Eldad Gothelf of Kasirer: 5 Questions

Eldad Gothelf has spent a lot of time advocating for property owners, as well as major institutions such as Lenox Hill Hospital and Columbia University, and he knows a thing or two about how the government interacts with the private sector.

So Gothelf, as leader of the real estate practice at government relations firm Kasirer, has a solid grasp on what the major issues are for anyone trying to build in New York City with the blessing or assistance of the government.

Gothelf sat down with Commercial Observer in February and answered five questions about some of the regulatory conditions helping or hurting the city’s growth trajectory, such as zoning changes through programs like the Uniform Land Use Review Procedure (ULURP) or the 485x tax incentive program for housing.

In short, he helps stakeholders in government see eye-to-eye with his clients, and sometimes, vice versa.

This interview has been edited for clarity and length.

Commercial Observer: What are some of the ways you work between the public and private sectors?

Eldad Gothelf: What we sell as a firm is strategic thinking, it’s not just placing a phone call and saying, “Hey, this is a good project, you should say yes.” It is identifying the values of a project and being able to communicate those values and align them with the priorities of decision-makers, so when that stakeholder is stepping up and saying yes to a project, they’re really saying yes to their own priorities.

In order to do that, we both need coalition support. It’s not just one applicant asking for something, but there’s other partnerships that have credibility in the neighborhood and are also advocating for it.

We manage in both directions, telling our clients how they might want to think about amending their proposals or broadening their own partnerships so that it is more inclusive and compelling from a narrative perspective.

With the New York City Charter Revision Commission changes to the land use process passing in November, how is that changing how you work with your clients?

The one that got the most attention was the Affordable Housing Appeals Board, which says that if a local council member is opposed to the project through ULURP, the developer can appeal the decision.

I think that people don’t really know how it’s going to shake out, academically and from an outsider’s perspective. It will be interesting to see how those things play out, but it is unknown exactly what it means until someone tries it.

The first one may not be how they all play out. People will learn from the first one that goes down that path.

With 485x having a number of issues — such as developers capping developments under 99 units to avoid paying higher wages — are there any solutions on the horizon?

We’re not seeing movement for a renegotiation of 485x at the moment. However, this 99-unit problem doesn’t seem to be going away. I think everyone agrees that we can’t solve the housing crisis 99 units at a time given the scale of the problem.

There are a few projects in the pipeline where it seems like 485x does work on a large scale, but each of those potential developments where we expect the tax incentive to move forward on a larger scale have a really unique condition and make it so that it may not be entirely replicable across the board.

So is there a reopening of 485x? Maybe. But that can only happen if there are incentives and benefits to all the parties that are relevant to the discussion.

So it can’t just be the real estate industry saying, “This doesn’t work,” because the labor and the public sector is not going to just say, “Fine,” and give them what they want.

How are your clients viewing the new administration with Mayor Zohran Mamdani?

A lot of our clients are very interested in seeing the direction that this new mayoral administration takes. They have really, with their appointments and what they have said, leaned into being pro-housing production.

I think they understand the need for more housing and the need for a collaboration between the public and the private sector. The private sector can’t do it all, and the public sector needs the private sector as well. All that has to happen with buy-in from communities, because if there is a lot of opposition, it makes it much more challenging.

The signs are pointing in the right direction that there’s a willingness to be more pro-housing.

Former Mayor Eric Adams left big shoes to fill after rezoning much of the city. What can Mamdani do to take it to the next level?

I think the best thing they can do is continue with the messaging that they’re going to be pro-housing, pro-development and work with Kathy Hochul’s administration, the private sector and unions.

There is still a desire from the private sector to invest in New York City. They can be successful here.

Mark Hallum can be reached at mhallum@commercialobserver.com.