NYC groups sue to stop tower construction on South St. Seaport lot

Lower Manhattan groups have filed a lawsuit in a last-ditch effort to block the construction of a new tower in the South Street Seaport Historic District.

Development company Howard Hughes Corp. in May gained approval from the city Landmark Preservation Commission to construct the building, which is slated to be erected on the site of a 60-year old parking lot at 250 Water St.

The company plans a 26-story, 324-foot-tall tower that includes offices and 270 apartments — at least 70 of which would be affordable units with average rents that are 40% of the area’s median income.

But the South Street Seaport Coalition and other downtown residents seek a Manhattan Supreme Court judge to issue an injunction halting the development, arguing the LPC held closed-door meetings with Howard Hughes Corp. to coordinate the building’s approval. The lawsuit filed Friday references previous failed attempts by previous owners of the parking lot to erect a building in its place.

The parking lot is on the edge of the historic district, which was established by the city in 1977. Any construction within the area requires approval from the LPC.

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“Landmarks Preservation Commission had no rational basis to conclude that it would be appropriate for and consistent with the effectuation of the Landmarks Preservation Law to permit a developer to build a 324-foot tower inside the district, and it was legally erroneous, arbitrary and capricious, and an abuse of discretion for the Landmarks Preservation Commission to do so,” the lawsuit states.

Representatives from Howard Hughes last year said the building would cost $850 million to build, and that the company would invest $50 million as a funding boost for the South Street Seaport Museum.

City officials said they would review the lawsuit but did not comment further.

Howard Hughes spokesman James Yolles said the company followed normal procedures in seeking approval from the LPC.

“We are confident that this lawsuit is meritless and the court will agree that the Landmarks Preservation Commission’s approval of our project was proper and made in full accordance with the Landmarks Law,” said Yolles. “Supporters around the neighborhood and across the city agree with transforming the parking lot at 250 Water Street into an architecturally distinguished building that is appropriate to the Historic District.”

The building would neighbor other high rises on the southern end of Manhattan — and would block the waterfront views of some nearby residents and property owners.

The South Street Seaport Coalition also filed a lawsuit against the LPC last year in an effort to block the project before it gained City Council and LPC approval. Manhattan Supreme Court Judge Arthur Engoron in October dismissed the lawsuit, stating the LPC had not approved the project at the time.