Located on Water Street in Lower Manhattan, there is an aging office building that presents a prime opportunity for conversion into apartments. The 31-story building, previously the headquarters of A.I.G., boasts an abundance of windows and a shape that lends itself well to additional corner units. In a city plagued by a housing shortage, this building has the potential to accommodate 800 to 900 apartments. Interestingly, a similar office building across the street has already undergone conversion into housing, and another one is currently in the process of being transformed.
However, there’s a catch when it comes to 175 Water Street. Offices in the financial district are exempt from certain zoning regulations that make conversion difficult, as long as the buildings were constructed before 1977. Unfortunately, this particular building was built six years too late, in 1983. Richard Coles, the managing partner of Vanbarton Group, which has successfully developed both of the neighboring conversions, explained that there’s nothing about the building’s construction, mechanical systems, or engineering that would prevent it from being converted.
Vanbarton Group, the owner of 175 Water Street, seriously considered converting the building. There was hope that New York City would adjust the 1977 cutoff, a simple reform that wouldn’t cost anything and had the support of Mayor Eric Adams and Governor Kathy Hochul. All it would take is a stroke of a pen, according to Mr. Coles. Unfortunately, this idea did not gain traction in the State Legislature, leading Vanbarton Group to ultimately sell the property.
This situation highlights a larger problem that extends beyond the struggling office sector in the city. The failure to adapt to changing circumstances, such as the needs of residents, the evolving economy, and new challenges like the housing crisis and climate change, is evident on this city block. Healthy cities must be able to both create new structures and repurpose existing ones. Factories become loft apartments, industrial waterfronts transform into public parks, and warehouses become bustling start-up offices and vibrant restaurant scenes.
The COVID-19 pandemic forced American cities to make rapid transformations on a temporary basis. Sidewalks were turned into outdoor dining spaces, parks became makeshift hospitals, and streets were repurposed as open spaces. However, now there is a pressing need to make lasting and significant changes on a larger scale, such as converting offices into apartments, transforming hotels into affordable housing, converting curb parking into bike lanes, repurposing roadways as transit routes, and turning office parks into vibrant neighborhoods.
Ingrid Gould Ellen, a professor of urban policy and planning at N.Y.U., emphasized the importance of flexibility and being open to unexpected uses of space. The need for adaptability has become evident in recent years.
Unfortunately, over time, flexibility has been eroded. American cities now face challenges when it comes to converting buildings due to a complex web of rules and regulations. Zoning codes have become more extensive and rigid, with additional obstacles like environmental reviews and public meetings that often prioritize individual interests over broader societal goals.
Buildings today are expected to fulfill numerous requirements, including accessibility, sustainability, protection against natural disasters, and provision of public spaces. These new goals create a disconnect between older buildings and current regulations. Moreover, there is a growing belief that housing should perpetually increase in value, leading to resistance against change and the ability for property owners to veto proposed developments.
The cumulative effect of these factors is that converting an office into an apartment or making smaller changes, like transforming a porch into an enclosed home office, is met with numerous obstacles. Building codes, zoning regulations, neighbors, old laws, and resistant politicians all contribute to the difficulties faced. The result is a chaotic and convoluted system that stifles conversions.
Emily Talen, a professor of urbanism at the University of Chicago, aptly describes this situation as a “mess.” The proliferation of rules has led to a loss of sight regarding the overall vision of a city. The plethora of restrictions particularly hinder conversions. For instance, in New York, residential buildings require a 30-foot rear yard, while hotels only need a 20-foot one. This incongruity and others like it raise questions about the purpose of these rules and their impact on urban planning.
The zoning codes and regulations have become significantly longer and more complex over the years. Sara Bronin, an architect and legal scholar involved in rewriting zoning laws in Hartford, Conn., points out that New York City’s original 1916 code consisted of just 14 pages, while it now spans nearly 3,500 pages. The accumulation of rules and regulations, also known as the “kludge” by Phil Wharton, a developer based in New York, has made the process of converting buildings even more challenging.
Apart from formal laws and regulations, informal factors such as politics and cultural opposition also play a significant role. While city transportation officials may not be legally obligated to hold public meetings for every bike lane or seek approval from nearby property owners for bus routes, these practices often occur nonetheless. The power dynamics between the community and the city can hinder change, resulting in delays or concessions.
This resistance to change and deference to neighbors can be traced back to the era of urban renewal and the growing reliance on housing as an investment. The conservative mindset and the desire to protect property values often outweigh the necessity for change. Additionally, the prosperity of cities like San Francisco and New York without the need for extensive growth and development has reinforced the status quo.
Eric Kober, a former official in the New York Department of City Planning, emphasizes the economic benefits of this inflexibility. Scarce housing leads to increased property values and tax revenues. The shift towards conservatism is also attributed to the wealthier society we live in today. Unlike in the past, there is less agreement on what changes are necessary to improve housing and neighborhoods.
Overall, American cities face a significant problem when it comes to converting buildings. A combination of complex rules and regulations, cultural opposition to change, and economic incentives to maintain the status quo has resulted in a lack of adaptability. It is crucial for cities to find ways to address these challenges and embrace flexibility in urban planning to meet the evolving needs and demands of residents.
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