Initiative Will Support Small Businesses, Entrepreneurs, Economic Growth to Deliver Largest Overhaul of City’s Commercial and Manufacturing Zoning in 60 Years
New York City Mayor Eric Adams and New York City Department of City Planning (DCP) Director and City Planning Commission (CPC) Chair Dan Garodnick today celebrated the New York City Council’s approval of “City of Yes for Economic Opportunity,” a set of citywide zoning changes the Adams administration introduced that will further fuel New York City’s economic recovery and pave the way for a more inclusive and prosperous future for New York businesses. Together, the proposed set of changes will help businesses find space and grow, support entrepreneurs and freelancers, boost growing industries, and enable more vibrant streetscapes and commercial corridors. City of Yes for Economic Opportunity is the second of the Adams administration’s three “City of Yes” initiatives — the first being “City of Yes for Carbon Neutrality,” and the third being “City of Yes for Housing Opportunity.”
“When we came into office two years ago, we committed to turning New York City into a ‘City of Yes.’ We unveiled three landmark proposals to transform our city’s zoning laws and help combat climate change, unleash job growth, and build new housing,” said Mayor Adams. “With today’s passage of ‘City of Yes for Economic Opportunity,’ we have taken another historic step to bring our city’s zoning code into the 21st century and build a more inclusive and prosperous economy. Our proposal will replace outdated restrictions on businesses with new rules that support sustainable job growth, help businesses open and expand, and fill vacant storefronts. After decades of inaction, it will move our city’s zoning code into the future, laying the foundation for long-term growth across all five boroughs. Quite simply, it will take us from a rotary phone mentality and bring us into the smart phone world. Thank you to our partners in the City Council — including Speaker Adams and Chairs Riley and Salamanca — who delivered a landmark win for all New Yorkers with today’s vote. However, our work is not yet complete. Later this year, the City Council will vote on the third and final piece of our plan: ‘City of Yes for Housing Opportunity.’ By building a little more housing in every neighborhood, we can get significantly closer to our goal of building 500,000 new homes across New York City by 2032 and finally tackle our city’s housing crisis. We look forward to working with the City Council to deliver this important win for New Yorkers.”
“The zoning of 1961 cannot serve the needs of 2024,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “With today’s historic approval, we are replacing antiquated regulations with new, commonsense rules that will boost small businesses, growing industries and commercial corridors. Thank you to Speaker Adams and the members of the City Council for their partnership. Today, we’re proving once again that New York is a ‘City of Yes.’”
“Today marks a significant milestone for New York City's economic future,” said First Deputy Mayor Sheena Wright. “With the approval of 'City of Yes for Economic Opportunity,' we're not just embracing change, we're championing it. These zoning changes reflect our commitment to fostering a more inclusive and vibrant city, where businesses can thrive, entrepreneurs can flourish, and our communities can grow. As we pave the way for a more prosperous future, let's remember: in the ‘City of Yes,’ opportunities abound for all New Yorkers.”
“This is a momentous day for New York City. For too long, our mom-and-pop shops, entrepreneurs, and commercial corridors have been hindered by our own antiquated rules,” said CPC Chair and DCP Director Gardonick. “The newly-adopted zoning changes will reduce storefront vacancies, create more vibrant neighborhoods, and generate economic success across all five boroughs. Thank you to the City Council for supporting this important initiative and charting a path for our city’s future prosperity.”
“The ‘City of Yes’ is a landmark proposal driven by the vital role of small businesses in powering our city's economy, and the ‘City of Yes for Economic Opportunity,’ builds on this foundation, positioning New York City as the leader in growth and quality of life,” said New York City Department of Small Business Services Commissioner Kevin D. Kim. “By modernizing our zoning laws, we are creating new opportunities and empowering our small businesses to reach their full potential. We thank the New York City Council and DCP Director Dan Garodnick for their pivotal role in passing this milestone legislation and ensuring the success of our communities.”
“‘City of Yes for Economic Opportunity’ is a huge opportunity for the Adams administration to take a major step forward to drive economic growth across New York City, while enabling more vibrant public spaces and revitalizing some of our commercial corridors,” said New York City Economic Development Corporation President and Chief Executive Officer Andrew Kimball. “I applaud the City Council for recognizing the importance of these zoning changes, which will be critical to growing small businesses, and the Department of City Planning, and so many other city agencies, for the enormous amount of work they put in and for their continued advocacy for this critical initiative.”
