NYC Mayor Bill de Blasio Drops Broadway Air-Rights Plan

NYC Mayor Bill de Blasio has scrapped proposed legislation that would have given the city a 20 percent cut of any air-rights profits in Manhattan's Theater District, reports Crain's New York.

Air-rights have to do with the space above Broadway theaters, which the venues are allowed to sell to property owners in the Theater District. The city currently takes a portion of these profits, which are added to a fund that goes toward supporting emerging artists and theatre companies.

The de Blasio administration abandoned the plan after City Council members reached an impasse on a floor price for the sales. Theater owners, who are currently playing a flat fee into The Theatre Subdistrict Fund (which has garnered $9.6 million so far), would have instead given 20 percent of any sales to the city, with a minimum price per square foot of $346.

The City Council and Real Estate Board of New York opposed the floor price, arguing it could keep theaters from being able to sell during economic downturns because of inflated prices. A City Council spokesperson said in a statement that the council felt de Blasio would be "depriving nonprofit theater groups of additional resources to support their mission."

While many theaters currently take risks on Broadway shows that often fail to recoup, theatre owners such as Jujamcyn, Shubert, and Nederlander sometimes stay afloat due to millions of dollars in profit from air-rights. As historical landmarks, the theaters cannot be repurposed and turned into more lucrative venues such as retail stores or office space. The air-rights give the theaters a greater opportunity for profit.

Photo Credit: Walter McBride