City Council Speaker Christine Quinn says the plan also calls for a reduction in the number of new apartments, funds for affordable housing and arts education in local schools.
It doesn't include a new hospital to replace the shuttered St. Vincent's.
Last year, a bankruptcy court approved the sale of the hospital to Rudin Management. The developer will turn the historic medical center into a walk-in emergency facility.
Community activists told The New York Times they still hoped for a full-service hospital. They said otherwise the deal addressed their concerns.
The plan needs approval from the City Planning Commission and the Landmarks Preservation Commission.
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