“The Office of Nightlife at SBS extend our thanks to the City Council for passing the ‘City of Yes for Economic Opportunity’ proposal,” said Office of Nightlife (ONL) Executive Director Jeffrey Garcia. “In our 24/7 city — the birthplace of hip-hop, salsa, and disco — the freedom to dance is essential. These changes overturn outdated rules from the 1960s and fulfill a key priority from ONL’s 2021 recommendations to finally repeal the last vestiges of the discriminatory Cabaret Laws. We are grateful to Mayor Adams, the City Council, and countless advocates across the nightlife community who continue to push for equal access to dancing for all New Yorkers. This process is the culmination of a true collective effort.”
“I am glad to see the passage of ‘City of Yes for Economic Opportunity’ by the City Council,” said Mayor’s Office of Urban Agriculture Executive Director Qiana Mickie. “These smart, forward-looking zoning changes will allow a greater breadth of urban agriculture business development, creating exciting new economic opportunities for the food and agriculture sector in New York City. The ‘City of Yes for Economic Opportunity’ directly supports the efforts of our office to advance environmental justice and food equity, while creating opportunity in the green economy. I applaud the New York City Department of City Planning and the City Council for approaching this process in such a thoughtful, considered manner.”
“As the agency responsible for enforcing the city’s zoning resolution, we are glad that the City Council agrees that zoning changes are an important piece of the puzzle to fill up empty storefronts by encouraging New Yorkers to start and grow their small businesses,” said New York City Department of Buildings (DOB) Commissioner Jimmy Oddo. “Our small business team here at DOB is ready to assist new entrepreneurs looking to set up shop in the five boroughs with free consultations on storefront renovation projects and guidance on getting into compliance with city building regulations.”
“The New York City Housing Authority extends its congratulations to the Adams administration for the passage of ‘City of Yes for Economic Opportunity,’” said New York City Housing Authority (NYCHA) Chief Executive Officer Lisa Bova-Hiatt. “Just as it could with the ‘City of Yes for Housing Opportunity’ proposal, rethinking New York City’s zoning policies allows for a tremendous amount of innovation and growth, and we’re excited for the possibilities in store for New Yorkers as a result, particularly those who call NYCHA home, many of whom are small business owners and hard workers with entrepreneurial spirits.”
“‘City of Yes for Economic Opportunity’ will make it possible for even more food businesses to thrive,” said Mayor's Office of Food Policy Executive Director Kate MacKenzie. “From new opportunities for food enterprises in storefronts to expanded opportunities for urban growing, these zoning changes will support improved neighborhood food security and good food jobs.”
City of Yes for Economic Opportunity includes commonsense policy changes that would expand options for businesses to locate near their customers, support growing industries and sectors, foster vibrant neighborhoods and commercial corridors, and provide businesses with clear and modern zoning rules. Among these changes are policies to:
- More than double the space available for clean manufacturing, allowing small producers, such as microbreweries, apparel makers, and ceramic shops, to open and grow in commercial corridors in all five boroughs for the first time.
- Create new zoning tools to allow more than 17,000 businesses in industrial areas that are currently prevented from adding space to grow their businesses.
- Expand the number of businesses able to open in ground- and upper-floor spaces.
- Eliminate outdated rules that prohibit dancing, comedy, and open mic nights in restaurants and venues in commercial areas, and instead govern venues by size and volume.
- Update 1960s-era rules that limit where amusements are allowed, so experiential retail, such as virtual reality arcades, and family-friendly activities can be located closer to where New Yorkers live.
- Modernize how zoning regulates laboratories so life sciences research can flourish in offices and near universities and hospitals.
- Remove outdated restrictions on indoor urban agriculture.
- Fill empty storefronts by fixing decades-old rules that ban businesses from setting up in certain long-term vacant facilities.
- Allow a wider range of businesses, including barbers and interior designers, to be based in homes.
- Foster cleaner and safer streets and support local small businesses by helping them expand local delivery capacity.
- Facilitate adaptive reuse of commercial buildings by modernizing loading dock rules.
City of Yes for Economic Opportunity is the second of Mayor Adams’s three “City of Yes” initiatives to foster a greener, more affordable, and more prosperous city by updating outdated zoning rules. The first — City of Yes for Carbon Neutrality — was adopted by the City Council in December. The third — City of Yes for Housing Opportunity — was referred for public review by community boards and borough presidents this spring and will be put to a vote by the City Council before the end of the year.
The Adams administration has made continued investments and policy reforms to support small businesses across New York City. In addition to introducing these zoning changes, the administration has also committed to several quality-of-life improvements for New Yorkers related to modern businesses. These include policies to address the impact of “last mile” shipping facilities, investments in alternative clean delivery modes, and investments in industrial developments, such as clothing manufacturing and food production, alongside the upcoming Industrial Strategic Plan.
