How can large scale retail locate in SoHo given existing size restrictions?

• Zoning Guidebook FAQ

Small and large scale retail are largely defined in relation to their size and type of use. Smaller scale retail is meant to meet local needs and occupy less than 10,000 square feet. Examples of small retail include barber shops and banks. Large scale retail generally refers to stores that serve a wider geographic area and that exceed 10,000 square feet. Examples of large scale retail include department stores and national retail chains. Due to idiosyncrasies in the Zoning Resolution, some retail uses have no size restrictions, including hardware, shoe, sporting goods, and stationary stores.

Large scale retail is permitted to locate in SoHo via three regulations or processes:

• A special permit, which is a discretionary action granted by the NYC Department of City Planning (DCP) that allows a use that is not otherwise authorized. Specifically, the Large Retail Establishments special permit allows retail over 10,000 square feet to occupy a ground floor space.
• A variance, which is a discretionary action granted by the NYC Board of Standards and Appeals (BSA) to relieve a property owner an undue hardship caused by zoning.
• Grandfathering, which is a term describing when a use in a pre-existing building was active and occurring prior to current zoning regulations and is therefore allowed to remain in place.

In order to avoid getting a special permit for large scale retail, developers or businesses can break up establishments which are greater than 10,000 square feet into multiple “stores” with spaces of less than 10,000 square feet located within the larger establishment. For example, an establishment can be divided into smaller stores such as a women’s clothing store and a men’s clothing store – each operated separately from the other. Some stores used this approach based on DOB guidance from the 2000s, but the agency has since indicated that this approach is no longer permitted.