How New York City’s proposal to re-zone Midtown South with 9,700 new homes could impact the Garment District is up for debate.
If approved, the Midtown South Mixed-Use plan would set up a 24/7 mixed-use neighborhod across 42 blocks. To create 9,700 new homes including 2,900 that are earmarked as income-restricted, the zoning would be reworked to allow for commercial, manufacturing and residential uses that are largely not allowed now. As the public review process of New York City Mayor Eric Adams’ and the department of city plan continues, the potential toll on fashion-related tenants is being examined more closely. The plan would cover four areas centered around Herald and Greeley Squares and located roughly between West 23rd and West 40th Streets and Fifth and Eighth Avenues, with the Garment District comprising a portion of that. In addition to housing, the plan aims to strengthen Midtown South’s economy and bolster jobs through light manufacturing, office space and retail.
Approximately 10 people with ties to proposed rezoning took a walking tour of the Garment District Friday to check out potential buildings that could be redeveloped. A public hearing will be held March 19 at Community Board 5’s district office at 450 Seventh Avenue at 6 p.m. It will also be accessible via Zoom.
Dan Garodnick, the department of city planning’s director and the city’s planning commission’s chair, was unavailable for an interview Friday. A spokesperson referenced a prior statement Garodnick issued in a press release, “We envision for Midtown South a vibrant and dynamic, 24-7 neighborhood with a strong commercial core right alongside brand-new homes for New Yorkers, and we need to change our outdated zoning rules to make it all happen. We developed this plan in partnership with elected officials and community members and we hope they will continue to make their voices heard as public review now gets underway.”
New York City Council member Erik Bottcher, who oversees the Garment District, said in a statement, “The fashion industry is absolutely critical to New York City, serving as a cornerstone of our economy and cultural identity. As the local council member, I am committed to ensuring that the Midtown South Mixed-Use Plan strikes the right balance, fostering a vibrant environment where the fashion industry can continue to thrive alongside residents. Our goal is to create a dynamic hub that benefits businesses, workers, and residents alike while generating desperately needed affordable housing for our workforce.”
In a letter to Garodnick that was seen by WWD, the Municipal Arts Society’s interim president Keri Butler said while the organization supports the Mayor’s “City of Yes for Housing Opportunity” initiative, it would like to see a plan for the 20 or so fashion and garment-related businesses to be supported as community assets “that contribute to the neighborhood identity.”
Responding to an interview request to the MAS Friday afternoon, a spokesperson cited a press release in which Butler said, “New York City needs more affordable housing and mixed-use neighborhoods, that include new residential developments, eased office to housing conversions, and public realm improvements, are a great way to get there. The proposed rezoning for the Midtown South district will enable a mix of housing, commercial, manufacturing, and community development. However, according to the city’s own study, the plan could displace as many as 114 fashion and garment-related businesses. Many of these businesses are small, unique shops that provide products that cannot be purchased elsewhere in the city, and many serve the Broadway theater district.”
Her letter also flagged that the proposal would eliminate the Special Garment Center District Subdistrict A-1 and provides a zoning framework that favors big-box retail and Class A office space, whereas 99 percent of existing office tenants pay the more affordable Class B or C rates, especially nonprofits and small businesses. “How is the city balancing the need for housing development with support for small businesses that want to remain in place but will not be able to afford Class A rent?” Butler asked.
The Garment District’s Big Button was on Seventh Avenue at 39th Street.
Garment District Alliance
The organization also noted that the components of the 2018 support package that was approved by former New York City Mayor Bill De Blasio’s administration — the Building Acquisition and NYCIDA tax incentive, the Council for Fashion Designers of America’s Local Production Fund and the Garment District Alliance Funding — have not been implemented and could be reintroduced. The latter had $10 million in unspent funds per the GDA’s 2023 annual report, according to the MAS.
Butler also cautioned Garodnick about how the Draft Environment Impact Study indicated that 12 sites within the Garment Center Historic District that are listed on the State and National Registry could be demolished. Butler wrote, “As the plan moves forward, we ask that the concerns outlined above be addressed and incorporated into the proposal, and that the city and state explore further incentives to maximize affordability throughout the new housing stock as much as possible.”
The Garment District Alliance is “very encouraged and excited” by the proposal for residential zoning, having requested it from city officials in 2018, according to president Barbara Randall. “This neighborhood desperately needs a new stakeholder. COVID decimated us and drove a loss of nearly 18,000 jobs in the district. We had some of the highest job numbers before COVID.”
In 2019, the GDA reported that its zip code had seen a 58 percent gain over the prior 15 years for a total of nearly 139,00 jobs. The district had seen a 12 percent increase between 2020 and 2022, Randall said.
