The Chairperson of the City Planning Commission shall allow, by certification, a transfer of development rights from zoning lots occupied by landmark buildings or other structures within the East Midtown Subdistrict to a qualifying site, provided that the provisions of this Section are met.

(a)        The transfer of development rights shall be subject to the following conditions:

(1)        For qualifying sites in the Grand Central Transit Improvement Zone Subarea, or the Other Transit Improvement Zone Subarea, as shown on Map 2 (East Midtown Subdistrict and Subareas), the applicant shall obtain a certification pursuant to Section 81-641 (Additional floor area for transit improvements on qualifying sites) prior to, or in conjunction with, meeting the requirements of this Section.

(2)        The maximum amount of floor area that may be transferred from a granting lot shall be the applicable basic maximum floor area set forth in Section 81-64 (Special Floor Area Provisions for Qualifying Sites), less the total floor area of all existing buildings on the landmark zoning lot, and any previously transferred floor area. In no event shall a granting lot transfer any previously granted bonus floor area received for subway station improvements, publicly accessible open areas or the provision of district improvements pursuant to the provisions of this Chapter, or any preceding regulations.

(3)        For each receiving lot, the increased floor area allowed by the transfer of development rights pursuant to this Section shall not exceed the amount resulting in the maximum floor area ratio set forth in Row D of the table in Section 81-64.

(4)        Each transfer, once completed, shall irrevocably reduce the amount of floor area that may be developed or enlarged on the granting lot by the amount of floor area transferred. If the landmark designation is removed from the landmark building or other structure, the landmark building or other structure is destroyed or enlarged, or the zoning lot with the landmark building or structure is redeveloped, the granting lot may only be developed or enlarged up to the amount of permitted floor area as reduced by each transfer.

(5)        Prior to the issuance of a building permit, as set forth in paragraph (c) of this Section, the owners of the granting lot and the receiving lot shall submit to the Chairperson a copy of the transfer instrument legally sufficient in both form and content to effect such a transfer. Notice of the restrictions upon further development or enlargement of the granting lot and the receiving lot shall be filed by the owners of the respective lots in the Office of the Register of the City of New York (County of New York). Proof of recordation shall be submitted to the Chairperson.

Both the transfer instrument and the notices of restrictions shall specify the total amount of floor area transferred and shall specify, by lot and block numbers, the granting lot and the receiving lot that are a party to such transfer.

(6)        Prior to the issuance of a building permit, as set forth in this Section, a non-refundable contribution shall have been deposited by the applicant into the Public Realm Improvement Fund. Such contribution shall be equal to the greater of:

(i)        20 percent of the sales price of the transferred floor area; or

(ii)        an amount equal to 20 percent of the Public Realm Improvement Fund Development Rights Valuation multiplied by the amount of transferred floor area.

(b)        An application filed with the Chairperson for certification pursuant to this Section shall be made jointly by the owners of the granting lot and the receiving lot. The following items shall be submitted to the Chairperson as part of an application for certification:

(1)        for qualifying sites in the Grand Central Transit Improvement Zone Subarea, or the Other Transit Improvement Zone Subarea, materials that are sufficient to demonstrate compliance with the provisions of Section 81-641;

(2)        site plans and zoning calculations for the granting lot and receiving lot showing the additional floor area associated with the transfer, and any such other information as may be required by the Chairperson;

(3)        materials to demonstrate the establishment of a program for the continuing maintenance of the landmark building or other structure;

(4)        a report from the Landmarks Preservation Commission concerning the continuing maintenance program of the landmark building or other structure; and

(5)        for those receiving lots that are contiguous to a lot occupied by Grand Central Terminal or a lot that is across a street and opposite the lot occupied by Grand Central Terminal, or, in the case of a corner lot, one that fronts on the same street intersection as the lot occupied by Grand Central Terminal, a report from the Landmarks Preservation Commission concerning the harmonious relationship of the development or, where permitted, enlargement to Grand Central Terminal.

All applications pursuant to this Section shall be referred to the affected Community Board, the local Council Member and the Borough President of Manhattan. No certification shall be granted prior to 60 days after such referral.

The Chairperson shall certify to the Department of Buildings that a development or, where permitted, an enlargement on a qualifying site is in compliance with the provisions of this Section only after the following have been received:

(a)        the instrument of transfer and notice of restrictions required by paragraph (a) of this Section have been executed and recorded with proof of recordation provided to the Chairperson;

(b)        documents confirming the sale price have been provided to the Chairperson, including, but not limited to, the real property transfer tax return form recorded with the New York City Department of Finance and the details of consideration schedule; and

(c)        payment of a non-refundable contribution to the Public Realm Improvement Fund in the amount required by paragraph (a) of this Section has been made.

Such certification shall be a precondition to the filing for or issuing of any building permit allowing more than the basic maximum floor area ratio for such development or, where permitted, enlargement on a qualifying site. Additional provisions are set forth in Section 81-686 for applicants undertaking a sidewalk improvement immediately adjacent to their qualifying site.  

A separate application shall be filed for each transfer of development rights to an independent receiving lot pursuant to this Section.