The legal dispute over the Elizabeth Street Garden in Nolita has been temporarily halted. Developers aiming to build affordable housing on the site paused their lawsuit against New York City over the weekend, according to a report from Crain’s. The pause is linked to ongoing negotiations with city officials about relocating the project to another site.
Talks are centered around 22 Suffolk Street, which is about half a mile from Elizabeth Street Garden and smaller in size. Council member Christopher Marte has expressed support for an all-affordable development of 200 units at this alternative location.
First Deputy Mayor Randy Mastro stated, “We are pleased to have reached an agreement with the development team that brought this lawsuit that puts the litigation on pause until after the new year and withdraws the application for a temporary restraining order regarding the garden’s status.”
Despite suspending legal action, developers remain opposed to transferring control of the Elizabeth Street Garden lot to the Parks Department.
A week ago, Pennrose, Riseboro, and Habitat for Humanity New York City and Westchester filed a lawsuit claiming that Mayor Eric Adams improperly designated the site as a city park. The developers were originally selected nearly ten years ago to construct 123 senior housing units under a project called Haven Green.
Their complaint argued that Adams made decisions about future use of the land without following the Uniform Land Use Review Procedure (Ulurp), which they say is required for such changes. City officials countered that Ulurp is only necessary when property moves from city ownership to private hands, not between different city agencies.
Last year, there were expectations that construction would soon begin on Haven Green after long-standing protests and delays. However, Mayor Adams reversed course by deciding not to remove the sculpture garden from its current location. Instead, his administration reached an agreement with Council member Marte: Marte would support rezoning three other sites that could provide 620 affordable apartments—over 400 more than what was planned at Elizabeth Street Garden.
This policy shift drew criticism from several quarters including City Council leaders, housing advocates, developers, and other elected officials.
A decision on whether to grant a preliminary injunction will be made early next year after a new mayor takes office.
