The City Planning Commission by special permit may authorize development rights to be transferred from zoning lots occupied by landmark buildings to other zoning lots proposed for developments or enlargements in accordance with the provisions of Section 74-79 (Transfer of Development Rights From Landmark Sites), as modified by this Section and by Section 81-212 (Special provisions for transfer of development rights from landmark sites).

The limitations on development rights transferred to development sites from landmark sites, including sites of landmark theaters, are set forth in Section 81-212.

In the case of landmarks which are theaters and which are located in the Theater Subdistrict, in addition to the modifications set forth in Section 81-212, the provisions of Section 74-79 are modified as follows:

(a)        “Landmark buildings” shall include buildings which contain interior landmarks as well as buildings which are themselves landmarks.

(b)        In all underlying districts throughout the Theater Subdistrict, "adjacent lots" to which landmark theaters' development rights may be transferred shall be construed to include a contiguous lot or one which is across a street and opposite to another lot or lots which, except for the intervention of streets or street intersections, form a series extending to the lot occupied by the landmark building, all such lots being in the same ownership, fee ownership or ownership as defined under zoning lot in Section 12-10 (DEFINITIONS).

(c)        The provisions of paragraph (c) of Section 74-792 (Conditions and limitations) are further modified to provide that in any underlying district within the Theater Subdistrict, the “adjacent lot” may be developed or enlarged with either a commercial building or a mixed building.

Where development rights are proposed to be transferred and exercised in accordance with the provisions of Section 74-79, as modified by this Section, the Commission, in addition to the findings required in paragraph (e) of Section 74-792, shall find that:

(1)        the series of intervening lots in common ownership leading to the “adjacent lot” include lots, identified by the Commission, which are occupied by “listed theaters” or by uses which directly support neighborhood theater business, such as, but not limited to, rehearsal space, recording facilities or theater costume rental facilities and that such uses will be continued or replaced by other legitimate theaters or theater supportive uses as evidenced by covenants binding the owners of such lots, their successors and assigns to provide for such continuation or replacement; or

(2)        useful circulation improvements or other public facilities will be provided and maintained on one or more of the lots comprising the series of intervening lots to accommodate pedestrian or vehicular traffic generated by legitimate theaters.

The Commission shall require the owner of any intervening lot on which special use restrictions are applicable or on which circulation improvements or other public facilities are to be provided and maintained to sign a written declaration of restrictions setting forth the obligations of the owner, his successors and assigns and providing a performance bond for the completion of any required improvements. The declaration of restrictions shall be recorded in the Office of the Register of the City of New York (County of New York) and the Commission shall be provided with a certified copy.

The provision of Section 74-79 empowering the Commission to grant variations in the front height and setback regulations is modified by the provisions of Sections 81-266 or 81-277 (Special permit for height and setback modifications).

Compliance with the provisions of Section 81-743 (Required assurances for continuance of legitimate theater use) shall be a condition for issuance of a special permit under the provisions of this Section.