Under the Adams administration, over $265 million in grant and loan funding has been facilitated or administered to small businesses through SBS. Last month, Mayor Adams announced the launch of the “NYC Future Fund,” a $10 million investment to seed the city’s next major small business loan fund. The fund will accelerate the growth of hundreds of new small businesses in New York City by addressing the gap in access to affordable capital faced by small business owners, particularly early-stage businesses, as well as Black, indigenous, and people of color (BIPOC) and women entrepreneurs that otherwise often cannot obtain traditional bank financing. The fund builds on the success of the landmark $85 million “NYC Small Business Opportunity Fund,” which provided loans of up to $250,000 to over 1,000 businesses, with 69 percent of loans going to BIPOC-owned businesses.
“The council made modifications to the City of Yes for Economic Opportunity to strike the right balance of promoting economic growth and opportunities for local businesses while protecting neighborhoods and safeguarding quality of life for all New Yorkers,” said New York City Council Speaker Adrienne Adams. “Our efforts will preserve manufacturing districts and enhance the industrial sector, which provides good-paying jobs and can prepare our city for a clean energy future. I'm proud that the council has also secured crucial commitments for an aggressive plan to confront the serious environmental and health impacts of last-mile facilities and trucking, which disproportionately impact outer-borough communities of color. The additional investments for better enforcement of buildings, nightlife establishments, and unlicensed smoke shops also were pivotal commitments secured as part of the council’s efforts. This balanced approach is responsive to communities and ensures a plan that can propel the city's economy to the benefit of all New Yorkers and neighborhoods.”
“With our city’s commercial zoning regulations having gone unchanged since 1961 – hindering economic success – the City Council’s approval of City of Yes for Economic Opportunity proposal provides the opportunity to strike the right balance in promoting such desperately-needed economic growth,” said New York City Councilmember Rafael Salamanca. “As chair of the Committee on Land Use, I am proud to have worked alongside Speaker Adams and my colleagues to have negotiated a commitment for a special permit to address the issue of last-mile facility operations, and protections for our communities against micro-distribution sites in residential areas. While it is important to protect our business communities, we cannot overlook the historic environmental justice issues that have plagued districts, like mine in the South Bronx, with high pollution and asthma rates for far too long.”
“As Chair of the Subcommittee on Zoning and Franchises, it is imperative that we stand committed to updating our city's zoning rules to meet the changing needs of our neighborhoods,” said New York City Councilmember Kevin C. Riley. “Today's vote on City of Yes for Economic Opportunity is a key step in modernizing these outdated laws to fit our diverse economy. With a shared commitment to community interests for the advancement of our city, we at the council recognize the collaboration with Mayor Adams and the administration to achieve the right balance between protecting quality of life and fostering economic growth and local businesses. Given that many commercial zoning regulations have remained unchanged since 1961, this milestone highlights the significance of unified efforts for the benefit of New Yorkers.”
“Today’s passage of the City of Yes Zoning for Economic Opportunity text amendment is an incredibly necessary measure that I am proud to support alongside my colleagues in the City Council,” said New York City Council Majority Leader Amanda Farías. “Bolstering our commercial corridors, supporting small business growth, and strengthening M-Zones are all essential parts to supporting our local economies and creating sustainable careers. This vote comes after tireless work in our communities where the City Council recommended several zoning modifications to meet community’s needs, it is with great pleasure that I can say the Zoning for Economic Opportunity does exactly that.”
“‘City of Yes’ will provide the regulatory flexibility to stimulate the development of street-level retail corridors and support the growth and vibrancy of our local businesses,” said Jessica Lappin, president, Alliance for Downtown New York. “We are encouraged to see tangible progress toward the realization of this much needed program that can help our small business community reach its economic potential.”
“Today marks a significant milestone for our city with the passage of the ‘City of Yes for Economic Opportunity,’” said Lisa Sorin, president, The Bronx Chamber of Commerce. “By modernizing our zoning regulations, we can not only activate empty storefronts, but also create fertile ground for businesses and entrepreneurs to thrive. This is a bold step towards reducing retail vacancies and ensuring our commercial corridors are bustling hubs of innovation and community. These policy changes will empower small producers, support growing industries, and bring a renewed vibrancy to our neighborhoods – let's continue to embrace change and build a stronger, more resilient economy for all New Yorkers.”
“The Morris Park Business Improvement District applauds New York City Council taking today a crucial step forward in greenlighting a unique opportunity to re-fuel and bring new resources to the city's commercial corridors,” said Dr. Camelia Tepelus, executive director, Morris Park Business Improvement District. “In Morris Park, we are confident that the ‘City of Yes for Economic Opportunity’ will strengthen our position as a leading job center in life sciences and an engine for continued job creation and innovation in the Bronx. We are particularly grateful to the teams of DCP for their extensive outreach and guidance to the business community, and thank the multi-agency teams that conceptualized this transformative step forward for the city's commercial corridors.”
