Chelsea Hotel Postpones Plan for Lobby Bars Amid Tenant Discontent Updated March 9, 2010 3:00pm

The Chelsea Hotel has been home to legendary artists and celebrities. (Nicole Breskin/DNAinfo)

By Nicole Breskin

DNAinfo Reporter/Producer

CHELSEA — An application by the Chelsea Hotel to open a pair of new bars off the legendary lodge’s main lobby has been postponed indefinitely following a series of starts and stops with the local community board.

After two failed attempts to earn approval for a liquor license needed to operate the  bars, hotel manager and vice president David Elder pulled the application from the board’s agenda on Monday night in order to address concerns held by hotel residents. 

Elder said he would not comment on the application when contacted by DNAinfo.

At Monday’s meeting, a member of the community board said the liquor license committee was told that Elder’s lawyer hoped to iron out tensions "amicably" before bringing the license before the board again.

However, residents at the Chelsea claim no one has reached out to them. A handful tenants of tenants turned out to the meeting to oppose the application because they didn’t know the discussion was called off.

Board 4’s liquor license committee has met twice over the past two months to vote on the controversial application for the bars that would flank the hotel's main lobby and include a total of 40 seats.

The first time the committee met there wasn’t enough members present to vote on the application. The second time no one from the hotel showed up to present the proposal — with attention directed instead to a second liquor license for the Chelsea, even though club guru Noel Ashman denied he was planning to open a bar at the hotel.

The plan for the lobby bars, unveiled in January, has only heightened tensions already brewing between hotel management, which hopes to add new retail components to the property, and longtime residents who want to see the landmark hotel stay true to its rock ’n’ roll roots.

Scott Griffin, president of the hotel’s tenants association, told DNAinfo he hadn’t had any communication with Elder or his lawyer. He was skeptical about whether the conflicts would be smoothed over.

“There is no communication," Griffin said. "We’ve never been notified of this [application] or anything else from David Elder or his lawyer.

“We will oppose any foolish or further dangerous action he proposes, and we will follow it through to the bitter end,” Griffin added.

The community board will review the application when hotel management is ready to move forward.