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Agency That Approved Rivington House Deed Lift Plans Move to 28 Liberty

By Irene Plagianos | December 7, 2016 2:15pm | Updated on December 7, 2016 4:35pm
 Fosun has proposed three large glass pavilions, which would require a deed restriction modification.
Fosun has proposed three large glass pavilions, which would require a deed restriction modification.
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Presentation to LPC/ Fosun

UPDATE: Just hours before a scheduled appearance before CB1, The Mayor's Office of Contract Services withdrew its application for relocation to 28 Liberty. In a statement to DNAinfo New York, the Department of Citywide Administrative Services, which oversees all city properties, said: "We are withdrawing our application at this time, while we consider if the space still meets the operational needs of MOCS"

FINANCIAL DISTRICT — A city agency that signed off on a controversial deal that allowed a Lower East Side nursing home to be converted into luxury condos is planning to move into a landmarked building seeking its own disputed property modification.

The Mayor's Office of Contract Services (MOCS) has been criticized by both the Comptroller's Office and the Department of Investigation for allowing the owners of Rivington House, a home that cared for AIDS and HIV patients for decades, to remove two deed restrictions and sell the property to a developer for luxury condos.

MOCS now has plans to relocate its offices to 28 Liberty, a 60-story office tower that's been pushing for a modification to its landmarked plaza's deed.

According to a notice of intent obtained by DNAinfo New York, MOCS is planning on taking the entire sixth floor of the FiDi building — a total of 35,000 square feet. The move would more than double its current 16,000-square-foot office space at 253 Broadway.

The owners of 28 Liberty, formerly known as One Chase Plaza, have been pursuing a modification to the property's deed, which they need to build three large glass pavilions — somewhat akin to smaller versions of the Apple store's glass cubes — on the plaza that surrounds that 1960s building.

The property owners, Fosun, had been using a lobbyist involved in the Rivington House deal to push its deed change.

Courtesy of LPC

The glass boxes, which could soar upwards of 17 feet or higher, are meant to be coverings for entrances into 175,000 square feet of new underground retail space being developed on three subterranean levels at the plaza, part of an overhaul planned by Fosun International, the Chinese company that bought 28 Liberty in 2015. The entrances would include escalators and elevators, providing access to people with disabilities.

The glass pavilions have become a source of controversy among Lower Manhattan residents, as well as several preservationist groups including The New York Landmarks Conservancy and the Historic Districts Council, which have opposed the plans.

Critics say the glass pavilions could be an eyesore, and obstruct views of the plaza artwork. (Courtesy of LPC)

Critics take issue with the plan not only because of concerns about the aesthetics of the pavilions and the desire to preserve the character of the landmarked plaza — but also because of what they say is a systematic lack of a transparent deed removal and modification process.

Community Board 1 previously approved plans for an overhauled plaza and new retail space initially — but those plans did not include the glass pavilions.

Fosun later presented the redevelopment plans that included the glass structures to the Landmarks Preservation Commission in August, after its meeting with the community board — and those plans were approved. 

The deed modification could have moved forward from there, if the Department of Citywide Administrative Services, which manages city-owned properties among other duties, had approved it. Without a deed change, no structures taller than 6 feet above the highest point on the plaza are allowed to built.

But the Fosun plan was thrown off track as news of the controversial Rivington House deal — and the investigations it sparked — pushed the city to put a temporary moratorium on all deed changes.

In 2015, DCAS approved a deed lift at Rivington House which allowed the Allure Group, the nursing home's operator, to sell the property to a luxury condo developer for a $72 million profit. The Allure Group had to pay DCAS $16.5 million to get the deed lifted. While the Allure Group did mislead the city, there was a "complete lack of accountability" from City Hall, investigators found. 

According to investigations by DOI and the comptroller's office, MOCS could have provided oversight of the DCAS deed lift, but it merely signed off on the deal without any scrutiny.

Fosun came back to CB1 for approval of their plans, which included the glass pavilions, but in light of the Rivington House "debacle," as CB1 chairman Anthony Notaro called it at September meeting, he felt the board needed more time to review the changes.

The company has since withdrawn its plans for CB1 review, according to CB1, as the city and legislature have been working on new standards for changes to deed restrictions.

Fosun did not return request for comment about its new tenant or its plan for glass pavilions. A spokeswoman for DCAS said the request for a deed modification at Fosun was on hold.

Meanwhile, the City Council on Tuesday passed legislation designed to improve transparency and standards in the deed modification process. New provisions in the law include the forming of special committee to review any change to a deed restriction, along with a DCAS review — before requiring the mayor, not just MOCS, to sign off on the deal.

The new standards would also call for a land-use review with the Department of City Planning, and require local elected officials' input as well as a public hearing. Plus, the legislation would require the creation of a database to track any city property with a deed restriction. 

DCAS was slated to present the MOCS move to CB1 at a Financial District committee meeting on Wednesday at 6 p.m.