City Planning Commission Extends Special Permits for Mixed-Use Development Amid Community Concerns

The City Planning Commission (CPC) reviewed the second and final renewal of special permits for a proposed mixed-use development at East 16th Street between Irving Place and Union Square East during its meeting on January 5, 2026. The permits, originally approved in 2018, required substantial construction to prevent expiration, and this renewal allows for additional time to complete necessary work.

The CPC noted that the permits could be renewed for a final three-year period provided the underlying facts from the original approval have not substantially changed. Presentations indicated that no modifications to the project have been proposed since its last approval, maintaining the original application conditions. Construction on the development site, which is currently occupied by a public parking garage, remains pending (Source: https://youtu.be/Y46GUCzYH5s&t=2565).

The special permits, one for landmark preservation and another for accessory parking, were initially granted to enable the construction of a new mixed-use building. They included modifications to existing zoning regulations to facilitate this development. The CPC voted to approve a renewal based on this criterion, concluding that there were no substantial changes to the facts surrounding the application’s initial approval (Source: https://youtu.be/Y46GUCzYH5s&t=3160).

The project still faces community considerations. The local community board had previously recommended the application, emphasizing the importance of progressing long-stalled housing projects while also expressing concerns over the project’s bulk and the potential for integrating affordable housing options (Source: https://youtu.be/Y46GUCzYH5s&t=3817).

In summary, the CPC’s review session confirmed the path forward for the special permits, allowing the developers an additional three years to start construction while the commission engages future recommendations to enhance community benefits, including affordable housing (Source: https://youtu.be/Y46GUCzYH5s&t=2667).