In January of 2023, the “M-Zone Coalition” was formed by a collection of Council Members, Borough Presidents, business advocates, and community leaders who recognized the importance of New York’s industrial sector. Council Member Jennifer Gutierrez, who represents the third-largest industrial business zone (IBZ) in the city, organized and led this coalition in response to the Adams Administration’s announcement of introducing the text amendment Zoning for Economic Opportunity (ZEO) as part of his City of Yes initiatives. He aimed to enhance economic activity by removing outdated zoning restrictions and improving conditions for local businesses and commercial districts in NYC.

It was the M-Zone coalition who recognized the need to address New York’s industrial sector, crucial for daily functions in our city. They organized efforts to persuade the Department of City Planning to include provisions on manufacturing zoning and infrastructure that would promote renovation and advancement. Replacing existing 1961 “M” districts with new “M” districts is instrumental in safeguarding and fostering core industrial sectors, as it establishes a new framework for land use in industrial areas.

On June 6th, 2024, the M-Zone coalition succeeded. The City Council approved the text amendment, creating three new zoning areas for manufacturing, one of which is a core industrial area that prohibits non-industrial uses.

Additionally, the city agreed to work on a text amendment to establish a special permit requirement for Last Mile warehouses, aimed at regulating the over-concentration and community impacts of large warehouses operated by e-commerce giants like Amazon within city limits. These efforts were led by Council Member Alea Aviles.

The text amendments are a positive starting point for developing land-use tools that address the challenges of the changing industrial landscape, foster green energy initiatives, and support a thriving, equitable city. 

These hard fought wins are supported by the Industrial Development Strategic Plan that the city council passed in 2023, signaling a comprehensive commitment to revitalizing the manufacturing sector. Local Law 172 of 2023 will require a citywide Industrial Development Strategic Plan to support industrial development, expand and retain industrial businesses and jobs, and ensure coordinated planning for city infrastructure and green energy needs and the efficiency and resiliency of chains for essential goods and services. This plan is required to be completed in 2025 and will also help inform future neighborhood planning and land use actions to apply the new “M” zoning districts created by this text amendment.

New York City is also currently working on the Industrial Development Strategic Plan, which was approved by the City Council last year. Take the survey today: https://www.nyc.gov/site/planning/plans/nyc-industrial-plan/nyc-industrial-plan-overview.page

NEW “M” DISTRICT FRAMEWORK: Three types of zoning areas specifically tailored to manufacturing needs.

• Core Industrial District: Prioritizes the preservation of essential industrial businesses and restricts non-industrial uses. There is currently no appropriate zoning tool to facilitate expansion of heavy industrial uses in IBZs. A new zoning tool should:
  • Allow for increased density where appropriate to support industrial activities (3 or 4 FAR).
  • Ensure the availability of essential industrial land for core industrial uses: 
    • Limit retail and office uses to small sizes/ accessory to industrial. 
    • Restrict entertainment and night-life.
  • Right-size parking and loading requirements. 

• Mixed/Transition District: Supports an active and sustained mix of industrial and commercial uses. Office and retail uses have lower overhead (and lower wages!) and can often pay higher rent than industrial uses, which generate greater economic value. New zoning tools can foster a dynamic mix of industrial and commercial activity:
  • Allow for increased density, with a dedicated industrial set-aside. 
  • Monitor and expand incentives for industrial space like the Industrial Business Incentive Area (IBIA) special permit.
  • Require ground floor industrial uses in certain conditions.
  • Right-size parking and loading requirements.

• Growth District: Encourages the development of new loft-style buildings in areas closest to transit and residential communities. Allow for flexible growth of industrial and commercial businesses (including office, retail, and nightlife/entertainment), right-size parking and loading requirements, and encourage development of new loft-style buildings in IBZ areas closest to transit and residential uses.
  • Currently, the ZEO text amendment would create ONLY this district – the most flexible district with the fewest protections for industrial uses. We support the creation of this district ONLY if the Core Industrial and Mixed/ Transition districts are also created.

WHY IS THIS IMPORTANT? 

New York City’s industrial sector impacts our economy and the people who contribute to and benefit from it — which is all of us.

EMPLOYMENT:

• Construction, manufacturing, transportation and warehousing, wholesale trade, utilities, and waste management sectors employ 16% of the NYC private workforce. (2018 QCEW Annual)
• Industrial employment is up 14% since 2010 (ANHD industrial jobs coalition) 
• Average annual manufacturing salaries pay nearly $20,000 more than retail, and nearly twice as much as food/beverage annual salaries. (2020 QCEW Annual, analysis by Industrial Jobs Coalition)
• The industrial sector employs 550,000 New Yorkers in 48,000 industrial businesses, with an average wage of $87,748 (QCEW, 2021/ CGM COMMITTEE HEARING)
• 33% of all NYC jobs that pay > $50,000 and do not require a college degree are industrial jobs. (QCEW, 2021)
  • 63% of industrial jobs are available to people who do not have a college degree (ANHD industrial jobs coalition)

MINORITY / POC EMPLOYMENT:

• 81% of industrial workers are people of color (anhd enhanced business areas study)
  • 41% of industrial workers are Brown, 22% are Black, and 18% are Asian
• 52% of all industrial workers are immigrants or foreign born (CGM COMMITTEE HEARING)

ECONOMY 

• Every dollar in the final sale of manufactured products supports $1.33 in additional economic output (US Bureau of Economic Analysis)
  • More than double the multiplier of sectors like retail ($0.66) and professional/business services ($0.61)
• Manufacturing had an output of $71.06 billion dollars in 2019, making up 4.01% of total gross state profit. (https://www.nam.org) (two graphs from this website)