LIC residents living in ‘Hotel Hell’

Just when the residents of Long Island City’s Dutch Kills neighborhood thought that their development-related headaches were over, they discovered they were wrong.
When Dutch Kills was rezoned in October, residents expected that this would stop developers from building tall hotels in their low-scale neighborhood, which is home to 19 hotels under various stages of construction. Residents believe these hotels are out-of-character and threaten their quality of life.
But, shortly after the current zoning was enacted, the Dutch Kills community found out that a developer has applied to get permission from the city’s Board of Standards and Appeals (BSA) to continue building a hotel taller than the existing zoning allows.
The developer, whose company is called Wilshire Hospitality, argues that building a smaller hotel would lead to a financial loss.
“If we let one [developer] go, then the rest of them are going to want to go to the BSA and do the same,” said Vienna Ferreri, a Dutch Kills resident.
Dutch Kills, a neighborhood of about 12 square blocks, has two hotels that are open for business and one that is about to open. In addition, it is home to a total of 16 other hotels currently under construction.
“He’s allowed to go 12 stories - that’s all he should have,” Ferreri said about the Wilshire Hospitality developer, who is planning his 14-story hotel at two adjacent lots – 29-23 40th Road and 30-02 40th Avenue.
Wilshire Hospitality started construction in April. However, on October 7, when the new zoning took effect, the Department of Buildings issued a stop-work order because the planned hotel is taller than the existing zoning permits.
Complying with the current zoning would essentially require the elimination of 24 rooms, which would cause Wilshire Hospitality to lose its contract with Marriott International, explained Stuart Beckerman, a lawyer representing the developer.
A contract with Marriott requires the developer to have at least 156 rooms, Beckerman said. “The hotel business is about rooms.” In addition, an agreement with Marriott will give Wilshire Hospitality access to a global reservation system, making it easier for the developer to fill his rooms, Beckerman said.
Without the income generated from the Marriott franchise, Wilshire Hospitality will likely have to sell the property, which will also lead to a loss because of diminished property values, Beckerman explained.
In addition, Wilshire Hospitality has invested heavily into this project, incurring a cost of $7.2 million, so construction should proceed under the old rules, Beckerman said.
Cost and complexity of construction are the two factors the BSA considers when granting variances, said Jeff Mulligan, BSA executive director.
Meanwhile, residents said they are skeptical that the developer has spent so much. “I’d like to know what cost him $7 million because he sure didn’t do anything on the lot,” Ferreri said. “I think it’s all blown out of proportion.”
“We document that figure in our papers,” Beckerman said about the cost, explaining that excavation is complete and about 40 percent of the foundation is in.
Councilmember Eric Gioia, who represents the area, also says that Wilshire Hospitality should not receive a variance and sent a letter to the BSA urging them to reject their applications.
“The reason new zoning laws were passed was to protect the character of the neighborhood while also allowing for smart economic growth, particularly residential growth,” Gioia wrote. “Now that the new zoning laws have been enacted, developers must adhere to the new regulations, and not be granted loopholes.”
Community Board 1 echoed that sentiment by voting against approving the application during its November meeting.
The BSA still hasn’t scheduled a public hearing for Wilshire Hospitality’s case, Mulligan said, adding that the Community Board’s decision will be taken into consideration.