Councilmember Ben Kallos called the buffer lot a “sham zoning lot,” created so that developers could skirt the zoning rule known as “tower-on-a-base” that would have constrained the building’s height and design had it legally fronted on E. 88th St. In 2015, DDG Partners sold the buffer lot for $10 to a legally separate company, though both entities were under the same name and developer address, Kallos said.
One factor debated by the BSA commissioners last week was whether the tiny lot could conceivably be sold and built upon in the future. Kallos argued no, explaining the lot is adjacent to what is expected to be the building’s main entrance. Though the building has a Third Ave. address in city records, its condos have been advertised as being on E. 88th St.
“The developer never bothered to hide that the unbuildable lot is a sham,” Kallos said in his testimony to the BSA. “Under the terms of federal and state laws, this transaction would likely be considered a fraudulent conveyance in a foreclosure or bankruptcy proceeding.”