Grand Hyatt Redevelopment May Bypass City Review: Report

MIDTOWN MANHATTAN, NY — A plan to tear down Midtown Manhattan's Grand Hyatt hotel and redevelop the site into a skyscraper may be able to bypass the city review process with the help of New York Gov. Andrew Cuomo, according to a report.

Cuomo may elect to direct the project, planned by developers TF Cornerstone and RXR Realty’s Scott Rechler, through the state's land use review process, Politico first reported Tuesday. State officials claim that even though the property is in the middle of New York City, the state should review the project because Empire State Development controls the site through a lease with the city, according to the report.

A spokesperson for New York Mayor Bill de Blasio told Politico that "the City has to have a seat at the table in planning next steps," for the redevelopment.

Developers are planning a massive 2 million-square-foot mixed use development featuring office space, retail and a new hotel at the site of the Grand Hyatt. The hotel was one of Donald Trump's first forays into Manhattan real estate in the '70s, but Trump recently sold his investment in the building.

The new development is made possible due to a rezoning of the East Midtown office district passed by the City Council in 2017. Other developments such as J.P. Morgan's planned new headquarters at 270 Park Avenue and Macklowe Properties' "Tower Fifth" are also products of the rezoning plan.

Air rights purchased from the Grand Central Terminal site in 2016 will allow the new development on the site of the Grand Hyatt Hotel to rise to skyscraper levels.

Read the full Politico report here.