Long road to rezoning nears end for 'Center Sixth' development.

It's been 15 years since developer Leonard Adell looked south out of his office window at the jumble of low-rise properties along Sixth Avenue and decided he not only wanted to own some of the properties, but wanted to combine them and redevelop portions of the old manufacturing area into a new residential community.

Last fall, part of the dream was realized when new zoning text was adopted by the Planning Commission and New York City Council. Now, he and son Matthew, president of the Adell Corp., are in active conversations with lenders and contractors, as well as local, out-of-state and foreign investors and developers to enable them to begin construction on 800 to 850 units on three blockfronts along Sixth Avenue, representing 800,000 to 850,000 square feet in total development.

But getting from point lookout to discussing loan points has not been easy, even though Adell says "It was always a question of when, not if."

Adell ran into problems right away: his first attempt at assemblage never materialized because the landowners adjoining their first two parcels declined to sell.

And City Planning officials, when first approached in 1979, simply weren't interested.

Meanwhile, the Eighties' boom years came and went, the real estate market depressed and two mayors came and went.

Eventually, the re-designation of a few parcels in a deteriorating manufacturing area turned into a full-scale rezoning of an entire avenue corridor. And it wasn't a matter of taking one zoning text and applying it here: the real estate industry and City Planning joined to write an entirely new text, word by word.

In 1985, however, the matter of rezoning was directed more towards keeping the manufacturing designation, but allowing residential use. While there was concurrence at the time on the need for a rezoning, Adell says, there was some minor opposition early on by those who wanted to maintain some manufacturing. But that complex proposal eventually died.

Another obstacle occurred in 1989 when the Landmarks Preservation Commission designated the 1875 Racquet Club building, now known as the Coogan Building and owned by the Adells, a landmark.

That decision was overturned two months later by the Board of Estimate, with help from then Mayor-elect David N. Dinkins, who saw it would be costly to maintain and did not make "a major design impact" on the area.

That property, on the northeast corner of 26th Street, was a key parcel in the Adell's scheme and is now slated for 394 apartments and over 30,000 square feet of retail space.

Finally, Mayor Rudolph Giuliani and his Planning Commissioner, Joseph Rose, agreed with the Adell's vision for the area and worked to help make it happen.

And even more surprisingly, in a city known for the toughest NIMBY foes in the nation, the usual not-in-my-backyarders were not vocal opponents, as they have mixed feelings about seeing the area upgraded.

Still, Matthew G. Adell sighs, "It's been 100 years. I've been asked every year when I thought the rezoning would be finished, and for every year I said it would be one more year. No one thought it would take so long."

Attorney Sanford "Sandy" Lindenbaum led the team that mined the simple rezoning into a 15-year trek through the mazes of governmental administrations.

"The hardest part was getting it to move forward," recalled Lindenbaum. "It was one of the longest rezoning applications that I've ever handled."

The process demanded not only legal studies, but two environmental impact studies, architectural studies, and engineering studies. The environmental impact statement alone cost $675,000, but will benefit the entire district.

"And the process by its nature allows issues to be discussed and re-discussed from beginning to end," said Adell. He says they understood the development process and were able to have staying power, "although most holding operations don't last as long as ours do when dealing with an assemblage."

The actual rezoning encompasses an area from mid-block on 23rd Street to the southern comers of the east and west sides of 31st Street.

Officially it is known as a C6-4X zone, which allows for a 10 FAR (floor area ratio). It is a commercial zone that permits residential usage, but ironically, not manufacturing.

"We have the wonderful opportunity of building housing in the dead center of Manhattan," boasted Adell.

Current plans are to develop Adell-owned blockfronts on the east side of the Avenue from 26th Street through 28th Street, and on the west aide, the southwest comer of 26th Street, along with other portions of that block.

They plan to create rentals in 80/20 housing, in which the buildings will receive a 421a tax exemption and can be partially financed by low interest bonds sold through the New York State Housing Finance Agency on which interest is free of city, state and federal taxation. In return, the apartments become rent stabilized, while 20 percent are set aside for lower income individuals wherein rent levels are capped.

Not surprisingly, the Adells are already getting calls from potential applicants for the low-income apartments.

The entire Center Sixth corridor has the ability to add 1,800 units to the city's housing inventory. "It's a huge housing initiative in a legitimate walk-to-work location," said Adell.

