> The standard penalty for a violation is $5,000, which is a fraction of the value of the bonus space developers receive from the agreements. For example, the owners of 325 Fifth Avenue have been assessed a total of $54,000 in penalties since 2015. By contrast, the bonus floor area that the developers gained could be worth approximately $80 million if used for residential space, based on 2022 sales prices provided by Jonathan J. Miller, a New York City real estate appraiser.
When the penalty is this much lower than the benefit, it's just the cost of doing business. I wonder if this same problem would happen if the fine was scaled to better reflect the increase in value.
When the penalty is this much lower than the benefit, it's just the cost of doing business. I wonder if this same problem would happen if the fine was scaled to better reflect the increase in value.