Staten Island, often called the Forgotten Borough, is poised for a transformation. City Council member Kamillah Hanks has proposed higher-density zoning for the North Shore, a move that could reshape the area’s housing market. This initiative comes after years of stalled development efforts, with the North Shore offering both stunning harbor views and proximity to Lower Manhattan via the Staten Island Ferry, a free 25-minute ride away.
The North Shore, despite its potential, has long been a challenging area for development. Past projects like Empire Outlets and the New York Wheel ended in foreclosure and partial sales, respectively. Even the minor league baseball team, once housed in the stadium built by Rudy Giuliani in the 1990s with taxpayer funds, folded in 2020 after averaging just 1,848 fans per game. These setbacks highlight the difficulties in revitalizing the area, though the potential for multifamily housing remains.
A shift in local sentiment
Hanks’ proposal marks a departure from the past, where rezoning efforts often faced fierce resistance from community members and local officials concerned about gentrification and displacement. This time, the response has been largely positive, reflecting a broader shift in attitudes toward housing development. Ashley Doukas, a land use attorney, notes that the City Council leading this initiative is uncommon, and with support from Speaker Julie Menin, Hanks’ plan is well-positioned to succeed.
A push for more housing
The city’s housing shortage has prompted a change in approach. Former Mayor Eric Adams‘ City Charter Revision Commission implemented changes that streamline the approval process for mixed-income projects in underutilized districts. These reforms, approved by voters in November, bypass the need for Council approval in the 12 least-productive districts, leaving decisions to the City Planning Commission. Hanks’ rezoning goes further, enabling as-of-right development, which allows builders to proceed without lengthy negotiations, giving her significant control over the terms of development in her district.
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Economic development focus
Hanks has long been an advocate for smart growth and economic opportunity on the North Shore, a commitment reflected in her nearly two decades of work in the area. However, some of her colleagues, like Gale Brewer and Phil Wong, remain opposed to similar changes in their districts, fearing the imposition of developments. Despite this resistance, the new rules only require the mayor’s support to move forward.
The success of Hanks’ rezoning will depend on market conditions. Currently, ground-up rental construction is only viable in areas with rents of roughly $100 per square foot per year, which translates to $5,400 a month for a 650-square-foot apartment. In contrast, the most expensive one-bedroom rental on Staten Island is about $2,700, highlighting the gap between current rents and what developers need to make projects financially feasible. Hudson Companies president David Kramer notes that even with free land from the city, current interest rates, construction costs, and wage requirements under 485x make new rental construction challenging outside of high-rent districts.
Long-term potential
Despite these challenges, rezoning is expected to yield benefits in the future. The 2005 Downtown Brooklyn rezoning serves as a precedent, with significant construction activity following a period of economic alignment. Staten Island’s low density and the region’s growing housing needs make it an ideal candidate for development. Recent investments, such as the Arker, L+M joint venture purchasing a Staten Island complex for $365 million and the city’s plans for a 2,500-home overhaul of the waterfront, signal growing interest in the area. As the region’s housing demands increase, the North Shore’s rezoning could prove to be a forward-thinking decision, setting the stage for future growth.
