Innovation QNS, a proposed $2 billion development that aimed to bring more than 3,000 housing units to 35th Avenue in Astoria, has been scrapped after the developers behind the proposal shelved their plans for the megaproject.
However, the $2 billion development is now likely to yield to several smaller developments in the original project area, according to reports.
Innovation QNS, proposed by developers Silverstein Properties and BedRock Real Estate Partners along with Kaufman Astoria Studios, would have transformed five blocks of 35th Avenue into a sweeping development including 3,200 housing units along with retail space, community facilities and more than two acres of public green space.
The plan, which included 1,436 affordable units, encompassed a largely industrial portion of 35th Avenue but also included a movie theater, several houses and a P.C. Richard & Son store.’
The Real Deal first reported that developers had abandoned the project earlier in the week. Silverstein Properties has not yet responded to a request for comment. BedRock Real Estate could not be reached.
However, several outlets report that Silverstein pulled out of the project amid uncertainty over tax policy after New York State let the 421a tax abatement expire in 2022.
The program encouraged the construction of new buildings by offering a tax exemption to developers who built new multi-unit buildings, including a required percentage of affordable units.
‘No surprise’
Meanwhile, the Real Deal also reported that BedRock has filed plans with the city for a 498,000-square-foot, mixed-use building at 35-18 Steinway St., which includes 560 units. A subsidiary of L+M Development Partners is also funding the smaller project.
A spokesperson for the project said the smaller development will deliver 25% affordable housing at an average of 60% of Area Median Income (AMI) under Mandatory Inclusionary Housing (MIH).
Rezoning framework agreed by the Innovation QNS development team in 2022 included making 45% of all units affordable, with 15% of units available to households earning 30% AMI. However, the project spokesperson said the development team will continue to pursue opportunities to deliver additional affordable housing – beyond what is required by MIH – by making use of existing city and state financing programs.
“We are excited to move ahead with plans for much-needed housing, including deeply affordable housing, and are looking forward to working with the City to deliver additional affordable housing that reflects the goals of the original project’s ULURP approval,” a project spokesperson said in a statement.
Council Member Julie Won, who voted in favor of the original Innovation QNS proposal only after developers committed to doubling the number of affordable housing for the project, said it is “no surprise” that the project has “fallen apart.”
“Since its conception, Innovation QNS was a controversial project with many ailments—an array of often misaligned 20+ landlords, hundreds of community resistors, and no political support,” Won said in a statement.
Won added that the developers who move forward with the smaller portions of the original development are still expected to fulfil the same community benefit obligations agreed in the original rezoning framework, including a commitment to affordable housing.
“The Astoria community is ready to keep landlords accountable and those who don’t respect community agreements will be met with severe backlash,” Won added.
She also described the original rezoning of the area as “ill-fated.”
A spokesperson for Council Speaker Adrienne Adams similarly stated that the development team is expected to uphold its commitments made as part of the rezoning framework.
“We expect the development team, the mayoral administration, and all stakeholders to uphold their commitments as the different phases of this project move forward. The Council will continue to prioritize fighting for housing affordability and community benefits that meet the needs of our communities,” a Council spokesperson said.
Officials close to the Council Speaker said it is “misleading” to state that the project is “dead,” noting that Silverstein may be out of the project but that BedRock remains invested in the project alongside L+M.
Officials further noted that Innovation QNS was “always going to built in phases” and insisted that this remains the case. A Council spokesperson said the Council secured “unprecedented levels of affordable housing” when it green-lighted Innovation QNS in 2022.
“When the Council passed Innovation QNS in 2022, we secured unprecedented levels of affordable housing and public benefits, delivering significant wins for the local community and all New Yorkers amidst a severe housing crisis.”
The Council voted 46-1 in favor of the rezoning framework three years ago.
A ‘blow to the borough’
Queens Borough President Donovan Richards, who had previously called Innovation QNS a “project worthy of the community” as its made its way through the city’s Uniform Land Use Review Procedure (ULURP) three years ago, said news that the project had been shelved was a “blow to the borough,” describing Innovation QNS as an “apparent missed opportunity.”
He also encouraged the development team behind Innovation QNS to find an appropriate way to pursue the project.
“We will not be deterred in our efforts to house our neighbors,” Richards said. “Every unit counts, and I strongly urge the development team and our government partners to work collectively and urgently in finding a suitable path forward for this project. We don’t have time to waste when it comes to putting roofs over the heads of New Yorkers who need them.”
Mayor Eric Adams had previously championed Innovation QNS, which marked the first major housing project approved during his term in office. As the project made its way through ULURP, Adams said the affordable housing units would be a “game-changer,” describing the project as “historic.”
Next steps
City Hall spokesperson William Fowler said in a statement Friday that the administration is now pursuing wider neighborhood rezonings so that it is not reliant on individual developments to “meet the city’s housing crisis.”
Fowler pointed to the OneLIC Neighborhood Plan, which is currently moving through ULURP and aims to create 14,700 units in nearby Long Island City. He also said the Adams Administration will continue to work with the remaining Innovation QNS development team on a “revised plan” for the site.
“In light of the City Planning Commission’s recent vote in favor of the OneLIC Neighborhood Plan, we look forward to continuing discussions with the City Council and other stakeholders to open the door to nearly 14,700 new homes in this same district,” Fowler said in a statement.
