Anger at Plaza's conversion.

Historic preservationists are voicing strong opposition to The Plaza's conversion from a hotel into condos, but the City Council's recent bill to block conversion has brought equal opposition.

Elad Properties, the company that purchased the property for $675 million earlier this year, will be making a $100 million renovation. It will convert the 806-room, 19-floor hotel into 200 luxury condo units, saving only 150 hotel rooms. The renovation will also include a 160,000 s/f upscale department store.

Last week in an attempt to thwart the Plaza project, the City Council introduced a bill that would bar any hotel from converting more than 20% of its space to condominiums.

Soon after Mayor Bloomberg said the bill is illegal and would be defeated in a court of law.

The Real Estate Board of New York agrees.

"This is a terrible piece of legislation that won't hold up to constitutional challenge," said REBNY president Steven Spinola. "It's clearly an anti-development measure that would stop development and construction."

The Hotel Association has also come out against the bill that is now in the hands of the Council's Housing and Buildings Committee.

"We do not believe that this bill is necessary and could be detrimental to the hotel industry and the City of New York," said the Hotel Association's New York president Joseph Spinnato. "This legislation will have a negative impact on the development of new hotels and hotel jobs in the future."

The 1907 French Renaissance building, known worldwide for its historic and architectural importance, is currently an individual exterior landmark. It is also zoned as-of-right for residential or hotel use, which may become a problem for the retail component of the plan.

The current retail and restaurant uses in the hotel pre-date the zoning and are counted as "ancillary uses." This would not be the case if the hotel goes from 800 to 150 rooms, as planned.

Elad is currently looking for a special zoning permit to allow retail uses on parts of the first three floors. This process entails making an application to the Landmark Preservation Commission under Section 74-711 of the Zoning Resolution.

The LPC that was to act on the application this week deferred the matter to a later date. However, the LPC has selected a number of interior spaces at the Plaza for possible designation--including the 59th Street and Fifth Avenue lobbies, the Oak Room, the Oak Bar, the Palm Court, the Grand Ballroom and lobby spaces, the Terrace Room and lobby.

At the same time, Manhattan Community Board # 5 denied Elad's application, which called for the installation of escalators through the Terrace Room and the truncation of the ground floor corridors.

Community Board # 5 member Joyce Matz said the Board is opposed to any changes to the facade, interior rooms and to the addition of a retail component.

"In essence, we oppose the entire project," said Matz. "The Plaza is one of the great hotels icons throughout the world. We have had people from all over the world writing letters, wondering what is happening here in New York."

"It would be a great loss to the city," she added. "The rooms are not only architecturally beautiful, but very historic."

Simeon Bankoff, of New York's Historic District Council, would also like to see the hotel saved from conversion.

"We were very upset about the Plaza issue," said Bankoff.

"I wonder where people are going to stay when they come into the city. You are talking about 800 hotel rooms. For that much money they could have bought the Hudson Yards."

To increase hotel development, Spinola said the city should consider bringing back the tax incentives for developers wishing to build hotels.