Established between 1900 and 1925 for apparel manufacturing, the neighborhood remained that way for decades until some manufacturers started to head south. Acknowledging how the district’s fashion-related jobs decreased after more domestic manufacturing shifted offshore in the 1970s and 1980s, Randall cited the North American Free Trade Agreement as another factor for the decline in jobs. As domestic production waned in the years that followed, some of the neighborhood’s vacant spaces were leased by non-fashion businesses, nonprofits and “tons of hotels,” she said.
Donna Karan — pin cushion on her wrist — is at work in her Garment District studio, draping, tucking, chatting and casting years ago.
Thomas Iannaccone
Generations of American designers including Donna Karan, Calvin Klein, Vera Wang, Tommy Hilfiger, Bill Blass, Oscar de la Renta, Carolina Herrera, Adolfo, Stephen Burrows, Liz Claiborne, Claire McArdle, Bonnie Cashin, Norman Norell and others established their companies in the Garment District. In the past decade though, numerous designers, especially younger ones, have opted to run their businesses in other parts of Manhattan, outer boroughs and in some instances other states, where commercial rents are more affordable.
In 2005, the area between Ninth and 11th Avenues from West 30th to West 41st Streets was rezoned to create Hudson Yards district, which gave way for hotels in the Garment District. While the hotels led to more foot traffic, better dining options and other upsides, Randall said she “would have wished for” residential purposes to ensure 24/7 activity and more people with a greater allegiance to the community. One of the incentives for lifting the Special Garment Center District zoning overlay of 2018 was to avoid having noncompliant tenants renting space, Randall said.
The city’s decision to use 12 hotels in the area as temporary housing for people, some of whom were struggling with mental and addiction issues, or who had been incarcerated, impacted the landscape of the neighborhood, which had lost many office workers due to pandemic lockdowns. When workers started to return to their buildings in 2020 and 2021, Randall said, “There were a lot of social issues playing out on the streets and a lot of people didn’t want to come back. We have buildings that are still 30 percent empty. We feel very strongly that if we can get residential here, you’ll have 24/7 use, which means you can support more than ground-floor restaurants.”
Given the district’s proximity to transportation hubs like Times Square, the Port Authority, Penn Station and Grand Central Terminal, the district will attract new stakeholders and “more compelling retail,” Randall said. “We’re really looking for new user groups that will enrich the neighborhood just by their presence, in addition to the housing crisis that we already have in New York.”
She does not anticipate that any fashion-related businesses will have to relocate and said the rents “unfortunately for the owners are still the lowest in the city.” Randall criticized the city and state for the area’s concentration of social service agencies “without any public process,” which has led to disorder on the streets. “For this neighborhood to be viable and robust, as it was before COVID, it needs to be cleaned up. And that’s good for the fashion industry and for anyone, who chooses to live or work here,” he said.
Calvin Klein and Barry Schwartz at the Calvin Klein design studio and showroom in New York City’s Garment District on Jan. 14, 1975.
Pierre Schermann/Fairchild Archive
New York Embroidery Studio’s founder Michelle Feinberg said that last fall when she was negotiating for additional space with the landlord of the West 36th Street building, where she leases a studio, there was a clause in the lease that would have permitted eviction should the zoning be approved. To avoid that possibility, she opted to lease more space in Brooklyn, where her company also has space.
While the additional foot traffic that would come with the rezoning and the increased dining options would be helpful for area tenants, Feinberg suggested another option. “Looking out of my window on West 36th Street, there are several buildings that have been vacant for 10 years so that they could turn them [for redevelopment.] Why don’t they focus on those buildings that have already kicked out all of the factories and are completely vacant? And why don’t they keep the buildings that already have factories?” she said. “We don’t need to hold all of the vacancies for factories that are already struggling to pay midtown rents regardless.”
With 10,000 square feet in Manhattan and 120,000 square feet in Brooklyn, Feinberg said the rent that she pays per square foot in Manhattan is triple what she pays in Brooklyn. Having worked in the Garment District since 1989, she has been a familiar face at meetings run by New York City’s planning commission and the MAS. “Being in the Garment Center for more than 30 years, I’ve seen nothing but a steady decline. It would be great if we could hold onto what we have,” she said
Stating that the city has offered such options as a campus in Brooklyn, Feinberg said, “What they don’t really understand is that we’re a symbiotic ecosystem. You can’t move all of the factories without moving all of the thread stores and the designers. We need each other. It’s like a fish tank — you can’t take part of it and move that away.”
