Zoning Didn't Stand a Chance Against the Economy in New York's Garment District

Crain's New York Business columnist Greg David writes that New York City has fixed its "worst land-use mistake."

The decision in question dates to 1984, when political forces concerned about the potential for rising rents to drive businesses away resulted in manufacturing only zoning for side streets n the Garment District. "Apparel jobs vanished anyway—some 12,000 remain in the city and fewer than 5,000 in the Garment Center—in a telling example of how land-use policy is helpless in the face of economic forces," according to David.

"After almost two decades of trying, the city will finally end the restrictive zoning this fall," reports David.

According to David, the zoning changes reflect a city, and a planning regime, that has faced reality when it comes to manufacturing jobs, and the amount of space reserved for manufacturing uses around the city.

"In recent years, architects and design firms have swept in, along with tech companies and nonprofits—some in space restricted to manufacturers—bringing in a new, affluent workforce," writes David. "Even more transformational, the district is now home to 42 hotels, with 12 more under construction. Tourists have in turn lured restaurants and bars."