News: Long Island

Can we make the zoning codes simple? Making it easier for development, renovation and expansion

In April of this year, I read an article on a report by one of Long Island's economic prognosticators. It mentioned how Long Island's growth over the next decade will be flat. Sure Long Island has had its share of cycles, but if there is a sector within our economy that can mitigate this potential blow, it is the towns and villages. Specifically, we need them to relax their zoning codes and parameters, rather than make them more complicated. Doing so would make it much easier for development, renovation, and expansion. As recession cycles come and go, so do real estate cycles. Throughout the decades, there have been many changes in use of existing buildings. These changes are mainly due to generational demands and innovation. Some examples of this are, the advent of: the big box retailer, mini storage warehousing, assisted living facilities, and resident hotels, to name just some. Public and out of town companies, that want to take advantage of a high demographic and income region, have been coming to Long Island with the thought of recycling buildings by thinking outside the box. However, this creative thinking creates uncertainties with our towns and villages as to how to classify the zoning and code parameters for these unique projects. As these markets grew, new zoning codes had to be introduced incorporating modified setbacks, height restrictions, and permitted uses. Unfortunately, the new codes introduced added frustration and lengthy time periods for approvals. In addition, our local villages and towns revised the parameters of the zoning and complicated the process for companies to expand their operations and increase employment. For example, an existing industrial building has a light industrial zoning, which will permit manufacturing, warehousing and administrative offices. We place the building on the market. Along comes a qualified purchaser who intends to use the building, expand his operations and increase employment. His use falls within the parameters of the existing zoning codes for the building. So why does the purchaser have to apply to the town or village for a change of use permit simply because instead of a printing company (the former occupant), a warehouse distribution company (the buyer) will now occupy the building. What will they think of next? Even more frustrating, if you intend to make the slightest change to your buildings (e.g.,install an overhead drive-in door), you will, in some municipalities, trigger an entire site plan review. Please understand that I, for one, would be in favor of a site plan review and upgrade to maintain and enhance real estate values in the community and for surrounding properties. However, triggering a site plan review for a modest installation of a drive-in door can take an approval process of 6 to 9 months and add unnecessary cost to the project. To help promote regional growth and expansion, we should try to impose the "Keep It Simple System" (KISS) throughout Long Island. It is critical that we strive to keep the permit process simple and less time consuming. Without this objective, there will be a serious toll paid with more companies starting to look outside of Long Island to consolidate and expand operations. Remember, expanding companies add multi-tiered value to our local economy in many sectors. In addition to the value added in terms of generating construction jobs, for renovations and new facilities, there is also the income generated to professional service firms such as lawyers and accountants handling the various transactional aspects of the project, as well as sales to equipment manufacturers and distributors, to name just a few of the positive economic impacts. Again, starting at the local municipal level, it is imperative that our towns and village work to streamline and keep the approval, permit and planning process simple and quick. Let's go back to my opening paragraph on how Long Island's growth can remain flat over the next decade. With the ever increasing high cost of living on Long Island and our next generation of employees and innovators not able to maintain a lifestyle on Long Island, we need to deploy all possible strategies and tactics to help maintain and expand our local economy. I cannot place enough emphasis on how our towns and villages can have a positive impact by keeping their systems simple, thereby helping to advance a positive direction for our economy. If a purchasing company falls within the parameters of the existing zoning on that building, a change of use permit is completely unnecessary. The local towns and villages should implement a fast track system for site plan review approval and permits. Another area that I will not touch on in this article but which also should be addressed is the inordinate amount of time a subdivision process takes. Stay tuned... Ralph Perna is an executive managing director at Newmark Grubb Knight Frank, Melville, N.Y.
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