Developer Halts Construction of Dutch Kills Hotel, Seeks Equity Partner

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The developer of a controversial hotel at 39-35 27 Street in Long Island City’s Dutch Kills neighborhood has halted construction as it seeks a new equity partner. Steven Baharestani of Dutch Kills Partners LLC told Brownstoner that the company has withdrawn its building application for now. The Department of Buildings issued a stop work order on the site in March because the application was withdrawn.

Dutch Kills Partners LLC gained approval to build a nine-story, 62-unit hotel back in 2007. The developer has since bought a neighboring building, 39-31 27 Street, and now plans to expand the hotel to around 80 units when it gets more financing, said Baharestani.

This isn’t the first time the project has been delayed. The city rezoned the area in October 2008 after construction had already begun, and the hotel was slated to be 24,713 square feet, or around 14,000 square feet more than the new zoning, according to New York Law School’s CityLand newsletter. The rest of the street has low-rise residential homes.

After the rezoning, the developer sought approval from the Board of Standards and Appeals to complete the project with the higher density. The developer argued that it had already spent $800,000 on the project and reducing the size to comply with the new zoning would result in a $2 million loss. Despite opposition from local groups, the board ruled in favor of the developer and grandfathered the hotel under the older zoning. But three years later, the project remains only partially finished. Baharestani said there wasn’t a timetable for when work would resume. GMAP

A photo of the stop work order after the jump.
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Photos by Roland Li