“I have always advocated that dance is an essential means of human expression, and protected by the First Amendment,” said Jerry Goldman, board chair, New York Dance Parade. “I am very pleased that the City of New York has finally repealed the last vestiges of the archaic and unfair laws regulating dance via the adoption of the ‘City of Yes for Economic Opportunity’ legislation!”
“I'm thrilled that after 20 years advocating with LegalizeDance.org, ‘City of Yes for Economic Opportunity’ will revitalize marginalized communities through dance, all in a responsible way,” said Greg Miller, coalition coordinator, LegalizeDance.org. “This opens the door for new expressions of movement and cultural vibrancy to flourish across the city!”
“As champions for over 1.3 million freelancers and small business owners across the five boroughs, we at the Freelancers Union are thrilled to commend Mayor Eric Adams, the Department of City Planning and the City Council, for their collaborative efforts on the ‘City of Yes for Economic Opportunity’ initiative,” said Freelancers Union Executive Director Rafael Espinal. “This pivotal move addresses key challenges our members face, such as securing affordable business spaces and fosters growth for independent entrepreneurs. We celebrate this milestone and look forward to its positive impact on our city.”
“The Garment District Alliance is proud to support the ‘City of Yes for Economic Opportunity,’” said Barbara A. Blair, president, the Garment District Alliance. “In addition to encouraging new growth in New York City’s economic sector, this initiative also eliminates long-standing hurdles for local businesses – ultimately enabling them to not just survive, but thrive. We applaud the Department of City Planning for their forward-thinking approach.”
“The NoHo Business Improvement District hears from our stores on the ground floor that flexibility, clear rules, and zoning regulations that work for modern businesses are essential for New York City's commercial corridors to thrive into the future,” said Cordelia Persen, executive director, NoHo Business Improvement District. “‘City of Yes for Economic Opportunity’ is key to ensuring our stores have the zoning framework they need to start, grow, and succeed.”
“We’re delighted with the full City Council's approval of the ‘City of Yes for Economic Opportunity’ initiative,” said Carlo Scissura, president and CEO, New York Building Congress. “This significant reform will ease the way for businesses to flourish and expand across New York City, enhancing our city’s economic prosperity. We applaud the City Council for their forward-thinking decision to eliminate antiquated zoning laws that have impeded economic progress. Together with Mayor Adams' other initiatives, including those aimed at expanding housing opportunities, our members are ready and excited to contribute to building a fairer, more prosperous, and sustainable future for all New Yorkers.”
“The New York State Latino Restaurant Bar & Lounge Association is excited that the New York City Council has approved the mayor’s ‘City of Yes for Economic Opportunity’ proposal,” said Sandra Jaquez, president of the New York State Latino Restaurant Bar & Lounge Association. “The zoning amendments passed today, in particular those that end the dancing ban, will strengthen our minority-owned establishments by allowing restaurants and bars to expand their businesses, build their customer base, and champion the culture of many establishments where dancing and music are a focal point. Thank you to Mayor Adams and his administration, as well as the leadership of Speaker Adams and the entire City Council for getting the ‘City of Yes for Economic Opportunity’ over the finish line and providing the hospitality industry with support.”
“‘City of Yes for Economic Opportunity’ will remove unnecessary and obsolete zoning regulations, encouraging business development and job creation across all five boroughs,” stated Kathryn Wylde, president and CEO, Partnership for New York City.
“The City of Yes for Economic Opportunity is critical for the revitalization of our neighborhoods and commercial districts,” said Richard R. Buery, Jr., CEO of Robin Hood and Co-Chair of the “New” New York Panel. “Congratulations to the City Council for approving the Mayor’s proposals to abandon these antiquated zoning restrictions that stand in the way of entrepreneurial activity and expanded opportunity for all New Yorkers.
“We are thrilled that ‘City of Yes’ has reached this next milestone so that it can implement a critical set of reforms to ensure that our businesses have clear and flexible zoning regulations allowing them to adapt, innovate and thrive,” said Tom Harris, president, Times Square Alliance. “Congratulations to City Hall, the City Council, and the Department of City Planning for all their work to make this come to fruition.”
“Union Square is a unique live-work-play neighborhood that offers rich transit access, robust foot traffic, and dynamic public spaces,” said Julie Stein, executive director, Union Square Partnership. “Today, we celebrate the new economic opportunities that ‘City of Yes’ is unlocking for our commercial landscape, which add to the neighborhood's desirability. We are proud to be a place for all New Yorkers to enjoy and will continue to collaborate with the city, our partners, and stakeholders to ensure the most vibrant future for Union Square.”
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