Indeed, the year-end Corcoran Report released by the Corcoran Group, a prominent city apartment broker, found that more people are relocating on the basis of being closer to work.

That is good news for the Adells, as the area is a short walk to the Fashion and bustling Flatiron Districts and Herald Square.

Broker Midge Laguardia of the William B. May Company says "New Yorkers will live anywhere. We're an inveterate group." But she believes a supermarket is necessary to spur the area. "Once something like that happens, I see no problem with it."

Adell is aware of that need and has been in contact with several supermarket chains that are eager for a new market. "We see a need for that and see the tenancies as being a mix of local stores as well as the national supermarket chains that will be well-received by the neighborhood."

The zoning also accommodates parking at a 20 percent ratio to the number of apartments and is similar to other Manhattan neighborhoods.

"It's a wonderful opportunity," said Lindenbaum. "It will open up Sixth Avenue in the Twenties and enable it to become its own mixed-use residential community."

Costas Kondylis, head of CK Architects, is designing the buildings and has also been part of the team working through the long years toward rezoning.

While residential marketing is done every day, the Adells believe they must have buildings that people want to live in it. Throughout the rezoning process, Adell received a lot of feedback on the needs for different sized units.

The apartment combinations is one of the items they are discussing now, along with the marketing of the buildings. "Buildings have a personality and a character, and the people you choose to be involved with you have a lot to do with the character," Adell explained. "Unlike certain other decisions that are empirical, the marketing is the most subjective one."

The Adells have not yet chosen who will work with them, but say they believe in people more than companies.

"It's not whose name is on the door but the individuals, the chemistry and their track record," said Adell.

Making the area distinguishable will be part of that strategy and was the reason they have given the neighborhood the name "Center Six," to reflect its central Sixth Avenue location.

The area now is an inconspicuous montage. People cannot recall a single distinguishing feature along the Sixth Avenue stretch, says Adell, which now merely provides a light and airy transition from the redeveloped Ladies Mile to the backed-up traffic leading to Herald Square.

"Most people driving through New York City have driven from 23rd to 33rd Street and can't remember what's there," he said.

And yet there are thriving sections in the area that include a predominantly Asian wholesale market in the north, building floors accommodating the sewing machine market, and the street presences of the Flower Market and weekend Antiques Market.

Community Board 4 had mixed feeling about the rezoning, said member Edward Kirkland, chair of the Chelsea Preservation and Planning Committee of CB4, because they were concerned about these niches, "all of which were threatened." Nevertheless, they did not oppose the rezoning, but are working to strengthen the zoning in areas further west.

Known historically as the Flower District, even many of those businesses have moved west in search of bigger spaces at smaller prices. Some are survivors though, and owners of those businesses are also concerned about the changing fabric of the community.

Bill Nikolis, a third generation owner of Bill's Flower Shop on the northeast comer of 28th Street, also owns the property and does not intend to move. But he has mixed emotions about the impending influx of high-rise apartment dwellers.

"As a business person, I don't like to stop progress," he said. "It would be nice if we could compromise. You like to see a healthy city and healthy real estate market and like to see healthy flower market."

As a wholesaler, he also realizes the nature of his business may change toward more retail in order to accommodate the new residents.

Until the area's parking lots are developed, it is likely the weekend flea markets will continue. They attract both serious and casual collectors from around the world and keep the area alive on the weekends.

Those flea markets were in many cases sub-tenants of the area parking lots, says Adell. Some have already relocated further west, and are buying or leasing new spaces.

Alan Boss, who operates several of the open air flea markets and one indoor market under the umbrella of the Annex Antique Fair and Flea Market, also sees the residential housing as inevitable.

But as a 30-year business operator in the neighborhood, he is concerned that the market's customers, coming from all over the world, will not be able to find them if they are displaced out of visual range.

"The zoning change is a direct result of specific property owners that have an agenda to build, but it affects other properties," he observed. "But far be it from me to get in the way of someone else's business."

A task force organized by Community Board 5 with help from City Planning is working to assess and aid in that market's relocation.

Adell says any demolition on their sites will be timed to happen at the last possible moment. "We don't see any point to be looking at vacant lots," he added.

While Adell says marketing residential properties "has been done before," the engine that is driving the project now is "very much" the financing, and they are relentlessly pursuing their options.

"We're tickled pink about our project," said Adell. "We're excited that this is a good time to build. The demand is extremely strong for housing."