New York City Council Approves Hudson Square Rezoning. Development is soon on the horizon for Hudson Square, the 18-block area sandwiched between Soho and Tribeca. Yesterday New York City Council approved the Hudson Square rezoning, which entails raising the allowable building height to pave the way for more residential and mixed-use development. The city was able to finagle more affordable housing and open space throughout the approval process. From the get-go, preservationists have feared that development will seep into the South Village and have pressed the city to landmark the entire district. City Council has worked out a deal with Landmarks Preservation Commission to vote on the northern section of South Village by the end of the year.