St. John's Terminal Project Gets Go-Ahead: Developer to Pay $100M for Pier 40 Air Rights

WEST VILLAGE, NY — A developer's ambitious plan, in collaboration with city officials and neighborhood preservationists, to transform the more than 1 million-square-foot St. John's Terminal building at 550 Washington St. into a sprawling, five-building residential and retail complex, got the green light from the New York City Council on Thursday afternoon.

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Specifically, the council voted to let the project's developers, Atlas Capital Group and Westbrook Partners, purchase the air rights above nearby Pier 40 in Hudson River Park — the last thing they needed to fulfill their sky-high vision for the multiple-block development between West Houston and Spring Streets.

A rendering of this vision, via COOKFOX architects:

Rights to the airspace above and around Pier 40 were sold for $100 million — money that will go toward repairing the decrepit pier.

"Don't think we've ever had a private app more complex than 550 Washington," Alicia Glen, the city's deputy mayor for housing and economic development, tweeted after Thursday's vote. "Huge win for [affordable] housing, mixed-use nabes and protecting Pier 40!"

St. John's Terminal was originally constructed as the Southern end point of the High Line. In its place, the property's developers — Atlas Capital Group and Westbrook Partners — plan to construct five buildings, four of them residential. The council negotiated to ensure that 30 percent of the total 1,586 residential units will be affordable, with 175 designated for low-income seniors and the rest for low- and moderate-income families.

In addition to creating a bunch of new affordable housing in an increasingly unaffordable part of Lower Manhattan, the developers also agreed to reduce the number of parking spaces they originally asked for; avoid renting out retail space to big-box stores; and build a grocery store and a 15,000-square-foot public recreation center.

City politicians also agreed to chip in $14 million — on top of the $100 million from developers — toward the Hudson River Park Trust's repair fund for the crumbling Pier 40.

Thursday's historic deal, four years in the making, was brokered by City Council Member Corey Johnson, whose district includes Pier 40 and the St. John’s site.

Mayor Bill de Blasio released a statement of congratulations: "Today’s vote for 550 Washington, a project that includes important funding for Pier 40’s Hudson River Park, is a huge win for the community and New York City," he said. "I congratulate Speaker Melissa Mark-Viverito, Council Member Corey Johnson and all those who worked so hard to ensure that any new development serves the needs of their community.”

Although the deal was greeted mostly with enthusiasm, three council members decided to vote it down. One of them, Flatbush representative Jumaane Williams, argued that housing at the new 550 Washington should be even more affordable.

In another significant (and related) city vote on Tuesday, the Landmarks Preservation Commission approved a new, 10-block historic district in the wedge of neighborhood between St. John's Terminal and downtown SoHo.

“Obviously, I am quite pleased at the outcome as it pertains to the development project,” Michael Schneider, from the organization Pier 40 Champions, told The Villager, a local news site. “In addition, the changes that came at the last minute are quite welcome. Corey Johnson did a fantastic job and raising $14 million for the pier from the city was really a wonderful surprise."

“However,” Schneider said, “lest everyone celebrate too soon, I am still a bit concerned that in fixing Pier 40, our 15 acres of street-level fields remain the focal point. I understand Pier 40 offers some excellent business opportunities for the private sector. But to us, it’s not about the money but what the money is used for. Our children make this the community it is and they deserve the same thing all kids who live outside of the city take for granted — going out and playing ball. Making money for the sake of making money just doesn’t compare. I trust the Hudson River Park Trust and believe they will do the right thing in fixing Pier 40. Fingers crossed.”

Renderings via COOKFOX