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“City of Yes” zoning updates aimed at helping NYC small business advance

Vacant retail spaces are pictured along 125th St. Wednesday, June14, 2023, in Manhattan, New York. (Barry Williams for New York Daily News)
Barry Williams/for New York Daily News
Vacant retail spaces are pictured along 125th St. Wednesday, June14, 2023, in Manhattan, New York. (Barry Williams for New York Daily News)
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A package of zoning changes intended to give small businesses a lift by updating “laughably outdated” regulations passed the City Planning Commission on Wednesday, priming it for a final vote by the City Council.

The City Planning Department’s 18-point “City of Yes for Economic Development” proposal could make it easier to fill vacant storefronts and allow for more types of businesses in new places, such as more corner stores in residential neighborhoods and more laboratories near hospitals and universities.

It also includes the largest expansion of available space in decades for “clean manufacturing,” including bakeries, microbreweries and jewelry makers, plus allowances for indoor agriculture in commercial areas.

“To continue driving New York City’s economic recovery forward, we must look to the future and not be bound by the past,” Mayor Adams said in a statement. “So many of our old zoning rules simply made no sense, but ‘City of Yes for Economic Opportunity’ will deliver long-overdue, sensible zoning changes that will unlock family-sustaining jobs for our neighbors, inclusive growth in our communities and a vibrant future for our city.”

City Planning Commission Chairman Dan Garodnick previously pointed to outmoded parts of existing zoning, including references to telegraph offices and relics of so-called “cabaret laws” that mean rules still technically prohibit dancing in many bars, clubs and restaurants.

“This is a truly momentous step forward for the future of small businesses in New York City,” said Garodnick. “For too long, New York City’s entrepreneurs, mom-and-pops and commercial corridors have been held back by outdated zoning rules. … New Yorkers are tired of walking past empty storefronts, and it is a bad look when the city’s own rules are preventing us from filling them.”

The “Economic Opportunity” initiative got a mixed reception from community boards across the five boroughs before reaching the City Planning Commission, with 32 of the city’s 59 boards voting against the measure.

‘s Vacant retails spaces are pictured along 125th St. Wednesday, June14, 2023, in Manhattan, New York. (Barry Williams for New York Daily News)Some expressed worry about changes that would allow New Yorkers more flexibility to run a business out of their home. City Planning included a number of modifications in response to that and other concerns, such as reinstating rules capping the amount of space that can be used for home-based businesses.

Several commissioners echoed those worries Wednesday, including Gail Benjamin. She said she was “troubled” by certain aspects of the proposal, particularly what she saw as the “incursion” into residential districts.

“I am going to cast a vote for ‘Yes,’ with the hope that somewhere along the line someone takes a look at how these businesses really operate,” she said.

“Economic Opportunity” is the second of three “City of Yes” initiatives from the Adams administration. The first prong, dubbed “Carbon Neutrality” and aimed at boosting climate-friendly works, was enacted in December; the third and arguably most contentious is “Housing Opportunity,” a sweeping suite of changes intended to create 100,000 new homes across the city that’s currently under public review.

A final vote by the City Council on “Economic Opportunity” is expected this spring.