----------------- HES POSTING ----------------- 
I believe the trading of "air rights" for New York City real estate goes 
back to the creation of the city's original zoning plan in the early 20th 
century.  Buildings have an allowable FAR or "floor area ratio" which 
relates lot size to buildable floor area.  Subsequent revision of the code 
have superimposed various height restrictions, set backs at grade and at 
various heights, etc.  But the basic concept remains that each lot has a 
maximum buildable floor area.  To the extent one lot is willing to forego 
its rights to that area, it can trade the rights to another lot.  Churches, 
for example, may occupy valuable and desirable lots but have no need to 
build to maximum allowable floor area or height, and trade the "air rights" 
for a lump sum or a continuing income stream.  Or a marginally located lot 
may trade it "air rights" to a lot in a prime location and obtain a better 
return than building on-site simple because of the locational difference. 
 
Scott Cullen 
 
 
------------ FOOTER TO HES POSTING ------------ 
For information, send the message "info HES" to [log in to unmask]