EXCLUSIVE: Outgoing Mayor Adams pushes for final agreement to save Elizabeth Street Garden in Manhattan

Outgoing Mayor Eric Adams’ administration proposed what it described as a winning deal for ending the Elizabeth Street Garden saga — something it says will preserve the small patch of Nolita land while still providing housing for hundreds of New Yorkers, amNewYork learned on Monday.

First Deputy Mayor Randy Mastro wrote a letter on Dec. 26 to the three developers behind the planned affordable housing on the Elizabeth Street Garden site, stating that the city would offer them a significantly larger contract, provided they drop their lawsuit to control the historic land.

The proposal includes developing over 200 all-affordable units at 22 Suffolk St., a publicly owned, 15,000-square-foot vacant lot located nearby.

Looking ahead to the new administration, incoming Mayor Zohran Mamdani has stated he will advance the affordable housing project at the garden site once he takes office.

amNewYork contacted the developer Pennrose for the company’s thoughts on the deal, but is awaiting a response. Meanwhile, the city’s deal on the table, the winner of the battle between green space and developers, remains to be seen.

Mastro’s letter, which is addressed to Dylan Salmons of Pennrose, the lead firm involved in the lawsuit, said the administration has support for the deal from NYC Council Member Chris Marte, who represents the district.

“Based on discussions with the council member representing the district, the administration secured a written commitment to support the necessary rezoning and related land-use actions to facilitate the development of a housing project at this site,” Mastro wrote.

Two men enjoy lunch at Elizabeth Street Garden.Photo by Dean Moses

Sites at 100 Gold St. and 156-166 Bowery are included in the deal.

Simon Kostelanetz, a spokesperson for Marte, told amNewYork that Marte’s office is “grateful” to have reached a deal with mayor.

“We’re grateful to have reached a deal with the Adams administration that will deliver the most affordable housing built in Lower Manhattan in decades—a truly historic feat,” he said. “This agreement secures nearly ten times the amount of permanently affordable homes while protecting treasured open space. It’s a win for working families, seniors, and our climate-resilient future, and a model for how we can meet urgent housing goals without sacrificing the green spaces our neighborhoods rely on.”

Developers have until Dec. 31 to take the deal.

“We hope this group of developers accepts our offer, so together, we can deliver on the Adams administration’s promise to provide a win-win solution for the Elizabeth Street Garden, preserving cherished community green space while also building far more affordable housing than the 123 units originally contemplated at the garden site alone,” Mastro told amNewYork.

He added that the city granted the garden a 10-year license to operate and maintain the garden as a city park, with two five-year extensions “at the discretion of both parties.”

Per the ongoing lawsuit, which developers tabled until next year, the Adams administration wants to preserve the Elizabeth Street Garden as protected parkland.

The move is a change of position from Adams, whose Department of Housing Preservation and Development served the garden with an eviction notice on Oct. 2 last year, sparking community outcry, ongoing protests and even support for the space from celebrities such as Robert DeNiro.

But in early November, Adams’ commissioner of the Department of Citywide Administrative Services Louis Molina announced the city’s decision to designate the garden as government-owned parkland—something developers in the case oppose.

The prospect of tearing down the 34-year-old park pre-dates Adams. Neighbors have advocated for more than a decade to save the garden, which has served as a quiet retreat for New Yorkers who want to escape the hustle and bustle of city life.