In what might be the most cliched "New York City" land use situation, check out the Appellate Division's opinion in Coalition For Fairness v. City of New York, No. 2023-05338 (Dec. 5, 2024).
Want to convert your SoHo-NoHo artist live/work space to unlimited residential use? Be prepared to pony up and pay to the City's Arts Fund a non-refundable fee of $100 per square foot as a precondition of even filing a building permit.
When owners challenged this fee as unconstitutional under Nollan/Dolan/Koontz/Sheetz, the trial division said no. But the Appellate Division held otherwise, concluding that the imposition of the fee lacked an essential nexus and was not roughly proportional to whatever impacts "certified artists" (who knew the government was in the business of "certifying" artists?) suffer when an owner converts.
The opinion, in true Appellate Division style is short (3 pages), so you can just read it. But here's how the court laid out the analysis:
The ZR’s prohibition on new JLWQA units, coupled with this stated goal of broadening uses and the ZR text providing for conversions away from JLWQA use, further indicates that the City’s long-term land use goal is to phase out JLWQA units (see ZR § 143-13). By contrast, the City’s asserted goal in its arguments on appeal, of supporting art and local artists, is not related to any land use interest (see Nollan, 483 US at 837). Nor does payment into the Arts Fund promote the asserted legitimate end of preserving JLWQA stock for certified artists, as the Arts Fund does not pay for joint living-work units or other housing for artists, much less offer benefits specifically to certified artists. Instead, money from the Arts Fund “shall be allocated . . . to support arts programming, projects, organizations, and facilities that promote the public presence of the arts within the [SNX] District and surrounding neighborhoods,” with priority given to “under-resourced organizations and under-served areas” (ZR § 143-02).
Slip op. at 3.
And no proportionality either, because "there is no evidence of negative impacts on certified artists arising from the changes in zoning. Instead, [the City] represented during the approval process that there was a 'scarcity of certified artists able to purchase' JLWQA units, due to an ever-decreasing number of annual artist certifications the previous decade." Id.
Declaratory judgment and injunction issued.
Check it out.
Coalition for Fairness v. City of New York, No. 2023-05338 (N.Y. App. Div. Dec. 5, 2024)
