Following that, the plan will go before the City
Council.

=================================================================

Broadway Initiative: Key Committees Prepare Guidelines 
By Murdoch McBride 
Backstage, May 29, 1998

Trying to assess the nascent Broadway Initiative,
which met privately last week, brings a viewer
immediately in contact with its enthusiastic
participants, and its dedicated opponents.

First, for primary information on the initiative, one
goes to Anne Zimmerman, the organization's sole
employee. Her task: to keep a diverse and
precedent-setting coalition moving forward.

Then there are representatives of member organizations
who show up for committee work. Their task: to prepare
broad guidelines for "production enhancement" and
"audience development," the two topics that dominate
the Broadway Initiative agenda.

But there are critics as well, many of whom live in
Clinton/Hell's Kitchen and who view the Broadway
Initiative as a symbol of powerful interests rather
than a true coalition within the industry. Their task:
to protect their neighborhood and affordable lifestyle
by lampooning the Broadway Initiative's financial
estimates and delaying, modifying or altogether
blocking the City of New York/Broadway Initiative
theatre district rezoning proposal.

To Air is Human

Watching the Broadway Initiative gather momentum is
sometimes painstaking and requires patience. While
Back Stage's request to sit in on the Broadway
Initiative meeting on Wed., May 20, was politely
turned down, reports would indicate that the gathering
felt it made some progress.

"The meeting went very well," said Zimmerman. "There
is still some committee work to do, which is normal in
a situation where lots of people are at the oars."

Asked for details about the proposed guidelines,
Zimmerman said, "The program guidelines were presented
by the committees and [the working group] asked for
changes. I can't make the guidelines public until
they're adopted by the board."

Active Participation

The Broadway Initiative comprises three main units,
led by this 11-person board of directors: Jed
Bernstein, the League of American Theatres and
Producers; Gretchen Dykstra of the Times Square
Business Improvement District; Alan Eisenberg of
Actors' Equity; Jack Goldstein of the Theatre
Development Fund; Barry Grove from the Manhattan
Theatre Club; Barbara Hauptman of the Society of Stage
Directors and Choreographers; Rocco Landesman of
Jujamycn Theatres; playwright and director Arthur
Laurents; John Nakagawa from the Vineyard Theatre;
Robert Nederlander of the Nederlander Organization;
and Lee Silver of the Shubert Organization. Lawyers
from the firm Proskauer Rose LLP--Alan S. Jaffe,
Robert Kaufman, Jeffrey Horwitz, Eliot Green and Ira
Akselrad--hold the board's officer positions. On
Thurs., May 28, new board members were scheduled to be
added and new officers elected.

There is also the Broadway Initiative "working group,"
the largest and most visible unit of the lot, with
committees ranging in size from 23 people (production
enhancement) to 45 people (audience development).

These units overlap, but the committees perform tasks
according to the working group's directions.

Zimmerman, who has indicated that she is singularly
focused on propelling the coalition's agenda forward,
said that the two main committees see good turnouts,
with an average attendance of approximately 75
percent: "Participation has been very high and people
are interested," she said. In terms of constituencies,
Zimmerman added, "The production development committee
is made up mostly of union people, producers, several
managers--from both profit and not-for-profit--a
couple of industry pros and a theatrical accountant.
The audience development committee is mostly working
pros in PR and audience development, from both profit
and not-for-profit organizations."

The Bain of their Existence

So far, the Broadway Initiative is best known for the
Bain Report--commissioned together with the City of
New York--and the resulting city plan to rezone the
theatre district. Theatre rezoning would open up the
sale of unused Broadway theatre air rights--and
therefore the ability to build highrises--and would
provide more "soft sites," where developers could
exploit the air rights purchased from theatre owners.

Thus, the Broadway Initiative is fighting on two
administrative fronts. One is the battle to establish
a coalition of Broadway interests that actually works.
The other is the struggle with the neighboring
community, namely the Clinton and Hell's Kitchen
resident/activists who see themselves bearing the
burden of new development in their community and who
question the proposed budget of the Broadway
Initiative.

Budget Controversy & Opposition

The Broadway Initiative's budget is a topic that
generates controversy. According to Zimmerman, one
revenue stream will be based on a percentage of
theatre air right sales but, she said, "as a
responsible manager I am not counting on that money
immediately." In fact, she said, more consistent
revenue streams will come from industry sources such
as "producer contributions, contributions from union
members, a national membership program, foundation and
corporate sponsorship support, and a couple of other
things."

"These [Broadway Initiative] operating funds might
come out of our [union] dues and this is of great
concern," said Marilyn Rockafellow, a member of Equity
and a resident of the Clinton Special District for
more than 20 years. "If we are asked to subsidize
this, it is not acceptable." Rockafellow, who is close
to the Clinton Special District Coalition, expressed
the concern she shares with others in her community--a
fundamental doubt about the financial assumptions set
forth by the Bain Report and the Broadway Initiative.

"I have supported the Broadway Initiative in every
testimony I've given, but I can't do it anymore," she
said. "There is no worthy, experienced producer who
will argue with the saying, 'If it ain't on the page,
it ain't on the stage.' We cannot support the Broadway
Initiative at this point, or the transfer of
development rights as submitted."

