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Council Member Brewer Questions DOT on Fee Structures and Indoor Rent Comparisons

New York City Council · Apr 23, 2025 · starts 2:09:52 · 2 min 49 sec

Council Member Gale Brewer questions DOT on the fee structure for outdoor dining, and DOT provides examples comparing outdoor fees to indoor commercial rent.

Gale A. Brewer

Or is there some way that you could limit the fees that people have to put in as a restaurant owner in order to put that structure up?

Gale A. Brewer

Because that was a pretty high number.

Margaret Forgioni

Okay, so what I'd like to do is um give some examples of the fees.

Margaret Forgioni

And first and foremost, I want to say that the fee outside is about 25% of what an indoor lease or rent would cost a restaurant.

Margaret Forgioni

And obviously, it should be much less because of weather and other factors, but it it is very reasonable where in some cases restaurants are able to make quite a bit of money using their outdoor dining.

Margaret Forgioni

Um, so I we have two examples.

Margaret Forgioni

If we have a minute, we'll show you.

Margaret Forgioni

Suppose it doesn't rain.

Margaret Forgioni

Correct.

Margaret Forgioni

So that's why it should be, of course, um, much lower, but at the same time, it's very, very valuable space for restaurants.

Margaret Forgioni

Some restaurants double their space by having outdoor dining, which is which is really quite tremendous.

Margaret Forgioni

So we have an example for you a Crown Heights restaurant on Franklin Avenue.

Margaret Forgioni

They have 104 square foot roadway setup, they have 12 seats, and basically they're paying the revocable consent is about $832 per year.

Margaret Forgioni

It comes out to about 29 cents per seat per day.

Margaret Forgioni

Okay, and then for reference to give you a sense of what type of restaurant this is, the average entree is about $18, the average drink is $12.

Margaret Forgioni

Then we have a Soho restaurant example.

Margaret Forgioni

So this is a large setup.

Margaret Forgioni

It's both sidewalk and roadway.

Margaret Forgioni

It has 105 seats.

Margaret Forgioni

They pay $23,454 per year, which is a dollar and fifty-three cents per seat per day.

Margaret Forgioni

But then again, for reference, um, every entree is over $40, and the average drink is over $20.

Margaret Forgioni

So I want to try to put it in perspective.

Margaret Forgioni

It's by a private entity.

Margaret Forgioni

There needs to be a fair charge for that space, and we think these are more than reasonable costs.

Gale A. Brewer

Okay.

Gale A. Brewer

My last question is of course on the upper west side, I think you're charging too much compared to other locations.

Gale A. Brewer

So I am gonna try to lower that to make it more comparable with other areas because not every restaurant is huge, not every restaurant is as big as some of the ones you just mentioned in Soho.

Gale A. Brewer

So that I think needs to be addressed.

Gale A. Brewer

I will I don't know that you could comment on it.

Gale A. Brewer

Thank you, uh Madam Chair.

Julie Menin

Thank you so much.

Julie Menin

And now Councilmember Narcis.

Mercedes Narcisse

Thank you, Chair.

Mercedes Narcisse

And uh one of my concerns was the fees, but you answer that.