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Real estate record and builders' guide: [v. 98, no. 2524: Articles]: July 29, 1916

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REAL ESTATE AND NEW YORK, JULY 29, 1916 DISTRICT AND RESTRICTION RESOLUTION PASSED BY BOARD OF ESTIMATE Passage Hastened on Account of Large Number of Plans Filed With Superintendent of Buildings REAL estate entered a new era last Tuesday at four o'clock when the Board of Estimate passed the resolution on Building Districts and Restrictions, which immediately became a law. The resolution will have a very wide effect upon real estate and is generally con¬ sidered by those affiliated with the mar¬ ket to be a step in the right direction. It is not humanly possible that mis¬ takes have not been made, or that the maximum amount of good will result from the resolution as it exists today, but wise provisions have been put into the law which makes it possible at a future date to change and alter sections so as to properly meet conditions as they are found. The Commission has been most faith¬ ful in its arduous task and has done all in its power to meet objectionists more than half way. Principles were laid down, and wherever possible deviations were made, always provided that injury did not result. It is apparent that the basic principles of a resolution of this kind are designed to do the greatest good to the largest number of people, but it is very drastic, and for that reason there were many peo¬ ple who did not approve of the change. Others said that they did not know how it would work out, and thought that pres¬ ent-day conditions should be left alone, for fear that worse effects would ensue. Plan Approved by Many. Many students of real estate, those who have been in the habit of looking well into the future, approve of the plan as a whole, though they might disagree with the Commission on some minor point. These objections were unavoid¬ able, and were met as best they could. People interested in certain parcels made the objection, in several cases, that they were being discriminated against in favor of those who had already erected structures, because they could not like¬ wise improve their properties. There are cases, and many of them, where this is true, but a beginning had to be made, and now is the time. It would have been far better had a resolution of this kind been passed twenty-five years ago, before the tall skyscraper became a reali¬ zation. The city would be in better con¬ dition, realty values more stabilized and "booms" practically done away with. The "boom" is the curse of the real estate market. There is no better kind of a market than a steady, normal one, which enhances gradually by reason of legitimate supply and demand. This sup¬ ply should be based upon demand from tenants, and the prices should be based upon income return to the owner. The passing of the old regime and the enact¬ ment of the resolution into law seems to indicate that "booms" are practically done away and that a logical upbuilding of the city will result. Opportunity is given to those_ who own old houses to improve the sites in a reasonable way and the business zones occupied by the various trades should expand over a wider area, rather than going higher up in the air. The vote of the Board of Estimate was IS to 1, Commissioner Morrison of Richmond, who was acting for President TVyrAYOR MITCHEL made the following statement yester¬ day: "From 1911 to 1916 there was a decline of $120,000,00 in the assessed value of land in Manhat¬ tan south of 40th street. This is an enormous loss, and directly af¬ fects the city's borrowing capacity and the tax rate throughout the five boroughs. Much of this loss could have been avoided had the city exercised a reasonable control over its own development. We believe the Building Zone Plan will prevent the registration of losses in the district above 34th street similar to those already sustained between 14th and 34th streets. The plan is necessary to save the entire hotel and retail business section. The residence sections throughout the city will be protected against the sporadic store, garage or fac¬ tory. In the past, one good resi¬ dence section after another has been destroyed by the coming of the garare or factory. A certain measure of order and system in city building is essential not only to the public health, safety and general^ welfare, but to the con- serevation of property values. Van Nam, voting "No" on the entire proposition. Action on the part of the Board of Estimate was somewhat hastened by the recent avalanche of building plans filed in Manhattan which aggregated about $23,000,000. It was previously announced that the final vote would not be taken by the board until Thursday. At the public hearing last Tuesday, all those either in favor of, or opposed to the resolution were given an oppor¬ tunity to express their opinion. Charles A. Peabody, as attorney for the William Waldorf Astor Estate, objected to the placing of the block front in the west side of Madison avenue, between 35th and 36th streets in the residential zone, claiming that the block was suitable for business improvement and that no ade¬ quate rentals could be obtained for resi¬ dential purposes. Mr. Peabody's objec¬ tion was over-ruled, and Madison avenue from 3Sth to 4.')th streets on the east side, and froin 31st to 39th streets, on the west side is now in a residential zone. From now on interest will be largely centered in the assessments being made liy the Tax Department on which taxes fnr next vear will be based. It is not unlikely that the Department of Taxes will be flooded with protests from many owners of propertv to claim reductions. The members of the Planning Com¬ mission, however, do not look upon this side of the question as serious, although they adinit that some of the properties may be adversely affected; nevertheless the greater portion of the city should show rapid improvement on account of the safesruards created in the various neighborhoods. The gpning plan covers the entire city. Every borough has been divided and sub-divided into sections and districts and restricted as to use, height and area for building construction. The Record and Guide last week published the final resolution upon which the Board of Estimate acted Tuesday and what modifications and changes were inade are noted in the current issue. Lawson Purdy Favors Plan. Lawson Purdy, Commissioner of Taxes, said yesterday: "The enactment by the Board of Estimate of the ordi¬ nance districting the city and regulating the height, bulk and use of buildings is the most important event in the history of the city for fifty years. It is impor¬ tant not only to the City of New York, but to all of the United States. Ordi¬ nances regulating buildings have been enacted in various cities of the country, butnone of them are as far-reaching in their scope as the ordinance enacted for the City of New York. We shall, of course, have complaints from those who think their property has been lessened in value; we shall not hear from the vast number who will be benefited. Such complaints as may be made public dur¬ ing the next few years should not mis¬ lead anyone into the belief that the or¬ dinance is not in the highest degree beneficent. "We shall have litigation, cases will doubtless be carried to the highest court of this State, and probably to the United States Supreme Court. In view of the cases already decided by the United States Supreme Court, and the conserva¬ tive character of the ordinance now en¬ acted we need have no fear of the out¬ come of such litigation. "For several years past various causes have produced a decline in the value of land in the City of New York, and chiefly in Manhattan. In Manhattan the most important cause of this decline has been the failure to regulate building in the past. During the past five years the as¬ sessed value of land south of 40th street has declinedmore than $120,000,000. In the zone lying between 14th and 40th streets. Fourth avenue and Seventh ave¬ nue, there has been a decrease in the assessed value of land and buildings of $57,000,000 since 1913. Much of this de¬ cline has been due to the failure to ex¬ clude factories from this district. In the first section of Manhattan, which lies south of Grand street, the assessed value of land has declined $18,000,000. Cause of Decline. "An important cause of this decline has been the failure to regulate the height and bulk of buildings. There are very few high office buildings that yield a reasonable return on what the land was deemed to be worth five years a.go, plus the cost of reproducing the building. The theory that a building could be erected to a great height has caused ima.ginary land values. It many cases this imaginary land value has been proved to be unreal. "We cannot expect a great advance in value immediately as a result of the pro¬ tection afforded hy the districting ordi¬ nance. There will doubtless be a further decline due to the causes that have been operating, but we may be sure that the decline will not be as rapid, and will