Sense of Alienation

This sort of opposition has become familiar chatter in
the wake of the Broadway Initiative, and is
predictable given the scope of the coalition's goals
and the sweeping changes proposed by the theatre
district rezoning plan.

What exacerbates the problem for the Clinton/Hell's
Kitchen side is their geographic proximity to the
targeted "soft sites," juxtaposed with their sense of
alienation from the planning process. Their only
participation is opposition and, they fear, even this
may be taken from them.

The most controversial point in the rezoning plan--the
proposed "as-of-right" transfer of air rights--which
means that developers would be able to buy, transfer
and develop their rights at undeveloped "soft sites"
without the customary and prolonged public review of
the projects. Theatre interests and city
representatives consider "as-of-right" essential to
attracting developers. Opponents want ongoing public
review and cite the City of New York as well as the
Broadway Initiative for not insisting on an
environmental impact study as part of the proposed
rezoning.

All of this has a bearing on the formation of the
Broadway Initiative, which is reliant on broad
support, new funding streams and the success of air
right exploitation.

Inclusive, Not Exclusive

The ongoing controversy also points to the
practicality of "embracing opposition," especially
while trying to build a difficult coalition. Indeed,
this would be in keeping with certain suggestions made
in the original Bain Report.

On page five of the report, under the sub-title, "Role
of the Broadway Initiative," the Bain consultants
stated, "Operating and policy guidelines are required
for the successful operation of the Initiative. The
Initiative should: a) be inclusive, not exclusive; b)
play collaborative roles that individual participants
structurally cannot do on their own; c) supplement,
not supplant individual efforts and resources; d) be
financially solvent and sustainable; and e) be created
with enough flexibility to respond to the changing
challenges of the theatre community over time.
Conversely, the Initiative should not: a) replace
resources that could be available now; b) take
over/interfere with the collective bargaining process;
c) be a creative czar/gatekeeper; and d) be a
producer."

However important the Bain Report is to the Broadway
Initiative, it appears that is isn't revered as any
sort of Magna Carta.

"How we meet our mission goals is an internal matter
that we have to work through ourselves," Zimmerman
said. "It's a complex proposition that requires an
industry focus on industry problems."

Zimmerman went on to say that she expects the
implementation of the Broadway Initiative programs to
take place by 1999 or 2000, with the production
enhancement program beginning sometime earlier than
audience development. In both cases, published plans
are not expected until late this year or some time in
1999.

=================================================================

Theatre District Rezoning Endures CPC Review 
By Murdoch McBride, Backstage, May 29, 1998

The controversial city plan to re-zone the theatre district, which will come before the full City
Council this summer, is still with the City Planning Commission and was scheduled for another
hearing on Wed., May 27 just as Back Stage was going to press.

This recent hearing, part of the commission's 60-day review, was conducted at the request of City
Planning Commissioner Joe Rose, who is said to be very interested in a "full discussion" of the
plan.

The commissioner scheduled additonal hearings following an initial and well-attended public
hearing that took place on Wed., May 6. There, the plan's numerous supporters and opponents
offered views on whether the city should rezone the theatre subdistrict along Eighth Avenue and
allow for the widespread sale and transfer of development rights (TDR). The mechanism would allow
theatre owners to exploit their unused air rights--a major element in the start-up planning of the
Broadway Initiative: a group of theatre and union leaders looking for ways to stabilize the
theatre industry.

Shortly after the Manhattan Borough Board all but unanimously voted against the proposal, a
variety of major changes were suggested by Manhattan Borough President Virginia Fields, who
approved the controversial plan providing these changes were adopted.

Fields' suggestions would significantly modify the zoning plan, making it easier for residents in
Clinton and Hell's Kitchen to accept. Among the key changes: keeping public review for proposed
development, thus eliminating TDR "as-of-right" from the plan; removing target soft sites for
development along the West side of Eighth Ave. between 45th and 56th streets; and upping the land
use covenant from 25-years to a period equal to the life of any new development built using a
theatre's air rights.

There has been a great deal of controversy over the rezoning plan as well as Fields' surprise
support and recommended changes. As the plan moves through the public review schedule, speculation
about its fate in the full City Council has been building. In light of the fact that the City
Council may politicize the issue, one source commented on whether the planning commission would
adopt changes recommended by the borough president: "Now might not be the right time for a savvy
commissioner to deal with such problems."

In fact, Commissioner Rose was on vacation and could not be reached for comment, but City Planning
Director Richard Barth spoke with Back Stage and indicated that the commission takes the Uniform
Land Use and Review Procedure seriously and will look at "recommended changes."

"City Planning has modified other major proposals," Barth said. "The commission has the
prerogative to do so." Barth also commented on the controversial "as-of-right" issue, saying that
an "essential ingredient of the proposals is that transfers be predictable." Barth, who has spoken
in support of the theatre district rezoning, believes that development will continue along Eighth
Avenue in some form or another. Under the plan, he said, "Certification of development would be
as-of-right, with the commissioner ensuring that all necessary obligations were met. Theatre
District Rezoning